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PLURISTEM THERAPEUTICS INC.
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(Exact name of registrant as specified in its charter)
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Nevada
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98-0351734
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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MATAM Advanced Technology Park, Building No. 5, Haifa, Israel 31905
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(Address of principal executive offices)
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011-972-74-7108607
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(Registrant's telephone number)
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Large accelerated filer ☐
Non-accelerated filer ☐
(Do not check if a smaller reporting company) |
Accelerated filer ☒
Smaller reporting company ☐ |
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Page
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F - 2 - F - 3
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F - 4
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F - 5
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F - 6 - F - 7
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F - 8 - F - 9
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F - 10 - F - 21
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U.S. Dollars in thousands (except share and per share data)
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|
December 31, 2016
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June 30,
2016
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|||||||||||
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Note
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Unaudited
|
|||||||||||
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ASSETS
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||||||||||||
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CURRENT ASSETS:
|
||||||||||||
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Cash and cash equivalents
|
$
|
7,334
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$
|
6,223
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||||||||
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Short-term bank deposits
|
-
|
8,570
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||||||||||
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Restricted cash and short-term bank deposits
|
570
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542
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||||||||||
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Marketable securities
|
3
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14,039
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17,415
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|||||||||
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Accounts receivable from the Israel Innovation Authority (“IIA”)
|
287
|
2,228
|
||||||||||
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Other current assets
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723
|
618
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||||||||||
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Total current assets
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22,953
|
35,596
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||||||||||
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LONG-TERM ASSETS:
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||||||||||||
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Long-term deposits and restricted bank deposits
|
364
|
363
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||||||||||
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Severance pay fund
|
695
|
766
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||||||||||
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Property and equipment, net
|
8,287
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9,216
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||||||||||
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Total long-term assets
|
9,346
|
10,345
|
||||||||||
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Total assets
|
$
|
32,299
|
$
|
45,941
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||||||||
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INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
U.S. Dollars in thousands (except share and per share data)
|
|
December 31, 2016
|
June 30,
2016
|
|||||||||||
|
Note
|
Unaudited
|
|||||||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||
|
Trade payables
|
$
|
2,775
|
$
|
2,705
|
||||||||
|
Accrued expenses
|
1,079
|
1,369
|
||||||||||
|
Other accounts payable
|
1,523
|
1,701
|
||||||||||
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Total current liabilities
|
5,377
|
5,775
|
||||||||||
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LONG-TERM LIABILITIES
|
||||||||||||
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Accrued severance pay
|
828
|
910
|
||||||||||
|
Other long-term liabilities
|
980
|
1,100
|
||||||||||
|
Total long-term liabilities
|
1,808
|
2,010
|
||||||||||
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COMMITMENTS AND CONTINGENCIES
|
5
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|||||||||||
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STOCKHOLDERS’ EQUITY
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||||||||||||
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Share capital:
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6
|
|||||||||||
|
Common stock $0.00001 par value per share:
Authorized: 200,000,000 shares
Issued and outstanding: 81,305,951 shares as of
December 31, 2016, 80,268,999 shares as of June 30, 2016
|
1
|
1
|
||||||||||
|
Additional paid-in capital
|
199,343
|
198,432
|
||||||||||
|
Accumulated deficit
|
(174,691
|
)
|
(161,757
|
)
|
||||||||
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Other comprehensive income
|
461
|
1,480
|
||||||||||
|
Total stockholders' equity
|
25,114
|
38,156
|
||||||||||
|
Total liabilities and stockholders' equity
|
$
|
32,299
|
$
|
45,941
|
||||||||
|
U.S. Dollars in thousands (except share and per share data)
|
|
Six months ended December 31
|
Three months ended December 31,
|
|||||||||||||||||||
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Note
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||
|
Revenues
|
1c
|
-
|
$
|
2,847
|
-
|
$
|
2,752
|
|||||||||||||
|
Cost of revenues
|
-
|
(100
|
)
|
-
|
(97
|
)
|
||||||||||||||
|
Gross profit
|
-
|
2,747
|
-
|
2,655
|
||||||||||||||||
|
Operating Expenses:
|
||||||||||||||||||||
|
Research and development expenses
|
(11,512
|
)
|
(10,630
|
)
|
(5,481
|
)
|
(5,571
|
)
|
||||||||||||
|
Less participation by the IIA and other parties
|
1,312
|
1,165
|
279
|
234
|
||||||||||||||||
|
Research and development expenses, net
|
(10,200
|
)
|
(9,465
|
)
|
(5,202
|
)
|
(5,337
|
)
|
||||||||||||
|
General and administrative expenses
|
(3,010
|
)
|
(3,033
|
)
|
(1,446
|
)
|
(1,546
|
)
|
||||||||||||
|
Operating loss
|
(13,210
|
)
|
(9,751
|
)
|
(6,648
|
)
|
(4,228
|
)
|
||||||||||||
|
Financial income (expense), net
|
276
|
(87
|
)
|
38
|
266
|
|||||||||||||||
|
Net loss for the period
|
$
|
(12,934
|
)
|
$
|
(9,838
|
)
|
$
|
(6,610
|
)
|
$
|
(3,962
|
)
|
||||||||
|
Loss per share:
|
||||||||||||||||||||
|
Basic and diluted net loss per share
|
$
|
(0.16
|
)
|
$
|
(0.12
|
)
|
$
|
(0.08
|
)
|
$
|
(0.05
|
)
|
||||||||
|
Weighted average number of shares used in computing basic and diluted net loss per share
|
80,856,219
|
79,066,675
|
81,038,879
|
79,370,673
|
||||||||||||||||
|
U.S. Dollars in thousands
|
|
Six months ended
December 31,
|
Three months ended
December 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
Net loss
|
$
|
(12,934
|
)
|
$
|
(9,838
|
)
|
$
|
(6,610
|
)
|
$
|
(3,962
|
)
|
||||
|
Other comprehensive income (loss), net:
|
||||||||||||||||
|
Unrealized gain (loss) on available-for-sale marketable securities, net
|
(999
|
)
|
(1,346
|
)
|
(1,585
|
)
|
425
|
|||||||||
|
Reclassification adjustment of derivative instruments losses realized in net loss, net
|
-
|
(46
|
)
|
-
|
-
|
|||||||||||
|
Reclassification adjustment of available-for-sale marketable securities
gains (losses) realized in net loss, net
|
(20
|
)
|
20
|
(16
|
)
|
(99
|
)
|
|||||||||
|
Other comprehensive income (loss)
|
(1,019
|
)
|
(1,372
|
)
|
(1,601
|
)
|
326
|
|||||||||
|
Total comprehensive loss
|
$
|
(13,953
|
)
|
$
|
(11,210
|
)
|
$
|
(8,211
|
)
|
$
|
(3,636
|
)
|
||||
|
U.S. Dollars in thousands (except share and per share data)
|
|
Common Stock
|
Additional
Paid-in
|
Receivables on account
|
Accumulated Other
Comprehensive
|
Accumulated
|
Total Stockholders’
|
|||||||||||||||||||||||
|
Shares
|
Amount
|
Capital
|
of shares
|
Income (Loss)
|
Deficit
|
Equity
|
||||||||||||||||||||||
|
Balance as of July 1, 2015
|
78,771,905
|
$
|
1
|
$
|
195,303
|
$
|
(790
|
)
|
$
|
2,140
|
$
|
(138,511
|
)
|
$
|
58,143
|
|||||||||||||
|
Exercise of options by employees and non-employee consultants
|
25,000
|
(*
|
)
|
16
|
-
|
-
|
-
|
16
|
||||||||||||||||||||
|
939,499
|
(*
|
)
|
1,571
|
-
|
-
|
-
|
1,571
|
|||||||||||||||||||||
|
