Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2022 | |
Document Information Line Items | |
Entity Registrant Name | Kamada Ltd |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001567529 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-35948 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current Assets | |||
Cash and cash equivalents | $ 29,933 | $ 18,587 | $ 68,416 |
Short-term investments | 36,137 | ||
Trade receivables, net | 17,738 | 35,162 | 27,743 |
Other accounts receivables | 6,410 | 8,872 | 2,450 |
Inventories | 64,520 | 67,423 | 44,601 |
Total Current Assets | 118,601 | 130,044 | 179,347 |
Non-Current Assets | |||
Property, plant and equipment, net | 25,914 | 26,307 | 25,665 |
Right-of-use assets | 2,810 | 3,092 | 3,453 |
Intangible assets, Goodwill and other long-term assets | 150,449 | 153,663 | 3,413 |
Contract assets | 6,361 | 5,561 | 4,472 |
Total Non-Current Assets | 185,534 | 188,623 | 37,003 |
Total Assets | 304,135 | 318,667 | 216,350 |
Current Liabilities | |||
Current maturities of bank loans | 4,449 | 2,631 | 61 |
Current maturities of lease liabilities | 1,010 | 1,154 | 1,149 |
Current maturities of other long term liabilities | 20,117 | 17,986 | |
Trade payables | 17,954 | 25,104 | 17,948 |
Other accounts payables | 6,110 | 7,142 | 6,989 |
Deferred revenues | 40 | 40 | |
Total Current Liabilities | 49,680 | 54,057 | 26,147 |
Non-Current Liabilities | |||
Bank loans | 15,185 | 17,407 | 5 |
Lease liabilities | 2,492 | 3,160 | 3,401 |
Contingent consideration | 23,121 | 21,995 | |
Other long-term liabilities | 41,304 | 43,929 | |
Deferred revenues | 15 | 15 | 3,025 |
Employee benefit liabilities, net | 764 | 1,280 | 1,429 |
Total Non-Current Liabilities | 82,881 | 87,786 | 7,860 |
Shareholder’s Equity | |||
Ordinary shares | 11,731 | 11,725 | 11,716 |
Additional paid in capital net | 210,319 | 210,204 | 209,942 |
Capital reserve due to translation to presentation currency | (3,490) | (3,490) | (3,490) |
Capital reserve from hedges | (442) | 54 | 58 |
Capital reserve from share-based payments | 5,097 | 4,643 | 4,746 |
Capital reserve from employee benefits | 271 | (149) | (320) |
Accumulated deficit | (51,912) | (46,163) | (40,309) |
Total Shareholder’s Equity | 171,574 | 176,824 | 182,343 |
Total Liabilities and Shareholder’s Equity | $ 304,135 | $ 318,667 | $ 216,350 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Consolidated Statements Of Profit Or Loss And Other Comprehensive Income Abstract | |||||
Revenues from proprietary products | $ 18,607 | $ 19,323 | $ 41,618 | $ 40,193 | $ 75,521 |
Revenues from distribution | 4,983 | 4,916 | 10,065 | 8,946 | 28,121 |
Total revenues | 23,590 | 24,239 | 51,683 | 49,139 | 103,642 |
Cost of revenues from proprietary products | 12,256 | 11,059 | 24,705 | 23,527 | 48,194 |
Cost of revenues from distribution | 4,094 | 4,108 | 8,436 | 7,609 | 25,120 |
Total cost of revenues | 16,350 | 15,167 | 33,141 | 31,136 | 73,314 |
Gross profit | 7,240 | 9,072 | 18,542 | 18,003 | 30,328 |
Research and development expenses | 2,643 | 2,736 | 7,063 | 5,364 | 11,357 |
Selling and marketing expenses | 3,271 | 1,424 | 6,592 | 2,547 | 6,278 |
General and administrative expenses | 3,311 | 3,303 | 6,316 | 6,112 | 12,636 |
Other expenses | 309 | 563 | 619 | 570 | 753 |
Operating income (loss) | (2,294) | 1,046 | (2,048) | 3,410 | (696) |
Financial income | 1 | 99 | 3 | 209 | 295 |
Income (expense) in respect of securities measured at fair value, net | |||||
Income (expenses) in respect of currency exchange differences and derivatives instruments, net | 424 | (145) | 593 | 121 | (207) |
Financial Income (expense) in respect of contingent consideration and other long- term liabilities. | (1,865) | (3,875) | (947) | ||
Financial expenses | (178) | (63) | (372) | (116) | (330) |
Income before tax on income | (3,912) | 937 | (5,699) | 3,624 | (1,885) |
Taxes on income | 9 | 50 | 345 | ||
Net Income (loss) | (3,921) | 937 | (5,749) | 3,624 | (2,230) |
Amounts that will be or that have been reclassified to profit or loss when specific conditions are met | |||||
Gain (loss) from securities measured at fair value through other comprehensive income | |||||
Gain (loss) on cash flow hedges | (676) | 30 | (784) | (43) | 185 |
Net amounts transferred to the statement of profit or loss for cash flow hedges | 222 | (2) | 288 | (256) | (488) |
Items that will not be reclassified to profit or loss in subsequent periods: | |||||
Remeasurement gain (loss) from defined benefit plan | 420 | 420 | 171 | ||
Tax effect | |||||
