| | |
Per
share |
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | 12.00 | | | | | $ | 75,000,000 | | |
Underwriting discounts and commission (1)
|
| | | $ | 0.84 | | | | | $ | 5,250,000 | | |
Proceeds to us (before expenses)
|
| | | $ | 11.16 | | | | | $ | 69,750,000 | | |
| Jefferies | | |
BMO Capital Markets
|
|
| JMP Securities | | |
Raymond James
|
|
| | | | | 1 | | | |
| | | | | 12 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 60 | | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 63 | | | |
| | | | | 65 | | | |
| | | | | 67 | | | |
| | | | | 82 | | | |
| | | | | 119 | | | |
| | | | | 141 | | | |
| | | | | 143 | | | |
| | | | | 145 | | | |
| | | | | 153 | | | |
| | | | | 156 | | | |
| | | | | 168 | | | |
| | | | | 177 | | | |
| | | | | 178 | | | |
| | | | | 178 | | | |
| | | | | 178 | | | |
| | | | | 179 | | | |
| | | | | 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)
|
| | | $ | 1.53 | | | | | $ | 3.30 | | | | | $ | 2.53 | | | | | $ | 4.15 | | |
Weighted average number of ordinary shares outstanding – basic and diluted
|
| | | | 6,290,242 | | | | | | 6,290,242 | | | | | | 6,290,242 | | | | | | 6,290,244 | | |
Pro forma basic and diluted net loss per ordinary share (unaudited) (1)(2)
|
| | | | | | | | | $ | 1.77 | | | | | | | | | | | $ | 2.23 | | |
Pro forma weighted average number of ordinary shares outstanding – basic and diluted (unaudited) (2)
|
| | | | | | | | | | 11,735,067 | | | | | | | | | | | | 11,735,069 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma (1)
|
| |
Pro Forma As
Adjusted (2) |
| |||||||||
| | |
(Unaudited, in thousands)
|
| |||||||||||||||
Balance Sheet Data: | | | | | |||||||||||||||
Cash and cash equivalents
|
| | | $ | 12,491 | | | | | $ | 12,491 | | | | | $ | 80,341 | | |
Total assets
|
| | | | 22,782 | | | | | | 22,782 | | | | | | 90,632 | | |
Total liabilities
|
| | | | 71,767 | | | | | | 6,429 | | | | | | 6,429 | | |
Accumulated deficit
|
| | | | (89,811) | | | | | | (89,811) | | | | | | (89,811) | | |
Total shareholders’ equity (capital deficiency)
|
| | | | (48,985) | | | | | | 16,353 | | | | | | 84,203 | | |
| | |
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 | | | | | $ | 12,491 | | | | | $ | 80,341 | | |
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 6,290,244 shares issued and outstanding, actual; 50,000,000 shares authorized and 11,735,069 issued and outstanding, pro forma; 50,000,000 shares authorized and 17,985,069 issued and outstanding, pro forma as adjusted
|
| | | | 82 | | | | | | 275 | | | | | | 541 | | |
Additional paid-in capital
|
| | | | 40,744 | | | | | | 105,889 | | | | | | 173,473 | | |
Accumulated deficit
|
| | | | (89,811) | | | | | | (89,811) | | | | | | (89,811) | | |
Total shareholders’ equity (capital deficiency)
|
| | | | (48,985) | | | | | | 16,353 | | | | | | 84,203 | | |
Total capitalization
|
| | | $ | 16,353 | | | | | $ | 16,353 | | | | | $ | 84,203 | | |
|
| | | |
Initial public offering price per ordinary share
|
| | | | | | | | | $ | 12.00 | | |
| | | |
Historical net tangible book value (deficit) per ordinary share as of September 30, 2017
|
| | | | (7.79) | | | | | | | | |
| | | |
Increase per ordinary share attributable to the conversion of promissory note as of September 30, 2017
|
| | | | 9.18 | | | | |||||
| | | |
Pro forma net tangible book value per ordinary share
|
| | | | 1.39 | | | | | | | | |
| | | |
Increase in pro forma net tangible book value per ordinary share attributable to the offering
|
| | | | 3.29 | | | | | | | | |
| | | |
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | 4.68 | | | | |||||
