Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2023 | Jan. 31, 2024 | |
Document Information [Line Items] | ||
Entity Registrant Name | Sol-Gel Technologies Ltd. | |
Entity Central Index Key | 0001684693 | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Financial Statement Error Correction [Flag] | false | |
Document Registration Statement | false | |
Amendment Flag | false | |
Entity Address, Address Line One | 7 Golda Meir St | |
Entity Address, Address Line Two | Weizmann Science Park | |
Entity Address, City or Town | Ness Ziona | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 7403650 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity File Number | 001-38367 | |
Document Shell Company Report | false | |
Document Accounting Standard | U.S. GAAP | |
Document Transition Report | false | |
Document Annual Report | true | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | L3 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Common Stock, Shares Outstanding | 27,857,620 | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Security Exchange Name | NASDAQ | |
Trading Symbol | SLGL | |
Title of 12(b) Security | Ordinary Shares | |
Auditor Firm ID | 1309 | |
Auditor Location | Tel-Aviv, Israel | |
Auditor Name | Kesselman & Kesselman | |
ICFR Auditor Attestation Flag | false | |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | Adv. Tamar Fishman Jutkowitz | |
Entity Address, Address Line One | 7 Golda Meir St | |
Entity Address, Address Line Two | Weizmann Science Park | |
Entity Address, City or Town | Ness Ziona | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 7403650 | |
City Area Code | 972 | |
Local Phone Number | 8-9313429 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 7,513 | $ 12,448 |
Bank deposits | 10,012 | 12,500 |
Marketable securities | 20,471 | 8,678 |
Accounts receivables | 377 | 62 |
Receivables from collaborative arrangements | 0 | 7,858 |
Prepaid expenses and other current assets | 2,794 | 1,509 |
TOTAL CURRENT ASSETS | 41,167 | 43,055 |
NON-CURRENT ASSETS: | ||
Restricted long-term deposits and cash equivalents | 1,284 | 1,288 |
Property and equipment, net | 434 | 660 |
Operating lease right-of-use assets | 1,721 | 876 |
Other long-term assets | 55 | 0 |
Funds in respect of employee rights upon retirement | 626 | 749 |
TOTAL NON-CURRENT ASSETS | 4,120 | 3,573 |
TOTAL ASSETS | 45,287 | 46,628 |
CURRENT LIABILITIES: | ||
Accounts payable | 154 | 251 |
Other accounts payable | 3,921 | 2,360 |
Current maturities of operating leases | 447 | 718 |
TOTAL CURRENT LIABILITIES | 4,522 | 3,329 |
LONG-TERM LIABILITIES: | ||
Operating leases liabilities | 1,206 | 54 |
Liability for employee rights upon retirement | 915 | 1,032 |
TOTAL LONG-TERM LIABILITIES | 2,121 | 1,086 |
TOTAL LIABILITIES | 6,643 | 4,415 |
COMMITMENTS (Note 7) | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares, NIS 0.1 par value – authorized: 50,000,000 as of December 31, 2022 and 2023, respectively; issued and outstanding: 23,129,469 and 27,857,620 as of December 31, 2022 and December 31, 2023, respectively | 774 | 638 |
Additional paid-in capital | 258,173 | 234,640 |
Accumulated deficit | (220,303) | (193,065) |
TOTAL SHAREHOLDERS' EQUITY | 38,644 | 42,213 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 45,287 | $ 46,628 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | ₪ 0.1 | ₪ 0.1 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 27,857,620 | 23,129,469 |
Ordinary shares, shares outstanding | 27,857,620 | 23,129,469 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
TOTAL REVENUES | $ 1,554 | $ 3,883 | $ 31,272 |
RESEARCH AND DEVELOPMENT EXPENSES | 23,541 | 12,682 | 20,381 |
GENERAL AND ADMINISTRATIVE EXPENSES | 7,373 | 7,445 | 8,451 |
OTHER INCOME, net | 55 | 0 | 524 |
TOTAL OPERATING INCOME (LOSS) | (29,305) | (16,244) | 2,964 |
FINANCIAL INCOME, net | 2,067 | 1,321 | 257 |
NET INCOME (LOSS) FOR THE YEAR | $ (27,238) | $ (14,923) | $ 3,221 |
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ (1.01) | $ (0.65) | $ 0.14 |
DILUTED EARNINGS (LOSS) PER ORDINARY SHARE | $ (1.01) | $ (0.65) | $ 0.14 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: | |||
BASIC | 27,087,081 | 23,128,722 | 23,063,493 |
DILUTED | 27,087,081 | 23,128,722 | 23,566,182 |
COLLABORATION REVENUES | |||
TOTAL REVENUES | $ 0 | $ 0 | $ 23,772 |
LICENSE REVENUES | |||
TOTAL REVENUES | $ 1,554 | $ 3,883 | $ 7,500 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Total | |||
Balance at Dec. 31, 2020 | $ 635 | $ 231,577 | $ (181,363) | $ 50,849 | |||
Balance, shares at Dec. 31, 2020 | 23,000,782 | ||||||
Net income (loss) for the year | $ 0 | 3,221 | 3,221 | ||||
Issuance of shares through ATM, net of issuance costs | $ 1 | 504 | 0 | 505 | |||
Issuance of shares through ATM, net of issuance costs, shares | 41,154 | ||||||
Vesting of restricted share units | [1] | [1] | [1] | ||||
Vesting of restricted share units, shares | 19,170 | ||||||
Exercise of options | $ 2 | 330 | 0 | 332 | |||
Exercise of options, shares | 65,698 | ||||||
Share-based compensation | $ 0 | 687 | 0 | 687 | |||
Balance at Dec. 31, 2021 | $ 638 | 233,098 | (178,142) | 55,594 | |||
Balance, shares at Dec. 31, 2021 | 23,126,804 | ||||||
Net income (loss) for the year | $ 0 | 0 | (14,923) | (14,923) | |||
Exercise of options | [1] | 15 | 0 | 15 | |||
Exercise of options, shares | 2,665 | ||||||
Share-based compensation | $ 0 | 1,527 | 0 | 1,527 | |||
Balance at Dec. 31, 2022 | $ 638 | 234,640 | (193,065) | $ 42,213 | |||
Balance, shares at Dec. 31, 2022 | 23,129,469 | 23,129,469 | |||||
Net income (loss) for the year | (27,238) | $ (27,238) | |||||
Issuance of shares and warrants through public offering, net of issuance costs | $ 74 | 11,468 | 11,542 | ||||
Issuance of shares and warrants through public offering, net of issuance costs, shares | 2,560,000 | ||||||
Issuance of shares and warrants through private placement from the controlling shareholder | $ 56 | 9,944 | 10,000 | ||||
Issuance of shares and warrants through private placement from the controlling shareholder, shares | 2,000,000 | ||||||
Exercise of options | $ 6 | 262 | 268 | ||||
Exercise of options, shares | 168,151 | ||||||
Share-based compensation | 1,859 | 1,859 | |||||
Balance at Dec. 31, 2023 | $ 774 | $ 258,173 | $ (220,303) | $ 38,644 | |||
Balance, shares at Dec. 31, 2023 | 27,857,620 | 27,857,620 | |||||
[1]less than $1 thousand |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) for the year | $ (27,238) | $ (14,923) | $ 3,221 |
Adjustments required to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation | 342 | 562 | 880 |
Loss (income) from disposal of property and equipment | (55) | 0 | 29 |
Changes in accrued liability for employee rights upon retirement | 6 | 20 | (32) |
Share-based compensation expenses | 1,859 | 1,527 | 687 |
Net changes in operating leases | 35 | (194) | 14 |
Changes in fair value of marketable securities | (436) | 119 | (125) |
Financial expenses (income), net | 89 | (133) | 55 |
Changes in operating asset and liabilities: | |||
Receivables from collaborative arrangements | 7,858 | 12,609 | (18,314) |
Accounts receivables | (315) | (62) | 0 |
Prepaid expenses and other current assets | (1,340) | (709) | 274 |
Accounts payable, accrued expenses and other | 1,465 | (8,300) | 5,620 |
Net cash used in operating activities | (17,730) | (9,484) | (7,691) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (134) | (171) | (143) |
Proceeds from sale of property and equipment | 74 | 0 | 0 |
Short-term deposits | 2,488 | 8,948 | (48) |
Long-term deposits | (813) | 10 | (5) |
Investments in marketable securities | (23,164) | (10,006) | (6,716) |
Proceeds from sale and maturity of marketable securities | 11,807 | 2,918 | 26,784 |
Net cash provided by (used in) investing activities | (9,742) | 1,699 | 19,872 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of shares through ATM, net of issuance costs | 0 | 0 | 505 |
Proceeds from exercise of options | 268 | 15 | 332 |
Proceeds from issuance of shares and warrants through placement from the controlling shareholder | 10,000 | 0 | 0 |
Proceeds from issuance of shares and warrants through public offering, net of issuance costs | 11,542 | 0 | 0 |
Net cash provided by financing activities | 21,810 | 15 | 837 |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | (73) | 133 | (55) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | (5,735) | (7,637) | 12,963 |
CASH AND CASH EQUIVALENTS AND RESRICTED CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 13,598 | 21,235 | 8,272 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF THE YEAR | 7,863 | 13,598 | 21,235 |
Cash and Cash equivalents | 7,513 | 12,448 | 20,085 |
Restricted cash equivalents | 350 | 1,150 | 1,150 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS SHOWN IN STATEMENT OF CASH FLOWS | 7,863 | 13,598 | 21,235 |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS: | |||
Recognition of new operating lease ROU and liabilities | 1,590 | 88 | 253 |
SUPPLEMENTARY INFORMATION: | |||
Income taxes paid | 0 | 0 | 34 |
Interest received | $ 1,261 | $ 392 | $ 774 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Sol-Gel Technologies Ltd. (collectively with its U.S. subsidiary, the "Company") is an Israeli Company incorporated in 1997. The Company is an innovative dermatology company with a successful track record of two NDA approvals and advanced orphan drugs pipeline. The Company has two approved drugs: (i) Twyneo®, which was developed for the treatment of acne vulgaris and received marketing authorization by the U.S. Food and Durg Administration (the "FDA") on July 27, 2021 and (ii) Epsolay®, a treatment for subtype II rosacea that received marketing authorization by the FDA on April 25, 2022. In June 2021, the Company entered into two exclusive license agreements with Galderma for the commercialization of Twyneo® and Epsolay®, in the United States, see Note 9a. On April 14, 2022, the Company announced that Twyneo® is available for purchase by consumers who obtain a prescription from their physician. On June 2, 2022, the Company announced that Epsolay® is available for purchase by consumers who obtain a prescription from their physician. In addition to the novel products, the Company’s products included the approved generic products Acyclovir, Ivermectin and other generic product candidates. In November 2021, the Company entered into an agreement with Padagis, to sell its rights in relation to ten generic collaborative agreements between the parties, including the agreements for the two aforementioned approved generic drug products. Under the new agreement, the Company has retained collaboration rights to two generic programs related to four generic drug candidates, see Note 8c. On January 27, 2023 the Company entered into an asset purchase agreement ("APA") with PellePharm, Inc. (hereafter-“PellePharm”), pursuant to which the Company agreed to purchase all of the assets related to the topically-applied patidegib, a hedgehog signaling pathway blocker, for the treatment of Gorlin syndrome (such compound designated as investigational compound SGT-610). On January 30, 2023, upon closing of the transaction, the Company paid an upfront payment (hereafter- "upfront payment") of $4 million to PellePharm. The Company is required to pay an