Gamida Cell (GMDAQ) 6-K 2020 Q2 Report of Foreign Private Issuer

Exhibit 99.1

Gamida Cell ltd. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020

U.S. DOLLARS IN THOUSANDS

UNAUDITED

INDEX

	Page
Interim Consolidated Statements of Financial Position	2 – 3
Interim Consolidated Statements of Comprehensive Loss	4
Interim Consolidated Statements of Changes in Equity	5 – 7
Interim Consolidated Statements of Cash Flows	8 – 9
Notes to Interim Consolidated Financial Statements	10 – 15

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands

	June 30				December 31,
	2020		2019		2019
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	88,638	$	37,078	$	41,838
Available-for-sale financial assets		-		4,618		13,559
Prepaid expenses and other current assets		2,241		886		1,306
Total current assets		90,879		42,582		56,703
NON-CURRENT ASSETS:
Property, plant and equipment, net		14,204		3,437		6,298
Right-of-use assets		7,490		6,157		5,133
Other assets		642		1,355		641
Total non-current assets		22,336		10,949		12,072
Total assets	$	113,215	$	53,531	$	68,775

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands (except share and per share data)

	June 30,						December 31,
	2020			2019			2019
	Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables	$	2,738		$	2,121		$	1,164
Employees and payroll accruals		3,187			2,753			3,443
Current maturities of lease liabilities		2,145			1,945			1,870
Accrued expenses and other payables		5,509			2,699			4,918
Total current liabilities		13,579			9,518			11,395
NON-CURRENT LIABILITIES:
Liabilities presented at fair value		4,551			7,654			5,221
Employee benefit liabilities, net		773			274			773
Lease liabilities		5,946			4,627			4,101
Liability to Israel Innovation Authority (IIA)		13,816			10,906			12,302
Total non-current liabilities		25,086			23,461			22,397
SHAREHOLDERS’ EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par value - Authorized: 100,000,000 shares at June 30, 2020 and 2019 (unaudited) and December 31, 2019; Issued and outstanding: 49,471,817 and 25,606,423 shares at June 30, 2020 and 2019 (unaudited) and 33,670,926 shares at December 31, 2019, respectively		137			69			92
Share premium		304,175			199,402			238,992
Capital reserve due to actuarial gains		(541	)		(160	)		(541	)
Available-for-sale reserve		-			(1	)		4
Accumulated deficit		(229,221	)		(178,758	)		(203,564	)
Total shareholders’ equity		74,550			20,552			34,983
Total liabilities and shareholders’ equity	$	113,215		$	53,531		$	68,775

The accompanying notes are an integral part of the interim consolidated financial statements.

, 2020
Date of approval of the	Julian Adams	Shai Lankry
financial statements	Director and Chief Executive Officer	Chief Financial Officer

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

U.S. dollars in thousands (except share and per share data)

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2020			2019			2020			2019			2019
	Unaudited												Audited
Operating expenses:
Research and development, net	$	17,198		$	14,536		$	9,319		$	7,253		$	31,462
Commercial activities		2,497			2,090			1,029			1,092			4,692
General and administrative		5,490			5,267			2,496			2,452			12,091
Operating loss		25,185			21,893			12,844			10,797			48,245
Finance expense		1,366			1,604			2,320			1,336			3,325
Finance income		(894	)		(14,052	)		(109	)		(18,169	)		(17,149	)
Loss before taxes on income		25,657			9,445			15,055			(6,036	)		34,421
Taxes on income (benefit)		-			100			-			74			(70	)
Net loss (income)		25,657			9,545			15,055			(5,962	)		34,351
Other comprehensive loss (income):
Items that will be reclassified subsequently to profit or loss:
Actuarial net loss of defined benefit plans		-			83			-			-			464
Changes in the fair value of available for sale financial assets		4			(42	)		-			(9	)		(47	)
Total comprehensive loss (income)	$	25,661		$	9,586		$	15,055		$	(5,971	)	$	34,768
Net loss (income) per share:
Basic loss (income) per share	$	0.69		$	0.38		$	0.37		$	(0.23	)	$	1.17
Diluted loss per share	$	0.69		$	0.87		$	0.37		$	0.44		$	1.69

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U.S. dollars in thousands (except share and per share data)

