Notable Labs (NTBLQ) 6-K 16 Nov 20 2020 Q3 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2020
Cover [Abstract]
Entity Registrant Name	Vascular Biogenics Ltd.
Entity Central Index Key	0001603207
Document Type	6-K
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Condensed Interim Statements of

Condensed Interim Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 11,633	$ 9,436
Short-term bank deposits	25,169	27,100
Short-term restricted bank deposits	153
Trade Receivables	123
Other current assets	1,105	1,242
TOTAL CURRENT ASSETS	38,183	37,778
NON-CURRENT ASSETS:
Restricted bank deposits	358	506
Property and equipment, net	6,228	6,949
Right-of-use assets	2,846	3,088
Long-term prepaid expenses	257	300
TOTAL NON-CURRENT ASSETS	9,689	10,843
TOTAL ASSETS	47,872	48,621
CURRENT LIABILITIES-
Accounts payable and accruals: Trade	3,148	3,330
Accounts payable and accruals: Other	3,096	4,238
Deferred revenue	583	386
Lease liabilities	579	774
TOTAL CURRENT LIABILITIES	7,406	8,728
NON-CURRENT LIABILITIES-
Severance pay obligations, net	164	163
Deferred revenue	1,046	1,723
Other non-current liability	99
Lease liabilities	1,985	2,167
TOTAL NON-CURRENT LIABILITIES	3,294	4,053
TOTAL LIABILITIES	10,700	12,781
SHAREHOLDERS' EQUITY:
Ordinary shares, NIS 0.01 par value; Authorized as of September 30, 2020 and December 31, 2019, 150,000,000 and 70,000,000 shares, respectively; issued and outstanding as of September 30, 2020 and December 31, 2019, 47,896,936 and 35,882,928 shares, respectively	108	73
Accumulated other comprehensive income	(8)	(8)
Additional paid in capital	251,742	235,974
Warrants	10,401	7,904
Accumulated deficit	(225,071)	(208,103)
TOTAL SHAREHOLDERS' EQUITY	37,172	35,840
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 47,872	$ 48,621

Condensed Interim Statements _2

Condensed Interim Statements of Financial Position (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of financial position [abstract]
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares authorized	150,000,000	70,000,000
Ordinary shares, shares issued	47,896,936	35,882,928
Ordinary shares, shares outstanding	47,896,936	35,882,928

Condensed Interim Statements _3

Condensed Interim Statements of Net Loss and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Profit or loss [abstract]
Revenues	$ 193	$ 79	$ 717	$ 436
Cost of revenues	(75)	(30)	(188)	(118)
Gross profit	118	49	529	318
Research and development expenses, net	4,805	3,795	14,421	10,832
General and administrative expenses	1,106	1,232	3,348	3,669
Operating loss	5,793	4,978	17,240	14,183
Financial income	(53)	(223)	(382)	(722)
Financial expenses	37	101	110	267
Financial income, net	(16)	(122)	(272)	(455)
Net loss and comprehensive loss	$ 5,777	$ 4,856	$ 16,968	$ 13,728
Loss per ordinary share
Basic and diluted	$ 0.12	$ 0.14	$ 0.4	$ 0.38
Weighted average ordinary shares outstanding
Basic and diluted	47,896,747	35,881,128	42,222,603	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					(13,728)	(13,728)
Share based payments to employees and non-employees services			1,790			1,790
Balance, ending at Sep. 30, 2019	$ 73	41	235,511	7,904	(202,374)	41,155
Balance, shares ending at Sep. 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					(16,968)	$ (16,968)
Share based payments to employees and non-employees services			1,328			1,328
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	12,014,008
Expired warrants			1,816	(1,816)
Balance, ending at Sep. 30, 2020	$ 108	$ (8)	$ 251,742	$ 10,401	$ (225,071)	$ 37,172
Balance, shares ending at Sep. 30, 2020	47,896,936					47,896,936

Condensed Interim Cash Flow Sta

Condensed Interim Cash Flow Statements (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss for the period	$ (16,968)	$ (13,728)
Adjustments required to reflect net cash used in operating activities (see Appendix A)	554	4,151
Interest received	311	624
Interest paid	(79)	(95)
Net cash used in operating activities	(16,182)	(9,048)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(49)	(53)
Investment in restricted bank deposits	(511)	(500)
Maturity of restricted bank deposits	500
Investment in short-term bank deposits	(29,085)	(36,000)
Maturity of short-term bank deposits	31,027	39,000
Net cash generated from (used in) investing activities	1,882	2,447
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of ordinary shares and warrants, net	16,972
Principal elements of lease payments	(612)	(556)
Net cash generated from (used in) financing activities	16,360	(556)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,060	(7,157)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	9,436	29,347
EXCHANGE GAINS ON CASH AND CASH EQUIVALENTS	137	129
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	$ 11,633	$ 22,319