Proceeds related to issuance of common stock in a private placement (Note 6a)
|
-
|
-
|
-
|
790
|
-
|
-
|
790
|
|||||||||||||||||||||
|
-
|
-
|
39
|
-
|
-
|
-
|
39
|
||||||||||||||||||||||
|
Other comprehensive loss, net
|
-
|
-
|
-
|
-
|
(1,372
|
)
|
-
|
(1,372
|
)
|
|||||||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
-
|
(9,838
|
)
|
(9,838
|
)
|
|||||||||||||||||||
|
Balance as of December 31, 2015 (unaudited)
|
79,736,404
|
$
|
1
|
$
|
196,929
|
$
|
-
|
$
|
768
|
$
|
(148,349
|
)
|
$
|
49,349
|
||||||||||||||
|
(*) Less than $1
|
|
INTERIM CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
U.S. Dollars in thousands (except share and per share data)
|
|
Common Stock
|
Additional Paid-in
|
Accumulated Other
Comprehensive
|
Accumulated
|
Total Stockholders’
|
||||||||||||||||||||
|
Shares
|
Amount
|
Capital
|
Income (Loss)
|
Deficit
|
Equity
|
|||||||||||||||||||
|
Balance as of July 1, 2016
|
80,268,999
|
$
|
1
|
$
|
198,432
|
$
|
1,480
|
$
|
(161,757
|
)
|
$
|
38,156
|
||||||||||||
|
Exercise of options by employees
|
6,000
|
(*
|
)
|
4
|
-
|
-
|
4
|
|||||||||||||||||
|
Stock-based compensation to employees, directors and non-employee consultants
|
1,030,952
|
(*
|
)
|
907
|
-
|
-
|
907
|
|||||||||||||||||
|
Other comprehensive loss, net
|
-
|
-
|
-
|
(1,019
|
)
|
-
|
(1,019
|
)
|
||||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
(12,934
|
)
|
(12,934
|
)
|
||||||||||||||||
|
Balance as of December 31, 2016 (unaudited)
|
81,305,951
|
$
|
1
|
$
|
199,343
|
$
|
461
|
$
|
(174,691
|
)
|
$
|
25,114
|
||||||||||||
|
(*) Less than $1
|
|
U.S. Dollars in thousands
|
|
Six months ended December 31,
|
||||||||
|
2016
|
2015
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net loss
|
$
|
(12,934
|
)
|
$
|
(9,838
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
|
Depreciation
|
1,110
|
1,031
|
||||||
|
Gain from sale of property and equipment, net
|
(4
|
) |
(1
|
) | ||||
|
Accretion of discount, amortization of premium and changes in accrued interest of marketable securities
|
(154
|
) |
146
|
|||||
|
Gain from sale of investments of available-for-sale marketable securities
|
(20
|
) |
(20
|
) | ||||
|
Stock-based compensation to employees, directors and non-employees consultants
|
907
|
1,571
|
||||||
|
Decrease in accounts receivable from the IIA
|
1,941
|
1,541
|
||||||
|
Decrease (increase) in other current assets
|
(105
|
)
|
1,032
|
|||||
|
Increase (decrease) in trade payables
|
160
|
(953
|
) | |||||
|
Increase (decrease) in other accounts payable, accrued expenses and other long-term liabilities
|
(588
|
) |
1,051
|
|||||
|
Decrease in deferred revenues
|
-
|
(2,847
|
) | |||||
|
Decrease in advance payment from United
|
-
|
(93
|
) | |||||
|
Increase in interest receivable on short-term deposits
|
-
|
(39
|
) | |||||
|
Linkage differences and interest on short and long-term deposits and restricted bank deposits
|
(1
|
)
|
24
|
|||||
|
Accrued severance pay, net
|
(11
|
)
|
6
|
|||||
|
Net cash used by operating activities
|
$
|
(9,699
|
)
|
$
|
(7,389
|
)
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Purchase of property and equipment
|
$
|
(273
|
)
|
$
|
(1,471
|
)
|
||
|
Proceeds from sale of property and equipment
|
6
|
3
|
||||||
|
Repayment of (investment in) short-term deposits
|
8,542
|
(8,794
|
)
|
|||||
|
Repayment of long-term deposits and restricted bank deposits
|
-
|
5
|
||||||
|
Proceeds from sale of available-for-sale marketable securities
|
3,813
|
1,054
|
||||||
|
Proceeds from redemption of available-for-sale marketable securities
|
280
|
651
|
||||||
|
Investment in available-for-sale marketable securities
|
(1,562
|
)
|
(2,543
|
)
|
||||
|
Net cash provided by (used in) investing activities
|
$
|
10,806
|
$
|
(11,095
|
)
|
|||
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
U.S. Dollars in thousands
|
|
Six months ended December 31,
|
||||||||
|
2016
|
2015
|
|||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Proceeds related to issuance of common stock and warrants, net of issuance costs
|
$
|
-
|
$
|
790
|
||||
|
Exercise of options
|
4
|
16
|
||||||
|
Net cash provided by financing activities
|
$
|
4
|
$
|
806
|
||||
|
Increase (decrease) in cash and cash equivalents
|
1,111
|
(17,678
|
)
|
|||||
|
Cash and cash equivalents at the beginning of the period
|
6,223
|
22,626
|
||||||
|
Cash and cash equivalents at the end of the period
|
$
|
7,334
|
$
|
4,948
|
||||
|
(a) Supplemental disclosure of cash flow activities:
|
||||||||
|
Cash paid during the period for:
|
||||||||
|
Taxes paid due to non-deductible expenses
|
$
|
16
|
$
|
43
|
||||
|
(b) Supplemental disclosure of non-cash activities:
|
||||||||
|
Purchase of property and equipment on credit
|
$
|
36
|
$
|
132
|
||||
|
Share consideration to contractor
|
$
|
-
|
$
|
39
|
||||
|
U.S. Dollars in thousands (except share and per share amounts)
|
| a. |
Pluristem Therapeutics Inc., a Nevada corporation, was incorporated on May 11, 2001. Pluristem Therapeutics Inc. has a wholly owned subsidiary, Pluristem Ltd. (the “Subsidiary”), which is incorporated under the laws of the State of Israel. Pluristem Therapeutics Inc. and the Subsidiary are referred to as the “Company” or “Pluristem”.
The Company’s shares of common stock are traded on the NASDAQ Capital Market under the symbol “PSTI”, and on the Tel-Aviv Stock Exchange under the symbol “PLTR”.
|
| c. |
License Agreements:
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| a. |
Unaudited Interim Financial Information
|
| b. |
Significant Accounting Policies
|
| c. |
Use of estimates
|
| d. |
Fair value of financial instruments
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, short-term and restricted bank deposits, trade payable and other accounts payable and accrued liabilities, approximate fair value because of their generally short term maturities.
The Company measures its investments in marketable securities and derivative instruments at fair value under ASC 820, “Fair Value Measurements and Disclosures”. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| e. |
Derivative financial instruments
|
| f. |
Recent Accounting Pronouncement
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
|
December 31, 2016 (Unaudited)
|
June 30, 2016
|
|||||||||||||||||||||||||||||||||||
|
Amortized
cost
|
Gross
unrealized
gain
|
Gross
unrealized
loss
|
Fair
Value
|
Amortized
cost
|
Gross
unrealized
gain
|
Gross
unrealized
loss
|
Other-than-
temporary
impairment
|
Fair
value
|
||||||||||||||||||||||||||||
|
Available-for-sale - matures within one year:
|
||||||||||||||||||||||||||||||||||||
|
Stock and index linked notes
|
$
|
11,445
|
$
|
1,496
|
$
|
(1,058
|
)
|
$
|
11,883
|
$
|
11,599
|
$
|
1,594
|
$
|
(208
|
)
|
$
|
(38
|
)
|
$
|
12,947
|
|||||||||||||||
|
Government debentures – fixed interest rate
|
-
|
-
|
-
|
-
|
786
|
12
|
-
|
-
|
798
|
|||||||||||||||||||||||||||
|
Corporate debentures – fixed interest rate
|
103
|
2
|
-
|
105
|
439
|
7
|
-
|
-
|
446
|
|||||||||||||||||||||||||||
|
$
|
11,548
|
$
|
1,498
|
$
|
(1,058
|
)
|
$
|
11,988
|
$
|
12,824
|
$
|
1,613
|
$
|
(208
|
)
|
$
|
(38
|
)
|
$
|
14,191
|
||||||||||||||||
|
Available-for-sale - matures after one year through five years:
|
||||||||||||||||||||||||||||||||||||
|
Government debentures – fixed interest rate
|
616
|
21
|
-
|
637
|
717
|
27
|
-
|
-
|
744
|
|||||||||||||||||||||||||||
|
Corporate debentures – fixed interest rate
|
1,399
|
7
|
(7
|
)
|
1,399
|
2,403
|
47
|
-
|
-
|
2,450
|
||||||||||||||||||||||||||
|
$
|
2,015
|
$
|
28
|
$
|
(7
|
)
|
$
|
2,036
|
$
|
3,120
|
$
|
74
|
$
|
-
|
$
|
-
|
$
|
3,194
|
||||||||||||||||||
|
Available-for-sale - matures after five years through ten years:
|
||||||||||||||||||||||||||||||||||||
|
Corporate debentures – fixed interest rate
|
15
|
-
|
-
|
15
|
29
|
1
|
-
|
-
|
30
|
|||||||||||||||||||||||||||
|
$
|
15
|
$
|
-
|
$
|
-
|
$
|
15
|
$
|
29
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
30
|
|||||||||||||||||||
|
$
|
13,578
|
$
|
1,526
|
$
|
(1,065
|
)
|
$
|
14,039
|
$
|
15,973
|
$
|
1,688
|
$
|
(208
|
)
|
$
|
(38
|
)
|
$
|
17,415
|
||||||||||||||||
|
Less than 12 months
|
12 months or greater
|
|||||||||||||||
|
Fair Value
|
Gross
unrealized loss |
Fair Value
|
Gross
unrealized loss |
|||||||||||||
|
As of December 31, 2016 (Unaudited)
|
$
|
2,222
|
$
|
(1,025
|
)
|
$
|
625
|
$
|
(40
|
)
|
||||||
|
As of June 30, 2016
|
$
|
1,258
|
$
|
(143
|
)
|
$
|
563
|
$
|
(65
|
)
|
||||||
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
|
December 31, 2016 (Unaudited)
|
June 30, 2016
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 1
|
Level 2
|
|||||||||||||
|
Marketable securities
|
$
|
9,475
|
$
|
4,564
|
$
|
11,228
|
$
|
6,187
|
||||||||
|
Foreign currency derivative instruments
|
-
|
(1
|
)
|
-
|
65
|
|||||||||||
|
Total financial assets
|
$
|
9,475
|
$
|
4,563
|
$
|
11,228
|
$
|
6,252
|
||||||||
|
December 31, 2016 (Unaudited)
|
June 30, 2016
|
|||||||||
| Balance Sheet presentation | Fair Value | Balance Sheet presentation | Fair Value | |||||||
|
Derivatives not designated as hedge instruments
|
Other accounts payable
|
$
|
(1
|
)
|
Other current assets
|
$
|
65
|
|||
|
Total
|
$
|
(1
|
)
|
$
|
65
|
|||||
| a. |
An amount of $570 of cash and deposits was pledged by the Subsidiary to secure the derivatives and hedging transactions, credit line and bank guarantees.
