Quoin Pharmaceuticals (QNRX) 6-K 9 Aug 18 2018 Q2 Interim Consolidated Financial Statements Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Cellect Biotechnology Ltd.
Entity Central Index Key	1,671,502
Trading Symbol	APOP
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	6-K
Document Fiscal Period Focus	Q2
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Entity Filer Category	Non-accelerated Filer

Consolidated Balance Sheets

Consolidated Balance Sheets ₪ in Thousands, $ in Thousands	Jun. 30, 2018USD ($)	Jun. 30, 2018ILS (₪)	Dec. 31, 2017ILS (₪)
CURRENT ASSETS:
Cash and cash equivalents	$ 5,706	₪ 20,829	₪ 13,734
Short-term deposits	1,000	3,650
Marketable securities	1,507	5,501	13,999
Other receivables	254	926	818
CURRENT ASSETS	8,467	30,906	28,551
LONG-TERM ASSETS:
Restricted cash	91	333	305
Other long term assets	42	152	173
Property, plant and equipment, net	376	1,371	1,344
Non-current assets	509	1,856	1,822
Assets	8,976	32,762	30,373
CURRENT LIABILITIES:
Trade payables	308	1,124	1,703
Other payables	513	1,872	2,396
Current liabilities	821	2,996	4,099
NON CURRENT LIABILITIES:
Warrants to ADS	2,095	7,647	7,422
SHAREHOLDERS' EQUITY :
Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2017 and June 30, 2018 (unaudited); Issued and outstanding: 120,185,659*) at December 31, 2017; and 130,192,799*) at June 30, 2018 (unaudited).
Additional paid-in capital	25,931	94,648	82,839
Share-based payments and proceeds from conversion option	2,850	10,403	9,381
Treasury shares	(2,582)	(9,425)	(9,425)
Accumulated deficit	(20,139)	(73,507)	(63,943)
Equity	6,060	22,119	18,852
Equity and liabilities	$ 8,976	₪ 32,762	₪ 30,373

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - ₪ / shares		Jun. 30, 2018	Dec. 31, 2017
Statement of financial position [Abstract]
Ordinary shares, par value
Ordinary shares, authorized		500,000,000	500,000,000
Ordinary shares, issued	[1]	130,192,799	120,185,659
Ordinary shares, outstanding	[1]	130,192,799	120,185,659
Treasury shares		2,641,693	2,641,693
[1]	Net of 2,641,693 treasury shares of the Company held by the Company.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss ₪ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2018ILS (₪)₪ / sharesshares	Jun. 30, 2017ILS (₪)₪ / sharesshares
Statement of comprehensive income [Abstract]
Research and development expenses	$ 1,465	₪ 5,348	₪ 5,227
General and administrative expenses	1,938	7,072	6,046
Total operating expenses	3,403	12,420	11,273
Operating loss	3,403	12,420	11,273
Financial income	(786)	(2,868)	(40)
Financial expenses	3	12	5,820
Total comprehensive loss	$ 2,620	₪ 9,564	₪ 17,053
Loss per share:
Basic and diluted loss per share | (per share)	$ 0.020	₪ 0.074	₪ 0.158
Basic and diluted loss per ADS | (per share)	$ 0.41	₪ 1.48	₪ 3.16
Weighted average number of shares outstanding used to compute basic and diluted loss per share	128,600,812	128,600,812	108,034,218

