10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ___________________

Commission File Number 001-36641

BRAINSTORM CELL THERAPEUTICS INC.

(Exact name of registrant as specified in its charter)

Delaware	20-7273918
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
3 University Plaza Drive, Suite 320 Hackensack, NJ (Address of principal executive offices)	07601 (Zip Code)

(201) 488-0460

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  ¨
Non-accelerated filer  ¨  (Do not check if a smaller reporting company)	Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨  No x

As of August 10, 2015, the number of shares outstanding of the registrant’s Common Stock, $0.00005 par value per share, was 18,480,957.

TABLE OF CONTENTS

	Page Number
PART I	3
Item 1. Financial Statements.	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	26
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	32
Item 4. Controls and Procedures.	32
PART II	32
Item 1. Legal Proceedings.	32
Item 1A. Risk Factors.	32
Item 5. Other Information.	32
Item 6. Exhibits.	32
SIGNATURE	33
EXHIBIT INDEX	34

2

PART I: FINANCIAL INFORMATION

SPECIAL NOTE

Unless otherwise specified in this quarterly report on Form 10-Q, all references to currency, monetary values and dollars set forth herein shall mean United States (U.S.) dollars.

Item 1. Financial Statements.

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2015

UNAUDITED

U.S. DOLLARS IN THOUSANDS

3

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2015

UNAUDITED

U.S. DOLLARS IN THOUSANDS

INDEX

	Page
Consolidated Balance Sheets	5
Consolidated Statements of Operations	6
Statements of Changes in Stockholders' Equity	7 - 9
Consolidated Statements of Cash Flows	10 - 11
Notes to Consolidated Financial Statements	12 – 25

4

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

(Except share data and exercise prices)

	June 30,			December 31,
	2015			2014
	Unaudited			Audited
ASSETS
Current Assets:
Cash and cash equivalents		1,301			4,251
Short-term deposit (Note 6)		18,394			4,290
Account receivable		252			1,005
Prepaid expenses		114			32
Total current assets		20,061			9,578
Long-Term Assets:
Prepaid expenses		20			20
Total long-term investments		20			20
Property and Equipment, Net		282			313
Total assets		20,363			9,911
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade payables		755			1,542
Accrued expenses		1,505			1,347
Other accounts payable		266			224
Total current liabilities		2,526			3,113
Long-Term Liabilities:
Warrants issued to investors		-			123
Total long-term liabilities		-			123
Total liabilities		2,526			3,236
Stockholders' Equity:
Stock capital: (Note 7)		13			11
Common stock of $0.00005 par value - Authorized: 800,000,000 shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 18,480,957 and 15,281,497shares at June 30, 2015 and December 31, 2014 respectively.
Additional paid-in-capital		83,978			68,317
Accumulated deficit		(66,154	)		(61,653	)
Total stockholders' equity		17,837			6,675
Total liabilities and stockholders' equity		20,363			9,911

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

5

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

(Except share data and exercise prices)

	Six months ended						Three months ended
	June 30,						June 30,
	2015			2014			2015			2014
	Unaudited						Unaudited
Operating costs and expenses:
Research and development, net	$	2,620		$	1,557		$	1,375		$	877
General and administrative		1,948			768			988			417
Operating profit (loss)		(4,568	)		(2,325	)		(2,363	)		(1,294	)
Financial (income) expenses, net		(67	)		1,770			(98	)		690
Net profit (loss)		(4,501	)		(4,095	)		(2,265	)		(1,984	)
Basic and diluted net profit (loss) per share from continuing operations		(0.24	)		(0.34	)		(0.12	)		(0.16	)
Weighted average number of shares outstanding used in computing basic and diluted net loss per share		18,290,343			12,080,621			18,450,464			12,416,892

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

6

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

U.S. dollars in thousands

(Except share data and exercise prices)

						Additional					Total
	Common stock					paid-in		Accumulated			stockholders'
	Number		Amount			capital		deficit			equity
Balance as of December 31, 2012		10,005,644	$	7		$	51,483	$	(47,508	)	$	3,982
Stock-based compensation related to options and stock granted to service providers		53,980					197		-			197
Stock-based compensation related to stock and options granted to directors and employees		50,666					674		-			674
Issuance of shares for public offering		1,568,628		1			2,496		-			2,497
Issuance of shares for private placement		55,555		(*	)		250		-			250
Conversion of convertible loans		8,408		-			30		-			30
Exercise of options		8,000		(*	)		8		-			8
Net loss		-		-			-		(4,899	)		(4,899	)
Balance as of December 31, 2013		11,750,881	$	8		$	55,138	$	(52,407	)	$	2,739

* Represents an amount less than $1.

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

7

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

U.S. dollars in thousands

(Except share data and exercise prices)

						Additional					Total
	Common stock					paid-in		Accumulated			stockholders'
	Number		Amount			capital		deficit			equity
Balance as of December 31, 2013		11,750,881	$	8		$	55,138	$	(52,407	)	$	2,739
Stock-based compensation related to warrants and stock granted to service providers		53,419		-			198		-			198
Stock-based compensation related to stock and options granted to directors and employees		50,667		-			1,024		-			1,024
Issuance of shares for private placement		2,800,000		3			9,551		-			9,554
Stock issued for warrants exchange		388,735		(*	)		1,633		-			1,633
Warrants liability classified as equity		-		-			42		-			42
Exercise of warrants		180,018		(*	)		701		-			701
Exercise of options		57,777		(*	)		30					30
Net loss		-		-			-		(9,246	)		(9,246	)
Balance as of December 31, 2014		15,281,497	$	11		$	68,317	$	(61,653	)	$	6,675

* Represents an amount less than $1.

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

8

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

U.S. dollars in thousands

(Except share data and exercise prices)

						Additional					Total
	Common stock					paid-in		Accumulated			stockholders'
	Number		Amount			capital		deficit			equity
Balance as of December 31, 2014		15,281,497	$	11		$	68,317	$	(61,653	)	$	6,675
Stock-based compensation related to warrants and stock granted to service providers		27,411		-			108		-			108
Stock-based compensation related to stock and options granted to directors and employees		60,000		-			668		-			668
Exercise and reissuance of warrants		2,546,667		2			12,407		-			12,409
Exercise of liability classified warrants		29,000		(*	)		145		-			145
Exercise of equity classified warrants		536,382		(*	)		2,333		-			2,333
Net loss		-		-			-		(4,501	)		(4,501	)
Balance as of June 30, 2015		18,480,957	$	13		$	83,978	$	(66,154	)	$	17,837

* Represents an amount less than $1.

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

9

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

(Except share data and exercise prices)

	Six months ended						Three months ended
	June 30,						June 30,
	2015			2014			2015			2014
	Unaudited						Unaudited
Cash flows from operating activities:
Net loss	$	(4,501	)	$	(4,095	)	$	(2,265	)	$	(1,984	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of deferred charges		47			50			24			25
Expenses related to shares and options granted to service providers		108			110			108			-
Amortization of deferred stock-based compensation related to options granted to employees and directors		668			298			321			176
Decrease (increase) in accounts receivable and prepaid expenses		671			64			362			(53	)
Increase (decrease) in trade payables		(787	)		529			(167	)		431
Increase (decrease) in other accounts payable and accrued expenses		200			(79	)		(33	)		(256	)
Revaluation of warrants		7			1,762			-			691
Total net cash used in operating activities	$	(3,587	)	$	(1,361	)	$	(1,650	)	$	(970	)

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

10

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

(Except share data and exercise prices)

	Six months ended						Three months ended
	June 30,						June 30,
	2015			2014			2015			2014
	Unaudited						Unaudited
Cash flows from investing activities:
Purchase of property and equipment		(16	)		(94	)		(16	)		-
Changes in short-term deposit		(14,104	)		-			539	))		-
Investment in lease deposit		-			7			-			(2	)
Total net cash used in investing activities	$	(14,120	)	$	(87	)	$	(555	)	$	(2	)
Cash flows from financing activities:
Proceeds from issuances of common stock through equity warrants and options exercises		2,348			215			-			215
Proceeds from issuance of Common stock, net		-			9,658			-			9,658
Proceeds from equity offering through issuances of equity warrants and common stock through the exercise of previously issued equity warrants		12,409			-			12			-
Redemption of warrants in cash		-			(600	)		-			(600	)
Total net cash provided by financing activities	$	14,757			9,273		$	12			9,273
Increase (decrease) in cash and cash equivalents		(2,950	)		7,825			(2,193	)		8,301
Cash and cash equivalents at the beginning of the period	$	4,251			3,503			3,494			3,027
Cash and cash equivalents at end of the period	$	1,301		$	11,328		$	1,301		$	11,328
Non-cash financing activities:
Stock issued for warrants exchange		-			1,633			-			1,633
Warrants liability classified as equity		130			42			-			42
Total non-cash financing activities		130		$	1,675			-		$	1,675

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

11

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 1 - GENERAL

A. Brainstorm Cell Therapeutics Inc. (formerly: Golden Hand Resources Inc. - the "Company") was incorporated in the State of Washington on September 22, 2000.

B. On July 8, 2004, the Company entered into a licensing agreement with Ramot of Tel Aviv University Ltd. ("Ramot"), to acquire certain stem cell technology (see Note 4). Subsequent to this agreement, the Company decided to focus on the development of novel cell therapies for neurodegenerative diseases based on the acquired technology and research to be conducted and funded by the Company.

Following the licensing agreement dated July 8, 2004, the management of the Company decided to abandon all old activities related to the sale of the digital data recorder product

C. On October 25, 2004, the Company formed a wholly-owned subsidiary in Israel, Brainstorm Cell Therapeutics Ltd. ("BCT").

D. On November 18, 2004, the Company changed its name from Golden Hand Resources Inc. to Brainstorm Cell Therapeutics Inc. to better reflect its new line of business in the development of novel cell therapies for neurodegenerative diseases. BCT, as defined above, owns all operational property and equipment.

The Common Stock is publicly traded on the NASDAQ Capital Market. (See Note 1(W)).

E. In October 2010, the Israeli Ministry of Health (“MOH”) granted clearance for a Phase I/II clinical trial using the Company’s autologous NurOwn stem cell therapy in patients with amyotrophic lateral sclerosis (“ALS”), subject to some additional process specifications as well as completion of the sterility validation study for tests performed.

On February 23, 2011, the Company submitted, to the MOH, all the required documents. Following approval of the MOH, a Phase I/II clinical study for ALS patients using the Company’s autologous NurOwn stem cell therapy (the “Clinical Trial”) was initiated in June 2011.

F. In February 2011, the U.S. Food and Drug Administration (“FDA”) granted orphan drug designation to the Company’s NurOwn autologous adult stem cell product for the treatment of ALS.

G. On February 19, 2013, Brainstorm Ltd established a wholly-owned subsidiaries, Brainstorm Cell Therapeutics UK Ltd. (“Brainstorm UK”). Brainstorm UK acts on behalf of the parent Company in the EU.

H. On February 21, 2013, Brainstorm UK filed a request for Orphan Medicinal Product Designation by the European Medicine Agency (EMA) for its Autologous Bone Marrow derived Mesenchyme Stromal cells Secreting Neurotropic factors (MSC-NTF, NurOwn). On July 17, 2013, the European Commission granted Orphan Drug Designation to the Company’s NurOwn autologous adult stem cell product for the treatment of ALS.

I. On March 14, 2013, the Company signed a definitive agreement with the Mayo Clinic in Rochester, Minnesota to conduct its Phase II clinical trial of NurOwn™ in amyotrophic lateral sclerosis (ALS), pending FDA approval. In addition, Mayo's Human Cell Therapy Laboratory will manufacture the NurOwn cells for their clinical trial participants.

12

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 1 - GENERAL (Cont.):

J. Effective April 3, 2013, the Company entered into an agreement with Dana-Farber Cancer Institute (“Dana-Farber”) to provide cGMP-compliant clean room facilities for production of the Company’s NurOwn™ stem cell candidate during its Phase II ALS trial in the United States. The Company’s Phase II trial, is conducted at Massachusetts General Hospital (“MGH”), the University of Massachusetts (“UMass”) Hospital and the Mayo Clinic. The Connell and O'Reilly Cell Manipulation Core Facility at Dana-Farber will produce NurOwn for the MGH and UMass Hospital clinical sites.

K. On September 27, 2013, the Company announced that it recently completed treatment of the 12 patients in its ALS Phase IIa dose-escalating clinical trial with the Company’s NurOwn™ technology. The Company was informed that one patient in the study expired due to a medical condition unrelated to the Clinical Trial.

The Clinical Trial is being performed at Hadassah Medical Center in Jerusalem, Israel, under the direction of Prof. Dimitrios Karussis, M.D., Ph.D., head of Hadassah's Multiple Sclerosis Center and a member of the International Steering Committees for Bone Marrow and Mesenchymal Stem Cells Transplantation in Multiple Sclerosis (MS). The study is designed to establish the safety and preliminary efficacy of NurOwn at increasing dosages.

L. On December 4, 2013, a Notice of Intention to Grant from the European Patent Office (EPO) was issued for the Company's patent application entitled "Isolated Cells and Populations Comprising Same for the Treatment of CNS Diseases" (European serial number EP06766101.7) . This patent relates to the production method for the company's proprietary stem cells induced to secrete large quantities of neurotrophic factors for the treatment of neurodegenerative diseases.

M. On February 11, 2014, a Notice of Allowance was issued from the U.S. Patent Office for the same patent application as above, U.S. serial number 11/727,583.

N. On March 4, 2014, a Notice of Allowance was issued from the U.S. Patent Office for the same patent application as above, U.S. serial number 12/994,761.

O. On March 24, 2014, BCT signed a definitive agreement with the Massachusetts General Hospital (MGH) in Boston, MA to conduct a Phase II clinical trial of NurOwn™ in amyotrophic lateral sclerosis (ALS), pending FDA approval.

P. On April 28, 2014, the Company announced that the US Food and Drug Administration (FDA) has approved commencement of its Phase II clinical trial with NurOwn™ in patients with Amyotrophic Lateral Sclerosis (ALS). The trial was launched at the Massachusetts General Hospital (MGH) in Boston, MA and the University of Massachusetts Memorial (UMass) Hospital in Worcester, MA after Institutional Review Board (IRB) approvals.  Dana-Farber Cancer Institute's Connell O'Reilly Cell Manipulation Core Facility manufactures the NurOwn™ cells for these two clinical sites. The trial is also conducted at the Mayo Clinic in Rochester, Minnesota.

Q. On June 2, 2014, the Company announced that interim results from the Company's Phase IIa ALS trial conducted at Hadassah Medical Center in Jerusalem, Israel were presented on June 1, 2014 at the Joint Congress of European Neurology by Principal Investigator Professor Dimitrios Karussis. The positive safety and preliminary efficacy results observed in this study are consistent with results observed in the Company's previous Phase I/II trial. Between these two studies, a total of 26 patients have been treated with NurOwn™, the Company’s stem cell therapy candidate for ALS.

13

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 1 - GENERAL (Cont.):

R. On June 6, 2014, the Company announced that its Phase II ALS clinical trial has commenced with the enrollment of the first patient at Massachusetts General Hospital (MGH) in Boston, Massachusetts. Company’s Phase II trial is a randomized, double-blind, placebo controlled multi-center study designed to evaluate the safety and efficacy of transplantation of Autologous Mesenchymal Stem Cells Secreting Neurotrophic Factors ("MSC-NTF" or NurOwn™) in 48 ALS patients. The trial is also being conducted at the University of Massachusetts Memorial (UMass) Hospital in Worcester, Massachusetts and the Mayo Clinic in Rochester, Minnesota.

S. On June 10, 2014, the Company announced that it has initiated a study in a mouse model of autism at the Felsenstein Medical Research Center, Sackler Faculty of Medicine, Tel Aviv University, under the direction of Professor Daniel Offen. The study explores the effects of the company's "MSC-NTF" cells on mouse behavior. The study, which is being conducted using the BTBR mouse model for autism, will investigate repetitive behavior, increased cognitive flexibility and improved sociability in mice after administration of a single intracerebroventricular injection of the cells.