	Ordinary shares				Preferred shares				Share		Available- for-sale			Capital reserve due to actuarial			Accumulated			Total
	Number		Amount		Number		Amount		Premium		reserve			losses			deficit			equity
Balance as of January 1, 2020		33,670,926	$	92		-	$	-	$	238,992	$	4		$	(541	)	$	(203,564	)	$	34,983
Net loss		-		-		-		-		-		-			-			(25,657	)		(25,657	)
Other comprehensive loss		-		-		-		-		-		(4	)		-			-			(4	)
Total comprehensive loss		-		-		-		-		-		(4	)		-			(25,657	)		(25,661	)
Exercise of options		467,557		1		-		-		146		-			-			-			147
Issuance of ordinary shares in a secondary offering, net of issuance expenses of $1,000		15,333,334		44		-		-		63,816		-			-			-			63,860
Share-based compensation		-		-		-		-		1,221		-			-			-			1,221
Balance as of June 30, 2020 (unaudited)		49,471,817	$	137		-	$	-	$	304,175	$	-		$	(541	)	$	(229,221	)	$	74,550

	Ordinary shares				Preferred shares				Share		Available- for-sale			Capital reserve due to actuarial			Accumulated			Total
	Number		Amount		Number		Amount		Premium		reserve			losses			deficit			equity
Balance as of January 1, 2019		24,930,736	$	67		-	$	-	$	193,953	$	(43	)	$	(77	)	$	(169,213	)	$	24,687
Net loss		-		-		-		-		-		-			-			(9,545	)		(15,507	)
Other comprehensive (loss) income		-		-		-		-		-		42			(83	)		-			(50	)
Total comprehensive (loss) income		-		-		-		-		-		42			(83	)		(9,646	)		(15,557	)
Exercise of options		466,375		1						116											117
Exercise of warrants		209,312		1		-		-		2,923		-			-			-			2,924
Share-based compensation		-		-		-		-		2,410		-			-			-			2,410
Balance as of June 30, 2019 (unaudited)		25,606,423	$	69		-	$	-	$	199,042	$	(1	)	$	(160	)	$	(178,758	)	$	20,552

*) represents an amount lower than 1 USD

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U.S. dollars in thousands (except share and per share data)

	Ordinary shares				Preferred shares				Share		Available- for-sale		Capital reserve due to actuarial			Accumulated			Total
	Number		Amount		Number		Amount		premium		reserve		losses			deficit			equity
Balance as of April 1, 2020 (unaudited)		33,696,582	$	92		-	$	-	$	239,897	$	-	$	(541	)	$	(214,166	)	$	25,282
Net Loss		-		-		-		-		-		-		-			(15,055	)		(15,055	)
Other comprehensive loss		-		-		-		-		-		-		-			-			-
Total comprehensive loss		-		-		-		-		-		-		-			(15,055	)		(15,055	)
Exercise of options		441,901		1		-		-		140		-		-			-			141
Issuance of ordinary shares in a secondary offering, net of issuance expenses of $1,000		15,333,334		44		-		-		63,816		-		-			-			63,860
Share-based compensation		-		-		-		-		322		-		-			-			322
Balance as of June 30, 2020 (unaudited)		49,471,817	$	137		-	$	-	$	304,175	$	-	$	(541	)	$	(229,221	)	$	74,550

	Ordinary shares				Preferred shares				Share		Available- for-sale			Capital reserve due to actuarial			Accumulated			Total
	Number		Amount		Number		Amount		premium		reserve			losses			deficit			equity
Balance as of April 1, 2019 (unaudited)		25,140,048	$	68		-	$	-	$	197,967	$	(10	)	$	(160	)	$	(184,720	)	$	13,145
Net income		-		-		-		-		-		-			-			5,962			5,962
Other comprehensive income		-		-		-		-		-		9			-			-			9
Total comprehensive income		-		-		-		-		-		9			-			5,962			5,971
Exercise of options		466,375		1		-		-		116		-			-			-			117
Share-based compensation		-		-		-		-		1,319		-			-			-			1,319
Balance as of June 30, 2019 (unaudited)		25,606,423	$	69		-	$	-	$	199,402	$	(1	)	$	(160	)	$	(178,758	)	$	20,552

*) Represents an amount lower than 1 USD.