|
| b. |
Under the Law for the Encouragement of Industrial Research and Development, 1984, (the “Research Law”), research and development programs that meet specified criteria and are approved by the IIA are eligible for grants of up to 50% of the project’s expenditures, as determined by the research committee, in exchange for the payment of royalties from the sale of products developed under the program. Regulations under the Research Law generally provide for the payment of royalties to the IIA of 3% to 4% on sales of products and services derived from a technology developed using these grants until 100% of the dollar-linked grant is repaid. The Company’s obligation to pay these royalties is contingent on its actual sale of such products and services. In the absence of such sales, no payment is required. Outstanding balance of the grants will be subject to interest at a rate equal to the 12 month LIBOR applicable to dollar deposits that is published on the first business day of each calendar year. Following the full repayment of the grant, there is no further liability for royalties.
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| a. |
From October 2014 through May 2015, the Company issued shares of common stock in private placements to an investor. In October 2014, the Company issued 200,000 shares of common stock to an investor for aggregate cash consideration of $528. In February 2015, the Company issued an additional 200,000 shares of common stock to an investor for aggregate cash consideration of $586. In May 2015, the Company issued an additional 300,000 shares of common stock to an investor, for which the consideration in the amount of $790 was received from the investor in September 2015.
|
| b. |
In February 2015, the Subsidiary entered into an agreement with a contractor for the construction of its new laboratories facility for a consideration of approximately NIS 3.3 million (approximately $841). Under the terms of the agreement, the Subsidiary agreed to pay part of the NIS 3.3 million consideration using 100,004 restricted shares of common stock of the Company, linked to performance milestones with respect to the new laboratories construction and which serve as a guarantee. These restricted shares were released to the contractor in December 2014 upon the successful completion of the construction.
In May 2015, the Subsidiary entered into an addendum to the agreement with the contractor for the design and construction of additional office space renovations in the Subsidiary leased facility for additional consideration of approximately NIS 4 million (approximately $1,032) which is comprised of NIS 3 million (approximately $774) in cash and 90,000 restricted shares which were issued to the contractor in February 2016.
The Company accounted for the abovementioned stock-based payment awards to the contractor in accordance with ASC 505-50, “Equity based payments to non-employees”. As performance by the contractor was not deemed complete while the awards were forfeitable (or not issued), the Company measured the fair value of the awards at each reporting period through the performance completion date (until completion of the construction work).
The construction work was initiated in June 2015. On October 30, 2015, the contractor completed the agreed construction milestones. As a result, the Company recognized the fair value of the stock-based payments awards, using the fair value of the Company's shares on October 30, 2015, totaling approximately $302 as stock-based payment to the contractor in "Additional paid-in capital" with a corresponding amount included in "Property and equipment, net".
|
| c. |
Options, warrants, restricted stocks and restricted stock units to employees, directors and consultants:
|
| 1. |
Options to employees and directors:
|
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| c. |
Options, warrants, restricted stocks and restricted stock units to employees, directors and consultants (cont.):
|
|
Six months ended December 31, 2016 (Unaudited)
|
||||||||||||||||
|
Number
|
Weighted Average
Exercise Price
|
Weighted Average
Remaining Contractual
Terms (in years)
|
Aggregate Intrinsic
Value Price
|
|||||||||||||
|
Options outstanding at beginning of period
|
1,771,700
|
$
|
3.759
|
|||||||||||||
|
Options forfeited
|
(67,550
|
)
|
$
|
3.90
|
||||||||||||
|
Options exercised
|
(6,000
|
)
|
$
|
0.62
|
||||||||||||
|
Options outstanding at end of the period
|
1,698,150
|
$
|
3.764
|
0.678
|
$
|
294
|
||||||||||
|
Options exercisable at the end of the period
|
1,698,150
|
$
|
3.764
|
0.678
|
$
|
294
|
||||||||||
|
Options vested
|
1,698,150
|
$
|
3.764
|
0.678
|
$
|
294
|
||||||||||
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| c. |
Options, warrants, restricted stocks and restricted stock units to employees, directors and consultants (cont.):
|
| 2. |
Options and warrants to non-employees:
|
|
Six months ended December 31, 2016 (Unaudited)
|
||||||||||||||||
|
Number
|
Weighted Average
Exercise Price
|
Weighted Average
Remaining Contractual
Terms (in years)
|
Aggregate Intrinsic
Value Price
|
|||||||||||||
|
Options and warrants outstanding at beginning of period
|
237,300
|
$
|
5.40
|
|||||||||||||
|
Options granted
|
46,800
|
$
|
0.00
|
|||||||||||||
|
Options forfeited
|
(5,000
|
)
|
$
|
3.80
|
||||||||||||
|
Options and warrants outstanding at end of the period
|
279,100
|
$
|
4.52
|
3.12
|
$
|
152
|
||||||||||
|
Options and warrants exercisable at the end of the period
|
242,750
|
$
|
5.20
|
2.19
|
$
|
151
|
||||||||||
|
Options not vested, expected to vest
|
279,100
|
$
|
4.52
|
3.12
|
$
|
152
|
||||||||||
|
Six months ended December 31,
|
Three months ended December 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Research and development expenses
|
$
|
3
|
$
|
1
|
$
|
3
|
$
|
-
|
||||||||
|
General and administrative expenses
|
$
|
14
|
$
|
-
|
$
|
14
|
$
|
-
|
||||||||
|
$
|
17
|
$
|
1
|
$
|
17
|
$
|
-
|
|||||||||
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| c. |
Options, warrants, restricted stock and restricted stock units to employees, directors and consultants (cont.):
|
|
Number
|
||||
|
Unvested at the beginning of period
|
1,906,619
|
|||
|
Granted
|
2,386,365
|
|||
|
Forfeited
|
(70,468
|
)
|
||
|
Vested
|
(897,480
|
)
|
||
|
Unvested at the end of the period
|
3,325,036
|
|||
|
Expected to vest after December 31, 2016
|
3,159,307
|
|||
|
Six months ended December 31,
|
Three months ended December 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Research and development expenses
|
$
|
210
|
$
|
483
|
$
|
100
|
$
|
163
|
||||||||
|
General and administrative expenses
|
439
|
1,020
|
177
|
446
|
||||||||||||
|
$
|
649
|
$
|
1,503
|
$
|
277
|
$
|
609
|
|||||||||
|
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
U.S. Dollars in thousands (except share and per share amounts)
|
| c. |
Options, warrants, restricted stock and restricted stock units to employees, directors and consultants (cont.):
|
|
Number
|
||||
|
Unvested at the beginning of period
|
26,000
|
|||
|
Granted
|
168,221
|
|||
|
Vested
|
(133,472
|
)
|
||
|
Unvested at the end of the period
|
60,749
|
|||
|
Six months ended December 31,
|
Three months ended December 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Research and development expenses
|
$
|
7
|
$
|
20
|
$
|
3
|
$
|
10
|
||||||||
|
General and administrative expenses
|
234
|
48
|
125
|
45
|
||||||||||||
|
$
|
241
|
$
|
68
|
$
|
128
|
$
|
55
|
|||||||||
|
·
|
the expected development and potential benefits from our products in treating various medical conditions;
|
|
·
|
the clinical trials to be conducted according to our license agreement with CHA Biotech Co. Ltd.;
|
|
·
|
our plan to execute our strategy independently, using our own personnel, and through relationships with research and clinical institutions or in collaboration with other companies;
|
|
·
|
the prospects of entering into additional license agreements, or other forms of cooperation with other companies and medical institutions;
|
|
·
|
our pre-clinical and clinical trials plans, including timing of initiation, enrollment and conclusion of trials;
|
|
·
|
achieving regulatory approvals, including under accelerated paths;
|
|
·
|
receipt of future funding from the Israel Innovation Authority, or IIA;
|
|
·
|
our marketing plans, including timing of marketing our first product, PLX-PAD;
|
|
·
|
developing capabilities for new clinical indications of placenta expanded (PLX) cells and new products;
|
|
·
|
our estimations regarding the size of the global market for our product candidates;
|
|
·
|
our expectations regarding our production capacity;
|
|
·
|
our expectation to demonstrate a real-world impact and value from our pipeline, technology platform and commercial-scale manufacturing capacity;
|
|
·
|
our expectations regarding our short- and long-term capital requirements;
|
|
·
|
the proposed private placement of our common stock and warrants pursuant to the term sheet with Innovative Medical Management Co., Ltd., or Innovative Medical, described in the overview below, the terms of such offering, the plan to enter into definitive agreements, as well the expected approval of Innovative Medical shareholders of such term sheet;
|
|
·
|
the proposed joint venture, described in the overview below, to be established with Sosei Corporate Venture Capital Ltd. for the clinical development and commercialization of Pluristem's PLX-PAD cell therapy product in Japan and the plan to enter into definitive agreements;
|
|
·
|
our outlook for the coming months and future periods, including but not limited to our expectations regarding future revenue and expenses; and
|
|
·
|
information with respect to any other plans and strategies for our business.