T. On June 24, 2014, the Company signed a definitive agreement with the University of Massachusetts Memorial (UMass) Hospital in Worcester, MA to conduct a Phase II clinical trial of NurOwn™ in ALS.

U. On July 1, 2014, the Company signed a definitive agreement with Professional Research Consulting Clinical Inc., CA ("PRC"), to monitor the Phase II clinical trial of NurOwn™ in ALS.

V. A reverse stock split of the Company’s shares of Common Stock by a ratio 1-for-15 was effected on September 15, 2014 at 11:59 p.m. pursuant to an amendment to the Company’s Certificate of Incorporation approved by the stockholders of the Company on August 14, 2014. The Company adjusted all ordinary shares, options, warrants, per share data and exercise prices included in these financial statements for all periods presented to reflect the reverse stock split.

W. The Company’s shares of Common Stock were approved for uplisting to the NASDAQ, and commenced trading on the NASDAQ on September 30, 2014 under the ticker symbol "BCLI."

GOING CONCERN:

To date the Company has not generated any revenues from its activities and has incurred substantial operating losses. Management expects the Company to continue to generate substantial operating losses and to continue to fund its operations primarily through utilization of its current financial resources and through additional raises of capital. In the first half of 2015 net cash inflows from issuances of common stock through the exercise of equity warrants as well as from issuances of new equity warrants amounted to approximately $14.8 million. Management believes that the Company’s current resources are sufficient to fund its operations for the next 12 months, however there can be no assurance that additional funds necessary for the Company's long term operations will be available on terms acceptable to the Company, or that the Company will not incur additional unforeseen costs or expenses. Such conditions raise substantial doubts about the Company's long term ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of such uncertainties. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern.

14

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2014 are applied consistently in these financial statements.

NOTE 3 - UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements have been prepared in a condensed format and include the consolidated financial operations of the Company and its wholly-owned subsidiaries as of June 30, 2015 and for the six months then ended, in accordance with accounting principles generally accepted in the United States relating to the preparation of financial statements for interim periods. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015, are not necessarily indicative of the results that may be expected for the year ended December 31, 2015.

NOTE 4 - RESEARCH AND LICENSE AGREEMENT

The Company has a Research and License Agreement, as amended and restated, with Ramot. The Company obtained a waiver and release from Ramot pursuant to which Ramot agreed to an amended payment schedule regarding the Company's payment obligations under the Research and License Agreement and waived all claims against the Company resulting from the Company's previous defaults and non-payment under the Research and License Agreement. The waiver and release amended and restated the original payment schedule under the original agreement providing for payments during the initial research period and additional payments for any extended research period.

The Company is to pay Ramot royalties on Net Sales on a Licensed Product by Licensed Product and jurisdiction by jurisdiction basis as follow:

a) So long as the making, producing, manufacturing, using, marketing, selling, importing or exporting of such Licensed Product is covered by a Valid Claim or is covered by Orphan Drug Status in such jurisdiction – 5% of all Net Sales.

b) In the event the making, producing, manufacturing, using, marketing, selling, importing or exporting of such Licensed Product is not covered by a Valid Claim and not covered by Orphan Drug status in such jurisdiction – 3% of all Net Sales until the expiration of 15 years from the date of the First Commercial Sale of such Licensed Product in such jurisdiction.

NOTE 5 - CONSULTING AGREEMENTS

A. On July 8, 2004, the Company entered into two consulting agreements with Prof. Eldad Melamed and Dr. Daniel Offen (together, the "Consultants"), under which the Consultants provide the Company scientific and medical consulting services in consideration for a monthly payment of $6 each. In June 2012 an amendment was signed with Dr. Daniel Offen, according to which the company pays Daniel Offen a monthly payment of $6, out of which $3 in cash and $3 by grant of Company stock.

B. On January 16, 2013, the Company granted the Consultants an aggregate of 14,400 shares of Common Stock for their services from January 1, 2012 through December 31, 2012. Related compensation in the amount of $54 was recorded as research and development expense.

C. On November 13, 2013, the Company approved grants of an aggregate 30,000 shares of Common Stock to the Consultants, for services rendered during January 1, 2013 through September 30, 2013 (the “2013 Shares”).

15

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 5 - CONSULTING AGREEMENTS (Cont.):

D. On March 24, 2014, the Company approved grants of an aggregate 6,000 shares of Common Stock to the Consultants for services rendered in 2013.

E. On April 29, 2015 the Company approved grants of an aggregate 27,411 shares of Common Stock to the Consultants for services rendered in 2014. Related compensation in the amount of $108 was recorded as research and development expense.

NOTE 6 - SHORT TERM INVESTMENTS

Short term investments on June 30, 2015 include bank deposits bearing annual interest rates varying from 0.07% to 0.3%, with maturities of up to 4 and 5 months as of June 2015 and December 2014, respectively.

NOTE 7 - STOCK CAPITAL

A. The rights of Common Stock are as follows:

Holders of Common Stock have the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company and the right to receive dividends, if declared.

The Common Stock is publicly traded on the NASDAQ Capital Market under the symbol BCLI.

B. Issuance of shares, warrants and options:

1. Private placements and public offering:

(a) In July 2007, the Company entered into an investment agreement, that was amended in August 2009, according to which for an aggregate subscription price of up to $5,000, the Company issued 2,777,777 shares of Common Stock and a warrant to purchase 672,222 shares of Common Stock at an exercise price of $3 per share and a warrant to purchase 1,344,444 shares of common stock at an exercise price of $4.35 per share. The warrants may be exercised at any time and expire on November 5, 2013. In May 2012 the warrants were extended by additional 18 months, through May 5, 2015. In May 2015 the warrants were extended by additional 18 months, through November 5, 2017.

In January 2011, the Company and the investor signed an agreement to balance the remaining amount due to the investor, totaling $20, against the remaining balance of the investment and the Company issued the above shares and warrants.

In addition, the Company issued an aggregate of 83,333 shares of Common Stock to a related party as an introduction fee for the investment. As of the balance sheet date, no warrants have been exercised.

(b) In February 2010, the Company issued an aggregate 399,999 shares of Common Stock to three investors (133,333 to each investor) and warrants to purchase an aggregate of 199,998 shares of Common Stock (66,666 to each investor) with an exercise price of $7.50 per share for aggregate proceeds of $1,500 ($500 from each investor).

(c) On July 17, 2012, the Company raised a $5,700 gross proceeds through a public offering (“2012 Public Offering”) of its common stock. The Company issued a total of 1,321,265 shares of common stock., ($4.35 per share) and 990,949 warrants to purchase 0.75 shares of Common Stock for every share purchased in the Public Offering, at an exercise price of $4.35 per share. The Warrants are exercisable until the 30 month anniversary of the date of issuance.

16

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

1. Private placements and public offering: (Cont.):

After deducting closing costs and fees, the Company received net proceeds of approximately $4,900.

The Company paid to the Placement Agency, Maxim Group LLC (the “Placement Agent”), a cash fee and a corporate finance fee equal to 7% of the gross proceeds of the Public Offering. In addition, the Company issued to the Placement Agent a two year warrant to purchase up to 32,931 shares of Common Stock (equal to 3% of the number of shares sold in the Public Offering), with an exercise price equal to $5.22 (120% of the Public offering price). The Warrants are exercisable until the 30 month anniversary of the date of issuance. In addition, the Company issued to Leader Underwriters (1993) Ltd, warrants to purchase 15,517 shares of Common stock, at an exercise price of $4.35 per share. The warrants are exercisable until the 30 month anniversary of the date of issuance.

(d) On February 4, 2013, the Company issued 8,408 shares of Common Stock to an investor, according to a settlement agreement, for the correction of the conversion rate of a $200 convertible loan. The convertible loan was issued in 2006 and converted in 2010.

(e) On February 7, 2013, the Company issued 55,556 units to a private investor for total proceeds of $250. Each unit consisted of one share of Common Stock and a warrant to purchase one share of Common Stock at $7.5 per share exercisable for 32 months.

(f) On August 16, 2013, the Company raised $4,000 (gross) through a registered public offering (“2013 Public Offering”) of its common stock. The Company issued a total of 1,568,628 common stock, ($2.55 per share) and 1,176,471 warrants to purchase 0.75 shares of Common Stock for every share purchased in the Public Offering, at an exercise price of $3.75 per share. The Warrants are exercisable until the 36 month anniversary of the date of issuance. The Warrants also include, subject to certain exceptions, full ratchet anti-dilution protection in the event of the issuance of any common stock, securities convertible into common stock, or certain other issuances at a price below the then-current exercise price of the Warrants, which would result in an adjustment to the exercise price of the Warrants. In the event of a sale of the Company, each holder of Warrants has the right, exercisable at its option, to require the Company to purchase such holder’s Warrants at a price determined using a Black-Scholes option pricing model as described in the Warrants. After deducting closing costs and fees, the Company received net proceeds of approximately $3.3 million.

In accordance with the provisions of ASC 815 (formerly FAS 133) the proceeds related to the warrants at the amount of $829 were recorded to liabilities at the fair value of such warrants as of the date of issuance, and the proceeds related to common stocks of 2,496 were recorded to equity.

On April 25, 2014, the Company entered into agreements with holders of warrants originally issued in the Company’s August 16, 2013 public offering (the “2013 Warrants”) to exchange outstanding 2013 Warrants entitling the holders to purchase an aggregate of 777,471 shares of Company common stock, $0.00005 par value for an aggregate of 388,735 unregistered shares of Common Stock.

17

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

1. Private placements and public offering: (Cont.):

After the exchange, the 2013 Warrants were cancelled and of no further force and effect.

On May 27, 2014 the Company entered into agreements with certain holders of warrants originally issued in the Company’s August 16, 2013 public offering to repurchase outstanding 2013 Warrants entitling the holders to purchase an aggregate of 333,235 shares of Company common stock, for an aggregate of approximately $600,000. Each share of Common Stock issuable pursuant to the 2013 Warrants was repurchased for $1.80 cash payment by the Company per Warrant Share. Warrants participating in the Redemption were cancelled and of no further force and effect.

In May 2014, certain holders of 2013 Warrants which did not participate in the Redemption and whose 2013 Warrants will therefore remain outstanding after the Effective Date, have waived anti-dilution provisions of their 2013 Warrants.

In July 2014, the Company signed an amendment to certain holders of warrants originally issued in the Company’s August 16, 2013 public offering and did not participate in the Redemption, to adjust the exercise price of the warrants to $0.525 per share.

On January 6, 2015, the remaining 2013 Warrants that did not participate in the redemption and that did not provide a waiver of their anti-dilution rights, exercised their warrants. Therefore, the liability related to the 2013 Warrants has been cancelled.

(g) On June 19, 2014, the Company, pursuant to the June 13, 2014 securities purchase agreement, entered into with a group of investors, including several healthcare-focused funds, effected a private placement of the Company’s common stock, $0.00005 par value per share, and warrants to purchase Common Stock. The Company received gross proceeds of $10.5 million, resulting from the issuance and sale of 2.8 million shares of Common Stock at a price per share of $3.75, a 15% discount to the 30 day volume-weighted average price of $4.41. The Investors received warrants to purchase up to2.8 million shares of Common Stock at an exercise price of $5.22 per share. The Warrants became exercisable immediately upon closing of the private placement and have a term of three (3) years.

(h) Pursuant to a Warrant Exercise Agreement, dated January 8, 2015, holders of the Company warrants to purchase an aggregate of approximately 2.5 million shares of the Company’s Common Stock at an exercise price of $5.22 per share, issued in a private placement to accredited investors that was consummated on June 13, 2014, agreed to exercise their 2014 Warrants in full and the Company agreed to issue new warrants to the holders to purchase up to an aggregate of approximately 3.8 million unregistered shares of Common Stock at an exercise price of $6.50 per share. The Company received an aggregate of approximately $13.3 million in proceeds from the exercises of the 2014 Warrants. In connection with the Exercise Agreement, the Company agreed to pay to the Placement Agency a cash fee equal to 6.0% of the Exercise Proceeds, as well as fees and expenses of the Placement Agency of $20. In addition, the Company issued the Placement Agency a warrant to purchase 38,000 shares of Common Stock upon substantially the same terms as the New Warrants.

18

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

2. Share-based compensation to employees and to directors:

(a) Options to employees and directors:

On November 25, 2004, the Company's stockholders approved the 2004 Global Stock Option Plan and the Israeli Appendix thereto (which applies solely to participants who are residents of Israel) and on March 28, 2005, the Company's stockholders approved the 2005 U.S. Stock Option and Incentive Plan, and the reservation of 609,564 shares of Common Stock for issuance in the aggregate under these stock plans.

In June 2008, June 2011 and in June 2012, the Company's stockholders approved increases in the number of shares of common stock available for issuance under these stock option plans by 333,333, 333,333 and 600,000 shares, respectively

Each option granted under the plans is exercisable until the earlier of ten years from the date of grant of the option or the expiration dates of the respective option plans. The 2004 and 2005 options plans will expire on November 25, 2014 and March 28, 2015, respectively.

On August 14, 2014, the Company's stockholders approved the 2014 Global Share Option Plan and the Israeli Appendix thereto (which applies solely to participants who are residents of Israel) and the 2014 Stock Incentive Plan, and the reservation of 600,000 shares of Common Stock for issuance in the aggregate under these stock plans.

The exercise price of the options granted under the plans may not be less than the nominal value of the shares into which such options are exercised. Any options that are canceled or forfeited before expiration become available for future grants.

From 2005 through 2009, the Company granted its directors options to purchase 53,333 (in total) shares of Common Stock of the Company at an exercise price of $2.25 per share. The options are fully vested and will expire after 10 years.

On April 13, 2010, the Company, Abraham Israeli and Hadasit Medical Research Services and Development Ltd. (“Hadasit”) entered into an Agreement (as amended, the “Hadasit Agreement”) pursuant to which Prof. Israeli agreed, during the term of the Hadasit Agreement, to serve as (i) the Company’s Clinical Trials Advisor and (ii) a member of the Company’s Board of Directors. 

Accordingly, the Company granted to Prof. Israeli in each of April 2010, June 2011, April 2012 and April 2013, an option to purchase 11,111 shares of Common Stock at an exercise price equal to $0.00075 per share.

In addition, the Company granted Hadasit, in each of April 2010, June 2011, April 2012, and April 2013, a warrant to purchase 2,222 shares of Common Stock at an exercise price equal to $0.00075 per share.

19

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

2. Share-based compensation to employees and to directors: (Cont.):

(a) Options to employees and directors: (Cont.):

In addition, on April 13, 2014, pursuant to the Hadasit Agreement, and pursuant to the December 2013 letter from the Company to Prof. Israeli, the Company issued to Prof. Israeli, an option to purchase 20,000 shares of its Common Stock at an exercise price of $0.00075 per share.

On April 25, 2014 the Agreement among the Company, Prof. Abraham Israeli and Hadasit was terminated. As a result of the termination, Prof. Israeli and Hadasit will no longer receive annual grants to purchase shares of Common Stock, and any outstanding and unvested grants made pursuant to the Agreement ceased to vest, and the grants were valid until and exercisable only on or before October 25, 2014.

In October 2014, Prof Israeli exercised his option to purchase 44,444 shares of Common Stock of the Company. In October 2014, Hadasit exercised its warrants to purchase 8,889 shares of Common Stock of the Company.

On December 16, 2010, the Company granted to two of its directors an option to purchase 26,667 shares of Common Stock at an exercise price of $2.25 per share. The options are fully vested and are exercisable for a period of 10 years. The compensation related to the option, in the amount of $78, was recorded as general and administrative expense.

On August 1, 2012, the Company granted to three of its directors options to purchase an aggregate of 30,667 shares of Common Stock of the Company at $2.25 per share. The total compensation related to the option was $105, which is amortized over the vesting period as general and administrative expense.

On April 19, 2013, the Company granted to three of its directors options to purchase an aggregate of 30,667 shares of Common Stock of the Company at $2.25 per share. The total compensation expense related to the options was recorded as general and administrative expense.

