Exhibit 99.2

 

 

 

 

 

CAN-FITE BIOPHARMA LTD.

 

 

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

AS OF JUNE 30, 2016

 

 

UNAUDITED

 

 

 

 

INDEX

 

 

  Page
   
Interim Condensed Consolidated Statements of Financial Position   2 - 3
   
Interim Condensed Consolidated Statements of Comprehensive Loss 4
   
Interim Condensed Consolidated Statements of Changes in Equity 5 - 6
   
Interim Condensed Consolidated Statements of Cash Flows 7 - 8
   
Notes to Interim Condensed Consolidated Financial Statements 9 - 15

 

 

- - - - - - - - - - -

 

 

 

 

CAN-FITE BIOPHARMA LTD.

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

In thousands (except for share and per share data)

 

  

Convenience
translation
into
U.S. dollars

     
   June 30,   June 30,   December 31, 
   2016   2016   2015 
   Unaudited   Audited 
   USD   NIS 
         
ASSETS            
             
CURRENT ASSETS:            
                
Cash and cash equivalents   12,070    46,422    66,026 
Other receivable and prepaid expenses   1,717    6,604    2,419 
                
Total current assets   13,787    53,026    68,445 
                
NON-CURRENT ASSETS:               
                
Lease deposits   7    27    27 
Property, plant and equipment, net   62    237    236 
                
Total long-term assets   69    264    263 
                
Total assets   13,856    53,290    68,708 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 2 - 
 

 

CAN-FITE BIOPHARMA LTD.

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

In thousands (except for share and per share data)

 

  

Convenience
translation
into
U.S. dollars

         
   June 30,   June 30,   December 31, 
   2016   2016   2015 
   Unaudited   Audited 
   USD   NIS 
         
LIABILITIES AND SHAREHOLDERS' EQUITY            
             
CURRENT LIABILITIES:            
             
Trade payables   635    2,442    1,803 
Deferred revenues   223    857    857 
Other accounts payable   742    2,855    4,279 
                
Total current liabilities   1,600    6,154    6,939 
                
NON-CURRENT LIABILITIES:               
                
Warrants exercisable into shares   3,419    13,151    16,725 
Deferred revenues   836    3,213    3,641 
Severance pay, net   167    643    630 
                
Total long-term liabilities   4,422    17,007    20,996 
                
CONTINGENT LIABILITIES AND COMMITMENTS               
                
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:               
                
Share capital   1,830    7,039    7,030 
Share premium   86,550    332,873    332,873 
Capital reserve from share-based payment transactions   5,194    19,976    19,288 
Warrants exercisable into shares (series 10-12)   2,336    8,983    8,983 
Treasury shares, at cost   (943)   (3,628)   (3,628)
Accumulated  other comprehensive loss   (365)   (1,403)   (1,401)
Accumulated deficit   (86,859)   (334,062)   (322,876)
                
Total equity attributable to equity holders of the Company   7,743    29,778    40,269 
                
Non-controlling interests   91    351    504 
                
Total equity   7,834    30,129    40,773 
                
Total liabilities and equity   13,856    53,290    68,708 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 3 - 
 

 

CAN-FITE BIOPHARMA LTD.

  

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

In thousands (except for share and per share data)

 

   Convenience
translation
into
U.S. dollars		     
   Six months ended June 30, 
   2016   2016   2015 
   Unaudited 
   USD   NIS   NIS 
             
             
Revenues   111    428    271 
                
Research and development expenses   2,592    9,968    5,751 
General and administrative expenses   1,299    4,996    4,670 
                
Operating loss   3,780    14,536    10,150 
                
Finance expenses   149    575    1,005 
Finance income   (978)   (3,761)   (2,886)
                
Net loss   2,951    11,350    8,269 
                
Other comprehensive loss (income):               
Adjustments arising from translating financial statements  of foreign operations   1    3    (370)
                
Total comprehensive loss   2,952    11,353    7,899 
                
Net loss attributable to:               
Equity holders of the Company   2,908    11,186    7,898 
Non-controlling interests   43    164    371 
                
    2,951    11,350    8,269 
                
Total comprehensive loss attributable to:               
Equity holders of the Company   2,909    11,188    7,594 
Non-controlling interests   43    165    305 
                
    2,952    11,353    7,899 
                
Net loss per share attributable to equity holders of the Company :               
Basic and diluted net loss per share   0.10    0.40    0.37 
Basic and diluted net loss per share   0.10    0.40    0.37 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 4 - 
 

 

CAN-FITE BIOPHARMA LTD.

