|
State of Israel
|
| |
2834
|
| |
Not Applicable
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer Identification No.)
|
|
|
Joshua G. Kiernan
Nathan Ajiashvili Latham & Watkins LLP 885 Third Avenue New York, NY 10022 Tel: +1 212 906 1200 Fax: +1 212 751 4864 |
| |
Gene Kleinhendler
Perry Wildes Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. One Azrieli Center Tel Aviv 670201, Israel Tel: +972 3 607 4444 Fax: +972 3 607 4470 |
| |
Eric W. Blanchard
Brian K. Rosenzweig Matthew T. Gehl Covington & Burling LLP The New York Times Building 620 Eighth Avenue New York, NY 10018-1405 Tel: +1 212 841 1000 Fax: +1 212 841 1010 |
| |
Chaim Friedland
Ari Fried Gornitzky & Co. Zion House 45 Rothschild Blvd. Tel Aviv 6578403, Israel Tel: +972 3 710 9191 Fax: +972 3 560 6555 |
|
| | |
Per
share |
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting discounts and commission (1)
|
| | | $ | | | | | | $ | | | |
Proceeds to us (before expenses)
|
| | | $ | | | | | | $ | | | |
| Jefferies | | |
BMO Capital Markets
|
|
| JMP Securities | | |
Raymond James
|
|
| | | | | 1 | | | |
| | | | | 12 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 60 | | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 64 | | | |
| | | | | 66 | | | |
| | | | | 67 | | | |
| | | | | 81 | | | |
| | | | | 117 | | | |
| | | | | 139 | | | |
| | | | | 141 | | | |
| | | | | 143 | | | |
| | | | | 151 | | | |
| | | | | 154 | | | |
| | | | | 166 | | | |
| | | | | 175 | | | |
| | | | | 176 | | | |
| | | | | 176 | | | |
| | | | | 176 | | | |
| | | | | 177 | | | |
| | | | | F-1 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||
| | |
2015
|
| |
2016
|
| |
2016
|
| |
2017
|
| ||||||||||||
| | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
| | |
(in thousands, except share and per share data )
|
| |||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | ||||||||||
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | | | | $ | 13,097 | | | | | $ | 21,389 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | | | | | 2,809 | | | | | | 4,781 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | | | | | 15,906 | | | | | | 26,170 | | |
Financial expenses, net
|
| | | | 13 | | | | | | 15 | | | | | | (1) | | | | | | (52) | | |
Loss for the year
|
| | | $ | 9,660 | | | | | $ | 20,771 | | | | | $ | 15,905 | | | | | $ | 26,118 | | |
Basic and diluted loss per ordinary share (1)
|
| | | $ | 2.76 | | | | | $ | 5.94 | | | | | $ | 4.55 | | | | | $ | 7.47 | | |
Weighted average number of ordinary shares outstanding – basic and diluted
|
| | | | 3,494,579 | | | | | | 3,494,579 | | | | | | 3,494,579 | | | | | | 3,494,580 | | |
Pro forma basic and diluted net loss per ordinary share (unaudited) (1)(2)
|
| | | | | | | | | $ | | | | | | | | | | | | $ | | | |
Pro forma weighted average number of ordinary shares outstanding – basic and diluted (unaudited) (2)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | |
September 30, 2017
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma (1)
|
| |
Pro Forma As
Adjusted (2) |
| |||||||||
| | |
(Unaudited, in thousands)
|
| |||||||||||||||
Balance Sheet Data: | | | | | |||||||||||||||
Cash and cash equivalents
|
| | | $ | 12,491 | | | | | $ | | | | | $ | | | ||
Total assets
|
| | | | 22,782 | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 71,767 | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (89,811) | | | | | | | | | | | | | | |
Total shareholders’ equity (capital deficiency)
|
| | | | (48,985) | | | | | | | | | | | | | | |
| | |
As of September 30, 2017
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||||||||
| | |
(Unaudited)
(in thousands, except share and per share data) |
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 12,491 | | | | | $ | | | | | $ | | | | |
Loans from the controlling shareholder
|
| | | $ | 65,338 | | | | | $ | | | | | | $ | | | |
Shareholders’ equity (capital deficiency): | | | | | |||||||||||||||
Ordinary shares of NIS 0.1 par value per share; 8,775,783 shares authorized and 3,494,580 shares issued and outstanding, actual; shares authorized and issued and outstanding, pro forma; shares authorized and issued and outstanding, pro forma as adjusted
|
| | | | 82 | | | | | | | | | | | | | | |
Additional paid-in capital
|
