Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | Can-Fite BioPharma Ltd. |
Entity Central Index Key | 1,536,196 |
Trading Symbol | canf |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Is Entity a Well-known Seasoned Issuer | No |
Is Entity a Voluntary Filer | No |
Is Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 33,295,618 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,506 | $ 9,000 |
Other accounts receivables and prepaid expenses | 3,378 | |
Total current assets | 6,884 | |
NON-CURRENT ASSETS: | ||
Lease deposit | 5 | |
long-term investment | 917 | |
Property, plant and equipment, net | 46 | |
Total long-term assets | 968 | |
Total assets | 7,852 | |
CURRENT LIABILITIES: | ||
Trade payables | 427 | |
Deferred revenues | 374 | |
Other accounts payable | 1,001 | |
Total current liabilities | 1,802 | |
NON-CURRENT LIABILITIES: | ||
Warrants exercisable into shares | 2,030 | |
Deferred revenues | 959 | |
Total Long-term liabilities | 2,989 | |
CONTIGENT LIABILITIES AND COMMITMENTS | ||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | ||
Share capital | 2,401 | |
Share premium | 100,283 | |
Capital reserve from share-based payment transactions | 6,296 | |
Warrants exercisable into shares | ||
Treasury shares, at cost | ||
Accumulated other comprehensive loss | ||
Accumulated deficit | (105,919) | |
Total equity attributable to equity holders of the company | 3,061 | |
Non-controlling interests | ||
Total equity | 3,061 | 4,299 |
Total liabilities and equity | 7,852 | |
NIS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 12,154 | 31,203 |
Other accounts receivables and prepaid expenses | 11,711 | 7,664 |
Total current assets | 23,865 | 38,867 |
NON-CURRENT ASSETS: | ||
Lease deposit | 18 | 37 |
long-term investment | 3,179 | |
Property, plant and equipment, net | 160 | 205 |
Total long-term assets | 3,357 | 242 |
Total assets | 27,222 | 39,109 |
CURRENT LIABILITIES: | ||
Trade payables | 1,479 | 4,804 |
Deferred revenues | 1,299 | 1,237 |
Other accounts payable | 3,469 | 3,588 |
Total current liabilities | 6,247 | 9,629 |
NON-CURRENT LIABILITIES: | ||
Warrants exercisable into shares | 7,037 | 10,068 |
Deferred revenues | 3,324 | 4,510 |
Total Long-term liabilities | 10,361 | 14,578 |
CONTIGENT LIABILITIES AND COMMITMENTS | ||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | ||
Share capital | 8,324 | 7,039 |
Share premium | 347,684 | 332,873 |
Capital reserve from share-based payment transactions | 21,828 | 20,438 |
Warrants exercisable into shares | 8,983 | |
Treasury shares, at cost | (3,628) | |
Accumulated other comprehensive loss | (883) | |
Accumulated deficit | (367,222) | (349,953) |
Total equity attributable to equity holders of the company | 10,614 | 14,869 |
Non-controlling interests | 33 | |
Total equity | 10,614 | 14,902 |
Total liabilities and equity | $ 27,222 | $ 39,109 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Loss [Abstract] | |||
Revenues | $ 847 | ||
Research and development expenses | 5,285 | ||
General and administrative expenses | 2,956 | ||
Operating loss | 7,394 | ||
Other income | (534) | ||
Financial expenses | 1,102 | ||
Financial income | (2,999) | ||
Total Financial income, net | (1,897) | ||
Loss before taxes on income | 4,963 | ||
Taxes on income | 30 | ||
Net loss | 4,993 | ||
Other comprehensive loss: | |||
Adjustments arising from translating financial statements of foreign operations | 27 | ||
Remeasurement loss from defined benefit plans | |||
Total other comprehensive | 27 | ||
Total comprehensive loss | 5,020 | ||
Net loss Attributable to: | |||
Equity holders of the Company | 4,981 | ||
Non-controlling interests | 12 | ||
Net loss | 4,993 | ||
Total comprehensive loss attributable to: | |||
Equity holders of the Company | 5,015 | ||
Non-controlling interests | 5 | ||
Total comprehensive loss | $ 5,020 | ||
Net loss per share attributable to equity holders of the Company: | |||
Basic and diluted net loss per share | $ 0.15 | ||
NIS | |||
Consolidated Statements of Comprehensive Loss [Abstract] | |||
Revenues | $ 2,936 | $ 652 | $ 643 |
Research and development expenses | 18,322 | 23,380 | 15,052 |
General and administrative expenses | 10,249 | 10,483 | 10,633 |
Operating loss | 25,635 | 33,211 | 25,042 |
Other income | (1,853) | ||
Financial expenses | 3,822 | 685 | 2,203 |
Financial income | (10,397) | (6,999) | (7,492) |
Total Financial income, net | (6,575) | (6,314) | (5,289) |
Loss before taxes on income | 17,207 | 26,897 | 19,753 |
Taxes on income | 104 | 112 | 17 |
Net loss | 17,311 | 27,009 | 19,770 |
Other comprehensive loss: | |||
Adjustments arising from translating financial statements of foreign operations | 95 | 33 | 1 |
Remeasurement loss from defined benefit plans | 385 | ||
Total other comprehensive | 95 | 33 | 386 |
Total comprehensive loss | 17,406 | 27,042 | 20,156 |
Net loss Attributable to: | |||
Equity holders of the Company | 17,269 | 26,532 | 18,726 |
Non-controlling interests | 42 | 477 | 1,044 |
Net loss | 17,311 | 27,009 | 19,770 |
Total comprehensive loss attributable to: | |||
Equity holders of the Company | 17,388 | 26,559 | 19,112 |
Non-controlling interests | 18 | 483 | 1,044 |
Total comprehensive loss | $ 17,406 | $ 27,042 | $ 20,156 |
Net loss per share attributable to equity holders of the Company: | |||
Basic and diluted net loss per share | $ 0.53 | $ 0.96 | $ 0.81 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share capitalNIS | Share capital | Share premiumNIS | Share premium | Capital reserve from share-based payment transactionsNIS | Capital reserve from share-based payment transactions | Warrants exercisable into sharesNIS | Warrants exercisable into shares | Treasury sharesNIS | Treasury shares | Accumulated other comprehensive income (loss)NIS | Accumulated other comprehensive income (loss) | Accumulated deficitNIS | Accumulated deficit | TotalNIS | Total | Non-controlling interestsNIS | Non-controlling interests | NIS | Total |
Balance at Dec. 31, 2014 | $ 5,441 | $ 301,787 | $ 17,153 | $ 9,652 | $ (3,628) | $ (1,015) | $ (304,150) | $ 25,240 | $ 1,460 | $ 26,700 | ||||||||||
Net loss | (18,726) | (18,726) | (1,044) | (19,770) | ||||||||||||||||
Adjustments arising from translating financial statements of foreign operations | (1) | (1) | (1) | |||||||||||||||||
Total comprehensive loss | (386) | (18,726) | (19,112) | (1,044) | (20,156) | |||||||||||||||
Issuance of share capital and warrants, net of issue expenses | 1,589 | 30,417 | 1,781 | 33,787 | 33,787 | |||||||||||||||
Proceeds from sale of subsidiary in previously consolidated subsidiaries | ||||||||||||||||||||
Expiration of warrants exercisable into shares | 669 | (669) | ||||||||||||||||||
Share-based payments | 354 | 354 | 88 | 442 | ||||||||||||||||
Balance at Dec. 31, 2015 | 7,030 | 332,873 | 19,288 | 8,983 | (3,628) | (1,401) | (322,876) | 40,269 | 504 | 40,773 | ||||||||||
Net loss | (26,532) | (26,532) | (477) | (27,009) | ||||||||||||||||
Adjustments arising from translating financial statements of foreign operations | (27) | (27) | (6) | (33) | ||||||||||||||||
Total comprehensive loss | 518 | (27,077) | (26,559) | (483) | (27,042) | |||||||||||||||
Proceeds from sale of subsidiary in previously consolidated subsidiaries | ||||||||||||||||||||
Share-based payments | 9 | 1,150 | 1,159 | 12 | 1,171 | |||||||||||||||
Balance at Dec. 31, 2016 | 7,039 | 2,030 | 332,873 | 96,012 | 20,438 | 5,895 | 8,983 | 2,591 | (3,628) | (1,046) | (883) | (255) | (349,953) | (100,938) | 14,869 | $ 4,289 | 33 | $ 10 | 14,902 | $ 4,299 |
Net loss | (17,269) | (4,981) | (17,269) | (4,981) | (42) | (12) | (17,311) | (4,993) | ||||||||||||
Adjustments arising from translating financial statements of foreign operations | (78) | (22) | (78) | (22) | (17) | (5) | (95) | (27) | ||||||||||||
Total comprehensive loss | (78) | (22) | (17,269) | (4,981) | (17,347) | (5,003) | (59) | (17) | (17,406) | (5,020) | ||||||||||
Issuance of share capital and warrants, net of issue expenses | 1,250 | 361 | 8,688 | 2,506 | 712 | 205 | 10,650 | 3,072 | 10,650 | 3,072 | ||||||||||
Issuance of share capital | 35 | 10 | 304 | 87 | 339 | 97 | 339 | 97 | ||||||||||||
Proceeds from sale of subsidiary in previously consolidated subsidiaries | (3,164) | (913) | 3,628 | 1,046 | 961 | 277 | 1,425 | 410 | 26 | 7 | 1,449 | 417 | ||||||||
Expiration of warrants exercisable into shares | 8,983 | 2,591 | (8,983) | (2,591) | ||||||||||||||||
Share-based payments | 678 | 196 | 678 | 196 | 678 | 196 | ||||||||||||||
Balance at Dec. 31, 2017 | $ 8,324 | $ 2,401 | $ 347,684 | $ 100,283 | $ 21,828 | $ 6,296 | $ (367,222) | $ (105,919) | $ 10,614 | $ 3,061 | $ 10,614 | $ 3,061 |
Consolidated Statements of Cha5
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Consolidated Statements of Changes in Equity (Parenthetical) [Abstract] | ||
Net of issue expenses | $ 414 | |
NIS | ||
Consolidated Statements of Changes in Equity (Parenthetical) [Abstract] | ||
Net of issue expenses | $ 1,435 | $ 3,530 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (4,993) | ||
Adjustments to reconcile loss to net cash used: | |||
Depreciation of property, plant and equipment | 20 | ||
Share-based payment | 196 | ||
Issuance expenses related to warrants exercisable into shares | 326 | ||
Decrease in severance pay, net | |||
Changes in fair value of warrants liability exercisable into shares | (2,927) | ||
Changes in fair value of long-term investment | 5 | ||
Gain from sale of investment in previously consolidated subsidiaries (a) | (534) | ||
Exchange differences on balances of cash and cash equivalents | 814 | ||
Adjustments for reconcile profit loss | (2,100) | ||
Working capital adjustments: | |||
Decrease (increase) in accounts receivable, prepaid expenses and lease deposit | (1,162) | ||
Increase (decrease) in trade payable | (989) | ||
Increase (decrease) in deferred revenues | (324) | ||
Increase (decrease) in other accounts payable | 22 | ||
Adjustments for working capital | (2,453) | ||
Net cash used in operating activities | (9,546) | ||
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (7) | ||
Proceeds from sale of investments in previously consolidated subsidiaries (a) | (23) | ||
Net cash used in investing activities | (30) | ||
Cash flows from financing activities: | |||
Issuance of share capital and warrants, net of issuance expenses | 4,896 | ||
Net cash provided by financing activities | 4,896 | ||
Exchange differences on balances of cash and cash equivalents | (814) | ||
Increase (decrease) in cash and cash equivalents | (5,494) | ||
Cash and cash equivalents at the beginning of the year | 9,000 | ||
Cash and cash equivalents at the end of the year | 3,506 | $ 9,000 | |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for income taxes | 30 | ||
Cash received during the year for interest | 72 | ||
NIS | |||
Cash flows from operating activities: | |||
Net loss | (17,311) | (27,009) | $ (19,770) |
Adjustments to reconcile loss to net cash used: | |||
Depreciation of property, plant and equipment | 69 | 71 | 64 |
Share-based payment | 678 | 1,171 | 442 |
Issuance expenses related to warrants exercisable into shares | 1,131 | 2,122 | |
Decrease in severance pay, net | (630) | 21 | |
Changes in fair value of warrants liability exercisable into shares | (10,148) | (6,657) | (6,913) |
Changes in fair value of long-term investment | 17 | ||
Gain from sale of investment in previously consolidated subsidiaries (a) | (1,853) | ||
Exchange differences on balances of cash and cash equivalents | 2,821 | 443 | 73 |
Adjustments for reconcile profit loss | (7,285) | (5,602) | (4,191) |
Working capital adjustments: | |||
Decrease (increase) in accounts receivable, prepaid expenses and lease deposit | (4,028) | (5,255) | 996 |
Increase (decrease) in trade payable | (3,428) | 2,908 | 779 |
Increase (decrease) in deferred revenues | (1,124) | 1,249 | 4,498 |
Increase (decrease) in other accounts payable | 77 | (631) | (471) |
Adjustments for working capital | (8,503) | (1,729) | 5,802 |
Net cash used in operating activities | (33,099) | (34,340) | (18,159) |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (24) | (40) | (177) |
Proceeds from sale of property, plant and equipment | 10 | ||
Proceeds from sale of investments in previously consolidated subsidiaries (a) | (79) | ||
Net cash used in investing activities | (103) | (40) | (167) |
Cash flows from financing activities: | |||
Issuance of share capital and warrants, net of issuance expenses | 16,974 | 48,334 | |
Net cash provided by financing activities | 16,974 | 48,334 | |
Exchange differences on balances of cash and cash equivalents | (2,821) | (443) | (73) |
Increase (decrease) in cash and cash equivalents | (19,049) | (34,823) | 29,935 |
Cash and cash equivalents at the beginning of the year | 31,203 | 66,026 | 36,091 |
Cash and cash equivalents at the end of the year | 12,154 | 31,203 | 66,026 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for income taxes | 104 | 112 | 16 |
Cash received during the year for interest | $ 251 | $ 168 | $ 41 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
(a) Proceeds from sale of investments in previously consolidated subsidiaries: | ||
Working capital (excluding cash and cash equivalents) | $ (54) | |
Foreign transaltion fund | 277 | |
Non-controlling interests | 141 | |
Gain (loss) from sale of subsidiaries | 534 | |
Long term investments | (921) | |
Total subsidiaries' assets and liabilities | (23) | |
NIS | ||
(a) Proceeds from sale of investments in previously consolidated subsidiaries: | ||
Working capital (excluding cash and cash equivalents) | (186) | |
Foreign transaltion fund | 961 | |
Non-controlling interests | 490 | |
Gain (loss) from sale of subsidiaries | 1,853 | |
Long term investments | (3,197) | |
Total subsidiaries' assets and liabilities | $ (79) |
General
General | 12 Months Ended |
Dec. 31, 2017 | |
General | |