Statements of Changes in Equity

Statements of Changes in Equity ₪ in Thousands, $ in Thousands	USD ($)	ILS (₪)	Share capitalUSD ($)	Share capitalILS (₪)	Additional paid-in capitalUSD ($)	Additional paid-in capitalILS (₪)	Treasury sharesUSD ($)	Treasury sharesILS (₪)	Share based payments and proceeds from conversion optionUSD ($)	Share based payments and proceeds from conversion optionILS (₪)	Accumulated deficitUSD ($)	Accumulated deficitILS (₪)
Balance at Dec. 31, 2016		₪ 28,487				₪ 67,414		₪ (9,425)		₪ 6,217		₪ (35,719)
Issuance of ADS net of issue costs		11,773				11,693				80
Share-based payment		5,384				642				4,742
Exercise of share options and warrants		1,432				2,470				(1,038)
Expiration of share options						620				(620)
Total comprehensive loss		(28,224)										(28,224)
Balance at Dec. 31, 2017		18,852				82,839		(9,425)		9,381		(63,943)
Issuance of ADS net of issue costs		10,248				10,024				224
Share-based payment		2,184								2,184
Exercise of share options and warrants		(399)				753				(354)
Expiration of share options						1,032				(1,032)
Total comprehensive loss	$ (2,620)	(9,564)										(9,564)
Balance at Jun. 30, 2018	$ 6,060	₪ 22,119			$ 25,931	₪ 94,648	$ (2,582)	₪ (9,425)	$ 2,850	₪ 10,403	$ (20,139)	₪ (73,507)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows ₪ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018ILS (₪)	Jun. 30, 2017ILS (₪)
Cash flows from operating activities:
Total comprehensive loss	$ (2,620)	₪ (9,564)	₪ (17,053)
Adjustments to profit or loss items:
Net financing expenses	(229)	(837)	533
Loss (gain) from revaluation of financial assets presented at fair value through profit or loss	(40)	(148)	289
Depreciation	59	215	184
Share-based payment	598	2,184	2,444
Changes in fair value of warrants to ADS	(517)	(1,888)	5,313
Interest received	(4)	(15)
Adjustments to profit or loss items	(133)	(489)	8,763
Changes in asset and liability items:
Decrease (increase) in other receivables	(24)	(87)	236
Decrease in trade and other payables	(306)	(1,115)	(629)
Operating activities for changes in asset and liability	(330)	(1,202)	(393)
Cash paid and received during the period for:
Net cash used in operating activities	(3,083)	(11,255)	(8,683)
Cash flows from investing activities:
Short-term deposits, net	(960)	(3,503)	1,510
Restricted cash, net	(7)	(28)	(165)
Sales of marketable securities measured at fair value through profit or loss	2,328	8,498	4,991
Purchase of property, plant and equipment	(63)	(228)	(116)
Net cash provided by investing activities	1,298	4,739	6,220
Cash flows from financing activities:
Exercise of share options	109	399	1,066
Issuance of share capital and warrants, net of issue costs	3,386	12,360
Net cash provided by financing activities	3,495	12,759	1,066
Exchange differences on balances of cash and cash equivalents	233	852	(533)
Increase (decrease) in cash and cash equivalents	1,943	7,095	(1,930)
Cash and cash equivalents at beginning of period	3,763	13,734	6,279
Cash and cash equivalents at end of period	5,706	20,829	4,349
(a) Non-cash activities:
Purchase of property, plant and equipment	4	13
Exercise of share options			₪ (114)