| | | | 40,744 | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (89,811) | | | | | | | | | | | | | | |
Total shareholders’ equity (capital deficiency)
|
| | | | (48,985) | | | | | | | | | | | | | | |
Total capitalization
|
| | | $ | 16,353 | | | | | $ | | | | | | $ | | | |
|
| | | |
Assumed initial public offering price per ordinary share
|
| | | | | | | | | $ | | | |
| | | |
Historical net tangible book value (deficit) per ordinary share as of September 30, 2017
|
| | | | (14.02) | | | | | | | | |
| | | |
Increase per ordinary share attributable to the conversion of promissory note as of September 30, 2017
|
| | | | | | | | |||||
| | | |
Pro forma net tangible book value per ordinary share
|
| | | | | | | | | | | | |
| | | |
Increase in pro forma net tangible book value per ordinary share attributable to the offering
|
| | | | | | | | | | | | |
| | | |
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | | | | |
| | | |
Dilution per ordinary share to new investors
|
| | | | | | | | | $ | | | |
| | | |
Percentage of dilution per ordinary share to new investors
|
| | | | | | | | | | % | | |
|
| | |
Shares purchased
|
| |
Total consideration
|
| |
Average
price per share |
| ||||||||||||||||||||||||
| | |
Number
|
| |
%
|
| |
Amount
|
| |
%
|
| | | |||||||||||||||||||
Existing shareholder
|
| | | | | | | | | | | | | | | $ | | | | | | | | | | | | $ | | | | | ||
New investors
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Total
|
| | | | | | | | | 100 | | | | | $ | | | | | | 100 | | | | | $ | | | | |||||
|
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||
| | |
2015
|
| |
2016
|
| |
2016
|
| |
2017
|
| ||||||||||||
| | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
| | |
(in thousands,
except share and per share data) |
| |||||||||||||||||||||
Statement of Operations Data: | | | | | | ||||||||||||||||||||
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | | | | $ | 13,097 | | | | | $ | 21,389 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | | | | | 2,809 | | | | | | 4,781 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | | | | | 15,906 | | | | | | 26,170 | | |
Financial expenses, net
|
| | | | 13 | | | | | | 15 | | | | | | (1) | | | | | | (52) | | |
Loss for the year
|
| | | $ | 9,660 | | | | | $ | 20,771 | | | | | $ | 15,905 | | | | | $ | 26,118 | | |
Basic and diluted loss per ordinary share (1)
|
| | | $ | 2.76 | | | | | $ | 5,94 | | | | | $ | 4.55 | | | | | $ | 7.47 | | |
Weighted average number of ordinary shares outstanding – basic and diluted
|
| | | | 3,494,579 | | | | | | 3,494,579 | | | | | | 3,494,579 | | | | | | 3,494,580 | | |
|
| | |
As of
|
| |||||||||
| | |
December 31,
2016 |
| |
September 30,
2017 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
| | |
(in thousands)
|
| |||||||||
Balance Sheet Data: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 7,001 | | | | | $ | 12,491 | | |
Total assets
|
| | | | 10,985 | | | | | | 22,782 | | |
Total liabilities
|
| | | | 42,322 | | | | | | 71,767 | | |
Accumulated deficit
|
| | | | (63,693) | | | | | | (89,811) | | |
Total capital deficiency
|
| | | | (31,337) | | | | | | (48,985) | | |
| | |
For the Year Ended
December 31, |
| |
For the Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2015
|
| |
2016
|
| |
2016
|
| |
2017
|
| ||||||||||||
| | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | | | | $ | 13,097 | | | | | $ | 21,389 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | | | | | 2,809 | | | | | | 4,781 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | | | | | 15,906 | | | | | | 26,170 | | |
Financial expenses (income), net
|
| | | | 13 | | | | | | 15 | | | | | | (1) | | | | | | (52) | | |
Loss for the period
|
| | | $ | 9,660 | | | | | $ | 20,771 | | | | | $ | 15,905 | | | | | $ | 26,118 | | |
|
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2016
|
| |
2017
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
| | |
(in thousands)
|
| |||||||||
Payroll and related expenses
|
| | | $ | 2,785 | | | | | $ | 4,194 | | |
Clinical trial expenses
|
| | | | 6,347 | | | | | | 12,106 | | |
Professional consulting and subcontracted work
|
| | | | 2,476 | | | | | | 3,797 | | |
Other
|
| | | | 1,489 | | | | | | 1,292 | | |
Total research and development expenses
|
| | | $ | 13,097 | | | | | $ | 21,389 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Payroll and related expenses