Total comprehensive income (loss) | $ (3,955) | $ 965 | $ (5,825) | $ 3,325 | $ (2,362) |
Earnings per share attributable to equity holders of the Company: | |||||
Basic net earnings per share (in Dollars per share) | $ (0.09) | $ 0.02 | $ (0.13) | $ 0.08 | $ (0.05) |
Diluted net earnings per share (in Dollars per share) | $ (0.09) | $ 0.02 | $ (0.13) | $ 0.08 | $ (0.05) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share capital | Additional paid in capital | Capital reserve from securities measured at fair value through other comprehensive income | Capital reserve due to translation to presentation currency | Capital reserve from hedges | Capital reserve from sharebased payments | Capital reserve from employee benefits | Accumulated deficit | Total |
Balance at Dec. 31, 2020 | $ 11,706 | $ 209,760 | $ (3,490) | $ 357 | $ 4,558 | $ (320) | $ (43,933) | $ 178,638 | |
Net income | 3,624 | 3,624 | |||||||
Other comprehensive income (loss) | (299) | (299) | |||||||
Tax effect | |||||||||
Total comprehensive income (loss) | (299) | 3,624 | 3,325 | ||||||
Exercise and forfeiture of share-based payment into shares | 10 | 188 | (182) | 10 | |||||
Cost of share-based payment | 370 | 370 | |||||||
Balance at Jun. 30, 2021 | 11,716 | 209,942 | (3,490) | 58 | 4,746 | (320) | (40,309) | 182,343 | |
Balance at Dec. 31, 2020 | 11,706 | 209,760 | (3,490) | 357 | 4,558 | (320) | (43,933) | 178,638 | |
Net income | (2,230) | (2,230) | |||||||
Other comprehensive income (loss) | (303) | 171 | (132) | ||||||
Tax effect | |||||||||
Total comprehensive income (loss) | (303) | 171 | (2,230) | (2,362) | |||||
Exercise and forfeiture of share-based payment into shares | 19 | 444 | (444) | 19 | |||||
Cost of share-based payment | 529 | 529 | |||||||
Balance at Dec. 31, 2021 | 11,725 | 210,204 | (3,490) | 54 | 4,643 | (149) | (46,163) | 176,824 | |
Balance at Mar. 31, 2021 | 11,713 | 209,859 | (3,490) | 30 | 4,674 | (320) | (41,246) | 181,220 | |
Net income | 937 | 937 | |||||||
Other comprehensive income (loss) | 28 | 28 | |||||||
Tax effect | |||||||||
Total comprehensive income (loss) | 28 | 937 | 965 | ||||||
Exercise and forfeiture of share-based payment into shares | 3 | 83 | (83) | 3 | |||||
Cost of share-based payment | 155 | 155 | |||||||
Balance at Jun. 30, 2021 | 11,716 | 209,942 | (3,490) | 58 | 4,746 | (320) | (40,309) | 182,343 | |
Balance at Dec. 31, 2021 | 11,725 | 210,204 | (3,490) | 54 | 4,643 | (149) | (46,163) | 176,824 | |
Net income | (5,749) | (5,749) | |||||||
Other comprehensive income (loss) | (496) | 420 | (76) | ||||||
Tax effect | |||||||||
Total comprehensive income (loss) | (496) | 420 | (5,749) | (5,825) | |||||
Exercise and forfeiture of share-based payment into shares | 6 | 115 | (115) | 6 | |||||
Cost of share-based payment | 569 | 569 | |||||||
Balance at Jun. 30, 2022 | 11,731 | 210,319 | (3,490) | (442) | 5,097 | 271 | (51,912) | 171,574 | |
Balance at Mar. 31, 2022 | 11,728 | 210,269 | (3,490) | 12 | 4,771 | (149) | (47,991) | 175,150 | |
Net income | (3,921) | (3,921) | |||||||
Other comprehensive income (loss) | (454) | 420 | (34) | ||||||
Tax effect | |||||||||
Total comprehensive income (loss) | (454) | 420 | (3,921) | (3,955) | |||||
Exercise and forfeiture of share-based payment into shares | 3 | 50 | (50) | 3 | |||||
Cost of share-based payment | 376 | 376 | |||||||
Balance at Jun. 30, 2022 | $ 11,731 | $ 210,319 | $ (3,490) | $ (442) | $ 5,097 | $ 271 | $ (51,912) | $ 171,574 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||||
Net income (loss) | $ (3,921) | $ 937 | $ (5,749) | $ 3,624 | $ (2,230) |
Adjustments to the profit or loss items: | |||||
Depreciation and impairment | 3,061 | 1,225 | 6,088 | 2,372 | 5,609 |
Financial expenses (income), net | 1,618 | 109 | 3,651 | (214) | 1,189 |
Cost of share-based payment | 376 | 155 | 569 | 370 | 529 |
Taxes on income | 9 | 50 | 345 | ||
Loss (gain) from sale of property and equipment | |||||
Change in employee benefit liabilities, net | (84) | 60 | (96) | 23 | 45 |
Adjustments to the profit or loss items | 4,980 | 1,549 | 10,262 | 2,551 | 7,717 |
Changes in asset and liability items: | |||||
Decrease (increase) in trade receivables, net | 3,610 | (7,231) | 17,102 | (5,646) | (12,861) |
Decrease (increase) in other accounts receivables | 1,484 | 1,643 | 2,073 | 1,629 | (1,634) |
Decrease (increase) in inventories | 241 | (3,446) | 2,903 | (2,401) | (2,373) |
Decrease (increase) in deferred expenses | (374) | (1,209) | (484) | (2,362) | (6,883) |
Increase (decrease) in trade payables | 5,806 | 2,623 | (7,843) | 1,139 | 7,917 |