additional amount of $0.7 million, subject to the terms as defined in the APA, 15 months from the closing date. In addition, the Company will be required to pay total development and NDA acceptance milestones of up to $6 million, and up to $64 million in commercial milestones which amount increases to $89 million when sales exceed $500 million as well as single digit royalties which increase to double digit royalties when sales exceed $500 million. The upfront payment and the additional development milestone payments under the APA represent payments for research and development in-process ("IPR&D") acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use. Accordingly, such payments are expensed as incurred and are recognized as research and development expenses. The Company has a wholly owned U.S. subsidiary - Sol-Gel Technologies Inc. (the "Subsidiary"). The Subsidiary supports the Company with regard to marketing, regulatory affairs and business development relating to its products and technology in the U.S. In October 2023, Hamas terrorists infiltrated Israel’s southern border and launched a series of attacks against Israel. Following these attacks, Israel’s security cabinet declared war against Hamas and initiated a military campaign. As of the issuance date of this report, there was no material impact on the Company's ongoing operations in Israel. The Company continues to monitor its ongoing activities and will make any needed adjustments to ensure continuity of its business, while supporting the safety and well-being of its employees. Risk and Uncertainties Since incorporation through December 31, 2023, the Company has an accumulated deficit of approximately $220,303 and its activities have been funded mainly by its shareholders, collaboration revenues and license agreements, see also Notes 8 and 9. The Company expects to continue to incur significant research and development and other costs related to its ongoing operations. In addition, management is continuing to analyze cash resources and considering raising additional funding from different sources, such as corporate collaborations, public or private equity offerings and/or debt financings. On August 9, 2023, following a recent assessment of partner licensing revenues and the delay in the development of SGT-210, the Company announced a restructuring plan to reduce operating expenses as part of cost-saving measures. The restructuring plan’s cost-saving measures included workforce reductions of about 25 employees, as well as other cost-mitigation measures and was completed during the third quarter. Management expects that the Company's cash and cash equivalents, deposits and marketable securities as of December 31, 2023 will allow the Company to fund its operating plan through at least the next 12 months from the financial statement issuance date. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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”). a. 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 assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to the fair value of share-based compensation and the incremental borrowing rate for leases. b. Functional and presentation currency The U.S. dollar (“dollar”) is the currency of the primary economic environment in which the operations of the Company and its subsidiary are conducted. The Company’s financing has been provided in dollars, revenues are primarily in dollars and a significant part of expenses are incurred in dollars. The financial statements are presented in dollars, which is the Company’s functional and presentation currency. 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: (1) for transactions — exchange rates at transaction dates or average rates; and (2) 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. c. 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. d. Bank deposits Bank deposits with original maturity dates of more than three months but less than one year are included in short-term deposits. Such short-term deposits bear interest at an average annual rate of approximately 1.8%-5.9% in 2023. Interest accrued on bank deposits was recorded as interest receivable as part of "Prepaid expenses and other current assets" in the company’s balance sheet. Bank deposits with maturity of more than one year are considered long-term. As of December 31, 2023, the Company has a restricted deposit in the amount of $1,167 in order to secure certain transactions with its banks. This amount is presented under restricted long-term deposits and cash. e. Marketable securities Marketable securities consist of debt securities. The Company elected the fair value option to measure and recognize its investments in debt securities in accordance with ASC 825, Financial Instruments as the Company manages its portfolio and evaluates the performance on a fair value basis. Changes in fair value, realized gains and losses on sales of marketable securities, are reflected in the statements of operation as finance expense (income), net. Marketable securities are classified under current assets in the consolidated balance sheet as they represent the investment of funds available for the Company’s current operations. f. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. The derivatives do not qualify for hedge accounting, therefore the changes in the fair value are included in financial expense (income), net. The currency hedged items are denominated in New Israeli Shekel (NIS). The counterparties to the derivatives are major banks in Israel. g. Accounts receivables Accounts receivable are initially recognized at the transaction price and subsequently measured at amortized cost less any allowance for expected credit losses. h. Property and equipment 1) Property and equipment are stated at cost, net of accumulated depreciation and amortization. 2) The Company’s property and equipment are depreciated utilizing the straight-line method based on their estimated useful life. Annual rates of depreciation are as follows: % Laboratory equipment 10 – 33 (mainly 15 – 25) Office equipment and furniture 7 – 15 Computers and related equipment 33 Leasehold improvements are amortized utilizing the straight-line method over the shorter of the expected lease term or the estimated useful life of the improvements. i. Impairment of long-lived assets The Company tests long-lived 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 these assets' carrying amount, an impairment loss would be recognized. The assets would then be written down to their estimated fair values. During the three years ended December 31, 2023, the Company did not recognize an impairment loss on its long-lived assets. j. Share-based compensation The Company accounts for employees’ and non-employees' share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment compensation is recognized as an expense over the requisite service period. The Company elected to recognize compensation costs for awards to employee conditioned only on continued service that have a graded vesting schedule using the accelerated method based on the multiple-option award approach. The Company has elected to recognize forfeitures as they occur. k. Research and development expenses 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, lab expenses, consumable equipment and consulting fees. All costs associated with research and developments are expensed as incurred. Acquisitions of in-process research and development product candidates, which are not part of a business combination and that have no alternative use, are recognized as an expense as research and development expenses as incurred. Grants received from Israel Innovation Authority (hereafter — “IIA”), formerly known as the Office of the Chief Scientist of the Ministry of Economy and Industry, or the OCS are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company will comply with the conditions attached to the grant and there is 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 7a(1). Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company outsources its clinical trial activities utilizing external entities such as clinical research organizations, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical trials. Clinical trial costs are expensed as incurred. l. Revenue recognition The Company applies ASC 606, Revenue from Contracts with Customers. According to the standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. An entity only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer, after considering any price concession expected to be provided to the customer, as applicable. At contract inception, the entity assesses the goods or services promised within each contract, determines whether they are performance obligations and assesses whether each promised good or service is distinct. A good or service promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The entity then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements The Company entered into collaborative arrangements with partners that fall under the scope of Topic 808, Collaborative Arrangements (“ASC 808”). While these arrangements are in the scope of ASC 808, the Company may analogize to ASC 606 for some aspects of the arrangements. The Company analogizes to ASC 606 for certain activities within the collaborative arrangement for the delivery of a good or service (i.e., a unit of account) that is part of its ongoing major or central operations. Revenue recognized by analogizing to ASC 606 is recorded as “collaboration revenues”. The terms of the Company’s collaborative arrangements typically include one or more of the following: (i) royalties on net sales of licensed products; (ii) reimbursements or cost-sharing of R&D expenses. Each of these payments results in collaboration revenues or an offset against R&D expense. Royalties: For arrangements that include sales-based royalties and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes collaboration revenues at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Under certain collaborative arrangements, the Company has been reimbursed for a portion of its R&D expenses or participates in the cost-sharing of such R&D expenses. Such reimbursements and cost-sharing arrangements have been reflected as a reduction of R&D expense in the Company’s consolidated statements of operations, as the Company does not consider performing research and development services for reimbursement to be a part of its ongoing major or central operations. For arrangements that include a significant financing component, the company separates the significant financing component from the revenue and interest income is recorded when payments are received. See Note 8. Licensing agreements The Company has license agreements with two parties, Galderma and Searchlight. In its license agreements with Galderma, the Company has identified one performance obligation (see Note 9a): grant of the license and use of its IP . In its license agreements with Searchlight (see Note 9b), the Company has identified two performance obligations: grant of the license and use of its IP, as well as continuing support during the regulatory approval process. The grant of the license is recognized at a point in time, upon transfer of control over the license to the licensee, while the services are recognized over time as the services are performed. ASC 606 defines the ‘Transaction Price’ as the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to a customer. License agreements may contain variable consideration contingent upon the licensee achieving certain milestones, as well as sales-based royalties, in accordance with the relevant agreement. Variable payments, contingent on achieving additional milestones, are included in the transaction price based on most likely amount method. Amounts included in the transaction price are recognized only when it is probable that a significant reversal of cumulative revenues will not occur, usually upon achievement of the specific milestone, in accordance with the relevant agreement. Sales-based royalties are not included in the transaction price. Rather, they are recognized as the related sale occurs, due to the specific exception of ASC 606 for sales-based royalties in licensing of intellectual properties. m. Income taxes 1) Deferred taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and assets are classified as non-current. 