|
| | | $ | 2,647 | | | | | $ | 3,629 | | |
Clinical trial expenses
|
| | | | 517 | | | | | | 9,686 | | |
Professional consulting and subcontracted work
|
| | | | 2,001 | | | | | | 1,830 | | |
In-process research and development acquired
|
| | | | 431 | | | | | | — | | |
Other
|
| | | | 1,588 | | | | | | 1,878 | | |
Total research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
|
| | |
Year Ended
December 31, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
| | |
2015
|
| |
2016
|
| |
2016
|
| |
2017
|
| ||||||||||||
| | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash used in operating activities
|
| | | $ | (8,044) | | | | | $ | (18,495) | | | | | $ | (13,350) | | | | | $ | (17,065) | | |
Net cash used in investing activities
|
| | | | (210) | | | | | | (391) | | | | | | (334) | | | | | | (5,495) | | |
Net cash from financing activities
|
| | | | 13,572 | | | | | | 20,000 | | | | | | 10,000 | | | | | | 28,000 | | |
Increase (decrease) in cash and cash equivalents
|
| | | $ | 5,301 | | | | | $ | 1,106 | | | | | $ | (3,625) | | | | | $ | 5,490 | | |
|
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Operating lease obligations (1)
|
| | | $ | 1,706 | | | | | $ | 419 | | | | | $ | 1,287 | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | 1,706 | | | | | $ | 419 | | | | | $ | 1,287 | | | | | $ | — | | | | | $ | — | | |
|
| | |
For the Year Ended December 31,
|
| |
For the
Nine Months Ended September 30, |
| |||
| | |
2015
|
| |
2016
|
| |
2017
|
|
Value of one ordinary share
|
| |
$11.35
|
| |
$21.59
|
| |
$43.87
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
| |
0%
|
|
Expected volatility
|
| |
62.46% – 66.22%
|
| |
68.45% – 79.1%
|
| |
72.91% – 76.63%
|
|
Risk-free interest rate
|
| |
1.61% – 1.81%
|
| |
0.95% – 1.34%
|
| |
1.91% – 2.16%
|
|
Expected term
|
| |
5.5 – 7.5 years
|
| |
5 – 6.71 years
|
| |
5 – 10 years
|
|
|
Date of grant
|
| |
Number of
shares subject to awards granted |
| |
Class of
shares subject to the awards granted |
| |
Type of
equity instrument awarded |
| |
Exercise
price per share |
| |
Estimated
fair value per ordinary share at grant date |
| |||||||||||||||
March 29, 2015
|
| | | | 151,299 | | | | | | Ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 11.35 | | |
April 12, 2015
|
| | | | 22,141 | | | | | | Ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 11.35 | | |
August 2, 2016
|
| | | | 50,422 | | | | | | Ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 21.59 | | |
February 12, 2017
|
| | | | 29,906 | | | | | | Ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 36.84 | | |
July 13, 2017
|
| | | | 15,040 | | | | | | Ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 43.87 | | |
July 13, 2017
|
| | | | 211,470 | | | | | | Ordinary | | | | | | options | | | | | $ | 10.02 | | | | | $ | 43.87 | | |
August 22, 2017
|
| | | | 70,500 | | | | | | Ordinary | | | | | | options | | | | | $ | 10.02 | | | | | $ | 43.87 | | |
VERED Phase II Efficacy Results at Week 12 (ITT)
|
| |
Vehicle
(N=30) |
| |
VERED 1%
(N=32) |
| |
VERED 5%
(N=30) |
|
Dichotomized IGA – Primary Success | | | | | ||||||
Success
|
| |
6 (20.0%)
|
| |
12 (37.5%)
|
| |
16 (53.3%)
|
|
Failure
|
| |
24 (80.0%)
|
| |
20 (62.5%)
|
| |
14 (46.7%)
|
|
p-value relative to vehicle
|
| | | | |
0.0836
|
| |
0.0013
|
|
Inflammatory Lesion Count – Change from Baseline | | | | | ||||||
Mean
|
| |
-7.4
|
| |
-21.6
|
| |
-14.1
|
|
Median
|
| |
-10.0
|
| |
-12.5
|
| |
-15.0
|
|
p-value relative to vehicle
|
| | | | |
0.0276
|
| |
0.0037
|
|
LOCF (last observation carried forward) used to impute mission observations
|
| | | | |
0.0836
|
| |
0.0013
|
|
| | | |
Area of Activity
|
| |
As of
September 30, 2017 |
| |||
| | | |
Administrative
|
| | | | 7 | | |
| | | |
Research, development and quality assurance
|
| | | | 44 | | |
| | | |
Total
|
| | | | 51 | | |
|
Name
|
| |
Age
|
| |
Position
|
|
Moshe Arkin | | |
65
|
| | Chairman of the Board of Directors | |
Alon Seri-Levy (1) | | |
56
|
| | Chief Executive Officer and Director Nominee | |
Gilad Mamlok | | |
49
|
| | Chief Financial Officer | |
Ofer Toledano | | |
52
|
| | Vice President Research and Development | |
Ofra Levy-Hacham | | |
51
|
| | Vice President Quality and Regulatory Affairs | |