|
|
4.1
|
Form of Warrant (incorporated by reference to Exhibit 4.1 of our current report on Form 8-K filed on January 20, 2017).
|
|
10.1*
|
Binding Term Sheet by and between Pluristem Therapeutics Inc. and Innovative Medical Management Co., Ltd., dated October 25, 2016. (English version only)
|
|
10.2*
|
Binding Term Sheet by and between Pluristem Therapeutics Inc. and Sosei Corporate Venture Capital Ltd., dated December 20, 2016.
|
|
31.1*
|
Rule 13a-14(a) Certification of Chief Executive Officer.
|
|
31.2*
|
Rule 13a-14(a) Certification of Chief Financial Officer.
|
|
32.1**
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
|
|
32.2**
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
|
|
101 *
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Interim Condensed Consolidated Balance Sheets, (ii) the Interim Condensed Consolidated Statements of Operations, (iii) the Interim Condensed Consolidated Statements of Comprehensive Loss, (iv) the Interim Condensed Statements of Changes in Equity, (v) the Interim Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Interim Condensed Consolidated Financial Statements, tagged as blocks of text and in detail.
|
|
Use of Proceeds:
|
The proceeds will be used for working capital purposes.
|
|
Proposed Timeline:
|
Both parties agree to use commercially reasonable best efforts to (i) complete the business, legal, IP, and financial due diligence, all to the Investor’s reasonable satisfaction; and (ii) enter into definitive investment agreement by December 26, 2016. Notwithstanding the timeline herein, the parties agree to use best efforts to complete the due diligence and, if the due diligence is completed to the Investor’s reasonable satisfaction, enter into the definitive investment agreement as soon as practicable and before December 26, 2016.
Both parties agree to use commercially reasonable best efforts to satisfy all the closing conditions.
|
|
Closing Conditions:
|
Closing conditions shall include, among other appropriate or customary conditions:
● Satisfactory completion of business, legal, IP and financial due diligence, all to the Investor’s reasonable satisfaction;
● The Company shall have obtained its internal corporate approval;
● The Company shall have obtained approval of the issuance of the Shares and Warrant from Nasdaq；
● The Investor shall have obtained its internal corporate approval;
● The senior management team and key employees of the Company shall have entered into a confidentiality, non-compete,
non-solicitation and invention assignment agreement and an employment agreement containing a commitment of
service period in form and substance reasonably satisfactory to the parties; and
● All requisite PRC regulatory approvals as set forth below shall have been obtained:
o filing with the provincial counterpart of the PRC National Development and Reform Commission;
o filing with the provincial counterpart of the PRC Ministry of Commerce;
o filing with the PRC State Administration of Foreign Exchange or its designated bank authorizing the remittance of consideration
out of the PRC.
|
|
Binding Term Sheet:
|
This Term Sheet shall become binding in all aspects upon the approval of the Investor’s shareholders’ meeting, which the Investor anticipates will be held no later than November 9, 2016.
The Investor anticipates the Board of Directors of the Investor will be held no later than October 25, 2016. Upon the approval of the Investor’s Board of Directors of this Term Sheet, a written announcement (substantially in the form attached hereto as appendix A) shall be provided to the Company by the Investor. Following such written announcement, both parties will jointly issue a public announcement in accordance with the applicable listing securities rules and securities regulations.
Upon the approval of the Investor’s shareholders’ meeting of this Term Sheet, a written announcement (substantially in the form attached hereto as appendix B) shall be provided to the Company by the Investor.
|
|
Execution
|
This Term Sheet will be executed in four original copies and each party shall hold two original copies. Emailed or facsimile copies of signatures shall be deemed to be originals for purposes of the effectiveness of this Term Sheet.
|
|
COMPANY
PLURISTEM THERAPEUTICS INC.
|
INVESTOR
INNOVATIVE MEDICAL MANAGEMENT CO., LTD.
|
|
By: /s/ Zami Aberman
Name: Zami Aberman
Title: Chairman & CEO
|
By: /s/ Chen Haijun
Name: Chen Haijun
Title: Chairman
|
|
|
|
|
TERM SHEET
BY AND BETWEEN
PLURISTEM LTD.
AND
SOSEI CORPORATE VENTURE CAPITAL LTD.
WITH RESPECT TO ESTABLISHMENT AND OPERATION OF A JOINT VENTURE
December 19, 2016
|
|
Company / Licensor:
|
Pluristem Ltd. ("Pluristem").
|
|
Investor:
|
Sosei Corporate Venture Capital Ltd. ("Sosei").
|
|
The Transaction:
|
The parties shall establish and operate a joint venture in Japan in order to commercialize and bear responsibility for all marketing, distribution, clinical and regulatory development of Pluristem's proprietary PLX-PAD cells based product (The "Product") for the Indication (the "Indication") in the Territory (the "Transaction" and the "Purpose").
|
|
Establishment of Joint Venture:
|
The joint venture shall be set up as follows:
1. Pluristem shall establish a wholly owned subsidiary (Kabushiki Kaisha) in Japan with nominal capital contribution
("NewCo");
2. Pluristem shall contribute a perpetual License (as defined below) to NewCo;
3. Promptly after the establishment of NewCo and the grant of the License, Sosei shall invest and shall cause other investors (together with Sosei, the "Investors") to invest an amount of 1.3B Japanese Yen (JPY) in NewCo (out of which 400M JPY will be invested by Sosei), in return to issuance of shares in NewCo to the Investors, so that following such investment Pluristem shall hold 35% and the Investors shall hold 65% of the issued and outstanding share capital (ordinary shares) of NewCo (the "Investment"). It is agreed that Sosei will make best effort to secure the Investment in the amount of 1.3B JPY (the "Investment Amount").
In the event that NewCo will raise additional funding for the Purpose in excess of the Investment Amount, any additional funding up to a total funding amount of 1.7B JPY will not in any way dilute Pluristem's 35% holdings in NewCo. Mechanics for such structure to be agreed in the Definitive Agreement.
|
|
Board of Directors,
Representative Director and
CEO of the Joint Venture:
|
The board of directors of NewCo shall consist of 3 members, 1 to be appointed by Pluristem, 1 to be appointed by Sosei and 1 to be appointed and agreed upon by Pluristem and Sosei. NewCo's representative director and CEO shall be appointed and agreed upon by both Pluristem and Sosei. If additional board seats will be granted, the number of board seats must be mutually agreed upon by both Sosei and Pluristem.
|
|
Use of Investment Proceeds:
|
The funds of the Investment shall be used for the Purpose.
|
|
License:
|
Pluristem shall contribute NewCo a perpetual, free, exclusive, non transferable, non sublicenseable, non assignable license to commercialize the Product for the Indication in the Territory (the "License"). It is agreed that NewCo would not pay any payment for the License.
NewCo shall have the right to sublicense the commercial rights of the Product for the Indication in the Territory to a third party, provided that NewCo provides Pluristem with a satisfactory reason for sublicensing and subject to approval by Pluristem. Pluristem shall not deny the sublicense unless the third party is a competitor of Pluristem or the terms and conditions of the deal is not of financial benefit to Pluristem.