Increase (decrease) in other accounts payables | (745) | 1,346 | (1,517) | (799) | (392) |
Decrease in deferred revenues | 500 | 1,000 | 1,815 | ||
Total Changes in asset and liability | 10,022 | (5,774) | 12,234 | (7,440) | (14,411) |
Cash received (paid) during the period for: | |||||
Interest paid | (186) | (59) | (380) | (107) | (228) |
Interest received | 1 | 76 | 3 | 217 | 375 |
Taxes paid | (9) | (9) | (18) | (23) | (42) |
Cash received (paid) during the year | (194) | 8 | (395) | 87 | 105 |
Net cash provided by (used in) operating activities | 10,887 | (3,280) | 16,352 | (1,178) | (8,819) |
Cash Flows from Investing Activities | |||||
Investment in short term investments, net | 11,967 | 2,967 | 39,083 | ||
Purchase of property and equipment and intangible assets | (678) | (1,332) | (1,191) | (1,463) | (3,730) |
Proceeds from sale of property and equipment | |||||
Business combination | (1,404) | (96,403) | |||
Net cash provided by (used in) investing activities | (678) | 10,635 | (1,191) | 100 | (61,050) |
Cash Flows from Financing Activities | |||||
Proceeds from exercise of share base payments | 3 | 3 | 6 | 10 | 19 |
Receipt of long-term loans | 20,000 | ||||
Repayment of lease liabilities | (278) | (306) | (573) | (595) | (1,221) |
Repayment of long-term loans | (385) | (85) | (401) | (206) | (205) |
Repayment of other long-term liabilities | (1,743) | (3,243) | |||
Net cash provided by (used in) financing activities | (2,403) | (388) | (4,211) | (791) | 18,593 |
Exchange differences on balances of cash and cash equivalent | 160 | 13 | 396 | 88 | (334) |
Increase (decrease) in cash and cash equivalents | 7,966 | 6,980 | 11,346 | (1,781) | (51,610) |
Cash and cash equivalents at the beginning of the period | 21,967 | 61,436 | 18,587 | 70,197 | 70,197 |
Cash and cash equivalents at the end of the period | 29,933 | 68,416 | 29,933 | 68,416 | 18,587 |
Significant non-cash transactions | |||||
Right-of-use asset recognized with corresponding lease liability | 121 | 287 | 296 | 588 | 845 |
Purchase of property and equipment and Intangible assets | $ 775 | $ 722 | $ 775 | $ 748 | $ 1,001 |
General
General | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of general [abstract] | |
General | Note 1:- General General description of the Company and its activity Kamada Ltd. (the “Company”) is a vertically integrated global biopharmaceutical company, focused on specialty plasma-derived therapeutics, with a diverse portfolio of marketed products, a robust development pipeline and industry-leading manufacturing capabilities. The Company’s strategy is focused on driving profitable growth from our current commercial activities as well as our manufacturing and development expertise in the plasma-derived biopharmaceutical market. The Company’s commercial products portfolio includes its developed and FDA approved products GLASSIA® and KEDRRAB® as well as its recently acquired FDA approved plasma-derived hyperimmune products CYTOGAM®, HEPAGAM B®, VARIZIG® and WINRHO®SDF. The Company has additional four plasma-derived products which are registered in markets outside the U.S. The Company distributes its commercial products portfolio directly, and through strategic partners or third party distributors in more than 30 countries, including the U.S., Canada, Israel, Russia, Brazil, Argentina, India and other countries in Latin America and Asia. The Company has a diverse portfolio of development pipeline products including an inhaled AAT for the treatment of AAT deficiency for which the Company is currently conducting the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial. The Company leverages its expertise and presence in the Israeli pharmaceutical market to distribute in Israel more than 20 products that are manufactured by third parties and have recently added eleven biosimilar products to its Israeli distribution portfolio, which, subject to EMA and the Israeli MOH approvals, are expected to be launched in Israel between the years 2022 and 2028. In November 2021, the Company acquired a portfolio of four FDA approved plasma-derived hyperimmune commercial products from Saol Therapeutics (“Saol”). The acquisition of this portfolio furthers the Company’s core objective to become a fully integrated specialty plasma company with strong commercial capabilities in the U.S. market, as well as to expand to new markets, mainly in the Middle East/North Africa region, and to broaden the Company’s portfolio offering in existing markets. The Company’s wholly owned U.S. subsidiary, Kamada Inc., will be responsible for