GENERAL | NOTE 1:- GENERAL a. Company description: Can-Fite Biopharma Ltd. (the "Company") was incorporated and started to operate in September 1994 as a private Israeli company. Can-Fite is a clinical-stage biopharmaceutical company focused on developing orally bioavailable small molecule therapeutic products for the treatment of autoimmune-inflammatory, oncological and sexual dysfunction The Company's ordinary shares have been publicly traded on the Tel-Aviv Stock Exchange since October 2005 under the symbol "CFBI" and the Company's American Depositary Shares ("ADSs") began public trading on the over the counter market in the U.S. in October 2012 and since November 2013 the Company's ADSs have been publicly traded on the NYSE American b. The Company owned 82% of a U.S. based subsidiary, Ophthalix, Inc. which developed the CF101 drug for treatment of ophthalmic indications under license from the Company. The license to develop this drug was transferred from the Company to Ophthalix, Inc. in the context of an ophthalmic activity spinoff transaction. Ophthalix, Inc. was traded in the over the counter market in the U.S. under the symbol “OPLI”. On May 21, 2017, OphthaliX and a wholly-owned private Israeli subsidiary of OphthaliX, Bufiduck Ltd. (the “Merger Sub”), and Wize Pharma Ltd. (“Wize”), an Israeli company formerly listed on the Tel Aviv Stock Exchange currently focused on the treatment of ophthalmic disorders, including dry eye syndrome, entered into an Agreement and Plan of Merger, or the Merger Agreement, providing for the merger of the Merger Sub with and into Wize, with Wize becoming a wholly-owned subsidiary of OphthaliX and the surviving corporation of the merger (the “Merger”). On November 16, 2017, the Merger was completed. As a result of the Merger, the Company’s ownership of OphthaliX, immediately post-Merger, became approximately 8% of the outstanding shares of common stock. In addition, immediately prior to the Merger, OphthaliX sold on an “as is” basis to the Company all the ordinary shares of Eyefite in exchange for the irrevocable cancellation and waiver of all indebtedness owed by OphthaliX and Eyefite to the Company, including approximately $5 million of deferred payments owed by OphthaliX and Eyefite to the Company and, as part of the purchase of Eyefite, the Company also assumed certain accrued milestone payments in the amount of $175 thousand under a license agreement previously entered into with the NIH. In addition, that certain exclusive license of Piclidenson granted to OphthaliX by the Company and a related services agreement was terminated. In connection with the Merger, OphthaliX was renamed Wize Pharma, Inc. As a result of the Merger, the Company recorded a capital gain of NIS 1,853 thousand. c. During the year ended December 31, 2017, the Company incurred net losses of NIS 17,311 thousand and it had negative cash flows from operating activities in the amount of NIS 33,099 thousand. Furthermore, the Company intends to continue to finance its operating activities by raising capital and seeking collaborations with multinational companies in the industry. There are no assurances that the Company will be successful in obtaining an adequate level of financing needed for its long-term research and development activities. If the Company will not have sufficient liquidity resources, the Company may not be able to continue the development of all of its products or may be required to delay part of its development programs. The Company's management and board of directors are of the opinion that its current financial resources will be sufficient to continue the development of the Company's products at least for twelve months from the balance sheet date. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Significant Accounting Policies | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Definitions: In these consolidated financial statements: The Company - Can-Fite Biopharma Ltd. The Group - The Company and its subsidiary (as defined below) Subsidiaries - Companies that are controlled by the Company (as defined in IAS 27 (2008)) and whose accounts are consolidated with those of the Company Wize Pharma, Inc. - Wize Pharma, Inc. (formerly OphthaliX Inc.) Eye-Fite - Eye-Fite Ltd (Can-Fite.’s wholly owned subsidiary) Related parties - As defined in IAS 24 NIS - New Israeli Shekel USD - U.S. dollar € - European Union Euro CAD - Canadian dollar ADS - American Depositary Share (“ADS”). Each ADS represents 2 ordinary shares of the Company The following accounting policies have been applied consistently in the financial statements for all periods presented, unless otherwise stated. b. Basis of presentation of the financial statements: These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The Company’s financial statements have been prepared on a cost basis, except for financial assets and liabilities (including warrants) which are presented at fair value through statement of comprehensive loss. The preparation of the financial statements requires management to make critical accounting estimates as well as exercise judgment in the process of adopting significant accounting policies. The matters which required the exercise of significant judgment and the use of estimates, which have a material effect on amounts recognized in the financial statements, are specified in Note 3. c. Consolidated financial statements: The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (i.e., subsidiaries). Control is achieved when the Company is exposed, or has the rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The effect of potential voting rights that are exercisable at the end of the reporting period is considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the Group. Significant intragroup balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. Non-controlling interests in subsidiaries represent the non-controlling shareholders’ share of the total comprehensive loss of the subsidiaries and their share of the net assets. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. Upon the disposal of a subsidiary resulting in loss of control, the Company: - derecognizes the subsidiary’s assets (including goodwill) and liabilities. - derecognizes the carrying amount of non-controlling interests. - derecognizes the adjustments arising from translating financial statements carried to equity. - recognizes the fair value of the consideration received. - recognizes the fair value of any remaining investment. - reclassifies the components previously recognized in other comprehensive income (loss) on the same basis as would be required if the subsidiary had directly disposed of the related assets or liabilities. - recognizes any resulting difference (surplus or deficit) as gain or loss. d. Functional currency, presentation currency and foreign currency: 1. Functional currency and presentation currency: The functional currency of the Company and presentation currency of the financial statements is the NIS. When a subsidiary’s functional currency differs from the Company’s functional currency, the subsidiary financial statements are translated into the Company’s functional currency so that they can be included in the consolidated financial statements. Assets and liabilities are translated at the closing rate at the end of each reporting period. Comprehensive loss items are translated at average exchange rates for all the relevant periods. All resulting translation differences are recognized as a separate component of other comprehensive loss in equity under “adjustments arising from translating financial statements”. 2. Convenience translation: For the convenience of the reader, the reported NIS amounts as of December 31, 2017 have been translated into U.S. dollars, at the representative rate of exchange on December 31, 2017 (U.S. $ 1 = NIS 3.467). The U.S. dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into U.S. dollars, unless otherwise indicated. The U.S. dollar amounts were rounded to whole numbers for convenience. 3. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at the end of each reporting period into the functional currency at the exchange rate at that date. Exchange rate differences are recognized in statement of comprehensive loss. Non-monetary assets and liabilities measured at cost in foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. 4. Index-linked monetary items: Monetary assets and liabilities linked to the changes in the Israeli Consumer Price Index (“Israeli CPI”) are adjusted at the relevant index at the end of each reporting period according to the terms of the agreement. Linkage differences arising from the adjustment, as above, are recognized in statement of comprehensive loss. e. Cash equivalents: Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the investment date. f. Account receivables and prepaid expenses: Prepaid expenses are composed mainly from active pharmaceutical ingredients and clinical trial drug-kits which are expensed based on the percentage of completion method of the related clinical trials. g. Property, plant and equipment: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and excluding day-to-day servicing expenses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: % Laboratory equipment and Leasehold improvements 10 Computers, office furniture and equipment 6 - 33 Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including extension option held by the Company and intended to be exercised) and the expected life of the improvement. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimates . h. Revenue recognition: The Company generates revenues from distribution agreements. Such revenues comprises of upfront license fees, milestone payments and potential royalty payments. The Company identified four components in the agreements: (i) performing the research and development services through regulatory approval; (ii) exclusive license to distribute the product; (iii) participation in joint steering committee; and, (iv) royalties resulting from future sales of the product. The Company recognizes revenue in accordance with IAS 18, “Revenue” pursuant to which each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable which is based on the Estimated Selling Price (“ESP”). Components (i) – (iii) were analyzed as one unit of accounting. Consequently, revenue from these components is recorded based on the term of the research and development services (which is the last deliverable in the arrangement). Contingent payments related to milestones will be recognized immediately upon satisfaction of the milestone and contingent payments related to royalties will be recognized in the period that the related sales have occurred. Revenues from royalties will be recognized as they accrue in accordance with the terms of the relevant agreement. i. Research and development expenditures: Research expenditures are recognized in the statement of comprehensive loss when incurred. j. Impairment of non-financial assets: The Company evaluates the need to record an impairment of the carrying amount of non financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of property, plant and equipment exceeds their recoverable amount, the property, plant and equipment are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. As of December 31, 2017 and 2016, no impairment indicators have been identified. k. Financial instruments: 1. Financial assets: Financial assets within the scope of IAS 39 are initially recognized at fair value plus directly attributable transaction costs, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. After initial recognition, the accounting treatment of financial assets is based on their classification as follows: Financial assets at fair value through profit or loss: This category includes financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. 2. Financial liabilities: Financial liabilities are initially recognized at fair value. After initial recognition, the accounting treatment of financial liabilities is based on their classification as follows: Financial liabilities at fair value through statement of comprehensive loss Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through statement of comprehensive loss. A liability may be designated upon initial recognition at fair value through profit or loss, subject to the provisions of IAS 39. 3. Issue of a unit of securities: The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the components of the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities and compound instruments that are presented at amortized cost. The consideration allocated to the equity instruments is determined as the residual value. The issuance costs are allocated to each component based on the amounts allocated to each component in the unit. 4. Derecognition of financial instruments: a) Financial assets: A financial asset is derecognized when the contractual rights to the cash flows from the financial asset expire or the Company has transferred its contractual rights to receive cash flows from the financial asset or assumes an obligation to pay the cash flows in full without material delay to a third party and has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. If the Company transfers its rights to receive cash flows from an asset and neither transfers nor retains substantially all the risks and rewards of the asset nor transfers control of the asset, a new asset is recognized to the extent of the Company’s continuing involvement in the asset. When continuing involvement takes the form of guaranteeing the transferred asset, the extent of the continuing involvement is the lower of the original carrying amount of the asset and the maximum amount of consideration received that the Company could be required to repay. b) Financial liabilities: A financial liability is derecognized when it is extinguished, that is when the obligation is discharged, realized, cancelled or expires. A financial liability is extinguished when the debtor (i.e., the Group) discharges the liability by paying in cash, other financial assets, goods or services or shares, or is legally released from the liability. When an existing financial liability is exchanged with another liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is accounted for as an extinguishment of the original liability and the recognition of a new liability. The difference between the carrying amount of the above liabilities is recognized in statement of comprehensive loss. If the exchange or modification is not substantial, it is accounted for as a change in the terms of the original liability and no gain or loss is recognized on the exchange. l. Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement: m. Treasury shares: Company shares held by OphthaliX are recognized at cost, and as a deduction from equity. Any gain or loss arising from a purchase, sale, issuance or cancellation of treasury shares is recognized directly in equity. As of December 31, 2017, the Company has no treasury shares. Please refer to note 1.b. n . Provisions : A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the Group expects part or all of the expense to be reimbursed to the Company, such as in an insurance contract, the reimbursement is recognized as a separate asset only when it is virtually certain that it will be received by the Company. The expense is recognized in the income statement net of the reimbursed amount. Legal claims: A provision for claims is recognized when the Group has a present legal or constructive obligation as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required by the Group to settle the obligation and a reliable estimate can be made of the amount of the obligation. No provisions pursuant to IAS 37 have been identified. o . Employee benefit liabilities : The Company’s liability for severance pay is pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), pursuant to which all the Company’s employees are included under Section 14, and are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in the employee’s name with insurance companies. Under Israeli employment law, payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. The fund is made available to the employee at the time the employer-employee relationship is terminated, regardless of cause of termination. The severance pay liabilities and deposits under Section 14 are not reflected in the consolidated balance sheets as the severance pay risks have been irrevocably transferred to the severance funds. p . Share-based payment transactions : The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment transactions. The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value is determined using the binomial option pricing model. As for other service providers, the cost of the transactions is measured at the fair value of the goods or services received as consideration for equity instruments. In cases where the fair value of the goods or services received as consideration of equity instruments cannot be measured, they are measured by reference to the fair value of the equity instruments granted using binomial option pricing model. The cost of equity-settled transactions is recognized in statement of comprehensive loss, together with a corresponding increase in equity, during the period which the performance and/or service conditions are to be satisfied, ending on the date on which the relevant employees become fully entitled to the award (the “Vesting Period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting period until the vesting date reflects the extent to which the Vesting Period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. If the Company modifies the conditions on which equity-instruments were granted, an additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee/other service provider at the modification date. q . Taxes on income: As it is not likely that taxable income will be generated in the foreseeable future, deferred tax assets due to accumulated losses is not recognized in the Group’s financial statements. r . Loss per share : Losses per share are calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of ordinary shares outstanding during the period. Potential ordinary shares (warrants and unlisted options) are only included in the computation of diluted loss per share when their conversion increases loss per share from continuing operations. Potential ordinary shares that are converted during the period are included in diluted loss per share only until the conversion date and from that date in basic loss per share. |