General

General	6 Months Ended
	Jun. 30, 2018
General [Abstract]
GENERAL	NOTE 1:- GENERAL a. Cellect Biotechnology Ltd. (formerly Cellect Biomed Ltd.) (the “Company” or “Cellect”) was incorporated in Israel. Cellect’s American Depository Shares (“ADSs”) and certain warrants to purchase ADSs are listed for trading on the NASDAQ Capital Market. Each ADS represents 20 ordinary shares. Cellect and its subsidiary, Cellect Biotherapeutics Ltd. (the “Subsidiary”) are engaged in the development of an innovative, unique technology that enables the biological filtering and commercialization of stem cells. On May 8, 2018, the Subsidiary established a fully owned US subsidiary named Cellect Biotech, Inc (the "US Subsidiary"). This company was formed to engage in business development operations of the group. b. Going Concern The accompanying financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS), assuming that the Company will continue to operate as a going concern. During the period ended June 30, 2018, the Company incurred total comprehensive loss of NIS 9,564 ($2,620) and had negative cash flows from operating activities of NIS 11,255 ($3,083). In addition, the Company had an accumulated deficit of NIS 73, 507 ($20,139) at June 30, 2018. The Company’s management plans to seek additional equity financing. The Company believes its current capital resources are sufficient to support its operations through the end of the second quarter of 2019. The Company’s activities since inception have consisted of raising capital and performing research and development activities. As of June 30, 2018, principal commercial operations have not commenced. Successful completion of the Company’s development programs and, ultimately, the attainment of profitable operations, if any, are dependent on future events, including, among other things, its ability to obtain marketing approval from regulatory authorities and access potential markets, secure financing, develop a customer base, attract, retain and motivate qualified personnel and develop strategic alliances. Although management believes that the Company will be able to successfully fund its operations, there can be no assurance that the Company will be able to do so or that the Company will ever operate profitably. The Company expects to continue to incur substantial losses over the next several years during its development phase. To fully execute its business plan, the Company will need, among other things, to complete its research and development efforts and clinical and regulatory activities. These activities may take several years and will require significant operating and capital expenditures in the foreseeable future. There can be no assurance that these activities will be successful. If the Company is not successful in these activities it could delay, limit, reduce or terminate preclinical studies, clinical trials or other research and development activities. To fund its capital needs, the Company plans to raise funds through equity or debt financings or other sources, such as strategic partnerships and alliance and licensing arrangements, and in the long term, from the proceeds from sales. Additional funds may not be available when the Company needs them, on terms that are acceptable to it, or at all. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would result if the Company was unable to continue as a going concern.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Interim Financial Statements The accompanying consolidated balance sheet as of June 30, 2018, the consolidated statements of income, the consolidated statements of comprehensive loss and the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017, as well as the statement of changes in shareholders’ equity for the six months ended June 30, 2018, are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. In the management’s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position as of June 30, 2018, as well as its results of operations and cash flows for the six months ended June 30, 2018 and 2017. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. The accompanying unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on March 19, 2018. There have been no changes to the significant accounting policies described in the Annual Report on Form 20-F for the fiscal year ended December 31, 2017 that have had a material impact on the unaudited interim consolidated financial statements and related notes (see note 2 (c)). b. Estimates and assumptions: The preparation of the Company’s financial statements requires management to make estimates and assumptions that have an effect on application of the accounting policies and on the reported amounts of assets, liabilities and expenses. Changes in accounting estimates are reported in the period of the change in estimate. The key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed by the Company that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. ● Determining