On June 6, 2014, the Company entered into an employment agreement which sets forth the terms of COO employment. COO also was granted a stock option under the Company’s Amended and Restated 2004 Global Share Option Plan for the purchase of 33,333 shares of the Company’s common stock, which was fully vested and exercisable upon grant. The exercise price for the Initial Grant is $2.7 per share. The total related compensation, in the amount of $55 was recorded as general and administrative expense.

20

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

2. Share-based compensation to employees and to directors: (Cont.):

(a) Options to employees and directors: (Cont.):

On June 9, 2014, the Company hired the new CEO. CEO was granted a stock option for the purchase of 380,000 shares of the Company’s common stock, which shall vest and become exercisable as to 25% of the Shares on the first anniversary of the Grant Date and the remainder of the Shares shall vest and become exercisable in equal monthly installments on each of the 36 monthly anniversaries following the Initial Vesting Date.  The exercise price for the CEO Grant is $4.5 per share. The total related compensation, in the amount of $1,494 will be recorded as general and administrative expense.

On October 31, 2014, the Company granted to four of its directors options to purchase an aggregate of 70,666 shares of Common Stock of the Company at $0.75 per share. As of June 30, 2015 the compensation expense related to the options of $223 was recorded as general and administrative expense.

On June 1, 2015, the Company granted to its director fully vested options to purchase an aggregate of 6,667 shares of Common Stock of the Company at $0.75 per share. As of June 30, 2015 the compensation expense related to the options of $20 was recorded as general and administrative expense.

A summary of the Company's option activity related to options to employees and directors, and related information is as follows:

	For the six months ended  June 30, 2015
	Amount of options			Weighted average exercise price		Aggregate intrinsic value
				$		$
Outstanding at beginning of period		792,110			3.4545
Granted		6,667			0.7500
Exercised		-			-
Cancelled		(11,667	)		6.1071
Outstanding at end of period		787,110			3.3923		171,345
Vested and expected-to-vest at end of period		465,944			2.8055		374,858

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the fair market value of the Company’s shares on June 30, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2015.

21

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

2. Share-based compensation to employees and to directors: (Cont.):

(a) Options to employees and directors: (Cont.):

(b) Restricted shares to directors:

On August 22, 2011, the Company entered into an agreement with Chen Schor (the “Executive Director Agreement”) pursuant to which the Company granted to Mr. Schor 61,558 shares of restricted Common Stock of the Company.   The shares will vest over 3 years - 1/3 upon each anniversary of the Grant Date. In addition, the Company will pay $15 per quarter to Mr. Schor for his services as an Executive Board Member.

On April 19, 2013, the Company issued to two of its directors and four of its Advisory Board members a total of 50,667 restricted shares of Common Stock. The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant. Related compensation expense in the amount of $175 was recorded as general and administrative expense.

On August 15, 2014, the Company issued to two of its directors and four of its Advisory Board members a total of 50,667 restricted shares of Common Stock. The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant. Related compensation expense in the amount of $236 will be recorded as general and administrative expense

On May 3, 2015, the Company entered into an agreement with one of Company’s directors pursuant to which the Company granted to the director 60,000 shares of restricted Common Stock of the Company. The shares will vest in accordance with the following vesting schedule: (a) 20,000 Restricted Shares vest on August 22, 2015; (b) 20,000 Restricted Shares vest on August 22, 2016 and (c) 20,000 Restricted Shares vest on August 22, 2017, provided that the director remains a director of the Company on each such vesting date.

NOTE 7 -STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

3. Shares and warrants to investors and service providers:

The Company accounts for shares and warrant grants issued to non-employees using the guidance of ASC 505-50, "Equity-Based Payments to Non-Employees" (EITTF 96-18, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services"), whereby the fair value of such option and warrant grants is determined using a Black-Scholes options pricing model at the earlier of the date at which the non-employee's performance is completed or a performance commitment is reached.

22

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

3. Shares and warrants to investors and service providers: (Cont.):

(a) Warrants to investors and service providers and investors: (Cont.):

The fair value for the warrants to service providers was estimated on the measurement date determined using a Black-Scholes option pricing model, with the following weighted-average assumptions for the year ended December 31, 2010; weighted average volatility of 140%, risk free interest rates of 2.39%-3.14%, dividend yields of 0% and a weighted average life of the options of 5-5.5 and 1-9 years. There were no grants to service providers during 2013, 2014 and 2015 using Black-Scholes calculation.

Issuance date	Number of warrants issued		Exercised		Forfeited		Outstanding		Exercise Price $	Warrants exercisable		Exercisable through
Nov-Dec 2004		973,390		959,734		13,656		-	0.00075 - 0.15		-	-
Feb-Dec 2005		203,898		32,011		171,887		-	2.25 - 37.5		-	-
Feb-Dec 2006		112,424		48,513		31,911		32,000	0.075 – 22.5		32,000	Feb - May 2016
Mar-Nov 2007		180,220		-		66,887		113,333	2.25 - 7.05		113,333	Mar 2017 – Oct 2017
Nov 2008		6,667		-		-		6,667	2.25		6,667	Sep-18
Apr-Oct  2009		26,667		6,667		-		20,000	1.005 – 1.5		20,000	Apr 2019 – Oct 2019
Aug 2007- Jan 2011		2,016,667		-		-		2,016,667	3 - 4.35		2,016,667	Nov-17
Jan 2010		83,333		-		83,333		-	7.5		-	-
Feb 2010		8,333		8,333		-		-	0.15		-	-
Feb 2010		200,000		-		200,000		-	7.5		-	-
Feb 2010		100,000		-		100,000		-	0.015		-	-
Feb 2011		42,735		-		42,735		-	5.85		-	-
Feb 2011		427,167		63,122		364,044		-	4.2		-	-
Feb 2011		854,333		-		854,333		-	7.5		-	-
Jul 2012		32,931		-		32,931		-	5.22		-	-
Jul 2012		990,949		687,037		303,911		-	4.35		-	-
Feb 2013		55,556		-		-		55,556	7.5		55,556	Oct-15
April 2010-2014		12,889		8,889		4,000		-	0.00075		-	-
Aug 2013		1,147,471		-		1,110,706		36,764	3.75		36,764	Aug-16
Aug 2013		29,000		29,000		-		-	0.525		-	-
Jun 2014		2,800,000		2,546,667		-		253,333	5.22		253,333	Jun-17
Jun 2014		84,000		-		-		84,000	4.5		84,000	Jun-17
Jan 2015		3,858,201		-		-		3,858,201	6.5		3,858,201	Jun-18
		14,246,831		4,389,973		3,380,334		6,476,521			6,476,521

23

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

3. Shares and warrants to service providers: (Cont.):

(b) Shares:

On December 30, 2009, the Company issued to Ramot 74,667 shares of Common Stock (See Note 4).

On December 31, 2011, the Company issued to Hadasit warrants to purchase up to 100,000 restricted shares of Common Stock at an exercise price of $0.015 per share, exercisable for a period of 5 years.  The warrants shall vest over the course of the trials as follows: 33,333 upon enrollment of 1/3 of the patients; an additional 33,333 upon enrollment of all the patients and the final 33,333 upon completion of the study.

On January 16, 2013, the Company granted an aggregate of 14,400 shares of Common Stock of the Company to two consultants, for services rendered through December 31, 2012. Related compensation expense in the amount of $54 was recorded as research and development expense.

On February 4, 2013, the Company issued 8,408 shares of Common Stock to an investor, according to a settlement agreement, for the correction of the conversion rate of a $200 convertible loan. The convertible loan was issued in 2006 and converted in 2010.

On March 11, 2013, the Company granted to its legal advisor 12,913 shares of Common Stock for 2013 legal services. The related compensation expense in the amount of $44.5 was recorded as general and administrative expense.

On November 13, 2013, the Company approved a grant of 30,000 shares of Common Stock to the Consultants, for services rendered during January 1, 2013 through September 30, 2013 (the “2013 Shares”). On March 24, 2014, the Company approved grants of an aggregate of 6,000 shares of Common Stock to the Consultants for services rendered in 2014, and issued such shares together with the 2013 Shares.

On March 11, 2013, the Company granted to two of its service providers an aggregate of 26,667 shares of Common Stock. The shares are public relations services. The related compensation expense in the amount of $92 was recorded as general and administrative expense.

On July 28, 2014, the Company granted to its legal advisor 10,752 shares of Common Stock for 2014 legal services. The related compensation expense in the amount of $50 was recorded as general and administrative expense.

24

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

U.S. dollars in thousands

(Except share data and exercise prices)

Notes to Consolidated Financial Statements

NOTE 7 - STOCK CAPITAL (Cont.):

B. Issuance of shares, warrants and options: (Cont.):

3. Shares and warrants to service providers: (Cont.):

(b) Shares:

The total stock-based compensation expense, related to shares, options and warrants granted to employees, directors and service providers, was comprised, at each period, as follows:

	Six months ended				Three months ended
	June 30,				June 30,
	2015		2014		2015		2014
	Unaudited				Unaudited
Research and development		14		144		6		16
General and administrative		654		264		315		160
Total stock-based compensation expense		668		408		321		176

NOTE 8 - SUBSEQUENT EVENTS

A. The Company appointed Yoram Bibring as its Chief Financial Officer and Treasurer, effective July 30, 2015.   On July 30, 2015, the Company and Yoram Bibring entered into an employment agreement which sets forth the terms of Mr. Bibring’s employment (the “Employment Agreement”). Pursuant to the Employment Agreement, Yoram Bibring will be paid a salary at the annual rate of $225,000.  Mr. Bibring will also receive other benefits that are generally made available to the Company’s employees.  The Employment Agreement provides that if within twelve months after a Change of Control (as defined in the Employment Agreement) Mr. Bibring’s employment is terminated for any reason other than for cause, disability or death, or by Mr. Bibring due to a Change of Control Termination (as defined in the Employment Agreement), the Company shall pay Mr. Bibring a payment equal to his target bonus compensation for the year in which the Change of Control occurs, and his base salary for twelve months following the date of such termination.

Mr. Bibring also was granted a stock option (the “Initial Grant”) on July 30, 2015 (the “Grant Date”) for the purchase of 165,000 shares of the Company’s common stock (the “Shares”) at an exercise price equal to $3.17 per share. Subject to Mr. Bibring’s continued service with the Company through the applicable vesting dates, the Initial Grant will vest and become exercisable as to 25% of the Shares on the first anniversary of the Grant Date (the “Initial Vesting Date”) and the remainder of the Shares will vest and become exercisable in equal monthly installments on each of the 36 monthly anniversaries following the Initial Vesting Date, and shall vest and become exercisable in full immediately prior to a Change of Control (as defined in the Employment Agreement).  The Initial Grant was issued outside of the Company’s 2014 Stock Incentive Plan as an employment inducement grant.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report contains numerous statements, descriptions, forecasts and projections, regarding Brainstorm Cell Therapeutics Inc. and its potential future business operations and performance, including statements regarding the market potential for treatment of neurodegenerative disorders such as ALS, the sufficiency of our existing capital resources for continuing operations in 2015, the safety and clinical effectiveness of our NurOwn® technology, our clinical trials of NurOwn® and its related clinical development, and our ability to develop collaborations and partnerships to support our business plan. These statements, descriptions, forecasts and projections constitute “forward-looking statements,” and as such involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance and achievements to be materially different from any results, levels of activity, performance and achievements expressed or implied by any such “forward-looking statements.” Some of these are described under “Risk Factors” in this report and in our annual report on Form 10-K for the fiscal year ended December 31, 2014. In some cases you can identify such “forward-looking statements” by the use of words like “may,” “will,” “should,” “could,” “expects,” “hopes,” “anticipates,” “believes,” “intends,” “plans,” “estimates,” “predicts,” “likely,” “potential,” or “continue” or the negative of any of these terms or similar words. These “forward-looking statements” are based on certain assumptions that we have made as of the date hereof. To the extent these assumptions are not valid, the associated “forward-looking statements” and projections will not be correct. Although we believe that the expectations reflected in these “forward-looking statements” are reasonable, we cannot guarantee any future results, levels of activity, performance or achievements. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which we base our expectations may change prior to the end of each quarter or the year. Although these expectations may change, we may not inform you if they do and we undertake no obligation to do so, except as required by applicable securities laws and regulations. We caution investors that our business and financial performance are subject to substantial risks and uncertainties. In evaluating our business, prospective investors should carefully consider the information set forth under the caption “Risk Factors” in addition to the other information set forth herein and elsewhere in our other public filings with the Securities and Exchange Commission.

Company Overview  

We are a biotechnology company developing novel adult stem cell therapies for debilitating neurodegenerative disorders such as Amyotrophic Lateral Sclerosis (“ALS”, also known as Lou Gehrig’s disease), Multiple Sclerosis (“MS”), and Parkinson’s disease (“PD”) among others. These diseases for the most part have no or limited treatment options and as such represent unmet medical needs. We believe that NurOwn®, our proprietary process for the propagation of Mesenchymal Stem Cells (“MSC”) and their differentiation into neurotrophic factor-(“NTF”) secreting cells (“MSC-NTF”), and their transplantation at, or near, the site of damage, offers the hope of more effectively treating neurodegenerative diseases. Our core technology was developed in collaboration with Prof. Eldad Melamed, former head of Neurology of the Rabin Medical Center and member of the Scientific Committee of the Michael J. Fox Foundation for Parkinson's Research and Prof. Daniel Offen of the Felsenstein Medical Research Center of Tel Aviv University. Our wholly-owned Israeli subsidiary, Brainstorm Cell Therapeutics Ltd. (the “Israeli Subsidiary”), holds rights to commercialize the technology, through a licensing agreement with Ramot at Tel Aviv University Ltd. (“Ramot”), the technology transfer company of Tel Aviv University, Israel. We currently employ 16 employees in Israel and 3 in the United States.

Our Proprietary Technology

Our NurOwn® technology is based on a novel differentiation protocol which induces differentiation of the bone marrow-derived mesenchymal stem cells into neuron-supporting cells, MSC-NTF cells, capable of releasing several neurotrophic factors, including Glial-derived neurotrophic factor (“GDNF”), Brain-derived neurotrophic factor (“BDNF”), Vascular endothelial growth factor (“VEGF”) and Hepatocyte growth factor (“HGF”) which are critical for the growth, survival and differentiation of developing neurons. GDNF is one of the most potent survival factors known for peripheral neurons. VEGF and HGF have been reported to have important neuro-protective effects in ALS.

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Our approach to treatment of neurodegenerative diseases with autologous adult stem cells includes a multi-step process beginning with harvesting of undifferentiated stem cells from the patient's own bone marrow, and concluding with transplantation of differentiated, neurotrophic factor-secreting mesenchymal stem cells (MSC-NTF) into the same patient – intrathecally and/or intramuscularly. Intrathecal (injection into the cerebrospinal fluid) transplantation consists of injection by a standard lumbar puncture; there is no need for a laminectomy, which is an invasive, orthopedic spine operation to remove a portion of the vertebral bone, as required by technologies in which cells are implanted directly into the spinal cord. Intramuscular (injection directly into muscle) transplantation is performed via a standard injection procedure as well.

Our proprietary, production process for induction of differentiation of human bone marrow derived mesenchymal stem cells into differentiated cells that produce NTF (MSC-NTF) for clinical use is conducted in full compliance with current Good Manufacturing Practice (“cGMP”).

Our proprietary technology is licensed to and developed by our Israeli Subsidiary.

The NurOwn® Transplantation Process

· Bone marrow aspiration from patient;

· Isolation and propagation of the mesenchymal stem cells;

· Differentiation of the mesenchymal stem cells into neurotrophic-factor secreting (MSC-NTF) cells; and

· Autologous transplantation into the patient’s spinal cord and/or muscle tissue.

Differentiation before Transplantation

The ability to induce differentiation of autologous adult mesenchymal stem cells into MSC-NTF cells before transplantation is unique to NurOwn®, making it the first-of-its-kind for treating neurodegenerative diseases.

The specialized cells secrete neurotrophic factors that may lead to:

· Protection of existing motor neurons;

· Promotion of motor neuron growth; and

· Re-establishment of nerve-muscle interaction.

Autologous (Self-transplantation)

The NurOwn® approach is autologous, or self-transplanted, using the patient’s own stem cells. In autologous transplantation there is no risk of rejection and no need for treatment with immunosuppressive agents, which can cause severe and/or long-term side effects. In addition, the use of adult stem cells is free of controversy associated with the use of embryonic stem cells in some countries.