Significant Accounting Judgment
Significant Accounting Judgments, Estimates and Assupmtions Used in the Preparation of the Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Judgments Estimates And Assupmtions Used In Preparation Of Financial Statements | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS | NOTE 3:- SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS In the process of applying the significant accounting policies, the Group has made the following judgments which have the most significant effect on the amounts recognized in the financial statements: - Estimates and assumptions: The preparation of the financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities and expenses. Changes in accounting estimates are reported in the period of the changes in estimates. The key assumptions made in the financial statements concerning uncertainties at the end of the reporting period and the critical estimates computed by the Group that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. - Determining the fair value of share-based payment transactions: The fair value of share-based payment transactions is determined using an acceptable option-pricing model. The model includes data as to the share price and exercise price, and assumptions regarding expected volatility, expected life, expected dividend and risk-free interest rate. - Legal claims: In estimating the likelihood of outcome of legal claims filed against the Company and its subsidiaries, the companies rely on the opinion of their legal counsel. These estimates are based on the legal counsel’s best professional judgment, taking into account the stage of proceedings and legal precedents in respect of the different issues. Since the outcome of the claims will be determined in courts, the results could differ from these estimates. - Deferred tax assets: Deferred tax assets are recognized for unused carryforward tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the timing and level of future taxable profits, its source and the tax planning strategy. |
Disclusure of New IFRS in the P
Disclusure of New IFRS in the Period | 12 Months Ended |
Dec. 31, 2017 | |
Disclusure Of New Ifrs In Period | |
DISCLOSURE OF NEW IFRS IN THE PERIOD | NOTE 4:- DISCLOSURE OF NEW IFRS IN THE PERIOD a. IFRS 15 – Revenues from contracts with customers: The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. IFRS 15 is to be applied retrospectively for annual periods beginning on or after January 1, 2018. IFRS 15 allows an entity to choose to apply a modified retrospective approach. During 2017, the Company performed an assessment of IFRS 15 impact as described below. The Company is in the business developing orally bioavailable small molecule therapeutic products. The Company received certain milestone and advances from commercialization, distribution and license agreements with strategic partners. The Company performed the following preliminary assessment of IFRS 15: In implementation of IFRS 15, the Company is considering the following: (1) Variable consideration: Some contracts with customers provide a right of return, trade discounts or volume rebates. Currently, the Company recognizes revenue from achieving IFRS 15 requires that the variable consideration be estimated conservatively to prevent over-recognition of revenue. The Company continues to assess individual contracts to determine the estimated variable consideration and related constraint. There is no impact of IFRS 15 on the financial statements. (2) Upfront and milestone payments: Since the Company’s agreements with strategic partners include upfront and milestone payments that contains a performance obligation that is satisfied over time. Currently, the Company defers the upfront payments and recognizes revenue over time by reference to the stage of completion. Under IFRS 15, the Company would continue to recognize revenue for upfront payments over time rather than at a point of time. Upon adoption, the financing component will result in interest expenses which will be included in the Company’s consolidated statement of operations to reflect the financial portion cost of the long-term deferred revenue that is related to such services. The Company identified the existence of a significant financing component resulting from an upfront payment. As of January 1, 2018, an amount of NIS 1,378 thousand will be recognized as an increase of the deferred revenue against an increase of accumulated deficit and through 2018 will be recognized as revenue in the financial statements. (3) Presentation and disclosure requirements: IFRS 15 provides presentation and disclosure requirements, which are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and may significantly expand the disclosures required in Company’s financial statements. Many of the disclosure requirements in IFRS 15 are completely new. In 2017 the Company updated the internal controls, policies and procedures necessary to collect and disclose the required information. b. IFRS 9 - Financial Instruments: In July 2014, the IASB completed the final element of its comprehensive response to the financial crisis by issuing IFRS 9 Financial Instruments. The package of improvements introduced by IFRS 9 includes a logical model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially-reformed approach to hedge accounting. Certain securities that are currently measured at Fair Value through profit and lost will be measured at Fair Value through other comprehensive income (loss) due to implementation of IFRS 9. In addition, the Company will measure expected credit loss of the securities that will be measured at fair value through other comprehensive income (loss). IFRS 9 is to be applied for annual periods beginning on January 1, 2018. The Company does not expect to have any material impact from the adoption of IFRS 9 on the financial statements. c. IFRS 16 Leases: In January 2016, the IASB issued IFRS 16, Leases. IFRS 16, that replaces IAS 17, Leases, will have insignificant changes for the lessors. For lessees, the accounting will change significantly, as all leases (except short term leases and small asset leases) will be recognized on balance sheet. Initially, the lease liability and the right-of-use asset is measured at the present value of future lease payments (defined as economically unavoidable payments). The right-of-use asset is subsequently depreciated in a similar way to other assets such as tangible assets, i.e. typically in a straight-line over the lease term. The new Standard is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted provided that IFRS 15, “Revenue from Contracts with Customers”, is applied concurrently. The Company is evaluating the possible impact of IFRS 16 but is presently unable to assess its effect, on the financial statements. |
Accounts Receivable and Prepaid
Accounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable And Prepaid Expenses | |
ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 5:- ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2017 2016 NIS in thousands Government authorities 227 84 Prepaid expenses and others 11,484 7,580 11,711 7,664 |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Investment | |
Long-Term Investment | NOTE 6:- LONG-TERM INVESTMENT The Company holds 8,563,254 shares of Wize Pharma Inc. (formally known as OphthaliX) as of December 31, 2017 which as of such date represents 8.2% percent of Wize Pharma Inc's outstanding shares. The shares are classified as financial asset as designated at fair value through profit or loss. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment Net | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7:- PROPERTY, PLANT AND EQUIPMENT, NET Balance as of December 31, 2017: Laboratory equipment Computers, office furniture and equipment Leasehold improvements Total NIS in thousands Cost: Balance at January 1, 2017 977 1,196 646 2,819 Purchases during the year 24 - - 24 Balance at December 31, 2017 1,001 1,196 646 2,843 Accumulated depreciation: Balance at January 1, 2017 880 1,095 639 2,614 Depreciation during the year 45 22 2 69 Balance at December 31, 2017 925 1,117 641 2,683 Depreciated cost at December 31, 2017 76 79 5 160 Balance as of December 31, 2016: Laboratory equipment Computers, office furniture and equipment Leasehold improvements Total NIS in thousands Cost: Balance at January 1, 2016 974 1,162 646 2,782 Purchases during the year 3 37 - 40 Sale of fixed assets - (3 ) - (3 ) Balance at December 31, 2016 977 1,196 646 2,819 Accumulated depreciation: Balance at January 1, 2016 867 1,042 637 2,546 Depreciation during the year 13 56 2 71 Sale of fixed assets - (3 ) - (3 ) Balance at December 31, 2016 880 1,095 639 2,614 Depreciated cost at December 31, 2016 97 101 7 205 |
Other Accounts Payable
Other Accounts Payable | 12 Months Ended |
Dec. 31, 2017 | |
Other Accounts Payable | |
OTHER ACCOUNTS PAYABLE | NOTE 8:- OTHER ACCOUNTS PAYABLE December 31, 2017 2016 NIS in thousands Employees and payroll accruals 780 401 Accrued expenses 2,689 3,187 3,469 3,588 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
FINANCIAL INSTRUMENTS | NOTE 9:- FINANCIAL INSTRUMENTS a. Financial assets: December 31, 2017 2016 NIS in thousands Financial assets at fair value through profit or loss: long-term investment 3,179 - b. Financial liabilities, interest-bearing loans and borrowings: December 31, 2017 2016 NIS in thousands Financial liabilities at fair value through profit or loss: Trade payable 1,479 4,804 Other account payable 3,469 3,588 Deferred revenues 4,623 5,747 Warrants exercisable into shares 7,037 10,068 13,202 24,207 c. Financial risks factors: The Group’s activities expose it to foreign exchange risk. The Group’s comprehensive risk management plan focuses on activities that reduce to a minimum any possible adverse effects on the Group’s financial performance. The Company’s management identifies and manages financial risks. d . Foreign exchange risk: The Group is exposed to foreign exchange risk resulting from the exposure to different currencies, mainly the U.S. dollar. Foreign exchange risk arises on recognized assets and liabilities that are denominated in a foreign currency other than the functional currency. The Group acts to reduce the foreign exchange risk by managing an adequate part of the available liquid sources in or linked to the dollar. e . Fair value: The carrying amount of cash and cash equivalents, Short-term investments ,trade payables and other accounts payable approximate their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 - Valuations based on unadjusted quoted prices for identical assets and liabilities in active markets. Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on unobservable inputs reflecting assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company’s warrants exercisable into shares liability and the long term investment are classified as Level 3 in the fair value hierarchy, and measured at fair value on a recurring basis. Fair value measurements using significant unobservable inputs (Level 3): NIS in thousands Balance at December 31, 2015 16,725 Changes in values of warrants exercisable into shares liability (6,657 ) Balance at December 31, 2016 10,068 Fair value of warrants at issuance date 7,117 Purchase of long term investment (3,179 ) Changes in values of warrants exercisable into shares liability (10,148 ) Balance at December 31, 2017 3,858 The fair value of warrants granted was valued by using the Black-Scholes call option pricing model. Fair values were estimated using the following assumptions for the warrants call option (range of annualized percentages): December 31, 2017 2016 Dividend yield 0 0 Expected volatility 48.92%-98.06% 59.03%-91.41% Risk-free interest 1.46%-2.16% 0.9%-1.77% Expected life 0.19-4.55 1.19-4.28 f. Changes in liabilities arising from financing activities: NIS in thousands 1 January 2017 Cash flows Foreign exchange movement Changes in fair values December 31, Warrants exercisable into shares 10,068 7,117 (1,631 ) (8,517 ) 7,037 Total liabilities from financing activities 10,068 7,117 (1,631 ) (8,517 ) 7,037 g. Sensitivity tests relating to changes in market factors: December 31, 2017 2016 NIS in thousands Sensitivity test to changes in the U.S. dollar exchange rate: Gain (loss) from the change on financial instruments: Increase of 10% in exchange rate 437 1,427 Decrease of 10% in exchange rate (437 ) (1,427 ) Sensitivity test to changes in the market price of listed securities: Gain (loss) from the change: Increase of 10% in market price (1,020 ) (1,539 ) Decrease of 10% in market price 981 1,472 *) According to binomial model a 10% increase in the market price of listed securities will increase the price of warrants exercisable into shares by approximately 15% and a 10% decrease in the market price of listed securities will decrease the price of warrants exercisable into shares by approximately 15%. Sensitivity tests and the main work assumptions: The selected changes in the relevant risk variables were determined based on management’s estimate as to reasonable possible changes in these risk variables. The Group has performed sensitivity tests of principal market risk factors that are liable to affect its reported operating results or financial position. The sensitivity tests present the statement of comprehensive loss in respect of each financial instrument for the relevant risk variable chosen for that instrument as of each reporting date. The test of risk factors was determined based on the materiality of the exposure of the operating results or financial condition of each risk with reference to the functional currency and assuming that all the other variables are constant. Based on the Group’s policy, the Group generally mitigates the currency risk arising from recognized assets and recognized liabilities denominated in foreign currency other than the functional currency by maintaining part of the available liquid sources in deposits in foreign currency. Accordingly, the main currency exposures presented in the sensitivity tables are for those deposits. |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Contingent Liabilities And Commitments | |