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

NIS in thousands (except for share and per share data)

 

   Attributable to equity holders of the Company         
   Share
capital		   Share
premium		   Capital
reserve from
share-based
payment
transactions		   Warrants
exercisable
into shares		   Treasury shares   Accumulated
other
comprehensive
income (loss)		   Accumulated
deficit		   Total   Non-
controlling
interests		  

Total

equity

 
   NIS 
                                         
Balance as of January 1, 2016  7,030  332,873   19,288   8,983   (3,628)  (1,401)  (322,876)  40,269   504   40,773 
                                                   
 Loss   -    -    -    -    -    -    (11,186)   (11,186)   (164)   (11,350)
Adjustments arising from translating financial statements of foreign operations   -    -    -    -    -    (2)   -    (2)   (1)   (3)
                                                   
Total comprehensive income (loss)   -    -    -    -    -    (2)   (11,186)   (11,188)   (165)   (11,353)
Share-based payment   9    -    688    -    -    -    -    697    12    709 
                                                   
Balance as of June 30, 2016 (unaudited)   7,039    332,873    19,976    8,983    (3,628)   (1,403)   (334,062)   (29,778)   351    30,129 
                                                   
Balance as of January 1, 2015   5,441    301,787    17,153    9,652    (3,628)   (1,015)   (304,150)   25,240    1,460    26,700 
                                                   
Loss   -    -    -    -    -    -    (7,898)   (7,898)   (371)   (8,269)
Foreign currency translation reserve   -    -    -    -    -    304    -    304    66    370 
                                                   
Total comprehensive income (loss)   -    -    -    -    -    304    (7,898)   (7,594)   (305)   (7,899)
                                                   
Expire of warrants exercisable into shares   -    669    -    (669)   -    -    -    -    -    - 
Share-based payment   -    -    72    -    -    -    -    72    55    127 
                                                   
Balance as of June 30, 2015 (unaudited)   5,441    302,456    17,225    8,983    (3,628)   (711)   (312,048)   17,718    1,210    18,928 

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

 - 5 - 
 

 

CAN-FITE BIOPHARMA LTD.

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

US.dollars in thousands (except for share and per share data)

 
   Attributable to equity holders of the Company         
   Share
capital		   Share
premium		   Capital
reserve from
share-based
payment
transactions		   Warrants
exercisable
into shares		   Treasury shares   Accumulated
other
comprehensive
income (loss)		   Accumulated
deficit		   Total   Non-
controlling
interests		  

Total

equity

 
   Convenience translation into U.S. dollars 
     
Balance as of January 1, 2016  1,828  86,550   5,015   2,336   (943)  (364)  (83,951)  10,471   131   10,602 
                                                   
Loss   -    -    -    -    -    -    (2,908)   (2,908)   (43)   (2,951)
Adjustments arising from translating financial statements of foreign operations   -    -    -    -    -    (1)   -    (1)   -    (1)
                                                   
Total comprehensive income (loss)   -    -    -    -    -    (1)   (2,908)   (2,909)   (43)   (2,952)
                                                   
Share-based payment   2    -    179    -    -    -    -    181    3    184 
                                                   
Balance as of June, 2016   1,830    86,550    5,194    2,336    (943)   (365)   (86,859)   7,743    91    7,834 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 6 - 
 

 

CAN-FITE BIOPHARMA LTD.