The ALS Program

NurOwn® is in clinical development for the treatment of ALS. It has been granted Fast Track designation by the U.S. Food and Drug Administration (the “FDA”) for this indication, and has been granted Orphan Status in both the United States and in Europe.

We have completed two clinical trials of NurOwn® in patients with ALS at Hadassah Medical Center (“Hadassah”) in collaboration with Professor Dimitrios Karussis, who served as the principal investigator on these studies. The first study, a phase 1/2 safety and efficacy study of NurOwn® administered by either intramuscular or intrathecal injection, was initiated in June 2011 after receiving approval from the Israeli Ministry of Health (“MoH”). In March 2013, Professor Karussis presented data from this trial at the American Academy of Neurology Annual Meeting. The trial results demonstrated the safety of NurOwn® as well as signs of efficacy on both the ALS Functional Rating Score (“ALSFRS-R”) and Forced Vital Capacity (“FVC”) in the intrathecal cohort.

27

In January 2013, we launched our second study, a phase 2a dose-escalating trial, after approval of the Israeli MoH, also conducted at Hadassah in collaboration with Prof. Karussis. Prof. Karussis presented preliminary findings from this trial at the 24^th International Symposium on ALS/MND in Milan, Italy in December 2013, and at the Joint Congress of European Neurology in Istanbul, Turkey in June 2014. On January 5, 2015, the Company presented final top line data from this study in a press release and investor conference call, and the full results were presented in April 2015 at the American Academy of Neurology annual meeting, in Washington D.C. The results of this study confirmed the safety profile observed in the earlier phase 1/2 trial, with the vast majority of adverse events being low-grade. There were two deaths and two serious adverse events, all of which were deemed by the investigators to be unrelated to treatment. In this study, we observed a large and clinically meaningful benefit after treatment with NurOwn®, as indicated by a reduction in the rate of disease progression, assessed by the ALSFRS-R and FVC scores. We also conducted a piecewise linear regression analysis of all subjects who received intrathecal (“IT”) administration in the Phase 2a study and in the prior Phase 1/2 study. For the combined per protocol group, the rate of decline in ALSFRS-R improved from -1.2 points per month pre-treatment to -0.6 points per month post treatment (two-sided p=0.052), and the rate of decline in FVC improved from -5.1% per month pre-treatment to -1.2% per month post-treatment (two-sided p=0.036). 

In April 2014, the FDA approved commencement of the Company’s randomized, double-blind, placebo controlled multi-center Phase 2 clinical trial of NurOwn® in ALS patients. On June 6, 2014, the Company announced the enrollment of the first subject at Massachusetts General Hospital in Boston, Massachusetts. The trial is also being conducted at the University of Massachusetts Memorial Hospital in Worcester, Massachusetts and the Mayo Clinic in Rochester, Minnesota. This study is designed to enroll 48 patients randomized in a 3:1 ratio to receive NurOwn® or placebo. In February 2015, the Company announced that the Data Safety Monitoring Board (“DSMB”) for the multi-center U.S. Phase 2 clinical trial reviewed the safety data collected through a cutoff date in January 2015, and did not find any lab abnormalities, adverse events or significant protocol deviations that would be cause for concern and therefore approved continuation of the trial as planned. On August 10, 2015, we announced that all 48 subjects had been enrolled into the study. Efficacy results from this trial are not expected until 2016.

Future development of NurOwn® in ALS will require additional clinical trials, including the administration of repeated doses to ALS patients enrolled in those trials.  The design and timing of subsequent clinical trials in ALS is currently under review by the Company. 

Future Development Plans

In addition to its active clinical program in ALS, the Company is reviewing the potential clinical development of NurOwn® in other neurodegenerative disorders, such as progressive multiple sclerosis, Parkinson’s disease, Huntington’s disease, and other areas. The Company is also conducting preclinical research in additional neurologic disease areas, including autism and stroke.

In addition, the Company is engaged in a number of research initiatives to improve the scale and efficiency of NurOwn® production and to improve the stability of NurOwn®, which is currently produced in clean room facilities close to the clinical trial sites, where the cells are administered to patients. In January 2013, we announced the development of a proprietary method for cryopreservation, or freezing, of cells, which will enable long-term storage, and production of repeat patient doses of NurOwn® without the need for additional bone marrow aspirations. We believe that cryopreservation will enable us to create a personalized NurOwn® stem cell bank for each patient, for ongoing, repeated treatments. We are planning to use cryopreserved cells in a future clinical trial that will involve administration of multiple doses of NurOwn®.

We are also engaged in collaboration with Octane Biotech Inc. (“Octane”), a Canadian firm that focuses on culture systems for cell and tissue therapy, to develop a NurOwn® bioreactor. On June 27, 2014, the Company announced that this collaboration has successfully developed a sophisticated Alpha prototype of the NurOwn® Bioreactor, utilizing a customized disposable cartridge that is dedicated to the intricacies of the Company's NurOwn® process.  Based on this first working prototype, the Company and Octane are advancing to the next stage of development with a goal of eventually qualifying a bioreactor for full clinical use.

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Corporate Information

We are incorporated under the laws of the State of Delaware. Our principal executive offices are located at 3 University Plaza Drive, Suite 320, Hackensack, NJ 07601, and our telephone number is (201) 488-0460. We maintain an Internet website at http://www.brainstorm-cell.com. The information on our website is not incorporated into this Quarterly Report on Form 10-Q.

Results of Operations

For the period from inception (September 22, 2000) until June 30, 2015, the Company has not earned any revenues from operations. The Company does not expect to earn revenues from operations until 2018. In addition, the Company has incurred operating costs and other expenses of approximately $2,363,000 during the three months ended June 30, 2015.

Research and Development, net:

Research and development expenses, net for the three months ended June 30, 2015 and 2014 were $1,375,000 and $877,000, respectively. In addition, the Company’s grant from The Office of the Chief Scientist increased by $5,000 to $304,000 for the three months ended June 30, 2015 from $299,000 for the three months ended June 30, 2014.

The increase in research and development expenses for the three months ended June 30, 2015 is primarily due to (i) an increase of $584,000 to $1,179,000 for the three months ended June 30, 2015, from $595,000 for the three months ended June 30, 2014 for costs of activities related to commencement of the U.S. Clinical Trial including fees to PRC Clinical and regulatory consultants, fees to DFCI and Mayo Clinic, and on-site technology transfer training to DFCI cleanroom personnel and (ii) an increase of $22,000 for consultants, travel and travel expenses from $33,000 in the three months ended June 30, 2014 to $55,000 in the three months ended June 30, 2015. This increase was offset by: (i) a decrease of $63,000 in costs associated with the clinical trials, conducted in accordance with GMP in Hadassah, for an aggregate amount of $172,000 for the three months ended June 30, 2015, compared to $235,000 for the three months ended June 30, 2014; (ii) a decrease of $40,000 in payroll costs, stock-based compensation and other and (iii) an increase of $5,000 in OCS participation from $299,000 in the three months ended June 30, 2014 to $304,000 in the three months ended June 30, 2015.

General and Administrative:

General and administrative expenses for the three months ended June 30, 2015 and 2014 were $988,000 and $417,000, respectively. The increase in general and administrative expenses for the three month period ended June 30, 2015 from the three month period ended June 30, 2014 is primarily due to: (i) an increase of $154,000 in stock-based compensation expenses, from $160,000 in the three months ended June 30, 2014 to $314,000 in the three months ended June 30, 2015; (ii) an increase of $123,000 in payroll costs due to recruitment of a CEO, COO and office manager during 2014 and 2015; (iii) an increase of $294,000 for rent, travel, PR, stock costs, consultants and others from $143,000 in the three months ended June 30, 2014 to $437,000 in the three months ended June 30, 2015.

Financial Expenses:

Financial income for the three months ended June 30, 2015 was $98,000, compared to a financial expense of $690,000 for the three months ended June 30, 2014. The financial income for the three months ended June 30, 2015 is mainly due to conversion exchange rates and bank charges that were offset by an interest receivable from a bank deposit.

The financial expense for the three months ended June 30, 2014 is mainly due to conversion exchange rates and bank charges that were offset by an interest receivable from a bank deposit and a financial expense that is due to revaluation of certain warrants issued to investors in the August 2013 public offering ("2013 Warrants"). Certain 2013 Warrants contain anti-dilution provisions. Under generally accepted accounting principles, the anti-dilution provisions require those 2013 Warrants to be valued and classified as a warrant liability on the balance sheet, resulting in a reduction of stockholders’ equity. In 2014, we entered into agreements with certain holders of 2013 Warrants to exchange or redeem their 2013 Warrants. We also entered into agreements with certain holders of 2013 Warrants to waive their anti-dilution rights. On January 6, 2015, the remaining holders of 2013 Warrants, that did not participate in the exchange or redemption and that did not provide a waiver of their anti-dilution rights, exercised their warrants. Therefore, the liability related to the 2013 Warrants has been cancelled.

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Net Loss:

Net loss for the three months ended on June 30, 2015 was $2,265,000, as compared to a net loss of $1,984,000 for the three months ended June 30, 2014. Net loss per share for the three months ended June 30, 2015 and 2014 was $0.12 and $0.16, respectively.

The weighted average number of shares of Common Stock used in computing basic and diluted net loss per share for the three months ended June 30, 2015 was 18,450,464, compared to 12,416,892 for the three months ended June 30, 2014.

The increase in the weighted average number of shares of Common Stock used in computing basic for the three months ended June 30, 2015 was due to (i) the issuance of shares of Common Stock in a private placement in June 2014, as described in more detail below, (ii) the exercise of warrants, as described in more detail below, (iii) the exercise of options, and (iv) the issuance of shares to service providers. 

Liquidity and Capital Resources

The Company has financed its operations since inception primarily through public and private sales of its Common Stock and warrants and the issuance of convertible promissory notes. At June 30, 2015, the Company had $20,061,000 in total current assets and $2,526,000 in total current liabilities.

Net cash used in operating activities was $1,650,000 for the three months ended June 30, 2015. Cash used for operating activities was primarily attributed to cost of clinical trials, rent of clean rooms and materials for clinical trials, payroll costs, rent, outside legal fee expenses and public relations expenses. Net cash used in investing activities was $555,000 for the three months ended June 30, 2015. Net cash provided by financing activities was $12,000 for the three months ended June 30, 2015 and is primarily attributable to the exercise of 2014 Warrants, as discussed below.

On June 13, 2014, we entered into a securities purchase agreement with a group of investors, including several healthcare-focused funds (the “Investors”) to effect a private placement (the “2014 Private Placement”) of the Company’s Common Stock and warrants to purchase Common Stock. On June 19, 2014, upon the closing of the 2014 Private Placement, we received gross proceeds of $10.5 million, resulting from the issuance and sale of 2.8 million shares of Common Stock at a price per share of $3.75, a 15% discount to the 30 day volume-weighted average price of $4.41. The Investors also received warrants to purchase up to 2.8 million shares of Common Stock at an exercise price of $5.22 per share (the “2014 Warrants”). The 2014 Warrants were exercisable immediately upon closing of the 2014 Private Placement and have a term of three (3) years.

On January 8, 2015, the Company signed an agreement according to which the Company issued 2.5 million shares of Common Stock, pursuant to the exercise of the 2014 Warrants for consideration of $13.3 million dollars. In addition, the Company granted new warrants to the warrant holders to purchase up to an aggregate of approximately 3.8 million unregistered shares of Common Stock at an exercise price of $6.50.

Maxim Group LLC (“Maxim”) acted as solicitation agent for the exercise of the 2014 Warrants on January 8, 2015, for a cash fee equal to 6.0% of the exercise proceeds, as well as fees and expenses of Maxim of $20,000. In addition, the Company issued Maxim a warrant to purchase up to approximately 38,000 shares of Common Stock (equal to 1.5% of the exercised 2014 Warrants) upon substantially the same terms as the new warrants.

On June 4, 2015 we filed a shelf registration statement, effective June 10, 2015, relating to common stock, warrants and units that we may sell from time to time in one or more offerings, up to a total dollar amount of $100,000,000. We have not filed any supplemental prospectus defining particular terms of securities to be offered under the shelf registration statement.

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Our material cash needs for the next 12 months will include (i) costs of the clinical trial in the U.S., (ii) employee salaries, (iii) payments expected for the upcoming multi-dose clinical trial, (iv) payments to Hadassah for rent and operation of the GMP facilities, and (v) fees to our consultants and legal advisors, patents, and fees for facilities to be used in our research and development.

Future operations are expected to be highly capital intensive and will require substantial capital raisings. We expect our current cash position will allow us to meet our obligations in the upcoming 12 months.

If we are not able to raise substantial additional capital, we may not be able to continue to function as a going concern and may have to cease operations or the Company will reduce its costs, including curtailing its current plan to pursue larger clinical trials in ALS and move new indications into clinical testing. We will be required to raise a substantial amount of capital in the future in order to reach profitability and to complete the commercialization of our products. Our ability to fund these future capital requirements will depend on many factors, including the following:

· our ability to obtain funding from third parties, including any future collaborative partners;

· the scope, rate of progress and cost of our clinical trials and other research and development programs;

· the time and costs required to gain regulatory approvals;

· the terms and timing of any collaborative, licensing and other arrangements that we may establish;

· the costs of filing, prosecuting, defending and enforcing patents, patent applications, patent claims, trademarks and other intellectual property rights;

· the effect of competition and market developments; and

· future pre-clinical and clinical trial results.

Critical Accounting Policies 

Our discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported revenue and expenses during the reporting periods. We continually evaluate our judgments, estimates and assumptions. We base our estimates on the terms of underlying agreements, our expected course of development, historical experience and other factors we believe are reasonable based on the circumstances, the results of which form our management’s basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

There were no significant changes to our critical accounting policies during the quarter ended June 30, 2015. For information about critical accounting policies, see the discussion of critical accounting policies in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Off Balance Sheet Arrangements

We have no off balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Equity Grant

On June 1, 2015 pursuant to the Company’s First Amendment to the Second Amended and Restated Director Compensation Plan, we granted a stock option to Irit Arbel, the Company’s Chair of the Board of Directors, to purchase up to 6,667 shares of Common Stock at a purchase price of $0.75 per share. The option was fully vested and exercisable on the date of grant.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

This information has been omitted as the Company qualifies as a smaller reporting company.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures 

As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, as of the end of the period covered by this report, to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that the information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes In Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during the quarter ended June 30, 2015 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become involved in litigation relating to claims arising out of operations in the normal course of business, which we consider routine and incidental to our business. We currently are not a party to any material legal proceedings, the adverse outcome of which, in management’s opinion, would have a material adverse effect on our business, results of operation or financial condition.

Item 1A. Risk Factors.

There have not been any material changes from the risk factors previously disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 5. Other Information.

During the quarter ended June 30, 2015, we made no material changes to the procedures by which stockholders may recommend nominees to our Board of Directors, as described in our most recent proxy statement.

Item 6. Exhibits.

The Exhibits listed in the Exhibit Index immediately preceding such Exhibits are filed with or incorporated by reference in this report.

32

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BRAINSTORM CELL THERAPEUTICS INC.
August 13, 2015	By:	/s/ Yoram Bibring
		Name: Yoram Bibring Title: Chief Financial Officer (Principal Financial Officer)

33

EXHIBIT INDEX

Exhibit Number	Description
31.1*	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1‡	Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2‡	Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

‡ Furnished herewith

34

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

I, Dr. Tony Fiorino, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brainstorm Cell Therapeutics Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 13, 2015	/s/ Dr. Tony Fiorino
	Name: Dr. Tony Fiorino
	Title: Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

I, Yoram Bibring, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brainstorm Cell Therapeutics Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 13, 2015	/s/ Yoram Bibring
	Name: Yoram Bibring
	Title: Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

In connection with the accompanying Quarterly Report on Form 10-Q of Brainstorm Cell Therapeutics Inc. for the period ended June 30, 2015, the undersigned hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1) the Quarterly Report on Form 10-Q for the period ended June 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Quarterly Report on Form 10-Q for the period ended June 30, 2015 fairly presents, in all material respects, the financial condition and results of operations.

