Exhibit 99.1
BIONDVAX PHARMACEUTICALS LTD.
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2020
NIS IN THOUSANDS
UNAUDITED
INDEX
- - - - - - - - - - -
F-1
CONDENSED INTERIM BALANCE SHEETS
In thousands, except share and per share data
Convenience | ||||||||||||||||
Translation | ||||||||||||||||
(Note 2c) | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||
2019 | 2019 | 2020 | 2020 | |||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||
N I S | U.S. dollars | |||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | 72,467 | 33,916 | 38,752 | 11,181 | ||||||||||||
Other receivables | 656 | 1,258 | 2,467 | 712 | ||||||||||||
73,123 | 35,174 | 41,219 | 11,893 | |||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||
Property, plant and equipment | 34,981 | 32,475 | 36,937 | 10,658 | ||||||||||||
Right-of-use assets | 7,136 | 7,610 | 6,662 | 1,922 | ||||||||||||
Other long-term assets | 510 | 510 | 891 | 257 | ||||||||||||
42,627 | 40,595 | 44,490 | 12,837 | |||||||||||||
115,750 | 75,769 | 85,709 | 24,730 |
The accompanying notes are an integral part of the condensed interim financial statements.
F-2
BIONDVAX PHARMACEUTICALS LTD.
CONDENSED INTERIM BALANCE SHEETS
In thousands, except share and per share data
Convenience | ||||||||||||||||
Translation | ||||||||||||||||
(Note 2c) | ||||||||||||||||
December 31, | June 30, | June 31, | ||||||||||||||
2019 | 2019 | 2020 | 2020 | |||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||
N I S | U.S. dollars | |||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Trade payables | 17,062 | 7,977 | 4,070 | 1,175 | ||||||||||||
Operating lease liabilities | 694 | 686 | 676 | 195 | ||||||||||||
Other payables | 1,203 | 1,348 | 1,609 | 465 | ||||||||||||
18,959 | 10,011 | 6,355 | 1,835 | |||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||
Liability in respect of government grants | 14,812 | 14,621 | 12,686 | 3,660 | ||||||||||||
Operating lease liabilities | 6,809 | 7,076 | 6,457 | 1,863 | ||||||||||||
Loan from others | 123,780 | 110,971 | 122,041 | 35,211 | ||||||||||||
Warrants | 16,354 | 5,517 | - | - | ||||||||||||
Severance pay liability, net | 89 | 86 | 92 | 26 | ||||||||||||
161,844 | 138,271 | 141,276 | 40,760 | |||||||||||||
SHAREHOLDERS’ EQUITY: | ||||||||||||||||
Ordinary shares of no par value: Authorized: 600,000,000, 391,000,000 and 600,000,000 shares at June 30, 2020 and 2019 (unaudited) and December 31, 2019, respectively; Issued and outstanding: 460,822,640, 261,419,599 and 402,351,657 shares at June 30, 2020 and 2019 (unaudited) and December 31, 2019, respectively | *)- | *)- | *)- | *)- | ||||||||||||
Share premium | 255,285 | 185,454 | 304,089 | 87,735 | ||||||||||||
Accumulated deficit | (320,338 | ) | (257,967 | ) | (366,011 | ) | (105,600 | ) | ||||||||
(65,053 | ) | (72,513 | ) | (61,922 | ) | (17,865 | ) | |||||||||
115,750 | 75,769 | 85,709 | 24,730 |
*) | Represents less than NIS\USD 1. |
The accompanying notes are an integral part of the condensed interim financial statements.
