Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Intec Pharma Ltd. | ||
Entity Central Index Key | 1,638,381 | ||
Document Type | 10-K | ||
Trading Symbol | NTEC | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity's Reporting Status Current | Yes | ||
Entity a Well-known Seasoned Issuer | No | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity a Voluntary Filer | No | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 145,373,536 | ||
Entity Common Stock, Shares Outstanding | 33,232,988 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 39,246 | $ 53,393 |
Investment in marketable securities (Note 3) | 1,333 | 1,825 |
Prepaid expenses and other receivables (Note 8a) | 2,986 | 1,125 |
TOTAL CURRENT ASSETS | 43,565 | 56,343 |
NON-CURRENT ASSETS: | ||
Other assets (Note 6f) | 5,431 | |
Property and equipment, net (Note 4) | 12,233 | 8,206 |
Deferred tax assets (Note 9) | 281 | |
TOTAL NON-CURRENT ASSETS | 17,945 | 8,206 |
TOTAL ASSETS | 61,510 | 64,549 |
CURRENT LIABILITIES - | ||
Accounts payable and accruals: Trade | 2,849 | 1,854 |
Accounts payable and accruals: Other (Note 8b) | 4,807 | 3,893 |
TOTAL CURRENT LIABILITIES | 7,656 | 5,747 |
LONG-TERM LIABILITIES | ||
Other liabilities (Note 9) | 309 | |
TOTAL LIABILITIES | 7,965 | 5,747 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 6) | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares, with no par value - authorized: 100,000,000 and 50,000,000 Ordinary Shares as of December 31, 2018 and December 31, 2017, respectively; issued and outstanding: 33,232,988 and 26,075,770 Ordinary Shares as of December 31, 2018 and December 31, 2017, respectively | 727 | 727 |
Additional paid-in capital | 194,642 | 156,356 |
Accumulated deficit | (141,824) | (98,281) |
TOTAL SHAREHOLDERS' EQUITY | 53,545 | 58,802 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 61,510 | $ 64,549 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollar per shares) | ||
Ordinary shares, authorized | 100,000,000 | 50,000,000 |
Ordinary shares, issued | 33,232,988 | 26,075,770 |
Ordinary shares, outstanding | 33,232,988 | 26,075,770 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING EXPENSES: | ||
RESEARCH AND DEVELOPMENT EXPENSES, net | $ (35,402) | $ (24,295) |
GENERAL AND ADMINISTRATIVE EXPENSES | (7,926) | (5,144) |
OPERATING LOSS | (43,328) | (29,439) |
FINANCIAL INCOME (EXPENSES), net (Note 8c) | (112) | 559 |
LOSS BEFORE INCOME TAX | (43,440) | (28,880) |
INCOME TAX (Note 9) | (103) | (29) |
NET LOSS | $ (43,543) | $ (28,909) |
LOSS PER SHARE BASIC AND DILUTED (in dollars per share) | $ (1.40) | $ (1.64) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER ORDINARY SHARE IN THOUSANDS | 31,193 | 17,660 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares | Additional paid-in capital | Accumulated Deficit | Total |
BALANCE at Dec. 31, 2016 | $ 727 | $ 91,446 | $ (69,372) | $ 22,801 |
BALANCE (in shares) at Dec. 31, 2016 | 11,448,191 | |||
CHANGES DURING THE YEAR | ||||
Issuance of ordinary shares, net of issuance costs (Note 7b) | 63,131 | 63,131 | ||
Issuance of ordinary shares, net of issuance costs (Note 7b) (in shares) | 14,514,138 | |||
Exercise of warrants (Note 7c) | 531 | 531 | ||
Exercise of warrants (Note 7c) (in shares) | 102,058 | |||
Exercise of options by employees (Note 7d) | 45 | 45 | ||
Exercise of options by employees (Note 7d) (in shares) | 11,383 | |||
Share-based compensation (Note 7d) | 1,203 | 1,203 | ||
Net loss | (28,909) | (28,909) | ||
BALANCE at Dec. 31, 2017 | $ 727 | 156,356 | (98,281) | $ 58,802 |
BALANCE (in shares) at Dec. 31, 2017 | 26,075,770 | 26,075,770 | ||
CHANGES DURING THE YEAR | ||||
Issuance of ordinary shares, net of issuance costs (Note 7b) | 35,029 | $ 35,029 | ||
Issuance of ordinary shares, net of issuance costs (Note 7b) (in shares) | 7,150,000 | |||
Exercise of options by employees (Note 7d) | 30 | 30 | ||
Exercise of options by employees (Note 7d) (in shares) | 7,218 | |||
Share-based compensation (Note 7d) | 3,227 | 3,227 | ||
Net loss | (43,543) | (43,543) | ||
BALANCE at Dec. 31, 2018 | $ 727 | $ 194,642 | $ (141,824) | $ 53,545 |
BALANCE (in shares) at Dec. 31, 2018 | 33,232,988 | 33,232,988 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (43,543) | $ (28,909) |
Adjustments required to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 859 | 829 |
Exchange differences on cash and cash equivalents | 829 | (127) |
Losses (gains) on marketable securities | 194 | (220) |
Loss from sale of property and equipment | 2 | |
Share-based compensation | 3,227 | 1,203 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses and other receivables | (1,861) | 1,259 |
Increase in deferred tax assets | (281) | |
Increase in accounts payable and accruals | 1,191 | 3,831 |
Increase in other liabilities | 309 | |
Net cash used in operating activities | (39,076) | (22,132) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (4,667) | (5,001) |
Investment in other assets | (4,932) | |
Proceeds from disposal of marketable securities, net | 298 | 247 |
Proceeds from sale of property and equipment | 7 | |
Net cash used in investing activities | (9,301) | (4,747) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of ordinary shares, net of issuance costs | 35,029 | 63,131 |
Proceeds from exercise of warrants | 531 | |
Proceeds from exercise of options by employees | 30 | 45 |
Net cash provided by financing activities | 35,059 | 63,707 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,318) | 36,828 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 53,393 | 16,438 |
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | (829) | 127 |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 39,246 | 53,393 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES: | ||
Liability with respect to property and equipment (see note 6e) | 170 | |
Liability with respect to other assets (see note 6f) | 499 | |
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION: | ||
Taxes paid | 96 | |
Interest received | $ 734 | $ 244 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS: General Information: 1) Intec Pharma Ltd. (“Intec”) is engaged in the development of proprietary technology which enables the gastric retention of certain drugs. The technology is intended to significantly improve the efficiency of the drugs and substantially reduce their side-effects or the effective doses. Intec is a limited liability public company incorporated in Israel. Intec’s ordinary shares are traded on the NASDAQ Capital Market (“NASDAQ”). Intec’s ordinary shares were delisted from the Tel-Aviv Stock Exchange in August 2018. In September 2017, Intec incorporated a wholly-owned subsidiary in the United States of America in the State of Delaware – Intec Pharma Inc. (the “Subsidiary”). The Subsidiary was incorporated mainly to provide Intec executive and management services, including business development, medical affairs and investor relationship activities outside of Israel. 2) Intec together with its Subsidiary (the “Company”) engage in research and development activities and as a group have not yet generated revenues from their operations. Accordingly, there is no assurance that the Company’s operations will generate positive cash flows. As of December 31, 2018, the cumulative losses of the Company were approximately $141.8 million. Management expects that the Company will continue to incur losses from its operations, which will result in negative cash flows from operating activities. The Company’s management estimates that its current cash resources will allow the Company to complete its Phase III clinical trial for AP-CD/LD. However, management estimates that further fund raising will be required in order for the Company to complete the research and development of all of its product candidates including the manufacturing activities of the AP-CD/LD. As a result, there is substantial doubt about the Company’s ability to continue as a going concern within one year after the issuance date of these financial statements The Company plans to fund its future operations through submissions of applications for grants from private funds, license agreements with third parties and raising capital from the public and/or private investors and/or institutional investors. There is no assurance, however, that the Company will be successful in obtaining the level of financing needed for its operations and the research and development of its product candidates. If the Company is unsuccessful in securing sufficient financing, it may need to make the necessary changes to its operations to reduce the level of expenditures in line with available resources. These financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. 3) On April 13, 2018, the Company completed an underwritten public offering of its ordinary shares. The Company raised, together with the exercise of part of the underwriting over-allotment option, a total of approximately $35.0 million, net of underwriting discounts, commissions and other offering expenses. For details see note 7b(4). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Basis of presentation The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (‘U.S. GAAP’). Prior to 2018, the Company prepared its financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), as permitted in the United States (“U.S.”) based on the Company’s status as a foreign private issuer as defined by the U.S. Securities and Exchange Commission (the “SEC”). During 2018, the Company determined that it is no longer qualified as a foreign private issuer under the SEC rules. As a result, as of January 1, 2019, the Company is required to comply with all of the disclosure and reporting requirements applicable to U.S. domestic issuers. b. Principles of consolidation The consolidated financial statements include the accounts of Intec and its Subsidiary. Intercompany balances and transactions have been eliminated upon consolidation. c. Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to the fair value of share-based compensation. d. Functional and presentation currency The U.S. dollar (“dollar”) is the currency of the primary economic environment in which the operations of Intec and the Subsidiary are conducted. Almost all of the Company’s operational expenses are in dollars and the Company’s financings have been provided in dollars. Accordingly, the functional currency of the Company is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i) for transactions — exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation) — historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate. e. Cash and cash equivalents The Company considers as cash equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash. f. Marketable securities The Company’s marketable securities include bonds issued by the State of Israel and corporate bonds with a minimum of A rating by global rating agencies. These assets are recoded at fair value with changes recorded in the statement of operations as “financial income , g. Property and equipment 1) Property and equipment are stated at cost, net of accumulated depreciation. 