the commercialization of the four products in the U.S. market, including direct sales to wholesalers and local distributers. Refer to Note 5 of the Company’s annual financial statements as of December 31, 2021. The Company markets GLASSIA in the U.S. through a strategic partnership with Takeda Pharmaceuticals Company Limited (“Takeda”). Pursuant to an agreement with Takeda, the Company terminated the production and sale of GLASSIA to Takeda during 2021 resulting in a significant reduction in revenues. Takeda initiated its own production of GLASSIA for the U.S. market. Commencing 2022, Takeda pays royalties to the Company at a rate of 12% on GLASSIA’s net sales through August 2025, and at a rate of 6% thereafter until 2040, with a minimum of $5 million annually. Refer to Note 19 of the Company’s annual financial statements as of December 31, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2:- Significant Accounting Policies a. Basis of preparation of the interim consolidated financial statements: The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, “Interim Financial Reporting”. b. Implementation of new accounting standards: i. Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” (“the Amendment”) regarding the criteria for determining the classification of liabilities as current or non-current. The Amendment replaces certain requirements for classifying liabilities as current or non-current. Thus for example, according to the Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period, this instead of the requirement that there be an “unconditional” right. According to the Amendment, a right is in existence at the reporting date only if the entity complies with conditions for deferring settlement at that date. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The Amendment is effective for reporting periods beginning on or after January 1, 2023 with earlier application being permitted. The Amendment is applicable retrospectively, including an amendment to comparative data. The Company believes that the adoption of the Amendment will not have an effect on its financial statements. ii. Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. The Amendment is effective for annual periods beginning on or after January 1, 2023, by amending the opening balance of the retained earnings or adjusting a different component of equity in the period the Amendment was first adopted. Earlier application is permitted. The Company has not yet commenced examining the effects of applying the Amendment on the financial statements. |
Significant Events in the Repor
Significant Events in the Reporting Period | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Non Adjusting Events After Reporting Period Text Block Abstract | |
Significant events in the reporting period | N ote 3:- Significant events in the reporting period i Grant of options to the purchase ordinary shares of the Company to employees, executive officers, CEO and Board of Directors members On February 28, 2022, the Company’s Board of Directors approved the grant of options to purchase up to 1,345,600, 400,000 and 270,000 ordinary shares of the Company to employees and executive officers, CEO and Board of Directors members, respectively. As of June 30, 2022, the Company granted, out the above mentioned, to employees and executive officers total of: - 1,130,100 options to purchase the ordinary shares of the Company, under the Israeli Share Option Plan, at an exercise price of NIS 19.36-18.92 (USD 5.80-6.05) per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $2,272 thousands. - 101,200 options to purchase the ordinary shares of the Company, under the US Share Option Plan, at an exercise price of USD 5.88-6.10 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $226 thousands. 36,200 options to purchase the ordinary shares of the Company, under the US Share Option Plan, at an exercise price of USD 5.65-5.82 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $80 thousands. The grant of options to the CEO and the Board of Directors members are subject to the approval of the General Meeting of Shareholders that is expected to take place during 2022. ii Labor strike at the Company’s manufacturing plant at Beit Kama, Israel - On April 26, 2022, during the course of the Company’s negotiations with the Histadrut - General Federation of Labor in Israel (the “Histadrut”) and the Employees’ Committee of Kamada’s Beit Kama production facility in Israel (the “Employee’s Committee”), on the extension of a collective bargaining agreement, the