Notable Labs (NTBLQ) 6-K 13 Aug 20 2020 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	Vascular Biogenics Ltd.
Entity Central Index Key	0001603207
Document Type	6-K
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Interim Statements of

Condensed Interim Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 16,702	$ 9,436
Short-term bank deposits	24,045	27,100
Short-term restricted bank deposits	153
Trade Receivables	118
Other current assets	1,703	1,242
TOTAL CURRENT ASSETS	42,721	37,778
NON-CURRENT ASSETS:
Restricted bank deposits	358	506
Property and equipment, net	6,455	6,949
Right-of-use assets	2,840	3,088
Long-term prepaid expenses	300	300
TOTAL NON-CURRENT ASSETS	9,953	10,843
TOTAL ASSETS	52,674	48,621
CURRENT LIABILITIES-
Accounts payable and accruals: Trade	2,241	3,330
Accounts payable and accruals: Other	3,247	4,238
Deferred revenue	533	386
Lease liabilities	641	774
TOTAL CURRENT LIABILITIES	6,662	8,728
NON-CURRENT LIABILITIES-
Severance pay obligations, net	163	163
Deferred revenue	1,283	1,723
Other non-current liability	82
Lease liabilities	1,946	2,167
TOTAL NON-CURRENT LIABILITIES	3,474	4,053
TOTAL LIABILITIES	10,136	12,781
SHAREHOLDERS' EQUITY:
Ordinary shares, NIS 0.01 par value; Authorized as of June 30, 2020 and December 31, 2019, 70,000,000 shares; issued and outstanding as of June 30, 2020 and December 31, 2019, 47,896,736 and 35,882,928 shares, respectively	108	73
Accumulated other comprehensive income	(8)	(8)
Additional paid in capital	251,331	235,974
Warrants	10,401	7,904
Accumulated deficit	(219,294)	(208,103)
TOTAL SHAREHOLDERS' EQUITY	42,538	35,840
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 52,674	$ 48,621

Condensed Interim Statements _2

Condensed Interim Statements of Financial Position (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of financial position [abstract]
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares authorized	70,000,000	70,000,000
Ordinary shares, shares issued	47,896,736	35,882,928
Ordinary shares, shares outstanding	47,896,736	35,882,928

Condensed Interim Statements _3

Condensed Interim Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Profit or loss [abstract]
REVENUES	$ 158	$ 138	$ 524	$ 357
COST OF REVENUES	(60)	(50)	(113)	(88)
GROSS PROFIT	98	88	411	269
RESEARCH AND DEVELOPMENT EXPENSES, net	4,865	3,729	9,616	7,037
GENERAL AND ADMINISTRATIVE EXPENSES	1,074	1,181	2,242	2,437
OPERATING LOSS	5,841	4,822	11,447	9,205
FINANCIAL INCOME	(37)	(223)	(329)	(499)
FINANCIAL EXPENSES	34	91	73	166
FINANCIAL INCOME, net	(3)	(132)	(256)	(333)
COMPREHENSIVE LOSS	$ 5,838	$ 4,690	$ 11,191	$ 8,872
LOSS PER ORDINARY SHARE
Basic and diluted	$ 0.14	$ 0.13	$ 0.28	$ 0.25
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING
Basic and diluted	42,674,526	35,881,128	39,354,355	35,881,128

Condensed Interim Statements _4

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					(8,872)	(8,872)
Share based payments to employees and non-employees services			1,264			1,264
Balance, ending at Jun. 30, 2019	$ 73	41	234,985	7,904	(197,518)	45,485
Balance, shares ending at Jun. 30, 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					35,882,928
Statement Line Items [Line Items]
Comprehensive loss					(11,191)	$ (11,191)
Share based payments to employees and non-employees services			917			917
Issuance of ordinary shares and warrants, net of issuance costs	$ 35		12,624	4,313		16,972
Issuance of ordinary shares and warrants, shares, net of issuance costs	12,013,808
Expired warrants			1,816	(1,816)
Balance, ending at Jun. 30, 2020	$ 108	$ (8)	$ 251,331	$ 10,401	$ (219,294)	$ 42,538
Balance, shares ending at Jun. 30, 2020	47,896,736					47,896,736

Condensed Interim Cash Flow Sta

Condensed Interim Cash Flow Statements (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss for the period	$ (11,191)	$ (8,872)
Adjustments required to reflect net cash used in operating activities (see Appendix A)	(1,575)	3,392
Interest received	257	281
Interest paid	(53)	(61)
Net cash used in operating activities	(12,562)	(5,260)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(20)	(53)
Investment in restricted bank deposits	(511)
Maturity of restricted bank deposits	500
Investment in short-term bank deposits	(24,000)	(36,500)
Maturity of short-term bank deposits	27,027	21,000
Net cash generated from (used in) investing activities	2,996	(15,553)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of ordinary shares and warrants, net	17,110
Principal elements of lease payments	(405)	(356)
Net cash generated from (used in) financing activities	16,705	(356)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,139	(21,169)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	9,436	29,347
EXCHANGE GAINS ON CASH AND CASH EQUIVALENTS	127	104
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	$ 16,702	$ 8,282

Condensed Interim Cash Flow S_2

Condensed Interim Cash Flow Statements (Unaudited) - Appendix - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Adjustments required to reflect net cash used in operating activities:
Depreciation	$ 827	$ 852
Interest income	(223)	(500)
Interest paid	53	61
Exchange losses (gains) on cash and cash equivalents	(127)	(104)
Exchange losses (gains) on lease liability	(14)	170
Net changes in severance pay obligations		5
Share based payments	917	1,264
Adjustments for reconcile profit loss excluding changes in working capital	1,433	1,748
Changes in working capital:
Increase in other current assets	(461)	(45)
Increase in trade receivables	(118)
Increase (decrease) in accounts payable and accruals:
Trade	(1,227)	905
Other (including non-current liability)	(909)	1,023
Decrease in deferred revenue	(293)	(239)
Changes in working capital, total	(3,008)	1,644
Adjustments required to reflect net cash used in operating activities, total	(1,575)	3,392
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 costs not paid	$ 138

