General

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1:- GENERAL

a. Wize Pharma, Inc. (the "Company" or "Wize") was incorporated in the State of Delaware.

On November 16, 2017, the Company completed the acquisition of Wize Pharma Ltd., an Israeli company ("Wize Israel") by way of a reverse triangular merger (the "Merger").

Wize Israel is a clinical-stage biopharmaceutical company currently focused on the treatment of ophthalmic disorders, including dry eye syndrome ("DES").

Commencing August 30, 2016, Wize Israel manages most of its activity through OcuWize Ltd. ("OcuWize"), a wholly-owned Israeli subsidiary which manages and develops most of the Company's activity under the License Agreement.

For discussion regarding the issuance of mandatorily redeemable B preferred shares as a partial financing, together with the grant of a right to receive 37% of future L02A-based products ("LO2A Proceeds") (if any) and the purchase of Bonus BioGroup Ltd. ("Bonus") shares occurring in January 2020, see also Note 14.

b. Going concern uncertainty and management plans:

The Company has not yet generated any material revenues from its current operations, and therefore is dependent upon external sources for financing its operations. As of December 31, 2019, the Company has an accumulated deficit of $33,899.

In addition, in each of the years ended December 31, 2019 and 2018, the Company reported losses and negative cash flows from operating activities. 

Management considered the significance of such conditions in relation to the Company's ability to meet its current and future obligations and determined that such conditions raise substantial doubt about the Company's ability to continue as a going concern.  

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Until such time as the Company generates sufficient revenue to fund its operations (if ever), the Company plans to finance its operations and repay existing indebtedness through the sale of equity or equity-linked securities and/or debt securities and, to the extent available, short-term and long-term loans. There can be no assurance that the Company will succeed in obtaining the necessary financing to continue its operations as a going concern.

Regarding a transaction with Bonus in January 2020 see also Note 14.

c. Risk factors:

As of December 31, 2019, the Company had an accumulated deficit of $33,899. The Company has historically incurred net losses and is not able to determine whether or when it will become profitable, if ever. To date, the Company has not commercialized any products or generated any revenues from product sales and accordingly it does not have a revenue stream to support its cost structure. The Company's losses have resulted principally from costs incurred in development and discovery activities along with the general and administrative expenses it incurs to support these activities.

The Company expects to continue to incur losses for the foreseeable future, and these losses will likely increase as it:

● initiates and manages pre-clinical development and clinical trials for LO2A (as defined below);

● seeks regulatory approvals for LO2A;

● implements internal systems and infrastructures;

● seeks to license additional technologies to develop;

● pays royalties related to the License Agreement;

● hires management and other personnel; and

● moves towards commercialization.

No certainty exists that the Company will be able to complete the development of LO2A for Conjunctivochalasis ("CCH"), Sjögren's syndrome ("Sjögren's") or any other ophthalmic disorder, due to financial, technological or other difficulties. If LO2A fails in clinical trials or does not gain regulatory clearance or approval, or if LO2A does not achieve market acceptance, the Company may never become profitable.

The Company's inability to achieve and then maintain profitability would negatively affect its business, financial condition, results of operations and cash flows. Moreover, the Company's prospects must be considered in light of the risks and uncertainties encountered by an early-stage company and in highly regulated and competitive markets, such as the biopharmaceutical market, where regulatory approval and market acceptance of its products are uncertain. There can be no assurance that the Company's efforts will ultimately be successful or result in revenues or profits.