| | | |
Dilution per ordinary share to new investors
|
| | | | | | | | | $ | 7.32 | | |
| | | |
Percentage of dilution per ordinary share to new investors
|
| | | | | | | | | | 61% | | |
|
| | |
Shares purchased
|
| |
Total consideration
|
| |
Average
price per share |
| ||||||||||||||||||||||||
| | |
Number
|
| |
%
|
| |
Amount
|
| |
%
|
| | | |||||||||||||||||||
Existing shareholder
|
| | | | 11,735,069 | | | | | | 65.2 | | | | | $ | 95,531,592 | | | | | | 56.0 | | | | | $ | 8.14 | | | | ||
New investors
|
| | | | 6,250,000 | | | | | | 34.8 | | | | | | 75,000,000 | | | | | | 44.0 | | | | | | 12.00 | | | | ||
Total
|
| | | | 17,985,069 | | | | | | 100 | | | | | $ | 170,531,592 | | | | | | 100 | | | | | $ | 9.48 | | | | ||
|
| | |
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)
|
| | | $ | 1.53 | | | | | $ | 3.30 | | | | | $ | 2.53 | | | | | $ | 4.15 | | |
Weighted average number of ordinary shares outstanding – basic and diluted
|
| | | | 6,290,242 | | | | | | 6,290,242 | | | | | | 6,290,242 | | | | | | 6,290,244 | | |
Pro forma basic and diluted net loss per ordinary share (unaudited) (1)(2)
|
| | | | | | | | | $ | 1.77 | | | | | | | | | | | $ | 2.23 | | |
Pro forma weighted average number of ordinary shares outstanding – basic and diluted (unaudited) (2)
|
| | | | | | | | | | 11,735,067 | | | | | | | | | | | | 11,735,069 | | |
|
| | |
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
|
| |
$6.31
|
| |
$11.99
|
| |
$24.37
|
|
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
|
| | | | 272,339 | | | | | | Ordinary | | | | | | options | | | | | $ | 1.59 | | | | | $ | 6.31 | | |
April 12, 2015
|
| | | | 39,854 | | | | | | Ordinary | | | | | | options | | | | | $ | 1.59 | | | | | $ | 6.31 | | |
August 2, 2016
|
| | | | 90,760 | | | | | | Ordinary | | | | | | options | | | | | $ | 1.59 | | | | | $ | 11.99 | | |
February 12, 2017
|
| | | | 53,831 | | | | | | Ordinary | | | | | | options | | | | | $ | 1.59 | | | | | $ | 20.47 | | |
July 13, 2017
|
| | | | 27,072 | | | | | | Ordinary | | | | | | options | | | | | $ | 1.59 | | | | | $ | 24.37 | | |
July 13, 2017
|
| | | | 380,646 | | | | | | Ordinary | | | | | | options | | | | | $ | 5.57 | | | | | $ | 24.37 | | |
August 22, 2017
|
| | | | 126,900 | | | | | | Ordinary | | | | | | options | | | | | $ | 5.57 | | | | | $ | 24.37 | | |
October 1, 2017
|
| | | | 1,800 | | | | | | Ordinary | | | | | | options | | | | | $ | 5.57 | | | | | $ | 24.37 | | |
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
December 31, 2017 |
| |||
| | | |
Administrative
|
| | | | 5 | | |
| | | |
Research, development and quality assurance
|
| | | | 42 | | |
| | | |
Total
|
| | | | 47 | | |
|
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) | | |
45
|
| | 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)
|
| | | | 11,735,069 | | | | | | 100.0% | | | | | | 11,735,069 | | | | | | 65.2% | | |
Directors, director nominees and executive officers
|
| | | | | ||||||||||||||||||||
Moshe Arkin (1)
|
| | | | 11,735,069 | | | | | | 100.0% | | | | | | 11,735,069 | | | | | | 65.2% | | |
Alon Seri-Levy (2)
|
| | | | 118,633 | | | | | | 1.0% | | | | | | 118,633 | | | | | | * | | |
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)
|
| | | | 11,991,699 | | | | | | 100% | | | | | | 11,991,699 | | | | | | 65.7% | | |
|
| | | |
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
|
| | | | 3,046,875 | | |
| | | |
BMO Capital Markets Corp.
|
| | | | 1,640,625 | | |
| | | |
JMP Securities LLC
|
| | | | 781,250 | | |
| | | |
Raymond James & Associates, Inc.