the fair value of share-based transactions: The fair value of share based transactions is determined upon initial recognition using acceptable option pricing models. The model is based on per-share price data and the exercise price and assumptions regarding expected volatility, expected life, expected dividend and risk-free interest rate. c. Recently adopted accounting standards IFRS 9, “Financial Instruments”: In July 2014, the IASB issued the final and complete version of IFRS 9, “Financial Instruments” (“IFRS 9”), which replaces IAS 39, “Financial Instruments: Recognition and Measurement”. IFRS 9 mainly focuses on the classification and measurement of financial assets and it applies to all assets in the scope of IAS 39. According to IFRS 9, all financial assets are measured at fair value upon initial recognition. In subsequent periods, debt instruments are measured at amortized cost only if both of the following conditions are met: - The asset is held within a business model whose objective is to hold assets in order to collect the contractual cash flows. - the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. IFRS 9 also includes a new model for measurement of impairment of financial assets. Subsequent measurement of all other debt instruments and financial assets should be at fair value. IFRS 9 establishes a distinction between debt instruments to be measured at fair value through profit or loss and debt instruments to be measured at fair value through other comprehensive income. Financial assets that are equity instruments should be measured in subsequent periods at fair value and the changes recognized in profit or loss or in other comprehensive income (loss), in accordance with the election by the Company on an instrument-by-instrument basis. If equity instruments are held for trading, they should be measured at fair value through profit or loss. According to IFRS 9, the provisions of IAS 39 will continue to apply to derecognition and to financial liabilities for which the fair value option has not been elected. According to IFRS 9, changes in the fair value of financial liabilities which are attributable to the change in credit risk should be presented in other comprehensive income. All other changes in fair value should be presented in profit or loss. IFRS 9 also prescribes new hedge accounting requirements. The Company adopted the new standard effective January 1, 2018. The adoption of IFRS 9 does not have material impact on its financial statements. IFRS 16, “Leases”: In January 2016, the IASB issued IFRS 16, “Leases”. According to IFRS 16, a lease is a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration. According to IFRS 16: ● Lessees are required to recognize an asset and a corresponding liability in the statement of financial position in respect of all leases (except in certain cases) similar to the accounting treatment of finance leases according to the existing IAS 17, “Leases”. ● Lessees are required to initially recognize a lease liability for the obligation to make lease payments and a corresponding right-of-use asset. Lessees will also recognize interest and depreciation expenses separately. ● Variable lease payments that are not dependent on changes in the Consumer Price Index (“CPI”) or interest rates, but are based on performance or use (such as a percentage of revenues) are recognized as an expense by the lessees as incurred and recognized as income by the lessors as earned. ● In the event of change in variable lease payments that are CPI-linked, lessees are required to remeasure the lease liability and the effect of the remeasurement is an adjustment to the carrying amount of the right-of-use asset. ● IFRS 16 includes two exceptions according to which lessees are permitted to elect to apply a method similar to the current accounting treatment for operating leases. These exceptions are leases for which the underlying asset is of low value and leases with a term of up to one year. ● The accounting treatment by lessors remains substantially unchanged, namely classification of a lease as a finance lease or an operating lease. For leases existing at the date of transition, IFRS 16 permits lessees to use either a full retrospective approach, or a modified retrospective approach, with certain transition relief whereby restatement of comparative data is not required. The Company is currently evaluating the potential effect of IFRS 16 on its consolidated financial statements as well as its adoption methodology. d. Convenience translation into U.S. dollars: The consolidated financial statements as of June 30, 2018 and for the six months then ended have been translated into U.S. dollars using the exchange rate of the U.S. dollar as of June 30, 2018 (U.S. $1.00 = NIS 3.65). The translation was made solely for convenience purposes. The dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into dollars, unless otherwise indicated.

