Entera Bio (ENTX) 10-Q 11 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2022 shares
Cover [Abstract]
Entity Registrant Name	ENTERA BIO LTD.
Document Type	10-Q
Document Period End Date	Jun. 30, 2022
Entity Central Index Key	0001638097
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding	28,809,922
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Shell Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Incorporation, State or Country Code	L3
Entity Address, Address Line One	Kiryat Hadassah
Entity Address, Address Line Two	Minrav Building – Fifth Floor
Entity Address, City or Town	Jerusalem
Entity Address, Postal Zip Code	9112002
Entity Address, Country	IL
City Area Code	972
Local Phone Number	2-532-7151
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38556
Entity Tax Identification Number	00-0000000
Trading Symbol	ENTX
Security Exchange Name	NASDAQ
Title of 12(b) Security	Ordinary Shares

CONDENCED CONSOLIDATED BALANCE

CONDENCED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands		Jun. 30, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents		$ 17,279	$ 24,892
Accounts receivable		225	183
Other current assets		922	254
TOTAL CURRENT ASSETS		18,426	25,329
NON-CURRENT ASSETS:
Property and equipment, net		166	156
Operating lease right-of-use assets		170	239
Deferred income taxes		280	217
Funds in respect of employee rights upon retirement		46	46
TOTAL NON-CURRENT ASSETS		662	658
TOTAL ASSETS		19,088	25,987
CURRENT LIABILITIES:
Accounts payable		109	166
Accrued expenses and other payables		1,411	2,801
Current maturities of operating lease		172	179
Contract liabilities		0	15
TOTAL CURRENT LIABILITIES		1,692	3,161
NON-CURRENT LIABILITIES:
Operating lease liabilities		5	123
Liability for employee rights upon retirement		122	138
TOTAL NON-CURRENT LIABILITIES		127	261
TOTAL LIABILITIES		1,819	3,422
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Ordinary Shares, NIS 0.0000769 par value: Authorized - as of June 30, 2022 and December 31, 2021, 140,010,000 shares; issued and outstanding: - as of June 30, 2022 and December 31, 2021, 28,809,922 and 28,804,411 shares, respectively	[1]
Additional paid-in capital		106,623	104,950
Accumulated other comprehensive income		41	41
Accumulated deficit		(89,395)	(82,426)
TOTAL SHAREHOLDERS' EQUITY		17,269	22,565
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$ 19,088	$ 25,987
[1]Represents an amount less than one thousand US dollars

CONDENCED CONSOLIDATED BALANC_2

CONDENCED CONSOLIDATED BALANCE SHEETS (Parentheticals) (Unaudited) - ₪ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Ordinary share, par value	₪ 0.0000769	₪ 0.0000769
Ordinary shares, authorized	140,010,000	140,010,000
Ordinary shares, issued	28,809,922	28,804,411
Ordinary shares, outstanding	28,809,922	28,804,411

CONDENCED CONSOLIDATED STATEMEN

CONDENCED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
REVENUES	$ 44	$ 109	$ 112	$ 266
COST OF REVENUES	33	99	87	172
GROSS PROFIT	11	10	25	94
OPERATING EXPENSES:
Research and development	1,394	1,227	3,084	2,351
General and administrative	1,880	1,364	4,052	2,674
Other income	(14)	(11)	(27)	(22)
TOTAL OPERATING EXPENSES	3,260	2,580	7,109	5,003
OPERATING LOSS	3,249	2,570	7,084	4,909
FINANCIAL (INCOME) LOSS ,NET	(60)	24	(104)	(5)
LOSS BEFORE INCOME TAX	3,189	2,594	6,980	4,904
INCOME TAX BENEFIT	(4)	(17)	(11)	(31)
NET LOSS	$ 3,185	$ 2,577	$ 6,969	$ 4,873
LOSS PER SHARE BASIC	$ 0.11	$ 0.1	$ 0.24	$ 0.21
LOSS PER SHARE DILUTED	$ 0.11	$ 0.1	$ 0.24	$ 0.21
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC LOSS PER SHARE	28,808,023	24,716,608	28,806,217	23,377,668
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF DILUTED LOSS PER SHARE	28,808,023	24,716,608	28,806,217	23,377,668