August 13, 2015	/s/ Dr. Tony Fiorino
	Name: Dr. Tony Fiorino
	Title: Chief Executive Officer (Principal Executive Officer)

The foregoing certification is not deemed filed with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), and is not to be incorporated by reference into any filing of Brainstorm Cell Therapeutics Inc. under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing. 

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

In connection with the accompanying Quarterly Report on Form 10-Q of Brainstorm Cell Therapeutics Inc. for the period ended June 30, 2015, the undersigned hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1) the Quarterly Report on Form 10-Q for the period ended June 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Quarterly Report on Form 10-Q for the period ended June 30, 2015 fairly presents, in all material respects, the financial condition and results of operations.

August 13, 2015	/s/ Yoram Bibring
	Name: Yoram Bibring
	Title: Chief Financial Officer (Principal Financial Officer)

The foregoing certification is not deemed filed with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), and is not to be incorporated by reference into any filing of Brainstorm Cell Therapeutics Inc. under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing. 

XML

UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

NOTE 3  - UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements have been prepared in a condensed format and include the consolidated financial operations of the Company and its wholly-owned subsidiaries as of June 30, 2015 and for the six months then ended, in accordance with accounting principles generally accepted in the United States relating to the preparation of financial statements for interim periods. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015, are not necessarily indicative of the results that may be expected for the year ended December 31, 2015.

XML

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2  - SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2014 are applied consistently in these financial statements.

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 1,301	$ 4,251
Short-term deposit (Note 6)	18,394	4,290
Account receivable	252	1,005
Prepaid expenses	114	32
Total current assets	20,061	9,578
Long-Term Assets:
Prepaid expenses	20	20
Total long-term investments	20	20
Property and Equipment, Net	282	313
Total assets	20,363	9,911
Current Liabilities:
Trade payables	755	1,542
Accrued expenses	1,505	1,347
Other accounts payable	266	224
Total current liabilities	2,526	3,113
Long-Term Liabilities:
Warrants issued to investors	0	123
Total long-term liabilities	0	123
Total liabilities	2,526	3,236
Stockholders' Equity:
Stock capital: (Note 7) Common stock of $0.00005 par value - Authorized: 800,000,000 shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 18,480,957 and 15,281,497shares at June 30, 2015 and December 31, 2014 respectively.	13	11
Additional paid-in-capital	83,978	68,317
Accumulated deficit	(66,154)	(61,653)
Total stockholders' equity	17,837	6,675
Total liabilities and stockholders' equity	$ 20,363	$ 9,911

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CONSOLIDATED STATEMENTS OF CASH FLOWS - Class of Stock [Domain] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (2,265)	$ (1,984)	$ (4,501)	$ (4,095)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of deferred charges	24	25	47	50
Expenses related to shares and options granted to service providers	108	0	108	110
Amortization of deferred stock-based compensation related to options granted to employees and directors	321	176	668	298
Decrease (increase) in accounts receivable and prepaid expenses	362	(53)	671	64
Increase (decrease) in trade payables	(167)	431	(787)	529
Increase (decrease) in other accounts payable and accrued expenses	(33)	(256)	200	(79)
Revaluation of warrants	0	691	7	1,762
Total net cash used in operating activities	(1,650)	(970)	(3,587)	(1,361)
Cash flows from investing activities:
Purchase of property and equipment	(16)	0	(16)	(94)
Changes in short-term deposit	539	0	(14,104)	0
Investment in lease deposit	0	(2)	0	7
Total net cash used in investing activities	(555)	(2)	(14,120)	(87)
Cash flows from financing activities:
Proceeds from issuances of common stock through equity warrants and options exercises	0	215	2,348	215
Proceeds from issuance of Common stock, net	0	9,658	0	9,658
Proceeds from equity offering through issuances of equity warrants and common stock through the exercise of previously issued equity warrants	12	0	12,409	0
Redemption of warrants in cash	0	(600)	0	(600)
Total net cash provided by financing activities	12	9,273	14,757	9,273
Increase (decrease) in cash and cash equivalents	(2,193)	8,301	(2,950)	7,825
Cash and cash equivalents at the beginning of the period	3,494	3,027	4,251	3,503
Cash and cash equivalents at end of the period	1,301	11,328	1,301	11,328
Non-cash financing activities:
Stock issued for warrants exchange	0	1,633	0	1,633
Warrants liability classified as equity	0	42	130	42
Total non-cash financing activities	$ 0	$ 1,675	$ 130	$ 1,675

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STOCK CAPITAL (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 321	$ 176	$ 668	$ 408
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6	16	14	144
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 315	$ 160	$ 654	$ 264

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SUBSEQUENT EVENTS (Details Textual) - Jun. 30, 2015 - Chief Financial Officer [Member] - Equity Component [Domain] - Option Indexed to Issuer's Equity, Type [Domain] - USD ($)	Total
Subsequent Event [Line Items]
Share Price	$ 3.17
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross	165,000
Officers' Compensation	$ 225,000

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GENERAL

6 Months Ended

Jun. 30, 2015

General and Going Concern Disclosure [Abstract]

Business Description and Basis of Presentation [Text Block]

NOTE 1  - GENERAL

A. Brainstorm Cell Therapeutics Inc. (formerly: Golden Hand Resources Inc. - the "Company") was incorporated in the State of Washington on September 22, 2000.

B. On July 8, 2004, the Company entered into a licensing agreement with Ramot of Tel Aviv University Ltd. ("Ramot"), to acquire certain stem cell technology (see Note 4). Subsequent to this agreement, the Company decided to focus on the development of novel cell therapies for neurodegenerative diseases based on the acquired technology and research to be conducted and funded by the Company.

Following the licensing agreement dated July 8, 2004, the management of the Company decided to abandon all old activities related to the sale of the digital data recorder product

C. On October 25, 2004, the Company formed a wholly-owned subsidiary in Israel, Brainstorm Cell Therapeutics Ltd. ("BCT").

D. On November 18, 2004, the Company changed its name from Golden Hand Resources Inc. to Brainstorm Cell Therapeutics Inc. to better reflect its new line of business in the development of novel cell therapies for neurodegenerative diseases. BCT, as defined above, owns all operational property and equipment.

The Common Stock is publicly traded on the NASDAQ Capital Market. (See Note 1(W)).

E. In October 2010, the Israeli Ministry of Health (“MOH”) granted clearance for a Phase I/II clinical trial using the Company’s autologous NurOwn stem cell therapy in patients with amyotrophic lateral sclerosis (“ALS”), subject to some additional process specifications as well as completion of the sterility validation study for tests performed.

On February 23, 2011, the Company submitted, to the MOH, all the required documents. Following approval of the MOH, a Phase I/II clinical study for ALS patients using the Company’s autologous NurOwn stem cell therapy (the “Clinical Trial”) was initiated in June 2011.

F. In February 2011, the U.S. Food and Drug Administration (“FDA”) granted orphan drug designation to the Company’s NurOwn autologous adult stem cell product for the treatment of ALS.

G. On February 19, 2013, Brainstorm Ltd established a wholly-owned subsidiaries, Brainstorm Cell Therapeutics UK Ltd. (“Brainstorm UK”). Brainstorm UK acts on behalf of the parent Company in the EU.

H. On February 21, 2013, Brainstorm UK filed a request for Orphan Medicinal Product Designation by the European Medicine Agency (EMA) for its Autologous Bone Marrow derived Mesenchyme Stromal cells Secreting Neurotropic factors (MSC-NTF, NurOwn). On July 17, 2013, the European Commission granted Orphan Drug Designation to the Company’s NurOwn autologous adult stem cell product for the treatment of ALS.

I. On March 14, 2013, the Company signed a definitive agreement with the Mayo Clinic in Rochester, Minnesota to conduct its Phase II clinical trial of NurOwn™ in amyotrophic lateral sclerosis (ALS), pending FDA approval. In addition, Mayo's Human Cell Therapy Laboratory will manufacture the NurOwn cells for their clinical trial participants.

J. Effective April 3, 2013, the Company entered into an agreement with Dana-Farber Cancer Institute (“Dana-Farber”) to provide cGMP-compliant clean room facilities for production of the Company’s NurOwn™ stem cell candidate during its Phase II ALS trial in the United States. The Company’s Phase II trial, is conducted at Massachusetts General Hospital (“MGH”), the University of Massachusetts (“UMass”) Hospital and the Mayo Clinic. The Connell and O'Reilly Cell Manipulation Core Facility at Dana-Farber will produce NurOwn for the MGH and UMass Hospital clinical sites.

K. On September 27, 2013, the Company announced that it recently completed treatment of the 12 patients in its ALS Phase IIa dose-escalating clinical trial with the Company’s NurOwn™ technology. The Company was informed that one patient in the study expired due to a medical condition unrelated to the Clinical Trial.

The Clinical Trial is being performed at Hadassah Medical Center in Jerusalem, Israel, under the direction of Prof. Dimitrios Karussis, M.D., Ph.D., head of Hadassah's Multiple Sclerosis Center and a member of the International Steering Committees for Bone Marrow and Mesenchymal Stem Cells Transplantation in Multiple Sclerosis (MS). The study is designed to establish the safety and preliminary efficacy of NurOwn at increasing dosages.

L. On December 4, 2013, a Notice of Intention to Grant from the European Patent Office (EPO) was issued for the Company's patent application entitled "Isolated Cells and Populations Comprising Same for the Treatment of CNS Diseases" (European serial number EP06766101.7) . This patent relates to the production method for the company's proprietary stem cells induced to secrete large quantities of neurotrophic factors for the treatment of neurodegenerative diseases.

M. On February 11, 2014, a Notice of Allowance was issued from the U.S. Patent Office for the same patent application as above, U.S. serial number 11/727,583.

N. On March 4, 2014, a Notice of Allowance was issued from the U.S. Patent Office for the same patent application as above, U.S. serial number 12/994,761.

O. On March 24, 2014, BCT signed a definitive agreement with the Massachusetts General Hospital (MGH) in Boston, MA to conduct a Phase II clinical trial of NurOwn™ in amyotrophic lateral sclerosis (ALS), pending FDA approval.

P. On April 28, 2014, the Company announced that the US Food and Drug Administration (FDA) has approved commencement of its Phase II clinical trial with NurOwn™ in patients with Amyotrophic Lateral Sclerosis (ALS). The trial was launched at the Massachusetts General Hospital (MGH) in Boston, MA and the University of Massachusetts Memorial (UMass) Hospital in Worcester, MA after Institutional Review Board (IRB) approvals.  Dana-Farber Cancer Institute's Connell O'Reilly Cell Manipulation Core Facility manufactures the NurOwn™ cells for these two clinical sites. The trial is also conducted at the Mayo Clinic in Rochester, Minnesota.

Q. On June 2, 2014, the Company announced that interim results from the Company's Phase IIa ALS trial conducted at Hadassah Medical Center in Jerusalem, Israel were presented on June 1, 2014 at the Joint Congress of European Neurology by Principal Investigator Professor Dimitrios Karussis. The positive safety and preliminary efficacy results observed in this study are consistent with results observed in the Company's previous Phase I/II trial. Between these two studies, a total of 26 patients have been treated with NurOwn™, the Company’s stem cell therapy candidate for ALS.

R. On June 6, 2014, the Company announced that its Phase II ALS clinical trial has commenced with the enrollment of the first patient at Massachusetts General Hospital (MGH) in Boston, Massachusetts. Company’s Phase II trial is a randomized, double-blind, placebo controlled multi-center study designed to evaluate the safety and efficacy of transplantation of Autologous Mesenchymal Stem Cells Secreting Neurotrophic Factors ("MSC-NTF" or NurOwn™) in 48 ALS patients. The trial is also being conducted at the University of Massachusetts Memorial (UMass) Hospital in Worcester, Massachusetts and the Mayo Clinic in Rochester, Minnesota.

S. On June 10, 2014, the Company announced that it has initiated a study in a mouse model of autism at the Felsenstein Medical Research Center, Sackler Faculty of Medicine, Tel Aviv University, under the direction of Professor Daniel Offen. The study explores the effects of the company's "MSC-NTF" cells on mouse behavior. The study, which is being conducted using the BTBR mouse model for autism, will investigate repetitive behavior, increased cognitive flexibility and improved sociability in mice after administration of a single intracerebroventricular injection of the cells.

T. On June 24, 2014, the Company signed a definitive agreement with the University of Massachusetts Memorial (UMass) Hospital in Worcester, MA to conduct a Phase II clinical trial of NurOwn™ in ALS.

U. On July 1, 2014, the Company signed a definitive agreement with Professional Research Consulting Clinical Inc., CA ("PRC"), to monitor the Phase II clinical trial of NurOwn™ in ALS.

V. A reverse stock split of the Company’s shares of Common Stock by a ratio 1-for-15 was effected on September 15, 2014 at 11:59 p.m. pursuant to an amendment to the Company’s Certificate of Incorporation approved by the stockholders of the Company on August 14, 2014. The Company adjusted all ordinary shares, options, warrants, per share data and exercise prices included in these financial statements for all periods presented to reflect the reverse stock split.

W. The Company’s shares of Common Stock were approved for uplisting to the NASDAQ, and commenced trading on the NASDAQ on September 30, 2014 under the ticker symbol "BCLI."

GOING CONCERN:

To date the Company has not generated any revenues from its activities and has incurred substantial operating losses. Management expects the Company to continue to generate substantial operating losses and to continue to fund its operations primarily through utilization of its current financial resources and through additional raises of capital. In the first half of 2015 net cash inflows from issuances of common stock through the exercise of equity warrants as well as from issuances of new equity warrants amounted to approximately $14.8 million. Management believes that the Company’s current resources are sufficient to fund its operations for the next 12 months, however there can be no assurance that additional funds necessary for the Company's long term operations will be available on terms acceptable to the Company, or that the Company will not incur additional unforeseen costs or expenses. Such conditions raise substantial doubts about the Company's long term ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of such uncertainties. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.00005	$ 0.00005
Common stock, shares Authorized	800,000,000	800,000,000
Common stock, shares Issued	18,480,957	15,281,497
Common stock, shares outstanding	18,480,957	15,281,497

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RESEARCH AND LICENSE AGREEMENT (Details Textual) - 6 months ended Jun. 30, 2015	Total
Research And License Agreement [Line Items]
Percentage Of Royalty Payment If Licensed Product Covered By Valid Claim Or Orphan Drug Status	5.00%
Percentage Of Royalty Payment If Licensed Product Not Covered By Valid Claim Or Orphan Drug Status	3.00%
Validity Of Royalty Payment Not Covered By Valid Claim Or Orphan Drug Status	15 years

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Registrant Name	BRAINSTORM CELL THERAPEUTICS INC.
Entity Central Index Key	0001137883
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	BCLI
Entity Common Stock, Shares Outstanding		18,480,957

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CONSULTING AGREEMENTS (Details Textual) - USD ($) $ in Thousands			1 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 13, 2013	Jul. 08, 2004	Apr. 29, 2015	Mar. 24, 2014	Jan. 16, 2013	Jun. 30, 2012	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2012
Consulting Agreement [Line Items]
Research and Development Expense							$ 1,375	$ 877	$ 2,620	$ 1,557
Eldad Melamed and Daniel Offen Consultants [Member]
Consulting Agreement [Line Items]
Monthly Payment Of Consulting Fees		$ 6
Research and Development Expense			$ 108								$ 54
Prof.Daniel Offen Consultant [Member]
Consulting Agreement [Line Items]
Monthly Payment Of Consulting Fees						$ 6
Monthly Payment Of Consulting Fees, Cash						3
Monthly Payment Of Consulting Fees, Stock						$ 3
Consultants [Member]
Consulting Agreement [Line Items]
Stock Issued During Period, Shares, Issued For Services	30,000		27,411	6,000	14,400

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating costs and expenses:
Research and development, net	$ 1,375	$ 877	$ 2,620	$ 1,557
General and administrative	988	417	1,948	768
Operating profit (loss)	(2,363)	(1,294)	(4,568)	(2,325)
Financial (income) expenses, net	(98)	690	(67)	1,770
Net profit (loss)	$ (2,265)	$ (1,984)	$ (4,501)	$ (4,095)
Basic and diluted net profit (loss) per share from continuing operations (in dollars per share)	$ (0.12)	$ (0.16)	$ (0.24)	$ (0.34)
Weighted average number of shares outstanding used in computing basic and diluted net loss per share (in shares)	18,450,464	12,416,892	18,290,343	12,080,621

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SHORT TERM INVESTMENTS

6 Months Ended

Jun. 30, 2015

Cash and Cash Equivalents [Abstract]

Short Term Investments [Text Block]

NOTE 6 - SHORT TERM INVESTMENTS

Short term investments on June 30, 2015 include bank deposits bearing annual interest rates varying from 0.07% to 0.3%, with maturities of up to 4 and 5 months as of June 2015 and December 2014, respectively.