Equity

Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
EQUITY	NOTE 3:- EQUITY a. Changes in share capital: Number of shares Balance at January 1, 2017 (audited) *)107,628,485 Issuance of shares 10,622,720 Exercise of share options 1,484,154 ADS granted 450,300 Balance at December 31, 2017 (audited) *)120,185,659 Issuance of shares 9,696,960 Exercise of share options 310,180 Balance at June 30, 2018 (unaudited) *)130,192,799 *) Net of 2,641,693 treasury shares of the Company, held by the Company. 1. On January 31, 2018, the Company sold to certain institutional investors an aggregate of 484,848 ADSs and 266,667 unregistered warrants to purchase 266,667 ADSs in a registered direct offering at $8.25 per ADS in which it raised gross proceeds of NIS 13,620, (NIS 11,865 net of all issuance costs, including share-based awards granted). An amount of NIS 10,024 out of the consideration related to the ADSs and classified as equity component, while an amount of NIS 2,113 related to the fair value of the warrants to purchase ADSs and was classified as a liability. Issuance costs amounting to NIS 272 associated with the issuance of the warrants, have been recognized as finance expenses. The investor warrants may be exercised for one year from issuance and have an exercise price of $12.00 per ADS, subject to adjustment as set forth therein. The investor warrants may be exercised on a cashless basis if there is no effective registration statement registering the ADSs underlying the warrants. The Company paid approximately $323 in placement agent fees and expenses and issued unregistered placement agent warrants to purchase 24,242 ADSs on the same general terms as the investor warrants except they have an exercise price of $10.31 per ADS. Since the warrant exercise price is in US dollars, which is not the Company’s functional currency, the unregistered warrants to purchase ADS were classified as a financial liability at fair value and are marked to market through profit or loss in accordance with IAS 39. The placement agent warrants were classified as a share based payment transaction in accordance with IFRS 2, and was netted off the total consideration as issuance cost.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2018
Share-Based Compensation [Abstract]
SHARE-BASED COMPENSATION	NOTE 4:- SHARE-BASED COMPENSATION a. In February 2014, the Company’s board of directors adopted an Employee Shares Incentive Plan (the “2014 Plan”). Under the 2014 Plan, options may be granted to employees, officers, directors, consultants, advisers and service providers of the Company. On May 17, 2018, the board of directors approved an increase to the unlisted option pool of 4,392,029 options. As a result, the Company has a total of 17,100,000 unlisted options in the pool. b. On November 23, 2015, the Company’s shareholders, at a general meeting of shareholders approved the former Deputy CEO and CFO terms of service, including a grant of options, which is an exception from the Company’s compensation policy, as further described below. The terms of service included among others, a grant of 2,658,246 options, exercisable for 2,658,246 ordinary shares, no par value, of the Company at an exercise price of NIS 1.286 per share. The total benefit in respect of the grant calculated at the grant date was NIS 3,033. During January, 2018, 310,180 options were exercised into 310,180 ordinary shares by the Company’s former Deputy CEO and CFO. The remaining 297,420 options expired on February 28, 2018. c. Activity during the period: The table below includes the number of share options, and the weighted average of their exercise prices: December 31, 2017 June 30, 2018 (unaudited) Number of options Weighted average exercise price Number of options Weighted average exercise price NIS NIS Outstanding at beginning of period 5,979,973 1.25 10,752,668 1.18 Options exercised for shares (696,980 ) 1.16 (310,180 ) 1.29 Options forfeited (166,667 ) 0.63 (89,750 ) 1.33 Option expired (726,512 ) 1.69 (369,433 ) 1.41 Granted 6,362,854 1.16 2,858,790 1.28 Outstanding at end of period 10,752,668 1.18 12,842,095 1.20 d. The following table summarizes information about the assumptions for measuring the fair value of the options under the Black-Scholes option pricing model for the periods ended December 31, 2017 and June 2018, is as follows: 2017 2018 Dividend yield (%) 0 0 Expected volatility of the share prices (%) 81.6%-85.6% 82.24%-84.66% Risk-free interest rate (%) 1.94%-2.52% 2.93%-1.86% Expected life of share options (years) 10 10 According to the data above, the fair value of options granted in the

Contingent Liabilities and Comm

Contingent Liabilities and Commitments	6 Months Ended
	Jun. 30, 2018
Contingent Liabilities and Commitments [Abstract]
CONTINGENT LIABILITIES AND COMMITMENTS	NOTE 5:- CONTINGENT LIABILITIES AND COMMITMENTS a. Liens: The Company provided a NIS 171 restricted bank deposit to secure credit card payments. The Company provided a NIS 162 restricted bank deposit to secure the rent payment. b. Commitments On March 21, 2018, the Company signed an additional lease agreement for new offices. The aforementioned lease agreement is for a minimum period of 18 months from the date of signing the agreement. Under this agreement, the Company will pay a monthly rental fee of NIS 8.