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U.S. dollars in thousands (except share and per share data)

	Ordinary shares				Preferred shares				Share		Available- for-sale			Capital reserve due to actuarial			Accumulated			Total
	Number		Amount		Number		Amount		premium		reserve			losses			deficit			equity
Balance as of January 1, 2019		24,930,736	$	67		-	$	-	$	193,953	$	(43	)	$	(77	)	$	(169,213	)	$	24,687
Net loss		-		-		-		-		-		-			-			(34,351	)		(34,351	)
Other comprehensive (loss) income		-		-		-		-		-		47			(464	)		-			(417	)
Total comprehensive (loss) income		-		-		-		-		-		47			(464	)		(34,351	)		(34,768	)
Issuance of ordinary shares in a secondary offering, net of issuance expenses of $694		8,050,000		23		-		-		37,117		-			-			-			37,140
Exercise of options		480,878		1		-		-		131		-			-			-			132
Exercise of warrants		209,312		1		-		-		2,923		-			-			-			2,924
Share-based compensation		-		-		-		-		4,868		-			-			-			4,868
Balance as of December 31, 2019		33,670,926	$	92		-	$	-	$	238,992	$	4		$	(541	)	$	(203,564	)	$	34,983

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2020			2019			2020			2019			2019
	Unaudited												Audited
Cash flows from operating activities:
Net (loss) income	$	(25,657	)	$	(9,545	)	$	(15,055	)	$	5,962		$	(34,351	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Adjustments to the profit or loss items:
Depreciation of property, equipment and right-of-use assets		1,106			1,245			556			703			2,143
Financial income, net		(260	)		(569	)		(128	)		(378	)		(775	)
Cost of share-based compensation		1,221			2,410			322			1,319			4,868
Change in employee benefit liabilities, net		-			8			-			(3	)		126
Amortization of premium on available-for-sale financial asses		4			101			-			51			184
Revaluation of financial derivatives		(670	)		(13,471	)		1,778			(17,378	)		(15,904	)
Revaluation of liability to IIA		1,315			1,199			593			631			2,531
		2,716			(9,077	)		3,121			(15,055	)		(6,827	)
Changes in asset and liability items:
Decrease (increase) in prepaid expenses, other current assets and other assets		(1,065	)		117			(607	)		(292	)		(150	)
Increase (decrease) in trade payables		1,574			244			(360	)		1,088			(821	)
Increase (decrease) in accrued expenses and other payables		(624	)		162			2,472			141			2,807
		(115	)		523			1,505			937			1,836
Cash received during the period for:
Interest received		357			830			9			309			1,546
Interest paid		(80	)		(51	)		(33	)		(23	)		(134	)
		277			779			(24	)		286			1,412
Net cash used in operating activities		(22,779	)		(17,320	)		(10,453	)		(7,870	)		(37,930	)
Cash flows from investing activities:
Purchase of property, plant and equipment		(7,109	)		(878	)		(4,990	)		(528	)		(3,055	)
Purchase of marketable securities		-			-			-			-			(32,021	)
Proceed from sale of marketable securities		13,551			15,740			-			1,847			-
Proceed from maturity of marketable securities		-			-			-			-			38,742
Net cash provided by (used in) investing activities	$	6,442		$	14,862		$	(4,990	)	$	1,319		$	3,666

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2020			2019			2020			2019			2019
	Unaudited
Cash flows from financing activities:
Receipt of grants from the IIA	$	200		$	167		$	147		$	167		$	224
Proceeds from secondary offering, net		63,860			(346	)		63,860			(108	)		37,140
Proceeds from issuance of shares, initial public offering (payment of issuance expenses), net														(238	)
Payment of lease liabilities		(1,122	)		(764	)		(335	)		(324	)		(1,529	)
Exercise of options		147			117			141			117			132
Net cash (used in) provided by financing activities		63,085			(826	)		63,813			(148	)		35,729
Exchange differences on balances of cash and cash equivalents		52			90			(24	)		28			101
Increase (decrease) in cash and cash equivalents		46,800			(3,194	)		48,346			(6,671	)		1,566
Cash and cash equivalents at beginning of period		41,838			40,272			40,292			43,749			40,272
Cash and cash equivalents at end of period	$	88,638		$	37,078		$	88,638		$	37,078		$	41,838
Supplemental disclosure of non-cash financing activities:
Significant non-cash transactions:
Exercise of warrants liabilities to equity	$	-		$	2,924		$	-		$	-		$	2,924
Increase in other assets on credit	$	-		$	(592	)	$	-		$	(592	)	$	-
Purchase of property, plant and equipment on credit	$	960		$	(400	)	$	960		$	(400	)	$	1,255

The accompanying notes are an integral part of the interim consolidated financial statements.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 1:- GENERAL

a. Gamida Cell Ltd. (the “Company”), founded in 1998, is an advanced cell therapy company committed to finding cures for patients with blood cancers and serious blood diseases and develops novel curative treatments using stem cells and natural killer (NK) cells.

b. The Company has created a novel NAM-based cell expansion platform that is designed to enhance the number and functionality of allogenic donor cells. This proprietary therapeutic platform may enable the development of therapies with the potential to improve treatment outcomes beyond what is possible with current donor-derived therapies.