An option to license additional Product indications will be granted to NewCo. Terms and conditions will be negotiated and agreed at a mutually agreed time.
|
|
Indication:
|
Critical Limb Ischemia.
|
|
Territory:
|
Japan.
|
|
Manufacturing; Regulation and
Clinical Development; Support:
|
Pluristem shall maintain the exclusive right for the manufacturing of the Product. Any and all regulatory filings, registrations and activities (including those performed by NewCo) with respect to the Product for Indication in the Territory (the "Filings") shall be owned by NewCo and shall be used by NewCo for the Purpose only.
Pluristem shall provide NewCo with any supportive information required for the Purpose, including any and all clinical and pre-clinical development information (including without limitation any relevant clinical trials information), and the allocation of cost and expenses thereof to be agreed between the parties.
All of NewCo's information, data and documentation, including those related to the Filings, shall be available to Pluristem for any use in relation to its Products for any indication outside the Territory with no limitations and at no cost.
NewCo shall have access to relevant information reasonably related to the Product for the Indication to ensure timely development.
|
|
Ownership of Rights:
|
Any and all proprietary rights in any patents and/or know-how and/or intellectual property rights related to the Product and/or the PLX-PAD cells and any research and/or derivatives thereof, whether currently owned by Pluristem, or developed by Pluristem and/or will be developed by Pluristem and/or NewCo, shall be exclusively owned by Pluristem ("Pluristem Intellectual Property").
Pluristem shall grant NewCo with an exclusive, non-transferable, non sub-licensable, royalty-free right to use the Pluristem Intellectual Property to develop and commercialize the Product for the Indication in the Territory for the Purpose.
Pluristem shall have full access to all data, information and know-how developed by NewCo.
|
|
NewCo's Obligations:
|
NewCo shall use commercially reasonable efforts to develop, commercialize and distribute the Product for the Indication in the Territory and to obtain any and all regulatory approvals for the Product at NewCo's sole expense.
|
|
Sosei's Obligations
|
Sosei shall provide NewCo with certain services for no charge.
|
|
Costs:
|
NewCo shall bear and cover any and all direct and indirect costs and expenses related to the Product development and/or commercialization activities.
NewCo shall pay to Pluristem an amount to be negotiated in good faith and agreed upon in the Definitive Agreement (as defined below) for supplies of the Product from Pluristem or its designee.
|
|
Earn Out Payments:
|
NewCo shall pay to Pluristem earn out fees out of the amounts billed for sales of the Product by NewCo or any of its affiliates to third parties at a rate to be negotiated in good faith and agreed upon in the Definitive Agreement.
|
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Reports and Audit Rights:
|
NewCo will provide quarterly or more frequent reports with respect to commercialization and sales of the Product. The content and delivery schedule of such report shall be defined in the Definitive Agreement.
Pluristem shall have audit rights with respect to NewCo's books and records as will be defined in the Definitive Agreement.
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Term and Termination:
|
The term of the Definitive Agreement shall commence as of the execution thereof and shall continue as shall be set forth in the Definitive Agreement. Rights of termination shall be set forth in the Definitive Agreement, including in case that the development and commercialization are not completed within a period to be agreed upon in the Definitive Agreement.
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Definitive Agreement and Conditions to Closing:
|
In addition to the terms and conditions referred to in this Term Sheet, the definitive agreement(s) for the Transaction (the "Definitive Agreement") will contain terms and conditions of the License, sale of Products to NewCo as well as customary provisions, including representations and warranties and matters for which Pluristem has veto rights, appropriate for a transaction of the type contemplated herein.
The approval of the Israel Innovation Authority (previously known as Office of Chief Scientist) at the Israeli Ministry of Economy and Industry will be required for the closing of the Transaction.
|
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Termination of Negotiations and Approval Process:
|
Each party shall be under no obligation to proceed with the Transaction at any time, and for any reason whatsoever, until the Definitive Agreements are duly executed, and either party shall bear no liability whatsoever in the event it decides, at any time and for any reason, not to proceed with the Transaction or the execution of the Definitive Agreement. Moreover, the approvals of the respective board of directors of the parties for the Transaction and the Definitive Agreement (which is at the full discretion of the respective board of directors) will be a condition to execution of the Definitive Agreement. For the sake of removal of all doubt, either party shall bear no liability whatsoever in the event that its respective board of directors decides, for any reason, not to approve the Transaction or the Definitive Agreement.
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Date: February 8, 2017
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||
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/s/ Zami Aberman
—————————————— Zami Aberman Chief Executive Officer (Principal Executive Officer) |
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Date: February 8, 2017
|
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/s/ Yaky Yanay
—————————————— Yaky Yanay Chief Financial Officer, Chief Operating Officer and President (Principal Financial Officer) |
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1.
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 8, 2017
|
By: /s/ Zami Aberman
—————————————— Zami Aberman Chief Executive Officer |
|
1.
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 8, 2017
|
By: /s/ Yaky Yanay
—————————————— Yaky Yanay Chief Financial Officer, Chief Operating Officer and President |
Document and Entity Information - shares |
6 Months Ended | |
|---|---|---|
Dec. 31, 2016 |
Feb. 02, 2017 |
|
| Document and Entity Information [Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Dec. 31, 2016 | |
| Entity Registrant Name | PLURISTEM THERAPEUTICS INC | |
| Entity Central Index Key | 0001158780 | |
| Current Fiscal Year End Date | --06-30 | |
| Document Fiscal Year Focus | 2017 | |
| Document Fiscal Period Focus | Q2 | |
| Entity Filer Category | Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 96,065,936 |
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares |
Dec. 31, 2016 |
Jun. 30, 2016 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Common stock, par value per share | $ 0.00001 | $ 0.00001 |
| Common stock, shares authorized | 200,000,000 | 200,000,000 |
| Common stock, shares issued | 81,305,951 | 80,268,999 |
| Common stock, shares outstanding | 81,305,951 | 80,268,999 |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| Income Statement [Abstract] | ||||
| Revenues | $ 2,752 | $ 2,847 | ||
| Cost of revenues | (97) | (100) | ||
| Gross profit | 2,655 | 2,747 | ||
| Operating Expenses: | ||||
| Research and development expenses | (5,481) | (5,571) | (11,512) | (10,630) |
| Less participation by the IIA and other parties | 279 | 234 | 1,312 | 1,165 |
| Research and development expenses, net | (5,202) | (5,337) | (10,200) | (9,465) |
| General and administrative expenses | (1,446) | (1,546) | (3,010) | (3,033) |
| Operating loss | (6,648) | (4,228) | (13,210) | (9,751) |
| Financial income (expense), net | 38 | 266 | 276 | (87) |
| Net loss for the period | $ (6,610) | $ (3,962) | $ (12,934) | $ (9,838) |
| Loss per share: | ||||
| Basic and diluted net loss per share | $ (0.08) | $ (0.05) | $ (0.16) | $ (0.12) |
| Weighted average number of shares used in computing basic and diluted net loss per share | 81,038,879 | 79,370,673 | 80,856,219 | 79,066,675 |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net loss | $ (6,610) | $ (3,962) | $ (12,934) | $ (9,838) |
| Other comprehensive income (loss), net: | ||||
| Unrealized gain (loss) on available-for-sale marketable securities, net | (1,585) | 425 | (999) | (1,346) |
| Reclassification adjustment of derivative instruments losses realized in net loss, net | (46) | |||
| Reclassification adjustment of available-for-sale marketable securities gains (losses) realized in net loss, net | (16) | (99) | (20) | 20 |
| Other comprehensive income (loss) | (1,601) | 326 | (1,019) | (1,372) |
| Total comprehensive loss | $ (8,211) | $ (3,636) | $ (13,953) | $ (11,210) |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss | $ (12,934) | $ (9,838) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 1,110 | 1,031 |
| Gain from sale of property and equipment, net | (4) | (1) |
| Accretion of discount, amortization of premium and changes in accrued interest of marketable securities | (154) | 146 |
| Gain from sale of investments of available-for-sale marketable securities | (20) | (20) |
| Stock-based compensation to employees, directors and non-employees consultants | 907 | 1,571 |
| Decrease in accounts receivable from the IIA | 1,941 | 1,541 |
| Decrease (increase) in other current assets | (105) | 1,032 |
| Increase (decrease) in trade payables | 160 | (953) |
| Increase (decrease) in other accounts payable, accrued expenses and other long-term liabilities | (588) | 1,051 |
| Decrease in deferred revenues | (2,847) | |
| Decrease in advance payment from United | (93) | |
| Increase in interest receivable on short-term deposits | (39) | |
| Linkage differences and interest on short and long-term deposits and restricted bank deposits | (1) | 24 |
| Accrued severance pay, net | (11) | 6 |
| Net cash used by operating activities | (9,699) | (7,389) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (273) | (1,471) |
| Proceeds from sale of property and equipment | 6 | 3 |
| Repayment of (investment in) short-term deposits | 8,542 | (8,794) |
| Repayment of long-term deposits and restricted bank deposits | 5 | |
| Proceeds from sale of available-for-sale marketable securities | 3,813 | 1,054 |
| Proceeds from redemption of available-for-sale marketable securities | 280 | 651 |
| Investment in available-for-sale marketable securities | (1,562) | (2,543) |
| Net cash provided by (used in) investing activities | 10,806 | (11,095) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds related to issuance of common stock and warrants, net of issuance costs | 790 | |
| Exercise of options | 4 | 16 |
| Net cash provided by financing activities | 4 | 806 |
| Increase (decrease) in cash and cash equivalents | 1,111 | (17,678) |
| Cash and cash equivalents at the beginning of the period | 6,223 | 22,626 |
| Cash and cash equivalents at the end of the period | 7,334 | 4,948 |
| (a) Supplemental disclosure of cash flow activities: | ||
| Cash paid during the period for: Taxes paid due to non-deductible expenses | 16 | 43 |
| (b) Supplemental disclosure of non-cash activities: | ||
| Purchase of property and equipment on credit | 36 | 132 |
| Share consideration to contractor | $ 39 | |
GENERAL |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||
| GENERAL [Abstract] | |||||||
| GENERAL | NOTE 1:-GENERAL
As of December 31, 2016, the Company's cash position (cash and cash equivalents, short-term bank deposits and marketable securities) totaled approximately $21,373. The Company plans to continue to finance its operations with sales of equity securities, entering into licensing technology agreements (see Note 1c) and from grants to support its research and development activity. Management believes that these funds, together with the funds received from the public offering that closed on January 25, 2017 (see Note 7), together with its existing operating plan, are sufficient for the Company to meet its obligations as they come due at least for a period of twelve months from the date of the interim condensed consolidated financial statements. In the longer term, the Company plans to finance its operations from revenues from sales of products.