  

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

In thousands (except for share and per share data)

 

   Convenience
translation
into
U.S. dollars		     
   Six months ended June 30, 
   2016   2016   2015 
   Unaudited 
   USD   NIS   NIS 
             
Cash flows from operating activities:            
             
Net loss   (2,951)   (11,350)   (8,269)
                
Adjustments to reconcile net loss to net cash used:               
                
Depreciation of property, plant and equipment   9    35    30 
Share-based payment   184    709    127 
Increase (decrease) in severance pay, net   3    13    (10)
Changes in fair value of warrants liability exercisable into shares   (929)   (3,574)   (2,872)
Exchange differences on balances of cash and cash equivalents   (154)   (593)   (658)
                
    (887)   (3,410)   (3,383)
Working capital adjustments:               
Decrease (Increase) in accounts receivable and prepaid expenses and lease deposit   (1,087)   (4,187)   535 
Increase (decrease) in trade payables   176    678    (597)
Increase (decrease) in deferred revenues   (111)   (428)   4,870 
Decrease in other accounts payable   (381)   (1,464)   (563)
                
    (1,404)   (5,401)   4,245 
                
Net cash used in operating activities   (5,242)   (20,161)   (7,407)

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 7 - 
 

 

CAN-FITE BIOPHARMA LTD.

 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands (except for share and per share data)

 

   Convenience
translation
into
U.S. dollars		     
   Six months ended June 30, 
   2016   2016   2015 
   Unaudited 
   USD   NIS   NIS 
             
Cash flows from investing activities:            
             
Purchase of property, plant and equipment   (9)   (36)   (143)
                
Net cash used in investing activities   (9)   (36)   (143)
                
Exchange differences on balances of cash and cash equivalents   154    593    658 
                
Decrease in cash and cash equivalents   (5,097)   (19,604)   (6,892)
Cash and cash equivalents at the beginning of the period   17,167    66,026    36,091 
                
Cash and cash equivalents at the end of the period   12,070    46,422    29,199 
                

Supplemental disclosure of cash flow information:

               
                
Cash received during the year for interest   20    75    18 

  

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

 - 8 - 
 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

 

NOTE 1:- GENERAL

 

a.These financial statements have been prepared in a condensed format as of June 30, 2016 and for the six months then ended. These financial statements should be read in conjunction with the Company's annual consolidated financial statements as of December 31, 2015 and for the year then ended and accompanying.

 

b.Definitions:

 

In these consolidated financial statements:

 

  The Company - Can-Fite Biopharma Ltd.
       
  The Group - The Company and its subsidiaries (as defined below).
       
  Subsidiaries - Companies that are controlled by the Company (as defined in IAS 27 (2008)) and whose accounts are consolidated with those of the Company.
       
  OphthaliX - OphthaliX Inc. (owned 82% by the Company).
       
  Related company - Eye-Fite Ltd. (OphthaliX Inc.’s wholly owned subsidiary).
       
  Related parties - As defined in IAS 24.
       
  NIS - New Israeli Shekel.
       
  USD - U.S. dollar.

 

c.On July 5, 2016, OphthaliX released top-line results from its Phase II clinical trial of CF101 for the treatment of glaucoma. In this trial, no statistically significant differences were found between the CF101 treated group and the placebo group in the primary endpoint of lowering intra ocular pressure (“IOP”). High IOP is a characteristic of glaucoma. CF101 was found to have a favorable safety profile and was well tolerated.

