EX-99 3 exhibit_2.htm INTERIM FINANCIAL STATEMENTS exhibit_2.htm
Exhibit 2
 
BioLineRx Ltd.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
AS OF MARCH 31, 2016
 
 
 
 
 
BioLineRx Ltd.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
AS OF MARCH 31, 2016
 
TABLE OF CONTENTS
 

 
 
 
 
BioLineRx Ltd.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(UNAUDITED)

   
December 31,
    
March 31,
  
   
2015
    
2016
  
   
in USD thousands
  
Assets
            
CURRENT ASSETS
            
Cash and cash equivalents
     5,544       4,584  
Short-term bank deposits
     42,119       40,423  
Prepaid expenses
     229       466  
Other receivables
     291       396  
Total current assets
     48,183       45,869  
                 
NON-CURRENT ASSETS
                
Long-term prepaid expenses
     58       56  
Property and equipment, net
     2,909       2,859  
Intangible assets, net
     152       157  
Total non-current assets
     3,119       3,072  
Total assets
     51,302       48,941  
                 
Liabilities and equity
                
CURRENT LIABILITIES
                
Current maturities of long-term bank loan
     93       93  
Accounts payable and accruals:
                
Trade
     1,910       1,465  
Other
     1,137       1,001  
Total current liabilities
     3,140       2,559  
NON-CURRENT LIABILITIES
                
Long-term bank loan, net of current maturities
     344       320  
Warrants
     208       60  
Total non-current liabilities
     552       380  
COMMITMENTS AND CONTINGENT LIABILITIES
                
Total liabilities
     3,692       2,939  
                 
EQUITY
                
Ordinary shares
     1,455       1,459  
Share premium
     196,201       197,792  
Other comprehensive income (loss)
     (1,416 )     (1,416 )
Capital reserve
     10,735       11,021  
Accumulated deficit
     (159,365 )     (162,854 )
Total equity
     47,610       46,002  
Total liabilities and equity
     51,302       48,941  

The accompanying notes are an integral part of these condensed financial statements.
 
 
1
 
 
BioLineRx Ltd.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
 
   
Three months ended March 31,
  
   
2015
    
2016
  
   
in USD thousands
  
RESEARCH AND DEVELOPMENT EXPENSES, NET
     (3,211 )     (2,539 )
SALES AND MARKETING EXPENSES
     (260 )     (248 )
GENERAL AND ADMINISTRATIVE EXPENSES
     (856 )     (989 )
OPERATING LOSS
     (4,327 )     (3,776 )
NON-OPERATING INCOME (EXPENSES), NET
     (40 )     148  
FINANCIAL INCOME
     73       143  
FINANCIAL EXPENSES
     (17 )     (4 )
                 
NET LOSS AND COMPREHENSIVE LOSS
     (4,311 )     (3,489 )
                 
   
in USD
  
LOSS PER ORDINARY SHARE - BASIC AND DILUTED
     (0.101 )     (0.064 )
                 
WEIGHTED AVERAGE NUMBER OF SHARES USED IN CALCULATION OF LOSS PER ORDINARY SHARE
     42,506,905       54,870,561  
 
The accompanying notes are an integral part of these condensed financial statements.
 
 
2
 

BioLineRx Ltd.
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
 
               
Other
                    
   
Ordinary
    
Share
    
comprehensive
    
Capital
    
Accumulated
        
   
shares
    
premium
    
income (loss)
    
reserve
    
deficit
    
Total
  
   
in USD thousands
  
BALANCE AT JANUARY 1, 2015
     1,055       167,331       (1,416 )     9,800       (144,965 )     31,805  
CHANGES FOR THREE MONTHS ENDED MARCH 31, 2015:
                                                
Issuance of share capital, net
     365       26,095       -       -       -       26,460  
Share-based compensation
     -       -               234       -       234  
Comprehensive loss for the period
     -       -       -       -       (4,311 )     (4,311 )
BALANCE AT MARCH 31,  2015
     1,420       193,426       (1,416 )     10,034       (149,276 )     54,188  

               
Other
                    
   
Ordinary
    
Share
    
comprehensive
    
Capital
    
Accumulated
        
   
shares
    
premium
    
income (loss)
    
reserve
    
Deficit
    
Total
  
   
in USD thousands
  
BALANCE AT JANUARY 1, 2016
     1,455       196,201       (1,416 )     10,735       (159,365 )     47,610  
CHANGES FOR THREE MONTHS ENDED MARCH 31, 2016:
                                                
Issuance of share capital , net
     4       1,591       -       -       -       1,595  
Share-based compensation
     -       -       -       286       -       286  
Comprehensive loss for the period
     -       -       -       -       (3,489 )     (3,489 )
BALANCE AT MARCH 31,  2016
     1,459       197,792       (1,416 )     11,021       (162,854 )     46,002  
 
The accompanying notes are an integral part of these condensed financial statements.
 
 
3
 

BioLineRx Ltd.
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENTS
(UNAUDITED)
 
   
Three months ended March 31,
  
   
2015
    
2016
  
   
in USD thousands
  
             
CASH FLOWS - OPERATING ACTIVITIES
            
Comprehensive loss for the period
     (4,311 )     (3,489 )
Adjustments required to reflect net cash used in operating activities (see appendix below)
     843       (695 )
Net cash used in operating activities
     (3,468 )     (4,184 )
                 
CASH FLOWS - INVESTING ACTIVITIES
                
Investments in short-term deposits
     (31,153 )     (10,300 )
Maturities of short-term deposits
     10,634       12,102  
Purchase of property and equipment
     (149 )     (137 )
Purchase of intangible assets
     (2 )     (11 )
Net cash provided by (used in) investing activities
     (20,670 )     1,654  
                 
CASH FLOWS - FINANCING ACTIVITIES
                
Issuances of share capital, net
     26,460       1,595  
Repayments of bank loan
     -       (23 )
Net cash provided by financing activities
     26,460       1,572  
                 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
     2,322       (958 )
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD
     5,790       5,544  
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS
     (37 )     (2 )
CASH AND CASH EQUIVALENTS - END OF PERIOD
     8,075       4,584  
 
The accompanying notes are an integral part of these condensed financial statements.
 