United Therapeutics Corporation ("United") Agreement
On June 19, 2011, the Company entered into an exclusive license agreement (the “United Agreement”) with United for the use of the Company's PLX cells to develop and commercialize a cell-based product for the treatment of Pulmonary Hypertension (“PAH”). The United Agreement provided that United would receive exclusive worldwide license rights for the development and commercialization of the Company's PLX cell-based product to treat PAH.
Under the United Agreement, the Company received an upfront payment of $7,000 paid in August 2011, which included a $5,000 non-refundable upfront payment and a $2,000 advance payment on development.
On December 8, 2015, the Company received a notice from United terminating the United Agreement, effective immediately. Pursuant to the United Agreement termination clause, Pluristem regained full rights to PLX in the field of PAH, as well as all clinical data and regulatory submissions. As the Company has no further obligations towards United, the Company recognized the remaining upfront payment received in August 2011 as revenues during the year ended June 30, 2016.
CHA Biotech Co. Ltd. (“CHA”) Agreement
On
June 26, 2013, Pluristem entered into an exclusive license and commercialization agreement (the “CHA Agreement”) with
CHA, for conducting clinical trials and commercialization of Pluristem's PLX-PAD product in South Korea in connection with two
indications: the treatment of Critical Limb Ischemia and Intermittent
Claudication (the “Indications”).
Under the terms of the CHA Agreement, CHA will receive exclusive rights in South Korea for conducting clinical trials with respect to the Indications, and the Company will continue to retain rights to its proprietary manufacturing technology and cell-related intellectual property.
The first clinical study as part of the CHA Agreement is a Phase II trial in Intermittent Claudication. South Korea’s Ministry of Food and Drug Safety approved this study in November 2013.
Upon the first regulatory approval for a PLX product in South Korea for the Indications, Pluristem and CHA will establish an equally owned joint venture. The purpose of the joint venture will be to commercialize PLX cell products in South Korea.
Pluristem will be able to use the data generated by CHA to pursue the development of PLX product candidates outside of South Korea.
The CHA Agreement contains customary termination provisions, including in the event the parties do not reach an agreement upon a development plan for conducting the clinical trials. Upon termination of the CHA Agreement, the license granted thereunder will terminate and all rights included therein will revert to the Company, and the Company will be free to enter into agreements with any other third parties for the granting of a license in or outside South Korea, or to deal in any other manner with such rights as it will see fit at its sole discretion.
In addition, and as contemplated by the CHA Agreement, in December 2013, Pluristem and CHA executed the mutual investment pursuant to which Pluristem issued 2,500,000 shares of its common stock in consideration for 1,011,504 shares of CHA, which reflects total consideration to each of Pluristem and CHA of approximately $10,414. The parties also agreed to give an irrevocable proxy to the other party’s management with respect to the voting power of the shares issued.
During March 2015, the Company sold a portion of the CHA shares received in December 2013.
The remaining investment in CHA shares is presented as “Marketable Securities” and classified as available-for-sale in accordance with Accounting Standards Codification (the “ASC”) 320, “Investments - Debt and Equity Securities”. The fair value of the remaining investment as of December 31, 2016 is $4,209. |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||
| BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed).
For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016.
Operating results for the three and six month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017.
The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements.
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3 - Unobservable inputs for the asset or liability.
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company categorized each of its fair value measurements in one of these three levels of hierarchy (see Note 4).
The Company uses options strategies (“derivative instruments”) primarily to minimize the risk associated with the foreign exchange effects of monetary assets and liabilities denominated in NIS. The Company accounts for derivatives based on ASC 815, “Derivatives and Hedging”. ASC 815 requires the Company to recognize all derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of derivative instruments depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Since the derivative instruments that the Company holds are not designated and qualify as hedging instruments under ASC 815, the Company measured the fair value of the derivative instruments in accordance with ASC 820 (classified as level 2) and recognizes changes in the fair values in its statement of operations each reporting period in "Financial income (expenses), net".
As of December 31, 2016, the fair value of the options contracts were approximately ($1) and presented in “other accounts payable” (see Note 4). The net gains (losses) recognized in “Financial income (expense), net” during the three and six month periods ended December 31, 2016 and 2015, were ($131), ($66) and $103, ($181), respectively.
Accounting Standards Update (“ASU”) 2014-09 - Revenue from Contracts with Customers (Topic 606):
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In April 2016, the FASB issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity's promise to grant a license with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The guidance is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company (early adoption is permitted for the interim and annual periods beginning on or after December 15, 2016). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is currently evaluating the impact of the guidance on its consolidated financial statements.
ASU 2016-13 - Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments:
In June 2016, the FASB issued ASU 2016-13. This update requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” on a financial asset and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. The update also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The update is effective for the interim and annual periods beginning on or after December 15, 2019, or July 1, 2020 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the update on its consolidated financial statements.
ASU 2016-18 - Restricted Cash (Topic 230):
In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements.
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MARKETABLE SECURITIES |
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| Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES
As of December 31, 2016, all of the Company’s marketable securities were classified as available-for-sale.
The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2016 and June 30, 2016, and the length of time that those investments have been in a continuous loss position:
The Company typically invests in highly-rated securities. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company's intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment's amortized cost basis.
Based on the above factors, the Company concluded that unrealized losses on all available-for-sale securities were not other-than-temporary and no credit loss was present for any of its investments. As such, the Company did not recognize any impairment charges on outstanding securities during the three and six month period’s ended December 31, 2016. |
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4:- FAIR VALUE OF FINANCIAL INSTRUMENTS
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||
| COMMITMENTS AND CONTINGENCIES | NOTE 5: - COMMITMENTS AND CONTINGENCIES
Through December 31, 2016, total grants obtained aggregated to approximately $24,461 and total royalties paid and accrued amounted to $166. As of December 31, 2016, the Company's contingent liability in respect to royalties to the IIA amounted $24,295, not including LIBOR interest as described above. |
STOCKHOLDERS' EQUITY |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | NOTE 6: - STOCKHOLDERS' EQUITY
The Company accounts for its options to employees and directors under the fair value method in accordance with ASC 718, “Compensation—Stock Compensation”. A summary of the Company’s activity for options granted to employees and directors under its 2005 incentive option plan is as follows:
Intrinsic value of exercisable options (the difference between the Company’s closing stock price on the last trading day in the period and the exercise price, multiplied by the number of in-the-money options) represents the amount that would have been received by the employees and directors option holders had all option holders exercised their options on December 31, 2016. This amount changes based on the fair market value of the Company’s common stock.
A summary of the options and warrants to non-employee consultants is as follows:
Compensation expenses related to options and warrants granted to consultants were recorded as follows:
The following table summarizes the activity related to unvested restricted stock and restricted stock units granted to employees and directors for the six month period ended December 31, 2016 (Unaudited):
Compensation expenses related to restricted stock units granted to employees and directors were recorded as follows:
Unamortized compensation expenses related to restricted stock units granted to employees and directors to be recognized over an average time of approximately 2 years is approximately $319.