CONTINGENT LIABILITIES AND COMMITMENTS | NOTE 10:- CONTINGENT LIABILITIES AND COMMITMENTS a. Liabilities to pay royalties: 1. According to the license agreement that the Company entered into with the NIH on January 29, 2003, the Company was committed to pay royalties until the expiration of the last patent licensed under the license agreement. The last patent under this agreement expired on June 29, 2015, and therefore except with respect to any amounts already accrued on the Company’s balance sheet, no future payments or royalties will be due. Following the Merger the Company accrued NIS 867 thousand (approximately $250 thousand) in other accounts payable with respect to the NIH. 2. According to the patent license agreement that the Company entered into with Leiden University in the Netherlands on November 2, 2009, which is affiliated with the NIH, the Company was granted an exclusive license for the use of the patents of several compounds, including CF602 in certain territories. The Company is committed to pay royalties as follows: a) A one-time concession commission of € 25 thousand b) Annual royalties of € 10 thousand c) 2%-3% of net sales (as defined in the agreement) received by the Company; d) Royalties in a total amount of up to € 850 based thousand thousand thousand thousand thousand e) If the agreement is sublicensed to another company, the Company will provide Leiden University royalties at a rate of 10%. A merger, consolidation or any other change in ownership will not be viewed as an assignment of the agreement as discussed in this paragraph. As of December 31 2017, no accrual is recorded with respect to Leiden University. b. Commitments and license agreements: 1. In March 2015, the Company signed a distribution agreement with Cipher. As part of the distribution agreement, Cipher will distribute Can-Fite’s lead drug candidate, Piclidenoson for the treatment of psoriasis and rheumatoid arthritis in the Canadian market upon receipt of regulatory approvals. Under the terms of the agreement, Cipher made an upfront payment of NIS 5,141 thousand thousand thousand The agreement further provides that the Company will deliver finished product to Cipher and that Cipher will reimburse the Company for the cost of manufacturing. Furthermore, under the distribution agreement, the Company shall be responsible for conducting product development activities including management of the clinical studies required in order to secure regulatory approvals, and shall use commercially reasonable efforts in conducting such activities. In addition the Company agreed obliged to form a joint steering committee with Cipher which will oversee the progress of the clinical studies. The Company identified four components in the agreement: (i) performing the research and development services through regulatory approval; (ii) an exclusive license to distribute the product in Canada; (iii) participation in joint steering committee; and, (iv) royalties resulting from future sales of the product. Components (i) – (iii) were analyzed as one unit of accounting. Consequently, revenue from these components is recorded based on the term of the research and development services (which is the last deliverable in the arrangement). The Company estimates these services will be spread over a period of 24 quarters. Component (iv) was not accounted as part of the research and development services and will be recognized entirely upon the Company reaching the sales stage. The useful life, depreciation method and residual value of a liability are reviewed at least each year-end. 2. In October 2016, the Company signed a distribution agreement with Chong Kun Dang Pharmaceuticals Corp. (“CKD”) for future sales in South Korea. As part of the distribution agreement, CKD will distribute Namodenoson Under the terms of the agreement, CKD made an upfront payment of NIS 1,901 thousand ($500 thousand) to the Company in December 2016 and in August 2017, the Company received a second milestone payment in the amount of $500 thousand from CKD, which has licensed the exclusive right to distribute Namodenoson for the treatment of liver cancer in Korea upon receipt of regulatory approvals. In addition, the agreement provides that additional payments of up to $ 2,500 thousand will be received by the Company upon the achievement of certain milestones plus royalty payments of 23% of net sales of Namodenoson (iii) participation in a joint steering committee; and, (iv) royalties resulting from future sales of the product. Components (i) – (iii) were analyzed as one unit of accounting. Consequently, revenue from these components is recorded based on the term of the research and development services (which is the last deliverable in the arrangement). The useful life, depreciation method and residual value of a liability are reviewed at least each year-end. The Company estimates these services will spread over a period of 24 quarters. Component (iv) was not accounted as part of the research and development services and will be recognized entirely upon the Company reaching sales stage. 3. On December 22, 2008, the Company signed an agreement regarding the provision of a license for Piclidenoson with a South Korean pharmaceutical company, Kwang Dong Pharmaceutical Co. Ltd. (the “KD”). According to the license agreement, the Company granted the KD a license to use, develop and market its Piclidenoson for treating only rheumatoid arthritis only in the Republic of Korea. As of December 31, 2017, the Company estimates that such contingent payments are remote. 4. Lease commitments: The Company lease motor vehicles through operating leases. The lease is for a period ending September 2019. Future minimum lease commitments under non-cancelable operating leases as of December 31, 2017 are as follows: NIS in thousands 2018 99 2019 31 130 Lease expenses for the years ended December 31, 2016 and 2017 were approximately NIS 195 thousand and NIS 222 thousand, respectively. c. Class action: On June 29, 2015 the Company received a lawsuit requesting recognition of the lawsuit as a class action, naming the Company, its Chief Executive Officer and its directors as defendants. The lawsuit was filed with the District Court of Tel-Aviv. The lawsuit alleged, among other things, that the Company misled the public with regard to disclosures concerning the efficacy of the Company’s drug candidate, Piclidenoson. The claimant alleged that he suffered personal damages of over NIS 73 thousand, while also claiming that the shareholders of the Company suffered damages of approximately NIS 125 million. On July 18, 2017, the District Court of Tel-Aviv issued a ruling in which it denied the request to recognize the lawsuit as a class action and awarded the Company an amount of NIS 50 thousand to pay the Company’s expenses in relation to such lawsuit. On October 26, 2017, the claimant filed a petition with the Supreme Court appealing the District Court decision. On January 28, 2018, the Supreme Court issued a notice of procedures to be complied with by the relevant parties leading up to a formal hearing scheduled for December 5, 2018. The Company believes that according to the legal advisors opinion the ruling of the District Court is not likely to be overturned. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity | |
EQUITY | NOTE 11:- EQUITY a. Composition of share capital: December 31, 2017 December 31, 2016 Authorized Issued and outstanding Authorized Issued and outstanding Number of Shares Ordinary shares of NIS 0.25 par value each 80,000,000 33,295,618 80,000,000 28,156,728 b. On December 3, 2015, a special general meeting of shareholders of the Company approved, in accordance with the majority required, a proposal to increase the Company’s authorized share capital by NIS 10,000,000 such that following the increase, the authorized share capital shall equal NIS 20,000,000 divided into 80,000,000 ordinary shares, par value NIS 0.25 each, and to amend the Company’s articles of association accordingly. c. Issued and outstanding capital: Number of shares NIS par value Balance at December 31, 2015 28,119,728 7,029,932 Issuance of share capital 37,000 9,250 Balance at December 31, 2016 28,156,728 7,039,182 Issuance of share capital 5,138,890 1,284,722 Balance at December 31, 2017 33,295,618 8,323,904 All ordinary shares have equal rights for all intent and purposes and each ordinary share confers its holder: 1. The right to be invited and participate in all the Company’s general meetings, both annual and regular, and the right to one vote per ordinary share owned in all votes and in all Company’s general meeting participated. 2. The right to receive dividends if and when declared and the right to receive bonus shares if and when distributed. 3. The right to participate in the distribution of the Company’s assets upon liquidation. d . Issue of shares and warrants and changes in equity: 1. In September 2015, the Company completed a registered direct offering pursuant to which it sold an aggregate 2,068,966 ADSs representing 4,137,932 ordinary shares. In addition, the Company issued unregistered warrants to purchase 1,034,483 ADSs representing 2,068,966 ordinary shares. The offering (the “September 2015 Financing”) resulted in gross proceeds of NIS 34,767 thousand. For further information regarding the warrants, please refer to Note 11.f.3. In October 2015, the Company completed a registered direct offering pursuant to which it sold an aggregate 1,109,196 ADSs representing 2,218,392 ordinary shares. In addition, the Company issued unregistered warrants to purchase 443,678 ADSs representing 887,356 ordinary shares. The offering (the “October 2015 Financing”) resulted in gross proceeds of NIS 18,653 thousand. For further information regarding the warrants, please refer to Note 11.f.3. As part of the September 2015 Financing, the Company also issued placement agent warrants to purchase 103,448 ADSs representing 206,897 ordinary shares exercisable at $ 5.25 per ADS (equivalent to $ 2.625 per ordinary share), subject to certain adjustments, for a period of five years. In addition, as part of the October 2015 Financing, the Company also issued placement agent warrants to purchase 55,460 ADSs representing 110,920 ordinary shares exercisable at $ 5.25 per ADS (equivalent to $ 2.625 per ordinary share), subject to certain adjustments, for a period of five years. The investor warrants and The cash issuance costs in relation to the September 2015 Financing and October 31, 2015 Financing were NIS 3,060 thousand and NIS 2,028 thousand, respectively. In relation to the September 2015 Financing and October 2015 Financing, the Company first allocated the proceeds to the warrants, that due to the dollar exercise price terms and in accordance with IAS 39 is being considered a freestanding liability instrument that is measured at fair value at each reporting date, based on its fair value, with changes in the fair values being recognized in the Company’s statement of comprehensive loss as financial income or expense. The remaining proceeds were allocated to the shares and were recorded to equity. The issuance costs were allocated between the warrants and the shares in proportion to the allocation of the proceeds. The portions of the issuance costs that were allocated to the warrants and to the ordinary share were recorded as financial expense in the Company’s statement of comprehensive loss and to the additional paid in capital in the Company’s balance sheet, respectively. 2. In January 2017, the Company completed a registered direct offering investor warrants and The issuance costs in relation to the January 2017 Financing was NIS 2,299. In relation to the January 2017 Financing, the Company first allocated the proceeds to the warrants, that due to the dollar exercise price terms and in accordance with IAS 39 is being considered a freestanding liability instrument that is measured at fair value at each reporting date, based on its fair value, with changes in the fair values being recognized in the Company’s statement of comprehensive loss as financial income or expense. The remaining proceeds were allocated to the shares and were recorded to equity. The issuance costs were allocated between the warrants and the shares in proportion to the allocation of the proceeds. The portions of the issuance costs that were allocated to the warrants and to the ordinary share were recorded as financial expense in the Company’s statement of comprehensive loss and to the additional paid in capital in the Company’s balance sheet, respectively. The fair value of the warrants issued to the investors in the January 2017 Financing at the commitment date was NIS 7,117 with changes in recorded as financial income in the Company’s statement of comprehensive loss. The fair value of the placement agents warrants issued in the January 2017 Financing at the grant date were NIS 712, and were considered as additional issuance costs. 3. In December 2017, the Company issued 69,445 ADSs representing 138,890 of its ordinary shares to one of its service providers for its services. e. Warrants classified as liability: 1. On March 31, 2014, 9,907,500 registered warrants (Series 7) that were exercisable into 396,300 ordinary shares of the Company were expired. Accordingly, the Company recorded an amount of NIS 119 thousand as financial income in its statement of comprehensive loss. 2. As mentioned in Note 11.e.1 and Note 11.e.2, the Company issued warrants as part of the March 2014 Financing and December 2014 Financing. The warrants issued in the March 2014 Financing may be exercised after 6 months from the date of issuance for a period of four years and have an exercise price of $ 6.43 per ADS (equivalent to $ 3.215 per ordinary share) (subject to certain adjustments). The warrants issued in the December 2014 Financing may be exercised for a period of five years following issuance and have an exercise price of $ 4.45 per ADS (equivalent to $ 2.225 per ordinary share) (subject to certain adjustments). The fair value of the warrants issued as part of the March 2014 Financing, as of December 31, 2015, 2016 and 2017 were NIS 2,163 thousand, NIS 126 thousand and NIS 0 thousands, respectively. The fair value of the warrants issued as part of the December 2014 Financing, as of December 31, 2015, 2016 and 2017 were NIS 5,446 thousand, NIS 3,597 thousand, and NIS 130 thousand, respectively. Changes in fair value of the warrants from commitment date to December 31, 2017 were recorded as financial income in the Company’s statement of comprehensive loss. 3. As mentioned in Note 11.e.3, the Company issued warrants as part of the September 2015 Financing and October 2015 Financing. These warrants may be exercised after 6 months from the date of issuance for a period of five and a half years and have an exercise price of $ 5.25 per ADS (equivalent to $ 2.625 per ordinary share) (subject to certain adjustments). The fair value of the warrants issued as part of the September 2015 Financing, as of December 31, 2015, 2016 and 2017 were NIS 6,370 thousand, NIS 4,430 thousand, and NIS 2,027 thousand, respectively. The fair value of the warrants issued as part of the October 2015 Financing, as of December 31, 2015, 2016 and 2017 were NIS 2,746 thousand, NIS 1,914 thousand, and NIS 873 thousand, respectively. Changes in fair value of the warrants from commitment date to December 31, 2017 were recorded as financial income in the Company’s statement of comprehensive loss. 4. As mentioned in Note 11.e.4 the Company issued warrants as part of the January 2017 Financing. The fair value of the warrants issued as part of the January 2017 Financing, as of commitment date and December 31, 2017 were NIS 7,117 thousand, and NIS 4,007 thousand, respectively. Changes in fair value of the warrants from commitment date to December 31, 2017 were recorded as financial income in the Company’s statement of comprehensive loss. g. Warrants classified as equity: The Company had 39,042,000 registered warrants (Series 10) that were exercisable into 1,561,680 ordinary shares of the Company for NIS 9.85 per share. The warrants were exercisable, according to the court approval, until October 31, 2017. The Company had 37,372,500 registered warrants (Series 11) that were exercisable into 1,494,900 ordinary shares of the Company for NIS 9.80 per share. The warrants were exercisable, according to the court approval, until October 31, 2017. The Company had 1,470,000 registered warrants (Series 12) that were exercisable into 1,470,000 ordinary shares of the Company for NIS 15.29 per share. The warrants were exercisable, according to the court approval, until October 31, 2017. As described at Note 12.e.3, in September and October 2015 the company issued warrants to purchase 2,275,863 and 998,276 of the Company’s ordinary shares, respectively. On October 31, 2017 the registered warrants (Series 10,11,12) expired. h. Stock options: On November 28, 2013, the board of directors approved the adoption of the 2013 Share Option Plan Upon the adoption of the 2013 ESOP the Company reserved for issuance 1,000,000 shares of ordinary shares |
Share-Based Payment Transaction
Share-Based Payment Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payment Transactions | |