Karine Neimann | | |
46
|
| | Vice President Projects and Planning, Chief Chemist | |
Itzik Yosef | | |
41
|
| | Vice President Operations | |
Dov Zamir | | |
64
|
| | Vice President Special Projects | |
Itai Arkin (1) | | |
29
|
| | Director Nominee | |
Shmuel Ben Zvi (1) | | |
57
|
| | Director Nominee | |
Hani Lerman (1) | | |
44
|
| | Director Nominee | |
Yael Baratz (1) | | |
61
|
| | Director Nominee | |
Ran Gottfried (1)(2) | | |
73
|
| | External Director Nominee | |
Jerrold S. Gattegno (1)(2) | | |
65
|
| | External Director Nominee | |
| | |
Shares Beneficially
Owned Prior to the Offering |
| |
Shares Beneficially
Owned After the Offering |
| ||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||
5% or greater shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
M.Arkin Dermatology Ltd. (1)
|
| | | | | | | | | | 100% | | | | | | | | | | | | % | | |
Directors, director nominees and executive officers | | | | | | ||||||||||||||||||||
Moshe Arkin (1)
|
| | | | | | | | | | 100% | | | | | | | | | | | | | | |
Alon Seri-Levy (2)
|
| | | | 56,022 | | | | | | % | | | | | | 56,022 | | | | | | | | |
Gilad Mamlok
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Ofer Toledano
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Ofra Levy-Hacham
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Karine Neimann
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Itzik Yosef
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Dov Zamir
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Itai Arkin
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ran Gottfried
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerrold S. Gattegno
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shmuel Ben Zvi
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Hani Lerman
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Yael Baratz
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors, director nominees and executive officers as a group (15 persons) (1)(3)
|
| | | | | | | | | | 100% | | | | | | | | | | | | % | | |
|
| | | |
Tax Year
|
| |
Development Region “A”
|
| |
Other Areas within Israel
|
| ||||||
| | | |
2011 – 2012
|
| | | | 10% | | | | | | 15% | | |
| | | |
2013
|
| | | | 7% | | | | | | 12.5% | | |
| | | | 2014 – 2016 | | | | | 9% | | | | | | 16% | | |
| | | |
2017 and thereafter
|
| | | | 7.5% | | | | | | 16% | | |
| | | |
Underwriter
|
| |
Number of
Ordinary Shares |
| |||
| | | |
Jefferies LLC
|
| | | | | | |
| | | |
BMO Capital Markets Corp.
|
| | | | | | |
| | | |
JMP Securities LLC
|
| | | | | | |
| | | |
Raymond James & Associates, Inc.
|
| | | | | | |
| | | |
Total
|
| | | | | | |
|
| | | | | | |
Per Ordinary Share
|
| |
Total
|
| ||||||||||||||||||
| | | | | | |
Without
Option to Purchase Additional Ordinary Shares |
| |
With
Option to Purchase Additional Ordinary Shares |
| |
Without
Option to Purchase Additional Ordinary Shares |
| |
With
Option to Purchase Additional Ordinary Shares |
| ||||||||||||
| | | |
Initial public offering price
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
| | | |
Underwriting discounts and commissions paid by us
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
| | | |
Proceeds to us, before expenses
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Itemized expense
|
| |
Amount
|
| |||
SEC registration fee
|
| | | $ | 9,996 | | |
FINRA filing fee
|
| | | | 13,438 | | |
Nasdaq Global Market listing fee
|
| | | | 25,000 | | |
Printing and engraving expenses
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Transfer agent and registrar fees
|
| | | | * | | |
Accounting fees and expenses
|
| | | | * | | |
Miscellaneous
|
| | | | * | | |
Total
|
| | | $ | * | | |
|
| | |
Page
|
|
| | | ||
AUDITED FINANCIAL STATEMENTS: | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
UNAUDITED CONDENSED FINANCIAL STATEMENTS: | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| Tel-Aviv, Israel | | | /s/ Kesselman & Kesselman | |
| March 30, 2017 | | | Certified Public Accountants (Isr.) A member firm of PricewaterhouseCoopers International Limited |
|
| | |
December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
Assets
|
| | | ||||||||||
CURRENT ASSETS: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 5,895 | | | | | $ | 7,001 | | |