Employee’s Committee elected to declare a labor strike in the Beit Kama plant. On July 15, 2022, the Company, the Employees’s Committee, and the Histadrut, signed a new collective agreement detailing the understandings reached between the parties. The agreement will be effective through the end of 2029, while certain economic terms may be renegotiated by the parties following the lapse of the first four years of the term of the agreement. As a result of execution of the agreement the labor strike ended, and the unionized employees returned to work at the Beit Kama production facility. As a result of the labor strike, the Company recorded, during the second quarter of 2022, a loss of $3,342 thousand recorded in the cost of revenues from proprietary products and was comprised of $3,082 thousands of overhead cost charges due to lower than standard production level in the second quarter and $260 thousands due to loss of in-process materials. iii Increase in the yield of high-quality corporate bonds As of June 30, 2022, there was an increase, compared to December 31, 2021, in the yield of high-quality corporate bonds which effect the discount rate of defined benefit obligations. The effect of the changes in the aforementioned discount rate resulted in a reduction in the employee benefit liability, net as of June 30, 2022, in relation to December 31, 2021, in the amount of $420 thousand dollar which were recognized against other comprehensive income in the six-month period that ended on June 30, 2022. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Operating Segments | Note 4:- Operating Segments a. General: The company has two operating segments, as follows: Proprietary Products - Development, manufacturing, sales and distribution of plasma-derived protein therapeutics. Distribution - Distribute imported drug products in Israel, which are manufactured by third parties. b. Reporting on operating segments: Proprietary Distribution Total U.S Dollars in thousands Unaudited Six months period ended June 30, 2022 Revenues $ 41,618 $ 10,065 $ 51,683 Gross profit $ 16,913 $ 1,629 $ 18,542 Unallocated corporate expenses (20,590 ) Finance expenses, net (3,651 ) Income before taxes on income $ (5,699 ) Proprietary Distribution Total U.S Dollars in thousands Unaudited Six months period ended June 30, 2021 Revenues $ 40,193 $ 8,946 $ 49,139 Gross profit $ 16,666 $ 1,337 $ 18,003 Unallocated corporate expenses (14,593 ) Finance expenses, net 214 Income before taxes on income $ 3,624 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended June 30, 2022 Revenues $ 18,607 $ 4,983 $ 23,590 Gross profit $ 6,351 $ 899 $ 7,240 Unallocated corporate expenses (9,534 ) Finance expenses, net (1,618 ) Income before taxes on income $ (3,912 ) Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended June 30, 2021 Revenues $ 19,323 $ 4,916 $ 24,239 Gross profit $ 8,264 $ 808 $ 9,072 Unallocated corporate expenses (8,026 ) Finance expenses, net (109 ) Income before taxes on income $ 937 b. Reporting on operating segments: Proprietary Distribution Total U.S Dollars in thousands Audited Year Ended December 31, 2021 Revenues $ 75,521 $ 28,121 $ 103,642 Gross profit $ 27,327 $ 3,001 $ 30,328 Unallocated corporate expenses (31,024 ) Finance expenses, net (1,189 ) Income before taxes on income $ (1,885 ) c. Reporting on operating segments by geographic region: Six months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 28,562 $ - $ 28,562 Israel 2,254 10,065 12,319 Europe 5,149 - 5,149 Latin America 3,526 - 3,526 Asia 1,760 - 1,760 Others 367 - 367 $ 41,618 $ 10,065 $ 51,683 Six months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 26,556 - $ 26,576 Israel 5,588 8,946 14,534 Europe 3,394 - 3,394 Latin America 3,603 - 3,603 Asia 1,019 - 1,019 Others 33 - 33 $ 40,193 $ 8,946 $ 49,139 c. Reporting on operating segments by geographic region: Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 11,611 $ - $ 11,611 Israel 627 4,983 5,610 Europe 4,097 - 4,097 Latin America 1,496 - 1,496 Asia 776 - 776 Others - - - $ 18,607 $ 4,983 $ 23,590 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 12,672 - $ 12,672 Israel 3,602 4,916 8,518 Europe 967 - 967 Latin America 1,428 - 1,428 Asia 640 - 640 Others 14 - 14 $ 19,323 $ 4,916 $ 24,239 Year ended December 31, 2021 Proprietary Distribution Total U.S Dollars in thousands Audited Geographical markets U.S.A and North America $ 49,763 $ - $ 49,763 Israel 7,653 28,121 35,774 Europe 5,677 - 5,677 Latin America 9,127 - 9,127 Asia 3,167 - 3,167 Others 134 - 134 $ 75,521 $ 28,121 $ 103,642 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of financial instruments [abstract] | |
