Indaptus Therapeutics 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 08, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Intec Pharma Ltd.
Entity Central Index Key	0001638381
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Current reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		69,265,532
Entity File Number	001-37521
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	L3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 10,892	$ 9,292
Investment in marketable securities (Note 3)		770
Prepaid expenses and other receivables	2,638	3,683
TOTAL CURRENT ASSETS	13,530	13,745
NON-CURRENT ASSETS:
Property and equipment, net	2,272	2,575
Operating lease right-of-use assets	1,117	1,243
Other assets (Note 4a)	3,717	3,717
TOTAL NON-CURRENT ASSETS	7,106	7,535
TOTAL ASSETS	20,636	21,280
CURRENT LIABILITIES -
Accounts payable and accruals: Trade	930	3,507
Accounts payable and accruals: Other (Note 6)	4,187	4,835
TOTAL CURRENT LIABILITIES	5,117	8,342
LONG-TERM LIABILITIES -
Operating lease liabilities	647	799
Other liabilities	652	604
TOTAL LONG-TERM LIABILITIES	1,299	1,403
TOTAL LIABILITIES	6,416	9,745
COMMITMENTS AND CONTINGENT LIABILITIES (Note 4)
SHAREHOLDERS' EQUITY:
Ordinary shares, with no par value - authorized: 100,000,000 Ordinary Shares as of March 31, 2020 and December 31, 2019; issued and outstanding: 52,973,580 and 35,892,209 Ordinary Shares as of March 31, 2020 and December 31, 2019, respectively	727	727
Additional paid-in capital	206,786	200,231
Accumulated deficit	(193,293)	(189,423)
TOTAL SHAREHOLDERS' EQUITY	14,220	11,535
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 20,636	$ 21,280

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Ordinary shares, par value (in dollar per shares)
Ordinary shares, authorized	100,000,000	100,000,000
Ordinary shares, issued	52,973,580	35,892,209
Ordinary shares, outstanding	52,973,580	35,892,209

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT EXPENSES, net	$ (2,024)	$ (8,542)
GENERAL AND ADMINISTRATIVE EXPENSES	(1,715)	(2,190)
OPERATING LOSS	(3,739)	(10,732)
FINANCIAL INCOME (EXPENSES), net	(70)	110
LOSS BEFORE INCOME TAX	(3,809)	(10,622)
INCOME TAX	(61)	(34)
NET LOSS	$ (3,870)	$ (10,656)
LOSS PER ORDINARY SHARE - BASIC AND DILUTED (in dollars per share)	$ (0.08)	$ (0.32)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER ORDINARY SHARE IN THOUSANDS	46,918	33,247

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Ordinary Shares	Additional paid-in capital	Accumulated Deficit	Total
BALANCE at Dec. 31, 2018	$ 727	$ 194,642	$ (141,824)	$ 53,545
BALANCE (in shares) at Dec. 31, 2018	33,232,988
CHANGES IN THE PERIOD ENDED MARCH 31
Exercise of options		257		257
Exercise of options, shares	64,383
Share-based compensation (Note 5b)		943		943
Net loss			(10,656)	(10,656)
BALANCE at Mar. 31, 2019	$ 727	195,842	(152,480)	44,089
BALANCE (in shares) at Mar. 31, 2019	33,297,371
BALANCE at Dec. 31, 2019	$ 727	200,231	(189,423)	$ 11,535
BALANCE (in shares) at Dec. 31, 2019	35,892,209			35,892,209
CHANGES IN THE PERIOD ENDED MARCH 31
Issuance of ordinary shares, net of issuance costs (Note 5a(1))		421		$ 421
Issuance of ordinary shares, net of issuance costs (Note 5a(1)), shares	831,371
Issuance of ordinary shares and warrants, net of issuance costs (Note 5a(2))		5,692		5,692
Issuance of ordinary shares and warrants, net of issuance costs (Note 5a(2)), shares	16,250,000
Share-based compensation (Note 5b)		442		442
Net loss			(3,870)	(3,870)
BALANCE at Mar. 31, 2020	$ 727	$ 206,786	$ (193,293)	$ 14,220
BALANCE (in shares) at Mar. 31, 2020	52,973,580			52,973,580