Significant Accounting Polici12

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Significant Accounting Policies [Abstract]
Interim Financial Statements	a. Interim Financial Statements The accompanying consolidated balance sheet as of June 30, 2018, the consolidated statements of income, the consolidated statements of comprehensive loss and the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017, as well as the statement of changes in shareholders’ equity for the six months ended June 30, 2018, are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. In the management’s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position as of June 30, 2018, as well as its results of operations and cash flows for the six months ended June 30, 2018 and 2017. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. The accompanying unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on March 19, 2018. There have been no changes to the significant accounting policies described in the Annual Report on Form 20-F for the fiscal year ended December 31, 2017 that have had a material impact on the unaudited interim consolidated financial statements and related notes (see note 2 (c)).
Estimates and assumptions:	b. Estimates and assumptions: The preparation of the Company’s financial statements requires management to make estimates and assumptions that have an effect on application of the accounting policies and on the reported amounts of assets, liabilities and expenses. Changes in accounting estimates are reported in the period of the change in estimate. The key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed by the Company that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. ● Determining the fair value of share-based transactions: The fair value of share based transactions is determined upon initial recognition using acceptable option pricing models. The model is based on per-share price data and the exercise price and assumptions regarding expected volatility, expected life, expected dividend and risk-free interest rate.
Recently adopted accounting standards	c. Recently adopted accounting standards IFRS 9, “Financial Instruments”: In July 2014, the IASB issued the final and complete version of IFRS 9, “Financial Instruments” (“IFRS 9”), which replaces IAS 39, “Financial Instruments: Recognition and Measurement”. IFRS 9 mainly focuses on the classification and measurement of financial assets and it applies to all assets in the scope of IAS 39. According to IFRS 9, all financial assets are measured at fair value upon initial recognition. In subsequent periods, debt instruments are measured at amortized cost only if both of the following conditions are met: - The asset is held within a business model whose objective is to hold assets in order to collect the contractual cash flows. - the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. IFRS 9 also includes a new model for measurement of impairment of financial assets. Subsequent measurement of all other debt instruments and financial assets should be at fair value. IFRS 9 establishes a distinction between debt instruments to be measured at fair value through profit or loss and debt instruments to be measured at fair value through other comprehensive income. Financial assets that are equity instruments should be measured in subsequent periods at fair value and the changes recognized in profit or loss or in other comprehensive income (loss), in accordance with the election by the Company on an instrument-by-instrument basis. If equity instruments are held for trading, they should be measured at fair value through profit or loss. According to IFRS 9, the provisions of IAS 39 will continue to apply to derecognition and to financial liabilities for which the fair value option has not been elected. According to IFRS 9, changes in the fair value of financial liabilities which are attributable to the change in credit risk should be presented in other comprehensive income. All other changes in fair value should be presented in profit or loss. IFRS 9 also prescribes new hedge accounting requirements. The Company adopted the new standard effective January 1, 2018. The adoption of IFRS 9 does not have material impact on its financial statements. IFRS 16, “Leases”: In January 2016, the IASB issued IFRS 16, “Leases”. According to IFRS 16, a lease is a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration. According to IFRS 16: ● Lessees are required to recognize an asset and a corresponding liability in the statement of financial position in respect of all leases (except in certain cases) similar to the accounting treatment of finance leases according to the existing IAS 17, “Leases”. ● Lessees are required to initially recognize a lease liability for the obligation to make lease payments and a corresponding right-of-use asset. Lessees will also recognize interest and depreciation expenses separately. ● Variable lease payments that are not dependent on changes in the Consumer Price Index (“CPI”) or interest rates, but are based on performance or use (such as a percentage of revenues) are recognized as an expense by the lessees as incurred and recognized as income by the lessors as earned. ● In the event of change in variable lease payments that are CPI-linked, lessees are required to remeasure the lease liability and the effect of the remeasurement is an adjustment to the carrying amount of the right-of-use asset. ● IFRS 16 includes two exceptions according to which lessees are permitted to elect to apply a method similar to the current accounting treatment for operating leases. These exceptions are leases for which the underlying asset is of low value and leases with a term of up to one year. ● The accounting treatment by lessors remains substantially unchanged, namely classification of a lease as a finance lease or an operating lease. For leases existing at the date of transition, IFRS 16 permits lessees to use either a full retrospective approach, or a modified retrospective approach, with certain transition relief whereby restatement of comparative data is not required. The Company is currently evaluating the potential effect of IFRS 16 on its consolidated financial statements as well as its adoption methodology.
Convenience translation into U.S. dollars:	d. Convenience translation into U.S. dollars: The consolidated financial statements as of June 30, 2018 and for the six months then ended have been translated into U.S. dollars using the exchange rate of the U.S. dollar as of June 30, 2018 (U.S. $1.00 = NIS 3.65). The translation was made solely for convenience purposes. The dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into dollars, unless otherwise indicated.

