Exhibit 99.2
BIONDVAX PHARMACEUTICALS LTD.
INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2016
NIS IN THOUSANDS
UNAUDITED
INDEX
Page | |
Condensed Interim Balance Sheets | 2 |
Condensed Interim Statements of Comprehensive Income | 3 |
Condensed Interim Statements of Changes in Shareholders'Equity | 4 – 7 |
Condensed Interim Statements of Cash Flows | 8 – 9 |
Notes to Condensed Interim Financial Statements | 10 |
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BIONDVAX PHARMACEUTICALS LTD.
BALANCE SHEETS
Convenience translation (Note 2) | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||
2015 | 2015 | 2016 | 2016 | |||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||
N I S | U.S. dollars | |||||||||||||||
(In thousands except share and per share data) | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | 33,470 | 37,955 | 15,084 | 3,922 | ||||||||||||
Marketable securities | 2,016 | 2,016 | 2,017 | 524 | ||||||||||||
Short term deposit | - | - | 11,503 | 2,991 | ||||||||||||
Other receivables | 1,442 | 763 | 3,188 | 829 | ||||||||||||
36,928 | 40,734 | 31,792 | 8,266 | |||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||
Marketable securities | 2,048 | 2,047 | 2,049 | 533 | ||||||||||||
Property, plant and equipment | 2,044 | 2,355 | 1,746 | 454 | ||||||||||||
Other long term assets | 287 | 286 | 490 | 127 | ||||||||||||
4,379 | 4,688 | 4,285 | 1,114 | |||||||||||||
41,307 | 45,422 | 36,077 | 9,380 | |||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Trade payables | 931 | 635 | 457 | 119 | ||||||||||||
Other payables | 768 | 828 | 697 | 181 | ||||||||||||
1,699 | 1,463 | 1,154 | 300 | |||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||
Options | 5,994 | 7,958 | 4,923 | 1,280 | ||||||||||||
Severance pay liability, net | 69 | 66 | 72 | 19 | ||||||||||||
6,063 | 8,024 | 4,995 | 1,299 | |||||||||||||
SHAREHOLDERS' EQUITY (DEFICIT): | ||||||||||||||||
Ordinary shares of NIS 0.0000001 par value: | ||||||||||||||||
Authorized: 391,000,000 shares as of June 30, 2016, 2015 (unaudited) and December 31, 2015; Issued and Outstanding: 135,097,367, shares as of June 30, 2016, 2015 (unaudited) and December 31, 2015. | -* | ) | -* | ) | -* | ) | -* | ) | ||||||||
Share premium | 110,679 | 109,934 | 111,458 | 28,980 | ||||||||||||
Options | 2,536 | 2,536 | 2,536 | 659 | ||||||||||||
Other comprehensive income | 12 | 14 | 7 | 2 | ||||||||||||
Accumulated deficit | (79,682 | ) | (76,549 | ) | (84,073 | ) | (21,860 | ) | ||||||||
33,545 | 35,935 | 29,928 | 7,782 | |||||||||||||
41,307 | 45,422 | 36,077 | 9,380 |
*) | Represents an amount lower than NIS 1. |
The accompanying notes are an integral part of the interim financial statements.
2 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF COMPREHENSIVE INCOME
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2015 | 2015 | 2016 | 2015 | 2016 | 2016 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development, net of participations | 7,906 | 2,613 | 1,479 | 3,785 | 3,541 | 921 | ||||||||||||||||||
Marketing, general and administrative | 3,397 | 600 | 999 | 1,250 | 1,770 | 460 | ||||||||||||||||||
Total operating expenses | 11,303 | 3,213 | 2,478 | 5,035 | 5,311 | 1,381 | ||||||||||||||||||
Operating loss | 11,303 | 3,213 | 2,478 | 5,035 | 5,311 | 1,381 | ||||||||||||||||||
Financial income | 1,128 | 3 | 252 | 8 | 49 | 13 | ||||||||||||||||||
Financial expense | (24 | ) | (865 | ) | (6 | ) | (912 | ) | (200 | ) | (52 | ) | ||||||||||||
Financial income (expenses) due to issuance of options | - | (1,127 | ) | (383 | ) | (1,127 | ) | 1,071 | 278 | |||||||||||||||
Total finance (expense) income, net | 1,104 | (1,989 | ) | (137 | ) | (2,031 | ) | 920 | 239 | |||||||||||||||
Net loss | 10,199 | 5,202 | 2,615 | 7,066 | 4,391 | 1,142 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Items to be reclassified to profit or loss in subsequent periods: | ||||||||||||||||||||||||
Gain (loss) from available-for-sale financial assets | (5 | ) | (2 | ) | (4 | ) | (3 | ) | (5 | ) | 1 | |||||||||||||
Total comprehensive loss | (10,204 | ) | (5,204 | ) | (2,621 | ) | (7,069 | ) | (4,396 | ) | (1,143 | ) | ||||||||||||
Basic and Diluted net loss per share (NIS) | (0.10 | ) | (0.05 | ) | (0.02 | ) | (0.09 | ) | (0.03 | ) | (0.008 | ) | ||||||||||||
Weighted average number of shares outstanding used to compute basic and diluted loss per share | 105,522,642 | 96,284,034 | 135,097,367 | 75,290,700 | 135,097,367 | 135,097,367 |
The accompanying notes are an integral part of the interim financial statements.