 

d.For the six months ended June 30, 2016, the Company incurred net losses of NIS 11,350 and had negative cash flows from operating activities in the amount of NIS 20,161 as well as accumulated losses from previous years. In addition, based on the decision of the Company's board of directors, the Company has undertaken to finance OphthaliX's clinical development at least until October 9, 2016. The Company has not yet generated any material revenues from sales of its own developed products, or license agreements, and has financed its activities by raising capital and by collaborating with multinational companies in the industry. In September and October 2015, the Company raised a net total of NIS 32,349 thousand (approximately $8,208 thousand) and NIS 16,410 thousand (approximately $4,300 thousand) respectively. For further information see Note 4. Also in March 2015, the Company received a net total of NIS 5,141 (CAD 1,650) upfront payment according to a distribution agreement with Cipher Pharmaceuticals, Inc. (“Cipher”) for future sales in Canada. For further information see Note 3. The Company has other alternative plans for financing its ongoing activities, if necessary, such as having the flexibility to control clinical trials costs and/or by monetizing the Company’s shares held by OphthaliX. There are no assurances that the Company will be successful in obtaining an adequate level of financing needed for its long-term research and development activities. If the Company will not have sufficient liquidity resources, the Company may not be able to continue the development of all of its products or may be required to delay part of its development programs.

 

 - 9 - 
 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

NOTE 1:- GENERAL (Cont.)

 

The Company's management and board of directors are of the opinion that these financial resources will be sufficient to continue the development of the company's products at least for twelve months from the balance sheet date.

 

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES

 

a.Basis of presentation of the financial statements

 

The interim condensed consolidated financial statements for the six months period ended June 30, 2016 have been prepared in accordance with IAS 34, "Interim Financial Reporting".

  

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended December 31, 2015.

 

b.Convenience translation

 

For the convenience of the reader, the reported NIS amounts as of June 30, 2016 have been translate into U.S. dollars at the representative rate of exchange on June 30, 2016  (U.S. $1 = NIS 3.846). The U.S. dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into U.S. dollars, unless otherwise indicated. The U.S. dollar amounts were rounded to whole numbers for convenience.

  

NOTE 3:- CONTINGENT LIABILITIES AND COMMITMENTS

 

a.Liabilities to pay royalties:

 

1.According to the license agreement that the Company entered into with the NIH on January 29, 2003, the Company committed to pay royalties until the expiration of the last patent licensed under the license agreement. The last patent under this agreement expired on June 29, 2015, and therefore except with respect to any amounts already accrued on the Company’s balance sheet, no future payments or royalties will be due.

 

 - 10 - 
 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

NOTE 3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)

 

As of June 30, 2016, the Company accrued NIS 1,635 thousand (approximately $425 thousand) in other accounts payable with respect to the NIH.

 

2.According to the patent license agreement that the Company entered into with Leiden University in the Netherlands on November 2, 2009, which is affiliated with the NIH, the Company was granted an exclusive license for the use of the patents of several compounds, including CF602 in certain territories.

 

The Company is committed to pay royalties as follows:

 

a)A one-time concession commission of €25 thousand;
b)Annual royalties of €10 thousand until the clinical trials commence;
c)2%-3% of net sales (as defined in the agreement) received by the Company;
d)Royalties in a total amount of up to €850 thousand based on certain progress milestones in the license stages of the products, which are the subject of the patent under the agreement, as follows: (i) €50 thousand upon initiation of Phase I studies; (ii) €100 thousand upon initiation of Phase II studies; (iii) €200 thousand upon initiation of Phase III studies; and (iv) €500 thousand upon marketing approval by any regulatory authority.
e)If the agreement is sublicensed to another company, the Company will provide Leiden University royalties at a rate of 10%. A merger, consolidation or any other change in ownership will not be viewed as an assignment of the agreement as discussed in this paragraph.

 

As of December 31, 2015, and as of June 30, 2016, no accrual is recorded with respect to Leiden University.

 

b.Commitments and license agreements:

 

1.In September 2006, the Company signed an exclusive license agreement regarding inflammatory indicators, including rheumatoid arthritis indicators (excluding eye disease indicators) with a public Japanese company, (the “Japanese Corporation”), for the use, development and marketing of the Company's CF101 drug in Japan only. Under the agreement, the Company received certain payments from the Japanese Corporation. In August 2015, the Company and the Japanese Corporation terminated the license agreement.