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of changes in share capital	Number of shares Balance at January 1, 2017 (audited) *)107,628,485 Issuance of shares 10,622,720 Exercise of share options 1,484,154 ADS granted 450,300 Balance at December 31, 2017 (audited) *)120,185,659 Issuance of shares 9,696,960 Exercise of share options 310,180 Balance at June 30, 2018 (unaudited) *)130,192,799 *) Net of 2,641,693 treasury shares of the Company, held by the Company.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Share-Based Compensation [Abstract]
Schedule of number of share options and weighted average exercise prices	December 31, 2017 June 30, 2018 (unaudited) Number of options Weighted average exercise price Number of options Weighted average exercise price NIS NIS Outstanding at beginning of period 5,979,973 1.25 10,752,668 1.18 Options exercised for shares (696,980 ) 1.16 (310,180 ) 1.29 Options forfeited (166,667 ) 0.63 (89,750 ) 1.33 Option expired (726,512 ) 1.69 (369,433 ) 1.41 Granted 6,362,854 1.16 2,858,790 1.28 Outstanding at end of period 10,752,668 1.18 12,842,095 1.20
Schedule of fair value of options under black-scholes	2017 2018 Dividend yield (%) 0 0 Expected volatility of the share prices (%) 81.6%-85.6% 82.24%-84.66% Risk-free interest rate (%) 1.94%-2.52% 2.93%-1.86% Expected life of share options (years) 10 10

General (Details)

General (Details) ₪ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018ILS (₪)	Jun. 30, 2017ILS (₪)	Dec. 31, 2017ILS (₪)	Jun. 30, 2018ILS (₪)
General (Textual)
Net loss	$ (2,620)	₪ (9,564)	₪ (17,053)	₪ (28,224)
Negative cash flows from operating activities	(3,083)	₪ (11,255)	₪ (8,683)
Accumulated deficit	$ (20,139)			₪ (63,943)	₪ (73,507)

Significant Accounting Polici16

Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2018
Significant Accounting Policies (Textual)
Description of translated exchange rate	The consolidated financial statements as of June 30, 2018 and for the six months then ended have been translated into U.S. dollars using the exchange rate of the U.S. dollar as of June 30, 2018 (U.S. $1.00 = NIS 3.65).

Equity (Details)

Equity (Details) - shares		6 Months Ended	12 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Equity [Abstract]
Balance, Beginning	[1]	120,185,659	107,628,485
Issuance of shares		9,696,960	10,622,720
Exercise of share options		310,180	1,484,154
ADS granted			450,300
Balance, Ending	[1]	130,192,799	120,185,659
[1]	Net of 2,641,693 treasury shares of the Company held by the Company.