The lead product candidate, omidubicel, is an advanced cell therapy in development as a potential life-saving treatment option for patients in need of a bone marrow transplant (BMT). In May 2020, the Company reported that omidubicel met its primary endpoint in an international, randomized, multi-center Phase 3 clinical study in 125 patients with high-risk hematologic malignancies undergoing bone marrow transplant and who had no available matched donor. The study evaluated the safety and efficacy of omidubicel compared to standard umbilical cord blood. BMT with a graft derived from bone marrow or peripheral blood cells of a matched donor is currently the standard of care treatment for many of these patients, but there is a significant unmet need for patients who cannot find a fully matched donor.

Omidubicel is the first bone marrow transplant product to receive Breakthrough Therapy Designation from the U.S. Food and Drug Administration and has received orphan drug designation in the U.S. and in Europe.

In addition to omidubicel, the Company is developing GDA-201, an investigational NK cell-based cancer immunotherapy to be used in combination with standard-of-care therapeutic antibodies. NK cells have potent anti-tumor properties and have the advantage over other oncology cell therapies of not requiring genetic matching, potentially enabling NK cells to serve as a universal donor-based therapy when combined with certain antibodies. GDA-201 is currently in an investigator-sponsored Phase 1/2 study for the treatment of relapsed or refractory non-Hodgkin lymphoma (NHL) and multiple myeloma (MM). In December 2019, the Company reported preliminary data at the Annual Meeting of the American Society of Hematology, or ASH, which was subsequently updated by means of an abstract published by The European Society for Blood Marrow Transplantation, or EBMT. The data from the first 25 patients demonstrated that GDA-201 was clinically active and generally well tolerated. Among the eleven patients with NHL, seven achieved a complete response and one achieved a partial response.

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 1:- GENERAL (Cont.)

c. The Company is devoting substantially all of its efforts toward research and development activities. In the course of such activities, the Company has sustained operating losses and expects such losses to continue in the foreseeable future. The Company’s accumulated deficit as of June 30, 2020 is $229,221 and negative cash flows from operating activities during the six month period ended June 30, 2020 is $22,779. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The interim consolidated financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would result if the Company was unable to continue as a going concern. The Company requires additional financing in order to continue to fund its current operations and pay existing and future liabilities.

d. On July 1, 2019, the Company closed a follow-on offering of its ordinary shares on the Nasdaq Global Market, which resulted in the sale of 7,000,000 ordinary shares at a public offering price of $5.00 per share, before underwriting discounts. The underwriters had a 30-day option to purchase up to 1,050,000 additional shares at a public offering price of $5.00 per share, and exercised in full their option to purchase such shares. The exercise of the underwriters’ option closed on July 8, 2019. The Company received net proceeds from the offering of $37,140 (net of issuance costs and underwriting discounts of $3,110).

e. On May 21, 2020, the Company closed a second follow-on offering of its ordinary shares on the Nasdaq Global Market, which resulted in the sale of 13,333,334 ordinary shares at a public offering price of $4.50 per share, before underwriting discounts. The underwriters had a 30-day option to purchase up to 2,000,000 additional shares at a public offering price of $4.50 per share, and exercised in full their option to purchase such shares. The exercise of the underwriters’ option closed on May 26, 2020. The Company received net proceeds from the offering of $63,860 (net of issuance costs and underwriting discounts of $5,140).

f. Definitions:

In these financial statements:

The Company	-	Gamida Cell Ltd. and its subsidiary
Subsidiary		Gamida Cell Inc. incorporated in 2000 and intended to focus on sales and marketing upon product approval.
Related parties	-	As defined in IAS 24
Dollar	-	U.S. dollar

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES

a. The accompanying unaudited interim consolidated financial statements as of June 30, 2020 and for the six and three months periods ended June 30. 2020 and 2019 have been prepared in accordance with IAS 34 “Interim Financial Reporting” for interim financial information.

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual consolidated financial statements as of December 31, 2019 and their accompanying disclosures.