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,870)	$ (10,656)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation	306	218
Exchange differences on cash and cash equivalents	135	8
Change in right of use asset	126	163
Change in lease liabilities	(152)	(98)
Gains on marketable securities	(2)
Share-based compensation	442	943
Changes in operating assets and liabilities:
Decrease in prepaid expenses and other receivables	1,045	340
Increase in deferred tax assets		(69)
Increase (decrease) in accounts payable and accruals	(3,225)	1,813
Increase in other liabilities	48	76
Net cash used in operating activities	(5,147)	(7,262)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(3)	(10)
Investment in other assets		(1,206)
Proceeds from disposal of marketable securities, net	772	576
Net cash (used in) provided by investing activities	769	(640)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares, net of issuance costs	421
Proceeds from issuance of ordinary shares and warrants, net of issuance costs	5,692
Proceeds from exercise of options		161
Net cash provided by financing activities	6,113	161
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,735	(7,741)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	9,292	39,246
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS	(135)	(8)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	10,892	31,497
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Liability with respect to property and equipment		462
Liability with respect to other assets (see note 4a)		648
Receivables with respect to exercise of options		96
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION -
Interest received	$ 9	$ 128

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: a. Nature of operations 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"). 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", together with Intec - "the Company"). 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) The Company engages in research and development activities and has not yet generated revenues from operations. On July 22, 2019, the Company announced top-line results according to which its Phase III clinical trial for AP-CD/LD did not achieve its primary and secondary endpoints. Accordingly, there is no assurance that the Company's operations will generate positive cash flows. As of March 31, 2020, the cumulative losses of the Company were approximately $193.3 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 believes that, without further fund raising, it will not have sufficient working capital to enable it to continue advancing its activities, including the research and development of its product candidates and the manufacturing activities of the AP-CD/LD in the foreseeable future. The Company's ability to execute its operating plan is dependent on its ability to obtain additional capital, principally through entering into collaborations, strategic alliances, or license agreements with third parties and/or raising capital from the public and/or private investors and/or institutional investors. The negative outcome of the Phase III clinical trial that was announced on July 22, 2019 and uncertainty regarding the Company's development programs is expected to adversely affect its ability to obtain funding and there is no assurance that it will be successful in obtaining the level of financing needed for its activities. In addition, the COVID-19 pandemic ("Coronavirus"), that was reported in Wuhan, China in late 2019, has resulted in significant financial market volatility and uncertainty in recent weeks. The continued spread of the Coronavirus globally could materially adversely impact the Company's operations and workforce, including its research and development, partnering efforts, and its ability to raise capital. If the Company is unsuccessful in securing sufficient financing, it may need to curtail or cease operations. As a result of these uncertainties, there is substantial doubt about the Company's ability to continue as a going concern. 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 September 3, 2019, the Company was notified by NASDAQ that it was not in compliance with the minimum bid price requirements for continued listing on the Nasdaq Capital Market. The notification provided that the Company had 180 calendar days, or until March 2, 2020, to regain compliance. On March 3, 2020, the Company was notified that it is eligible for an additional 180 calendar day period, or until August 31, 2020, to regain compliance. As a result of tolling of compliance periods by NASDAQ, on April 17, 2020, the Company was notified that the term to regain compliance was extended until November 13, 2020. Failure to meet these requirements could result in a delisting of the Company's ordinary shares which could negatively impact the Company's ability to raise capital. 4) On March 1, 2019, the Company entered into a Sales Agreement (the "Sales Agreement") with Cowen and Company, LLC ("Cowen"). During January 2020, the Company sold 831,371 ordinary shares under the Sales Agreement raising a total of approximately $421 thousand (net of issuance expenses of $15 thousand). For more details see note 5a(1). On February 3, 2020, the Company completed an underwritten public offering and raised a total of approximately $5.7 million (net of underwriting discounts, commissions and other offering expenses in the amount of approximately $800 thousand). For more details see note 5a(2). In addition, on May 6, 2020, the Company completed a registered direct offering and concurrent private placement raising a total of approximately $4.5 million (net of placement agent and other offering expenses in the amount of approximately $500 thousand). For more details see note 7. b. Basis of presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and S-X Article 10 for interim financial statements. Accordingly, they do not contain all information and notes required by US GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company's consolidated financial position as of March 31, 2020, the consolidated results of operations, changes in equity and cash flows for the three-month periods ended March 31, 2020 and 2019. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's annual financial statements for the year ended December 31, 2019, as filed in the 10-K on March 13, 2020. The condensed balance sheet data as of December 31, 2019 included in these unaudited condensed consolidated financial statements was derived from the audited financial statements for the year ended December 31, 2019 but does not include all disclosures required by US GAAP for annual financial statements. The results for the three-month period ended March 31, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Principles of consolidation The consolidated financial statements include the accounts of Intec and its Subsidiary. Intercompany balances and transactions have been eliminated upon consolidation. b. 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. c. Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options and warrants which are included under the treasury stock method when dilutive. The 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 periods presented (share data): Three months ended 2020 2019 Outstanding stock options 4,255,965 4,135,376 Warrants 10,291,667 - d. Research and development expenses, net Research and development expenses, net for the three-month period ended March 31, 2019 include participation in research and development expenses in the amount of approximately and $566 thousand. For the three-month period ended March 31, 2020, the Company had no participation in research and development expenses.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 3 - MARKETABLE SECURITIES The Company's marketable securities included bonds issued by the State of Israel and corporate bonds with a minimum of A rating by global rating agencies. These assets are recorded as fair value with changes recorded in the statement of operations as "financial income (expenses), net", as the Company chose to apply the fair value option. These assets are categorized as Level 1. As of March 31, 2020, the Company had no marketable securities. As of December 31, 2019, the amount of the marketable securities is approximately $770 thousand. The gain, net from changes in marketable securities for the three-month periods ended March 31, 2020 and 2019 amounted to approximately $2 thousand and $0 thousand, respectively.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 4 - COMMITMENTS AND CONTINGENT LIABILITIES: a. LTS Process Development Agreement In December 2018, the Company entered into a Process Development Agreement for Manufacturing Services with Lohmann Therapie-Systeme AG ("LTS") for the manufacture of AP-CD/LD (the "Agreement"). Under the Agreement, the Company will bear the costs incurred by LTS to acquire the production equipment for AP-CD/LD ("Equipment") which amounted to approximately €6.8 million (approximately $7.8 million), and this 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, 2019, the Company paid in full all the consideration and has recognized the Equipment as non-current other assets. In 2019, the Company performed an impairment assessment on certain of its long-lived assets which resulted an impairment charge of the Equipment in the amount of approximately $4.1 million. As of December 31, 2019, the fair value of the Equipment is approximately $3.7 million. The Agreement also contains several termination rights which are expected to be included in a definitive manufacturing and supply agreement. As of March 31, 2020, the Company recognized a liability in the amount of €2.0 million (approximately $2.2 million) for LTS's facility upgrading costs. This liability will be paid to LTS only if the Company decides not to continue with the project or commercialization of AP-CD/LD. b. Lawsuit In December, 2019, two former directors and officers (the "plaintiffs") filed a statement of claim with the Jerusalem District Labor Court alleging breach of contract related to a purported vesting of certain options issued to the plaintiffs pursuant to the execution of the LTS Agreement and further alleging payments due for unredeemed vacation days. The plaintiffs are seeking pecuniary damages of NIS 2.4 million (approximately $700 thousand) plus interest and linkage to the Israeli CPI. In addition, the plaintiffs have filed motions to obtain liens on the Company's assets to secure any future recovery. That motion was withdrawn pursuant to the court's recommendation at the conclusion of a hearing held on February 9, 2020. The Company records a provision in its financial statements to the extent that it concludes that a contingent liability is probable, and the amount thereof is estimable. The Company together with its legal advisors believe that it has good defense arguments to the claims against it and filed a statement of defense to the complaint on March 8, 2020 in which it rejected all of the plaintiffs' claims. Accordingly, management assessed the likelihood of damages and concluded that no provisions are needed to be recorded within the financial statements regarding the matter disclosed in this note.