2) The Company’s property and equipment are depreciated by the straight-line method on the basis of their estimated useful lives. Annual rates of depreciation are as follows: % Computers and peripheral equipment 33 Production and laboratory equipment 10-14 Office furniture and equipment 7-10 Leasehold improvements are depreciated by the straight-line method over the shorter of the expected lease term and the estimated useful life of the improvements. h. Impairment of long-lived assets The Company tests long-lived assets, comprised of property and equipment and other assets, for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value of expected future cash flows (discounted cash flows), or some other fair value measure. As of December 31, 2018, and 2017, the Company did not recognize an impairment loss for its long-lived assets. i. Share-based compensation The Company accounts for employees’ and directors’ share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company elected to recognize compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the accelerated method based on the multiple-option award approach. Performance based awards are expensed over the vesting period when the achievement of performance criteria is probable. When options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted is measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method. The Company has elected to recognize forfeitures as they occur. j. Research and development expenses, net Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based compensation expenses, payroll taxes and other employee benefits, subcontractors and materials used for research and development activities, including clinical trials, manufacturing costs and professional services. All costs associated with research and developments are expensed as incurred. Grants received from Israel Innovation Authority, formerly known as the Office of the Chief Scientist of Israel’s Ministry of Industry, Trade and Labor (the “IIA”), were recognized when the grant becomes receivable, provided there was reasonable assurance that the Company will comply with the conditions attached to the grant and there was reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs are incurred, see note 6c. Research and development expenses, net for the years ended December 31, 2018 and 2017, include participation in research and development expenses in the amount of approximately $829 thousand and approximately $88 thousand, respectively. Clinical trial expenses are charged to research and development expense as incurred. The Company accrue for expenses resulting from obligations under contracts with clinical research organizations (CROs). The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided. The Company’s objective is to reflect the appropriate trial expense in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended. In the event advance payments are made to a CRO, the payments are recorded as other assets, which will be recognized as expenses as services are rendered. k. Income taxes 1) Deferred taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is recognized to the extent that it is more likely than not that the deferred taxes will not be realized in the foreseeable future. 2) Uncertainty in income taxes The Company follows a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates that it is more likely than not that the position will be sustained based on technical merits. If this threshold is met, the second step is to measure the tax position as the largest amount that has more than a 50% likelihood of being realized upon ultimate settlement. l. Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the year divided by the weighted average number of ordinary shares outstanding during the year. 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 following share options and warrants were excluded from the calculation of diluted loss per ordinary share because their effect would have been anti-dilutive for the years presented (share data): December 31, 2018 2017 Outstanding stock options 3,441,670 2,229,870 Warrants - 198,812 m. Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. The marketable securities which are measures at fair value are categorized as Level 1. The carrying amount of the cash and cash equivalents, other receivable and accrued expenses and other liabilities approximates their fair value. n. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, marketable securities and certain receivables. The Company deposits cash and cash equivalents with highly rated financial institutions (Israeli banks). In addition, all marketable securities carry a high rating or are government insured. The Company has not experienced any material credit losses in these accounts and does not believe it is exposed to significant credit risk on these instruments. o. Newly issued accounting pronouncements 1) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU will require the recognition of lease assets and liabilities for operating leases with terms of more than 12 months. Presentation of leases within the consolidated statements of operations and cash flows will be substantially consistent with current accounting guidance. The ASU, which is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, will have a material impact on our consolidated balance sheets. We plan to adopt the ASU effective January 1, 2019 using the modified retrospective transition method and will not restate comparative periods. The modified retrospective transition method requires the cumulative effect, if any, of initially applying the guidance to be recognized as an adjustment to our accumulated deficit as of that adoption date. We plan to elect the package of practical expedients permitted under the transition guidance within the ASU, which allows us to carry forward prior conclusions about lease identification, classification and initial direct costs for leases entered into prior to adoption of Topic 842. Additionally, we plan to not separate lease and non-lease components for all of our leases. For leases with a term of 12 months or less, we plan to elect the short-term lease exemption, which allows us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. While we continue to assess all impacts of adoption, we currently expect to recognize additional lease liabilities of $2.2 million representing the present value of the remaining lease payments at January 1, 2019 and corresponding right-of-use assets of the same amount. See note 6d, Commitments and Contingencies, for information about our lease commitments. 2) In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation” (“Topic 718” or “ASU 2018-07”) to improve the usefulness of information provided to users of financial statements while reducing cost and complexity in financial reporting and provide guidance aligning the measurement and classification for share-based payments to nonemployees with the guidance for share-based payments to employees. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The standard is effective for accounting periods beginning on or after January 1, 2019. The Company believes that the adoption of ASU 2018-07 is not expected to have a material impact on its consolidated financial statements. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3 - MARKETABLE SECURITIES: The Company’s marketable securities include bonds issued by the State of Israel and corporate bonds with a minimum of A rating by global rating agencies. These assets are recoded as fair value with changes recorded in the statement of operations as “financial income, net”, as the Company choose to apply the fair value option. As of December 31, 2018, and 2017, the amount of the marketable securities is approximately $1.3 million and $1.8 million, respectively. The loss, net from changes in marketable securities amounted to approximately $194 thousand in 2018 and the gain, net from changes in marketable securities amounted to approximately $220 thousand in 2017. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4 - PROPERTY AND EQUIPMENT, NET: December 31 2018 2017 U.S. dollars in thousands Cost: Computers and communications equipment $ 237 $ 181 Production and laboratory equipment 7,280 7,121 Office furniture and equipment 203 167 Leasehold improvements 2,029 1,839 Advances payments for property and equipment, see note 6e 8,826 4,381 18,575 13,689 Less: Accumulated depreciation (6,342 ) (5,483 ) Property and equipment, net $ 12,233 $ 8,206 Depreciation expense totaled approximately $859 thousand, and approximately $829 thousand for the years ended December 31, 2018 and 2017, respectively. |
EMPLOYEE SEVERANCE BENEFITS
EMPLOYEE SEVERANCE BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE SEVERANCE BENEFITS | NOTE 5 - EMPLOYEE SEVERANCE BENEFITS The Company is required by Israeli law to make severance payments to Israeli employees upon dismissal or upon termination of employment in certain other circumstances. The Company operates a number of post-employment defined contribution plans. A defined contribution plan is a program that benefits an employee after termination of employment, under which the Company regularly makes fixed payments to a separate and independent entity so that the Company has no legal or constructive obligation to pay additional contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The fund assets are not included in the Company’s financial position. The Company operates pension and severance compensation plans subject to Section 14 of the Israeli Severance Pay Law. The plans are funded through payments to insurance companies or pension funds administered by trustees. In accordance with its terms, the plans meet the definition of a defined contribution plan, as defined above. The Company expects contribution plan expenses in 2019 to amount to approximately $650 thousand. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 6 - COMMITMENTS AND CONTINGENT LIABILITIES: a. Joint venture and exclusive license agreement In June 2000, the Company engaged in a joint venture and exclusive license agreement with Yissum Research and Development Company, owned by the Hebrew University of Jerusalem (“Yissum”). Under the license agreement, the Company has been granted a perpetual and exclusive license to develop, manufacture and market products globally, which are based directly or indirectly on a patent owned by Yissum and based on the intellectual property that has been created as a result of the research that has been conducted by Yissum and financed by the Company under the license agreement. The Company is entitled to grant sub-licenses to third parties and said sub-licenses may be perpetual, and any sublicensee thereunder will not be required to assume any undertaking towards Yissum. Under the license agreement, the Company committed to act for the future development of products that are based on Yissum’s patent and on the initial research activity that was undertaken under the license agreement (the “Products”). Several pending patents have resulted from the development work done by the Company, on its behalf or on behalf of the Company and Yissum jointly. Further, the Company assumed in the license agreement all costs of submitting and managing patent applications, as well as maintaining pending and granted patents. In accordance with an amendment to the license agreement dated July 13, 2005 (which reduced royalty rates), and in exchange for the license, the Company agreed to pay 3% royalties on its overall net income (as defined in the license agreement) from the sale of the Products, to Yissum from the time of the first commercial sale. Furthermore, the Company agreed to pay 15% royalties on sub-licenses on any payment or benefit whatsoever that the Company may receive from sub-licenses. As of the date of issuance of the financial statements, the Company has not yet begun to sell its product candidates and has not yet granted sub-licenses to any party, and, accordingly, no obligation has yet to arise to pay royalties in accordance with the license agreement. The parties are entitled to cancel the license agreement in the following cases: (a) the appointment of a liquidator or a receiver or the submission of an application for liquidation in relation to the other party, which is not cancelled within 180 days; (b) attachment proceedings, debt collecting agency proceedings and similar proceedings in connection with a significant portion of the other party’s assets; (c) the liquidation or bankruptcy of the other party; (d) a significant breach that is not cured within 30 days from the time notice is given. If the license agreement is cancelled except in the case of its cancellation as a result of a breach by Yissum, the rights that were granted under the license will return to Yissum. In accordance with the license agreement, the agreement will remain in force until the later of the expiry of the last patent that partially underlies the Products on a global basis or 15 years from the time of the first commercial sale under the license agreement. b. Cooperation agreements As part of its operations, the Company entered into feasibility agreements with multinational companies for the development of products that combine the Company’s proprietary Accordion Pill platform technology with certain drugs for the treatment of various indications. These agreements sometimes include a mutual possibility of entering into negotiations for the acquisition of a future license for the commercial use of the products that are being developed by the multinational companies under the feasibility agreements. In addition, the multinational companies agreed to reimburse the Company for its expenses, based on milestones that are detailed in the feasibility agreements. This funding is recognized in the statements of operations as a deduction from research and development expenses, as they are incurred. In January 2018, the Company entered into a feasibility and option agreement with Novartis Pharmaceuticals to explore using the Accordion Pill platform for a proprietary Novartis compound. Under the agreement and the research plan, the Company’s activities will be funded by Novartis subject to the achievement of agreed milestones. c. Grants from the IIA The Company has received grants from the IIA for research and development funding and therefore is subject to the provisions of the Israeli Law for the Encouragement of Research, Development and Technological Innovation in the Industry and the regulations and guidelines thereunder (the “Innovation Law”, formerly known as the Law for the Encouragement of Research and Development in Industry). Under the Innovation Law the rate of royalties varies between 3% to 5% computed based on the revenues from the products that their development was also funded by grants from the IIA. Such commitment is up to the amount of grants received (dollar linked), plus interest at annual rate based on LIBOR. Pursuant to the Innovation Law there are restrictions regarding intellectual property and manufacturing outside of Israel, unless approval is received, and additional payments are made to the IIA. At the time the Company received the grants, successful development of the program was not assured and, accordingly, no liability has been recognized in the financial statements. In 2017, the Company recorded a liability in the amount of $2.3 million following a review and assessment by the IIA on the 2016 program. In March 2018, this amount was repaid to the IIA. In February 2018, the Company received an approval from the IIA to manufacture its AP-CD/LD product outside of Israel. As such, the royalties to the IIA will be paid at an increased rate and up to an increased cap amount of three times the total amount of the IIA grants, plus interest accrued thereon, depending on the manufacturing volume to be performed outside Israel. As of December 31, 2018, the Company received from the IIA grants in the total amount of approximately NIS 42.3 million (approximately $11.3 million). The Company did not apply for any grants from the IIA for the years ended December 31, 2018 and 2017. d. Lease Agreements 1) The Company is a tenant under a lease agreement in respect of offices and operational spaces in Jerusalem until June 30, 2021. The lease agreement includes an option to extend the lease term until June 30, 2022 (the “extension option”). In January 2018, the Company amended the lease agreement and added additional operational spaces that will allow the Company to expand its research and development activities. Rent payments are denominated in NIS and linked to the Israeli CPI. To secure the Company’s obligations to the lease agreement in Jerusalem, the Company has granted a bank guarantee to the lessor, which amounted to approximately $135 thousand as of December 31, 2018. The Company also leases office space in Modi’in and New York City. 2) The Company has entered into operating lease agreements for vehicles used by its employees. The lease periods are generally for three years and the payments are linked to the Israeli CPI. To secure the terms of the lease agreements, the Company has made certain prepayments to the leasing company, representing approximately three months of lease payments. Operating lease expenses for the years ended December 31, 2018 and 2017, are as follows: 2018 2017 U.S. dollars in thousands Rental expenses $ 688 $ 520 Vehicles lease expenses $ 214 $ 166 3) Future contractual obligations under the abovementioned operating lease agreements (not including the extension option) are as follows: Amount Year U.S. dollars in 2019 $ 772 2020 721 2021 332 Total $ 1,825 e. Automated Production Line In April 2017, the Company engaged with an international manufacturer for ordering a large-scale automated production line for manufacturing Accordion Pills (the “Production Line”). The order covers engineering, manufacture and assembly of the Production Line. The total cost of the Production Line including additional components amounted to approximately €8.0 million. As of December 31, 2018, the Company transferred payments of approximately €7.4 million (approximately $8.6 million), of which approximately €3.6 million (approximately $4.2 million) was paid during 2018 and recognized a liability in amount of approximately €148 thousand (approximately $170 thousand). As of December 31, 2018, the Production Line has been delivered to the commercial site at Lohmann Therapie-Systeme AG (“LTS”), which is located in Germany, and as of the date of the issuance of the consolidated financial statements the Production Line is in installation phase. For more details regarding the Manufacturing Services with LTS see note f below. f. Establishment of the Commercial Scale Production Capabilities for AP-CD/LD In March 2018, the Company entered into a Term Sheet for Manufacturing Services with LTS for the manufacture of AP-CD/LD, which was subsequently superseded in December 2018 by a Process Development Agreement (the “Agreement”). Under the Agreement, the Company will bear the costs incurred by LTS to acquire the production equipment for AP-CD/LD (“Equipment”) in the amount of approximately €7.0 million, however such amount will later be reimbursed to the Company by LTS in the form of a reduction in the purchase price of the AP-CD/LD product. As of December 31, 2018, the Company transferred payments of approximately €4.3 million (approximately $4.9 million) in costs of the Equipment and recognized a liability in an additional amount of €436 thousand (approximately $499 thousand). As of that date, the Company has recognized the Equipment as non-current other assets. The Agreement contains several termination rights which are expected to be included in a definitive manufacturing and supply agreement. According to the Agreement, upon the Company’s decision to not continue with the project or commercialization of the AP-CD/LD, LTS has the right to (a) purchase the Equipment from the Company in which case it is required to pay to the Company the share of the cost of the Equipment paid by the Company less up to €2.0 million for upgrading facility costs invested by LTS or (b) transfer such Equipment to the Company in which case the Company will pay LTS up to €2.0 million for upgrading facility costs invested by LTS. In addition, the Company may under certain circumstances be required to pay to LTS up to €1.0 million for certain upgrading costs of LTS’ facility upon the earlier of the announcement of AP-CD/LD Phase III results or October 31, 2019. As of December 31, 2018, the Company recognized a liability that was recorded against research and development expenses, net in the amount of approximately €1.65 million (approximately $1.9 million), for LTS’ facility upgrading costs which will be paid to LTS only if the Company decides to not continue with the project or commercialization of AP-CD/LD. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL | NOTE 7 - SHARE CAPITAL: a. Rights of the Company’s ordinary shares Each ordinary share is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available, when and if declared by the Board of Directors. Since its inception, the Company has not declared any dividends. b. Changes in share capital: 1) In August 2015, the Company completed an initial public offering, pursuant to which the Company issued 5,025,000 ordinary shares at a price of $6.00 per ordinary share. In September 2015, the underwriters partially exercised their over-allotment option and purchased 638,750 additional ordinary shares. The total net proceeds were approximately $30.6 million, after deducting underwriting discounts, commissions and other offering expenses in the amount of $3.4 million. 2) In March 2017, the Company entered into subscription agreements for a private placement with several institutional and private investors, in which the Company issued 2,289,638 ordinary shares at a price of $4.4 per ordinary share. The total net proceeds of approximately $9.5 million, after deducting issuance expenses in the amount of $0.5 million. 3) In August 2017, the Company completed an underwritten public offering, pursuant to which the Company issued 12,224,500 ordinary shares including a full exercise by the underwriters of their over-allotment option, at a price of $4.70 per ordinary share. The total net proceeds were approximately $53.6 million, after deducting underwriting discounts, commissions and other offering expenses in the amount of $3.9 million. 