, 2020 | ||||||
Date of approval of the | Mark Germain | Ron Babecoff | Uri Ben-Or | |||
financial statements | Chairman of the Board | Chief Executive Officer | Chief Financial Officer |
F-3
CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
In thousands, except share and per share data
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development, net of participations | 68,645 | 15,172 | 11,948 | 20,904 | 31,016 | 8,949 | ||||||||||||||||||
Marketing, general and administrative | 9,706 | 4,518 | 4,139 | 5,951 | 5,120 | 1,476 | ||||||||||||||||||
Total operating expenses | 78,351 | 19,690 | 16,087 | 26,855 | 36,136 | 10,425 | ||||||||||||||||||
Operating loss | (78,351 | ) | (19,690 | ) | (16,087 | ) | (26,855 | ) | (36,136 | ) | (10,425 | ) | ||||||||||||
Financial income | 4 | - | (11,291 | ) | 24 | 5,211 | 1,503 | |||||||||||||||||
Financial expense | (30,847 | ) | (27,699 | ) | (14,600 | ) | (19,992 | ) | (14,748 | ) | (4,255 | ) | ||||||||||||
Net loss | (109,194 | ) | (47,389 | ) | (41,978 | ) | (46,823 | ) | (45,673 | ) | (13,177 | ) | ||||||||||||
Basic and diluted net loss per share (NIS) | (0.33 | ) | (0.18 | ) | (0.10 | ) | (0.18 | ) | (0.11 | ) | (0.03 | ) | ||||||||||||
Weighted average number of shares outstanding used to compute basic and diluted loss per share | 326,651,721 | 261,482,786 | 433,498,227 | 261,435,179 | 431,485,801 | 431,485,801 |
The accompanying notes are an integral part of the condensed interim financial statements.
F-4
CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIENCY
In thousands, except share and per share data
Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
Unaudited | ||||||||||||||||
N I S | ||||||||||||||||
Balance as of January 1, 2020 | *)- | 255,285 | (320,338 | ) | (65,053 | ) | ||||||||||
Total comprehensive loss | - | - | (45,673 | ) | (45,673 | ) | ||||||||||
Exercise of warrants | - | 45,274 | - | 45,274 | ||||||||||||
Share-based compensation | - | 3,530 | - | 3,530 | ||||||||||||
Balance as of June 30, 2020 | *)- | 304,089 | (366,011 | ) | (61,922 | ) | ||||||||||
Balance as of June 30, 2020 (convenience translation into U.S. dollars (see Note 2c) | *)- | 87,735 | (105,600 | ) | (17,865 | ) |
Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
Unaudited | ||||||||||||||||
N I S | ||||||||||||||||
Balance as of April 1, 2020 | *)- | 262,729 | (324,033 | ) | (61,304 | ) | ||||||||||
Total comprehensive loss | - | - | (41,978 | ) | (41,978 | ) | ||||||||||
Exercise of warrants | - | 38,034 | - | 38,034 | ||||||||||||
Share-based compensation | - | 3,326 | - | 3,326 | ||||||||||||
Balance as of June 30, 2020 | *)- | 304,089 | (366,011 | ) | (61,922 | ) | ||||||||||
Balance as of June 30, 2020 (convenience translation into U.S. dollars (see Note 2c) | *)- | 87,735 | (105,600 | ) | (17,865 | ) |
*) | Represents less than NIS\USD 1. |
The accompanying notes are an integral part of the condensed interim financial statements.
F-5
BIONDVAX PHARMACEUTICALS LTD.
CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIENCY
In thousands, except share and per share data
Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
Unaudited | ||||||||||||||||
N I S | ||||||||||||||||
Balance as of January 1, 2019 | *)- | 179,929 | (211,144 | ) | (30,215 | ) | ||||||||||
Total comprehensive loss | - | - | (46,823 | ) | (46,823 | ) | ||||||||||
Exercise of Options | *)- | 1,402 | - | 1,402 | ||||||||||||
Share-based compensation | 4,065 | - | 4,123 | |||||||||||||
Balance as of June 30, 2019 | *)- | 185,454 | (257,967 | ) | (72,513 | ) | ||||||||||
Balance as of June 30, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 53,507 | (74,428 | ) | (20,921 | ) |
Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
Unaudited | ||||||||||||||||
N I S | ||||||||||||||||
Balance as of April 1, 2019 | *)- | 179,987 | (210,578 | ) | (30,591 | ) | ||||||||||
Total comprehensive loss | - | - | (47,389 | ) | (47,389 | ) | ||||||||||
Exercise of Options | *)- | 1,402 | - | 1,402 | ||||||||||||
Share-based compensation | - | 4,065 | - | 4,065 | ||||||||||||
Balance as of June 30, 2019 | *)- | 185,454 | (257,967 | ) | (72,513 | ) | ||||||||||
Balance as of June 30, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 53,507 | (74,428 | ) | (20,921 | ) |
*) | Represents less than NIS\USD 1. |
The accompanying notes are an integral part of the condensed interim financial statements.