 

2.In March 2015, the Company signed a distribution agreement with Cipher. As part of the distribution agreement, Cipher will distribute Can-Fite's lead drug candidate, CF101 ("Product") for the treatment of psoriasis and rheumatoid arthritis in the Canadian market upon receipt of regulatory approvals.

 

Under the terms of the agreement, Cipher made an upfront payment of NIS 5,141 thousand (CAD 1,650 thousand) to the Company in March 2015. In addition, the agreement provides that additional payments of up to CAD 2,000 thousand will be received by the Company upon the achievement of certain milestones plus royalty payments of 16.5% of net sales of CF101 in Canada. The agreement further provides that the Company will deliver finished product to Cipher and that Cipher will reimburse the Company for the cost of manufacturing.

 

 - 11 - 
 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

NOTE 3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)

  

Furthermore, under the distribution agreement, the Company shall be responsible for conducting product development activities including management of the clinical studies required in order to secure regulatory approvals, and shall use commercially reasonable efforts in conducting such activities. In addition, the Company agreed to form a joint steering committee with Cipher which will oversee the progress of the clinical studies.

 

The Company identified four components in the agreement: (i) performing the research and development services through regulatory approval; (ii) exclusive license to distribute the product in Canada; (iii) participation in joint steering committee; and,

(iv) royalties resulting from future sales of the product. Components (i) – (iii) were analyzed as one unit of accounting. Consequently, revenue from these components is recorded based on the term of the research and development services (which is the last deliverable in the arrangement). The Company estimates these services will spread over a period of 24 quarters beginning March 2015. Component (iv) was not accounted as part of the research and development services and will be recognized entirely upon the Company reaching sales stage.

 

3.In December 2008, the Company signed an agreement regarding the provision of a license for its CF101 drug with a South Korean pharmaceutical company, Kwang Dong Pharmaceutical Co. Ltd. (the “Korean License Agreement” and the “Korean Company”, respectively). According to the license agreement, the Company granted the Korean Company a license to use, develop and market its CF101 drug for treating only rheumatoid arthritis only in the Republic of Korea.

 

According to the license agreement, the Company is entitled to receive the following amounts:

 

a)A non-refundable amount of $300 thousand that was received on the effective date of the license agreement in 2006, and up to $1.2 million (gross) based on the Company's achievement of certain milestones as follows: (i) $200 thousand upon the public announcement of the data from the Can-Fite Phase II clinical trial (such amount was received and included in the Company's revenue for the year ended December 31, 2010); (ii) $200 thousand upon commencement of the first clinical study by the Korean Company in the Republic of Korea; (iii) $200 thousand upon submission by the Korean Company of a new drug application in the Republic of Korea; (iv) $300 thousand upon all approval, licenses or authorizations of any regulatory authority necessary for the commercial marketing, sale and use of the product in the United States, in the European Union as a whole or in any one of the following countries: Germany, Italy, the United Kingdom, France or Switzerland; and (v) $300 thousand upon commercial launch of the product in the Republic of Korea.

 

b)The Company is entitled to annual royalties of 7% based on sales of CF101 in Korea as marketed by the Korean Company according to the Korean License Agreement.

  

 - 12 - 
 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

NOTE 3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)

 

As of December 31, 2015, and as of June 30, 2016, the Company estimates that such contingent payments are remote.

 

c.Class action:

 

On June 29, 2015 the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants. The motion was filed with the District Court of Tel-Aviv. The lawsuit alleges, among other things, that the Company misled the public with regard to disclosures concerning the efficacy of the Company’s drug candidate, CF101. The claimant alleges that he suffered personal damages of over NIS 73 thousand, while also claiming that the shareholders of the Company suffered damages of approximately NIS 125 million. The Company believes it has strong defense against these allegations and that the District Court should deny the motion to approve the class action, however, there is no assurance that the Company’s position will be accepted by the District Court. In such case the Company may have to divert attention of its executives to deal with this class action as well as incur expenses that may be beyond its insurance coverage for such cases, which cause a risk of loss and expenditures that may adversely affect its financial condition and results of operations.