 
4
 
 
BioLineRx Ltd.
APPENDIX TO CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENTS
(UNAUDITED)

   
Three months ended March 31,
  
   
2015
    
2016
  
   
in USD thousands
  
             
Adjustments required to reflect net cash used in operating activities:
            
             
Income and expenses not involving cash flows:
            
Depreciation and amortization
     102       122  
Long-term prepaid expenses
     (1 )     2  
Interest on short-term deposits
     (9 )     (106 )
Share-based compensation
     234       286  
Exchange differences on cash and cash equivalents
     37       2  
Interest and linkage differences on bank loan
     -       (1 )
Loss (gain) on adjustment of warrants to fair value
     40       (148 )
      403       157  
                 
Changes in operating asset and liability items:
                
Increase in prepaid expenses and other receivables
     (459 )     (342 )
Increase (decrease) in accounts payable and accruals
     899       (510 )
      440       (852 )
      843       (695 )
                 
Supplementary information on investing activities not involving cash flows:
                
    Property and equipment acquired on supplier trade credit
     482       -  
                 
Supplementary information on interest received in cash
     30       103  
 
The accompanying notes are an integral part of these condensed financial statements.
 
 
5
 
 
BioLineRx Ltd.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)

NOTE 1 – GENERAL INFORMATION

 
 a.
General
 
BioLineRx Ltd. (“BioLineRx”), headquartered in Modi’in, Israel, was incorporated and commenced operations in April 2003. Since incorporation, BioLineRx and its consolidated entities (collectively, the “Company”) have been engaged in the development of therapeutics, from pre-clinical development to advanced clinical trials, for a wide range of medical needs.

In February 2007, BioLineRx listed its ordinary shares on the Tel Aviv Stock Exchange (“TASE”) and they have been traded on the TASE since that time. Since July 2011, BioLineRx’s American Depositary Shares (“ADSs”) have also been traded on the NASDAQ Capital Market.

The Company has been engaged in drug development since its incorporation. Although the Company has generated significant revenues from a number of out-licensing transactions, the Company cannot determine with reasonable certainty when and if it will have sustainable profits.
 
 
 b.
Approval of financial statements
 
The condensed consolidated interim financial statements of the Company for the three months ended March 31, 2016 were approved by the Board of Directors on May 17, 2016, and signed on its behalf by the Chairman of the Board, the Chief Executive Officer and the Chief Financial and Operating Officer.

NOTE 2 – BASIS OF PREPARATION
 
The Company’s condensed consolidated interim financial statements as of March 31, 2016 and for the three months then ended (the “interim financial statements”) have been prepared in accordance with International Accounting Standard No. 34, “Interim Financial Reporting” (“IAS 34”). These interim financial statements, which are unaudited, do not include all disclosures necessary for a fair statement of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. The condensed consolidated interim financial statements should be read in conjunction with the Company’s annual financial statements as of December 31, 2015 and for the year then ended and their accompanying notes, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period.

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
 
The accounting policies and calculation methods applied in the preparation of the interim financial statements are consistent with those applied in the preparation of the annual financial statements as of December 31, 2015 and for the year then ended.

 
6
 
BioLineRx Ltd.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)

NOTE 4 – ISSUANCES OF SHARE CAPITAL

 
 a.
Underwritten public offerings of American Depositary Shares
 
In March 2015, the Company completed an underwritten public offering of 14,375,000 ADSs at a public offering price of $2.00 per ADS. The offering raised a total of $28.8 million, with net proceeds of approximately $26.5 million, after deducting fees and expenses.
 
 
 b.
Share purchase agreement with Lincoln Park Capital
 
In May 2014, BioLineRx and Lincoln Park Capital Fund (“LPC”), entered into a $20 million, 36-month purchase agreement, whereby LPC agreed to purchase, from time to time, up to $20 million of BioLineRx’s ADSs, subject to certain limitations, during the 36-month term of the purchase agreement.

During the three months ended March 31, 2016, BioLineRx sold a total of 1,550,853 ADSs to LPC for aggregate gross proceeds of $1,627,000. In connection with these issuances, a total of 38,772 ADSs was issued to LPC as a commitment fee and a total of $33,000 was paid to Oberon Securities as a finder’s fee. On a cumulative basis, from the effective date of the purchase agreement through the approval date of these financial statements, BioLineRx has sold a total of 2,843,454 ADSs to LPC for aggregate gross proceeds of $4,270,000. In connection with these issuances, a total of 71,087 ADSs was issued to LPC as a commitment fee and a total of $85,000 was paid to Oberon Securities as a finder’s fee.

NOTE 5 – SHAREHOLDERS’ EQUITY
 
As of December 31, 2015 and March 31, 2016, share capital is composed of ordinary shares, as follows:

   
Number of ordinary shares
  
   
December 31,
    
March 31,
  
   
2015
    
2016
  
             
Authorized share capital
     150,000,000       150,000,000  
                 
Issued and paid-up share capital
     54,818,057       56,423,601  
                 
                 
   
In USD and NIS
  
   
December 31,
    
March 31,
  
      2015       2016  
                 
Authorized share capital (in NIS)
     15,000,000       15,000,000  
                 
Issued and paid-up share capital (in NIS)
     5,481,806       5,642,360  
                 
Issued and paid-up share capital (in USD)
     1,455,159       1,459,226  

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