Prepaid expenses and other current assets
|
| | | | 244 | | | | | | 472 | | |
Advance payment
|
| | | | — | | | | | | 823 | | |
TOTAL CURRENT ASSETS | | | |
|
6,139
|
| | | |
|
8,296
|
| |
NON-CURRENT ASSETS: | | | | ||||||||||
Advance payment
|
| | | | 625 | | | | | | — | | |
Long term receivables
|
| | | | — | | | | | | 1,190 | | |
Restricted long term deposits
|
| | | | 92 | | | | | | 107 | | |
Property and equipment, net
|
| | | | 785 | | | | | | 798 | | |
Funds in respect of employee rights upon retirement
|
| | | | 603 | | | | | | 594 | | |
TOTAL NON-CURRENT ASSETS | | | |
|
2,105
|
| | | |
|
2,689
|
| |
TOTAL ASSETS
|
| | | $ | 8,244 | | | | | $ | 10,985 | | |
Liabilities net of capital deficiency
|
| | | ||||||||||
CURRENT LIABILITIES: | | | | ||||||||||
Accounts payable
|
| | | $ | 311 | | | | | $ | 667 | | |
Accrued expenses and other
|
| | | | 1,487 | | | | | | 3,623 | | |
Loans from the controlling shareholder
|
| | | | 17,338 | | | | | | 37,338 | | |
TOTAL CURRENT LIABILITIES | | | |
|
19,136
|
| | | |
|
41,628
|
| |
LONG-TERM LIABILITIES – | | | | ||||||||||
Liability for employee rights upon retirement
|
| | | | 626 | | | | | | 694 | | |
TOTAL LONG-TERM LIABILITIES
|
| | | | 626 | | | | | | 694 | | |
COMMITMENTS
|
| | | | | | | | | | | | |
TOTAL LIABILITIES
|
| | | $ | 19,762 | | | | | $ | 42,322 | | |
CAPITAL DEFICIENCY: | | | | ||||||||||
Ordinary shares, NIS 0.1 par value – authorized: 8,775,783 as of December 31, 2015 and 2016; issued and outstanding: 3,494,579 as of December 31, 2015 and 2016
|
| | | | 82 | | | | | | 82 | | |
Additional paid-in capital
|
| | | | 31,322 | | | | | | 32,274 | | |
Accumulated deficit
|
| | | | (42,922) | | | | | | (63,693) | | |
TOTAL CAPITAL DEFICIENCY
|
| | | | (11,518) | | | | | | (31,337) | | |
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
| | | $ | 8,244 | | | | | $ | 10,985 | | |
|
| | |
Year ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
GENERAL AND ADMINISTRATIVE EXPENSES
|
| | | | 2,463 | | | | | | 3,733 | | |
TOTAL OPERATING LOSS
|
| | | | 9,647 | | | | | | 20,756 | | |
FINANCIAL EXPENSES, NET
|
| | | | 13 | | | | | | 15 | | |
LOSS FOR THE YEAR
|
| | | $ | 9,660 | | | | | $ | 20,771 | | |
BASIC AND DILUTED LOSS PER ORDINARY SHARE
|
| | | $ | 2.76 | | | | | $ | 5.94 | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
|
| | |
|
3,494,579
|
| | | |
|
3,494,579
|
| |
|
| | |
Ordinary shares
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Number
of shares |
| |
Amounts
|
| |
Amounts
|
| |||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2015
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | $ | 30,193 | | | | | $ | (33,262) | | | | | $ | (2,987) | | |
CHANGES DURING 2015: | | | | | | | |||||||||||||||||||||||||
Loss for the year
|
| | | | | | | | | | | | | | | | | | | | | | (9,660) | | | | | | (9,660) | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 1,129 | | | | | | | | | | | | 1,129 | | |
BALANCE AS OF DECEMBER 31, 2015
|
| | | | 3,494,579 | | | | | | 82 | | | | | | 31,322 | | | | | | (42,922) | | | | | | (11,518) | | |
CHANGES DURING 2016: | | | | | | | |||||||||||||||||||||||||
Loss for the year
|
| | | | | | | | | | | | | | | | | | | | | | (20,771) | | | | | | (20,771) | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 952 | | | | | | | | | | | | 952 | | |
BALANCE AS OF DECEMBER 31, 2016
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | | 32,274 | | | | | $ | (63,693) | | | | | $ | (31,337) | | |
|
| | |
Year ended December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | ||||||||||
Loss
|
| | | $ | (9,660) | | | | | $ | (20,771) | | |
Adjustments required to reconcile loss to net cash used in operating activities:
|
| | | ||||||||||
Depreciation
|
| | | | 300 | | | | | | 359 | | |
Changes in accrued liability for employee rights upon retirement
|
| | | | (86) | | | | | | 68 | | |
Share-based compensation
|
| | | | 1,129 | | | | | | 952 | | |
In-process research and development acquired
|
| | | | 431 | | | | | | — | | |
Finance expenses, net
|
| | | | 17 | | | | | | 8 | | |
Changes in operating asset and liabilities:
|
| | | ||||||||||
Prepaid expenses and other current assets
|
| | | | 1 | | | | | | (228) | | |
Accounts payable, accrued expenses and other
|
| | | | 449 | | | | | | 2,505 | | |