CONDENCED CONSOLIDATED STATEM_2

CONDENCED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Ordinary shares [Member]		Additional paid-in capital [Member]	Accumulated other Comprehensive income [Member]	Accumulated deficit [Member]	Total
Balance at Dec. 31, 2020		[1]	$ 77,708	$ 41	$ (70,239)	$ 7,510
BALANCE (in shares) at Dec. 31, 2020	21,057,922
CHANGES DURING THE YEAR ENDED
Net loss	$ 0		0	0	(4,873)	(4,873)
Issuance of shares due to the ATM program, net of issuance costs		[1]	19,342	0	0	19,342
Issuance of shares due to the ATM program, net of issuance costs (in shares)	3,946,265
Exercise of options to ordinary shares		[1]	275	0	0	275
Exercise of options to ordinary shares (in shares)	99,974
Exercise of warrants to ordinary shares		[1]	3,158	0	0	3,158
Exercise of warrants to ordinary shares (in shares)	3,175,050
Share-based compensation	$ 0		865	0	0	865
Vested restricted share units	$ 0		0	0	0	0
Vested restricted share units (in shares)	7,000
BALANCE (in shares) at Jun. 30, 2021	28,286,211
Balance at Jun. 30, 2021		[1]	101,348	41	(75,112)	26,277
Balance at Mar. 31, 2021		[1]	88,144	41	(72,535)	15,650
BALANCE (in shares) at Mar. 31, 2021	23,776,785
CHANGES DURING THE YEAR ENDED
Net loss	$ 0		0	0	(2,577)	(2,577)
Issuance of shares due to the ATM program, net of issuance costs		[1]	9,484	0	0	9,484
Issuance of shares due to the ATM program, net of issuance costs (in shares)	1,400,000
Exercise of options to ordinary shares		[1]	48	0	0	48
Exercise of options to ordinary shares (in shares)	28,594
Exercise of warrants to ordinary shares		[1]	3,134	0	0	3,134
Exercise of warrants to ordinary shares (in shares)	3,080,832
Share-based compensation	$ 0		538	0	0	538
BALANCE (in shares) at Jun. 30, 2021	28,286,211
Balance at Jun. 30, 2021		[1]	101,348	41	(75,112)	26,277
Balance at Dec. 31, 2021		[1]	104,950	41	(82,426)	22,565
BALANCE (in shares) at Dec. 31, 2021	28,804,411
CHANGES DURING THE YEAR ENDED
Net loss	$ 0		0	0	(6,969)	(6,969)
Exercise of options to ordinary shares		[1]	13	0	0	13
Exercise of options to ordinary shares (in shares)	5,511
Share-based compensation	$ 0		1,660	0	0	1,660
BALANCE (in shares) at Jun. 30, 2022	28,809,922
Balance at Jun. 30, 2022		[1]	106,623	41	(89,395)	17,269
Balance at Mar. 31, 2022		[1]	105,914	41	(86,210)	19,745
BALANCE (in shares) at Mar. 31, 2022	28,804,411
CHANGES DURING THE YEAR ENDED
Net loss	$ 0		0	0	(3,185)	(3,185)
Exercise of options to ordinary shares		[1]	13	0	0	13
Exercise of options to ordinary shares (in shares)	5,511
Share-based compensation	$ 0		696	0	0	696
BALANCE (in shares) at Jun. 30, 2022	28,809,922
Balance at Jun. 30, 2022		[1]	$ 106,623	$ 41	$ (89,395)	$ 17,269
[1]Represents an amount less than one thousand US dollars.

CONDENCED CONSOLIDATED STATEM_3

CONDENCED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,185)	$ (2,577)	$ (6,969)	$ (4,873)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation			32	24
Deferred income taxes			(63)	(109)
Share-based compensation			1,660	865
Finance income, net			(71)	(4)
Changes in operating asset and liabilities:
Decrease (increase) in accounts receivable			(42)	139
Increase in other current assets			(704)	(602)
Increase (decrease) in accounts payable			(57)	125
Increase (decrease) in accrued expenses and other payables			(1,390)	143
Decrease in contract liabilities			(15)	(150)
Net cash used in operating activities			(7,619)	(4,442)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(42)	0
Net cash used in investing activities			(42)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares through ATM programs, net of issuance costs			0	19,342
Exercise of options and warrants into shares			13	3,433
Net cash provided by financing activities			13	22,775
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			(7,648)	18,333
CASH, CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT BEGINNING OF THE PERIOD			24,964	8,663
CASH, CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF THE PERIOD	17,316	26,996	17,316	26,996
Reconciliation in amounts on consolidated balance sheets:
Cash and cash equivalents	17,279	26,926	17,279	26,926
Restricted deposits included in other current assets	37	70	37	70
Total cash and cash equivalents and restricted cash	$ 17,316	$ 26,996	17,316	26,996
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS:
Operating lease right of use assets obtained in exchange for new operating lease liabilities			$ 0	$ 31