Equity (Details Textual)

Equity (Details Textual) $ / shares in Units, ₪ in Thousands, $ in Thousands	1 Months Ended
	Jan. 31, 2018USD ($)$ / sharesshares	Jan. 31, 2018ILS (₪)shares	Jun. 30, 2018shares	Dec. 31, 2017shares
Equity (Textual)
ADS shares, description	An amount of NIS 10,024 out of the consideration related to the ADSs and classified as equity component, while an amount of NIS 2,113 related to the fair value of the warrants to purchase ADSs and was classified as a liability.	An amount of NIS 10,024 out of the consideration related to the ADSs and classified as equity component, while an amount of NIS 2,113 related to the fair value of the warrants to purchase ADSs and was classified as a liability.
Treasury shares			2,641,693	2,641,693
Number of shares investors	484,848	484,848
Unregistered warrants to purchase	266,667	266,667
Direct offering | $ / shares	$ 8.25
Gross proceeds | ₪		₪ 13,620
Issuance costs | ₪		11,865
Investor warrants [Member]
Equity (Textual)
Issuance costs | ₪		₪ 272
Warrants exercisable term	1 year	1 year
Warrant exercise price | $ / shares	$ 12
Agent fees | $	$ 323
Purchase of tradable warrants	24,242	24,242
Warrants exercisable, description	The investor warrants except they have an exercise price of $10.31 per ADS.	The investor warrants except they have an exercise price of $10.31 per ADS.

Share-Based Compensation (Detai

Share-Based Compensation (Details) - ₪ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-Based Compensation [Abstract]
Number of options, Outstanding at beginning of period	10,752,668	5,979,973
Number of options, Options exercised for shares	(310,180)	(696,980)
Number of options, Options forfeited	(89,750)	(166,667)
Number of options, Option Expired	(369,433)	(726,512)
Number of options, Granted	2,858,790	6,362,854
Number of options, Outstanding at end of period	12,842,095	10,752,668
Weighted average exercise price, Outstanding at beginning of period	₪ 1.18	₪ 1.25
Weighted average exercise price, Options exercised for shares	1.29	1.16
Weighted average exercise price, Options forfeited	1.33	0.63
Weighted average exercise price, Option Expired	1.41	1.69
Weighted average exercise price, Granted	1.28	1.16
Weighted average exercise price, Outstanding at end of period	₪ 1.20	₪ 1.18

Share-Based Compensation (Det20

Share-Based Compensation (Details 1)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of fair value of options under black-scholes [Abstract]
Dividend yield (%)	0.00%	0.00%
Expected life of share options (years)	10 years	10 years
Minimum [Member]
Schedule of fair value of options under black-scholes [Abstract]
Expected volatility of the share prices (%)	82.24%	81.60%
Risk-free interest rate (%)	1.86%	1.94%
Maximum [Member]
Schedule of fair value of options under black-scholes [Abstract]
Expected volatility of the share prices (%)	84.66%	85.60%
Risk-free interest rate (%)	2.93%	2.52%

Share-Based Compensation (Det21

Share-Based Compensation (Details Textual) - ILS (₪) ₪ / shares in Units, ₪ in Thousands	May 17, 2018	Nov. 23, 2015	Jan. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Share-Based Compensation (Textual)
Exercisable ordinary shares		2,658,246
Unlisted option pool	17,100,000
Number of options granted		2,658,246
Fair value of options, grant		₪ 3,033		₪ 11,235	₪ 11,235
Exercise price per share		₪ 1.286
Board of Directors [Member]
Share-Based Compensation (Textual)
Unlisted option pool	4,392,029
Deputy CEO and CFO [Member]
Share-Based Compensation (Textual)
Options exercised			310,180
Option expiration date			Feb. 28, 2018
Exercisable ordinary shares			310,180
Number of remaining options exercised			297,420

Contingent Liabilities and Co22

Contingent Liabilities and Commitments (Details) - ILS (₪) ₪ in Thousands	1 Months Ended
	Mar. 21, 2018	Jun. 30, 2018
Contingent Liabilities and Commitments (Textual)
Restricted bank deposit to secure credit card payments		₪ 171
Restricted bank deposit to secure the rent payment		₪ 162
Minimum lease agreement term	18 months
Commitments agreement, description	The aforementioned lease agreement is for a minimum period of 18 months from the date of signing the agreement. Under this agreement, the Company will pay a monthly rental fee of NIS 8.
Payment of rental and administration fee	₪ 8