|
| | | | 781,250 | | |
| | | |
Total
|
| | | | 6,250,000 | | |
|
| | | | | | |
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
|
| | | $ | 12.00 | | | | | $ | 12.00 | | | | | $ | 75,000,000 | | | | | $ | 86,250,000 | | |
| | | |
Underwriting discounts and commissions paid by us
|
| | | $ | 0.84 | | | | | $ | 0.84 | | | | | $ | 5,250,000 | | | | | $ | 6,037,500 | | |
| | | |
Proceeds to us, before expenses
|
| | | $ | 11.16 | | | | | $ | 11.16 | | | | | $ | 69,750,000 | | | | | $ | 80,212,500 | | |
Itemized expense
|
| |
Amount
|
| |||
SEC registration fee
|
| | | $ | 9,996 | | |
FINRA filing fee
|
| | | | 13,438 | | |
Nasdaq Global Market listing fee
|
| | | | 125,000 | | |
Printing and engraving expenses
|
| | | | 150,000 | | |
Legal fees and expenses
|
| | | | 1,250,000 | | |
Transfer agent and registrar fees
|
| | | | 10,000 | | |
Accounting fees and expenses
|
| | | | 300,000 | | |
Miscellaneous
|
| | | | 41,566 | | |
Total
|
| | | $ | 1,900,000 | | |
|
| | |
Page
|
|
| | | ||
AUDITED FINANCIAL STATEMENTS: | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
UNAUDITED CONDENSED FINANCIAL STATEMENTS: | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| Tel-Aviv, Israel | | | /s/ Kesselman & Kesselman | |
| March 30, 2017, except for the effects of the stock split discussed in Note 10(b) to the financial statements, as to which the date is January 19, 2018 | | | 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: 6,290,242 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
|
| | | $ | 1.53 | | | | | $ | 3.30 | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
|
| | |
|
6,290,242
|
| | | |
|
6,290,242
|
| |
|
| | |
Ordinary shares
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Number
of shares |
| |
Amounts
|
| |
Amounts
|
| |||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2015
|
| | | | 6,290,242 | | | | | $ | 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
|
| | | | 6,290,242 | | | | | | 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
|
| | | | 6,290,242 | | | | | $ | 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
|
| |
$6.31
|
| |
$11.99
|
|
| | | |
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
|
| | | | — | | | | | | — | | | | | | — | | | | | | 312,192 | | | | | $ | 1.59 | | | | | | 9.25 | | |
| | | |
Granted
|
| | | | 312,192 | | | | | $ | 1.59 | | | | | | 9.25 | | | | | | 90,760 | | | | | $ | 1.59 | | | | | | 9.59 | | |
| | | |
Options outstanding at the end of the year
|
| | | | 312,192 | | | | | $ | 1.59 | | | | | | 9.25 | | | | | | 402,952 | | | | | $ | 1.59 | | | | | | 8.55 | | |
| | | |
Options exercisable at the end of the year
|
| | | | 97,560 | | | | | $ | 1.59 | | | | | | 9.25 | | | | | | 192,337 | | | | | $ | 1.59 | | | | | | 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: 6,290,242 and 6,920,244 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
|
| | | $ | 2.53 | | | | | $ | 4.15 | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
|
| | |
|
6,290,242
|
| | | |
|
6,290,244
|
| |
|
| | |
Ordinary shares
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Number of
shares |
| |
Amounts
|
| |
Amounts
|
| |||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2016
|
| | | | 6,290,242 | | | | | $ | 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
|
| | | | 6,290,242 | | | | | $ | 82 | | | | | $ | 32,108 | | | | | $ | (58,827) | | | | | $ | (26,637) | | |
BALANCE AS OF JANUARY 1, 2017
|
| | | | 6,290,242 | | | | | $ | 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
|
| | | | 2 | | | | | | | | | | | | 6,232 | | | | | | | | | | | | 6,232 | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 2,238 | | | | | | | | | | | | 2,238 | | |
BALANCE AT SEPTEMBER 30, 2017
|
| | | | 6,290,244 | | | | | $ | 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
|
| |
$20.47
|
| |
$24.37
|
|
| | | |
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 – 7 years
|
|
|
| | | | | | |
2017
|
|
| | | |
Value of one ordinary share
|
| |
$24.37
|
|
| | | |
Dividend yield
|
| |
0%
|
|
| | | |
Expected volatility
|
| |
72.91% – 76.63%
|
|
| | | |
Risk-free interest rate
|
| |
1.91% – 2.16%
|
|
| | | |
Expected term
|
| |
10 years
|
|
|