SHARE-BASED PAYMENT TRANSACTIONS | NOTE 12:- SHARE-BASED PAYMENT TRANSACTIONS a. Expenses recognized in the financial statements: Year ended December 31, 2017 2016 2015 NIS in thousand Research and development expenses 502 495 207 General and administrative expenses 176 676 235 678 1,171 442 b. Share-based payment transactions granted by the Company: 1. On March 19, 2015, the Company’s board of directors approved a grant of unlisted options exercisable into 40,000 of the Company’s ordinary shares to three of its employees and one senior officer for an exercise price of NIS 8.118 per shares. The options vest on a quarterly basis for a period of 4 years from the grant date. 2. In October 2015, the Company granted an amount of 200,000 options to acquire up to 200,000 of the Company’s ordinary shares to one of its directors at an exercise price of NIS 3.573 per share. The options vest over a period of three years on a quarterly basis for 12 consecutive quarters from the date of the grant. The term of the options is 10 years. 3. In February 2016, the Company’s board of directors approved a grant of unlisted options exercisable into 160,000 of the Company’s ordinary shares to three of its employees and one senior officer for an exercise price of NIS 4.317 per shares. The options vest on quarterly basis for a period of 4 years from the grant date. 4. In May 2016, the Company’s board of directors approved a grant of 74,000 shares of the Company to a service provider. Pursuant to the agreement with the service provider, and as partial consideration, the Company issued 37,000 ordinary shares and agreed to issue an additional 37,000 ordinary shares within 180 days, provided that the agreement was not terminated. During 2016 the Company recorded an amount of NIS 322 for share based payment expenses relating to this transaction. 5. On May 26, 2016 the Company's board of directors approved a grant of 20,000 options exercisable into 20,000 ordinary shares of the Company to one of its advisers at an exercise price of 5.376 NIS per share. The options will vest on a quarterly basis for a period of 4 years from the grant date. 6. In March 2017, the Company’s board of directors approved a grant of unlisted options exercisable into 210,000 of the Company’s ordinary shares to three of its employees for an exercise price of NIS 3.662 per share. The options vest on a quarterly basis for a period of 48 months from the grant date. 7. In May 2017, the Company's board of directors approved a grant of unlisted options exercisable into 60,000 of the Company's ordinary shares to an advisor for an exercise price of NIS 3.393 per share. The options vest on a quarterly basis for a period of 48 months from the grant date. 8. In December 2017, the Company's board of directors approved a grant of unlisted options exercisable into 460,000 and 240,000 of the Company's ordinary shares to the Company's employees and directors, respectively, for an exercise price of NIS 2.513 and NIS 2.926 per share, respectively. The options vest on a quarterly basis for a period of 48 months from the grant date. c. Movement during the year: The following table lists the number of share options, their weighted average exercise prices and modification in option plans of employees, directors and consultants for the periods indicated: Shares subject to options outstanding 2017 2016 2015 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price NIS NIS NIS Outstanding at beginning of year 737,028 10.12 798,579 12.21 592,707 15.33 Grants 970,000 2.71 180,000 4.43 240,000 4.33 Forfeited/expired (216,605 ) 15.34 (241,551 ) 12.79 (34,128 ) 10.96 Outstanding at end of year 1,490,423 4.68 737,028 10.12 798,579 12.21 Exercisable at end of year 451,266 8.39 402,500 14.90 557,749 15.56 d. The weighted average remaining contractual life for the shares subject to options outstanding as of December 31, 2017, 2016 and 2015 was 8.38 years, 5.86 years and 4.67 years, respectively. e. The range of exercise prices for shares subject to options outstanding as of December 31, 2017, 2016 and 2015 was between NIS 2.513 and NIS 20.65. f. The fair value of the Company's share options granted for the years ended December 31, 2016 and 2017 was estimated using the binomial option pricing model using the following assumptions: December 31, Description 2017 2016 Risk-free interest rate 1.89%-2.31% 2.01%-2.02% Expected volatility 74.4%-77.64% 77.84%-78.22% Dividend yield 0 0 Contractual life 10 10 Early Exercise Multiple (Suboptimal Factor) 2.5 2.5 Exercise price 2.513-3.393 4.317-5.376 |
Research and Development Expens
Research and Development Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Research And Development Expenses | |
RESEARCH AND DEVELOPMENT EXPENSES | NOTE 13:- RESEARCH AND DEVELOPMENT EXPENSES Year ended December 31, 2017 2016 2015 NIS in thousands Clinical and preclinical trials 13,710 19,504 10,815 Salary and related expenses 3,150 2,546 2,575 Patents 830 759 842 Royalties 39 42 240 Laboratory materials 227 144 190 Rent 182 181 182 Depreciation 12 15 19 Others 172 189 189 18,322 23,380 15,052 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2017 | |
General And Administrative Expenses | |
GENERAL AND ADMINISTRATIVE EXPENSES | NOTE 14:- GENERAL AND ADMINISTRATIVE EXPENSES Year ended December 31, 2017 2016 2015 NIS in thousands Professional services 4,030 3,917 4,408 Investors and public relations 1,227 1,959 1,633 Salary and related expenses 2,163 1,590 1,669 Directors’ fee 706 805 773 Rent 123 123 123 Travel 403 753 814 Insurance 761 544 469 Stock exchange fees 231 222 222 Office and computer maintenance 293 260 250 Vehicle maintenance 50 55 49 Depreciation 58 56 45 Others 204 199 178 10,249 10,483 10,633 |
Finance (Income)
Finance (Income) | 12 Months Ended |
Dec. 31, 2017 | |
Finance Income | |
FINANCE (INCOME) | NOTE 15:- FINANCE (INCOME) Year ended December 31, 2017 2016 2015 NIS in thousands Finance expenses: Bank commissions 102 105 76 Issuance expenses related to warrants exercisable into shares 1,132 - 2,116 Net loss from exchange rate fluctuations 2,572 580 - Financial expenses from defined benefit plans - - 11 Other loss from long-term investment revaluation 16 - - 3,822 685 2,203 Finance income: Interest income on bank deposits (249 ) (342 ) (87 ) Net gain from exchange rate fluctuations - - (492 ) Net change in fair value warrants exercisable into shares (10,148 ) (6,657 ) (6,913 ) (10,397 ) (6,999 ) (7,492 ) |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Loss Per Share | |
LOSS PER SHARE | NOTE 16:- LOSS PER SHARE a. Details of the number of shares and loss used in the computation of loss per share: Year ended December 31, 2017 2016 2015 Weighted number of shares Loss Weighted number of shares Loss Weighted number of shares Loss In thousands NIS in thousands In thousands NIS in thousands In thousands NIS in thousands Number of shares and loss used in the computation of basic and diluted loss per share 32,525 17,311 26,693 26,532 22,953 18,726 b. To compute diluted loss per share for the year ended December 31, 2017, the total number of 1,921,743 shares subject to outstanding unlisted options have not been taken into account since they have anti-dilutive effect. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2017 | |
Taxes On Income | |
TAXES ON INCOME | NOTE 17:- TAXES ON INCOME a. Corporate tax rates: Israeli taxation: Corporate tax rate in Israel in 2017 was 24% and in 2016 - 25%. On January 4, 2016, the Israeli Parliament’s Plenum approved by a second and third reading the Bill for Amending the Income Tax Ordinance (No. 217) (Reduction of Corporate Tax Rate), 2015, which consists of the reduction of the corporate tax rate from 26.5% to 25%. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018. The Company estimates that the effect of the change in tax rates will have no impact on the financial statements. b. Final tax assessments: The Company received final tax assessments through 2013. The related company, Eye-Fite, tax assessment through 2012 is considered as final. c. Net operating carryforward losses for tax purposes and other temporary differences: As of December 31, 2017 the Company and Eye-Fite had carryforward losses amounting to approximately NIS 347,200 thousand and NIS 12,403 thousand. d. Deferred taxes: The Company did not recognize deferred tax assets for carryforward losses and other temporary differences because their utilization in the foreseeable future is not probable. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Transactions With Related Parties | |
TRANSACTIONS WITH RELATED PARTIES | NOTE 18:- TRANSACTIONS WITH RELATED PARTIES a. The related parties of the Company are associates, subsidiaries, directors and key management personnel of the Group, and a close member of the family of any of the persons mentioned above. b. The Chairman of the Company’s board of directors is a senior partner in the patent firm which represents the Company in intellectual property and commercial matters (the “Service Provider”). The Service Provider charges the Company for services it renders on an hourly basis. c. Composition of balances with related parties for the year ended December 31, 2017, and each of the three years then ended: Year ended December 31, 2017 2016 2015 NIS in thousands Management and consulting fees (including bonuses) (1) 1,817 1,238 1,128 Other expenses and share-based payment (1) 283 608 252 Patent expenses 830 759 805 Directors’ fee and share-based payment (2) 617 514 575 (1) Number of related parties 1 1 1 (2) Number of directors 5 5 5 d. Eye-Fite License agreement and Services Agreement: A license agreement was entered into between the Company and Eye-Fite (the “Eye-Fite License Agreement”) according to which the Company granted Eye-Fite a non-transferrable exclusive license for the use of the Company’s know-how solely in the field of ophthalmic diseases for research, development, commercialization and marketing throughout the world. In addition to the Eye-Fite License Agreement, the Company, OphthaliX and Eye-Fite entered into a services agreement (the “Services Agreement”) pursuant to which the Company provided management services with respect to all pre-clinical and clinical research studies, production and supply of the compounds related to the Eye-Fite License Agreement and payment for consultants that are listed in the agreement for their involvement in the clinical trials and in all the activities leading up to, and including, the commercialization of CF101 for ophthalmic indications. The Company granted Eye-Fite an exclusive license to use these inventions in the field of ophthalmic diseases around the world at no consideration. The Eye-Fite License and Service Agreement was terminated during 2017 in connection with the Merger, please refer to note 1.b. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19:- SUBSEQUENT EVENTS a. On January 8, 2018, the Company entered into a Distribution and Supply Agreement with Gebro Holding GmBH (“Gebro”), granting Gebro the exclusive right to distribute Piclidenoson in Spain, Switzerland, Liechtenstein and Austria for the treatment of psoriasis and rheumatoid arthritis. Under the Distribution and Supply Agreement, the Company is entitled to €1.5 million upon execution of the agreement plus milestone payments upon achieving certain clinical, launch and sales milestones, as follows: (i) €300 thousand upon initiation of the ACRobat Phase III clinical trial for the treatment of rheumatoid arthritis and €300 thousand upon the initiation of the COMFORT Phase III clinical trial for the treatment of psoriasis, (ii) between €750 thousand and €1,600 thousand following first delivery of commercial launch quantities of Piclidenson for either the treatment of rheumatoid arthritis or psoriasis, and (iii) between €300 thousand and up to €4,025 thousand upon meeting certain net sales. In addition, following regulatory approval, the Company shall be entitled to future royalties on net sales of Piclidenoson in the territories and payment for the manufacturing Piclidenoson. On January 25, 2018 the Company received a first payment of approximately $2,200 thousand from Gebro. b. On March 13, 2018, the Company completed a registered direct offering with certain institutional investors, pursuant to which it sold an aggregate 3,333,336 ADSs representing 6,666,672 of its ordinary shares and warrants to purchase 2,500,002 ADSs representing 5,000,004 of its ordinary shares for an aggregate purchase price of $5,000 thousand. The warrants may be exercised after 6 months from the date of issuance for a period of five and a half years and have an exercise price of $2.00 per ADS (subject to certain adjustments). The Company also issued placement agent warrants to purchase 166,667 ADSs representing 333,334 ordinary shares exercisable at $2.00 per ADS, subject to certain adjustments, for a period of five years. c. On March 9, 2018, 982,344 and 98,234 warrants as part of a March 2014 financing grant, expired. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Basis of presentation of the financial statements | b. Basis of presentation of the financial statements: These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The Company’s financial statements have been prepared on a cost basis, except for financial assets and liabilities (including warrants) which are presented at fair value through statement of comprehensive loss. The preparation of the financial statements requires management to make critical accounting estimates as well as exercise judgment in the process of adopting significant accounting policies. The matters which required the exercise of significant judgment and the use of estimates, which have a material effect on amounts recognized in the financial statements, are specified in Note 3. |
Consolidated financial statements | c. Consolidated financial statements: The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (i.e., subsidiaries). Control is achieved when the Company is exposed, or has the rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The effect of potential voting rights that are exercisable at the end of the reporting period is considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the Group. Significant intragroup balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. Non-controlling interests in subsidiaries represent the non-controlling shareholders' share of the total comprehensive loss of the subsidiaries and their share of the net assets. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. Upon the disposal of a subsidiary resulting in loss of control, the Company: - derecognizes the subsidiary's assets (including goodwill) and liabilities. - derecognizes the carrying amount of non-controlling interests. - derecognizes the adjustments arising from translating financial statements carried to equity. - recognizes the fair value of the consideration received. - recognizes the fair value of any remaining investment. - reclassifies the components previously recognized in other comprehensive income (loss) on the same basis as would be required if the subsidiary had directly disposed of the related assets or liabilities. - recognizes any resulting difference (surplus or deficit) as gain or loss. |
Functional currency, presentation currency and foreign currency | d. Functional currency, presentation currency and foreign currency: 1. Functional currency and presentation currency: The functional currency of the Company and presentation currency of the financial statements is the NIS. When a subsidiary’s functional currency differs from the Company’s functional currency, the subsidiary financial statements are translated into the Company’s functional currency so that they can be included in the consolidated financial statements. Assets and liabilities are translated at the closing rate at the end of each reporting period. Comprehensive loss items are translated at average exchange rates for all the relevant periods. All resulting translation differences are recognized as a separate component of other comprehensive loss in equity under “adjustments arising from translating financial statements”. 2. Convenience translation: For the convenience of the reader, the reported NIS amounts as of December 31, 2017 have been translated into U.S. dollars, at the representative rate of exchange on December 31, 2017 (U.S. $ 1 = NIS 3.467). The U.S. dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into U.S. dollars, unless otherwise indicated. The U.S. dollar amounts were rounded to whole numbers for convenience. 3. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at the end of each reporting period into the functional currency at the exchange rate at that date. Exchange rate differences are recognized in statement of comprehensive loss. Non-monetary assets and liabilities measured at cost in foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. 4. Index-linked monetary items: Monetary assets and liabilities linked to the changes in the Israeli Consumer Price Index (“Israeli CPI”) are adjusted at the relevant index at the end of each reporting period according to the terms of the agreement. Linkage differences arising from the adjustment, as above, are recognized in statement of comprehensive loss. |