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS: a. Entera Bio Ltd. (collectively with its subsidiary, the "Company") was incorporated on September 30, 2009 under the laws of the State of Israel and commenced operation on June 1, 2010. On January 8, 2018 the Company incorporated Entera Bio Inc., a wholly owned subsidiary incorporated in Delaware, United States.The Company is a leader in the development of orally delivered macromolecule therapeutics, including peptides and other therapeutic proteins. The Company applies its platform for use in areas with significant unmet medical need, where adoption of injectable therapies is limited due to cost, convenience and compliance challenges for patients. The Company’s most advanced product candidates, EB613 for the treatment of osteoporosis and EB612 for the treatment of hypoparathyroidism, are based on its proprietary technology platform and are both in clinical development. Additionally, the Company intends to license its oral delivery technology to biopharmaceutical companies for use with their proprietary compounds. Entera established such a collaboration with Amgen Inc. (“Amgen”) in December 2018, for the use of the Company’s oral delivery platform in the field of inflammatory diseases. b. The Company's ordinary shares, NIS 0.0000769 par value per share (“ordinary shares”), have been listed for trading on the Nasdaq Capital Market since the Company’s initial public offering in July 2018, in which total of 1,400,000 ordinary shares and 1,400,000 warrants to purchase up to 700,000 ordinary shares were issued in consideration for net proceeds of $9.6 million, after deducting offering expenses. c. On December 10, 2018, the Company entered into a research collaboration and license agreement (the “Amgen Agreement”) with Amgen for the use of the Company’s oral delivery platform in the field of inflammatory disease and other serious illnesses. Pursuant to the Amgen Agreement, the Company and Amgen have agreed to use the Company’s proprietary drug delivery platform to develop oral formulations for one preclinical large molecule program that Amgen has selected. Amgen also has options to select up to two additional programs to include in the Amgen Agreement. Amgen is responsible for the clinical development, regulatory approval, manufacturing and worldwide commercialization of the programs. The Company granted Amgen an exclusive, worldwide, sublicensable license under certain of its intellectual property relating to its drug delivery technology to develop, manufacture and commercialize the applicable products. The Company has retained all intellectual property rights to its drug delivery technology, and Amgen has retained all rights to its large molecules and any subsequent improvements, and ownership of certain intellectual property developed through the performance of the agreement is to be determined by U.S. patent law. d. Because the Company is engaged in research and development activities, it has not derived significant income from its activities and has incurred accumulated losses in the amount of $89.4 million through June 30, 2022 and negative cash flows from operating activities. The Company's management is of the opinion that its available funds as of June 30, 2022 will allow the Company to operate under its current plans through the second quarter of 2023. These factors raise substantial doubt as to the Company's ability to continue as a going concern. Management is in the process of evaluating various financing alternatives in the public or private equity markets or through the license of the Company's technology 1 e. Covid-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. During 2021, there was a broad distribution of several vaccinations and medicines to overcome the pandemic. The Company has adjusted its operations to co-exist with the pandemic and has encouraged its employees to get vaccinated against COVID-19. Though the Company sees great progress to overcome the COVID-19 pandemic, the COVID-19 pandemic may continue to impact the Company’s business operations, with outbursts of new variants of the COVID-19 from time to time, and there is uncertainty in the nature and degree of its continued effects over time.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Basis of presentation of the financial statements These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2022, the consolidated results of operations, statements of changes in shareholders' equity for the three and six-month periods ended June 30, 2022 and 2021 and cash flows for the six-month periods ended June 30, 2022 and 2021. The consolidated results for the three and six-month periods ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2021 as filed with the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 8, 2022. The comparative balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for annual financial statements. b. Loss per share Basic loss per share is computed on the basis of the net loss for the period, divided by the weighted average number of outstanding ordinary shares during the period. Diluted loss per share is based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options and warrants, which are included under the treasury stock method when dilutive. The calculation of diluted loss per share does not include options and warrants, exercisable into 6,326,180 shares and 7,804,106 shares for the six months ended June 30, 2022 and 2021, respectively and 6,473,863 shares and 7,718,887 shares for the three months ended June 30, 2022 and 2021, respectively, because the effect would be anti-dilutive. c. Newly issued and recently adopted accounting pronouncements: Recently issued accounting pronouncements adopted 1) In November 2021, the FASB issued ASU 2021-10 “Government Assistance (Topic 832)”, which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this guidance did not have material impact on the Company’s consolidated financial statements. 