General

General	6 Months Ended
	Jun. 30, 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 June 30, 2020, the Company had an accumulated deficit of $219.3 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 June 30, 2020, the Company had cash, cash equivalents, short-term bank deposits and restricted bank deposits of $41.3 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	6 Months Ended
	Jun. 30, 2020
Disclosure of associates [abstract]
Basis of Preparation	NOTE 2 - BASIS OF PREPARATION The Company’s condensed interim financial statements as of June 30, 2020 and for the six and three months period 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. In the opinion of management, all adjustments (of a normal recurring nature) considered necessary for a fair statement of the results for the interim periods presented have been included. The results of operations for the six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. 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)”.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2020 were $16.7 million, $24.0 million and $0.5 million. The short-term bank deposits as of June 30, 2020 were for terms of three to six months and carried interest at annual rates of 0.95%-1.49%.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2020
Disclosure of classes of share capital [abstract]
Shareholders' Equity	NOTE 6 - SHAREHOLDERS’ EQUITY a. On May 7, 2020 and May 11, 2020‎, the Company entered into securities purchase agreements with several institutional investors and existing shareholders‎ to purchase 11,492,065 of the Company's ‎ordinary shares at a purchase price of $1.575 per share in a registered direct offering. In a concurrent private placement, the Company issued to investors and existing shareholders in the offering unregistered warrants to purchase up to 11,492,065 ordinary shares. Each warrant is exercisable immediately upon issuance at an exercise price of $1.45 per share, and will remain exercisable for 18 months following issuance date. The offering raised a total of $18.1 million, with net proceeds of $16.4 million, after deducting fees and expenses. The closing of the sale of the ordinary shares and warrants occurred on May 11, 2020 and May 13, 2020. The fair value of the warrants is computed using the Black-Scholes option-pricing model. The underlying data used for computing the fair value of the warrants are mainly as follows: ordinary share price based on the current price of an ordinary share: $1.27-$1.63; expected volatility based on Company historical trade: 74%-76%; risk-free interest rate: 0.155%-0.165%; expected dividend: zero; and expected life to exercise of 1.5 years. The consideration was allocated between ordinary shares and warrants based on the ratio of the warrants’ fair value and the ordinary share price. On June 9, 2020, the Company registered the resale of 11,492,065 ordinary shares underlying the warrants. As of June 30, 2020, none of the warrants were exercised. b. During the six months ended June 30, 2020, the Company sold an aggregate of 521,743 ordinary shares under its at-the-market equity facility. The total consideration amounted to $549 thousand, net of issuance costs. c. 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 expired. d. 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	6 Months Ended
	Jun. 30, 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.

General (Details Narrative)

General (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Disclosure of reserves within equity [abstract]
Accumulated deficit	$ (219,294)	$ (208,103)
Cash and cash equivalents, short-term bank deposits and restricted bank deposits	$ 42,721	$ 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	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
ShorttermBankDepositsLineItems [Line Items]
Cash and cash equivalents	$ 16,702	$ 9,436	$ 8,282	$ 29,347
Short-term bank deposits	24,045	27,100
Restricted bank deposits	$ 358	$ 506
Bottom of Range [Member]
ShorttermBankDepositsLineItems [Line Items]
Bank deposits terms	3 months
Short term bank deposits annual interest rates	0.95%
Top of Range [Member]
ShorttermBankDepositsLineItems [Line Items]
Bank deposits terms	6 months
Short term bank deposits annual interest rates	1.49%

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Sep. 09, 2020	May 13, 2020	May 11, 2020	May 07, 2020	Jan. 06, 2020	Mar. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure of classes of share capital [line items]
Ordinary shares issued							47,896,736		35,882,928
Offering raised		$ 18,100	$ 18,100
Proceeds from offering, net of placement agent fees and offering costs		$ 16,400	$ 16,400				$ 17,110
2014 ESOP Plan [Member]
Disclosure of classes of share capital [line items]
Increase in ordinary shares available for issuance						1,976,441
Warrants [Member]
Disclosure of classes of share capital [line items]
Expected dividend							0.00%
Expected life to exercise							1 year 6 months
Resale of ordinary shares of warrant	11,492,065
Warrants [Member] | Bottom of Range [Member]
Disclosure of classes of share capital [line items]
Ordinary share							$ 1.27
Expected volatility							74.00%
Risk-free interest rate							0.155%
Warrants [Member] | Top of Range [Member]
Disclosure of classes of share capital [line items]
Ordinary share							$ 1.63
Expected volatility							76.00%
Risk-free interest rate							0.165%
Securities Purchase Agreements [Member] | Investors and Existing Shareholders [Member]
Disclosure of classes of share capital [line items]
Ordinary shares issued			11,492,065	11,492,065
Offering Price			$ 1.575	$ 1.575
Securities Purchase Agreements [Member] | Investors and Existing Shareholders [Member] | Warrants [Member]
Disclosure of classes of share capital [line items]
Warrants to purchase share of ordinary shares			11,492,065	11,492,065
Exercise price			$ 1.45	$ 1.45
Equity Distribution Agreement [Member]
Disclosure of classes of share capital [line items]
Ordinary shares issued							521,743
Proceeds from offering, net of placement agent fees and offering costs							$ 549
Registered Direct Offering [Member]
Disclosure of classes of share capital [line items]
Short-term warrants					2,952,381
Forfeited Warrants					$ 1,800