Cash equivalents | e. Cash equivalents: Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the investment date. |
Account receivables and prepaid expenses | f. Account receivables and prepaid expenses: Prepaid expenses are composed mainly from active pharmaceutical ingredients and clinical trial drug-kits which are expensed based on the percentage of completion method of the related clinical trials. |
Property, plant and equipment | g. Property, plant and equipment: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and excluding day-to-day servicing expenses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: % Laboratory equipment and Leasehold improvements 10 Computers, office furniture and equipment 6 - 33 Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including extension option held by the Company and intended to be exercised) and the expected life of the improvement. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimates . |
Revenue recognition | h. Revenue recognition: The Company generates revenues from distribution agreements. Such revenues comprises of upfront license fees, milestone payments and potential royalty payments. The Company identified four components in the agreements: (i) performing the research and development services through regulatory approval; (ii) exclusive license to distribute the product; (iii) participation in joint steering committee; and, (iv) royalties resulting from future sales of the product. The Company recognizes revenue in accordance with IAS 18, “Revenue” pursuant to which each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable which is based on the Estimated Selling Price (“ESP”). Components (i) – (iii) were analyzed as one unit of accounting. Consequently, revenue from these components is recorded based on the term of the research and development services (which is the last deliverable in the arrangement). Contingent payments related to milestones will be recognized immediately upon satisfaction of the milestone and contingent payments related to royalties will be recognized in the period that the related sales have occurred. Revenues from royalties will be recognized as they accrue in accordance with the terms of the relevant agreement. |
Research and development expenditures | i. Research and development expenditures: Research expenditures are recognized in the statement of comprehensive loss when incurred. |
Impairment of non-financial assets | j. Impairment of non-financial assets: The Company evaluates the need to record an impairment of the carrying amount of non financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of property, plant and equipment exceeds their recoverable amount, the property, plant and equipment are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. As of December 31, 2017 and 2016, no impairment indicators have been identified. |
Financial instruments | k. Financial instruments: 1. Financial assets: Financial assets within the scope of IAS 39 are initially recognized at fair value plus directly attributable transaction costs, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. After initial recognition, the accounting treatment of financial assets is based on their classification as follows: Financial assets at fair value through profit or loss: This category includes financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. 2. Financial liabilities: Financial liabilities are initially recognized at fair value. After initial recognition, the accounting treatment of financial liabilities is based on their classification as follows: Financial liabilities at fair value through statement of comprehensive loss Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through statement of comprehensive loss. A liability may be designated upon initial recognition at fair value through profit or loss, subject to the provisions of IAS 39. 3. Issue of a unit of securities: The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the components of the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities and compound instruments that are presented at amortized cost. The consideration allocated to the equity instruments is determined as the residual value. The issuance costs are allocated to each component based on the amounts allocated to each component in the unit. 4. Derecognition of financial instruments: a) Financial assets: A financial asset is derecognized when the contractual rights to the cash flows from the financial asset expire or the Company has transferred its contractual rights to receive cash flows from the financial asset or assumes an obligation to pay the cash flows in full without material delay to a third party and has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. If the Company transfers its rights to receive cash flows from an asset and neither transfers nor retains substantially all the risks and rewards of the asset nor transfers control of the asset, a new asset is recognized to the extent of the Company's continuing involvement in the asset. When continuing involvement takes the form of guaranteeing the transferred asset, the extent of the continuing involvement is the lower of the original carrying amount of the asset and the maximum amount of consideration received that the Company could be required to repay. b) Financial liabilities: A financial liability is derecognized when it is extinguished, that is when the obligation is discharged, realized, cancelled or expires. A financial liability is extinguished when the debtor (i.e., the Group) discharges the liability by paying in cash, other financial assets, goods or services or shares, or is legally released from the liability. When an existing financial liability is exchanged with another liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is accounted for as an extinguishment of the original liability and the recognition of a new liability. The difference between the carrying amount of the above liabilities is recognized in statement of comprehensive loss. If the exchange or modification is not substantial, it is accounted for as a change in the terms of the original liability and no gain or loss is recognized on the exchange. |
Fair value measurement | l. Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset's or the liability's principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement: |
Treasury shares | m. Treasury shares: Company shares held by OphthaliX are recognized at cost, and as a deduction from equity. Any gain or loss arising from a purchase, sale, issuance or cancellation of treasury shares is recognized directly in equity. As of December 31, 2017, the Company has no treasury shares. Please refer to note 1.b. |
Provisions | n . Provisions : A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the Group expects part or all of the expense to be reimbursed to the Company, such as in an insurance contract, the reimbursement is recognized as a separate asset only when it is virtually certain that it will be received by the Company. The expense is recognized in the income statement net of the reimbursed amount. Legal claims: A provision for claims is recognized when the Group has a present legal or constructive obligation as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required by the Group to settle the obligation and a reliable estimate can be made of the amount of the obligation. No provisions pursuant to IAS 37 have been identified. |
Employee benefit liabilities | o . Employee benefit liabilities : The Company’s liability for severance pay is pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), pursuant to which all the Company’s employees are included under Section 14, and are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in the employee’s name with insurance companies. Under Israeli employment law, payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. The fund is made available to the employee at the time the employer-employee relationship is terminated, regardless of cause of termination. The severance pay liabilities and deposits under Section 14 are not reflected in the consolidated balance sheets as the severance pay risks have been irrevocably transferred to the severance funds. |
Share-based payment transactions | p . Share-based payment transactions : The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment transactions. The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value is determined using the binomial option pricing model. As for other service providers, the cost of the transactions is measured at the fair value of the goods or services received as consideration for equity instruments. In cases where the fair value of the goods or services received as consideration of equity instruments cannot be measured, they are measured by reference to the fair value of the equity instruments granted using binomial option pricing model. The cost of equity-settled transactions is recognized in statement of comprehensive loss, together with a corresponding increase in equity, during the period which the performance and/or service conditions are to be satisfied, ending on the date on which the relevant employees become fully entitled to the award (the “Vesting Period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting period until the vesting date reflects the extent to which the Vesting Period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. If the Company modifies the conditions on which equity-instruments were granted, an additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee/other service provider at the modification date. |
Taxes on income | q . Taxes on income: As it is not likely that taxable income will be generated in the foreseeable future, deferred tax assets due to accumulated losses is not recognized in the Group’s financial statements. |
Loss per share | r . Loss per share : Losses per share are calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of ordinary shares outstanding during the period. Potential ordinary shares (warrants and unlisted options) are only included in the computation of diluted loss per share when their conversion increases loss per share from continuing operations. Potential ordinary shares that are converted during the period are included in diluted loss per share only until the conversion date and from that date in basic loss per share. |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Schedule of property, plant and equipment | % Laboratory equipment and Leasehold improvements 10 Computers, office furniture and equipment 6 - 33 |
Accounts Receivable and Prepa29
Accounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable And Prepaid Expenses | |
Summary of accounts receivable and prepaid expenses | December 31, 2017 2016 NIS in thousands Government authorities 227 84 Prepaid expenses and others 11,484 7,580 11,711 7,664 |
Property, Plant and Equipment30
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment Net Tables | |
Disclosure of property, plant and equipment, net | Laboratory equipment Computers, office furniture and equipment Leasehold improvements Total NIS in thousands Cost: Balance at January 1, 2017 977 1,196 646 2,819 Purchases during the year 24 - - 24 Balance at December 31, 2017 1,001 1,196 646 2,843 Accumulated depreciation: Balance at January 1, 2017 880 1,095 639 2,614 Depreciation during the year 45 22 2 69 Balance at December 31, 2017 925 1,117 641 2,683 Depreciated cost at December 31, 2017 76 79 5 160 Laboratory equipment Computers, office furniture and equipment Leasehold improvements Total NIS in thousands Cost: Balance at January 1, 2016 974 1,162 646 2,782 Purchases during the year 3 37 - 40 Sale of fixed assets - (3 ) - (3 ) Balance at December 31, 2016 977 1,196 646 2,819 Accumulated depreciation: Balance at January 1, 2016 867 1,042 637 2,546 Depreciation during the year 13 56 2 71 Sale of fixed assets - (3 ) - (3 ) Balance at December 31, 2016 880 1,095 639 2,614 Depreciated cost at December 31, 2016 97 101 7 205 |
Other Accounts Payable (Tables)
Other Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Accounts Payable | |
Summary of other accounts payable | December 31, 2017 2016 NIS in thousands Employees and payroll accruals 780 401 Accrued expenses 2,689 3,187 3,469 3,588 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
Schedule of financial assets and liabilities | a. Financial assets: December 31, 2017 2016 NIS in thousands Financial assets at fair value through profit or loss: long-term investment 3,179 - b. Financial liabilities, interest-bearing loans and borrowings: December 31, 2017 2016 NIS in thousands Financial liabilities at fair value through profit or loss: Trade payable 1,479 4,804 Other account payable 3,469 3,588 Deferred revenues 4,623 5,747 Warrants exercisable into shares 7,037 10,068 13,202 24,207 |
Schedule of fair value measurements using significant unobservable inputs | NIS in thousands Balance at December 31, 2015 16,725 Changes in values of warrants exercisable into shares liability (6,657 ) Balance at December 31, 2016 10,068 Fair value of warrants at issuance date 7,117 Purchase of long term investment (3,179 ) Changes in values of warrants exercisable into shares liability (10,148 ) Balance at December 31, 2017 3,858 |
Schedule of fair values assumptions warrants call option | December 31, 2017 2016 Dividend yield 0 0 Expected volatility 48.92%-98.06% 59.03%-91.41% Risk-free interest 1.46%-2.16% 0.9%-1.77% Expected life 0.19-4.55 1.19-4.28 |
Schedule of changes in liabilities arising from financing activities | NIS in thousands 1 January 2017 Cash flows Foreign exchange movement Changes in fair values December 31, Warrants exercisable into shares 10,068 7,117 (1,631 ) (8,517 ) 7,037 Total liabilities from financing activities 10,068 7,117 (1,631 ) (8,517 ) 7,037 |
Schedule of sensitivity tests relating to changes in market factors | December 31, 2017 2016 NIS in thousands Sensitivity test to changes in the U.S. dollar exchange rate: Gain (loss) from the change on financial instruments: Increase of 10% in exchange rate 437 1,427 Decrease of 10% in exchange rate (437 ) (1,427 ) Sensitivity test to changes in the market price of listed securities: Gain (loss) from the change: Increase of 10% in market price (1,020 ) (1,539 ) Decrease of 10% in market price 981 1,472 *) According to binomial model a 10% increase in the market price of listed securities will increase the price of warrants exercisable into shares by approximately 15% and a 10% decrease in the market price of listed securities will decrease the price of warrants exercisable into shares by approximately 15%. |
Contingent Liabilities and Co33
Contingent Liabilities and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contingent Liabilities And Commitments | |
Schedule of future minimum lease commitments under non-cancelable operating leases | NIS in thousands 2018 99 2019 31 130 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity | |
Summary of composition of share capital | December 31, 2017 December 31, 2016 Authorized Issued and outstanding Authorized Issued and outstanding Number of Shares Ordinary shares of NIS 0.25 par value each 80,000,000 33,295,618 80,000,000 28,156,728 |
Summary of issued and outstanding capital | Number of shares NIS par value Balance at December 31, 2015 28,119,728 7,029,932 Issuance of share capital 37,000 9,250 Balance at December 31, 2016 28,156,728 7,039,182 Issuance of share capital 5,138,890 1,284,722 Balance at December 31, 2017 33,295,618 8,323,904 |
Share-Based Payment Transacti35
Share-Based Payment Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payment Transactions | |
Schedule of Expenses | Year ended December 31, 2017 2016 2015 NIS in thousand Research and development expenses 502 495 207 General and administrative expenses 176 676 235 678 1,171 442 |