3 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Share capital | Share premium | Options | Unrealized gain on available-for- sale financial assets | Accumulated deficit | Total equity | |||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
NIS in thousands | ||||||||||||||||||||||||
Balance as of January 1, 2016 | -* | ) | 110,679 | 2,536 | 12 | (79,682 | ) | 33,545 | ||||||||||||||||
Loss | - | - | - | - | (4,391 | ) | (4,391 | ) | ||||||||||||||||
Other comprehensive loss | - | - | - | (5 | ) | - | (5 | ) | ||||||||||||||||
Total comprehensive loss | - | - | - | (5 | ) | (4,391 | ) | (4,396 | ) | |||||||||||||||
Share-based compensation | - | 779 | - | - | - | 779 | ||||||||||||||||||
Balance as of June 30, 2016 (unaudited) | -* | ) | 111,458 | 2,536 | 7 | (84,073 | ) | 29,928 | ||||||||||||||||
Balance as of June 30, 2016 (convenience translation into U.S dollars – see note 2 | -* | ) | 28,980 | 659 | 2 | (21,860 | ) | 7,782 |
Share capital | Share premium | Options | Unrealized gain on available-for- sale financial assets | Accumulated deficit | Total equity | |||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
NIS in thousands | ||||||||||||||||||||||||
Balance as of January 1, 2015 | -* | ) | 83,517 | 2,536 | 17 | (69,483 | ) | 16,587 | ||||||||||||||||
Loss | - | - | - | - | (7,066 | ) | (7,066 | ) | ||||||||||||||||
Other comprehensive loss | - | - | - | (3 | ) | - | (3 | ) | ||||||||||||||||
Total comprehensive loss | - | - | - | (3 | ) | (7,066 | ) | (7,069 | ) | |||||||||||||||
Issuance of shares, net | - | 26,417 | - | - | - | 26,417 | ||||||||||||||||||
Balance as of June 30, 2015 (unaudited) | -* | ) | 109,934 | 2,536 | 14 | (76,549 | ) | 35,935 | ||||||||||||||||
Balance as of June 30, 2015 (convenience translation into U.S dollars – see note 2 | -* | ) | 29,168 | 673 | 4 | (20,310 | ) | 9,535 |
*) | Represents an amount lower than NIS 1. |
4 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Share capital | Share premium | Options | Unrealized gain on available-for- sale financial assets | Accumulated deficit | Total equity | |||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
NIS in thousands | ||||||||||||||||||||||||
Balance as of April 1, 2016 | -* | ) | 111,083 | 2,536 | 14 | (81,458 | ) | 32,175 | ||||||||||||||||
Loss | - | - | - | (2,615 | ) | (2,615 | ) | |||||||||||||||||
Other comprehensive loss | - | - | (7 | ) | - | (7 | ) | |||||||||||||||||
Total comprehensive loss | - | - | (7 | ) | (2,615 | ) | (2,622 | ) | ||||||||||||||||
Share-based compensation | - | 375 | - | - | - | 375 | ||||||||||||||||||
Balance as of June 30, 2016 | -* | ) | 111,458 | 2,536 | 7 | (84,073 | ) | 29,928 |
The accompanying notes are an integral part of the interim financial statements.