Financial Instruments | Note 5:- Financial Instruments a. Classification of financial instruments by fair value hierarchy Financial assets (liabilities) measured at fair value Level 1 Level 2 Level 3 U.S Dollars in thousands June 30, 2022 Derivatives instruments $ - $ (437 ) - Contingent consideration - - $ (23,121 ) June 30, 2021 Derivatives instruments $ - $ 23 $ - December 31, 2021 Derivatives instruments $ - $ 73 $ - Contingent consideration $ - $ - $ (21,995 ) During the Six months ended on June 30, 2022 there were no transfers due to the fair value measurement of any financial instrument from Level 1 to Level 2, and furthermore, there were no transfers to or from Level 3 due to the fair value measurement of any financial instrument. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 6:- Subsequent events a. Regarding the end of the labor strike in the Company’s manufacturing plant at Beit Kama, Israel please refer to Note 3ii. b. During May 2022, the Company terminated a distribution agreement with a third-party engaged to distribute the Company’s proprietary products in Russia and Ukraine (the “Distributor”), and a power of attorney granted, in connection with such distribution agreement, to an affiliate of the Distributor (the “Affiliate). On July 18, 2022, the Affiliate notified the Company of the filing of a request for a conciliation hearing with the Court in Geneva relying on the terminated power of attorney and seeking damages for the alleged inability to sell the remaining product inventory previously acquired from the Company and compensation for the lost customer base. The purpose of a conciliation hearing is to explore the possibility of an out-of-court settlement and not to address the merits of the claims. The outcome of such hearing is not binding. Nonetheless, the conciliation request has not yet been formally served upon the Company, which is a procedural request to proceed with the hearing. At this stage, it is not possible to assess the prospects and scope of any claims against the Company and any potential liabilities as such conciliation request is an initial procedure and the claims are not fully substantiated. The Company intends to vigorously defend itself against any claims if and when they arise from these matters. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of preparation of the interim consolidated financial statements: | a. Basis of preparation of the interim consolidated financial statements: The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, “Interim Financial Reporting”. |
Implementation of new accounting standards: | b. Implementation of new accounting standards: i. Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” (“the Amendment”) regarding the criteria for determining the classification of liabilities as current or non-current. The Amendment replaces certain requirements for classifying liabilities as current or non-current. Thus for example, according to the Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period, this instead of the requirement that there be an “unconditional” right. According to the Amendment, a right is in existence at the reporting date only if the entity complies with conditions for deferring settlement at that date. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The Amendment is effective for reporting periods beginning on or after January 1, 2023 with earlier application being permitted. The Amendment is applicable retrospectively, including an amendment to comparative data. The Company believes that the adoption of the Amendment will not have an effect on its financial statements. ii. Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. The Amendment is effective for annual periods beginning on or after January 1, 2023, by amending the opening balance of the retained earnings or adjusting a different component of equity in the period the Amendment was first adopted. Earlier application is permitted. The Company has not yet commenced examining the effects of applying the Amendment on the financial statements. |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Entitys Operating Segments Text Block Abstract | |