F-6
BIONDVAX PHARMACEUTICALS LTD.
CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIENCY
In thousands, except share and per share data
Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
Audited | ||||||||||||||||
N I S | ||||||||||||||||
Balance as of January 1, 2019 | *)- | 179,929 | (211,144 | ) | (31,215 | ) | ||||||||||
Total comprehensive loss | - | - | (109,194 | ) | (109,194 | ) | ||||||||||
Issuance of ordinary shares, net of issuance costs | - | 70,270 | - | 70,270 | ||||||||||||
Exercise of options | - | 1,402 | - | 1,402 | ||||||||||||
Share-based compensation | - | 3,684 | - | 3,684 | ||||||||||||
Balance as of December 31, 2019 | *)- | 255,285 | (320,338 | ) | (65,053 | ) | ||||||||||
Balance as of December 31, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 73,654 | (92,423 | ) | (18,769 | ) |
*) | Represents less than NIS\USD 1. |
The accompanying notes are an integral part of the condensed interim financial statements.
F-7
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
In thousands, except share and per share data
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | (109,194 | ) | (47,389 | ) | (41,978 | ) | (46,823 | ) | (45,673 | ) | (13,177 | ) | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
Adjustments to profit and loss items: | ||||||||||||||||||||||||
Depreciation of property, plant and equipment and right-of-use assets | 1,645 | 263 | 603 | 525 | 1,204 | 347 | ||||||||||||||||||
Net financial expenses | 15,902 | 5,621 | 21,601 | 3,378 | 13,062 | 3,769 | ||||||||||||||||||
Capital gain | - | - | - | - | (160 | ) | (46 | ) | ||||||||||||||||
Increase in liability with respect to loans from others | 14,083 | 22,179 | 4,257 | 16,611 | (1,739 | ) | (502 | ) | ||||||||||||||||
Increase (decrease) in liability with respect to government grants | 169 | 53 | (305 | ) | (22 | ) | (2,126 | ) | (613 | ) | ||||||||||||||
Share-based compensation | 3,684 | 4,065 | 3,326 | 4,124 | 3,530 | 1,018 | ||||||||||||||||||
Change in employee benefit liabilities, net | 7 | 2 | 2 | 4 | 3 | 1 | ||||||||||||||||||
35,490 | 32,183 | 29,484 | 24,620 | 13,774 | 3,974 | |||||||||||||||||||
Changes in asset and liability items: | - | |||||||||||||||||||||||
Decrease (increase) in other receivables | 309 | 596 | (927 | ) | (293 | ) | (1,811 | ) | (523 | ) | ||||||||||||||
Increase (decrease) in trade payables | (3,661 | ) | (7,272 | ) | 792 | (12,746 | ) | (12,992 | ) | (3,748 | ) | |||||||||||||
Increase in other payables | 127 | 73 | 801 | 272 | 405 | 117 | ||||||||||||||||||
(3,225 | ) | (6,603 | ) | 666 | (12,767 | ) | (14,398 | ) | (4,154 | ) | ||||||||||||||
Cash paid and received during the year for: | ||||||||||||||||||||||||
Interest paid | (131 | ) | (44 | ) | (12 | ) | (110 | ) | (24 | ) | (7 | ) | ||||||||||||
Interest received | 2 | 1 | 1 | 1 | 1 | *)- | ||||||||||||||||||
(129 | ) | (43 | ) | (11 | ) | (109 | ) | (23 | ) | (7 | ) | |||||||||||||
Net cash flows used in operating activities | (77,058 | ) | (21,852 | ) | (11,839 | ) | (35,079 | ) | (46,320 | ) | (13,364 | ) |
*) | Represents an amount lower than NIS\USD 1. |
The accompanying notes are an integral part of the condensed interim financial statements.