5 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Share capital | Share premium | Options | Unrealized gain on available-for- sale financial assets | Accumulated deficit | Total equity | |||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
NIS in thousands | ||||||||||||||||||||||||
Balance as of April 1, 2015 | -* | ) | 83,467 | 2,536 | 16 | (71,347 | ) | 14,672 | ||||||||||||||||
Loss | - | - | - | - | (5,202 | ) | (5,202 | ) | ||||||||||||||||
Other comprehensive loss | - | - | - | (2 | ) | - | (2 | ) | ||||||||||||||||
Total comprehensive loss | - | - | - | (2 | ) | (5,202 | ) | (5,204 | ) | |||||||||||||||
Issuance of shares | - | 26,417 | - | - | - | 26,417 | ||||||||||||||||||
Share-based compensation | - | 50 | - | - | - | 50 | ||||||||||||||||||
Balance as of June 30, 2015 | -* | ) | 109,934 | 2,536 | 14 | (76,549 | ) | 35,935 |
*) | Represents an amount lower than NIS 1. |
The accompanying notes are an integral part of the interim financial statements.
6 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Share capital | Share premium | Warrants | Unrealized gain (loss) on available-for- sale financial assets | Accumulated deficit | Total Equity | |||||||||||||||||||
NIS | ||||||||||||||||||||||||
Balance as of January 1, 2015 | - | 83,517 | 2,536 | 17 | (69,483 | ) | 16,587 | |||||||||||||||||
Loss | - | - | - | - | (10,199 | ) | (10,199 | ) | ||||||||||||||||
Other comprehensive loss | - | - | - | (5 | ) | - | (5 | ) | ||||||||||||||||
Total comprehensive loss | - | - | - | (5 | ) | (10,199 | ) | (10,204 | ) | |||||||||||||||
Issue of shares, net | -* | ) | 26,417 | - | - | - | 26,417 | |||||||||||||||||
Share-based compensation | - | 745 | - | - | - | 745 | ||||||||||||||||||
Balance as of December 31, 2015 | -* | ) | 110,679 | 2,536 | 12 | (79,682 | ) | 33,545 | ||||||||||||||||
(convenience translation into U.S. dollars (see Note 2c) | -* | ) | 28,365 | 650 | 3 | (20,421 | ) | 8,597 |
*) | Represents an amount lower than NIS 1. |
The accompanying notes are an integral part of the interim financial statements.
7 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CASH FLOWS
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2015 | 2015 | 2016 | 2015 | 2016 | 2016 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | (10,199 | ) | (5,202 | ) | (2,617 | ) | (7,066 | ) | (4,391 | ) | (1,142 | ) | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
Adjustments to profit and loss items: | ||||||||||||||||||||||||
Depreciation and amortization | 628 | 155 | 157 | 313 | 313 | 81 | ||||||||||||||||||
Net financing expenses (income) | (1,104 | ) | 1,989 | 139 | 2,031 | (920 | ) | (241 | ) | |||||||||||||||
Share-based compensation | 745 | 50 | 375 | - | 779 | 203 | ||||||||||||||||||
Change in employee benefit liabilities, net | 7 | 2 | 1 | 4 | 3 | 1 | ||||||||||||||||||
276 | 2,196 | 672 | 2,348 | 175 | 44 | |||||||||||||||||||
Changes in asset and liability items: | ||||||||||||||||||||||||
Decrease (increase) in other receivables | (744 | ) | 426 | (1,115 | ) | 366 | (1,749 | ) | (512 | ) | ||||||||||||||
Increase (decrease) in trade payables | 415 | (139 | ) | (389 | ) | 111 | (471 | ) | (122 | ) | ||||||||||||||
Increase (decrease) in other payables | 10 | (32 | ) | (38 | ) | (461 | ) | (71 | ) | (18 | ) | |||||||||||||
(339 | ) | 255 | (1,542 | ) | 16 | (2,291 | ) | (652 | ) | |||||||||||||||
Cash paid and received during the year for: | ||||||||||||||||||||||||
Interest paid | (23 | ) | (5 | ) | (6 | ) | (14 | ) | (15 | ) | (4 | ) | ||||||||||||
Interest received | 18 | 3 | 19 | 8 | 46 | 12 | ||||||||||||||||||
(5 | ) | (2 | ) | 13 | (6 | ) | 31 | 8 | ||||||||||||||||
Net cash flows used in operating activities | (10,267 | ) | (2,753 | ) | (3,474 | ) | (4,708 | ) | (6,476 | ) | (1,742 | ) |
The accompanying notes are an integral part of the interim financial statements.