2) In August 2020, the FASB issued ASU 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40).” This guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The amendments to this guidance are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The adoption of this guidance did not have material impact on the Company’s consolidated financial statements.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 3 - SHARE-BASED COMPENSATION: a. On August 23, 2021, the Company’s Board of Directors approved the following option grants which were approved by the shareholders of the Company on October 4, 2021: i. Grants of options to purchase ordinary shares with a total fair value 0f $195 for each of the seven non-executive board members on January 1, 2022. The options will vest over 3 years in twelve equal quarterly instalments starting on January 1, 2022 the vesting commencement date. On January 1, 2022, which is considered the awards grant date, the Company granted 752,899 ordinary shares to non-executive directors with an exercise price of $2.815 per share. ii. Grants of options to purchase ordinary shares with a total fair value 0f $65 for each of the seven non-executive board members on January 1, 2022. The options will vest over 1 year in four equal quarterly instalments starting on January 1, 2022 the vesting commencement date. On January 1, 2022, which is considered the awards grant date, the Company granted 250,964 ordinary shares to non-executive directors with an exercise price of $2.815 per share. b. On March 31, 2022, the Company’s Board of Directors approved option grants to purchase 115,000 ordinary shares to certain executive officers and 20,000 options granted to a service provider, in each case with an exercise price of $2.86 per share. The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date. The fair value of the options at the date of grant was $147. Of these options, 55,000 are subject to the approval of the shareholders of the Company and as such, are not included as part of the fair value. c. On April 28, 2022, the Company’s Board of Directors approved options grants to purchase 220,000 ordinary shares to employees with an exercise price of $2.57 per share. The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date. The fair value of the options at the date of grant was $364. d. On May 11, 2022, the Company’s Board of Directors approved a grant of options to purchase 500,000 ordinary shares to the Company’s Chief Financial Officer, who has since been appointed the Company’s Chief Executive Officer. These options have an exercise price of $2.02 per share and vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date. These options are subject to the approval of the shareholders of the Company. The fair value of each option granted is estimated at the date of grant using the Black-Scholes option-pricing model, with the following weighted average assumptions: Six months ended June 30, 2022 Exercise price $2.57-$2.86 Dividend yield - Expected volatility 69%-70% Risk-free interest rate 1.35%-2.87% Expected life - in years 5.5-6.5 e. On June 15, 2022 the Company signed on a separation agreement with Dr. Phillip Schwartz, the Company’s former President of R&D, under which he agreed to continue to provide services to the Company until July 21, 2022 (the “Separation Date”). Pursuant to the terms of the separation agreement and subject to approval of the Company’s shareholders, Dr. Schwartz is entitled to receive a full acceleration of the options to purchase 100,000 ordinary shares granted in April 2021, such that 68,750 outstanding options to acquire ordinary shares that not already vested will be deemed to have vested as of the Separation date. These options, together with 357,500 options to purchase ordinary shares, granted in 2017 will remain exercisable, consistent with the original exercise periods. In addition, the separation agreement provides for the following payments to Dr. Schwartz, all of which would have otherwise been payable in accordance with either Israeli law or pursuant to his existing employment agreement: a one-time cash separation payment in an amount equal to NIS 537,600 (approximately $155,900) and additional payments of approximately NIS 737,771 (approximately $213,952) in respect of all other ongoing accrued benefits, subject to any mandatory deductions. The foregoing payments were recognized in the research and development expenses.