F-8
BIONDVAX PHARMACEUTICALS LTD.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
In thousands, except share and per share data
Convenience translation (Note 2) | ||||||||||||||||||||||||
Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
Audited | Unaudited | Unaudited | ||||||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Purchase of property and equipment | (7,429 | ) | (1,084 | ) | (1,315 | ) | (4,277 | ) | (2,687 | ) | (775 | ) | ||||||||||||
Proceeds from sale of property and equipment | - | - | - | - | 160 | 46 | ||||||||||||||||||
Increase (decrease) in other long term assets | 230 | 201 | 8 | 230 | (381 | ) | (110 | ) | ||||||||||||||||
Net cash used in investing activities | (7,199 | ) | (883 | ) | (1,307 | ) | (4,047 | ) | (2,908 | ) | (839 | ) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Proceeds from loan from others | 15,337 | - | - | - | - | - | ||||||||||||||||||
Repayment of operating lease liabilities | (581 | ) | (315 | ) | (310 | ) | (629 | ) | (622 | ) | (179 | ) | ||||||||||||
Proceeds from exercise of warrants to public | 188 | 188 | 10,344 | 188 | 14,790 | 4,267 | ||||||||||||||||||
Proceeds from issuance of shares and options | 70,270 | - | - | - | - | |||||||||||||||||||
Net cash provided by (used in) financing activities | 85,214 | (127 | ) | 10,034 | (441 | ) | 14,168 | 4,088 | ||||||||||||||||
Exchange differences on balances of cash and cash equivalents | (4,373 | ) | (599 | ) | (642 | ) | (2,400 | ) | 1,345 | 388 | ||||||||||||||
Decrease in cash and cash equivalents | (3,416 | ) | (23,461 | ) | (3,754 | ) | (41,967 | ) | (33,715 | ) | (9,727 | ) | ||||||||||||
Balance of cash and cash equivalents at the beginning of the period | 75,883 | 57,377 | 42,506 | 75,883 | 72,467 | 20,908 | ||||||||||||||||||
Balance of cash and cash equivalents at the end of the period | 72,467 | 33,916 | 38,752 | 33,916 | 38,752 | 11,181 | ||||||||||||||||||
Non cash financing activities | ||||||||||||||||||||||||
Exercise of warrants to the public | 1,214 | 1,214 | 27,690 | 1,214 | 30,484 | 8,795 |
The accompanying notes are an integral part of the condensed interim financial statements.
F-9
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. |
The Company’s shares are traded on the NASDAQ.
b. | In the six months ended June 30, 2020, the Company incurred a loss of NIS 45,673 ($13,177) and negative cash flows from operating activities of NIS 46,352 ($ 13,373) and it has an accumulated deficit of NIS 366,011 ($ 105,600) as of that date. |
To date the Company has not generated any revenues and may need to raise additional funds to finance clinical trials that may by required by various regulatory agencies in the future.
Furthermore, the Company intends to continue to finance its operating activities by raising capital. There are no assurances that the Company will be successful in obtaining an adequate level of financing needed for its long-term research and development activities.