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. n. Leases Right of use ("ROU") assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s lease terms may include periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option to extend the lease or not exercise the option to terminate the lease. The Company uses the implicit rate when readily determinable. As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for operating lease is recognized on a straight-line basis over the lease term. The Company elected to not separate lease and non-lease components for the leases. The Company elected the practical expedient of the short-term lease recognition exemption for all leases with a term shorter than 12 months. Additionally, the company applies the portfolio approach to account for operating lease ROU asset and liabilities for certain car leases and incremental borrowing rates. o. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and certain receivables. The Company deposits cash and cash equivalents with highly rated financial institutions. In addition, all marketable securities either 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. p. Earnings (loss) per share Basic earnings (loss) per share is computed based on net earnings (loss) for the period divided by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per share is based upon the weighted average number of ordinary shares and of potential ordinary shares outstanding when dilutive. Potential ordinary shares include outstanding stock options and warrants, which are included under the treasury stock method when dilutive. The calculation of diluted earnings (loss) per share does not include 3,397,834 , 3,900,837 and 7,070,688 options and warrants for the years ended December 31, 2021, 2022 and 2023, respectively, because their effect would be anti-dilutive. q. 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 fair value of bank deposits approximates their carrying value, since they bear interest at rates close to the prevailing market rates. In addition, due to the short-term nature and/or low-risk nature of the Company's cash and cash equivalents, restricted cash equivalents, accounts receivable, accounts payable and other payables , their carrying amounts approximates their fair value. r. Recently issued accounting pronouncement In November 2023, the FASB issued ASU 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3 - MARKETABLE SECURITIES: The following table sets forth the Company’s marketable securities for the indicated period: December 31, 2022 2023 Level 2 securities: U.S government and agency bonds 1,494 2,583 Other foreign government bonds - 1,946 Corporate bonds* 7,184 15,942 Total 8,678 20,471 * Investments in Corporate bonds rated A or higher. The Company elected the fair value option to measure and recognize its investments in debt securities in accordance with ASC 825, Financial Instruments as the Company manages its portfolio and evaluates the performance on a fair value basis. The Company’s debt securities are classified within Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The cost of marketable securities as of December 31, 2023 is $20,180. The table below sets forth a summary of the changes in the fair value of the Company’s marketable securities for the years ended December 31, 2022 and 2023: December 31, 2022 2023 Balance at beginning of the year $ 1,709 $ 8,678 Additions 10,006 23,164 Sale or maturity (2,918 ) (11,807 ) Changes in fair value during the year (119 ) 436 Balance at end of the year $ 8,678 $ 20,471 As of December 31, 2023, all the Company’s debt securities had the following maturity dates: Market value December 31, 2023 Due within one year 16,127 Between 1-2 years 4,344 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4 - PROPERTY AND EQUIPMENT December 31 2022 2023 Cost: Laboratory equipment $ 3,688 $ 3,514 Office equipment and furniture 265 288 Computers and software 428 451 Leasehold improvements 1,993 1,985 6,374 6,238 Less: Accumulated depreciation and amortization (5,714 ) (5,804 ) Property and equipment, net $ 660 $ 434 Depreciation and amortization expense totaled $880, $562 and $342 for the years ended December 31, 2021, 2022 and 2023, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Lessor Disclosure [Abstract] | |
LEASES | NOTE 5 - LEASES: The Company leases offices and vehicles under operating leases. For leases with terms greater than 12 months, the Company records right of use assets and lease liabilities at the present value of lease payments over the leases term. Offices The Company leases office spaces and research and development facilities under several agreements. These agreements are linked to the change in the Israeli consumer price index and were to expire in December 2023 Vehicles The Company has entered into operating lease agreements for vehicles used by its employees for a period of 3 years. These contracts are classified as operating leases and presented under operating lease right-of-use assets and operating leases liabilities. Lease Position The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheet: As of December 31, 2022 2023 Assets Operating Leases Operating lease right-of-use assets 876 1,721 Liabilities Current liabilities Current maturities of operating leases 718 447 Long-term liabilities Non-current operating leases 54 1,206 Weighted Average Remaining Lease Term Operating leases 0.45 3.73 Weighted Average Discount Rate Operating leases 6.11 % 13.3 % Lease Costs The table below presents certain information related to lease costs of operating leases: Year Ended December 31, 2022 2023 Operating lease cost: 797 745 The table below presents supplemental cash flow information related to leases: Year Ended December 31, 2022 2023 Cash paid for amounts included in the measurement of leases liabilities: Operating cash flows from operating leases 989 799 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows under leases as of December 31, 2023 were as follows: Operating Leases For the year ending December 31, 2024 592 2025 539 2026 and thereafter 912 Total minimum lease payments 2,043 Less: amount of lease payments representing interest (390 ) Present value of future minimum lease payments 1,653 Less: Current maturities of operating leases 447 Long-term operating leases liabilities 1,206 |
EMPLOYEE SEVERANCE BENEFITS
EMPLOYEE SEVERANCE BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE SEVERANCE BENEFITS | NOTE 6 - EMPLOYEE SEVERANCE BENEFITS: The Company is required to make severance payments upon dismissal of an employee or upon termination of employment in certain circumstances. In accordance with the current employment terms starting in August 2014 with all of its employees (Section 14 of the Israeli Severance Pay Law, 1963), the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s retirement benefit obligation. The Company is fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plan”). For employees whose employment term began prior to August 2014, the severance payment liability (based upon length of service and the latest monthly salary — one month’s salary for each year employed) is recorded on the Company’s balance sheet under “Liability for employee rights upon retirement". The liability is recorded as if it was payable at each balance sheet date on an undiscounted basis. This liability is funded in part from the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the balance sheets under “Funds in respect of employee rights upon retirement.” These policies are the Company’s assets. The amounts of severance payment expenses were $445, $461 and $445 for the years ended December 31, 2023, 2022 and 2021, respectively, of which $389, $405 and $404 in the years ended December 2023, 2022 and 2021, respectively, were in respect of the Contribution Plan. The Company expects to contribute approximately $401 in the year ending December 31, 2024 to insurance companies in connection with its expected severance liabilities for that year. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 7 - COMMITMENTS: a. Royalty Commitments: 1) The Company is obligated to pay royalties to the IIA on proceeds from the sale of products developed from research and development activities that were funded, partially, by grants from the IIA. Under the specific terms of the funding arrangements with the IIA, royalties of 3.5% to 25% are payable on the sale of products developed with funding received from the IIA, which payments shall not exceed, in the aggregate, 300% of the amount of the grant received (dollar linked), plus interest at annual rate based on the 12-month SOFR rate as published by CME Group on the first day of commerce or any other body certified by the Federal Reserve, or according to an alternative bulletin as published by the Bank of Israel. Up to December 31, 2023, the Company had recognized and received grants from the IIA in the aggregate amount of $1,430 (no grants were received in the years ended December 31, 2021, 2022 and 2023). Through December 31, 2023, the Company recorded an accumulated royalty expense of $2,170 as royalties to the IIA with respect to revenue recognized through December 31, 2023 ($23, $24 and $37 were recorded in 2021, 2022 and 2023 accordingly, as an expense in the consolidated statements of operations). 2) The Company has an agreement, that was amended several times (hereafter — the agreements) with Yissum Research Development Company (hereafter — “Yissum”), the technology-licensing arm of the Hebrew University of Jerusalem. According to the agreements, the Company received from Yissum an exclusive and a non-exclusive license for the commercialization of certain Yissum patents. According to the agreements the Company shall pay Yissum: Royalties of 1.5% of net sales related to certain patents. 1.5% – 8% of proceeds received by the Company for the sublicense or license of certain patents. Royalty expenses in immaterial amounts were recorded in 2021, 2022 and 2023 in respect of these agreements. According to the agreements, the Company may continue commercial use of certain Yissum’s patents in connection with the products and subject to the obligation to pay Yissum the royalties and the sub-license fees. b. As to collaboration agreements, see detailed information in Note 8. |