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CONSULTING AGREEMENTS

6 Months Ended

Jun. 30, 2015

Consulting Agreements [Abstract]

Consulting Agreements [Text Block]

NOTE 5 - CONSULTING AGREEMENTS

A. On July 8, 2004, the Company entered into two consulting agreements with Prof. Eldad Melamed and Dr. Daniel Offen (together, the "Consultants"), under which the Consultants provide the Company scientific and medical consulting services in consideration for a monthly payment of $6 each. In June 2012 an amendment was signed with Dr. Daniel Offen, according to which the company pays Daniel Offen a monthly payment of $6, out of which $3 in cash and $3 by grant of Company stock.

B. On January 16, 2013, the Company granted the Consultants an aggregate of 14,400 shares of Common Stock for their services from January 1, 2012 through December 31, 2012. Related compensation in the amount of $54 was recorded as research and development expense.

C. On November 13, 2013, the Company approved grants of an aggregate 30,000 shares of Common Stock to the Consultants, for services rendered during January 1, 2013 through September 30, 2013 (the “2013 Shares”).

D. On March 24, 2014, the Company approved grants of an aggregate 6,000 shares of Common Stock to the Consultants for services rendered in 2013.

E. On April 29, 2015 the Company approved grants of an aggregate 27,411 shares of Common Stock to the Consultants for services rendered in 2014. Related compensation in the amount of $108 was recorded as research and development expense.

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STOCK CAPITAL (Details Textual) - USD ($)													1 Months Ended																						3 Months Ended		6 Months Ended		12 Months Ended			60 Months Ended
	May. 03, 2015	Jan. 08, 2015	Aug. 15, 2014	Aug. 14, 2014	Jun. 09, 2014	Jun. 06, 2014	Apr. 13, 2014	Nov. 13, 2013	Mar. 11, 2013	Feb. 07, 2013	Feb. 04, 2013	Aug. 01, 2012	Oct. 31, 2014	Jul. 31, 2014	Jul. 28, 2014	Jun. 19, 2014	May. 27, 2014	Apr. 25, 2014	Mar. 24, 2014	Aug. 16, 2013	Apr. 30, 2013	Apr. 19, 2013	Jan. 16, 2013	Jul. 17, 2012	Jun. 30, 2012	Apr. 30, 2012	Aug. 22, 2011	Jun. 30, 2011	Dec. 16, 2010	Apr. 30, 2010	Feb. 28, 2010	Dec. 30, 2009	Jun. 30, 2008	Jul. 31, 2007	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2014	Jan. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of Common stock, net																																			$ 0	$ 9,658,000	$ 0	$ 9,658,000
Stock Issued During Period, Shares, Conversion of Convertible Securities																																74,667
Amount Due To Investors																																												$ 20,000
Common stock, par value (in dollars per share)																																			$ 0.00005		$ 0.00005						$ 0.00005
Stock Issued During Period, Value, New Issues																																							$ 2,497,000
Stock Issued During Period, Value, Conversion of Convertible Securities																																							$ 30,000
Legal Advisor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Recorded In General and Administrative Expenses									$ 44,500						$ 50,000
Stock Issued During Period, Shares, Issued for Services									12,913						10,752
Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																							14,400
Stock Issued During Period, Shares, Issued for Services								30,000											6,000
Stock Based Compensation Recorded In Research Development Expenses																							$ 54,000
Service Provider [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Recorded In General and Administrative Expenses									$ 92,000
Stock Issued During Period, Shares, Issued for Services									26,667
Placement Agent [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Investment Warrants, Exercise Price																								$ 5.22
Premium On Warrant Exercise Price Compared To Issuance Price																								120.00%
Percentage Of Warrants Issued Out Of Shares Issued In Public Offering																								3.00%
Warrants Issued To Placement Agent For Purchase Of Common Stock																								32,931
Percentage Of Cash Fee On Gross Proceeds Of Offering																								7.00%
Restricted Stock [Member] | Scientific Advisory Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			50,667																			50,667
Stock Based Compensation Will Be Recorded In General And Administrative Expenses			$ 236,000																			$ 175,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights			The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant.																			The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant.
Enrollment Of One Third Of Patients [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Warrants Vest Over Course Of Trails																																								33,333
Enrollment Of All Patients [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Warrants Vest Over Course Of Trails																																								33,333
Completion Of Study [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Warrants Vest Over Course Of Trails																																								33,333
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues	60,000
Stock Based Compensation Recorded In General and Administrative Expenses												$ 105,000																	$ 78,000								$ 223,000
Investment Warrants, Exercise Price																																										$ 2.25
Investment Options, Exercise Price												$ 2.25	$ 0.75									$ 2.25							$ 2.25
Stock Option Expiration Term																													10 years													10 years
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross												30,667	70,666									30,667							26,667													53,333
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	The shares will vest in accordance with the following vesting schedule: (a) 20,000 Restricted Shares vest on August 22, 2015; (b) 20,000 Restricted Shares vest on August 22, 2016 and (c) 20,000 Restricted Shares vest on August 22, 2017, provided that the director remains a director of the Company on each such vesting date.
Director One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Recorded In General and Administrative Expenses																																					$ 20,000
Investment Options, Exercise Price																																					$ 0.75
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross																																					6,667
Hadasit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock													8,889								2,222					2,222		2,222		2,222
Investment Warrants, Exercise Price																					$ 0.00075					$ 0.00075		$ 0.00075		$ 0.00075
Hadasit [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock																																								100,000
Investment Warrants, Exercise Price																																								$ 0.015
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period																																								5 years
Mr. Israeli [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Investment Options, Exercise Price							$ 0.00075														$ 0.00075					$ 0.00075		$ 0.00075		$ 0.00075
Number of options granted																					11,111					11,111		11,111		11,111
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross							20,000						44,444
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Recorded In General and Administrative Expenses					$ 1,494,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross					380,000
Share-Based Compensation Arrangements By Share-Based Payment Award, Options, Grants In Period, Weighted Average Exercise Price					$ 4.5
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights					shall vest and become exercisable as to 25% of the Shares on the first anniversary of the Grant Date and the remainder of the Shares shall vest and become exercisable in equal monthly installments on each of the 36 monthly anniversaries following the Initial Vesting Date.
Mr. Schor [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																											61,558
Stock Issued During Period, Value, Issued for Services																											$ 15,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period																											3 years
Global Share Option Plan 2004 and U S Stock Option and Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase In Number Of Shares Available For Issuance																									600,000			333,333					333,333
Shares Reserved For Issuance Under Stock Option Plan																																					609,564
Global Share Option Plan 2004 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Recorded In General and Administrative Expenses						$ 55,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross						33,333
Share-Based Compensation Arrangements By Share-Based Payment Award, Options, Grants In Period, Weighted Average Exercise Price						$ 2.7
Global Share Option Plan 2014 and U S Stock Option and Incentive Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Reserved For Issuance Under Stock Option Plan				600,000
Related Party [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																																					83,333
Leader Underwriters (1993) Ltd [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock																								15,517
Investment Warrants, Exercise Price																								$ 4.35
Warrant Expiry Term																								30 months
Investor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities											8,408
Stock Issued During Period, Value, Conversion of Convertible Securities											$ 200,000
Investor [Member] | Settlement Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities											8,408
Stock Issued During Period, Value, Conversion of Convertible Securities											$ 200,000
Holders of Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock																	333,235
Stock Repurchased During Period, Value																	$ 600,000
Warrants Repurchase Price																	$ 1.80
Maxim Group LLC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock		38,000,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Warrants																																					$ 829,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross																																					14,246,831
Fair Value Assumptions, Weighted Average Volatility Rate																																									140.00%
Fair Value Assumptions, Expected Dividend Rate																																									0.00%
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																																							1,568,628
Proceeds from issuance of Common stock, net																																					$ 2,496,000
Stock Issued During Period, Shares, Conversion of Convertible Securities																																							8,408
Stock Issued During Period, Value, New Issues																																							$ 1,000
Stock Issued During Period, Value, Conversion of Convertible Securities																																							$ 0
Maximum [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value Assumptions, Risk Free Interest Rate																																									3.14%
Fair Value Assumptions, Expected Term																																									5 years 6 months
Maximum [Member] | Warrant Issued One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value Assumptions, Expected Term																																									9 years
Minimum [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value Assumptions, Risk Free Interest Rate																																									2.39%
Fair Value Assumptions, Expected Term																																									5 years
Minimum [Member] | Warrant Issued One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value Assumptions, Expected Term																																									1 year
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																															399,999			2,777,777
Unit Sold Comprised Of One Share and One Warrant										55,556
Proceeds from issuance of Common stock, net										$ 250,000																					$ 1,500,000
Warrants Issued To Purchase Of Common Stock																															199,998
Investment Warrants, Exercise Price										$ 7.5																					$ 7.50
Deferred Compensation Arrangement with Individual, Maximum Contractual Term										32 months
Private Placement [Member] | Investment Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Value, Subscriptions																																		$ 5,000,000
Private Placement [Member] | Investor One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																															133,333
Proceeds from issuance of Common stock, net																															$ 500,000
Warrants Issued To Purchase Of Common Stock																															66,666
Private Placement [Member] | Investor Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																															133,333
Proceeds from issuance of Common stock, net																															$ 500,000
Warrants Issued To Purchase Of Common Stock																															66,666
Private Placement [Member] | Investor Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																															133,333
Proceeds from issuance of Common stock, net																															$ 500,000
Warrants Issued To Purchase Of Common Stock																															66,666
Private Placement [Member] | Warrant Issued One [Member] | Investment Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock																																		672,222
Investment Warrants, Exercise Price																																		$ 3
Private Placement [Member] | Warrant Issued Two [Member] | Investment Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock																																		1,344,444
Investment Warrants, Exercise Price																																		$ 4.35
Warrant Expiry Term																																		18 months
Public Offering [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)																		$ 0.00005
Conversion of Stock, Shares Converted																		777,471
Public Offering [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																				1,568,628				1,321,265
Proceeds from issuance of Common stock, net																				$ 3,300,000				$ 4,900,000
Common Stock Purchase Price																				$ 2.55
Warrants Issued To Purchase Of Common Stock																				1,176,471				990,949
Investment Warrants, Exercise Price														$ 0.525						$ 3.75				$ 4.35
Warrants To Purchase Common Stock Shares, Ratio																				0.75				0.75
Stock Issued During Period, Value, New Issues																				$ 4,000,000				$ 5,700,000
Deferred Compensation Arrangement with Individual, Maximum Contractual Term																				36 months				30 months
Shares Issued, Price Per Share																								$ 4.35
Public Offering [Member] | Unregistered Shares of Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion of Stock, Shares Converted																		388,735
Investors Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues																2,800,000
Warrants Issued To Purchase Of Common Stock		2,500,000														2,800,000
Investment Warrants, Exercise Price		$ 5.22														$ 5.22
Investment Options, Exercise Price																4.41
Common stock, par value (in dollars per share)																$ 0.00005
Stock Issued During Period, Value, New Issues																$ 10,500,000
Shares Issued, Price Per Share																$ 3.75
Warrants Issued to Purchase of Common Stock, Percentage of Discount																15.00%
Warrants Exercisable Terms Description																The Warrants became exercisable immediately upon closing of the private placement and have a term of three (3) years.
Proceeds from Warrant Exercises		$ 13,300,000
Exercise Agreement, Fees and Expenses, Amount		$ 20,000
Investors Private Placement [Member] | Maxim Group LLC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Agreement, Maxim Cash Fee, Percentage		6.00%
Investors Private Placement [Member] | Unregistered Shares of Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Issued To Purchase Of Common Stock		3,800,000
Investment Warrants, Exercise Price		$ 6.50

XML

SHORT TERM INVESTMENTS (Details Textual)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
Interest Bearing Bank Deposits Maturity Date	4 months	5 months
Minimum [Member]
Cash and Cash Equivalents [Line Items]
Percentage Of Interest Bearing Bank Deposits	0.07%
Maximum [Member]
Cash and Cash Equivalents [Line Items]
Percentage Of Interest Bearing Bank Deposits	0.30%

XML

STOCK CAPITAL (Tables)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the Company's option activity related to options to employees and directors, and related information is as follows:

	For the six months ended
	June 30, 2015
			Weighted
			average		Aggregate
	Amount of		exercise		intrinsic
	options		price		value
			$		$
Outstanding at beginning of period		792,110		3.4545
Granted		6,667		0.7500
Exercised		-		-
Cancelled		(11,667)		6.1071
Outstanding at end of period		787,110		3.3923		171,345
Vested and expected-to-vest at end of period		465,944		2.8055		374,858

Schedule Of Warrants Issued To Investors Service Providers [Table Text Block]

	Number of								Exercise
	warrants								Price	Warrants		Exercisable
Issuance date	issued		Exercised		Forfeited		Outstanding		$	exercisable		through
Nov-Dec 2004		973,390		959,734		13,656		-	0.00075 - 0.15		-	-
Feb-Dec 2005		203,898		32,011		171,887		-	2.25 - 37.5		-	-
Feb-Dec 2006		112,424		48,513		31,911		32,000	0.075 – 22.5		32,000	Feb - May 2016
Mar-Nov 2007		180,220		-		66,887		113,333	2.25 - 7.05		113,333	Mar 2017 – Oct 2017
Nov 2008		6,667		-		-		6,667	2.25		6,667	Sep-18
Apr-Oct  2009		26,667		6,667		-		20,000	1.005 – 1.5		20,000	Apr 2019 – Oct 2019
Aug 2007- Jan 2011		2,016,667		-		-		2,016,667	3 - 4.35		2,016,667	Nov-17
Jan 2010		83,333		-		83,333		-	7.5		-	-
Feb 2010		8,333		8,333		-		-	0.15		-	-
Feb 2010		200,000		-		200,000		-	7.5		-	-
Feb 2010		100,000		-		100,000		-	0.015		-	-
Feb 2011		42,735		-		42,735		-	5.85		-	-
Feb 2011		427,167		63,122		364,044		-	4.2		-	-
Feb 2011		854,333		-		854,333		-	7.5		-	-
Jul 2012		32,931		-		32,931		-	5.22		-	-
Jul 2012		990,949		687,037		303,911		-	4.35		-	-
Feb 2013		55,556		-		-		55,556	7.5		55,556	Oct-15
April 2010-2014		12,889		8,889		4,000		-	0.00075		-	-
Aug 2013		1,147,471		-		1,110,706		36,764	3.75		36,764	Aug-16
Aug 2013		29,000		29,000		-		-	0.525		-	-
Jun 2014		2,800,000		2,546,667		-		253,333	5.22		253,333	Jun-17
Jun 2014		84,000		-		-		84,000	4.5		84,000	Jun-17
Jan 2015		3,858,201		-		-		3,858,201	6.5		3,858,201	Jun-18
		14,246,831		4,389,973		3,380,334		6,476,521			6,476,521

Stock Based Compensation Expense [Table Text Block]

The total stock-based compensation expense, related to shares, options and warrants granted to employees, directors and service providers, was comprised, at each period, as follows:

	Six months ended				Three months ended
	June 30,				June 30,
	2015		2014		2015		2014
	Unaudited				Unaudited
Research and development		14		144		6		16
General and administrative		654		264		315		160
Total stock-based compensation expense		668		408		321		176

XML

STOCK CAPITAL

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 7  - STOCK CAPITAL

A. The rights of Common Stock are as follows:

Holders of Common Stock have the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company and the right to receive dividends, if declared.