Summary of weighted average exercise prices and modification in option plans of employees, directors and consultants | Shares subject to options outstanding 2017 2016 2015 Number Weighted Number Weighted Number Weighted NIS NIS NIS Outstanding at beginning of year 737,028 10.12 798,579 12.21 592,707 15.33 Grants 970,000 2.71 180,000 4.43 240,000 4.33 Forfeited/expired (216,605 ) 15.34 (241,551 ) 12.79 (34,128 ) 10.96 Outstanding at end of year 1,490,423 4.68 737,028 10.12 798,579 12.21 Exercisable at end of year 451,266 8.39 402,500 14.90 557,749 15.56 |
Summary of estimated using the binomial option pricing model | December 31, Description 2017 2016 Risk-free interest rate 1.89%-2.31% 2.01%-2.02% Expected volatility 74.4%-77.64% 77.84%-78.22% Dividend yield 0 0 Contractual life 10 10 Early Exercise Multiple (Suboptimal Factor) 2.5 2.5 Exercise price 2.513-3.393 4.317-5.376 |
Research and Development Expe36
Research and Development Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Research And Development Expenses | |
Schedule of research and development expenses | Year ended December 31, 2017 2016 2015 NIS in thousands Clinical and preclinical trials 13,710 19,504 10,815 Salary and related expenses 3,150 2,546 2,575 Patents 830 759 842 Royalties 39 42 240 Laboratory materials 227 144 190 Rent 182 181 182 Depreciation 12 15 19 Others 172 189 189 18,322 23,380 15,052 |
General and Administrative Ex37
General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
General And Administrative Expenses | |
Schedule of general and administrative expenses | Year ended December 31, 2017 2016 2015 NIS in thousands Professional services 4,030 3,917 4,408 Investors and public relations 1,227 1,959 1,633 Salary and related expenses 2,163 1,590 1,669 Directors’ fee 706 805 773 Rent 123 123 123 Travel 403 753 814 Insurance 761 544 469 Stock exchange fees 231 222 222 Office and computer maintenance 293 260 250 Vehicle maintenance 50 55 49 Depreciation 58 56 45 Others 204 199 178 10,249 10,483 10,633 |
Finance (Income) (Tables)
Finance (Income) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finance Income | |
Components of finance (income) | Year ended December 31, 2017 2016 2015 NIS in thousands Finance expenses: Bank commissions 102 105 76 Issuance expenses related to warrants exercisable into shares 1,132 - 2,116 Net loss from exchange rate fluctuations 2,572 580 - Financial expenses from defined benefit plans - - 11 Other loss from long-term investment revaluation 16 - - 3,822 685 2,203 Finance income: Interest income on bank deposits (249 ) (342 ) (87 ) Net gain from exchange rate fluctuations - - (492 ) Net change in fair value warrants exercisable into shares (10,148 ) (6,657 ) (6,913 ) (10,397 ) (6,999 ) (7,492 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loss Per Share | |
Components of number of shares and loss computation of loss per share | Year ended December 31, 2017 2016 2015 Weighted number of shares Loss Weighted number of shares Loss Weighted number of shares Loss In thousands NIS in thousands In thousands NIS in thousands In thousands NIS in thousands Number of shares and loss used in the computation of basic and diluted loss per share 32,525 17,311 26,693 26,532 22,953 18,726 |
Transactions with Related Par40
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transactions With Related Parties Tables | |
Composition of balances with related parties | Year ended December 31, 2017 2016 2015 NIS in thousands Management and consulting fees (including bonuses) (1) 1,817 1,238 1,128 Other expenses and share-based payment (1) 283 608 252 Patent expenses 830 759 805 Directors’ fee and share-based payment (2) 617 514 575 (1) Number of related parties 1 1 1 (2) Number of directors 5 5 5 |
General (Details)
General (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 16, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
General (Textual) | ||||
Ownership interest percentage | 82.00% | |||
Deferred payments | $ 5,000 | |||
Converted shares of exchange ratio | 4.145 | |||
Percentage of outstanding shares of common stock | 8.00% | |||
Net loss | $ (4,993) | |||
Negative cash flows from operating activities | (9,546) | |||
NIS [Member] | ||||
General (Textual) | ||||
Capital gain amount | $ 1,853 | |||
Net loss | (17,311) | $ (27,009) | $ (19,770) | |
Negative cash flows from operating activities | $ (33,099) | $ (34,340) | $ (18,159) |
Significant Accounting Polici42
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Laboratory equipment and Leasehold improvements [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates property, plant and equipment | 10.00% |
Computers, office furniture and equipment [Member] | Bottom of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates property, plant and equipment | 6.00% |
Computers, office furniture and equipment [Member] | Top of range [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates property, plant and equipment | 33.00% |
Significant Accounting Polici43
Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies (Textual) | ||
Foreign currency exchange rate | 1 | |
Monthly deposits rate | 8.33% | |
Description of american depositary share | Each ADS represents 2 ordinary shares of the Company. | |
Treasury shares | ||
NIS [Member] | ||
Significant Accounting Policies (Textual) | ||
Foreign currency exchange rate | 3.467 | |
Treasury shares | $ 3,628 |
Disclusure of New Ifrs in the44
Disclusure of New Ifrs in the Period (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
January 1, 2018 [Member] | NIS [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Increase of deferred revenue | $ 1,378 |
Accounts Receivable and Prepa45
Accounts Receivable and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Line Items [Line Items] | ||
Total | $ 3,378 | |
NIS [Member] | ||
Statement Line Items [Line Items] | ||
Government authorities | 227 | $ 84 |
Prepaid expenses and others | 11,484 | 7,580 |
Total | $ 11,711 | $ 7,664 |
Long-Term Investment (Details)
Long-Term Investment (Details) - Wize Pharma Inc [Member] | Dec. 31, 2017shares |
Long-Term Investment (Textual) | |
Shares of Wize Pharma Inc | 8,563,254 |
Percent of Wize Pharma Inc's outstanding shares | 8.20% |
Property, Plant and Equipment47
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost: | |||
Purchases during the year | $ 7 | ||
Accumulated depreciation: | |||
Depreciation during the year | 20 | ||
Depreciated cost | 46 | ||
NIS [Member] | |||
Cost: | |||
Beginning Balance | 2,819 | $ 2,782 | |
Purchases during the year | 24 | 40 | $ 177 |
Sale of fixed assets | 10 | ||
Ending Balance | 2,843 | 2,819 | 2,782 |
Accumulated depreciation: | |||
Beginning Balance | 2,614 | 2,546 | |
Depreciation during the year | 69 | 71 | 64 |
Sale of fixed assets | (3) | ||
Ending Balance | 2,683 | 2,614 | 2,546 |
Depreciated cost | 160 | 205 | |
Laboratory equipment [Member] | NIS [Member] | |||
Cost: | |||
Beginning Balance | 977 | 974 | |
Purchases during the year | 24 | 3 | |
Sale of fixed assets | |||
Ending Balance | 1,001 | 977 | 974 |
Accumulated depreciation: | |||
Beginning Balance | 880 | 867 | |
Depreciation during the year | 45 | 13 | |
Sale of fixed assets | |||
Ending Balance | 925 | 880 | 867 |
Depreciated cost | 76 | 97 | |
Computers, office furniture and equipment [Member] | NIS [Member] | |||
Cost: | |||
Beginning Balance | 1,196 | 1,162 | |
Purchases during the year | 37 | ||
Sale of fixed assets | (3) | ||
Ending Balance | 1,196 | 1,196 | 1,162 |
Accumulated depreciation: | |||
Beginning Balance | 1,095 | 1,042 | |
Depreciation during the year | 22 | 56 | |
Sale of fixed assets | (3) | ||
Ending Balance | 1,117 | 1,095 | 1,042 |
Depreciated cost | 79 | 101 | |
Leasehold improvements [Member] | NIS [Member] | |||
Cost: | |||
Beginning Balance | 646 | 646 | |
Purchases during the year | |||
Sale of fixed assets | |||
Ending Balance | 646 | 646 | 646 |
Accumulated depreciation: | |||
Beginning Balance | 639 | 637 | |
Depreciation during the year | 2 | 2 | |
Sale of fixed assets | |||
Ending Balance | 641 | 639 | $ 637 |
Depreciated cost | $ 5 | $ 7 |
Other Accounts Payable (Details
Other Accounts Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Line Items [Line Items] | ||
Other accounts payable | $ 1,001 | |
NIS [Member] | ||
Statement Line Items [Line Items] | ||
Employees and payroll accruals | 780 | $ 401 |
Accrued expenses | 2,689 | 3,187 |
Other accounts payable | $ 3,469 | $ 3,588 |
Financial Instruments (Details)
Financial Instruments (Details) - NIS [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities at fair value through profit or loss: | ||
Financial liabilities | $ 13,202 | $ 24,207 |
Trade payable [Member] | ||
Financial liabilities at fair value through profit or loss: | ||
Financial liabilities | 1,479 | 4,804 |
Other account payable [Member] | ||
Financial liabilities at fair value through profit or loss: | ||
Financial liabilities | 3,469 | 3,588 |
Deferred revenues [Member] | ||
Financial liabilities at fair value through profit or loss: | ||
Financial liabilities | 4,623 | 5,747 |
Warrants exercisable into shares [Member] | ||
Financial liabilities at fair value through profit or loss: | ||
Financial liabilities | 7,037 | 10,068 |
Long-term investment [Member] | ||
Financial assets at fair value through profit or loss: | ||
Financial assets | $ 3,179 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Ending Balance | $ 7,852 | |
NIS [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning Balance | 39,109 | |
Ending Balance | 27,222 | $ 39,109 |
Level 3 (Member) | NIS [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning Balance | 10,068 | 16,725 |
Fair value of warrants at issuance date | 7,117 | |
Purchase of long term investment | (3,179) | |
Changes in values of warrants exercisable into shares liability | (10,148) | (6,657) |
Ending Balance | $ 3,858 | $ 10,068 |
Financial Instruments (Detail51
Financial Instruments (Details 2) - Option pricing model [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Dividend yield | $ 0 | $ 0 |
Bottom of range [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Expected volatility | 48.92% | 59.03% |
Risk-free interest | 1.46% | 0.90% |
Expected life | 2 months 8 days | 1 year 2 months 8 days |
Top of range [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Expected volatility | 98.06% | 91.41% |
Risk-free interest | 2.16% | 1.77% |
Expected life | 4 years 6 months 18 days | 4 years 3 months 11 days |
Financial Instruments (Detail52
Financial Instruments (Details 3) - NIS [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Total liabilities from financing activities [Member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance, 1 January 2017 | $ 10,068 |
Cash flows | 7,117 |
Foreign exchange movement | (1,631) |
Changes in fair values | (8,517) |
Ending balance, December 31, 2017 | 7,037 |
Warrants exercisable into shares [Member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance, 1 January 2017 | 10,068 |
Cash flows | 7,117 |
Foreign exchange movement | (1,631) |
Changes in fair values | (8,517) |
Ending balance, December 31, 2017 | $ 7,037 |
Financial Instruments (Detail53
Financial Instruments (Details 4) - NIS [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Gain (loss) from the change on financial instruments: | |||
Increase of 10% in exchange rate | [1] | $ 437 | $ 1,427 |
Decrease of 10% in exchange rate | [1] | (437) | (1,427) |
Gain (loss) from the change: | |||
Increase of 10% in market price | [1] | (1,020) | (1,539) |
Decrease of 10% in market price | [1] | $ 981 | $ 1,472 |
[1] | According to binomial model a 10% increase in the market price of listed securities will increase the price of warrants exercisable into shares by approximately 15% and a 10% decrease in the market price of listed securities will decrease the price of warrants exercisable into shares by approximately 15%. |
Financial Instruments (Detail54
Financial Instruments (Details Textual) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments | ||
Percentage of increase in exchange rate | 10.00% | 10.00% |
Percentage of decrease in exchange rate | 10.00% | 10.00% |
Percentage of increase in market rate | 10.00% | |
Percentage of decrease in market rate | 10.00% | |
Percentage of increase price of warrants exercisable into shares | 15.00% | |
Percentage of decrease price of warrants exercisable into shares | 15.00% |
Contingent Liabilities and Co55
Contingent Liabilities and Commitments (Details) - NIS [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of finance lease and operating lease by lessee [line items] | |
2,018 | $ 99 |
2,019 | 31 |
Total | $ 130 |
Contingent Liabilities and Co56
Contingent Liabilities and Commitments (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2017 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | ||||
Accrued payments | $ 250 | |||
Cipher [Member] | ||||
Statement Line Items [Line Items] | ||||
Royalty payments, percentage | 16.50% | |||
CKD [Member] | ||||
Statement Line Items [Line Items] | ||||
Upfront payments | $ 500 | $ 500 | ||
Upfront payments, additional | $ 2,500 | |||
Royalty payments, percentage | 23.00% | |||
Top of range [Member] | ||||
Statement Line Items [Line Items] | ||||
Percentage of net sales | 3.00% | |||
Bottom of range [Member] | ||||
Statement Line Items [Line Items] | ||||
Percentage of net sales | 2.00% | |||
Euro [Member] | ||||
Statement Line Items [Line Items] | ||||
Concession commission | $ 25 | |||
Annual royalties | 10 | |||
Total royalties | $ 850 | |||
Patent agreement, description | The patent under the agreement, as follows: (i) € 50 thousand thousand thousand thousand | |||
Royalty payments, percentage | 10.00% | |||
NIS [Member] | ||||
Statement Line Items [Line Items] | ||||
Accrued payments | $ 867 | |||
Lease expenses | 222 | $ 195 | ||
Payment of award expenses | 50 | |||
Personal damages | 73 | |||
Damages claims | $ 125,000 | |||
NIS [Member] | Cipher [Member] | ||||
Statement Line Items [Line Items] | ||||
Upfront payments | $ 5,141 | |||
NIS [Member] | CKD [Member] | ||||
Statement Line Items [Line Items] | ||||
Upfront payments | $ 1,901 | |||
CAD [Member] | Cipher [Member] | ||||
Statement Line Items [Line Items] | ||||
Upfront payments | 1,650 | |||
Upfront payments, additional | $ 2,000 |
Equity (Details)
Equity (Details) - Ordinary Shares [Member] - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Line Items [Line Items] | |||
Number of shares authorized | 80,000,000 | 80,000,000 | |
Number of shares issued and outstanding | 33,295,618 | 28,156,728 | 28,119,728 |
Equity (Details 1)
Equity (Details 1) - Ordinary Shares [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | ||
Number of shares, Beginning Balance | 28,156,728 | 28,119,728 |
Number of shares, Issuance of share capital | 5,138,890 | 37,000 |
Number of shares, Ending Balance | 33,295,618 | 28,156,728 |
NIS [Member] | ||
Statement Line Items [Line Items] | ||
NIS par value, Beginning Balance | $ 7,039,182 | $ 7,029,932 |
NIS par value, Issuance of share capital | 1,284,722 | 9,250 |
NIS par value, Ending Balance | $ 8,323,904 | $ 7,039,182 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2014 | Nov. 28, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 03, 2015 | |
2013 Plan [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Description of option agreement | Under the 2013 Plan, the Company may grant its officers, directors, employees and consultants, Stock options, of the Company. Each Stock option granted shall be exercisable at such times and terms and conditions as the Board of Directors may specify in the applicable option agreement, provided that no option will be granted with a term in excess of 10 years. | |||||||||
Reserved for issuance shares of common stock | 1,000,000 | |||||||||
NIS [Member] | 2013 Plan [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares par value | $ 0.25 | |||||||||
Series 7 [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Registered warrants | 9,907,500 | |||||||||
Warrants were exercisable into ordinary shares | 396,300 | |||||||||
Series 7 [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Financial income | $ 119 | |||||||||
Series 10 [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Registered warrants | 39,042,000 | |||||||||