4) In April 2018, the Company completed an underwritten public offering, pursuant to which the Company issued 6,750,000 ordinary shares at a price of $5.25 per ordinary share. In May 2018, the underwriters partially exercised their over-allotment option and purchased 400,000 additional ordinary shares. The total net proceeds were approximately $35.0 million, after deducting underwriting discounts, commissions and other offering expenses in the amount of $2.5 million. c. Investment agreement As part of an investment agreement signed in August 2013, the Company issued to several investors warrants exercisable into 198,812 ordinary shares. These warrants were exercisable over a period of four years from the date of their issuance. Under the terms of these warrants, the investors had the right to exercise them into shares through a cashless net-settlement basis. In September 2017, all 198,812 warrants were exercised. 86,579 warrants were exercised into 86,579 ordinary shares in cash at an exercise price of NIS 21.7 for a total consideration of approximately NIS 1.9 million (approximately $531 thousand) and 112,233 warrants were exercised into 15,479 ordinary shares on a cashless basis. d. Share-based compensation: In September 2005, the Company’s board of directors approved a share option plan for grants to directors, employees and consultants. The 2005 plan expired in September 2015. In January 2016, the Company’s board of directors approved a new option plan (the “2015 Plan”). Originally, the maximum number of ordinary shares reserved for issuance under the 2015 Plan was 700,000 ordinary shares for grants to directors, employees and consultants. In July 2016 an increase of 700,000 ordinary shares was approved by the board of directors. In December 2017 and June 2018, an increase of 2,100,000 and 1,000,000 ordinary shares, respectively, was approved by the Company’s shareholders at a general meeting of shareholders. As of December 31, 2018, 1,343,593 shares remain available for grant under the Plan. The 2015 Plan is designed to enable the Company to grant options to purchase ordinary shares under various and different tax regimes including, without limitation: pursuant and subject to Section 102 of the Israeli Tax Ordinance and pursuant and subject to Section 3(i) of the Israeli Tax Ordinance. The awards may be exercised after vesting and in accordance with vesting schedules which will be determined by the Company’s board of directors for each grant. The maximum term of the awards is 10 years. The fair value of each option granted under the 2015 Plan is estimated using the Black-Scholes option pricing method. Expected volatility is based on the Company’s historical volatility. The risk-free interest rate was determined on the basis of the yield rates to maturity of unlinked government bonds bearing a fixed interest rate, whose maturity dates correspond to the expected exercise dates of the options. The Company’s management uses the contractual term or its expectations, as applicable, of each option as its expected life. The expected term of the options granted represents the period of time that granted options are expected to remain outstanding. During the years ended December 31, 2018 and 2017, the Company granted options to employees and directors as follows: Year ended December 31, 2018 Number of Exercise price Vesting Expiration Employees 1,175,000 $ 4.44-$6.67 3 years 7 years Directors 120,000 $ 4.44 3 years 7 years Year ended December 31, 2017 Number of Exercise price Vesting Expiration Employees 230,500 $ 5.46 3-4 years 7 years 165,000 $ 7.44 18-21 months 7 years 580,000 $ 6.70-$8.56 3 years 10 years Directors 120,000 $ 5.32 3 years 10 years 65,000 $ 5.32 9 months 10 years The weighted average fair value of options granted during the years was generally estimated by using the Black-Scholes option-pricing model as follows: Year ended December 31 2018 2017 Weighted average fair value $ 2.37 $ 2.10 The underlying data used for computing the fair value of the options are as follows: Year ended December 31 2018 2017 Value of ordinary share $ 4.20-$6.45 $ 5.15-$8.95 Dividend yield 0% 0% Expected volatility 45.87%-46.47% 37.09%-46.65% Risk-free interest rate 2.25%-2.73% 1.41%-2.16% Expected term 5 years 1.5 years- 10 years The following table summarizes the number of options outstanding with exercise price in NIS for the years ended December 31, 2018 and 2017, and related information: Employees and Consultants Number of NIS (1) Number of NIS (1) Outstanding at January 1, 2017 418,484 38.13 8,035 0.5 Exercised (377 ) 0.5 - - Forfeited (2,538 ) 32.47 - - Expired (66,417 ) 79.88 - - Outstanding at December 31, 2017 349,152 30.27 8,035 0.5 Forfeited (400 ) 34.24 - - Expired (53,300 ) 45.48 - - Outstanding at December 31, 2018 295,452 27.52 8,035 0.5 The following table summarizes the number of options outstanding with exercise price in USD for the years ended December 31, 2018 and 2017, and related information: Employees and directors Number of USD (2) Outstanding at January 1, 2017 794,333 4.23 Granted 1,160,500 6.66 Exercised (11,006 ) 4.14 Forfeited (70,832 ) 4.10 Expired (312 ) 4.14 Outstanding at December 31, 2017 1,872,683 5.74 Granted 1,295,000 6.01 Exercised (7,218 ) 4.14 Forfeited (22,282 ) 6.64 Outstanding at December 31, 2018 3,138,183 5.85 (1) Weighted average price in NIS per share. (2) Weighted average price in USD per share. The following table summarizes information concerning outstanding and exercisable options with exercise price in NIS as of December 31, 2018: December 31, 2018 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted 0.5 136,445 0.69 8,051 0.61 32.47-39.55 45,000 1.90 45,000 1.90 48.91 39,420 1.50 39,420 1.50 52.35-60.42 82,622 0.68 33,622 0.73 303,487 126,093 The following table summarizes information concerning outstanding and exercisable options with exercise price in USD as of December 31, 2018: December 31, 2018 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted 3.46 68,250 0.69 42,657 0.69 3.53 224,478 7.38 149,652 7.38 4.14-4.47 526,455 7.04 142,033 7.32 5.19-5.46 543,500 6.59 190,468 7.06 6.0-6.7 1,410,500 6.76 201,667 7.36 7.44 165,000 0.70 86,385 0.70 8.56 200,000 8.91 66,667 8.91 3,138,183 879,529 The aggregate intrinsic value of the total outstanding and exercisable options as of December 31, 2018, is $6.5 million and $1.9 million respectively. The following table illustrates the effect of share-based compensation on the statements of operations: Year ended 2018 2017 U.S. dollars in Research and development expenses, net $ 1,732 $ 362 General and administrative expenses 1,495 841 $ 3,227 $ 1,203 |
SUPPLEMENTARY FINANCIAL STATEME
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Financial Statement Information | |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | NOTE 8 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION: Balance sheets: December 31 2018 2017 U.S. dollars in thousands a. Prepaid expenses and other receivable: Prepaid expenses $ 227 $ 208 Advances to suppliers 728 439 Institutions 1,683 436 Interest receivable 118 42 Other receivables 230 - $ 2,986 $ 1,125 b. Accounts payable and accruals - other: Accrual for repayment of grants to IIA, see note 6c $ - $ 2,300 Expenses payable 3,400 724 Salary and related expenses, including social security and other taxes 1,078 588 Accrual for vacation days and recreation pay for employees 309 248 Other 20 33 $ 4,807 $ 3,893 Statements of operations: Year ended 2018 2017 U.S. dollars in thousands c. Financial income (expenses), net: Financial income: Interest on cash and cash equivalents $ 852 $ 286 Gains from changes in fair value of marketable securities - 220 Gain on changes in exchange rates - 70 $ 852 $ 576 Financial expenses - Loss from changes in exchange rates $ (747 ) $ - Losses from changes in fair value of marketable securities (194 ) - Bank fees (23 ) (17 ) $ (964 ) $ (17 ) Financial income (expenses), net $ (112 ) $ 559 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 9 - TAXES ON INCOME: a. Tax rates 1) Income from Israel is taxed at a regular rate. Capital gains are taxed at the standard corporate tax rate. In December 2016, the Economic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the 2017 and 2018 Budget Year), 2016 was published, introducing a gradual reduction in corporate tax rate from 25% to 23%. However, the law also included a temporary provision setting the corporate tax rate in 2017 at 24%. As a result, the corporate tax rate in 2017 was 24% and in 2018 and thereafter reduced to 23%. For tax benefits in Israel see note b below. 2) Income of the subsidiary is taxed according to the federal tax laws in the US and the relevant state laws. The relevant U.S. statutory tax rates for 2018 and 2017 were 21% and 35%, respectively. The relevant state tax rate for 2018 and 2017 was approximately 7%. The U.S. Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduced the U.S. federal statutory tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. b. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 in Israel (the “ECI Law”) Under the ECI Law, Intec may be entitled to tax benefits, by virtue of its status as a “Benefited Enterprise”, which was awarded to Intec in October 2007. Intec received the status of a “plant under establishment” in Development Area A in a tax-exempt track, subject to compliance with the applicable requirements by the Law. As of December 31, 2018, Intec has not yet generated operating income that will allow it to benefit from the tax benefits under the ECI Law. The tax benefits under the ECI Law will apply for a period of up to ten years from the first year in which taxable income will be generated and are scheduled to expire at the end of 2023. c. Tax assessments Intec has tax assessments that are considered to be final through tax year 2013. d. Losses for tax purposes carried forward to future years As of December 31, 2018, Intec had approximately $107.6 million of net carry forward tax losses which are available to reduce future taxable income with no limited period of use. e. Subsidiary tax liability During 2018 and 2017, the Subsidiary incurred a tax expense in the amount of $103 thousand and $29 thousand, respectively. f. Deferred income taxes: December 31 2018 2017 U.S. dollars in thousands In respect of: Net operating loss carry forward $ 24,739 $ 17,982 Research and Development expenses 6,705 4,057 Issuance costs 734 674 Other 787 61 Less—valuation allowance (32,684 ) (22,774 ) Net deferred tax assets $ 281 $ - The change in valuation allowance for the years ended December 31, 2018 and 2017 were as follows: December 31 2018 2017 U.S. dollars in thousands Balance at the beginning of the year $ 22,774 $ 15,344 Changes during the year 9,910 7,430 Balance at the end of the year $ 32,684 $ 22,774 g. Loss before income tax The components of loss before income tax are as follows: December 31 2018 2017 U.S. dollars in thousands Income (loss) before income tax: Intec $ (43,943 ) $ (28,928 ) Subsidiary 503 48 $ (43,440 ) $ (28,880 ) h. Current taxes on income The difference between the statutory tax rate of the Company and the effective rate results virtually all from the changes in valuation allowance in respect of carryforward tax losses and research and development expenses due to the uncertainty of the realization of such tax benefits i. ASC No. 740, Income Taxes, requires significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position. Changes in judgment as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate and consequently, affect the operating results of the Company. The following table summarizes the activity of the Company unrecognized tax benefits: December 31 2018 U.S. dollars in thousands Balance at the beginning of the year $ - Increase in uncertain tax positions for the current year 309 Balance at the end of the year $ 309 The Company does not expect unrecognized tax expenses to change significantly over the next 12 months. |