If the Company will not have the sufficient liquidity resources, the Company may not be able to continue the development of all or certain aspects of its products or may be required to implement a cost reduction and may be required to delay part of its development program. The Company’s management and Board of Directors are of the opinion that its current financial resources will be sufficient to continue the development of the Company’s products for at least the next twelve months.
c. | To the report date the Company management commented on the potential impact of the COVID-19 pandemic on the conduct of the Phase 3 trial’s second cohort. During the trial’s first cohort, because the flu season had a weak beginning, it was decided to increase the size of Cohort 2 by about 2,000 participants leading us to include more sites in the second season. This decision served us well as most of the Cohort 2 swab samples were collected by the end of February 2020, prior to the onset of the COVID-19 pandemic in Eastern Europe. Consequently, overall, we collected more swab samples than originally targeted (though, to be clear, we do not yet know the distribution of flu cases between the trial’s two groups). To date, the COVID-19 pandemic has not meaningfully impacted the timing or conduct of the Phase 3 trial and BiondVax’s other ongoing operations. The extent to which the COVID-19 pandemic may impact our operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence. |
F-10
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands, except share and per share data
NOTE 2:- | CONVENIENCE TRANSLATION INTO U.S. DOLLARS |
The financial statements as of June 30, 2020 and for the six months then ended have been translated into dollars using the representative exchange rate as of that date ($ 1 = NIS 3.466). 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 |
These financial statements have been prepared in a condensed format as of June 30, 2020, and for the three and six months then ended (“interim financial statements”). These 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 and accompanying notes (“annual financial statements”).
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.
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.
F-11
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands, except share and per share data
NOTE 4:- | FINANCIAL INSTRUMENTS |
a. | Classification of financial liabilities: |
Convenience | ||||||||||||||||
translation (Note 2c) | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||
2019 | 2019 | 2020 | 2020 | |||||||||||||
N I S | N I S | U.S. dollars | ||||||||||||||
Financial liabilities at amortized costs: | ||||||||||||||||
Trade payables | 17,062 | 7,977 | 4,070 | 1,175 | ||||||||||||
Other payables | 1,203 | 1,348 | 1,609 | 465 | ||||||||||||
Liability in respect of government grants | 14,812 | 14,621 | 12,686 | 3,660 | ||||||||||||
Lease liabilities | 7,503 | 7,762 | 7,133 | 2,058 | ||||||||||||
Loan from others | 123,780 | 110,971 | 122,041 | 35,211 | ||||||||||||
164,360 | 142,679 | 147,539 | 42,569 | |||||||||||||
Financial liabilities at fair value through profit and loss: | ||||||||||||||||
Warrants measured at fair value | 16,354 | 5,517 | - | - | ||||||||||||
Total financial liabilities | 180,714 | 148,196 | 147,539 | 42,567 | ||||||||||||
Total current | 18,959 | 10,011 | 6,355 | 1,835 | ||||||||||||
Total non-current | 161,755 | 138,185 | 141,184 | 40,732 |
b. | Fair value measurement: |
As of June 30, 2020, there are no financial instruments measured at fair value and classified as Level 1 while loans from others and government grants are classified as Level 2.
As of June 30, 2020 there were no transfers in respect of fair value measurement of any financial instrument between Level 1 and Level 2, and there were no transfers into or out of Level 3 fair value measurements of any financial instrument.
F-12
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands, except share and per share data
NOTE 4:- | FINANCIAL INSTRUMENTS (Cont.) |
c. | Changes in liabilities arising from financing activities: |
Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
N I S | ||||||||||||
Balance as of January 1, 2020 | 123,780 | 7,503 | 131,283 | |||||||||
Cash flows | - | (370 | ) | (370 | ) | |||||||
Effect of changes in fair value | (1,739 | ) | - | (1,739 | ) | |||||||
Balance as of June 30, 2020 (unaudited) | 122,041 | 7,133 | 129,174 |
Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
N I S | ||||||||||||
Balance as of January 1, 2019 | 94,360 | - | 94,360 | |||||||||
Adoption of IFRS 16 | - | 8,084 | 8,084 | |||||||||
Cash flows | - | (322 | ) | (322 | ) | |||||||
Effect of changes in fair value | 16,611 | - | 16,611 | |||||||||
Balance as of June 30, 2019 (unaudited) | 110,971 | 7,762 | 118,733 |
Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
N I S | ||||||||||||
Balance as of January 1, 2019 | 94,360 | - | 94,360 | |||||||||
Adoption of IFRS 16 | - | 8,084 | 8,084 | |||||||||
Cash flows | 15,337 | (581 | ) | 14,756 | ||||||||
Effect of changes in fair value | 14,083 | - | 14,083 | |||||||||
Balance as of December 31, 2019 | 123,780 | 7,503 | 131,283 |
F-13
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands, except share and per share data
NOTE 5:- | EQUITY |
a. | On May 15, 2020 540,639 NASDAQ listed warrants expired. |
b. | During the six months ended June 30, 2020, there were 676,118 NASDAQ listed warrants to purchase ADSs at an exercise price of $6.25 that were exercised into 27,044,720 Ordinary shares for a total consideration of NIS 14,790 (approximately $ 4,267) and 611,565 NASDAQ listed warrants to purchase ADSs at an exercise price of $6.25 were exercised on a cashless basis into 24,462,600 Ordinary shares. |
NOTE 6:- | SHARE-BASED COMPENSATION |
a. | On June 11, 2020, the Company’s Board of Directors ratified the grant of options to 23 employees to purchase an aggregate 141,400 ADS (5,656,000 Ordinary shares) at an exercise price of $7.28 – $8.076 per ADS. The options were originally approved pursuant to a delegation of authority granted by the Board of Directors to Company management in April 2018 to grant a pool of options with an exercise price of $7.98 and other terms approved by the Board of Directors at the time of delegation. |
The total value of the grant was NIS 4,190 ($ 1,209)
On the same day, the Company’s Board of Directors approved a grant to an advisor to purchase 72,000 ADS (2,880,000 Ordinary shares) at an exercise price of $18.06 per ADS in three tranches. The first tranche of 32,400 ADS’s was vested on May 31,2020, the second tranche of 25,200 ADS will be vested on September 30, 2020 and the third tranche of 14,400 ADS’s will be vested on December 31, 2020. The options will be expire four years from the commencement vesting date of each tranche.
The total value of the grant was NIS 2,783 ($ 803)
b. | The fair value of the Company’s share options granted to employees, directors and service providers for the six months ended June 2020 was estimated using the binominal option pricing model using the following assumptions: |
For the six months ended June 30, | ||
2020 | ||
Dividend yield (%) | - | |
Expected volatility of the share prices (%) | 66 | |
Risk-free interest rate (%) | 0.7-0.8 | |
Expected life of share options (years) | 6-7 | |
Share price (NIS) | (1) 7.05-18 |
F-14
BIONDVAX PHARMACEUTICALS LTD.
NOTES TO FINANCIAL STATEMENTS
In thousands, except share and per share data
NOTE 6:- | SHARE-BASED COMPENSATION (Cont.) |
c. | The expense that was recognized for services received from employees, directors and service providers as equity-settled share-based payment is as follows: |
Year ended December 31, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||
2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
N I S | U.S. dollars | |||||||||||||||||||||||
Audited | Unaudited | |||||||||||||||||||||||
Research and development | 1,907 | 2,761 | 1,017 | 2,761 | 1,146 | 331 | ||||||||||||||||||
Marketing, general and administrative | 1,777 | 1,305 | 2,309 | 1,363 | 2,384 | 688 | ||||||||||||||||||
Total share-based compensation | 3,684 | 4,066 | 3,326 | 4,124 | 3,530 | 1,019 |
d. | The following table presents the number of share options, the weighted average exercise prices of share options and changes that were made in the option plan to employees and directors: |
June 30, 2020 | ||||||||
Unaudited | ||||||||
Number of options | Weighted average exercise price | |||||||
Outstanding at beginning of year | 8,190,000 | 0.75 | ||||||
Granted | 15,434,000 | 0.92 | ||||||
Exercised | (240,000 | ) | 0.69 | |||||
Forfeited | (395,000 | ) | 0.75 | |||||
Outstanding at end of year | 22,989,400 | 0.86 | ||||||
Exercisable at end of year | 9,618,766 | 0.73 |
The weighted average remaining contractual life for the share options outstanding as of June 30, 2020 was 6.46 years
F-15