Warrants were exercisable into ordinary shares | 1,561,680 | |||||||||
Warrants expired date | Oct. 31, 2017 | |||||||||
Series 10 [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants exercise price | $ 9.85 | |||||||||
Series 11 [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Registered warrants | 37,372,500 | |||||||||
Warrants were exercisable into ordinary shares | 1,494,900 | |||||||||
Warrants expired date | Oct. 31, 2017 | |||||||||
Series 11 [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants exercise price | $ 9.80 | |||||||||
Series 12 [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Registered warrants | 1,470,000 | |||||||||
Warrants were exercisable into ordinary shares | 1,470,000 | |||||||||
Warrants expired date | Oct. 31, 2017 | |||||||||
Series 12 [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants exercise price | $ 15.29 | |||||||||
Ordinary Shares [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares par value | $ 0.25 | $ 0.25 | ||||||||
Number of shares authorized | 80,000,000 | 80,000,000 | 80,000,000 | |||||||
Ordinary Shares [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares par value | $ 0.25 | |||||||||
Authorized share capital | $ 10,000 | |||||||||
Increased authorized share capital | $ 20,000 | |||||||||
Number of shares authorized | 80,000,000 | |||||||||
ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares | 138,890 | 138,890 | ||||||||
Additional ordinary shares | 69,445 | |||||||||
Warrants term | five and a half years | |||||||||
Warrants exercise price | $ 2.25 | |||||||||
ADS [Member] | Placement Agent Warrants [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares | 250,000 | |||||||||
Warrants to purchase shares issued | 125,000 | |||||||||
Warrants exercise price | $ 2.25 | |||||||||
ADS [Member] | Placement Agent Warrants [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Cash issuance costs | $ 2,299 | |||||||||
September 2015 Financing [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants to purchase shares issued | 2,275,863 | |||||||||
Cash issuance costs | $ 3,060 | |||||||||
September 2015 Financing [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Exercisable price per share | $ 5.25 | $ 5.25 | ||||||||
Equivalent to ordinary share price per share | $ 2.625 | $ 2.625 | ||||||||
Warrants term | Five years | |||||||||
September 2015 Financing [Member] | ADS [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Fair value of warrants issued | $ 2,027 | $ 4,430 | $ 6,370 | |||||||
September 2015 Financing [Member] | Placement Agent Warrants [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants to purchase shares issued | 103,448 | |||||||||
Ordinary shares issued | 206,897 | 206,897 | ||||||||
Exercisable price per share | $ 5.25 | $ 5.25 | ||||||||
Equivalent to ordinary share price per share | 2.625 | $ 2.625 | ||||||||
Subject to certain adjustments, for a period | 5 years | |||||||||
Cash issuance costs | $ 1,224 | |||||||||
September 2015 Financing [Member] | Direct Offering [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares | 2,068,966 | |||||||||
Additional ordinary shares | 2,068,966 | |||||||||
Gross proceeds | $ 34,767 | |||||||||
Issued unregistered warrants to purchase | 1,034,483 | |||||||||
Ordinary shares issued | 4,137,932 | |||||||||
October 2015 Financing [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants to purchase shares issued | 998,276 | |||||||||
October 2015 Financing [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Exercisable price per share | 5.25 | $ 5.25 | ||||||||
Equivalent to ordinary share price per share | $ 2.625 | $ 2.625 | ||||||||
Warrants term | Half years | |||||||||
October 2015 Financing [Member] | ADS [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Fair value of warrants issued | $ 873 | $ 1,914 | 2,746 | |||||||
October 2015 Financing [Member] | Placement Agent Warrants [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants to purchase shares issued | 55,460 | |||||||||
Ordinary shares issued | 110,920 | 110,920 | ||||||||
Exercisable price per share | $ 5.25 | $ 5.25 | ||||||||
Equivalent to ordinary share price per share | $ 2.625 | $ 2.625 | ||||||||
Subject to certain adjustments, for a period | 4 years | |||||||||
Fair value of warrants issued | $ 554 | |||||||||
October 2015 Financing [Member] | Direct Offering [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Ordinary shares | 1,109,196 | |||||||||
Additional ordinary shares | 887,356 | |||||||||
Gross proceeds | $ 18,653 | |||||||||
Issued unregistered warrants to purchase | 443,678 | |||||||||
Ordinary shares issued | 2,218,392 | |||||||||
January 2017 Financing [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Subject to certain adjustments, for a period | 4,007 | |||||||||
Fair value of warrants issued | 7,117 | |||||||||
Additional issuance costs | $ 712 | |||||||||
January 2017 Financing [Member] | Private Placement and Accredited Investors [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Sold an aggregate shares | 2,500,000 | |||||||||
Ordinary shares | 5,000,000 | |||||||||
Warrants to purchase additional shares | 1,250,000 | |||||||||
Additional ordinary shares | 2,500,000 | |||||||||
January 2017 Financing [Member] | Private Placement and Accredited Investors [Member] | ADS [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Aggregate purchase price | $ 18,935 | |||||||||
March 2014 Financing [Member] | ADS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Warrants term | Four years | |||||||||
March 2014 Financing [Member] | ADS [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Fair value of warrants issued | $ 0 | 126 | 2,163 | |||||||
December 2014 Financing [Member] | ADS [Member] | NIS [Member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Fair value of warrants issued | $ 130 | $ 3,597 | $ 5,446 |
Share-Based Payment Transacti60
Share-Based Payment Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||
General and administrative expenses | $ 5,285 | ||
NIS [Member] | |||
Statement Line Items [Line Items] | |||
General and administrative expenses | 18,322 | $ 23,380 | $ 15,052 |
Share-based payment arrangements [Member] | NIS [Member] | |||
Statement Line Items [Line Items] | |||
Research and development expenses | 502 | 495 | 207 |
General and administrative expenses | 176 | 676 | 235 |
Share-based payments | $ 678 | $ 1,171 | $ 442 |
Share-Based Payment Transacti61
Share-Based Payment Transactions (Details 1) | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Statement Line Items [Line Items] | |||
Outstanding at beginning of year | 737,028 | 798,579 | 592,707 |
Grants | 970,000 | 180,000 | 240,000 |
Forfeited/expired | (216,605) | (241,551) | (34,128) |
Outstanding at end of year | 1,490,423 | 737,028 | 798,579 |
Exercisable at end of year | 451,266 | 402,500 | 557,749 |
NIS [Member] | |||
Statement Line Items [Line Items] | |||
Outstanding at beginning of year | 10.12 | 12.21 | 15.33 |
Grants | 2.71 | 4.43 | 4.33 |
Forfeited/expired | 15.34 | 12.79 | 10.96 |
Outstanding at end of year | 4.68 | 10.12 | 12.21 |
Exercisable at end of year | 8.39 | 14.9 | 15.56 |
Share-Based Payment Transacti62
Share-Based Payment Transactions (Details 2) - Binomial option pricing model [Member] | 12 Months Ended | |
Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | |
Statement Line Items [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Contractual life (In years) | 10 | 10 |
Early Exercise Multiple (Suboptimal Factor) | $ 2.5 | $ 2.5 |
Bottom of range [Member] | ||
Statement Line Items [Line Items] | ||
Risk-free interest rate | 1.89% | 2.01% |
Expected volatility | 74.40% | 77.84% |
Exercise price | $ 2.513 | $ 4.317 |
Top of range [Member] | ||
Statement Line Items [Line Items] | ||
Risk-free interest rate | 2.31% | 2.02% |
Expected volatility | 77.64% | 78.22% |
Exercise price | $ 3.393 | $ 5.376 |
Share-Based Payment Transacti63
Share-Based Payment Transactions (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017$ / sharesshares | May 31, 2017$ / sharesshares | Mar. 31, 2017Number / Employees$ / sharesshares | May 31, 2016shares | May 26, 2016Number / Advisers$ / sharesshares | Feb. 29, 2016Number / EmployeesNumber / SeniorOfficer$ / sharesshares | Oct. 31, 2015Number / Employees$ / sharesshares | Mar. 19, 2015Number / EmployeesNumber / SeniorOfficer$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2017$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015$ / shares | |
Share-Based Payment Transactions (Textual) | ||||||||||||
Granted amount of options exercisable to ordinary shares | 60,000 | 210,000 | 74,000 | 20,000 | 160,000 | 200,000 | 40,000 | |||||
Exercise price of per shares | $ / shares | $ 3.393 | $ 3.662 | $ 5.376 | $ 4.317 | $ 3.573 | $ 8.118 | $ 2.513 | $ 20.65 | $ 20.65 | |||
Grant period | 48 months | 48 months | 4 years | 4 years | 3 years | 4 years | ||||||
Number of employees | Number / Employees | 3 | 3 | 1 | 3 | ||||||||
Number of senior officer | Number / SeniorOfficer | 1 | 1 | ||||||||||
Term of options | 10 years | |||||||||||
Issuance of ordinary shares | 37,000 | |||||||||||
Issuance of addition ordinary shares | 37,000 | |||||||||||
Share based payment expenses | $ | $ 196 | $ 322 | ||||||||||
Number of advisers | Number / Advisers | 1 | |||||||||||
weighted average remaining contractual life | 8 years 4 months 17 days | 5 years 10 months 10 days | 4 years 8 months 2 days | |||||||||
Top of Range [Member] | ||||||||||||
Share-Based Payment Transactions (Textual) | ||||||||||||
Granted amount of options exercisable to ordinary shares | 20,000 | |||||||||||
Employees [Member] | ||||||||||||
Share-Based Payment Transactions (Textual) | ||||||||||||
Granted amount of options exercisable to ordinary shares | 460,000 | |||||||||||
Exercise price of per shares | $ / shares | $ 2.513 | |||||||||||
Grant period | 48 months | |||||||||||
Directors [Member] | ||||||||||||
Share-Based Payment Transactions (Textual) | ||||||||||||
Granted amount of options exercisable to ordinary shares | 240,000 | |||||||||||
Exercise price of per shares | $ / shares | $ 2.926 | |||||||||||
Grant period | 48 months |
Research and Development Expe64
Research and Development Expenses (Details) - NIS [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||
Clinical and preclinical trials | $ 13,710 | $ 19,504 | $ 10,815 |
Salary and related expenses | 3,150 | 2,546 | 2,575 |
Patents | 830 | 759 | 842 |
Royalties | 39 | 42 | 240 |
Laboratory materials | 227 | 144 | 190 |
Rent | 182 | 181 | 182 |
Depreciation | 12 | 15 | 19 |
Others | 172 | 189 | 189 |
Research and development expense | $ 18,322 | $ 23,380 | $ 15,052 |
General and Administrative Ex65
General and Administrative Expenses (Details) - NIS [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||
Professional services | $ 4,030 | $ 3,917 | $ 4,408 |
Investors and public relations | 1,227 | 1,959 | 1,633 |
Salary and related expenses | 2,163 | 1,590 | 1,669 |
Directors' fee | 706 | 805 | 773 |
Rent | 123 | 123 | 123 |
Travel | 403 | 753 | 814 |
Insurance | 761 | 544 | 469 |
Stock exchange fees | 231 | 222 | 222 |
Office and computer maintenance | 293 | 260 | 250 |
Vehicle maintenance | 50 | 55 | 49 |
Depreciation | 58 | 56 | 45 |
Others | 204 | 199 | 178 |
General and administrative expenses | $ 10,249 | $ 10,483 | $ 10,633 |
Finance (Income) (Details)
Finance (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance expenses: | |||
Finance expenses | $ (1,102) | ||
Finance income: | |||
Finance income | 2,999 | ||
NIS [Member] | |||
Finance expenses: | |||
Bank commissions | 102 | $ 105 | $ 76 |
Issuance expenses related to warrants exercisable into shares | 1,132 | 2,116 | |
Net loss from exchange rate fluctuations | 2,572 | 580 | |
Financial expenses from defined benefit plans | 11 | ||
Other loss from long-term investment revaluation | 16 | ||
Finance expenses | (3,822) | (685) | (2,203) |
Finance income: | |||
Interest income on bank deposits | (249) | (342) | (87) |
Net gain from exchange rate fluctuations | (492) | ||
Net change in fair value warrants exercisable into shares | (10,148) | (6,657) | (6,913) |
Finance income | $ 10,397 | $ 6,999 | $ 7,492 |
Loss Per Share (Details)
Loss Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||
Number of shares and loss used in the computation of basic and diluted loss per share | 32,525 | 26,693 | 22,953 |
NIS [Member] | |||
Statement Line Items [Line Items] | |||
Number of shares and loss used in the computation of basic and diluted loss per share | 17,311 | 26,532 | 18,726 |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) | 12 Months Ended |
Dec. 31, 2017shares | |
Loss Per Share Details Textual | |
Total number of shares subject to outstanding warrants | 1,921,743 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
NIS [Member] | |||
Statement Line Items [Line Items] | |||
Net operating carryforward losses | $ 12,403 | ||
NIS [Member] | Eye-Fite [Member] | |||
Statement Line Items [Line Items] | |||
Net operating carryforward losses | $ 347,200 | ||
Israel [Member] | |||
Statement Line Items [Line Items] | |||
Corporate tax rate | 24.00% | 25.00% | |
Description of corporate tax rate reduced | The Israeli Parliament’s Plenum approved by a second and third reading the Bill for Amending the Income Tax Ordinance (No. 217) (Reduction of Corporate Tax Rate), 2015, which consists of the reduction of the corporate tax rate from 26.5% to 25%. | The Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018. |
Transactions with Related Par70
Transactions with Related Parties (Details) - NIS [Member] $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Number / DirectorsNumber / RelatedParties | Dec. 31, 2016USD ($)Number / DirectorsNumber / RelatedParties | Dec. 31, 2015USD ($)Number / DirectorsNumber / RelatedParties | ||
Statement Line Items [Line Items] | ||||
Management and consulting fees (including bonuses) | [1] | $ 1,817 | $ 1,238 | $ 1,128 |
Other expenses and share-based payment | [1] | 283 | 608 | 252 |
Patent expenses | 830 | 759 | 805 | |
Directors' fee and share-based payment | [2] | $ 617 | $ 514 | $ 575 |
Number of related parties | Number / RelatedParties | [1] | 1 | 1 | 1 |
Number of directors | Number / Directors | [2] | 5 | 5 | 5 |
[1] | Number of related parties | |||
[2] | Number of directors |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [member] - USD ($) | Mar. 13, 2018 | Jan. 25, 2018 | Jan. 08, 2018 | Mar. 09, 2018 |
Statement Line Items [Line Items] | ||||
Aggregate ordinary shares | 3,333,336 | |||
Warrants to purchase shares | 2,500,002 | |||
Aggregate purchase price | $ 5,000 | |||
Total upfront and milestone payment | $ 2,200,000 | |||
Warrants issued | 982,344 | |||
Warrants term | The warrants may be exercised after 6 months from the date of issuance for a period of five and a half years. | |||
Placement agent warrants [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrants to purchase shares | 166,667 | |||
ADS [Member] | ||||
Statement Line Items [Line Items] | ||||
Aggregate ordinary shares | 6,666,672 | |||
Warrants to purchase shares | 5,000,004 | |||
Warrant exercise price | $ 2 | |||
ADS [Member] | Placement agent warrants [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrants to purchase shares | 333,334 | |||
Warrant exercise price | $ 2 | |||
Gebro Holding [member] | ||||
Statement Line Items [Line Items] | ||||
Sale of milestone description | (i) 300 thousand upon initiation of the ACRobat Phase III clinical trial for the treatment of rheumatoid arthritis and 300 thousand upon the initiation of the COMFORT Phase III clinical trial for the treatment of psoriasis, (ii) between 750 thousand and 1,600 thousand following first delivery of commercial launch quantities of Piclidenson for either the treatment of rheumatoid arthritis or psoriasis, and (iii) between 300 thousand and up to 4,025 thousand upon meeting certain net sales. | |||
Gebro Holding [member] | Euro [Member] | ||||
Statement Line Items [Line Items] | ||||
Total upfront and milestone payment | $ 1,500,000 | |||
March 2014 Financing [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrants issued | 98,234 |