COLLABORATION AGREEMENTS
COLLABORATION AGREEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
COLLABORATION AGREEMENTS | NOTE 8 - COLLABORATION AGREEMENTS: a. In 2007, the Company granted rights to a third party for use and commercialization of a product for skin protection. Under this agreement, the Company is entitled to royalties during the years 2016 to 2024. Based on current sales, royalties are not material. b. In 2016 through 2020, the Company entered into several collaboration agreements mainly with one third party (the "Partner") for the development, manufacturing and commercialization of several product candidates (including an agreement assumed by the Company in August 2018, following the transfer of an in-process research and development product candidate from a related party). c. Under the agreements, the Partner is obligated to conduct regulatory, scientific, clinical and technical activities necessary to develop the product and prepare and file an abbreviated new drug application ("ANDA"), with the FDA and gain regulatory approval. The Company participates in the development of the product candidates, including participation in joint steering committees and is obligated for sourcing the active pharmaceutical ingredient (API) during the development phase. Upon FDA approval, the Partner has exclusive rights and is required to use diligent efforts to commercialize these products in territories defined under the agreements, including all required sales, marketing and distributing activities associated with the agreements. The Company is entitled to a share of the Partner's gross profits related to the sale of the products, as such term is defined in each of the agreements. These Agreements are considered to be within the scope of ASC 808, as the parties are active participants and exposed to the risks and rewards of the collaborative activity. The Company recognizes collaboration revenues when the related sales occur. In November 2021, the Company entered into a new agreement ("New Agreement") with the Partner, to sell its rights to the Partner in relation to ten generic collaborative agreements between the parties in consideration of $21,500 which was paid over 24 months. Under the New Agreement, the Company has retained collaboration rights to two generic programs related to four generic drug candidates, and is no longer entitled to receive its share in profit as detailed above. In addition, the Company ceased paying any outstanding and future operational costs related to these collaborative agreements. |
LICENSE AGREEMENTS
LICENSE AGREEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
License Agreements [Abstract] | |
LICENSE AGREEMENTS | NOTE 9 – LICENSE AGREEMENTS: a. In June 2021, the Company entered into two exclusive license agreements with Galderma for the commercialization of two of the Company's most advanced investigational drug products (Twyneo® and Epsolay®) in the United States. The Company is entitled to amounts of up to $7.5 million per product in upfront payments and regulatory approval milestone payments assuming 2021 approval of each respective product. The Company is also eligible to receive tiered double-digit royalties ranging from mid-teen to high-teen percentage of net sales as well as up to $9 million in sales milestone payments. According to the agreement, the Company has an option to regain commercialization rights five years following first commercialization. On July 27, 2021, the Company announced that the FDA approved the Company’s first proprietary drug product, Twyneo®. On April 14, 2022, the Company announced that Twyneo® is available for purchase by consumers who obtain a prescription from their physician, see further details in Note 1. In March 2022, the Company had refunded the $4 million upfront payment to Galderma, since FDA approval for Epsolay® had not been received as of December 31, 2021. On April 25, 2022, the Company announced that the FDA approved the drug product, Epsolay®, which entitled the Company to a $3.5 million milestone payment, as per the license agreement. In May 2022, the Company has received the $3.5 million payment from Galderma. On June 2, 2022, the Company announced that Epsolay® is available for purchase by consumers who obtain a prescription from their physician, see further details in Note 1. During 2023 and 2022, the Company recognized $1,027 and $306, respectively, as revenue from royalties in respect of the license agreement for both products. b. On June 6, 2023, the Company and Searchlight Pharma Inc. (“Searchlight”), a private Canadian specialty pharmaceutical company, signed on an exclusive license agreements for Twyneo® and Epsolay® for the Canadian market, over a fifteen-year term that is renewable for subsequent five-year periods. Searchlight will be responsible for obtaining and maintaining any regulatory approvals required to market and sell the drugs in Canada, with support from the Company. Under the agreement, the Company will receive up to $11 million in upfront payments and regulatory and sales milestones for both drugs, combined. In addition, the Company will be entitled to royalty percentages of all Canadian net sales ranging from low-double-digits to high teens. In June 2023, the Company received $500 as an upfront payment in connection with the license agreement and related support provided to Searchlight for obtaining the regulatory approval in the Canadian market. The Company is also required to support Searchlight during such period if needed based on agreed upon rates. The Company has identified two performance obligations in the license agreement as follows: (i) the license to market the products in Canada; and (ii) continuing support during the regulatory approval process. Accordingly, the Company recognized $380 as license revenue in the period and recorded $120 as contract liability in respect of the support services. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL | NOTE 10 - SHARE CAPITAL: a. Ordinary shares Rights of the Company’s ordinary shares Each ordinary share is entitled to one vote. The holder of an ordinary share is 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. 1) In July 2021, the Company entered into an ATM sales agreement ("2021 ATM Agreement") with Jefferies LLC ("Jefferies"), pursuant to which the Company was entitled, at its sole discretion, to offer and sell through Jefferies, acting as sales agent, shares having an aggregate offering price of up to $25.0 million throughout the period during which the ATM facility remains in effect. The Company agreed to pay Jefferies a commission of 3.0% of the gross proceeds from the sale of shares under the facility. Under the 2021 ATM Agreement, 41,154 shares were sold under the program for total gross proceeds of approximately $0.5 million. On April 2022, the Company terminated the 2021 ATM Agreement, effective on the same date. 2) On January 27, 2023, the Company entered into a securities purchase agreement (hereafter - “Purchase Agreement”) with Armistice Capital, pursuant to which the Company issued to Armistice Capital (i) 2,560,000 ordinary shares of the Company (the "Ordinary Shares"), par value NIS 0.1 per share in a registered direct offering (the " Registered Direct Offering") at a price of $5.00 per ordinary share and (ii) in a concurrent private placement unregistered warrants to purchase up to 2,560,000 Ordinary Shares (the "Investor Warrants"). Each of the Investor Warrants are exercisable for one ordinary share, have an exercise price of $5.85 and will become exercisable beginning six months from the date of issuance and will expire on January 27, 2028. The sale of the Ordinary Shares in the Registered Direct Offering was made by means of a shelf registration statement. The Offering closed on January 31, 2023. The gross proceeds from the Registered Direct Offering were approximately $12.8 million. Concurrently with the signing of the Purchase Agreement, the Company also entered into a subscription agreement (hereafter - “Subscription Agreement”) between the Company and M. Arkin Dermatology Ltd., the Controlling Shareholder of the Company, pursuant to which M. Arkin Dermatology Ltd. agreed to purchase 2,000,000 unregistered Ordinary Shares and unregistered warrants to purchase up to 2,000,000 ordinary shares (the “PIPE Warrants” and, together with the Investor Warrants, the “Warrants”) in a concurrent private placement (hereafter- “Affiliate Private Placement"), at a price equal to the offering price of the Ordinary Shares in the Offering. The Affiliate Private Placement agreement was contingent on certain conditions and was approved by the Company’s shareholders in March 2023. The total proceeds of $10,000 were received in April 2023. b. Share-based compensation: 1) Option plan In December 2014, the Company’s Board of Directors approved a share incentive plan (hereafter — the Plan) and reserved a pool of 629,025 ordinary shares, par value NIS 0.1 each, or such other number as the Board may determine, subject to certain terms and conditions as defined in the Plan. According to the Plan, the Company may issue shares or restricted shares, grant options or restricted share units and other share-based awards (hereafter — the Awards) to the Company's employees, consultants, directors and other service providers. In March 2023, the Company’s Board of Directors approved an increase of the ordinary shares that may be issued under the Company’s Plan by reserving an additional amount of 1,250,000 ordinary shares. The Plan is designed to enable the Company to grant awards to purchase ordinary shares under various and different tax regimes including, without limitation: pursuant and subject to Section 102 of the Israeli Tax Ordinance, pursuant and subject to Section 3(i) of the Israeli Tax Ordinance and under Internal Revenue Code Section 422. The awards may be exercised after vesting and in accordance with vesting schedules which will be determined by the Board of Directors for each grant. The maximum term of the awards is 10 years. The fair value of each option granted under the Plan is estimated using the Black-Scholes option pricing method. Expected volatility is based on the historical volatility of the company and of comparable peer companies. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the options granted in dollar terms. The expected term of the options is estimated based on the simplified method, as its historical experience for options grants as a public company is insufficient. In December 2019, the Company’s Board of Directors approved an increase of the ordinary shares that may be issued under the Company’s Plan by reserving an additional amount of 912,230 ordinary shares. As of December 31, 2023, 641,404 ordinary shares remain available for future grants under the Plan. 2) Options grants a. Option granted to employees and directors i. In March 2023, the Company granted a total of 53,092 options to several employees to purchase ordinary shares at exercise prices of either $4.63 or $5.6 per share. The options vest over a period of 4 years; one quarter of the options vest on the first anniversary of the vesting commencement date (as described in each agreement) and the rest vest quarterly over the following three years. The options expire on the tenth anniversary of their grant date. ii. In March 2023, the Company granted a total of 439,314 options to several executive officers to purchase ordinary shares at an exercise price of $4.63 or $5.6 per share. The options vest over a period of 4 years; one quarter of the options vest on the first anniversary of the vesting commencement date (as described in each agreement) and the rest vest quarterly over the following three years. The options expire on the tenth anniversary of their grant date. iii. In March 2023, the board of directors approved and recommended the Company's shareholders to approve a grant of 257,344 options to the Company's CEO to purchase ordinary shares at an exercise price of $5.6 per share. The Company's shareholders approved the grant on July 26, 2023. The options vest over a period of 4 years; one quarter of the options vest on the first anniversary of the vesting commencement date (as described in each agreement) and the rest vest quarterly over the following three years. The options expire on the tenth anniversary of their grant date. The weighted average fair value of options granted in 2022 and 2023 was $4.49 and 2.01, respectively. The underlying data used for computing the fair value of the options are as follows: 2022 2023 Value of one ordinary share $4.98-$10.0 $3.59-$3.8 Dividend yield 0% 0% Expected volatility 57.8%-62.6% 55%-56% Risk-free interest rate 2.5%-4.2% 3.97%-4.1% Expected term 7 years 7 years The total unrecognized compensation cost of employee options at December 31, 2023 is $ , which is expected to be recognized over a period of years. The following table summarizes the number of options granted to employees under the Plan for the year ended December 31, 2023, and related information: Year ended December 31 2022 2023 Number of options Weighted average exercise price Weighted average remaining contractual life Number of options Weighted average exercise price Weighted average remaining contractual life Options outstanding at the beginning of the year 1,131,029 $ 5.64 5.73 1,864,377 $ 7.09 7.11 Granted 747,488 $ 9.31 9.21 749,750 $ 5.52 9.15 Exercised (2,665 ) $ 5.69 - (168,151 ) $ 2.8 - Expired (450 ) $ 9.93 - (57,740 ) $ 8.63 - Forfeited (11,025 ) $ 7.58 - (67,114 ) $ 7.8 - Options outstanding at the end of the year 1,864,377 $ 7.09 7.11 2,321,122 $ 6.57 6.54 Options exercisable at the end of the year 1,179,132 $ 5.14 3.99 1,547,237 $ 6.17 3.72 b. Option granted to non-employees All compensation cost of non-employees' options were fully recognized as of December 31, 2023. The following table summarizes the number of options granted to non-employees under the Plan as of December 31, 2023, and related information (no options were granted to non-employees in 2023): December 31 2023 Number of options Weighted average exercise price Weighted average remaining contractual life Options outstanding at the end of the year 198,575 $ 7.70 3.84 Options exercisable at the end of the year 198,575 $ 7.70 3.84 c. Restricted Share Units (RSUs) granted to Directors The following table illustrates the effect of share-based compensation on the statements of operations: Year ended December 31 2021 2022 2023 Research and development expenses $ 33 $ 665 $ 701 General and administrative expenses $ 654 $ 862 $ 1,158 $ 687 $ 1,527 $ 1,859 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 11 - TAXES ON INCOME: a. Tax rates in Israel The Company is taxed in accordance with Israeli tax laws. The corporate tax rates applicable to 2021, 2022 and 2023 is 23%. Capital gain is subject to capital gain tax according to the corporate tax rate in the year the assets are sold. b. Tax rates for the U.S Subsidiary The subsidiary is taxed according to U.S. tax laws. The Company’s income is taxed in the United States at the federal rate of 21%. c. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”) Under the Investment Law, including Amendment No. 60 to the Investment Law that was published in April 2005, by virtue of the Benefited Enterprise program for certain of its facilities; the Company may be entitled to various tax benefits. The main benefit arising from such status is the reduction in tax rates on income derived from a Benefited Enterprise. The extent of such benefits depends on the location of the enterprise. Since the Company’s facilities are not located in “national development zone A,” income derived from Benefited Enterprises will be tax exempt for a period of two years and then have a reduced tax rate for a period of up to an additional eight years. The period of tax benefits, as described above, is limited to 12 years from the beginning of the Benefited Enterprise election year (2012). As of December 31, 2023, the period of benefits has not yet commenced. In the event of distribution of cash dividends from income, which was tax exempt as above, the amount distributed will be subject to the tax rate it was exempted from. The Company is entitled to claim accelerated depreciation in respect of equipment used by the approved enterprises during five tax years. Entitlement to the above benefits is conditioned upon the Company fulfilling the conditions stipulated by the Investment Law and regulations published thereunder. In the event of failure to comply with these conditions, the benefits may be canceled, and the Company may be required to refund the amount of the benefits, in whole or in part, with the addition of linkage differences to the Israeli consumer price index and interest. The Investment Law was amended as part of the Economic Policy Law for the years 2011 – 2012 (the “Amendment”), which became effective on January 1, 2011 and was further amended in August 2013 and January 2017. Under the 2017 Amendment, and provided the conditions stipulated therein are met, income derived by Preferred Companies from ‘Preferred Technological Enterprises’ (“PTE”) (as defined in the 2017 Amendment), would be subject to reduced corporate tax rates of 7.5% in Development Zone “A” and 12% elsewhere, or 6% in case of a ‘Special Preferred Technological Enterprise’ (“SPTE”) as defined in the 2017 Amendment) regardless of the company’s geographical location within Israel. A Preferred Company distributing dividends from income derived from its PTE or SPTE, would subject the recipient to a 20% tax (or lower, if so provided under an applicable tax treaty). The 2017 Amendment further provides that, in certain circumstances, a dividend distributed to a corporate shareholder who is not an Israeli resident for tax purposes would be subject to a 4% tax (inter alia, if the amount of foreign investors in the distributing company exceeds 90%). Such taxes would generally be withheld at source by the distributing company. On June 14, 2017, the Encouragement of Capital Investments Regulations (Preferred Technology Income and Capital Profits for a Technological Enterprise), 2017 (the “Regulations”) were published, which adopted Action 5 under the base erosion and profit shifting (“BEPS”) regulations. The Regulations describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE and under the SPTE Regime and determine certain requirements relating to documentation of intellectual property for the purpose of the PTE. According to these provisions, a company that complies with the terms under the PTE regime may be entitled to certain tax benefits with respect to income generated during the company’s regular course of business and derived from the preferred intangible asset (as determined in the Investments Law), excluding income derived from intangible assets used for marketing and income attributed to production activity. In the event that intangible assets used for marketing purposes generate over 10% of the PTE’s income, the relevant portion, calculated using a transfer pricing study, would be subject to regular corporate income tax. If such income does not exceed 10%, the PTE will not be required to exclude the marketing income from the PTE’s total income. The Regulations set a presumption of direct production expenses plus 10% with respect to income related to production, which can be countered by the results of a supporting transfer pricing study. Tax rates applicable to such production income expenses will be similar to the tax rates under the Preferred Enterprise regime, to the extent such income would be considered as eligible. In order to calculate the preferred income, the PTE is required to take into account the income and the research and development expenses that are attributed to each single preferred intangible asset. Nevertheless, it should be noted that the transitional provisions allow companies to take into account the income and research and development expenses attributed to all of the preferred intangible assets they have. Under the transitional provisions of the law, a company is allowed to continue to enjoy the tax benefits available under the law prior to its amendment until the end of the period of benefits, as defined in the law. In each year during the period of benefits as a Benefited Enterprise, the Company will be able to opt for application of the amendment, thereby making available the tax rates discussed above. The Company’s election to apply the amendment is irrecoverable. As of December 31, 2023, the Company’s management decided not to adopt the application of the Amendment. There is no assurance that future taxable income of the Company will qualify as benefited or preferred income or that the benefits described above will be available to the Company in the future. d. Tax assessments Tax assessments filed by the Company through the year 2018 are considered to be final. e. Losses for tax purposes carried forward to future years As of December 31, 2023, the Company had approximately $187.4 million of net carry forward tax losses which are available to reduce future taxable income with no limited period of use. f. Deferred income taxes: December, 31 2022 2023 In respect of: Net operating loss carry forward 40,779 43,113 Research and development expenses 3,254 4,337 Other 661 462 Less – valuation allowance (44,694 ) (47,912 ) Net deferred tax assets - - g. Reconciliation of theoretical tax expenses to actual expenses Actual tax expenses are in respect of the U.S. subsidiary. The primary reconciling items between the statutory tax rate of the Company and the effective rate are the full valuation allowance of deferred tax assets and nondeductible expenses in relation to the operations in Israel. h. Roll forward of valuation allowance Balance as of January 1, 2021 $ 43,053 Additions 2,255 Balance as of December 31, 2021 $ 45,308 Deductions (614 ) Balance as of December 31, 2022 $ 44,694 Additions 3,218 Balance as of December 31, 2023 $ 47,912 i. Provision for uncertain tax positions As of December 31, 2022, and 2023, the Company does not have a provision for uncertain tax positions. |
SUPPLEMENTARY FINANCIAL STATEME