Schedule of reporting on operating segments | Proprietary Distribution Total U.S Dollars in thousands Unaudited Six months period ended June 30, 2022 Revenues $ 41,618 $ 10,065 $ 51,683 Gross profit $ 16,913 $ 1,629 $ 18,542 Unallocated corporate expenses (20,590 ) Finance expenses, net (3,651 ) Income before taxes on income $ (5,699 ) Proprietary Distribution Total U.S Dollars in thousands Unaudited Six months period ended June 30, 2021 Revenues $ 40,193 $ 8,946 $ 49,139 Gross profit $ 16,666 $ 1,337 $ 18,003 Unallocated corporate expenses (14,593 ) Finance expenses, net 214 Income before taxes on income $ 3,624 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended June 30, 2022 Revenues $ 18,607 $ 4,983 $ 23,590 Gross profit $ 6,351 $ 899 $ 7,240 Unallocated corporate expenses (9,534 ) Finance expenses, net (1,618 ) Income before taxes on income $ (3,912 ) Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended June 30, 2021 Revenues $ 19,323 $ 4,916 $ 24,239 Gross profit $ 8,264 $ 808 $ 9,072 Unallocated corporate expenses (8,026 ) Finance expenses, net (109 ) Income before taxes on income $ 937 Proprietary Distribution Total U.S Dollars in thousands Audited Year Ended December 31, 2021 Revenues $ 75,521 $ 28,121 $ 103,642 Gross profit $ 27,327 $ 3,001 $ 30,328 Unallocated corporate expenses (31,024 ) Finance expenses, net (1,189 ) Income before taxes on income $ (1,885 ) |
Schedule of reporting on operating segments geographic region | Six months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 28,562 $ - $ 28,562 Israel 2,254 10,065 12,319 Europe 5,149 - 5,149 Latin America 3,526 - 3,526 Asia 1,760 - 1,760 Others 367 - 367 $ 41,618 $ 10,065 $ 51,683 Six months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 26,556 - $ 26,576 Israel 5,588 8,946 14,534 Europe 3,394 - 3,394 Latin America 3,603 - 3,603 Asia 1,019 - 1,019 Others 33 - 33 $ 40,193 $ 8,946 $ 49,139 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 11,611 $ - $ 11,611 Israel 627 4,983 5,610 Europe 4,097 - 4,097 Latin America 1,496 - 1,496 Asia 776 - 776 Others - - - $ 18,607 $ 4,983 $ 23,590 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 12,672 - $ 12,672 Israel 3,602 4,916 8,518 Europe 967 - 967 Latin America 1,428 - 1,428 Asia 640 - 640 Others 14 - 14 $ 19,323 $ 4,916 $ 24,239 Year ended December 31, 2021 Proprietary Distribution Total U.S Dollars in thousands Audited Geographical markets U.S.A and North America $ 49,763 $ - $ 49,763 Israel 7,653 28,121 35,774 Europe 5,677 - 5,677 Latin America 9,127 - 9,127 Asia 3,167 - 3,167 Others 134 - 134 $ 75,521 $ 28,121 $ 103,642 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Financial Instruments Text Block Abstract | |
Schedule of financial assets (liabilities) measured at fair value | Level 1 Level 2 Level 3 U.S Dollars in thousands June 30, 2022 Derivatives instruments $ - $ (437 ) - Contingent consideration - - $ (23,121 ) June 30, 2021 Derivatives instruments $ - $ 23 $ - December 31, 2021 Derivatives instruments $ - $ 73 $ - Contingent consideration $ - $ - $ (21,995 ) |
General (Details)
General (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of General Information About Financial Statements Text Block Abstract | |
Pursuant agreement, description | Commencing 2022, Takeda pays royalties to the Company at a rate of 12% on GLASSIA’s net sales through August 2025, and at a rate of 6% thereafter until 2040, with a minimum of $5 million annually. |
Significant Events in the Rep_2
Significant Events in the Reporting Period (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 ₪ / shares | Feb. 28, 2022 shares | |
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 36,200 | ||
Fair value of options | $ 80 | ||
Cost of revenues from proprietary products | 3,342 | ||
Cost charges | 3,082 | ||
Loss of in-process materials | 260 | ||
Employee benefit liability | $ 420 | ||
Top of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Exercise prices for share option | $ / shares | $ 5.65 | ||
Bottom of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Exercise prices for share option | $ / shares | $ 82 | ||
Israeli Share Option Plan [Member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Fair value of options | $ 2,272 | ||
Israeli Share Option Plan [Member] | Top of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 1,130,100 | ||
Exercise prices for share option | (per share) | $ 6.05 | ₪ 19.36 | |
Israeli Share Option Plan [Member] | Bottom of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Exercise prices for share option | (per share) | $ 5.8 | ₪ 18.92 | |
US Share Option Plan [Member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 101,200 | ||
Fair value of options | $ 226 | ||
US Share Option Plan [Member] | Top of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Exercise prices for share option | $ / shares | $ 5.88 | ||