 

NOTE 4:- EQUITY

 

a.Composition of share capital:
     June 30, 2016   December 31, 2015 
     Authorized   Issued and outstanding   Authorized   Issued and outstanding 
     Number of Shares 
  Ordinary shares of NIS 0.25 par value each   80,000,000    28,156,728    80,000,000    28,119,728 

 

b.Issue of shares and warrants and changes in equity:

 

1.In October 2015, the Company granted an amount of 200,000 options to acquire up to 200,000 of the Company's ordinary shares to one of its directors at an exercise price of NIS 3.573 per share. The options will vest over a period of three years on a quarterly basis for 12 consecutive quarters from the date of the grant. The term of the options is 10 years.

 

2.On May 26, 2016, the Company's board of directors approved a grant of 64,000 shares of the Company to its service provider. Pursuant to the agreement with the service provider, and as partial consideration, the Company issued 37,000 ordinary and agreed to issue an additional 37,000 ordinary shares within 180 days, provided that the agreement was not terminated. As of June 30, 2016 the Company recorded an amount of NIS 188 thousand for share based payment expenses relating to this transaction.

 

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NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

NOTE 4:- EQUITY (Cont.)

 

In addition, the Company's board of directors approved a grant of 20,000 options exercisable up to 20,000 Ordinary Shares of the Company to one of its advisers at an exercise price of 5.376 NIS per Share. The options will vest on a quarterly basis for a period of 48 months from the grant date.

 

c.Warrants classified as equity:

 

1.The Company had 12,168,000 registered warrants (Series 9) that were exercisable into 486,720 ordinary shares of the Company for an exercise price of NIS 21.25 per share. These warrants expired on May 1, 2015.

 

2.The Company has 39,042,000 registered warrants (Series 10) that are exercisable into 1,561,680 ordinary shares of the Company for NIS 9.85 per share. The warrants were originally exercisable until October 31, 2015. In November 2015, the Company's Special General Meeting of its Shareholders approved an extension of the term of the Company’s Series 10 Warrants until October 31, 2016, and to allow the exercise of the Series 10 Warrants on any trading day.

 

3.The Company has 37,372,500 registered warrants (Series 11) that are exercisable into 1,494,900 ordinary shares of the Company for NIS 9.80 per share. The warrants were originally exercisable until April 30, 2016. In April 2016, the Company's Special General Meeting of its Shareholders approved an extension of the term of the Company’s Series 11 Warrants until October 31, 2016, and to allow the exercise of the Series 11 Warrants on any trading day.

 

4.The Company has 1,470,000 registered warrants (Series 12) that are exercisable into 1,470,000 ordinary shares of the Company for NIS 15.29 per share. The warrants are exercisable until October 22, 2016.

 

d.In February 2016, the Company's board of directors approved a grant of unlisted options exercisable into 160,000 of the Company's ordinary shares to three of its employees and one senior officer for an exercise price of NIS 4.317 per shares. The options vest on a quarterly basis for a period of 48 months from the grant date.

 

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NOTES TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)

 

NOTE 5:- TRANSACTIONS WITH RELATED PARTIES

 

The following table provides the total amount of transactions that have been entered into with related parties during the six months ended June 30, 2016 and 2015:

 

     Six months ended
June 30,		 
     2016   2015 
     NIS in thousands 
           
  Management and consulting fees and share based payment   964    525 
             
  Other expenses   23    24 
             
  Patent expenses   331    253 
             
  Directors' fee and share-based payment   214    264 

 

As of June 30, 2016 and December 31, 2015, there were no outstanding balances with related parties.

 

NOTE 6:-    FINANCIAL INSTRUMENTS

 

The Company's warrants exercisable into shares liability are classified as level 3 (valuations based on unobservable inputs reflecting assumptions, consistent with reasonably available assumptions made by other market participants). The carrying amount of cash and cash equivalents, accounts receivables, trade payables and other accounts payable approximate their fair value.

 

 

 

 

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