Condensed Interim Cash Flow S_2

Condensed Interim Cash Flow Statements (Unaudited) - Appendix - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Adjustments required to reflect net cash used in operating activities:
Depreciation	$ 1,242	$ 1,281
Interest income	(316)	(723)
Interest paid	79	95
Exchange losses (gains) on cash and cash equivalents	(137)	(129)
Exchange losses (gains) on lease liability	5	242
Net changes in severance pay obligations	1	7
Share based payments	1,328	1,790
Adjustments for reconcile profit loss excluding changes in working capital	2,202	2,563
Changes in working capital:
Decrease (increase) in other current assets	137	(475)
Increase in trade receivables	(123)
Decrease in long-term prepaid expenses	43
Increase (decrease) in accounts payable and accruals:
Trade	(182)	69
Other (including non-current liability)	(1,043)	2,312
Decrease in deferred revenue	(480)	(318)
Changes in working capital, total	(1,648)	1,588
Adjustments required to reflect net cash used in operating activities, total	554	4,151
Supplementary information on investing and financing activities not involving cash flows:
Right of use assets obtained in exchange for new lease liabilities	$ 230

General

General	9 Months Ended
	Sep. 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. VB-601 is the lead mAb candidate for various inflammatory indications, which is being advanced towards IND. 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 September 30, 2020, the Company had an accumulated deficit of $225.1 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 September 30, 2020, the Company had cash, cash equivalents, short-term bank deposits and restricted bank deposits of $37.3 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, debt financings, 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	9 Months Ended
	Sep. 30, 2020
Disclosure of associates [abstract]
Basis of Preparation	NOTE 2 - BASIS OF PREPARATION The Company’s condensed interim financial statements as of September 30, 2020 and for the nine 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 international financial reporting standards ("IFRS"). 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 nine months ended September 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 foreign exchange risk and price risk), credit and interest 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	9 Months Ended
	Sep. 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 September 30, 2020 were $11.7 million, $25.2 million and $0.5 million, respectively. The short-term bank deposits as of September 30, 2020 were for terms of six months and carried interest at annual rates of 0.69%-1.00%.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 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 September 30, 2020, none of the warrants were exercised. b. During the nine months ended September 30, 2020, the Company sold an aggregate of 521,943 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 expired. d. On July 29, 2020, the general meeting of the shareholders of the Company approved the increase of the authorized share capital of the Company by 80,000,000 ordinary shares to 150,000,000 ordinary shares, par value NIS 0.01 per share.

Revenue

Revenue	9 Months Ended
	Sep. 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	Sep. 30, 2020	Dec. 31, 2019
Disclosure of reserves within equity [abstract]
Accumulated deficit	$ (225,071)	$ (208,103)
Cash and cash equivalents, short-term bank deposits and restricted bank deposits	$ 38,183	$ 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	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
ShorttermBankDepositsLineItems [Line Items]
Cash and cash equivalents	$ 11,633	$ 9,436	$ 22,319	$ 29,347
Short-term bank deposits	25,169	27,100
Restricted bank deposits	$ 358	$ 506
Bank deposits terms	6 months
Bottom of Range [Member]
ShorttermBankDepositsLineItems [Line Items]
Short term bank deposits annual interest rates	0.69%
Top of Range [Member]
ShorttermBankDepositsLineItems [Line Items]
Short term bank deposits annual interest rates	1.00%

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 09, 2020	May 13, 2020	May 11, 2020	May 07, 2020	Jan. 06, 2020	Sep. 30, 2020	Sep. 30, 2019	Jul. 29, 2020	Dec. 31, 2019
Disclosure of classes of share capital [line items]
Ordinary shares issued						47,896,936			35,882,928
Offering raised		$ 18,100	$ 18,100
Proceeds from offering, net of placement agent fees and offering costs		$ 16,400	$ 16,400			$ 16,972
Ordinary shares, par value						$ 0.01			$ 0.01
Ordinary shares, shares authorized						150,000,000			70,000,000
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%
Shareholders [Member]
Disclosure of classes of share capital [line items]
Ordinary shares, shares authorized								80,000,000
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						521,943
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