Advance payment
|
| | | | (625) | | | | | | (198) | | |
Long term receivables
|
| | | | — | | | | | | (1,190) | | |
Net cash used in operating activities
|
| | | | (8,044) | | | | | | (18,495) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | ||||||||||
Purchase of property and equipment
|
| | | | (291) | | | | | | (385) | | |
Long term deposits
|
| | | | (8) | | | | | | (15) | | |
Amounts funded in respect of employee rights upon retirement, net
|
| | | | 89 | | | | | | 9 | | |
Net cash used in investing activities
|
| | | | (210) | | | | | | (391) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | ||||||||||
Loans received from the controlling shareholder
|
| | | | 13,572 | | | | | | 20,000 | | |
Net cash provided by financing activities
|
| | | | 13,572 | | | | | | 20,000 | | |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
| | |
|
(17)
|
| | | |
|
(8)
|
| |
INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 5,301 | | | | | | 1,106 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR
|
| | |
|
594
|
| | | |
|
5,895
|
| |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
|
| | | $ | 5,895 | | | | | $ | 7,001 | | |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS:
|
| | | ||||||||||
Purchase of property and equipment
|
| | | $ | 23 | | | | | $ | 10 | | |
Acquisition of in-process research and development product candidate
|
| | | $ | 431 | | | | | $ | — | | |
|
| | | | | | |
%
|
|
| | | | Laboratory equipment | | |
10 – 33 (mainly 15 – 25)
|
|
| | | | Office equipment and furniture | | |
7 – 15
|
|
| | | | Computers and related equipment | | |
33
|
|
| | |
December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
Cost: | | | | ||||||||||
Laboratory equipment
|
| | | $ | 1,065 | | | | | $ | 1,263 | | |
Office equipment and furniture
|
| | | | 182 | | | | | | 234 | | |
Computers and software
|
| | | | 222 | | | | | | 282 | | |
Leasehold improvements
|
| | | | 466 | | | | | | 528 | | |
| | | | | 1,935 | | | | | | 2,307 | | |
Less: | | | | ||||||||||
Accumulated depreciation and amortization
|
| | | | (1,150) | | | | | | (1,509) | | |
Property and equipment, net
|
| | | $ | 785 | | | | | $ | 798 | | |
|
| | | |
Year
|
| |
Amount
|
| |||
| | | |
2017
|
| | | $ | 419 | | |
| | | |
2018
|
| | | | 429 | | |
| | | |
2019
|
| | | | 429 | | |
| | | |
2020
|
| | | | 429 | | |
| | | |
Total
|
| | | $ | 1,706 | | |
| | | | | | |
2015
|
| |
2016
|
|
| | | |
Value of one ordinary share
|
| |
$11.35
|
| |
$21.59
|
|
| | | |
Dividend yield
|
| |
0%
|
| |
0%
|
|
| | | |
Expected volatility
|
| |
62.46% – 66.22%
|
| |
68.46% – 79.1%
|
|
| | | |
Risk-free interest rate
|
| |
1.61% – 1.81%
|
| |
0.95% – 1.34%
|
|
| | | |
Expected term
|
| |
5.5 – 7.5 years
|
| |
5 – 6.71 years
|
|
|
| | | | | | |
Year ended December 31
|
| |||||||||||||||||||||||||||||||||
| | | | | | |
2015
|
| |
2016
|
| ||||||||||||||||||||||||||||||
| | | | | | |
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
|
| | | | — | | | | | | — | | | | | | — | | | | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | |
| | | |
Granted
|
| | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 50,422 | | | | | $ | 2.86 | | | | | | 9.59 | | |
| | | |
Options outstanding at the end of the year
|
| | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 223,862 | | | | | $ | 2.86 | | | | | | 8.55 | | |
| | | |
Options exercisable at the end of the year
|
| | | | 54,200 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 106,854 | | | | | $ | 2.86 | | | | | | 9.59 | | |
|
| | | | | | |
Year ended
December 31 |
| |||||||||
| | | | | | |
2015
|
| |
2016
|
| ||||||
| | | |
Research and development expenses
|
| | | $ | 468 | | | | | $ | 541 | | |
| | | |
General and administrative expenses
|
| | | | 661 | | | | | | 411 | | |
| | | | | | | | $ | 1,129 | | | | | $ | 952 | | |
|
| | |
As of December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
In respect of: | | | | ||||||||||
Net operating loss carry forward
|
| | | $ | 9,468 | | | | | $ | 10,912 | | |
Research and development expenses
|
| | | | 1,377 | | | | | | 2,935 | | |
Other
|
| | | | 43 | | | | | | 152 | | |
Less – valuation allowance
|
| | | | (10,888) | | | | | | (13,999) | | |
Net deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
2016 |
| |
September 30,
2017 |