SUPPLEMENTARY FINANCIAL STATEME

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION	6 Months Ended
	Jun. 30, 2022
Supplementary Financial Statement Information [Abstract]
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION	NOTE 4 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION: Balance sheets: June 30, December 31, Accrued expenses and other payables: 2022 2021 Employees and employees related 182 147 Income tax 20 134 Provision for vacation 260 308 Accrued expenses 949 2,212 1,411 2,801

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 5 - SUBSEQUENT EVENTS: a. On July 15, 2022, the Company’s Board of Directors appointed Ms. Miranda Toledano as the Company’s new CEO and approved a grant of additional (see also note 3d) options to purchase 600,000 ordinary shares at an exercise price of $1.40 per share. The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the applicable grant date. In addition, upon the occurrence of a Triggering Event (as defined below), the Board of Directors will grant Ms. Toledano options to purchase 200,000 ordinary shares. "Triggering Event" shall mean the earlier of the following events: (i) the execution by the Company of a binding strategic or partnership agreement with a strategic partner to fund the Company's Phase III FDA Trial; or (b) raising sufficient funding to complete the Company's Phase III FDA Trial, in each case as such event was approved by the Board of Directors. The foregoing option grants are subject to the Company’s shareholders' approval. b. On July 15, 2022, the Company entered into a mutual separation agreement with Dr. Spiros Jamas, the Company’s former CEO. Pursuant to the separation agreement, Dr. Jamas received the following benefits: (i) a one-time lump sum payment of his annual base salary for a period of 13 months, for a total gross amount equal to $411,666.67; and (ii) an extension of the exercise period for the vested portion of the options granted to Dr. Jamas on January 4, 2021, representing collectively 492,832 ordinary shares, through the end of a two-year period commencing on July 15, 2022. All of Dr. Jamas’ remaining unvested options, totaling 821,386 options, were forfeited.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of presentation of the financial statements	a. Basis of presentation of the financial statements These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2022, the consolidated results of operations, statements of changes in shareholders' equity for the three and six-month periods ended June 30, 2022 and 2021 and cash flows for the six-month periods ended June 30, 2022 and 2021. The consolidated results for the three and six-month periods ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2021 as filed with the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 8, 2022. The comparative balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for annual financial statements.
Loss per share	b. Loss per share Basic loss per share is computed on the basis of the net loss for the period, divided by the weighted average number of outstanding ordinary shares during the period. Diluted loss per share is based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options and warrants, which are included under the treasury stock method when dilutive. The calculation of diluted loss per share does not include options and warrants, exercisable into 6,326,180 shares and 7,804,106 shares for the six months ended June 30, 2022 and 2021, respectively and 6,473,863 shares and 7,718,887 shares for the three months ended June 30, 2022 and 2021, respectively, because the effect would be anti-dilutive.
Newly issued and recently adopted accounting pronouncements	c. Newly issued and recently adopted accounting pronouncements: Recently issued accounting pronouncements adopted 1) In November 2021, the FASB issued ASU 2021-10 “Government Assistance (Topic 832)”, which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this guidance did not have material impact on the Company’s consolidated financial statements. 2) In August 2020, the FASB issued ASU 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40).” This guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The amendments to this guidance are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The adoption of this guidance did not have material impact on the Company’s consolidated financial statements.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Schedule of fair value assumptions of option granted using Black-Scholes option-pricing model	Six months ended June 30, 2022 Exercise price $2.57-$2.86 Dividend yield - Expected volatility 69%-70% Risk-free interest rate 1.35%-2.87% Expected life - in years 5.5-6.5

SUPPLEMENTARY FINANCIAL STATE_2

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Table)	6 Months Ended
	Jun. 30, 2022
Supplementary Financial Statement Information [Abstract]
Schedule of accounts payable and accrued liabilities	June 30, December 31, Accrued expenses and other payables: 2022 2021 Employees and employees related 182 147 Income tax 20 134 Provision for vacation 260 308 Accrued expenses 949 2,212 1,411 2,801

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Detail Textuals) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 ₪ / shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2021 ₪ / shares	Dec. 31, 2021 USD ($)
General [Line Items]
Ordinary share, par value | ₪ / shares		₪ 0.0000769		₪ 0.0000769
Number of warrants issued			1,400,000
Number of ordinary shares will be purchased by exercising warrants			700,000
Net proceeds from share issuance | $	$ 9,600
Accumulated deficit | $			$ (89,395)		$ (82,426)
Ordinary shares [Member]
General [Line Items]
Number of shares issued			1,400,000