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | NOTE 12 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION Other accounts payables and accruals December, 31 2022 2023 Accrued expenses $ 1,257 $ 2,054 Employees payables 883 603 APA payable (see note 1) - 700 Other 220 564 $ 2,360 $ 3,921 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 13 - RELATED PARTIES a. Related parties include the controlling shareholder and companies under his control, the Board of Directors and the executive officers of the Company. b. As to options and restricted shares granted to directors and executive officers, see Note 10b(2)a and Note 10d. c. As to the Subscription Agreement with the controlling shareholder, see Note 9a(2). |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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”). |
Use of estimates in the preparation of financial statements | a. 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 assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to the fair value of share-based compensation and the incremental borrowing rate for leases. |
Functional and presentation currency | b. Functional and presentation currency The U.S. dollar (“dollar”) is the currency of the primary economic environment in which the operations of the Company and its subsidiary are conducted. The Company’s financing has been provided in dollars, revenues are primarily in dollars and a significant part of expenses are incurred in dollars. The financial statements are presented in dollars, which is the Company’s functional and presentation currency. 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: (1) for transactions — exchange rates at transaction dates or average rates; and (2) 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 | c. 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. |
Bank deposits | d. Bank deposits Bank deposits with original maturity dates of more than three months but less than one year are included in short-term deposits. Such short-term deposits bear interest at an average annual rate of approximately 1.8%-5.9% in 2023. Interest accrued on bank deposits was recorded as interest receivable as part of "Prepaid expenses and other current assets" in the company’s balance sheet. Bank deposits with maturity of more than one year are considered long-term. As of December 31, 2023, the Company has a restricted deposit in the amount of $1,167 in order to secure certain transactions with its banks. This amount is presented under restricted long-term deposits and cash. |
Marketable securities | e. Marketable securities Marketable securities consist of debt securities. The Company elected the fair value option to measure and recognize its investments in debt securities in accordance with ASC 825, Financial Instruments as the Company manages its portfolio and evaluates the performance on a fair value basis. Changes in fair value, realized gains and losses on sales of marketable securities, are reflected in the statements of operation as finance expense (income), net. Marketable securities are classified under current assets in the consolidated balance sheet as they represent the investment of funds available for the Company’s current operations. |
Derivatives and hedging | f. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. The derivatives do not qualify for hedge accounting, therefore the changes in the fair value are included in financial expense (income), net. The currency hedged items are denominated in New Israeli Shekel (NIS). The counterparties to the derivatives are major banks in Israel. |
Accounts receivables | g. Accounts receivables Accounts receivable are initially recognized at the transaction price and subsequently measured at amortized cost less any allowance for expected credit losses. |
Property and equipment | h. Property and equipment 1) Property and equipment are stated at cost, net of accumulated depreciation and amortization. 2) The Company’s property and equipment are depreciated utilizing the straight-line method based on their estimated useful life. Annual rates of depreciation are as follows: % Laboratory equipment 10 – 33 (mainly 15 – 25) Office equipment and furniture 7 – 15 Computers and related equipment 33 Leasehold improvements are amortized utilizing the straight-line method over the shorter of the expected lease term or the estimated useful life of the improvements. |
Impairment of long-lived assets | i. Impairment of long-lived assets The Company tests long-lived 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 these assets' carrying amount, an impairment loss would be recognized. The assets would then be written down to their estimated fair values. During the three years ended December 31, 2023, the Company did not recognize an impairment loss on its long-lived assets. |
Share-based compensation | j. Share-based compensation The Company accounts for employees’ and non-employees' share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment compensation is recognized as an expense over the requisite service period. The Company elected to recognize compensation costs for awards to employee conditioned only on continued service that have a graded vesting schedule using the accelerated method based on the multiple-option award approach. The Company has elected to recognize forfeitures as they occur. |
Research and development expenses | k. Research and development expenses 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, lab expenses, consumable equipment and consulting fees. All costs associated with research and developments are expensed as incurred. Acquisitions of in-process research and development product candidates, which are not part of a business combination and that have no alternative use, are recognized as an expense as research and development expenses as incurred. Grants received from Israel Innovation Authority (hereafter — “IIA”), formerly known as the Office of the Chief Scientist of the Ministry of Economy and Industry, or the OCS are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company will comply with the conditions attached to the grant and there is 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 7a(1). Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company outsources its clinical trial activities utilizing external entities such as clinical research organizations, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical trials. Clinical trial costs are expensed as incurred. |
Revenue recognition | l. Revenue recognition The Company applies ASC 606, Revenue from Contracts with Customers. According to the standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. An entity only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer, after considering any price concession expected to be provided to the customer, as applicable. At contract inception, the entity assesses the goods or services promised within each contract, determines whether they are performance obligations and assesses whether each promised good or service is distinct. A good or service promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The entity then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements The Company entered into collaborative arrangements with partners that fall under the scope of Topic 808, Collaborative Arrangements (“ASC 808”). While these arrangements are in the scope of ASC 808, the Company may analogize to ASC 606 for some aspects of the arrangements. The Company analogizes to ASC 606 for certain activities within the collaborative arrangement for the delivery of a good or service (i.e., a unit of account) that is part of its ongoing major or central operations. Revenue recognized by analogizing to ASC 606 is recorded as “collaboration revenues”. The terms of the Company’s collaborative arrangements typically include one or more of the following: (i) royalties on net sales of licensed products; (ii) reimbursements or cost-sharing of R&D expenses. Each of these payments results in collaboration revenues or an offset against R&D expense. Royalties: For arrangements that include sales-based royalties and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes collaboration revenues at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Under certain collaborative arrangements, the Company has been reimbursed for a portion of its R&D expenses or participates in the cost-sharing of such R&D expenses. Such reimbursements and cost-sharing arrangements have been reflected as a reduction of R&D expense in the Company’s consolidated statements of operations, as the Company does not consider performing research and development services for reimbursement to be a part of its ongoing major or central operations. For arrangements that include a significant financing component, the company separates the significant financing component from the revenue and interest income is recorded when payments are received. See Note 8. Licensing agreements The Company has license agreements with two parties, Galderma and Searchlight. In its license agreements with Galderma, the Company has identified one performance obligation (see Note 9a): grant of the license and use of its IP . In its license agreements with Searchlight (see Note 9b), the Company has identified two performance obligations: grant of the license and use of its IP, as well as continuing support during the regulatory approval process. The grant of the license is recognized at a point in time, upon transfer of control over the license to the licensee, while the services are recognized over time as the services are performed. ASC 606 defines the ‘Transaction Price’ as the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to a customer. License agreements may contain variable consideration contingent upon the licensee achieving certain milestones, as well as sales-based royalties, in accordance with the relevant agreement. Variable payments, contingent on achieving additional milestones, are included in the transaction price based on most likely amount method. Amounts included in the transaction price are recognized only when it is probable that a significant reversal of cumulative revenues will not occur, usually upon achievement of the specific milestone, in accordance with the relevant agreement. Sales-based royalties are not included in the transaction price. Rather, they are recognized as the related sale occurs, due to the specific exception of ASC 606 for sales-based royalties in licensing of intellectual properties. |
Income taxes | m. Income taxes 1) Deferred taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and assets are classified as non-current. 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. |
Leases | n. Leases Right of use ("ROU") assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s lease terms may include periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option to extend the lease or not exercise the option to terminate the lease. The Company uses the implicit rate when readily determinable. As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for operating lease is recognized on a straight-line basis over the lease term. The Company elected to not separate lease and non-lease components for the leases. The Company elected the practical expedient of the short-term lease recognition exemption for all leases with a term shorter than 12 months. Additionally, the company applies the portfolio approach to account for operating lease ROU asset and liabilities for certain car leases and incremental borrowing rates. |