EVENTS SUBSEQUENT TO DECEMBER 3
EVENTS SUBSEQUENT TO DECEMBER 31, 2018 | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
EVENTS SUBSEQUENT TO DECEMBER 31, 2018 | NOTE 10 - EVENTS SUBSEQUENT TO DECEMBER 31, 2018 On January 22, 2019, the board of directors approved a grant of options to purchase an aggregate of 940,000 ordinary shares to the Company’s executive officers and employees. Each option shall be exercisable at an exercise price of $7.63 per share. The options will vest over a three-year period, with one-third of the options vesting at the end of the first anniversary of the date of grant, and the remaining options vesting in eight equal quarterly installments following the first anniversary of the grant date. The options will expire seven years after the date of grant. The value of the benefit in respect of the said options, as calculated on the grant date, is approximately $3.4 million. In addition, the board of directors approved a grant of options to purchase 125,000 ordinary shares to the Company’s Chief Executive Officer which shall be granted following the approval of the Company’s shareholders at a general meeting of shareholders. Each option shall be exercisable at an exercise price per share equal to the average closing sale price of the Company’s ordinary shares on the NASDAQ Capital Market over the 30 trading day period prior to the date of the general meeting of shareholders, or the fair market value of one of our ordinary shares on the date prior to the general meeting, whichever amount is greater. These options will vest over a three-year period, with one third of the options vesting at the end of the first anniversary of the date of grant, and the remaining options vesting in eight equal quarterly installments following the first anniversary of the grant date. The options will expire seven years after the date of grant. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | a. Basis of presentation The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (‘U.S. GAAP’). Prior to 2018, the Company prepared its financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), as permitted in the United States (“U.S.”) based on the Company’s status as a foreign private issuer as defined by the U.S. Securities and Exchange Commission (the “SEC”). During 2018, the Company determined that it is no longer qualified as a foreign private issuer under the SEC rules. As a result, as of January 1, 2019, the Company is required to comply with all of the disclosure and reporting requirements applicable to U.S. domestic issuers. |
Principles of consolidation | b. Principles of consolidation The consolidated financial statements include the accounts of Intec and its Subsidiary. Intercompany balances and transactions have been eliminated upon consolidation. |
Use of estimates in the preparation of financial statements | c. Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to the fair value of share-based compensation. |
Functional and presentation currency | d. Functional and presentation currency The U.S. dollar (“dollar”) is the currency of the primary economic environment in which the operations of Intec and the Subsidiary are conducted. Almost all of the Company’s operational expenses are in dollars and the Company’s financings have been provided in dollars. Accordingly, the functional currency of the Company is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i) for transactions — exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation) — historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate. |
Cash and cash equivalents | e. Cash and cash equivalents The Company considers as cash equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash. |
Marketable securities | f. Marketable securities The Company’s marketable securities include bonds issued by the State of Israel and corporate bonds with a minimum of A rating by global rating agencies. These assets are recoded at fair value with changes recorded in the statement of operations as “financial income , |
Property and equipment | g. Property and equipment 1) Property and equipment are stated at cost, net of accumulated depreciation. 2) The Company’s property and equipment are depreciated by the straight-line method on the basis of their estimated useful lives. Annual rates of depreciation are as follows: % Computers and peripheral equipment 33 Production and laboratory equipment 10-14 Office furniture and equipment 7-10 Leasehold improvements are depreciated by the straight-line method over the shorter of the expected lease term and the estimated useful life of the improvements. |
Impairment of long-lived assets | h. Impairment of long-lived assets The Company tests long-lived assets, comprised of property and equipment and other assets, for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value of expected future cash flows (discounted cash flows), or some other fair value measure. As of December 31, 2018, and 2017, the Company did not recognize an impairment loss for its long-lived assets. |
Share-based compensation | i. Share-based compensation The Company accounts for employees’ and directors’ share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company elected to recognize compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the accelerated method based on the multiple-option award approach. Performance based awards are expensed over the vesting period when the achievement of performance criteria is probable. When options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted is measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method. The Company has elected to recognize forfeitures as they occur. |
Research and development expenses, net | j. Research and development expenses, net Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based compensation expenses, payroll taxes and other employee benefits, subcontractors and materials used for research and development activities, including clinical trials, manufacturing costs and professional services. All costs associated with research and developments are expensed as incurred. Grants received from Israel Innovation Authority, formerly known as the Office of the Chief Scientist of Israel’s Ministry of Industry, Trade and Labor (the “IIA”), were recognized when the grant becomes receivable, provided there was reasonable assurance that the Company will comply with the conditions attached to the grant and there was reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs are incurred, see note 6c. Research and development expenses, net for the years ended December 31, 2018 and 2017, include participation in research and development expenses in the amount of approximately $829 thousand and approximately $88 thousand, respectively. Clinical trial expenses are charged to research and development expense as incurred. The Company accrue for expenses resulting from obligations under contracts with clinical research organizations (CROs). The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided. The Company’s objective is to reflect the appropriate trial expense in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended. In the event advance payments are made to a CRO, the payments are recorded as other assets, which will be recognized as expenses as services are rendered. |
Income taxes | k. Income taxes 1) Deferred taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is recognized to the extent that it is more likely than not that the deferred taxes will not be realized in the foreseeable future. 2) Uncertainty in income taxes The Company follows a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates that it is more likely than not that the position will be sustained based on technical merits. If this threshold is met, the second step is to measure the tax position as the largest amount that has more than a 50% likelihood of being realized upon ultimate settlement. |
Loss per share | l. Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the year divided by the weighted average number of ordinary shares outstanding during the year. 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 following share options and warrants were excluded from the calculation of diluted loss per ordinary share because their effect would have been anti-dilutive for the years presented (share data): December 31, 2018 2017 Outstanding stock options 3,441,670 2,229,870 Warrants - 198,812 |
Fair value measurement | m. Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. The marketable securities which are measures at fair value are categorized as Level 1. The carrying amount of the cash and cash equivalents, other receivable and accrued expenses and other liabilities approximates their fair value. |
Concentration of credit risks | n. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, marketable securities and certain receivables. The Company deposits cash and cash equivalents with highly rated financial institutions (Israeli banks). In addition, all marketable securities carry a high rating or are government insured. The Company has not experienced any material credit losses in these accounts and does not believe it is exposed to significant credit risk on these instruments. |