| ||||||
Assets
|
| | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 7,001 | | | | | $ | 12,491 | | |
Bank deposit
|
| | | | — | | | | | | 4,000 | | |
Prepaid expenses and other current assets
|
| | | | 472 | | | | | | 372 | | |
Advance payment
|
| | | | 823 | | | | | | 823 | | |
TOTAL CURRENT ASSETS
|
| | | | 8,296 | | | | | | 17,686 | | |
NON-CURRENT ASSETS: | | | | | | | | | | | | | |
Long-term receivables
|
| | | | 1,190 | | | | | | 2,089 | | |
Restricted long-term deposits
|
| | | | 107 | | | | | | 107 | | |
Property and equipment, net
|
| | | | 798 | | | | | | 2,252 | | |
Funds in respect of employee rights upon retirement
|
| | | | 594 | | | | | | 648 | | |
TOTAL NON-CURRENT ASSETS
|
| | | | 2,689 | | | | | | 5,096 | | |
TOTAL ASSETS
|
| | | $ | 10,985 | | | | | $ | 22,782 | | |
Liabilities net of capital deficiency
|
| | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | | 667 | | | | | | 1,393 | | |
Accrued expenses and other
|
| | | | 3,623 | | | | | | 4,238 | | |
Loans from the controlling shareholder
|
| | | | 37,338 | | | | | | 65,338 | | |
TOTAL CURRENT LIABILITIES
|
| | | $ | 41,628 | | | | | $ | 70,969 | | |
LONG-TERM LIABILITIES – | | | | | | | | | | | | | |
Liability for employee rights upon retirement
|
| | | | 694 | | | | | | 798 | | |
TOTAL LONG-TERM LIABILITIES
|
| | | | 694 | | | | | | 798 | | |
COMMITMENTS | | | | | | | | | | | | | |
TOTAL LIABILITIES
|
| | | $ | 42,322 | | | | | $ | 71,767 | | |
CAPITAL DEFICIENCY: | | | | | | | | | | | | | |
Ordinary Shares, NIS 0.1 par value – authorized: 8,775,783 as of December 31, 2016 and September 30, 2017; issued and outstanding: 3,494,579 and 3,494,580 as of December 31, 2016 and September 30, 2017, respectiveley
|
| | | | 82 | | | | | | 82 | | |
Additional paid-in capital
|
| | | | 32,274 | | | | | | 40,744 | | |
Accumulated deficit
|
| | | | (63,693) | | | | | | (89,811) | | |
TOTAL CAPITAL DEFICIENCY
|
| | | | (31,337) | | | | | | (48,985) | | |
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
| | | $ | 10,985 | | | | | $ | 22,782 | | |
|
| | |
Nine months ended
September 30, |
| |||||||||
| | |
2016
|
| |
2017
|
| ||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
| | | $ | 13,097 | | | | | $ | 21,389 | | |
GENERAL AND ADMINISTRATIVE EXPENSES
|
| | | | 2,809 | | | | | | 4,781 | | |
TOTAL OPERATING LOSS
|
| | | $ | 15,906 | | | | | $ | 26,170 | | |
FINANCIAL (INCOME) EXPENSES, net
|
| | | | (1) | | | | | | (52) | | |
LOSS FOR THE PERIOD
|
| | | $ | 15,905 | | | | | $ | 26,118 | | |
BASIC AND DILUTED LOSS PER ORDINARY SHARE
|
| | | $ | 4.55 | | | | | $ | 7.47 | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
|
| | |
|
3,494,579
|
| | | |
|
3,494,580
|
| |
|
| | |
Ordinary shares
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Number of
shares |
| |
Amounts
|
| |
Amounts
|
| |||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2016
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | $ | 31,322 | | | | | $ | (42,922) | | | | | $ | (11,518) | | |
CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2016:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss for the period
|
| | | | | | | | | | | | | | | | | | | | | | (15,905) | | | | | | (15,905) | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 786 | | | | | | | | | | | | 786 | | |
BALANCE AT SEPTEMBER 30, 2016
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | $ | 32,108 | | | | | $ | (58,827) | | | | | $ | (26,637) | | |
BALANCE AS OF JANUARY 1, 2017
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | $ | 32,274 | | | | | $ | (63,693) | | | | | $ | (31,337) | | |
CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2017:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss for the period
|
| | | | | | | | | | | | | | | | | | | | | | (26,118) | | | | | | (26,118) | | |
Issuance of shares due to in-process research and development acquired
|
| | | | 1 | | | | | | | | | | | | 6,232 | | | | | | | | | | | | 6,232 | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 2,238 | | | | | | | | | | | | 2,238 | | |
BALANCE AT SEPTEMBER 30, 2017
|
| | | | 3,494,580 | | | | | $ | 82 | | | | | $ | 40,744 | | | | | $ | (89,811) | | | | | $ | (48,985) | | |
|
| | |
Nine months ended
September 30, |
| |||||||||
| | |
2016
|
| |
2017