8 |
BIONDVAX PHARMACEUTICALS LTD.
STATEMENTS OF CASH FLOWS
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2015 | 2015 | 2016 | 2015 | 2016 | 2016 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Purchase of property and equipment | (34 | ) | (30 | ) | - | (30 | ) | (15 | ) | (4 | ) | |||||||||||||
Increase in short term deposit | - | (8 | ) | (11,503 | ) | (8 | ) | (11,503 | ) | (2,991 | ) | |||||||||||||
Increase in other long term assets | (9 | ) | - | 20 | - | (200 | ) | 4 | ||||||||||||||||
Net cash provided by (used in) investing activities | (43 | ) | (38 | ) | (11,485 | ) | (38 | ) | (11,718 | ) | (2,992 | ) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Proceeds from issuance of shares and options | 27,323 | 27,461 | - | 27,323 | - | - | ||||||||||||||||||
Proceeds from exercise of options | - | - | - | - | - | - | ||||||||||||||||||
Issuance of options to public | 6,430 | 6,465 | - | 6,430 | - | - | ||||||||||||||||||
Net cash provided by financing activities | 33,753 | 33,926 | - | 33,753 | - | - | ||||||||||||||||||
Exchange differences on balances of cash and cash equivalents | 415 | (577 | ) | 236 | (664 | ) | (192 | ) | (47 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 23,858 | 30,558 | (14,723 | ) | 28,343 | (18,386 | ) | (4,781 | ) | |||||||||||||||
Balance of cash and cash equivalents at the beginning of the period | 9,612 | 7,397 | 29,817 | 9,612 | 33,470 | 8,703 | ||||||||||||||||||
Balance of cash and cash equivalents at the end of the period | 33,470 | 37,955 | 15,094 | 37,955 | 15,084 | 3,922 |
The accompanying notes are an integral part of the interim financial statements.
9 |
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands (except share and per share data)
NOTE 1: | GENERAL |
a. | BiondVax Pharmaceuticals Ltd. ("the Company") is focused on developing and ultimately, commercializing immunomodulation therapies for infectious diseases. The Company was incorporated on July 21, 2003 and started its activity on March 31, 2005. |
b. | On June 7, 2007, the Company issued ordinary shares and options on the TASE. |
c. | In the Six months ended June 30, 2016, the Company incurred a loss of NIS 4,396 ($ 1,143) and negative cash flows from operating activities of NIS 6,701 ($ 1,742) and it has an accumulated deficit of NIS 84,073 ($ 21,860) as of that date. |
d. | On May 15, 2015, the Company completed a public offering of securities in the United States. The Company allocated 1,910,000 ADSs and warrants to purchase up to an aggregate of 2,038,000 ADSs. The immediate gross consideration for the offering amounted to a total of NIS 36,607 ($ 9,382). The offering expenses amounted to a total of NIS 5,576. On June 24, 2015, the Company issued an additional 110,000 ADS to the underwriters in consideration of a total gross amount of NIS 2,069 (USD 530). Issuance expenses amounted to NIS 134. |
NOTE 2:- | CONVENIENCE TRANSLATION INTO U.S. DOLLARS |
The financial statements as of June 30, 2016 and for the three months then ended have been translated into dollars using the representative exchange rate as of that date ($ 1 = NIS 3.846). The translation was made solely for the convenience of the reader.
The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in dollars or convertible into dollars, unless otherwise indicated in these statements.
NOTE 3: | SIGNIFICANT ACCOUNTING POLICIES |
Basis of preparation of the interim 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".
The significant accounting policies and methods of computation adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Company's annual financial statements.
NOTE 4: | SIGNIFICANT EVENTS DURING THE REPORTING PERIOD |
On April 10, 2016, the Audit Committee and the Board of Directors unanimously resolved to approve the payment of NIS 200, to be increased by an additional amount of up to NIS 200 as needed, for the benefit of the Company's CEO, for the purpose of placing the bond required in connection with an investigation conducted by the Israeli Securities Authority ("ISA"), regarding certain shareholders of the Company (not including among them the Company's CEO) alleged use of inside information.
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