Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | Vascular Biogenics Ltd. |
Entity Central Index Key | 0001603207 |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2020 |
Condensed Interim Statements of
Condensed Interim Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 12,935 | $ 9,436 |
Short-term bank deposits | 18,139 | 27,100 |
Trade Receivables | 230 | |
Other current assets | 1,248 | 1,242 |
TOTAL CURRENT ASSETS | 32,552 | 37,778 |
NON-CURRENT ASSETS: | ||
Restricted bank deposits | 508 | 506 |
Property and equipment, net | 6,701 | 6,949 |
Right-of-use assets | 2,994 | 3,088 |
Long-term prepaid expenses | 300 | 300 |
TOTAL NON-CURRENT ASSETS | 10,503 | 10,843 |
TOTAL ASSETS | 43,055 | 48,621 |
CURRENT LIABILITIES- | ||
Accounts payable and accruals: Trade | 2,292 | 3,330 |
Accounts payable and accruals: Other | 4,423 | 4,238 |
Deferred revenue | 451 | 386 |
Lease liabilities | 747 | 774 |
TOTAL CURRENT LIABILITIES | 7,913 | 8,728 |
NON-CURRENT LIABILITIES- | ||
Severance pay obligations, net | 158 | 163 |
Deferred revenue | 1,521 | 1,723 |
Other non-current liability | 62 | |
Lease liabilities | 1,965 | 2,167 |
TOTAL NON-CURRENT LIABILITIES | 3,706 | 4,053 |
TOTAL LIABILITIES | 11,619 | 12,781 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares | 75 | 73 |
Accumulated other comprehensive income | (8) | (8) |
Additional paid in capital | 238,737 | 235,974 |
Warrants | 6,088 | 7,904 |
Accumulated deficit | (213,456) | (208,103) |
TOTAL SHAREHOLDERS' EQUITY | 31,436 | 35,840 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 43,055 | $ 48,621 |
Condensed Interim Statements _2
Condensed Interim Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Profit or loss [abstract] | ||
REVENUES | $ 366 | $ 219 |
COST OF REVENUES | (53) | (38) |
GROSS PROFIT | 313 | 181 |
RESEARCH AND DEVELOPMENT EXPENSES, net | 4,751 | 3,308 |
GENERAL AND ADMINISTRATIVE EXPENSES | 1,168 | 1,256 |
OPERATING LOSS | 5,606 | 4,383 |
FINANCIAL INCOME | (292) | (276) |
FINANCIAL EXPENSES | 39 | 75 |
FINANCIAL INCOME, net | (253) | (201) |
COMPREHENSIVE LOSS | $ 5,353 | $ 4,182 |
LOSS PER ORDINARY SHARE | ||
Basic and diluted | $ 0.15 | $ 0.12 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING- | ||
Basic and diluted | 36,103,500 | 35,881,128 |
Condensed Interim Statements _3
Condensed Interim Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Ordinary Shares [Member] | Accumulated Other Comprehensive Income [Member] | Additional Paid in Capital [Member] | Warrants [Member] | Accumulated Deficit [Member] | Total |
Balance, beginning at Dec. 31, 2018 | $ 73 | $ 41 | $ 233,721 | $ 7,904 | $ (188,646) | $ 53,093 |
Balance, shares beginning at Dec. 31, 2018 | 35,881,128 | |||||
Statement Line Items [Line Items] | ||||||
Comprehensive loss | (4,182) | (4,182) | ||||
Share based payments to employees and non-employees services | 678 | 678 | ||||
Balance, ending at Mar. 31, 2019 | $ 73 | 41 | 234,399 | 7,904 | (192,828) | 49,589 |
Balance, shares ending at Mar. 31, 2019 | 35,881,128 | |||||
Balance, beginning at Dec. 31, 2019 | $ 73 | (8) | 235,974 | 7,904 | (208,103) | 35,840 |
Balance, shares beginning at Dec. 31, 2019 | 35,882,928 | |||||
Statement Line Items [Line Items] | ||||||
Comprehensive loss | (5,353) | (5,353) | ||||
Issuance of ordinary shares, net of issuance costs | $ 2 | 495 | 497 | |||
Issuance of ordinary shares, shares, net of issuance costs | 483,930 | |||||
Expired warrants | 1,816 | (1,816) | ||||
Share based payments to employees and non-employees services | 452 | 452 | ||||
Balance, ending at Mar. 31, 2020 | $ 75 | $ (8) | $ 238,737 | $ 6,088 | $ (213,456) | $ 31,436 |
Balance, shares ending at Mar. 31, 2020 | 36,366,858 |
Condensed Interim Cash Flow Sta
Condensed Interim Cash Flow Statements (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Loss for the period | $ (5,353) | $ (4,182) |
Adjustments required to reflect net cash used in operating activities (see Appendix A) | (552) | 1,240 |
Interest received | 95 | |
Interest paid | (27) | (7) |
Net cash used in operating activities | (5,837) | (2,949) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (11) | (39) |
Investment in short-term bank deposits | (4,000) | (18,000) |
Maturity of short-term bank deposits | 13,000 | |
Net cash generated from (used in) investing activities | 8,989 | (18,039) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of ordinary shares | 456 | |
Principal elements of lease payments | (204) | (177) |
Net cash generated from (used in) financing activities | 252 | (177) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,404 | (21,165) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 9,436 | 29,347 |
EXCHANGE GAINS ON CASH AND CASH EQUIVALENTS | 95 | 73 |
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | $ 12,935 | $ 8,255 |
Condensed Interim Cash Flow S_2
Condensed Interim Cash Flow Statements (Unaudited) - Appendix - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Adjustments required to reflect net cash used in operating activities: | ||
Depreciation | $ 418 | $ 432 |
Interest income | (136) | (272) |
Interest paid | 27 | 7 |
Exchange losses (gains) on cash and cash equivalents | (95) | (73) |