Newly issued accounting pronouncements | o. Newly issued accounting pronouncements 1) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU will require the recognition of lease assets and liabilities for operating leases with terms of more than 12 months. Presentation of leases within the consolidated statements of operations and cash flows will be substantially consistent with current accounting guidance. The ASU, which is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, will have a material impact on our consolidated balance sheets. We plan to adopt the ASU effective January 1, 2019 using the modified retrospective transition method and will not restate comparative periods. The modified retrospective transition method requires the cumulative effect, if any, of initially applying the guidance to be recognized as an adjustment to our accumulated deficit as of that adoption date. We plan to elect the package of practical expedients permitted under the transition guidance within the ASU, which allows us to carry forward prior conclusions about lease identification, classification and initial direct costs for leases entered into prior to adoption of Topic 842. Additionally, we plan to not separate lease and non-lease components for all of our leases. For leases with a term of 12 months or less, we plan to elect the short-term lease exemption, which allows us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. While we continue to assess all impacts of adoption, we currently expect to recognize additional lease liabilities of $2.2 million representing the present value of the remaining lease payments at January 1, 2019 and corresponding right-of-use assets of the same amount. See note 6d, Commitments and Contingencies, for information about our lease commitments. 2) In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation” (“Topic 718” or “ASU 2018-07”) to improve the usefulness of information provided to users of financial statements while reducing cost and complexity in financial reporting and provide guidance aligning the measurement and classification for share-based payments to nonemployees with the guidance for share-based payments to employees. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The standard is effective for accounting periods beginning on or after January 1, 2019. The Company believes that the adoption of ASU 2018-07 is not expected to have a material impact on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of annual rates of depreciation of property and equipment | Annual rates of depreciation are as follows: % Computers and peripheral equipment 33 Production and laboratory equipment 10-14 Office furniture and equipment 7-10 |
Schedule of anti-dilutive securities | The following share options and warrants were excluded from the calculation of diluted loss per ordinary share because their effect would have been anti-dilutive for the years presented (share data): December 31, 2018 2017 Outstanding stock options 3,441,670 2,229,870 Warrants - 198,812 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31 2018 2017 U.S. dollars in thousands Cost: Computers and communications equipment $ 237 $ 181 Production and laboratory equipment 7,280 7,121 Office furniture and equipment 203 167 Leasehold improvements 2,029 1,839 Advances payments for property and equipment, see note 6e 8,826 4,381 18,575 13,689 Less: Accumulated depreciation (6,342 ) (5,483 ) Property and equipment, net $ 12,233 $ 8,206 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of operating lease expenses | Operating lease expenses for the years ended December 31, 2018 and 2017, are as follows: 2018 2017 U.S. dollars in thousands Rental expenses $ 688 $ 520 Vehicles lease expenses $ 214 $ 166 |
Schedule of future contractual obligations of operating lease agreements | Future contractual obligations under the abovementioned operating lease agreements (not including the extension option) are as follows: Amount Year U.S. dollars in 2019 $ 772 2020 721 2021 332 Total $ 1,825 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity Note [Abstract] | |
Schedule of options granted to employees and directors | During the years ended December 31, 2018 and 2017, the Company granted options to employees and directors as follows: Year ended December 31, 2018 Number of Exercise price Vesting Expiration Employees 1,175,000 $ 4.44-$6.67 3 years 7 years Directors 120,000 $ 4.44 3 years 7 years Year ended December 31, 2017 Number of Exercise price Vesting Expiration Employees 230,500 $ 5.46 3-4 years 7 years 165,000 $ 7.44 18-21 months 7 years 580,000 $ 6.70-$8.56 3 years 10 years Directors 120,000 $ 5.32 3 years 10 years 65,000 $ 5.32 9 months 10 years |
Schedule of weighted average fair value of options granted | The weighted average fair value of options granted during the years was generally estimated by using the Black-Scholes option-pricing model as follows: Year ended December 31 2018 2017 Weighted average fair value $ 2.37 $ 2.10 |
Schedule of underlying data used for computing the fair value of the options | The underlying data used for computing the fair value of the options are as follows: Year ended December 31 2018 2017 Value of ordinary share $ 4.20-$6.45 $ 5.15-$8.95 Dividend yield 0% 0% Expected volatility 45.87%-46.47% 37.09%-46.65% Risk-free interest rate 2.25%-2.73% 1.41%-2.16% Expected term 5 years 1.5 years- 10 years |
Schedule of number of options outstanding | The following table summarizes the number of options outstanding with exercise price in NIS for the years ended December 31, 2018 and 2017, and related information: Employees and Consultants Number of NIS (1) Number of NIS (1) Outstanding at January 1, 2017 418,484 38.13 8,035 0.5 Exercised (377 ) 0.5 - - Forfeited (2,538 ) 32.47 - - Expired (66,417 ) 79.88 - - Outstanding at December 31, 2017 349,152 30.27 8,035 0.5 Forfeited (400 ) 34.24 - - Expired (53,300 ) 45.48 - - Outstanding at December 31, 2018 295,452 27.52 8,035 0.5 The following table summarizes the number of options outstanding with exercise price in USD for the years ended December 31, 2018 and 2017, and related information: Employees and directors Number of USD (2) Outstanding at January 1, 2017 794,333 4.23 Granted 1,160,500 6.66 Exercised (11,006 ) 4.14 Forfeited (70,832 ) 4.10 Expired (312 ) 4.14 Outstanding at December 31, 2017 1,872,683 5.74 Granted 1,295,000 6.01 Exercised (7,218 ) 4.14 Forfeited (22,282 ) 6.64 Outstanding at December 31, 2018 3,138,183 5.85 (1) Weighted average price in NIS per share. (2) Weighted average price in USD per share. |
Summary of the information concerning outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options with exercise price in NIS as of December 31, 2018: December 31, 2018 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted 0.5 136,445 0.69 8,051 0.61 32.47-39.55 45,000 1.90 45,000 1.90 48.91 39,420 1.50 39,420 1.50 52.35-60.42 82,622 0.68 33,622 0.73 303,487 126,093 The following table summarizes information concerning outstanding and exercisable options with exercise price in USD as of December 31, 2018: December 31, 2018 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted 3.46 68,250 0.69 42,657 0.69 3.53 224,478 7.38 149,652 7.38 4.14-4.47 526,455 7.04 142,033 7.32 5.19-5.46 543,500 6.59 190,468 7.06 6.0-6.7 1,410,500 6.76 201,667 7.36 7.44 165,000 0.70 86,385 0.70 8.56 200,000 8.91 66,667 8.91 3,138,183 879,529 |
Schedule of effect of share-based compensation | The following table illustrates the effect of share-based compensation on the statements of operations: Year ended 2018 2017 U.S. dollars in Research and development expenses, net $ 1,732 $ 362 General and administrative expenses 1,495 841 $ 3,227 $ 1,203 |
SUPPLEMENTARY FINANCIAL STATE_2
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Financial Statement Information | |
Schedule of supplementary financial statement information | Balance sheets: December 31 2018 2017 U.S. dollars in thousands a. Prepaid expenses and other receivable: Prepaid expenses $ 227 $ 208 Advances to suppliers 728 439 Institutions 1,683 436 Interest receivable 118 42 Other receivables 230 - $ 2,986 $ 1,125 b. Accounts payable and accruals - other: Accrual for repayment of grants to IIA, see note 6c $ - $ 2,300 Expenses payable 3,400 724 Salary and related expenses, including social security and other taxes 1,078 588 Accrual for vacation days and recreation pay for employees 309 248 Other 20 33 $ 4,807 $ 3,893 Statements of operations: Year ended 2018 2017 U.S. dollars in thousands c. Financial income (expenses), net: Financial income: Interest on cash and cash equivalents $ 852 $ 286 Gains from changes in fair value of marketable securities - 220 Gain on changes in exchange rates - 70 $ 852 $ 576 Financial expenses - Loss from changes in exchange rates $ (747 ) $ - Losses from changes in fair value of marketable securities (194 ) - Bank fees (23 ) (17 ) $ (964 ) $ (17 ) Financial income (expenses), net $ (112 ) $ 559 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | f. Deferred income taxes: December 31 2018 2017 U.S. dollars in thousands In respect of: Net operating loss carry forward $ 24,739 $ 17,982 Research and Development expenses 6,705 4,057 Issuance costs 734 674 Other 787 61 Less—valuation allowance (32,684 ) (22,774 ) Net deferred tax assets $ 281 $ - |
Schedule of change in valuation allowance | The change in valuation allowance for the years ended December 31, 2018 and 2017 were as follows: December 31 2018 2017 U.S. dollars in thousands Balance at the beginning of the year $ 22,774 $ 15,344 Changes during the year 9,910 7,430 Balance at the end of the year $ 32,684 $ 22,774 |
Schedule of components of loss before income tax | The components of loss before income tax are as follows: December 31 2018 2017 U.S. dollars in thousands Income (loss) before income tax: Intec $ (43,943 ) $ (28,928 ) Subsidiary 503 48 $ (43,440 ) $ (28,880 ) |
Schedule of unrecognized tax benefits | The following table summarizes the activity of the Company unrecognized tax benefits: December 31 2018 U.S. dollars in thousands Balance at the beginning of the year $ - Increase in uncertain tax positions for the current year 309 Balance at the end of the year $ 309 |
NATURE OF OPERATIONS (Narrative
NATURE OF OPERATIONS (Narrative) (Details) - USD ($) $ in Thousands | Apr. 13, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Net loss | $ (43,543) | $ (28,909) | |
Accumulated deficit | $ (141,824) | $ (98,281) | |
Underwritten public offering [Member] | |||
Proceeds from issuance of shares net | $ 35,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Annual Rates of Depreciation of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computers and Peripheral Equipment [Member] | |
Rate of depreciation | 33.00% |
Production and Laboratory Equipment [Member] | Minimum [Member] | |
Rate of depreciation | 10.00% |
Production and Laboratory Equipment [Member] | Maximum [Member] | |
Rate of depreciation | 14.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Rate of depreciation | 7.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Rate of depreciation | 10.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Anti-Dilutive Securities) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding stock options [Member] | ||
Antidilutive securities excluded from computation of net loss per share | 3,441,670 | 2,229,870 |
Warrants [Member] | ||
Antidilutive securities excluded from computation of net loss per share | 198,812 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Newly issued accounting pronouncements [Member] | ||
Additional lease liabilities expected to be recognized | $ 2,200 | |
Research and development expenses [Member] | ||
Participation in research and development expenses | $ 829 | $ 88 |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities | $ 1,300 | $ 1,800 |
Loss (gain) from changes in marketable securities | $ 194 | $ (220) |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cost: | $ 18,575 | $ 13,689 |
Less: Accumulated depreciation | (6,342) | (5,483) |
Property and equipment, net | 12,233 | 8,206 |
Computers and Communications Equipment [Member] | ||
Cost: | 237 | 181 |
Production and Laboratory Equipment [Member] | ||
Cost: | 7,280 | 7,121 |
Office Furniture and Equipment [Member] | ||
Cost: | 203 | 167 |
Leasehold Improvements [Member] | ||
Cost: | 2,029 | 1,839 |
Advances Payments for Property and Equipment [Member] | ||