SHARE CAPITAL

SHARE CAPITAL	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
SHARE CAPITAL	NOTE 5 - SHARE CAPITAL: a. Changes in share capital 1) On March 1, 2019, the Company entered into a Sales Agreement with Cowen which provides that, upon the terms and subject to the conditions and limitations in the Sales Agreement, the Company may elect from time to time, to offer and sell ordinary shares through an "at-the-market" equity offering program through Cowen acting as sales agent. The issuance and sale of ordinary shares by the Company under the offering program is being made pursuant to the Company's effective "shelf" registration statement on Form S-3 filed with the SEC on March 1, 2019 and declared effective on March 28, 2019, as amended by a prospectus supplement filed on March 13, 2020. On May 4, 2020, the Company terminated the prospectus supplement, but the sales agreement remains in full force and effect. During January 2020, the Company sold 831,371 ordinary shares under the Sales Agreement at an average price of $0.525 per share for aggregate net proceeds of approximately $421 thousand, net of issuance expenses of approximately $15 thousand. 2) On February 3, 2020, the Company completed an underwritten public offering, pursuant to which the Company issued 15,280,000 ordinary shares, pre-funded warrants to purchase 970,000 ordinary shares and warrants to purchase 16,250,000 ordinary shares. Each pre-funded warrant was exercisable at an exercise price of $0.0001 per share. All the pre-funded warrants were exercised following the closing of the offering. Each ordinary share and warrant or pre-funded warrant and warrant were sold together at a combined price of $0.40. Each warrant shall be exercisable at an exercise price of $0.40 per share and has a term of five years from the date of issuance. The Company has also concluded that the warrants are classified as equity, since it meets all criteria for equity classification. The total net proceeds were approximately $5.7 million, after deducting underwriting discounts, commissions and other offering expenses in the amount of $800 thousand. b. Share-based compensation: 1) 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, June 2018 and December 2019, an increase of 2,100,000, 1,000,000 and 1,000,000 ordinary shares, respectively, was approved by the Company's shareholders at a general meeting of shareholders. As of March 31, 2020, 997,597 shares remain available for grant under the Plan. In the three months ended March 31, 2020 and 2019, the Company granted options as follows: Three months ended March 31, 2020 Number of options granted Exercise price Vesting period Expiration Employees 645,000 $ 0.4287 3 years 7 years Three months ended March 31, 2019 Number of options granted Exercise price range Vesting period range Expiration Employees* 940,000 $ 7.63 3 years 7 years * On August 22, 2019, the Company reduced the exercise price of these options to $0.44. The fair value of options granted to employees during the three months ended March 31, 2020, and 2019 was $127 thousand and $3.4 million, respectively. The fair value of options granted to employees on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows: Three months ended 2020 2019 Value of ordinary share $ 0.28 $ 7.46 Dividend yield 0 % 0 % Expected volatility 102.58 % 53.32 % Risk-free interest rate 1.42 % 2.57 % Expected term 5 years 5 years 2) On February 17, 2020, 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. 3) The following table illustrates the effect of share-based compensation on the statements of operations: Three months ended 2020 2019 U.S. dollars in thousands Research and development expenses, net $ 184 $ 570 General and administrative expenses 258 373 $ 442 $ 943

ACCOUNTS PAYBLE AND ACCRUALS -

ACCOUNTS PAYBLE AND ACCRUALS - OTHER	3 Months Ended
	Mar. 31, 2020
Accounts payable and accruals - other [Abstract]
ACCOUNTS PAYBLE AND ACCRUALS - OTHER	NOTE 6 -ACCOUNTS PAYBLE AND ACCRUALS - OTHER: March 31, December 31, 2020 2019 U.S. dollars in thousands Expenses payable $ 3,116 $ 2,838 Salary and related expenses, including social security and other taxes 338 1,277 Current operating lease liabilities 524 544 Accrual for vacation days and recreation pay for employees 187 154 Other 22 22 $ 4,187 $ 4,835

EVENT SUBSEQUENT TO MARCH 31, 2

EVENT SUBSEQUENT TO MARCH 31, 2020	3 Months Ended
	Mar. 31, 2020
Event Subsequent To March 31 2020 [Abstract]
EVENT SUBSEQUENT TO MARCH 31, 2020	NOTE 7 - EVENT SUBSEQUENT TO MARCH 31, 2020 On May 6, 2020, the Company completed a registered direct offering, pursuant to which the Company sold and issued to certain institutional investors 16,291,952 ordinary shares at a purchase price per share of $0.3069. In addition, in a concurrent private placement, the Company also sold and issued to the purchasers in the offering unregistered warrants to purchase 8,145,976 ordinary shares. The warrants are immediately exercisable and expire five and one-half years from issuance and are exercisable at an exercise price of $0.245 per share. The total net proceeds were approximately $4.5 million, after deducting placement agent and other offering expenses in the amount of approximately $500 thousand.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Principles of consolidation	a. Principles of consolidation The consolidated financial statements include the accounts of Intec and its Subsidiary. Intercompany balances and transactions have been eliminated upon consolidation.
Fair value measurement	b. 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.
Loss per share	c. Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options and warrants which are included under the treasury stock method when dilutive. The 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 periods presented (share data): Three months ended 2020 2019 Outstanding stock options 4,255,965 4,135,376 Warrants 10,291,667 -
Research and development expenses, net	d. Research and development expenses, net Research and development expenses, net for the three-month period ended March 31, 2019 include participation in research and development expenses in the amount of approximately and $566 thousand. For the three-month period ended March 31, 2020, the Company had no participation in research and development expenses.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Schedule of anti-dilutive securities	Three months ended 2020 2019 Outstanding stock options 4,255,965 4,135,376 Warrants 10,291,667 -