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Significant Accounting Policies [Line Items]
Number of antidilutive securities excluded from computation of earnings per share	6,473,863	7,718,887	6,326,180	7,804,106

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details)	6 Months Ended
	Jun. 30, 2022 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 2.57
Expected volatility	69%
Risk-free interest rate	1.35%
Expected life - in years	5 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 2.86
Expected volatility	70%
Risk-free interest rate	2.87%
Expected life - in years	6 years 6 months

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Detail Textuals) $ / shares in Units, ₪ in Thousands, $ in Thousands		1 Months Ended					3 Months Ended
	May 11, 2022 $ / shares shares	Jun. 15, 2022 ILS (₪) shares	Jun. 15, 2022 USD ($) shares	Apr. 28, 2022 USD ($) $ / shares shares	Aug. 23, 2021 USD ($) $ / shares shares	Apr. 30, 2021 shares	Mar. 31, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares available for future grant							55,000
Description of terms of share-based payment arrangement							The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date. The fair value of the options at the date of grant was $147.
Vestion period							4 years
Fair value of options at the date of grant | $							$ 147
Service Provider [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares							20,000
Exercise price of options granted | $ / shares							$ 2.86
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares							115,000
Exercise price of options granted | $ / shares							$ 2.86
Non-executive director [Member] | Vest over twelve equal quarterly instalments starting on January 1, 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares					752,899
Exercise price of options granted | $ / shares					$ 2.815
Vestion period					3 years
Fair value of options at the date of grant | $					$ 195
Non-executive director [Member] | Vest over four equal quarterly instalments starting on January 1, 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares					250,964
Exercise price of options granted | $ / shares					$ 2.815
Vestion period					1 year
Fair value of options at the date of grant | $					$ 65
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Description of terms of share-based payment arrangement				The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date.
Number of additional options granted to purchase ordinary shares				220,000
Exercise price of options granted | $ / shares				$ 2.57
Vestion period				4 years
Fair value of options at the date of grant | $				$ 364
Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Description of terms of share-based payment arrangement	These options have an exercise price of $2.02 per share and vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date.
Number of additional options granted to purchase ordinary shares	500,000
Exercise price of options granted | $ / shares	$ 2.02
Vestion period	4 years
President of R&D [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash separation payment		₪ 537,600	$ 155,900
Additional cash separation payment		₪ 737,771	$ 213,952
President of R&D [Member] | 2021 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares		100,000	100,000
President of R&D [Member] | 2017 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional options granted to purchase ordinary shares		357,500	357,500			68,750

SUPPLEMENTARY FINANCIAL STATE_3

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accrued expenses and other payables:
Employees and employees related	$ 182	$ 147
Income tax	20	134
Provision for vacation	260	308
Accrued expenses	949	2,212
Accrued expenses and other payables, total	$ 1,411	$ 2,801

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - USD ($)		3 Months Ended
	Jul. 15, 2022	Mar. 31, 2022
Subsequent Event [Line Items]
Vestion period		4 years
Description of terms of share-based payment arrangement		The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the grant date. The fair value of the options at the date of grant was $147.
Subsequent Event [Member] | Chief Executive Officer [Member]
Subsequent Event [Line Items]
Number of additional options granted to purchase ordinary shares	600,000
Exercise price of options granted	$ 1.4
Vestion period	4 years
Description of terms of share-based payment arrangement	The options vest over four years from the date of grant; 25% vest on the first anniversary of the date of grant and the remaining 75% of the option will vest in twelve equal quarterly installments following the first anniversary of the applicable grant date.
Subsequent Event [Member] | Chief Executive Officer [Member] | Triggering event [Member]
Subsequent Event [Line Items]
Number of additional options granted to purchase ordinary shares	200,000
Subsequent Event [Member] | Former CEO [Member]
Subsequent Event [Line Items]
Number of additional options granted to purchase ordinary shares	492,832
Vestion period	2 years
Number of unvested options forfeited	821,386
One-time cash termination payment	$ 411,666,670