Cost: | $ 8,826 | $ 4,381 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 859 | $ 829 |
EMPLOYEE SEVERANCE BENEFITS (Na
EMPLOYEE SEVERANCE BENEFITS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Forecast [Member] | |
Expected contribution plan expenses | $ 650 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule of Operating lease expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expenses | $ 688 | $ 520 |
Vehicles lease expenses | $ 214 | $ 166 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule of future contractual obligations of operating lease agreements) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 772 |
2,020 | 721 |
2,021 | 332 |
Total | $ 1,825 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - Joint venture) (Details) - License Agreement [Member] - Hebrew University of Jerusalem (Yissum Research and Development) ([Member] | Jul. 13, 2005 |
Description of agreement term | Under the license agreement, the Company committed to act for the future development of products that are based on Yissum's patent and on the initial research activity that was undertaken under the license agreement (the "Products"). Several pending patents have resulted from the development work done by the Company, on its behalf or on behalf of the Company and Yissum jointly. Further, the Company assumed in the license agreement all costs of submitting and managing patent applications, as well as maintaining pending and granted patents. |
Royalties rate paid based on the overall net income from the sale of the products | 3.00% |
Royalties rate paid based on any payment or benefit received from sub-licenses | 15.00% |
Description of termination of agreement term | The parties are entitled to cancel the license agreement in the following cases: (a) the appointment of a liquidator or a receiver or the submission of an application for liquidation in relation to the other party, which is not cancelled within 180 days; (b) attachment proceedings, debt collecting agency proceedings and similar proceedings in connection with a significant portion of the other party's assets; (c) the liquidation or bankruptcy of the other party; (d) a significant breach that is not cured within 30 days from the time notice is given. If the license agreement is cancelled except in the case of its cancellation as a result of a breach by Yissum, the rights that were granted under the license will return to Yissum. |
Description of maturity term | The agreement will remain in force until the later of the expiry of the last patent that partially underlies the Products on a global basis or 15 years from the time of the first commercial sale under the license agreement. |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - Grants from IIA) (Details) ₪ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018ILS (₪) | Dec. 31, 2017USD ($) |
Liability following review and assessment by the IIA on the 2016 program | $ 2,300 | ||
Israel Innovation Authority [Member] | |||
Total grants received | $ 11,300 | ||
Israel Innovation Authority [Member] | NIS | |||
Total grants received | ₪ | ₪ 42,300 | ||
Israel Innovation Authority [Member] | Minimum [Member] | |||
Royalties rate | 3.00% | 3.00% | |
Israel Innovation Authority [Member] | Maximum [Member] | |||
Royalties rate | 5.00% | 5.00% |
COMMITMENTS AND CONTINGENT LI_7
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - Lease Agreements) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Lease agreements- Jerusalem [Member] | |
Bank guarantee | $ 135 |
COMMITMENTS AND CONTINGENT LI_8
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - Automated Production Line) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2017EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Automated Production Line [Member] | |||
Advances payments for automated production line | $ | $ 8,600 | ||
Advance paid for automated production line | $ | 4,200 | ||
Additional amount recognized as liability | $ | $ 170 | ||
Euro | Automated Production Line [Member] | |||
Advances payments for automated production line | € 7,400 | ||
Advance paid for automated production line | 3,600 | ||
Additional amount recognized as liability | € 148 | ||
Automated Production Line [Member] | International Manufacturer (the ''Manufacturer'') [Member] | Euro | |||
Total cost of automated production line including additional components | € 8,000 |
COMMITMENTS AND CONTINGENT LI_9
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - Establishment of the Commercial Scale Production Capabilities) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
LTS Production equipment agreement [Member] | |||
Advances payments for production equipment | $ | $ 4,900 | ||
Additional amount recognized as liability in respect to production equipment | $ | 499 | ||
Euro | Upon the Company's decision to not continue with the project or commercialization of the AP-CD/LD [Member] | |||
Maximum amount of upgrading facility costs invested by LTS to be offset from the production equipment cost to be paid by LTS in case of production equipment purchase by LTS | € 2,000 | ||
Maximum amount to be paid to LTS for upgrading facility costs in case of equipment transfer to the company | 2,000 | ||
Euro | LTS Production equipment agreement [Member] | |||
Total cost of production equipment | € 7,000 | ||
Advances payments for production equipment | 4,300 | ||
Additional amount recognized as liability in respect to production equipment | 436 | ||
Lohmann Therapie-Systeme [Member] | |||
Additional amount recognized as liability in respect to facility upgrading costs | $ | 1,900 | ||
Lohmann Therapie-Systeme [Member] | Euro | |||
Additional amount recognized as liability in respect to facility upgrading costs | $ | $ 1,650 | ||
Maximum additional amount to be paid to LTS by the Company under certain circumstances for certain upgrading facility costs upon the earlier of the announcement of AP-CD/LD Phase III results or October 31, 2019 | € 1,000 |
SHARE CAPITAL (Schedule of Opt
SHARE CAPITAL (Schedule of Options Granted to Employees and Directors) (Details) - Share options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options granted | 1,175,000 | 230,500 |
Exercise price range, minimum | $ 4.44 | |
Exercise price range, maximum | $ 6.67 | $ 5.46 |
Vesting period range, minimum | 3 years | |
Vesting period range, maximum | 3 years | 4 years |
Expiration | 7 years | 7 years |
Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options granted | 165,000 | |
Exercise price range, maximum | $ 7.44 | |
Vesting period range, minimum | 18 months | |
Vesting period range, maximum | 21 months | |
Expiration | 7 years | |
Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options granted | 580,000 | |
Exercise price range, minimum | $ 6.70 | |
Exercise price range, maximum | $ 8.56 | |
Vesting period range, maximum | 3 years | |
Expiration | 10 years | |
Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options granted | 120,000 | 120,000 |
Exercise price range, maximum | $ 4.44 | $ 5.32 |
Vesting period range, maximum | 3 years | 3 years |
Expiration | 7 years | 10 years |
Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options granted | 65,000 | |
Exercise price range, maximum | $ 5.32 | |
Vesting period range, maximum | 9 months | |
Expiration | 10 years |
SHARE CAPITAL (Schedule of Weig
SHARE CAPITAL (Schedule of Weighted Average Fair Value of Options Granted) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Weighted average fair value of options | ||
Weighted average fair value of options granted | $ 2.37 | $ 2.10 |
SHARE CAPITAL (Schedule of Unde
SHARE CAPITAL (Schedule of Underlying Data Used for Computing the Fair Value of the Options) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Dividend yield | 0.00% | 0.00% |
Expected term | 5 years | |
Minimum [Member] | ||
Value of ordinary share | $ 4.20 | $ 5.15 |
Expected volatility | 45.87% | 37.09% |
Risk-free interest rate | 2.25% | 1.41% |
Expected term | 1 year 6 months | |
Maximum [Member] | ||
Value of ordinary share | $ 6.45 | $ 8.95 |
Expected volatility | 46.47% | 46.65% |
Risk-free interest rate | 2.73% | 2.16% |
Expected term | 10 years |
SHARE CAPITAL (Summary of the N
SHARE CAPITAL (Summary of the Number of Options Outstanding Under the Plan in NIS) (Details) - NIS - ₪ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Employees and Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of period | 349,152 | 418,484 | ||
Exercised | (377) | |||
Forfeited | (400) | (2,538) | ||
Expired | (53,300) | (66,417) | ||
Outstanding at end of period | 295,452 | 349,152 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period | [1] | ₪ 30.27 | ₪ 38.13 | |
Exercised | 0.5 | [1] | ||
Forfeited | [1] | 34.24 | 32.47 | |
Expired | [1] | 45.48 | 79.88 | |
Outstanding at end of period | [1] | ₪ 27.52 | ₪ 30.27 | |
Consultants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of period | 8,035 | 8,035 | ||
Exercised | ||||
Forfeited | ||||
Expired | ||||
Outstanding at end of period | 8,035 | 8,035 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period | [1] | ₪ 0.5 | ₪ 0.5 | |
Exercised | [1] | |||
Forfeited | [1] | |||
Expired | [1] | |||
Outstanding at end of period | [1] | ₪ 0.5 | ₪ 0.5 | |
[1] | Weighted average price in NIS per share. |
SHARE CAPITAL (Summary of the_2
SHARE CAPITAL (Summary of the Number of Options Outstanding Under the Plan in USD) (Details) - Employees and Directors [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period | 1,872,683 | 794,333 | |
Granted | 1,295,000 | 1,160,500 | |
Exercised | (7,218) | (11,006) | |
Forfeited | (22,282) | (70,832) | |
Expired | (312) | ||
Outstanding at end of period | 3,138,183 | 1,872,683 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of period | [1] | $ 5.74 | $ 4.23 |
Granted | [1] | 6.01 | 6.66 |
Exercised | [1] | 4.14 | 4.14 |
Forfeited | [1] | 6.64 | 4.10 |
Expired | [1] | 4.14 | |
Outstanding at end of period | [1] | $ 5.85 | $ 5.74 |
[1] | Weighted average price in USD per share. |
SHARE CAPITAL (Summary of the_3
SHARE CAPITAL (Summary of the Number of Options Outstanding and Options Exercisable Under the Plan in NIS) (Details) - NIS | Dec. 31, 2018₪ / sharesshares |
Exercise Price 0.5 [Member] | |
Options outstanding, Exercise price per share | ₪ / shares | ₪ 0.5 |
Options outstanding, Number of options outstanding at the end of year | 136,445 |
Options outstanding, Weighted average remaining contractual life | 8 months 9 days |
Options exercisable, Number of options exercisable at the end of year | 8,051 |
Options exercisable, Weighted average remaining contractual life | 7 months 10 days |
Exercise Price 32.47 To 39.55 [Member] | |
Exercise price minimum | ₪ / shares | ₪ 32.47 |
Exercise price maximum | ₪ / shares | ₪ 39.55 |
Options outstanding, Number of options outstanding at the end of year | 45,000 |
Options outstanding, Weighted average remaining contractual life | 1 year 10 months 25 days |
Options exercisable, Number of options exercisable at the end of year | 45,000 |
Options exercisable, Weighted average remaining contractual life | 1 year 10 months 25 days |
Exercise Price 48.91 [Member] | |
Options outstanding, Exercise price per share | ₪ / shares | ₪ 48.91 |