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Loss
|
| | | $ | (15,905) | | | | | $ | (26,118) | | |
Adjustments required to reconcile loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 266 | | | | | | 307 | | |
Changes in accrued liability for employee rights upon retirement, net
|
| | | | 80 | | | | | | 51 | | |
Share-based compensation
|
| | | | 786 | | | | | | 2,238 | | |
In-process research and development acquired
|
| | | | - | | | | | | 6,232 | | |
Financial income, net
|
| | | | (59) | | | | | | (50) | | |
Changes in operating asset and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | 104 | | | | | | 100 | | |
Accounts payable, accrued expenses and other
|
| | | | 2,431 | | | | | | 1,074 | | |
Advance payment
|
| | | | (119) | | | | | | - | | |
Long-term receivables
|
| | | | (934) | | | | | | (899) | | |
Net cash used in operating activities
|
| | | | (13,350) | | | | | | (17,065) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (305) | | | | | | (1,495) | | |
Long-term deposits
|
| | | | (29) | | | | | | (4,000) | | |
Net cash used in investing activities
|
| | | | (334) | | | | | | (5,495) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Loans received from the controlling shareholder
|
| | | | 10,000 | | | | | | 28,000 | | |
Net cash provided by financing activities
|
| | | | 10,000 | | | | | | 28,000 | | |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
| | |
|
59
|
| | | |
|
50
|
| |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
| | | | (3,625) | | | | | | 5,490 | | |
CASH AND CASH EQUIVALENTS AT BEGINNINGOF THE PERIOD
|
| | |
|
5,895
|
| | | |
|
7,001
|
| |
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
|
| | | $ | 2,270 | | | | | $ | 12,491 | | |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS -
|
| | | ||||||||||
Purchase of property and equipment
|
| | | $ | 38 | | | | | $ | 276 | | |
Acquisition of in-process research and development product candidate
|
| | | | | | | | | $ | 6,232 | | |
|
| | | | | | |
February
2017 |
| |
July-August
2017 |
|
| | | |
Value of one ordinary share
|
| |
$36.84
|
| |
$43.87
|
|
| | | |
Dividend yield
|
| |
0%
|
| |
0%
|
|
| | | |
Expected volatility
|
| |
73.74% – 78.71%
|
| |
72.91 – 76.63%
|
|
| | | |
Risk-free interest rate
|
| |
1.57% – 2.23%
|
| |
1.91% – 2.16%
|
|
| | | |
Expected term
|
| |
5.47 – 6.97 years
|
| |
5 – 7years
|
|
|
| | | | | | |
2017
|
|
| | | |
Value of one ordinary share
|
| |
$43.87
|
|
| | | |
Dividend yield
|
| |
0%
|
|
| | | |
Expected volatility
|
| |
72.91 – 76.63%
|
|
| | | |
Risk-free interest rate
|
| |
1.91% – 2.16%
|
|
| | | |
Expected term
|
| |
10 years
|
|
|
Exhibit No.
|
| |
Description
|
|
99.1** | | | Consent of director nominee. | |
99.2** | | | Consent of director nominee. | |
99.3** | | | Consent of director nominee. | |
99.4** | | | Consent of director nominee. | |
99.5** | | | Consent of director nominee. | |
99.6** | | | Consent of director nominee. | |
| | | | Sol-Gel Technologies Ltd. | | |||
| | | | By: | | | /s/ Alon Seri-Levy | |
| | | | | | | Name: Alon Seri-Levy | |
| | | | | | | Title: Chief Executive Officer | |
Signatures
|
| |
Title
|
| |
Date
|
|
/s/ Alon Seri-Levy
Alon Seri-Levy
|
| | Chief Executive Officer | | | December 29, 2017 | |
*
Gilad Mamlok
|
| | Chief Financial Officer | | | December 29, 2017 | |
*
Moshe Arkin
|
| | Director | | | December 29, 2017 | |
*By
/s/ Alon Seri-Levy
Alon Seri-Levy
Attorney-in-fact |
| | | | | | |
| | | | By: | | |
/s/ Colleen A. DeVries
|
|
| | | | | | | Name: Colleen A. DeVries | |
| | | | | | | Title: Senior Vice-President on behalf of Cogency Global Inc. |
|
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Amendment No.3 to the Registration Statement on Form F-1 of Sol-Gel Technologies Ltd. of our report dated March 30, 2017 relating to the financial statements, which appears in such Registration Statement. We also consent to the reference to us under the heading “Experts" in such Registration Statement.
Tel-Aviv, Israel December 29, 2017 |
/s/ Kesselman & Kesselman Certified Public Accountants (Isr.) A member firm of PricewaterhouseCoopers International Limited |
Kesselman & Kesselman, Trade Tower, 25 Hamered Street, Tel-Aviv 6812508, Israel,
P.O Box 50005 Tel-Aviv 6150001 Telephone: +972 -3- 7954555, Fax:+972 -3- 7954556, www.pwc.com/il