The interim consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2020.

b. The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2019.

c. Leases:

Set out below, are the carrying amounts of the Company’s right-of-use assets and lease liabilities and the movements during the period:

	Right-of-use assets
	Offices and labs			Vehicles			Production Plant			Total			Lease liabilities
As of January 1, 2020	$	934		$	175		$	4,024		$	5,133		$	5,971
Depreciation expense		(607	)		(75	)		(261	)		(943	)		-
Interest expense		-			-			-			-			19
Additions		3,282			63			-			3,345			3,345
Disposals		-			(16	)		-			(16	)		(13	)
Adjustments for indexation		-			-			(29	)		(29	)		(29	)
Payments		-			-			-			-			(1,202	)
As of June 30, 2020 (unaudited)	$	3,609		$	147		$	3,734		$	7,490		$	8,091

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 3:- SHARE-BASED PAYMENT

The total compensation cost related to all of the Company’s equity-based awards, recognized during the presented periods was comprised as follows:

	Six months ended June 30,					Three months ended June 30,					Year ended December 31,
	2020			2019		2020			2019		2019
	Unaudited										Audited
Research and development	$	613		$	736	$	419		$	507	$	1,600
Commercial activities		(177	)		634		(355	)		434		879
General and administrative		785			1,040		258			378		2,389
	$	1,221		$	2,410	$	322		$	1,319	$	4,868

The Company estimates the fair value of stock options granted using the Binominal option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term.

Expected volatility was calculated based upon historical volatilities of similar entities in the related sector index. The expected term of the options granted is derived from output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends.

The following table lists the inputs to the Binomial option pricing model used for the fair value measurement of equity-settled share options for the following periods:

Based on the above inputs, the fair value of the options was determined at $2.65 - $11.01 at the grant dates during 2020 and 2019.

	June 30,				December 31,
	2020		2019		2019
	Unaudited
Dividend yield (%)		0		0		0
Expected volatility of the share prices (%)		76%		88%-95%		78%-84%
Risk-free interest rate (%)		0.6		2.52-2.7		1.92-2.63

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 3:- SHARE-BASED PAYMENT (Cont.)

Movement during the periods:

	Six months ended June 30,										Year ended December 31,
	2020					2019					2019
	Unaudited					Unaudited
	Number of options			Weighted average exercise price		Number of options			Weighted average exercise price		Number of options		Weighted average exercise price
				USD					USD				USD
Outstanding at beginning of period		3,405,188		$	4.76		3,197,616		$	3.07		3,197,616		3.07
Granted during the period		621,200			4.68		544,800			10.93		790,300		8.82
Expired during the period		(10,938	)		8.00		-			-		39,094		5.21
Exercised during the period		(467,557	)		0.31		(466,375	)		0.25		480,878		0.27
Forfeited during the period		(211,482	)		8.23		-			-		62,756		6.16
Share options outstanding at end of period		3,336,411			5.14		3,276,041			4.78		3,405,188		4.76
Share options exercisable at end of period		1,973,898		$	3.01		1,438,658		$	2.16		1,865,572		2.68

As of June 30, 2020, there is $3,185 of total unrecognized cost related to non-vested share based compensation that is expected to be recognized over a period of up to four years.

NOTE 4:- LIABILITIES PRESENTED AT FAIR VALUE

a. Warrants to purchase Company’s shares:

The Company measured the fair value of the warrants by using the Option Pricing Method utilized in a Black- Scholes simulation model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected time until liquidation. Expected volatility was calculated based upon historical volatilities of similar entities in the related sector index. The expected time until liquidation is the maximum contractual term of the warrants. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends.

	June 30,						December 31,
	2020			2019			2019
	Unaudited
Risk-free interest rate		0.2	%		1.71	%		1.7	%
Expected volatility		76	%		80	%		80	%
Expected life (in years)		2			3			2.5
Expected dividend yield		0			0			0

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GAMIDA CELL LTD. AND ITS SUBSIDIARY

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 4:- LIABILITIES PRESENTED AT FAIR VALUE (Cont.)

b. Changes in the fair value of warrants classified as Level 3 in the fair value hierarchy:

	Fair value of financial derivatives
Balance at January 1, 2020	$	5,221
Revaluation of financial derivatives		(670	)
Balance at June 30, 2020 (unaudited)	$	4,551

NOTE 5:- LOSS PER SHARE

a. Details of the number of shares and loss used in the computation of loss per share:

	Six months ended June 30, 2020				Three months ended June 30, 2020
	Unaudited				Unaudited
	Weighted Number of Shares		Loss Attributed to equity holders of the Company		Weighted Number of Shares		Loss Attributed to equity holders of the Company
For the computation of basic and diluted loss		37,141,582	$	25,477		49,589,719	$	14,875

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