The Common Stock is publicly traded on the NASDAQ Capital Market under the symbol BCLI.

B. Issuance of shares, warrants and options:

1. Private placements and public offering:

(a) In July 2007, the Company entered into an investment agreement, that was amended in August 2009, according to which for an aggregate subscription price of up to $5,000, the Company issued 2,777,777 shares of Common Stock and a warrant to purchase 672,222 shares of Common Stock at an exercise price of $3 per share and a warrant to purchase 1,344,444 shares of common stock at an exercise price of $4.35 per share. The warrants may be exercised at any time and expire on November 5, 2013. In May 2012 the warrants were extended by additional 18 months, through May 5, 2015. In May 2015 the warrants were extended by additional 18 months, through November 5, 2017.

In January 2011, the Company and the investor signed an agreement to balance the remaining amount due to the investor, totaling $20, against the remaining balance of the investment and the Company issued the above shares and warrants.

In addition, the Company issued an aggregate of 83,333 shares of Common Stock to a related party as an introduction fee for the investment. As of the balance sheet date, no warrants have been exercised.

(b) In February 2010, the Company issued an aggregate 399,999 shares of Common Stock to three investors (133,333 to each investor) and warrants to purchase an aggregate of 199,998 shares of Common Stock (66,666 to each investor) with an exercise price of $7.50 per share for aggregate proceeds of $1,500 ($500 from each investor).

(c) On July 17, 2012, the Company raised a $5,700 gross proceeds through a public offering (“2012 Public Offering”) of its common stock. The Company issued a total of 1,321,265 shares of common stock., ($4.35 per share) and 990,949 warrants to purchase 0.75 shares of Common Stock for every share purchased in the Public Offering, at an exercise price of $4.35 per share. The Warrants are exercisable until the 30 month anniversary of the date of issuance.

After deducting closing costs and fees, the Company received net proceeds of approximately $4,900.

The Company paid to the Placement Agency, Maxim Group LLC (the “Placement Agent”), a cash fee and a corporate finance fee equal to 7% of the gross proceeds of the Public Offering. In addition, the Company issued to the Placement Agent a two year warrant to purchase up to 32,931 shares of Common Stock (equal to 3% of the number of shares sold in the Public Offering), with an exercise price equal to $5.22 (120% of the Public offering price). The Warrants are exercisable until the 30 month anniversary of the date of issuance. In addition, the Company issued to Leader Underwriters (1993) Ltd, warrants to purchase 15,517 shares of Common stock, at an exercise price of $4.35 per share. The warrants are exercisable until the 30 month anniversary of the date of issuance.

(d) On February 4, 2013, the Company issued 8,408 shares of Common Stock to an investor, according to a settlement agreement, for the correction of the conversion rate of a $200 convertible loan. The convertible loan was issued in 2006 and converted in 2010.

(e) On February 7, 2013, the Company issued 55,556 units to a private investor for total proceeds of $250. Each unit consisted of one share of Common Stock and a warrant to purchase one share of Common Stock at $7.5 per share exercisable for 32 months.

(f) On August 16, 2013, the Company raised $4,000 (gross) through a registered public offering (“2013 Public Offering”) of its common stock. The Company issued a total of 1,568,628 common stock, ($2.55 per share) and 1,176,471 warrants to purchase 0.75 shares of Common Stock for every share purchased in the Public Offering, at an exercise price of $3.75 per share. The Warrants are exercisable until the 36 month anniversary of the date of issuance. The Warrants also include, subject to certain exceptions, full ratchet anti-dilution protection in the event of the issuance of any common stock, securities convertible into common stock, or certain other issuances at a price below the then-current exercise price of the Warrants, which would result in an adjustment to the exercise price of the Warrants. In the event of a sale of the Company, each holder of Warrants has the right, exercisable at its option, to require the Company to purchase such holder’s Warrants at a price determined using a Black-Scholes option pricing model as described in the Warrants. After deducting closing costs and fees, the Company received net proceeds of approximately $3.3 million.

In accordance with the provisions of ASC 815 (formerly FAS 133) the proceeds related to the warrants at the amount of $829 were recorded to liabilities at the fair value of such warrants as of the date of issuance, and the proceeds related to common stocks of 2,496 were recorded to equity.

On April 25, 2014, the Company entered into agreements with holders of warrants originally issued in the Company’s August 16, 2013 public offering (the “2013 Warrants”) to exchange outstanding 2013 Warrants entitling the holders to purchase an aggregate of 777,471 shares of Company common stock, $0.00005 par value for an aggregate of 388,735 unregistered shares of Common Stock.

After the exchange, the 2013 Warrants were cancelled and of no further force and effect.

On May 27, 2014 the Company entered into agreements with certain holders of warrants originally issued in the Company’s August 16, 2013 public offering to repurchase outstanding 2013 Warrants entitling the holders to purchase an aggregate of 333,235 shares of Company common stock, for an aggregate of approximately $600,000. Each share of Common Stock issuable pursuant to the 2013 Warrants was repurchased for $1.80 cash payment by the Company per Warrant Share. Warrants participating in the Redemption were cancelled and of no further force and effect.

In May 2014, certain holders of 2013 Warrants which did not participate in the Redemption and whose 2013 Warrants will therefore remain outstanding after the Effective Date, have waived anti-dilution provisions of their 2013 Warrants.

In July 2014, the Company signed an amendment to certain holders of warrants originally issued in the Company’s August 16, 2013 public offering and did not participate in the Redemption, to adjust the exercise price of the warrants to $0.525 per share.

On January 6, 2015, the remaining 2013 Warrants that did not participate in the redemption and that did not provide a waiver of their anti-dilution rights, exercised their warrants. Therefore, the liability related to the 2013 Warrants has been cancelled.

(g) On June 19, 2014, the Company, pursuant to the June 13, 2014 securities purchase agreement, entered into with a group of investors, including several healthcare-focused funds, effected a private placement of the Company’s common stock, $0.00005 par value per share, and warrants to purchase Common Stock. The Company received gross proceeds of $10.5 million, resulting from the issuance and sale of 2.8 million shares of Common Stock at a price per share of $3.75, a 15% discount to the 30 day volume-weighted average price of $4.41. The Investors received warrants to purchase up to2.8 million shares of Common Stock at an exercise price of $5.22 per share. The Warrants became exercisable immediately upon closing of the private placement and have a term of three (3) years.

(h) Pursuant to a Warrant Exercise Agreement, dated January 8, 2015, holders of the Company warrants to purchase an aggregate of approximately 2.5 million shares of the Company’s Common Stock at an exercise price of $5.22 per share, issued in a private placement to accredited investors that was consummated on June 13, 2014, agreed to exercise their 2014 Warrants in full and the Company agreed to issue new warrants to the holders to purchase up to an aggregate of approximately 3.8 million unregistered shares of Common Stock at an exercise price of $6.50 per share. The Company received an aggregate of approximately $13.3 million in proceeds from the exercises of the 2014 Warrants. In connection with the Exercise Agreement, the Company agreed to pay to the Placement Agency a cash fee equal to 6.0% of the Exercise Proceeds, as well as fees and expenses of the Placement Agency of $20. In addition, the Company issued the Placement Agency a warrant to purchase 38,000 shares of Common Stock upon substantially the same terms as the New Warrants.

2. Share-based compensation to employees and to directors:

(a) Options to employees and directors:

On November 25, 2004, the Company's stockholders approved the 2004 Global Stock Option Plan and the Israeli Appendix thereto (which applies solely to participants who are residents of Israel) and on March 28, 2005, the Company's stockholders approved the 2005 U.S. Stock Option and Incentive Plan, and the reservation of 609,564 shares of Common Stock for issuance in the aggregate under these stock plans.

In June 2008, June 2011 and in June 2012, the Company's stockholders approved increases in the number of shares of common stock available for issuance under these stock option plans by 333,333, 333,333 and 600,000 shares, respectively

Each option granted under the plans is exercisable until the earlier of ten years from the date of grant of the option or the expiration dates of the respective option plans. The 2004 and 2005 options plans will expire on November 25, 2014 and March 28, 2015, respectively.

On August 14, 2014, the Company's stockholders approved the 2014 Global Share Option Plan and the Israeli Appendix thereto (which applies solely to participants who are residents of Israel) and the 2014 Stock Incentive Plan, and the reservation of 600,000 shares of Common Stock for issuance in the aggregate under these stock plans.

The exercise price of the options granted under the plans may not be less than the nominal value of the shares into which such options are exercised. Any options that are canceled or forfeited before expiration become available for future grants.

From 2005 through 2009, the Company granted its directors options to purchase 53,333 (in total) shares of Common Stock of the Company at an exercise price of $2.25 per share. The options are fully vested and will expire after 10 years.

On April 13, 2010, the Company, Abraham Israeli and Hadasit Medical Research Services and Development Ltd. (“Hadasit”) entered into an Agreement (as amended, the “Hadasit Agreement”) pursuant to which Prof. Israeli agreed, during the term of the Hadasit Agreement, to serve as (i) the Company’s Clinical Trials Advisor and (ii) a member of the Company’s Board of Directors. 

Accordingly, the Company granted to Prof. Israeli in each of April 2010, June 2011, April 2012 and April 2013, an option to purchase 11,111 shares of Common Stock at an exercise price equal to $0.00075 per share.

In addition, the Company granted Hadasit, in each of April 2010, June 2011, April 2012, and April 2013, a warrant to purchase 2,222 shares of Common Stock at an exercise price equal to $0.00075 per share.

In addition, on April 13, 2014, pursuant to the Hadasit Agreement, and pursuant to the December 2013 letter from the Company to Prof. Israeli, the Company issued to Prof. Israeli, an option to purchase 20,000 shares of its Common Stock at an exercise price of $0.00075 per share.

On April 25, 2014 the Agreement among the Company, Prof. Abraham Israeli and Hadasit was terminated. As a result of the termination, Prof. Israeli and Hadasit will no longer receive annual grants to purchase shares of Common Stock, and any outstanding and unvested grants made pursuant to the Agreement ceased to vest, and the grants were valid until and exercisable only on or before October 25, 2014.

In October 2014, Prof Israeli exercised his option to purchase 44,444 shares of Common Stock of the Company. In October 2014, Hadasit exercised its warrants to purchase 8,889 shares of Common Stock of the Company.

On December 16, 2010, the Company granted to two of its directors an option to purchase 26,667 shares of Common Stock at an exercise price of $2.25 per share. The options are fully vested and are exercisable for a period of 10 years. The compensation related to the option, in the amount of $78, was recorded as general and administrative expense.

On August 1, 2012, the Company granted to three of its directors options to purchase an aggregate of 30,667 shares of Common Stock of the Company at $2.25 per share. The total compensation related to the option was $105, which is amortized over the vesting period as general and administrative expense.

On April 19, 2013, the Company granted to three of its directors options to purchase an aggregate of 30,667 shares of Common Stock of the Company at $2.25 per share. The total compensation expense related to the options was recorded as general and administrative expense.

On June 6, 2014, the Company entered into an employment agreement which sets forth the terms of COO employment. COO also was granted a stock option under the Company’s Amended and Restated 2004 Global Share Option Plan for the purchase of 33,333 shares of the Company’s common stock, which was fully vested and exercisable upon grant. The exercise price for the Initial Grant is $2.7 per share. The total related compensation, in the amount of $55 was recorded as general and administrative expense.

On June 9, 2014, the Company hired the new CEO. CEO was granted a stock option for the purchase of 380,000 shares of the Company’s common stock, which shall vest and become exercisable as to 25% of the Shares on the first anniversary of the Grant Date and the remainder of the Shares shall vest and become exercisable in equal monthly installments on each of the 36 monthly anniversaries following the Initial Vesting Date.  The exercise price for the CEO Grant is $4.5 per share. The total related compensation, in the amount of $1,494 will be recorded as general and administrative expense.

On October 31, 2014, the Company granted to four of its directors options to purchase an aggregate of 70,666 shares of Common Stock of the Company at $0.75 per share. As of June 30, 2015 the compensation expense related to the options of $223 was recorded as general and administrative expense.

On June 1, 2015, the Company granted to its director fully vested options to purchase an aggregate of 6,667 shares of Common Stock of the Company at $0.75 per share. As of June 30, 2015 the compensation expense related to the options of $20 was recorded as general and administrative expense.

A summary of the Company's option activity related to options to employees and directors, and related information is as follows:

	For the six months ended
	June 30, 2015
			Weighted
			average		Aggregate
	Amount of		exercise		intrinsic
	options		price		value
			$		$
Outstanding at beginning of period		792,110		3.4545
Granted		6,667		0.7500
Exercised		-		-
Cancelled		(11,667)		6.1071
Outstanding at end of period		787,110		3.3923		171,345
Vested and expected-to-vest at end of period		465,944		2.8055		374,858

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the fair market value of the Company’s shares on June 30, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2015.

(b) Restricted shares to directors:

On August 22, 2011, the Company entered into an agreement with Chen Schor (the “Executive Director Agreement”) pursuant to which the Company granted to Mr. Schor 61,558 shares of restricted Common Stock of the Company.   The shares will vest over 3 years - 1/3 upon each anniversary of the Grant Date. In addition, the Company will pay $15 per quarter to Mr. Schor for his services as an Executive Board Member.

On April 19, 2013, the Company issued to two of its directors and four of its Advisory Board members a total of 50,667 restricted shares of Common Stock. The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant. Related compensation expense in the amount of $175 was recorded as general and administrative expense.

On August 15, 2014, the Company issued to two of its directors and four of its Advisory Board members a total of 50,667 restricted shares of Common Stock. The shares will vest in 12 equal monthly portions until fully vested on the anniversary of grant. Related compensation expense in the amount of $236 will be recorded as general and administrative expense

On May 3, 2015, the Company entered into an agreement with one of Company’s directors pursuant to which the Company granted to the director 60,000 shares of restricted Common Stock of the Company. The shares will vest in accordance with the following vesting schedule: (a) 20,000 Restricted Shares vest on August 22, 2015; (b) 20,000 Restricted Shares vest on August 22, 2016 and (c) 20,000 Restricted Shares vest on August 22, 2017, provided that the director remains a director of the Company on each such vesting date.

3. Shares and warrants to investors and service providers:

The Company accounts for shares and warrant grants issued to non-employees using the guidance of ASC 505-50, "Equity-Based Payments to Non-Employees" (EITTF 96-18, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services"), whereby the fair value of such option and warrant grants is determined using a Black-Scholes options pricing model at the earlier of the date at which the non-employee's performance is completed or a performance commitment is reached.

The fair value for the warrants to service providers was estimated on the measurement date determined using a Black-Scholes option pricing model, with the following weighted-average assumptions for the year ended December 31, 2010; weighted average volatility of 140%, risk free interest rates of 2.39%-3.14%, dividend yields of 0% and a weighted average life of the options of 5-5.5 and 1-9 years. There were no grants to service providers during 2013, 2014 and 2015 using Black-Scholes calculation.