Concentration of credit risks | o. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and certain receivables. The Company deposits cash and cash equivalents with highly rated financial institutions. In addition, all marketable securities either 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. |
Earnings (loss) per share | p. Earnings (loss) per share Basic earnings (loss) per share is computed based on net earnings (loss) for the period divided by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per share is based upon the weighted average number of ordinary shares and of potential ordinary shares outstanding when dilutive. Potential ordinary shares include outstanding stock options and warrants, which are included under the treasury stock method when dilutive. The calculation of diluted earnings (loss) per share does not include 3,397,834 , 3,900,837 and 7,070,688 options and warrants for the years ended December 31, 2021, 2022 and 2023, respectively, because their effect would be anti-dilutive. |
Fair value measurement | q. 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 fair value of bank deposits approximates their carrying value, since they bear interest at rates close to the prevailing market rates. In addition, due to the short-term nature and/or low-risk nature of the Company's cash and cash equivalents, restricted cash equivalents, accounts receivable, accounts payable and other payables , their carrying amounts approximates their fair value. |
Recently issued accounting pronouncement | r. Recently issued accounting pronouncement In November 2023, the FASB issued ASU 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Annual Depreciation Rates | % Laboratory equipment 10 – 33 (mainly 15 – 25) Office equipment and furniture 7 – 15 Computers and related equipment 33 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | December 31, 2022 2023 Level 2 securities: U.S government and agency bonds 1,494 2,583 Other foreign government bonds - 1,946 Corporate bonds* 7,184 15,942 Total 8,678 20,471 |
Schedule of Changes in Fair Value of Marketable Securities | December 31, 2022 2023 Balance at beginning of the year $ 1,709 $ 8,678 Additions 10,006 23,164 Sale or maturity (2,918 ) (11,807 ) Changes in fair value during the year (119 ) 436 Balance at end of the year $ 8,678 $ 20,471 |
Schedule of Debt Securities | Market value December 31, 2023 Due within one year 16,127 Between 1-2 years 4,344 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31 2022 2023 Cost: Laboratory equipment $ 3,688 $ 3,514 Office equipment and furniture 265 288 Computers and software 428 451 Leasehold improvements 1,993 1,985 6,374 6,238 Less: Accumulated depreciation and amortization (5,714 ) (5,804 ) Property and equipment, net $ 660 $ 434 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessor Disclosure [Abstract] | |
Schedule of Lease-Related Assets and Liabilities Recorded on the Consolidated Balance Sheet | As of December 31, 2022 2023 Assets Operating Leases Operating lease right-of-use assets 876 1,721 Liabilities Current liabilities Current maturities of operating leases 718 447 Long-term liabilities Non-current operating leases 54 1,206 Weighted Average Remaining Lease Term Operating leases 0.45 3.73 Weighted Average Discount Rate Operating leases 6.11 % 13.3 % |
Schedule of Lease Costs | Year Ended December 31, 2022 2023 Operating lease cost: 797 745 |
Schedule of Supplemental Cash Flow Information Related to Leases | Year Ended December 31, 2022 2023 Cash paid for amounts included in the measurement of leases liabilities: Operating cash flows from operating leases 989 799 |
Schedule of Undiscounted Cash Flows Under Leases | Operating Leases For the year ending December 31, 2024 592 2025 539 2026 and thereafter 912 Total minimum lease payments 2,043 Less: amount of lease payments representing interest (390 ) Present value of future minimum lease payments 1,653 Less: Current maturities of operating leases 447 Long-term operating leases liabilities 1,206 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Assumptions Used to Estimate Fair Value | 2022 2023 Value of one ordinary share $4.98-$10.0 $3.59-$3.8 Dividend yield 0% 0% Expected volatility 57.8%-62.6% 55%-56% Risk-free interest rate 2.5%-4.2% 3.97%-4.1% Expected term 7 years 7 years |
Schedule of Effect of Share-based Compensation Statements of Operations | Year ended December 31 2021 2022 2023 Research and development expenses $ 33 $ 665 $ 701 General and administrative expenses $ 654 $ 862 $ 1,158 $ 687 $ 1,527 $ 1,859 |
Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | Year ended December 31 2022 2023 Number of options Weighted average exercise price Weighted average remaining contractual life Number of options Weighted average exercise price Weighted average remaining contractual life Options outstanding at the beginning of the year 1,131,029 $ 5.64 5.73 1,864,377 $ 7.09 7.11 Granted 747,488 $ 9.31 9.21 749,750 $ 5.52 9.15 Exercised (2,665 ) $ 5.69 - (168,151 ) $ 2.8 - Expired (450 ) $ 9.93 - (57,740 ) $ 8.63 - Forfeited (11,025 ) $ 7.58 - (67,114 ) $ 7.8 - Options outstanding at the end of the year 1,864,377 $ 7.09 7.11 2,321,122 $ 6.57 6.54 Options exercisable at the end of the year 1,179,132 $ 5.14 3.99 1,547,237 $ 6.17 3.72 |
Non Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | December 31 2023 Number of options Weighted average exercise price Weighted average remaining contractual life Options outstanding at the end of the year 198,575 $ 7.70 3.84 Options exercisable at the end of the year 198,575 $ 7.70 3.84 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Income Taxes | December, 31 2022 2023 In respect of: Net operating loss carry forward 40,779 43,113 Research and development expenses 3,254 4,337 Other 661 462 Less – valuation allowance (44,694 ) (47,912 ) Net deferred tax assets - - |
Schedule of Roll Forward of Valuation Allowance | Balance as of January 1, 2021 $ 43,053 Additions 2,255 Balance as of December 31, 2021 $ 45,308 Deductions (614 ) Balance as of December 31, 2022 $ 44,694 Additions 3,218 Balance as of December 31, 2023 $ 47,912 |
SUPPLEMENTARY FINANCIAL STATE_2
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accounts Payables and Accruals | December, 31 2022 2023 Accrued expenses $ 1,257 $ 2,054 Employees payables 883 603 APA payable (see note 1) - 700 Other 220 564 $ 2,360 $ 3,921 |
NATURE OF OPERATIONS (Narrative
NATURE OF OPERATIONS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Jan. 30, 2023 | May 31, 2022 | Apr. 25, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Nature Of Operations [Line Items] | |||||
Milestone payment | $ 3,500 | $ 3,500 | |||
Accumulated deficit | $ 220,303 | $ 193,065 | |||
PellePharm, Inc. [Member] | Asset purchase agreement [Member] | |||||
Nature Of Operations [Line Items] | |||||
Upfront payment paid | $ 4,000 | ||||
Outstanding principal amount | 700 | ||||
PellePharm, Inc. [Member] | Development and NDA acceptance milestones [Member] | Asset purchase agreement [Member] | |||||
Nature Of Operations [Line Items] | |||||
Milestone payment | 6,000 | ||||
PellePharm, Inc. [Member] | Commercial milestones [Member] | Asset purchase agreement [Member] | |||||
Nature Of Operations [Line Items] | |||||
Milestone payment | 64,000 | ||||
Increase in sales milestone amount due to sales exceed dollar 500 million | $ 89,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted deposit | $ 1,167 | ||
Anti-dilutive shares | 7,070,688 | 3,900,837 | 3,397,834 |
Minimum [Member] | |||
Short term deposits bear interest | 1.80% | ||
Maximum [Member] | |||
Short term deposits bear interest | 5.90% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Annual Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Laboratory equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 10% |
Laboratory equipment [Member] | Minimum [Member] | Mainly [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 15% |
Laboratory equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33% |
Laboratory equipment [Member] | Maximum [Member] | Mainly [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 25% |
Office equipment and furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 7% |
Office equipment and furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 15% |
Computers and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33% |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Cost of marketable securities | $ 20,180 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Company's Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Level 2 securities: | ||||
Marketable securities | $ 20,471 | $ 8,678 | $ 1,709 | |
U.S government and agency bonds [Member] | ||||
Level 2 securities: | ||||
Marketable securities | 2,583 | 1,494 | ||
Other foreign government bonds [Member] | ||||
Level 2 securities: | ||||
Marketable securities | 1,946 | 0 | ||
Corporate bonds [Member] | ||||
Level 2 securities: | ||||
Marketable securities | [1] | $ 15,942 | $ 7,184 | |
[1]Investments in Corporate bonds rated A or higher. |
MARKETABLE SECURITIES (Summary
MARKETABLE SECURITIES (Summary of Changes in Fair Value of Company's Marketable Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Balance at beginning of the year | $ 8,678 | $ 1,709 | |
Additions | 23,164 | 10,006 | $ 6,716 |
Sale or maturity | (11,807) | (2,918) | (26,784) |
Changes in fair value during the year | 436 | (119) | |
Balance at end of the year | $ 20,471 | $ 8,678 | $ 1,709 |
MARKETABLE SECURITIES (Schedu_2
MARKETABLE SECURITIES (Schedule of Company's debt marketable securities) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 16,127 |
Between 1-2 years | $ 4,344 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 342 | $ 562 | $ 880 |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,238 | $ 6,374 |
Accumulated depreciation and amortization | (5,804) | (5,714) |
Property and equipment, net | 434 | 660 |
Laboratory equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,514 | 3,688 |
Office equipment and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 288 | 265 |
Computers and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 451 | 428 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,985 | $ 1,993 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2023 | |
Lessor, Lease, Description [Line Items] | ||
Lease expiration date | Dec. 31, 2023 | |
Option to extend operating lease | In June 2023, the Company signed on extension to the office lease agreement, for the period starting January 1, 2024 for an additional period of two years, with an option to extend the agreement for another two years, meaning a maximum extension period of four years | |
Officer [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Restricted deposit | $ 116 | |
Vehicles [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease agreements period for vehicles | 3 years |
LEASES (Schedule of lease-relat
LEASES (Schedule of lease-related assets and liabilities recorded on the consolidated balance sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 1,721 | $ 876 |
Current liabilities | ||
Current maturities of operating leases | 447 | 718 |
Long-term liabilities | ||
Non-current operating leases | $ 1,206 | $ 54 |