Options outstanding, Number of options outstanding at the end of year | 39,420 |
Options outstanding, Weighted average remaining contractual life | 1 year 6 months |
Options exercisable, Number of options exercisable at the end of year | 39,420 |
Options exercisable, Weighted average remaining contractual life | 1 year 6 months |
Exercise Price 52.35 To 60.42 [Member] | |
Exercise price minimum | ₪ / shares | ₪ 52.35 |
Exercise price maximum | ₪ / shares | ₪ 60.42 |
Options outstanding, Number of options outstanding at the end of year | 82,622 |
Options outstanding, Weighted average remaining contractual life | 8 months 5 days |
Options exercisable, Number of options exercisable at the end of year | 33,622 |
Options exercisable, Weighted average remaining contractual life | 8 months 23 days |
Total [Member] | |
Options outstanding, Number of options outstanding at the end of year | 303,487 |
Options exercisable, Number of options exercisable at the end of year | 126,093 |
SHARE CAPITAL (Summary of the_4
SHARE CAPITAL (Summary of the Number of Options Outstanding and Options Exercisable Under the Plan in USD) (Details) | Dec. 31, 2018$ / sharesshares |
Exercise Price 3.46 [Member] | |
Exercise price maximum | $ / shares | $ 3.46 |
Options outstanding, Number of options outstanding at the end of year | 68,250 |
Options outstanding, Weighted average remaining contractual life | 8 months 9 days |
Options exercisable, Number of options exercisable at the end of year | 42,657 |
Options exercisable, Weighted average remaining contractual life | 8 months 9 days |
Exercise Price 3.53 [Member] | |
Exercise price maximum | $ / shares | $ 3.53 |
Options outstanding, Number of options outstanding at the end of year | 224,478 |
Options outstanding, Weighted average remaining contractual life | 7 years 4 months 17 days |
Options exercisable, Number of options exercisable at the end of year | 149,652 |
Options exercisable, Weighted average remaining contractual life | 7 years 4 months 17 days |
Exercise Price 4.14 to 4.47 [Member] | |
Exercise price minimum | $ / shares | $ 4.14 |
Exercise price maximum | $ / shares | $ 4.47 |
Options outstanding, Number of options outstanding at the end of year | 526,455 |
Options outstanding, Weighted average remaining contractual life | 7 years 15 days |
Options exercisable, Number of options exercisable at the end of year | 142,033 |
Options exercisable, Weighted average remaining contractual life | 7 years 3 months 26 days |
Exercise Price 5.19 to 5.46 [Member] | |
Exercise price minimum | $ / shares | $ 5.19 |
Exercise price maximum | $ / shares | $ 5.46 |
Options outstanding, Number of options outstanding at the end of year | 543,500 |
Options outstanding, Weighted average remaining contractual life | 6 years 7 months 2 days |
Options exercisable, Number of options exercisable at the end of year | 190,468 |
Options exercisable, Weighted average remaining contractual life | 7 years 22 days |
Exercise Price 6.0 to 6.7 [Member] | |
Exercise price minimum | $ / shares | $ 6 |
Exercise price maximum | $ / shares | $ 6.7 |
Options outstanding, Number of options outstanding at the end of year | 1,410,500 |
Options outstanding, Weighted average remaining contractual life | 6 years 9 months 3 days |
Options exercisable, Number of options exercisable at the end of year | 201,667 |
Options exercisable, Weighted average remaining contractual life | 7 years 4 months 9 days |
Exercise Price Range 7.44 [Member] | |
Exercise price maximum | $ / shares | $ 7.44 |
Options outstanding, Number of options outstanding at the end of year | 165,000 |
Options outstanding, Weighted average remaining contractual life | 8 months 12 days |
Options exercisable, Number of options exercisable at the end of year | 86,385 |
Options exercisable, Weighted average remaining contractual life | 8 months 12 days |
Exercise Price 8.56 [Member] | |
Exercise price maximum | $ / shares | $ 8.56 |
Options outstanding, Number of options outstanding at the end of year | 200,000 |
Options outstanding, Weighted average remaining contractual life | 8 years 10 months 28 days |
Options exercisable, Number of options exercisable at the end of year | 66,667 |
Options exercisable, Weighted average remaining contractual life | 8 years 10 months 28 days |
Total [Member] | |
Options outstanding, Number of options outstanding at the end of year | 3,138,183 |
Options exercisable, Number of options exercisable at the end of year | 879,529 |
SHARE CAPITAL (Schedule of effe
SHARE CAPITAL (Schedule of effect of share-based compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation | $ 3,227 | $ 1,203 |
Research and development expenses [Member] | ||
Share-based compensation | 1,732 | 362 |
General and administrative expenses [Member] | ||
Share-based compensation | $ 1,495 | $ 841 |
SHARE CAPITAL (Narrative - Shar
SHARE CAPITAL (Narrative - Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Aug. 31, 2017 | Mar. 31, 2017 | May 31, 2018 | Sep. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | |
Proceeds from issuance of ordinary shares, net of issuance costs | $ 35,029 | $ 63,131 | ||||
Private Placement [Member] | Subscription Agreements [Member] | ||||||
Number of share issued | 2,289,638 | |||||
Share price (in dollars per share) | $ 4.4 | |||||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 9,500 | |||||
Issuance expenses | $ 500 | |||||
Underwritten Public Offering [Member] | August 2017 [Member] | ||||||
Number of share issued | 12,224,500 | |||||
Share price (in dollars per share) | $ 4.70 | |||||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 53,600 | |||||
Issuance expenses | $ 3,900 | |||||
Underwritten Public Offering [Member] | April-May 2018 [Member] | ||||||
Number of share issued | 6,750,000 | |||||
Share price (in dollars per share) | $ 5.25 | |||||
Number of additional ordinary shares purchased by underwriters | 400,000 | |||||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 35,000 | |||||
Issuance expenses | $ 2,500 | |||||
Initial Public Offering [Member] | ||||||
Number of share issued | 5,025,000 | |||||
Share price (in dollars per share) | $ 6 | |||||
Number of additional ordinary shares purchased by underwriters | 638,750 | |||||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 30,600 | |||||
Issuance expenses | $ 3,400 |
SHARE CAPITAL (Narrative - Inve
SHARE CAPITAL (Narrative - Investment Agreement) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Aug. 31, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | |
Proceeds from exercise of warrants | $ 531 | |||
Investment Agreement [Member] | ||||
Number of warrants exercisable into ordinary shares | 198,812 | |||
Warrants exercisable term | 4 years | |||
Investment Agreement [Member] | Investors [Member] | ||||
Total number of warrants exercised | 198,812 | |||
Number of warrants exercised | 86,579 | |||
Number of shares issued | 86,579 | |||
Proceeds from exercise of warrants | $ 531 | |||
Number of warrants exercised | 112,233 | |||
Number of shares issued on cashless basis | 15,479 | |||
Investment Agreement [Member] | Investors [Member] | NIS | ||||
Warrants exercise price | $ 21.7 | |||
Proceeds from exercise of warrants | $ 1,900 |
SHARE CAPITAL (Narrative - Sh_2
SHARE CAPITAL (Narrative - Share-based Compensation) (Details) - 2015 Plan [Member] - shares | 12 Months Ended | ||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2016 | |
Number of ordinary shares reserved for issuance under the 2015 plan | 1,000,000 | 2,100,000 | 700,000 | 700,000 | |
Number of shares available for grant | 1,343,593 | ||||
Maximum term of award | 10 years |
SHARE CAPITAL (Narrative - Outs
SHARE CAPITAL (Narrative - Outstanding and Exercisable Options) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Aggregate intrinsic value of total outstanding options | $ 6,500 |
Aggregate intrinsic value of total exercisable options | $ 1,900 |
SUPPLEMENTARY FINANCIAL STATE_3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Supplementary Balance Sheets Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid expenses and other receivable: | ||
Prepaid expenses | $ 227 | $ 208 |
Advances to suppliers | 728 | 439 |
Institutions | 1,683 | 436 |
Interest receivable | 118 | 42 |
Other receivables | 230 | |
Total prepaid expenses and other receivable | 2,986 | 1,125 |
Accounts payable and accruals - other: | ||
Accrual for repayment of grants to IIA, see note 6c | 2,300 | |
Expenses payable | 3,400 | 724 |
Salary and related expenses, including social security and other taxes | 1,078 | 588 |
Accrual for vacation days and recreation pay for employees | 309 | 248 |
Other | 20 | 33 |
Total accounts payable and accruals - other | $ 4,807 | $ 3,893 |
SUPPLEMENTARY FINANCIAL STATE_4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Supplementary Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial income: | ||
Interest on cash and cash equivalents | $ 852 | $ 286 |
Gains from changes in fair value of marketable securities | 220 | |
Gain on changes in exchange rates | 70 | |
Financial income | 852 | 576 |
Financial expenses - | ||
Loss from changes in exchange rates | (747) | |
Losses from changes in fair value of marketable securities | (194) | |
Bank fees | (23) | (17) |
Financial expenses | (964) | (17) |
Financial income (expenses), net | $ (112) | $ 559 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | |||
Net operating loss carry forward | $ 24,739 | $ 17,982 | |
Research and Development expenses | 6,705 | 4,057 | |
Issuance Costs | 734 | 674 | |
Other | 787 | 61 | |
Less - valuation allowance | (32,684) | (22,774) | $ (15,344) |
Net deferred tax assets | $ 281 |
TAXES ON INCOME (Schedule of Ch
TAXES ON INCOME (Schedule of Change in Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 22,774 | $ 15,344 |
Changes during the year | 9,910 | 7,430 |
Balance at the end of the year | $ 32,684 | $ 22,774 |
TAXES ON INCOME (Components of
TAXES ON INCOME (Components of Loss Before Income Tax ) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) before income tax: | ||
Intec | $ (43,943) | $ (28,928) |
Subsidiary | 503 | 48 |
Loss before income tax | $ (43,440) | $ (28,880) |
TAXES ON INCOME (Summarizes of
TAXES ON INCOME (Summarizes of Unrecognized Tax Benefits) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at the beginning of the year | |
Increase in uncertain tax positions for the current year | 309 |
Balance at the end of the year | $ 309 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net carry forward tax losses | $ 107,600 | ||
Tax expense | $ 103 | $ 29 | |
Israel [Member] | |||
Federal statutory tax | 23.00% | 24.00% | 25.00% |
U.S.A [Member] | |||
Relevant state tax rate | 7.00% | 7.00% | |
Corporate tax rate | 21.00% | 35.00% |
EVENTS SUBSEQUENT TO DECEMBER_2
EVENTS SUBSEQUENT TO DECEMBER 31, 2018 (Narrative) (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands | 1 Months Ended |
Jan. 22, 2019USD ($)$ / sharesshares | |
Grant 1 [Member] | |
Fair value on grant date | $ | $ 3,400 |
Number of options granted | 940,000 |
Exercise price | $ / shares | $ 7.63 |
Vesting period | 3 years |
Grant 2 [Member] | |
Additional options to be granted following the approval of the general meeting | 125,000 |
Vesting period | 3 years |