	Number of								Exercise
	warrants								Price	Warrants		Exercisable
Issuance date	issued		Exercised		Forfeited		Outstanding		$	exercisable		through
Nov-Dec 2004		973,390		959,734		13,656		-	0.00075 - 0.15		-	-
Feb-Dec 2005		203,898		32,011		171,887		-	2.25 - 37.5		-	-
Feb-Dec 2006		112,424		48,513		31,911		32,000	0.075 – 22.5		32,000	Feb - May 2016
Mar-Nov 2007		180,220		-		66,887		113,333	2.25 - 7.05		113,333	Mar 2017 – Oct 2017
Nov 2008		6,667		-		-		6,667	2.25		6,667	Sep-18
Apr-Oct  2009		26,667		6,667		-		20,000	1.005 – 1.5		20,000	Apr 2019 – Oct 2019
Aug 2007- Jan 2011		2,016,667		-		-		2,016,667	3 - 4.35		2,016,667	Nov-17
Jan 2010		83,333		-		83,333		-	7.5		-	-
Feb 2010		8,333		8,333		-		-	0.15		-	-
Feb 2010		200,000		-		200,000		-	7.5		-	-
Feb 2010		100,000		-		100,000		-	0.015		-	-
Feb 2011		42,735		-		42,735		-	5.85		-	-
Feb 2011		427,167		63,122		364,044		-	4.2		-	-
Feb 2011		854,333		-		854,333		-	7.5		-	-
Jul 2012		32,931		-		32,931		-	5.22		-	-
Jul 2012		990,949		687,037		303,911		-	4.35		-	-
Feb 2013		55,556		-		-		55,556	7.5		55,556	Oct-15
April 2010-2014		12,889		8,889		4,000		-	0.00075		-	-
Aug 2013		1,147,471		-		1,110,706		36,764	3.75		36,764	Aug-16
Aug 2013		29,000		29,000		-		-	0.525		-	-
Jun 2014		2,800,000		2,546,667		-		253,333	5.22		253,333	Jun-17
Jun 2014		84,000		-		-		84,000	4.5		84,000	Jun-17
Jan 2015		3,858,201		-		-		3,858,201	6.5		3,858,201	Jun-18
		14,246,831		4,389,973		3,380,334		6,476,521			6,476,521

(b) Shares:

On December 30, 2009, the Company issued to Ramot 74,667 shares of Common Stock (See Note 4).

On December 31, 2011, the Company issued to Hadasit warrants to purchase up to 100,000 restricted shares of Common Stock at an exercise price of $0.015 per share, exercisable for a period of 5 years.  The warrants shall vest over the course of the trials as follows: 33,333 upon enrollment of 1/3 of the patients; an additional 33,333 upon enrollment of all the patients and the final 33,333 upon completion of the study.

On January 16, 2013, the Company granted an aggregate of 14,400 shares of Common Stock of the Company to two consultants, for services rendered through December 31, 2012. Related compensation expense in the amount of $54 was recorded as research and development expense.

On February 4, 2013, the Company issued 8,408 shares of Common Stock to an investor, according to a settlement agreement, for the correction of the conversion rate of a $200 convertible loan. The convertible loan was issued in 2006 and converted in 2010.

On March 11, 2013, the Company granted to its legal advisor 12,913 shares of Common Stock for 2013 legal services. The related compensation expense in the amount of $44.5 was recorded as general and administrative expense.

On November 13, 2013, the Company approved a grant of 30,000 shares of Common Stock to the Consultants, for services rendered during January 1, 2013 through September 30, 2013 (the “2013 Shares”). On March 24, 2014, the Company approved grants of an aggregate of 6,000 shares of Common Stock to the Consultants for services rendered in 2014, and issued such shares together with the 2013 Shares.

On March 11, 2013, the Company granted to two of its service providers an aggregate of 26,667 shares of Common Stock. The shares are public relations services. The related compensation expense in the amount of $92 was recorded as general and administrative expense.

On July 28, 2014, the Company granted to its legal advisor 10,752 shares of Common Stock for 2014 legal services. The related compensation expense in the amount of $50 was recorded as general and administrative expense.

(b) Shares:

The total stock-based compensation expense, related to shares, options and warrants granted to employees, directors and service providers, was comprised, at each period, as follows:

	Six months ended				Three months ended
	June 30,				June 30,
	2015		2014		2015		2014
	Unaudited				Unaudited
Research and development		14		144		6		16
General and administrative		654		264		315		160
Total stock-based compensation expense		668		408		321		176

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 8 - SUBSEQUENT EVENTS

A. The Company appointed Yoram Bibring as its Chief Financial Officer and Treasurer, effective July 30, 2015.   On July 30, 2015, the Company and Yoram Bibring entered into an employment agreement which sets forth the terms of Mr. Bibring’s employment (the “Employment Agreement”). Pursuant to the Employment Agreement, Yoram Bibring will be paid a salary at the annual rate of $225,000.  Mr. Bibring will also receive other benefits that are generally made available to the Company’s employees.  The Employment Agreement provides that if within twelve months after a Change of Control (as defined in the Employment Agreement) Mr. Bibring’s employment is terminated for any reason other than for cause, disability or death, or by Mr. Bibring due to a Change of Control Termination (as defined in the Employment Agreement), the Company shall pay Mr. Bibring a payment equal to his target bonus compensation for the year in which the Change of Control occurs, and his base salary for twelve months following the date of such termination.

Mr. Bibring also was granted a stock option (the “Initial Grant”) on July 30, 2015 (the “Grant Date”) for the purchase of 165,000 shares of the Company’s common stock (the “Shares”) at an exercise price equal to $3.17 per share. Subject to Mr. Bibring’s continued service with the Company through the applicable vesting dates, the Initial Grant will vest and become exercisable as to 25% of the Shares on the first anniversary of the Grant Date (the “Initial Vesting Date”) and the remainder of the Shares will vest and become exercisable in equal monthly installments on each of the 36 monthly anniversaries following the Initial Vesting Date, and shall vest and become exercisable in full immediately prior to a Change of Control (as defined in the Employment Agreement).  The Initial Grant was issued outside of the Company’s 2014 Stock Incentive Plan as an employment inducement grant.

XML

GENERAL (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 15, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
General And Going Concern [Line Items]
Stockholders Equity, Reverse Stock Split	1-for-15
Proceeds From Issuance Or Sale Of Equity		$ 12	$ 0	$ 12,409	$ 0
New Equity Warrants [Member]
General And Going Concern [Line Items]
Proceeds From Issuance Or Sale Of Equity				$ 14,800

XML

STOCK CAPITAL (Details 1) - Jun. 30, 2015 - Warrant [Member] - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	14,246,831
Exercised	4,389,973
Forfeited	3,380,334
Outstanding	6,476,521
Warrants Exercisable	6,476,521
Issuance Date Nov - Dec 2004 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	973,390
Exercised	959,734
Forfeited	13,656
Outstanding	0
Warrants Exercisable	0
Exercisable through	-
Issuance Date Nov - Dec 2004 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 0.00075
Issuance Date Nov - Dec 2004 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 0.15
Issuance Date Feb - Dec 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	203,898
Exercised	32,011
Forfeited	171,887
Outstanding	0
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb - Dec 2005 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 2.25
Issuance Date Feb - Dec 2005 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 37.5
Issuance Date Feb - Dec 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	112,424
Exercised	48,513
Forfeited	31,911
Outstanding	32,000
Warrants Exercisable	32,000
Exercisable through	Feb - May 2016
Issuance Date Feb - Dec 2006 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 0.075
Issuance Date Feb - Dec 2006 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 22.5
Issuance Date Mar - Nov 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	180,220
Exercised	0
Forfeited	66,887
Outstanding	113,333
Warrants Exercisable	113,333
Exercisable through	Mar 2017 – Oct 2017
Issuance Date Mar - Nov 2007 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 2.25
Issuance Date Mar - Nov 2007 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 7.05
Issuance Date Nov 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	6,667
Exercised	0
Forfeited	0
Outstanding	6,667
Exercise Price (in dollars per share)	$ 2.25
Warrants Exercisable	6,667
Exercisable through	Sep-18
Issuance Date Apr - Oct 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	26,667
Exercised	6,667
Forfeited	0
Outstanding	20,000
Warrants Exercisable	20,000
Exercisable through	Apr 2019 – Oct 2019
Issuance Date Apr - Oct 2009 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 1.005
Issuance Date Apr - Oct 2009 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 1.5
Issuance Date Aug 2007 - Jan 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	2,016,667
Exercised	0
Forfeited	0
Outstanding	2,016,667
Warrants Exercisable	2,016,667
Exercisable through	Nov-17
Issuance Date Aug 2007 - Jan 2011 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 3
Issuance Date Aug 2007 - Jan 2011 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 4.35
Issuance Date Jan 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	83,333
Exercised	0
Forfeited	83,333
Outstanding	0
Exercise Price (in dollars per share)	$ 7.5
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	8,333
Exercised	8,333
Forfeited	0
Outstanding	0
Exercise Price (in dollars per share)	$ 0.15
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2010 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	200,000
Exercised	0
Forfeited	200,000
Outstanding	0
Exercise Price (in dollars per share)	$ 7.5
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2010 Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	100,000
Exercised	0
Forfeited	100,000
Outstanding	0
Exercise Price (in dollars per share)	$ 0.015
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	42,735
Exercised	0
Forfeited	42,735
Outstanding	0
Exercise Price (in dollars per share)	$ 5.85
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2011 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	427,167
Exercised	63,122
Forfeited	364,044
Outstanding	0
Exercise Price (in dollars per share)	$ 4.2
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2011 Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	854,333
Exercised	0
Forfeited	854,333
Outstanding	0
Exercise Price (in dollars per share)	$ 7.5
Warrants Exercisable	0
Exercisable through	-
Issuance Date July 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	32,931
Exercised	0
Forfeited	32,931
Outstanding	0
Exercise Price (in dollars per share)	$ 5.22
Warrants Exercisable	0
Exercisable through	-
Issuance Date July 2012 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	990,949
Exercised	687,037
Forfeited	303,911
Outstanding	0
Exercise Price (in dollars per share)	$ 4.35
Warrants Exercisable	0
Exercisable through	-
Issuance Date Feb 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	55,556
Exercised	0
Forfeited	0
Outstanding	55,556
Exercise Price (in dollars per share)	$ 7.5
Warrants Exercisable	55,556
Exercisable through	Oct-15
Issuance Date Apr 2010-2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	12,889
Exercised	8,889
Forfeited	4,000
Outstanding	0
Exercise Price (in dollars per share)	$ 0.00075
Warrants Exercisable	0
Exercisable through	-
Issuance Date Aug 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	1,147,471
Exercised	0
Forfeited	1,110,706
Outstanding	36,764
Exercise Price (in dollars per share)	$ 3.75
Warrants Exercisable	36,764
Exercisable through	Aug-16
Issuance Date Aug 2013 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	29,000
Exercised	29,000
Forfeited	0
Outstanding	0
Exercise Price (in dollars per share)	$ 0.525
Warrants Exercisable	0
Exercisable through	-
Issuance Date June 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	2,800,000
Exercised	2,546,667
Forfeited	0
Outstanding	253,333
Exercise Price (in dollars per share)	$ 5.22
Warrants Exercisable	253,333
Exercisable through	Jun-17
Issuance Date June 2014 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	84,000
Exercised	0
Forfeited	0
Outstanding	84,000
Exercise Price (in dollars per share)	$ 4.5
Warrants Exercisable	84,000
Exercisable through	Jun-17
Issuance Date Jan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued	3,858,201
Exercised	0
Forfeited	0
Outstanding	3,858,201
Exercise Price (in dollars per share)	$ 6.5
Warrants Exercisable	3,858,201
Exercisable through	Jun-18

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STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]		Additional Paid-in Capital [Member]	Accumulated deficit [Member]
Balance at Dec. 31, 2012	$ 3,982	$ 7		$ 51,483	$ (47,508)
Balance (in shares) at Dec. 31, 2012		10,005,644
Stock-based compensation related to warrants and stock granted to service providers	197			197	0
Stock-based compensation related to warrants and stock granted to service providers (in shares)		53,980
Stock-based compensation related to stock and options granted to directors and employees	674			674	0
Stock-based compensation related to stock and options granted to directors and employees (in shares)		50,666
Issuance of shares for public offering	2,497	$ 1		2,496	0
Issuance of shares for public offering (in shares)		1,568,628
Issuance of shares for private placement	250	$ 0	[1]	250	0
Issuance of shares for private placement (in shares)		55,555
Conversion of convertible loans	30	$ 0		30	0
Conversion of convertible loans (in shares)		8,408
Exercise of options	8	$ 0	[1]	8	0
Exercise of options (in shares)		8,000
Net loss	(4,899)	$ 0		0	(4,899)
Balance at Dec. 31, 2013	2,739	$ 8		55,138	(52,407)
Balance (in shares) at Dec. 31, 2013		11,750,881
Stock-based compensation related to warrants and stock granted to service providers	198	$ 0		198	0
Stock-based compensation related to warrants and stock granted to service providers (in shares)		53,419
Stock-based compensation related to stock and options granted to directors and employees	1,024	$ 0		1,024	0
Stock-based compensation related to stock and options granted to directors and employees (in shares)		50,667
Issuance of shares for private placement	9,554	$ 3		9,551	0
Issuance of shares for private placement (in shares)		2,800,000
Stock issued for warrants exchange	1,633	$ 0	[1]	1,633	0
Stock issued for warrants exchange (in shares)		388,735
Warrants liability classified as equity	42	$ 0		42	0
Exercise of warrants	701	$ 0	[1]	701	0
Exercise of warrants (in shares)		180,018
Exercise of options	30	$ 0	[1]	30
Exercise of options (in shares)		57,777
Net loss	(9,246)	$ 0		0	(9,246)
Balance at Dec. 31, 2014	6,675	$ 11		68,317	(61,653)
Balance (in shares) at Dec. 31, 2014		15,281,497
Stock-based compensation related to warrants and stock granted to service providers	108	$ 0		108	0
Stock-based compensation related to warrants and stock granted to service providers (in shares)		27,411
Stock-based compensation related to stock and options granted to directors and employees	668	$ 0		668	0
Stock-based compensation related to stock and options granted to directors and employees (in shares)		60,000
Exercise and reissuance of warrants	12,409	$ 2		12,407	0
Exercise and reissuance of warrants (in shares)		2,546,667
Exercise of liability classified warrants	145	$ 0	[1]	145	0
Exercise of liability classified warrants (in shares)		29,000
Exercise of equity classified warrants	2,333	$ 0	[1]	2,333	0
Exercise of equity classified warrants (in shares)		536,382
Net loss	(4,501)	$ 0		0	(4,501)
Balance at Jun. 30, 2015	$ 17,837	$ 13		$ 83,978	$ (66,154)
Balance (in shares) at Jun. 30, 2015		18,480,957

[1] Represents an amount less than $1.

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RESEARCH AND LICENSE AGREEMENT

6 Months Ended

Jun. 30, 2015

Research and License Agreement [Abstract]

Research and License Agreement [Text Block]

NOTE 4  - RESEARCH AND LICENSE AGREEMENT

The Company has a Research and License Agreement, as amended and restated, with Ramot. The Company obtained a waiver and release from Ramot pursuant to which Ramot agreed to an amended payment schedule regarding the Company's payment obligations under the Research and License Agreement and waived all claims against the Company resulting from the Company's previous defaults and non-payment under the Research and License Agreement. The waiver and release amended and restated the original payment schedule under the original agreement providing for payments during the initial research period and additional payments for any extended research period.

The Company is to pay Ramot royalties on Net Sales on a Licensed Product by Licensed Product and jurisdiction by jurisdiction basis as follow:

a) So long as the making, producing, manufacturing, using, marketing, selling, importing or exporting of such Licensed Product is covered by a Valid Claim or is covered by Orphan Drug Status in such jurisdiction – 5% of all Net Sales.

b) In the event the making, producing, manufacturing, using, marketing, selling, importing or exporting of such Licensed Product is not covered by a Valid Claim and not covered by Orphan Drug status in such jurisdiction – 3% of all Net Sales until the expiration of 15 years from the date of the First Commercial Sale of such Licensed Product in such jurisdiction.

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STOCK CAPITAL (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of options, Outstanding at beginning of period	792,110
Amount of options, Granted	6,667
Amount of options, Exercised	0
Amount of options, Cancelled	(11,667)
Amount of options, Outstanding at end of period	787,110
Amount of options, Vested and expected-to-vest at end of period	465,944
Weighted average exercise price, Outstanding at beginning of period (in dollars per share)	$ 3.4545
Weighted average exercise price, Granted (in dollars per share)	0.7500
Weighted average exercise price, Exercised (in dollars per share)	0
Weighted Average exercise Price, Cancelled (in dollars per share)	6.1071
Weighted average exercise price, Outstanding at end of period (in dollars per share)	3.3923
Weighted average exercise price, Vested and expected-to-vest at end of period (in dollars per share)	$ 2.8055
Aggregate intrinsic value, Outstanding at end of period (in dollars)	$ 171,345
Aggregate intrinsic value, Vested and expected-to-vest at end of period (in dollars)	$ 374,858