Weighted Average Remaining Lease Term Operating leases | 3 years 8 months 23 days | 5 months 12 days |
Weighted Average Discount Rate Operating leases | 13.30% | 6.11% |
LEASES (Schedule of lease costs
LEASES (Schedule of lease costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessor Disclosure [Abstract] | ||
Operating lease cost | $ 745 | $ 797 |
LEASES (Schedule of supplementa
LEASES (Schedule of supplemental cash flow information related to leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of leases liabilities: | ||
Operating cash flows from operating leases | $ 799 | $ 989 |
LEASES (Schedule of undiscounte
LEASES (Schedule of undiscounted cash flows under leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
For the year ending December 31, | ||
2024 | $ 592 | |
2025 | 539 | |
2026 and thereafter | 912 | |
Total minimum lease payments | 2,043 | |
Less: amount of lease payments representing interest | (390) | |
Present value of future minimum lease payments | 1,653 | |
Less: Current maturities of operating leases | 447 | $ 718 |
Long-term operating leases liabilities | $ 1,206 | $ 54 |
EMPLOYEE SEVERANCE BENEFITS (Na
EMPLOYEE SEVERANCE BENEFITS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Amount of severance payment expenses | $ 445 | $ 461 | $ 445 |
Contribution in connection with expected severance liabilities | 404 | $ 405 | $ 389 |
Insurance Companies [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution in connection with expected severance liabilities | $ 401 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Expense recognized | $ 37 | $ 24 | $ 23 |
IIA [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of royalties payments shall not exceed aggregate grant received | 300% | ||
Grant received | $ 1,430 | ||
Accumulated royalty expense | $ 2,170 | ||
IIA [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Royalties payable on the sale of products developed | 3.50% | ||
IIA [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Royalties payable on the sale of products developed | 25% | ||
Yissum [Member] | |||
Loss Contingencies [Line Items] | |||
Royalties pay for net sales related to patents | 1.50% | ||
Yissum [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of proceeds received for sub licence | 1.50% | ||
Yissum [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of proceeds received for sub licence | 8% |
COLLABORATION AGREEMENTS (Narra
COLLABORATION AGREEMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2007 | Nov. 01, 2021 USD ($) Agreements Candidates Programs | |
Number of generic collaborative agreements to sell rights | Agreements | 10 | |
Number of generic programs retained for collaboration rights | Programs | 2 | |
Number of generic drug candidates | Candidates | 4 | |
Expected revenue receivable over twenty four months | $ | $ 21,500 | |
Minimum [Member] | ||
Royalties maturity | 2016 | |
Maximum [Member] | ||
Royalties maturity | 2024 |
LICENSE AGREEMENTS (Narrative)
LICENSE AGREEMENTS (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jun. 06, 2023 | Jun. 30, 2023 | May 31, 2022 | Apr. 25, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sales milestone payments | $ 3,500,000 | $ 3,500,000 | ||||||
Refunded upfront payment to Galderma | $ 4,000,000 | |||||||
Royalties revenues | $ 1,027 | $ 306 | ||||||
License Agreements With Galderma [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Maximum upfront payments and regulatory approval milestone payments per product | $ 7,500,000 | |||||||
Sales milestone payments | $ 9,000,000 | |||||||
Exclusive License Agreement With Searchlight Pharma Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Maximum upfront payments and regulatory approval milestone payments per product | $ 11,000,000 | $ 500,000 | ||||||
Royalties revenues | 380 | |||||||
Description and terms | a fifteen-year term that is renewable for subsequent five-year periods | |||||||
Contract liability | $ 120 |
SHARE CAPITAL (Narrative) (Deta
SHARE CAPITAL (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2023 $ / shares shares | Jan. 27, 2023 USD ($) shares | Jul. 31, 2021 USD ($) shares | Dec. 31, 2019 shares | Sep. 30, 2018 USD ($) shares | Feb. 28, 2018 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2014 ₪ / shares shares | Dec. 31, 2023 ₪ / shares | Dec. 31, 2023 USD ($) shares | Jan. 27, 2023 ₪ / shares shares | Jan. 27, 2023 $ / shares shares | Dec. 31, 2022 ₪ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |||||||||||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.1 | ₪ 0.1 | |||||||||||||
Odinary share issued under share incentive plan | 1,250,000 | ||||||||||||||
Procceds from Initial public offering, net of issuance costs | $ | $ 11,542 | $ 0 | $ 0 | ||||||||||||
Weighted average fair value of options granted | $ / shares | $ 2.01 | $ 4.49 | |||||||||||||
Purchase Agreement With Armistice Capital [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.1 | ||||||||||||||
Exercise price | $ / shares | $ 5.85 | ||||||||||||||
Ordinary shares issued, Price per share | $ / shares | $ 5 | ||||||||||||||
Shares issued | 2,560,000 | ||||||||||||||
Number of warrants issued to purchase Ordinary Shares | 2,560,000 | 2,560,000 | |||||||||||||
Subscription Agreement M Arkin Dermatology Ltd [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares issued | 2,000,000 | ||||||||||||||
Number of warrants issued to purchase Ordinary Shares | 2,000,000 | 2,000,000 | |||||||||||||
Proceeds from issuance of common stock | $ | $ 10,000,000 | ||||||||||||||
Jefferies Llc [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Aggregate Offering Price | $ | $ 25,000 | ||||||||||||||
Percentage Of Gross Proceeds From Sale Of Shares | 3% | ||||||||||||||
Issuance of share | 41,154 | ||||||||||||||
Proceeds from issuance of common stock | $ | $ 12,800 | $ 500 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option grants | 11,500 | 46,000 | |||||||||||||
Fair value of options granted | $ | $ 105 | $ 495 | |||||||||||||
Employees and directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option grants | 749,750 | ||||||||||||||
Employees [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Expected term | 10 years | ||||||||||||||
Shares available for future grant | 641,404 | ||||||||||||||
Option grants | 53,092 | ||||||||||||||
Option vesting period | 4 years | ||||||||||||||
Unrecognized compensation cost | $ | $ 1,497 | ||||||||||||||
Compensation costs weighted average period to be recognized | 3 years 2 months 8 days | ||||||||||||||
Employees [Member] | Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercise price | $ / shares | $ 4.63 | ||||||||||||||
Employees [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercise price | $ / shares | $ 5.6 | ||||||||||||||
Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option grants | 439,314 | ||||||||||||||
Option vesting period | 4 years | ||||||||||||||
Executive Officer [Member] | Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercise price | $ / shares | $ 4.63 | ||||||||||||||
Executive Officer [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercise price | $ / shares | $ 5.6 | ||||||||||||||
Board of Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.1 | ||||||||||||||
Odinary share issued under share incentive plan | 912,230 | 629,025 | |||||||||||||
Chief Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option grants | 257,344 | ||||||||||||||
Exercise price | $ / shares | $ 5.6 | ||||||||||||||
Option vesting period | 4 years |
SHARE CAPITAL (Schedule of Assu
SHARE CAPITAL (Schedule of Assumptions Used to Estimate Fair Value) (Details) - Employees [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Expected term | 7 years | 7 years |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of one ordinary share | $ 3.59 | $ 4.98 |
Expected volatility | 55% | 57.80% |
Risk-free interest rate | 3.97% | 2.50% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of one ordinary share | $ 3.8 | $ 10 |
Expected volatility | 56% | 62.60% |
Risk-free interest rate | 4.10% | 4.20% |
SHARE CAPITAL (Schedule of Stoc
SHARE CAPITAL (Schedule of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employees [Member] | |||
Number of options | |||
Options outstanding at beginning of year | 1,864,377 | 1,131,029 | |
Granted | 749,750 | 747,488 | |
Exercised | (168,151) | (2,665) | |
Expired | (57,740) | (450) | |
Forfeited | (67,114) | (11,025) | |
Options outstanding at end of year | 2,321,122 | 1,864,377 | 1,131,029 |
Options exercisable at the end of the year | 1,547,237 | 1,179,132 | |
Weighted-average exercise price | |||
Options outstanding at beginning of year | $ 7.09 | $ 5.64 | |
Granted | 5.52 | 9.31 | |
Exercised | 2.8 | 5.69 | |
Expired | 8.63 | 9.93 | |
Forfeited | 7.8 | 7.58 | |
Options Outstanding at end of year | 6.57 | 7.09 | $ 5.64 |
Options exercisable at the end of the year | $ 6.17 | $ 5.14 | |
Weighted-average remaining contractual life | |||
Options outstanding | 6 years 6 months 14 days | 7 years 1 month 9 days | 5 years 8 months 23 days |
Granted | 9 years 1 month 24 days | 9 years 2 months 15 days | |
Options exercisable at the end of the year | 3 years 8 months 19 days | 3 years 11 months 26 days | |
Non Employees [Member] | |||
Number of options | |||
Options outstanding at end of year | 198,575 | ||
Options exercisable at the end of the year | 198,575 | ||
Weighted-average exercise price | |||
Options Outstanding at end of year | $ 7.7 | ||
Options exercisable at the end of the year | $ 7.7 | ||
Weighted-average remaining contractual life | |||
Options outstanding | 3 years 10 months 2 days | ||
Options exercisable at the end of the year | 3 years 10 months 2 days |
SHARE CAPITAL (Schedule of Effe
SHARE CAPITAL (Schedule of Effect of Share-based Compensation Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 1,859 | $ 1,527 | $ 687 |
Research and development expenses [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 701 | 665 | 33 |
General and administrative expenses [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 1,158 | $ 862 | $ 654 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Corporate tax rates | 23% | 23% | 23% |
Tax benefit period | 12 years | ||
Net carry forward tax losses | $ 187.4 | ||
Subsidiaries [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Corporate tax rates | 21% |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
In respect of: | ||||
Net operating loss carry forward | $ 43,113 | $ 40,779 | ||
Research and development expenses | 4,337 | 3,254 | ||
Other | 462 | 661 | ||
Less - valuation allowance | $ (47,912) | (44,694) | $ (45,308) | $ (43,053) |
Net deferred tax assets |
TAXES ON INCOME (Roll Forward o
TAXES ON INCOME (Roll Forward of Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes On Income Roll Forward Of Valuation Allowance Details Abstract | |||
Balance | $ 44,694 | $ 45,308 | $ 43,053 |
Additions | 3,218 | (614) | 2,255 |
Balance | $ 47,912 | $ 44,694 | $ 45,308 |
SUPPLEMENTARY FINANCIAL STATE_3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Other Accounts Payables and Accruals) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 2,054 | $ 1,257 |
Employees payables | 603 | 883 |
APA payable | 700 | 0 |
Other | 564 | 220 |
Other accounts payables and accruals | $ 3,921 | $ 2,360 |