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	3 Months Ended
	Mar. 31, 2020
Shareholders' Equity Note [Abstract]
Schedule of options granted to employees and directors	In the three months ended March 31, 2020 and 2019, the Company granted options as follows: Three months ended March 31, 2020 Number of options granted Exercise price Vesting period Expiration Employees 645,000 $ 0.4287 3 years 7 years Three months ended March 31, 2019 Number of options granted Exercise price range Vesting period range Expiration Employees* 940,000 $ 7.63 3 years 7 years * On August 22, 2019, the Company reduced the exercise price of these options to $0.44.
Schedule of underlying data used for computing the fair value of the options	The fair value of options granted to employees on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows: Three months ended 2020 2019 Value of ordinary share $ 0.28 $ 7.46 Dividend yield 0 % 0 % Expected volatility 102.58 % 53.32 % Risk-free interest rate 1.42 % 2.57 % Expected term 5 years 5 years
Schedule of effect of share-based compensation	Three months ended 2020 2019 U.S. dollars in thousands Research and development expenses, net $ 184 $ 570 General and administrative expenses 258 373 $ 442 $ 943

ACCOUNTS PAYBLE AND ACCRUALS _2

ACCOUNTS PAYBLE AND ACCRUALS - OTHER (Tables)	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Schedule of accounts payable and accruals - other	March 31, December 31, 2020 2019 U.S. dollars in thousands Expenses payable $ 3,116 $ 2,838 Salary and related expenses, including social security and other taxes 338 1,277 Current operating lease liabilities 524 544 Accrual for vacation days and recreation pay for employees 187 154 Other 22 22 $ 4,187 $ 4,835

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Thousands	May 06, 2020	Feb. 03, 2020	Jan. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accumulated deficit				$ (193,293)		$ (189,423)
Proceeds from issuance of ordinary shares, net of issuance expenses				421
Proceeds from issuance of ordinary shares and warrents, net of issuance expenses				$ 5,692
Underwritten Public Offering [Member]
Proceeds from issuance of ordinary shares and warrents, net of issuance expenses		$ 5,700
Issuance expenses		$ 800
Registered Direct Offering and Concurrent Private Placement [Member] | Subsequent Event [Member]
Proceeds from issuance of ordinary shares and warrents, net of issuance expenses	$ 4,500
Issuance expenses	$ 500
Sales Agreement [Member] | Cowen [Member]
Proceeds from issuance of ordinary shares, net of issuance expenses			$ 421
Number of shares issued			831,371
Issuance expenses			$ 15

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Anti-Dilutive Securities) (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrant [Member]
Shares excluded from the computation of diluted net loss per share, because the effect of their inclusion in the computation would be anti-dilutive	10,291,667
Outstanding stock options [Member]
Shares excluded from the computation of diluted net loss per share, because the effect of their inclusion in the computation would be anti-dilutive	4,255,965	4,135,376

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Research and development expenses [Member]
Participation in research and development expenses	$ 0	$ 566

MARKETABLE SECURITIES (Narrativ

MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Marketable securities	$ 0		$ 770
Gain (loss), net from changes in marketable securities	$ 2	$ 0

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - LTS Process Development Agreement) (Details) € in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2020EUR (€)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018EUR (€)
LTS Production equipment agreement [Member]
Total cost of Equipment				$ 7,800
Impairment charge			$ 4,100
Fair value of Equipment			$ 3,700
LTS Production equipment agreement [Member] | Euro
Total cost of Equipment | €					€ 6,800
LTS Facility upgrading cost [Member]
Additional amount recognized as liability in respect to facility upgrading costs	$ 2,200
LTS Facility upgrading cost [Member] | Euro
Additional amount recognized as liability in respect to facility upgrading costs | €		€ 2,000

COMMITMENTS AND CONTINGENT LI_3

COMMITMENTS AND CONTINGENT LIABILITIES (Narrative - lawsuit) (Details) - 3 months ended Mar. 31, 2020 ₪ in Thousands, $ in Thousands	USD ($)	ILS (₪)
Plaintiffs pecuniary damages | $	$ 700
NIS [Member]
Plaintiffs pecuniary damages | ₪		₪ 2,400

SHARE CAPITAL (Schedule of Opt

SHARE CAPITAL (Schedule of Options Granted to Employees and Directors) (Details) - Share options [Member] - Employees [Member] - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	[1]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	645,000	940,000
Exercise price	$ 0.4287	$ 7.63
Vesting period range	3 years	3 years
Expiration	7 years	7 years
[1]	On August 22, 2019, the Company reduced the exercise price of these options to $0.44.