The following table summarizes the activity related to unvested restricted stock and restricted stock units granted to consultants for the six months ended December 31, 2016 (Unaudited):
Compensation expenses related to restricted stock and restricted stock units granted to consultants were recorded as follows:
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SUBSEQUENT EVENTS |
6 Months Ended |
|---|---|
Dec. 31, 2016 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 7:-SUBSEQUENT EVENTS
On January 25, 2017, the Company sold, pursuant to an underwriting agreement relating to a firm commitment public offering, an aggregate of 14,081,633 shares of common Stock and warrants to purchase 8,448,980 shares of common stock, inclusive of the underwriter’s over-allotment option, which was exercised in full, for aggregate gross proceeds of $17,250. The net proceeds, after deducting underwriting commissions and discounts were $15,958 (before deducting other expenses related to the offering).
The warrants issued in the Offering are exercisable for a period of five and a half years commencing six months following issuance and have an exercise price of $1.40 per share. |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2016 | ||||
| Accounting Policies [Abstract] | ||||
| Unaudited Interim Financial Information |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed).
For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016.
Operating results for the three and six month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017. |
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| Significant Accounting Policies |
The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements. |
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| Use of estimates |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
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| Fair value of financial instruments |
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3 - Unobservable inputs for the asset or liability.
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company categorized each of its fair value measurements in one of these three levels of hierarchy (see Note 4). |
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| Derivative financial instruments |
The Company uses options strategies (“derivative instruments”) primarily to minimize the risk associated with the foreign exchange effects of monetary assets and liabilities denominated in NIS. The Company accounts for derivatives based on ASC 815, “Derivatives and Hedging”. ASC 815 requires the Company to recognize all derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of derivative instruments depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Since the derivative instruments that the Company holds are not designated and qualify as hedging instruments under ASC 815, the Company measured the fair value of the derivative instruments in accordance with ASC 820 (classified as level 2) and recognizes changes in the fair values in its statement of operations each reporting period in "Financial income (expenses), net".
As of December 31, 2016, the fair value of the options contracts were approximately ($1) and presented in “other accounts payable” (see Note 4). The net gains (losses) recognized in “Financial income (expense), net” during the three and six month periods ended December 31, 2016 and 2015, were ($131), ($66) and $103, ($181), respectively. |
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| Recent Accounting Pronouncement |
Accounting Standards Update (“ASU”) 2014-09 - Revenue from Contracts with Customers (Topic 606):
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In April 2016, the FASB issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity's promise to grant a license with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The guidance is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company (early adoption is permitted for the interim and annual periods beginning on or after December 15, 2016). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is currently evaluating the impact of the guidance on its consolidated financial statements.
ASU 2016-13 - Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments:
In June 2016, the FASB issued ASU 2016-13. This update requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” on a financial asset and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. The update also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The update is effective for the interim and annual periods beginning on or after December 15, 2019, or July 1, 2020 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the update on its consolidated financial statements.
ASU 2016-18 - Restricted Cash (Topic 230):
In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements. |
MARKETABLE SECURITIES (Tables) |
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| Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Available-for-sale Marketable Securities | As of December 31, 2016, all of the Company’s marketable securities were classified as available-for-sale.
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| Schedule of Investments in Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2016 and June 30, 2016, and the length of time that those investments have been in a continuous loss position:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Value of Financial Instruments |
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| Schedule of Derivative Hedging Activity and Balance Sheet Location |
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STOCKHOLDERS' EQUITY (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders Equity Note [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock Option Activity |
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| Schedule of Stock-based Compensation Expenses | Compensation expenses related to options and warrants granted to consultants were recorded as follows:
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| Schedule of Stock Option and Warrant Activity | A summary of the options and warrants to non-employee consultants is as follows:
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| Restricted stock units [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders Equity Note [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Unvested Restricted Stock Units | The following table summarizes the activity related to unvested restricted stock and restricted stock units granted to employees and directors for the six month period ended December 31, 2016 (Unaudited):
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| Schedule of Stock-based Compensation Expenses | Compensation expenses related to restricted stock units granted to employees and directors were recorded as follows:
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| Consultant Restricted Stock Units [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders Equity Note [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Unvested Restricted Stock Units | The following table summarizes the activity related to unvested restricted stock and restricted stock units granted to consultants for the six months ended December 31, 2016 (Unaudited):
|
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| Schedule of Stock-based Compensation Expenses | Compensation expenses related to restricted stock and restricted stock units granted to consultants were recorded as follows:
|
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GENERAL (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2013 |
Aug. 31, 2011 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
| GENERAL [Abstract] | |||||||
| Accumulated losses | $ 174,691 | $ 174,691 | $ 161,757 | ||||
| Net loss | 6,610 | $ 3,962 | 12,934 | $ 9,838 | |||
| Cash and cash equivalents, short-term bank deposits and marketable securities | 21,373 | 21,373 | |||||
| Upfront payment received | $ 7,000 | ||||||
| Nonrefundable payments received | 5,000 | ||||||
| Advance payment on the development | $ 2,000 | ||||||
| Issuance of common stock under CHA agreement | 2,500,000 | ||||||
| CHA shares classified as marketable securities | 1,011,504 | ||||||
| Total consideration reflected under the CHA agreement | $ 10,414 | ||||||
| Fair value of the remaining investment in CHA shares | $ 4,209 | $ 4,209 | |||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| Accounting Policies [Abstract] | ||||
| Fair value of cash flow hedge derivatives | $ (1) | $ (1) | ||
| Net gain (loss) realized on derivatives | $ (131) | $ (66) | $ 103 | $ (181) |
MARKETABLE SECURITIES (Schedule of Available-for-sale Marketable Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
|---|---|---|
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | $ 13,578 | $ 15,973 |
| Gross unrealized gain | 1,526 | 1,688 |
| Gross unrealized loss | (1,065) | (208) |
| Other-than-temporary impairment | (38) | |
| Fair value | 14,039 | 17,415 |
| Within One Year [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 11,548 | 12,824 |
| Gross unrealized gain | 1,498 | 1,613 |
| Gross unrealized loss | (1,058) | (208) |
| Other-than-temporary impairment | (38) | |
| Fair value | 11,988 | 14,191 |
| One to Five Years [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 2,015 | 3,120 |
| Gross unrealized gain | 28 | 74 |
| Gross unrealized loss | (7) | |
| Other-than-temporary impairment | ||
| Fair value | 2,036 | 3,194 |
| After Five Years through Ten Years [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 15 | 29 |
| Gross unrealized gain | 1 | |
| Gross unrealized loss | ||
| Other-than-temporary impairment | ||
| Fair value | 15 | 30 |
| Stock and Index Linked Notes [Member] | Within One Year [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 11,445 | 11,599 |
| Gross unrealized gain | 1,496 | 1,594 |
| Gross unrealized loss | (1,058) | (208) |
| Other-than-temporary impairment | (38) | |
| Fair value | 11,883 | 12,947 |
| Government Debentures [Member] | Within One Year [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 786 | |
| Gross unrealized gain | 12 | |
| Gross unrealized loss | ||
| Other-than-temporary impairment | ||
| Fair value | 798 | |
| Government Debentures [Member] | One to Five Years [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 616 | 717 |
| Gross unrealized gain | 21 | 27 |
| Gross unrealized loss | ||
| Other-than-temporary impairment | ||