Exchange losses (gains) on lease liability | (90) | 125 |
Net changes in severance pay obligations | (5) | 3 |
Share based payments | 452 | 678 |
Adjustments for reconcile profit loss excluding changes in working capital | 571 | 900 |
Changes in working capital: | ||
Decrease (increase) in other current assets | 35 | (164) |
Increase in trade receivables | (230) | |
Increase (decrease) in accounts payable and accruals: | ||
Trade | (1,038) | 23 |
Other (including non-current liability) | 247 | 582 |
Decrease in deferred revenue | (137) | (101) |
Changes in working capital, total | (1,123) | 340 |
Adjustments required to reflect net cash used in operating activities, total | (552) | 1,240 |
Supplementary information on investing and financing activities not involving cash flows: | ||
Right of use assets obtained in exchange for new lease liabilities | 65 | |
Issuance of ordinary shares | $ 41 |
General
General | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of reserves within equity [abstract] | |
General | NOTE 1 - GENERAL Vascular Biogenics Ltd. (the “Company” or VBL) was incorporated on January 27, 2000. The Company is a late-stage clinical biopharmaceutical company focused on the discovery, development and commercialization of first-in-class treatments for cancer and immune/inflammatory indications. VB-111 (ofranergene obadenovec), a Phase 3 drug candidate, is the lead product candidate in the Company’s cancer program. VB-600 series are preclinical stage antibodies targeting MOSPD2 for inflammatory and oncology indications, which are being advanced towards IND. VB-601 is the lead mAb candidate for various inflammatory indications and VB-611 is the lead bi-specific mAb for various solid tumors. VB-201, a Phase 2-ready drug candidate, is the Company’s lead Lecinoxoid-based product candidate for chronic immune-related indications. The Company is engaged in an exclusive license agreement with NanoCarrier Co., Ltd. for the development, commercialization, and supply of ofranergene obadenovec (“VB-111”) in Japan for all indications. In March 2019, the Company entered into an exclusive option license agreement with an animal health company for the development of VB-201 for veterinary use, see note 7. On March 26, 2020, the Company announced positive outcome of the first interim analysis in the OVAL Phase 3 Ovarian Cancer Pivotal Study. Since its inception, the Company has incurred significant losses, and it expects to continue to incur significant expenses and losses for at least the next several years. As of March 31, 2020, the Company had an accumulated deficit of $213.5 million. The Company’s losses may fluctuate significantly from quarter to quarter and year to year, depending on the timing of its clinical trials, the receipt of payments under any future collaboration agreements it may enter into, and its expenditures on other research and development activities. As of March 31, 2020, the Company had cash, cash equivalents, short-term bank deposits and restricted bank deposits of $31.6 million. The Company may seek to raise more capital to pursue additional activities. The Company may seek these funds through a combination of private and public equity offerings, government grants, strategic collaborations and licensing arrangements. Additional financing may not be available when the Company needs it or may not be available on terms that are favorable to the Company. |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of associates [abstract] | |
Basis of Preparation | NOTE 2 - BASIS OF PREPARATION The Company’s condensed interim financial statements as of March 31, 2020 and for the three months then ended (the “condensed interim financial statements”) have been prepared in accordance with International Accounting Standard No. 34, “Interim Financial Reporting” (“IAS 34”). These condensed interim financial statements, which are unaudited, do not include all disclosures necessary for a complete presentation of the Company’s financial position, results of operations, and cash flows, in conformity with generally accepted accounting principles. The condensed interim financial statements should be read in conjunction with the Company’s annual financial statements as of December 31, 2019 and for the year then ended, along with the accompanying notes, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB).” The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Significant Accounting Policies | NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES The accounting policies and calculation methods applied in the preparation of the interim financial statements are consistent with those applied in the preparation of the annual financial statements as of December 31, 2019 and for the year then ended. |
Financial Risk Management and F
Financial Risk Management and Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Financial Risk Management and Financial Instruments | NOTE 4 - FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; therefore, they should be read in conjunction with the Company’s annual financial statements as of December 31, 2019. There have been no significant changes in the risk management policies since the year end. |