SHARE CAPITAL (Schedule of Unde

SHARE CAPITAL (Schedule of Underlying Data Used for Computing the Fair Value of the Options) (Details) - Employees [Member] - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Value of ordinary share	$ 0.28	$ 7.46
Dividend yield	0.00%	0.00%
Expected volatility	102.58%	53.32%
Risk-free interest rate	1.42%	2.57%
Expected term	5 years	5 years

SHARE CAPITAL (Schedule of effe

SHARE CAPITAL (Schedule of effect of share-based compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based compensation	$ 442	$ 943
Research and development expenses, net [Member]
Share-based compensation	184	570
General and administrative expenses [Member]
Share-based compensation	$ 258	$ 373

SHARE CAPITAL (Narrative - Shar

SHARE CAPITAL (Narrative - Share capital) (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 03, 2020	Aug. 22, 2019	Feb. 17, 2020	Jan. 31, 2020	Mar. 31, 2020	Mar. 31, 2019
Proceeds from issuance of ordinary shares, net of issuance costs					$ 421
Proceeds from issuance of ordinary shares and warrants, net of issuance costs					5,692
Underwritten Public Offering [Member]
Number of shares issued	15,280,000
Number of pre-funded ordinary shares issued during the period	970,000
Number of warrants issued	16,250,000
Pre-funded warrants exercise price	$ 0.0001
Combined price of share and warrant (in dollars)	0.40
Exercise price	$ 0.40
Term of the warrants	5 years
Proceeds from issuance of ordinary shares, net of issuance costs	$ 5,700
Issuance expenses	$ 800
Sales Agreement [Member] | Cowen [Member]
Number of shares issued				831,371
Average price per share				$ 0.525
Proceeds from issuance of ordinary shares, net of issuance costs				$ 421
Issuance expenses				$ 15
Fair value of options granted [Member]
Fair value of options granted					$ 127	$ 3,400
Repricing of options previously granted [Member]
Exercise price		$ 0.44
Grant of options [Member]
Additional options to be granted following the approval of the general meeting			125,000
Vesting period			3 years
Expiration			7 years

SHARE CAPITAL (Narrative - Sh_2

SHARE CAPITAL (Narrative - Share Option Plan for Grants to Directors, Employees and Consultants) (Details) - 2015 Plan [Member] - shares	Mar. 31, 2020	Dec. 31, 2019	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	1,000,000	2,100,000	700,000	700,000
Number of shares available for grant	997,597

ACCOUNTS PAYABLE AND ACCRUALS -

ACCOUNTS PAYABLE AND ACCRUALS - OTHER (Schedule of accounts payable and accruals - other) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts payable and accruals - other [Abstract]
Expenses payable	$ 3,116	$ 2,838
Salary and related expenses, including social security and other taxes	338	1,277
Current operating lease liabilities	524	544
Accrual for vacation days and recreation pay for employees	187	154
Other	22	22
Accounts payable and accruals - other	$ 4,187	$ 4,835

EVENT SUBSEQUENT TO MARCH 31,_2

EVENT SUBSEQUENT TO MARCH 31, 2020 (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	May 06, 2020	Mar. 31, 2020	Mar. 31, 2019
Proceeds from issuance of ordinary shares and warrents, net of issuance expenses		$ 5,692
Registered Direct Offering [Member] | Subsequent Event [Member] | Certain Institutional Investors [Member]
Number of warrants issued	16,291,952
Purchase price per share	$ 0.3069
Term of the warrants	Five and one-half years
Exercise price	$ 0.245
Concurrent Private Placement [Member] | Subsequent Event [Member] | Purchasers [Member]
Number of warrants issued	8,145,976
Registered Direct Offering and Concurrent Private Placement [Member] | Subsequent Event [Member]
Proceeds from issuance of ordinary shares and warrents, net of issuance expenses	$ 4,500
Issuance expenses	$ 500