| Fair value | 637 | 744 |
| Corporate Debentures [Member] | Within One Year [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 103 | 439 |
| Gross unrealized gain | 2 | 7 |
| Gross unrealized loss | ||
| Other-than-temporary impairment | ||
| Fair value | 105 | 446 |
| Corporate Debentures [Member] | One to Five Years [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 1,399 | 2,403 |
| Gross unrealized gain | 7 | 47 |
| Gross unrealized loss | (7) | |
| Other-than-temporary impairment | ||
| Fair value | 1,399 | 2,450 |
| Corporate Debentures [Member] | After Five Years through Ten Years [Member] | ||
| Schedule of Available-for-sale Securities [Line Items] | ||
| Amortized cost | 15 | 29 |
| Gross unrealized gain | 1 | |
| Gross unrealized loss | ||
| Other-than-temporary impairment | ||
| Fair value | $ 15 | $ 30 |
MARKETABLE SECURITIES (Schedule of Investments in Unrealized Loss) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
|---|---|---|
| Marketable Securities [Abstract] | ||
| Less than 12 months, Fair Value | $ 2,222 | $ 1,258 |
| Less than 12 months, Gross unrealized loss | (1,025) | (143) |
| 12 months or greater, Fair Value | 625 | 563 |
| 12 months or greater, Gross unrealized loss | $ (40) | $ (65) |
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Marketable securities | $ 14,039 | $ 17,415 |
| Foreign currency derivative instruments | (1) | 65 |
| Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Marketable securities | 9,475 | 11,228 |
| Foreign currency derivative instruments | ||
| Total financial assets | 9,475 | 11,228 |
| Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Marketable securities | 4,564 | 6,187 |
| Foreign currency derivative instruments | (1) | 65 |
| Total financial assets | $ 4,563 | $ 6,252 |
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of the Fair Value of Hedging Instruments) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Derivative fair value asset (liability) | $ (1) | $ 65 |
| Derivatives not designated as hedge instruments [Member] | Other accounts payable [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative fair value asset (liability) | $ (1) | |
| Derivatives not designated as hedge instruments [Member] | Other current assets [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative fair value asset (liability) | $ 65 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Dec. 31, 2016
USD ($)
| |
| Other Commitments [Line Items] | |
| Cash pledged | $ 570 |
| Grants received | $ 24,461 |
| Percentage of qualified expenditures eligible for grant | 50.00% |
| Royalty payable based on grants received | 100.00% |
| Accrued and paid royalties | $ 166 |
| Contingent liability amount | $ 24,295 |
| Minimum [Member] | |
| Other Commitments [Line Items] | |
| Royalty rate | 3.00% |
| Maximum [Member] | |
| Other Commitments [Line Items] | |
| Royalty rate | 4.00% |
STOCKHOLDERS' EQUITY (Narrative) (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|---|
|
Feb. 29, 2016
shares
|
Oct. 31, 2015
USD ($)
|
May 31, 2015
USD ($)
shares
|
May 31, 2015
ILS (₪)
shares
|
Feb. 28, 2015
USD ($)
shares
|
Feb. 28, 2015
ILS (₪)
shares
|
Oct. 31, 2014
USD ($)
shares
|
Dec. 31, 2015
USD ($)
|
May 31, 2015
ILS (₪)
|
|
| Class of Stock [Line Items] | |||||||||
| Stock-based compensation to contractor, shares to be issued | shares | 90,000 | ||||||||
| Issuance of common stock in a private placement | $ 790 | $ 586 | $ 528 | $ 790 | |||||
| Issuance of common stock in a private placement, shares | shares | 300,000 | 300,000 | 200,000 | 200,000 | 200,000 | ||||
| Stock based compensation to contractor | $ 39 | ||||||||
| Cash paid to construction contractor | $ 774 | ||||||||
| Unrecorded Unconditional Purchase Obligation | $ 1,032 | ||||||||
| Amount of share-based compensation included in additional paid-in capital and property and equipment | $ 302 | ||||||||
| Contractor [Member] | |||||||||
| Class of Stock [Line Items] | |||||||||
| Stock-based compensation to contractor, shares | shares | 100,004 | 100,004 | |||||||
| Stock based compensation to contractor | $ 841 | ||||||||
| ILS [Member] | |||||||||
| Class of Stock [Line Items] | |||||||||
| Cash paid to construction contractor | ₪ | ₪ 3,000,000 | ||||||||
| Unrecorded Unconditional Purchase Obligation | ₪ | ₪ 4,000,000 | ||||||||
| ILS [Member] | Contractor [Member] | |||||||||
| Class of Stock [Line Items] | |||||||||
| Stock based compensation to contractor | ₪ | ₪ 3,300,000 | ||||||||
STOCKHOLDERS' EQUITY (Summary of Option Activity) (Details) $ / shares in Units, $ in Thousands |
6 Months Ended |
|---|---|
|
Dec. 31, 2016
USD ($)
$ / shares
shares
| |
| Number | |
| Options outstanding at beginning of period | shares | 1,771,700 |
| Options forfeited | shares | (67,550) |
| Options exercised | shares | (6,000) |
| Options outstanding at end of the period | shares | 1,698,150 |
| Options exercisable at the end of the period | shares | 1,698,150 |
| Options vested | shares | 1,698,150 |
| Weighted Average Exercise Price | |
| Options outstanding at beginning of period | $ / shares | $ 3.759 |
| Options forfeited | $ / shares | 3.90 |
| Options exercised | $ / shares | 0.62 |
| Options outstanding at end of the period | $ / shares | 3.764 |
| Options exercisable at the end of the period | $ / shares | 3.764 |
| Options vested | $ / shares | $ 3.764 |
| Weighted Average Remaining Contractual Terms (in years) | |
| Weighted Average Remaining Contractual Terms (in years) | 8 months 4 days |
| Options exercisable at the end of the period | 8 months 4 days |
| Options vested | 8 months 4 days |
| Aggregate Intrinsic Value Price | |
| Options outstanding at end of the period | $ | $ 294 |
| Options exercisable at the end of the period | $ | 294 |
| Options vested | $ | $ 294 |
STOCKHOLDERS' EQUITY (Summary of Option and Warrant Activity to Non-employees) (Details) $ / shares in Units, $ in Thousands |
6 Months Ended |
|---|---|
|
Dec. 31, 2016
USD ($)
$ / shares
shares
| |
| Number | |
| Options and warrants outstanding at beginning of period | shares | 237,300 |
| Options granted | shares | 46,800 |
| Options forfeited | shares | (5,000) |
| Options and warrants outstanding at end of the period | shares | 279,100 |
| Options and warrants exercisable at the end of the period | shares | 242,750 |
| Options and warrants vested and expected to vest | shares | 279,100 |
| Weighted Average Exercise Price | |
| Options and warrants outstanding at beginning of period | $ / shares | $ 5.40 |
| Options granted | $ / shares | 0.00 |
| Options forfeited | $ / shares | 3.80 |
| Options and warrants outstanding at end of the period | $ / shares | 4.52 |
| Options and warrants exercisable at the end of the period | $ / shares | 5.20 |
| Options and warrants vested and expected to vest | $ / shares | $ 4.52 |
| Weighted Average Remaining Contractual Terms (in years) | |
| Options and warrants outstanding at end of the period | 3 years 1 month 13 days |
| Options and warrants exercisable at the end of the period | 2 years 2 months 9 days |
| Options and warrants vested and expected to vest | 3 years 1 month 13 days |
| Aggregate Intrinsic Value Price | |
| Options and warrants outstanding at end of the period | $ | $ 152 |
| Options and warrants exercisable at the end of the period | $ | 151 |
| Options and warrants vested and expected to vest | $ | $ 152 |
STOCKHOLDERS' EQUITY (Summary of RSU Activity to Employees and Directors) (Details) - Restricted stock units [Member] |
6 Months Ended |
|---|---|
|
Dec. 31, 2016
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unvested at the beginning of period | 1,906,619 |
| Granted | 2,386,365 |
| Forfeited | (70,468) |
| Vested | (897,480) |
| Unvested at the end of the period | 3,325,036 |
| Expected to vest after December 31, 2016 | 3,159,307 |
STOCKHOLDERS' EQUITY (Schedule of Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| Options And Warrants [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | $ 17 | $ 17 | $ 1 | |
| Options And Warrants [Member] | Research and development expenses [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 3 | 3 | 1 | |
| Options And Warrants [Member] | General and administrative expenses [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 14 | 14 | ||
| Restricted stock units [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 277 | 609 | 649 | 1,503 |
| Unrecognized compensation expense | 319 | $ 319 | ||
| Unrecognized compensation expense, recognition period | 2 years | |||
| Restricted stock units [Member] | Consultants [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 128 | 55 | $ 241 | 68 |
| Restricted stock units [Member] | Research and development expenses [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 100 | 163 | 210 | 483 |
| Restricted stock units [Member] | Research and development expenses [Member] | Consultants [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 3 | 10 | 7 | 20 |
| Restricted stock units [Member] | General and administrative expenses [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | 177 | 446 | 439 | 1,020 |
| Restricted stock units [Member] | General and administrative expenses [Member] | Consultants [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Compensation expenses | $ 125 | $ 45 | $ 234 | $ 48 |
STOCKHOLDERS' EQUITY (Summary of RSU Activity to Consultants) (Details) - Consultants [Member] |
6 Months Ended |
|---|---|
|
Dec. 31, 2016
shares
| |
| Share-based Goods and Nonemployee Services Transaction [Line Items] | |
| Unvested at the beginning of period | 26,000 |
| Granted | 168,221 |
| Vested | (133,472) |
| Unvested at the end of the period | 60,749 |
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |||
|---|---|---|---|---|
Jan. 25, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
| Subsequent Event [Line Items] | ||||
| Common stock Issued | 81,305,951 | 80,268,999 | ||
| Proceeds from public offering, net of underwriting commissions and discounts | $ 790 | |||
| Subsequent Event [Member] | Underwriting Agreement [Member] | ||||
| Subsequent Event [Line Items] | ||||
| Number of shares agreed to be sold through Underwriter Agreement | 14,081,633 | |||
| Number of warrants agreed to be sold through Underwriter Agreement | 8,448,980 | |||
| Proceeds from public offering, gross | $ 17,250 | |||
| Proceeds from public offering, net of underwriting commissions and discounts | $ 15,958 | |||
| Warrant exercise price | $ 1.40 | |||