Cash and Cash Equivalents, Shor
Cash and Cash Equivalents, Short-Term Bank Deposits and Restricted Bank Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and Cash Equivalents, Short-Term Bank Deposits and Restricted Bank Deposits | NOTE 5 - CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND RESTRICTED BANK DEPOSITS Cash and cash equivalents, short-term bank deposits and restricted bank deposits as of March 31, 2020 were $12.9 million, $18.2 million and $0.5 million. The short-term bank deposits as of March 31, 2020 were for terms of three to twelve months and carried interest at annual rates of 1.49%-2.15%. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Shareholders' Equity | NOTE 6 - SHAREHOLDERS’ EQUITY a. During the three months ended March 31, 2020, the Company sold an aggregate of 483,930 ordinary shares under its at-the-market equity facility. The total consideration amounted to $497 thousand, net of issuance costs. b. On January 6, 2020, 2,952,381 short-term warrants related to June 25, 2018 registered direct offering with a value of $1.8 million were expired. c. In March 2020, the board of directors ratified the increase of the free pool available for the issuance under the 2014 ESOP plan to 1,976,441 ordinary shares. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [abstract] | |
Revenue | NOTE 7 - REVENUE The revenues recognized for the period comprise revenues from the exclusive license agreement for the development, commercialization, and supply of VB-111 in Japan for all indications and from the option to license agreement for the development of VB-201 for animal healthcare worldwide. The revenues are recognized according to IFRS 15 “Revenue from contract with customers.” Under IFRS 15, the consideration that the Company would be entitled to upon the achievement of contractual milestones, which are contingent upon the occurrence of future events of development progress, are a form of variable consideration. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Events | NOTE 8 - SUBSEQUENT EVENTS On May 7, 2020 and on May 11, 2020, the Company entered into Securities Purchase Agreements with several institutional investors and existing shareholders, pursuant to which the Company agreed to issue and sell, in a registered direct offering, an aggregate of 11,492,065 ordinary shares together with accompanying warrants to purchase an aggregate of 11,492,065 ordinary shares at a combined offering price of $1.575 per share and accompanying warrant. The net proceeds from these offerings, which closed on May 11, 2020 and on May 13, 2020, respectively were approximately $16.7 million after deducting the placement agent fees and commissions and offering expenses payable by the Company. |
General (Details Narrative)
General (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure of reserves within equity [abstract] | ||
Accumulated deficit | $ (213,456) | $ (208,103) |
Cash and cash equivalents, short-term bank deposits and restricted bank deposits | $ 32,552 | $ 37,778 |
Cash and Cash Equivalents, Sh_2
Cash and Cash Equivalents, Short-Term Bank Deposits and Restricted Bank Deposits (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
ShorttermBankDepositsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 12,935 | $ 9,436 | $ 8,255 | $ 29,347 |
Short-term bank deposits | 18,139 | 27,100 | ||
Restricted bank deposits | $ 508 | $ 506 | ||
Bottom of Range [Member] | ||||
ShorttermBankDepositsLineItems [Line Items] | ||||
Bank deposits terms | 3 months | |||
Short term bank deposits annual interest rates | 1.49% | |||
Top of Range [Member] | ||||
ShorttermBankDepositsLineItems [Line Items] | ||||
Bank deposits terms | 12 months | |||
Short term bank deposits annual interest rates | 2.15% |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands | Jan. 06, 2020 | Mar. 31, 2020 | Mar. 31, 2020 |
2014 ESOP Plan [Member] | |||
Disclosure of classes of share capital [line items] | |||
Increase in ordinary shares available for issuance | 1,976,441 | ||
Equity Distribution Agreement [Member] | |||
Disclosure of classes of share capital [line items] | |||
Ordinary shares issued | 483,930 | 483,930 | |
Proceeds from offering, net of placement agent fees and offering costs | $ 497 | ||
Registered Direct Offering [Member] | |||
Disclosure of classes of share capital [line items] | |||
Short-term warrants | 2,952,381 | ||
Forfeited Warrants | $ 1,800 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 11, 2020 | May 07, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Statement Line Items [Line Items] | ||||
Net proceeds from offering after deducting the placement agent fees and commissions and offering costs | $ 456 | |||
Events occurring after reporting date [Member] | Securities Purchase Agreement [Member] | ||||
Statement Line Items [Line Items] | ||||
Number of ordinary shares issued | 11,492,065 | 11,492,065 | ||
Warrants to purchase share of ordinary shares | 11,492,065 | 11,492,065 | ||
Offering price per share | $ 1.575 | $ 1.575 | ||
Net proceeds from offering after deducting the placement agent fees and commissions and offering costs | $ 16,700 | $ 16,700 |