US Share Option Plan [Member] | Bottom of range [member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Exercise prices for share option | $ / shares | $ 10 | ||
Employees [Member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 1,345,600 | ||
CEO [Member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 400,000 | ||
Board of Directors [Member] | |||
Significant Events in the Reporting Period (Details) [Line Items] | |||
Option granted (in Shares) | shares | 270,000 |
Operating Segments (Details) -
Operating Segments (Details) - Schedule of reporting on operating segments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items] | |||||
Revenues | $ 23,590 | $ 24,239 | $ 51,683 | $ 49,139 | $ 103,642 |
Gross profit | 7,240 | 9,072 | 18,542 | 18,003 | 30,328 |
Unallocated corporate expenses | (9,534) | (8,026) | (20,590) | (14,593) | (31,024) |
Finance expenses, net | (1,618) | (109) | (3,651) | 214 | (1,189) |
Income before taxes on income | (3,912) | 937 | (5,699) | 3,624 | (1,885) |
Proprietary Products [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items] | |||||
Revenues | 18,607 | 19,323 | 41,618 | 40,193 | 75,521 |
Gross profit | 6,351 | 8,264 | 16,913 | 16,666 | 27,327 |
Distribution [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items] | |||||
Revenues | 4,983 | 4,916 | 10,065 | 8,946 | 28,121 |
Gross profit | $ 899 | $ 808 | $ 1,629 | $ 1,337 | $ 3,001 |
Operating Segments (Details) _2
Operating Segments (Details) - Schedule of reporting on operating segments geographic region - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | $ 23,590 | $ 24,239 | $ 51,683 | $ 49,139 | $ 103,642 |
U.S.A and North America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 11,611 | 12,672 | 28,562 | 26,576 | 49,763 |
Israel [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 5,610 | 8,518 | 12,319 | 14,534 | 35,774 |
Europe [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 4,097 | 967 | 5,149 | 3,394 | 5,677 |
Latin America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 1,496 | 1,428 | 3,526 | 3,603 | 9,127 |
Asia [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 776 | 640 | 1,760 | 1,019 | 3,167 |
Others [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Total | 14 | 367 | 33 | 134 | |
Proprietary Products [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 18,607 | 19,323 | 41,618 | 40,193 | 75,521 |
Proprietary Products [Member] | U.S.A and North America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 11,611 | 12,672 | 28,562 | 26,556 | 49,763 |
Proprietary Products [Member] | Israel [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 627 | 3,602 | 2,254 | 5,588 | 7,653 |
Proprietary Products [Member] | Europe [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 4,097 | 967 | 5,149 | 3,394 | 5,677 |
Proprietary Products [Member] | Latin America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 1,496 | 1,428 | 3,526 | 3,603 | 9,127 |
Proprietary Products [Member] | Asia [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 776 | 640 | 1,760 | 1,019 | 3,167 |
Proprietary Products [Member] | Others [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Proprietary Products | 14 | 367 | 33 | 134 | |
Distribution [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | 4,983 | 4,916 | 10,065 | 8,946 | 28,121 |
Distribution [Member] | U.S.A and North America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | |||||
Distribution [Member] | Israel [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | 4,983 | $ 4,916 | 10,065 | 8,946 | 28,121 |
Distribution [Member] | Europe [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | |||||
Distribution [Member] | Latin America [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | |||||
Distribution [Member] | Asia [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution | |||||
Distribution [Member] | Others [Member] | |||||
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items] | |||||
Distribution |
Financial Instruments (Details)
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Level 1 [Member] | |||
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items] | |||
Derivatives instruments | |||
Contingent consideration | |||
Level 2 [Member] | |||
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items] | |||
Derivatives instruments | (437) | 73 | 23 |
Contingent consideration | |||
Level 3 [Member] | |||
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items] | |||
Derivatives instruments | |||
Contingent consideration | $ (23,121) | $ (21,995) |