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REDHILL BIOPHARMA LTD.
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(the "Registrant")
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Date: November 30, 2021
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By:
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/s/ Dror Ben-Asher
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Dror Ben-Asher
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Chief Executive Officer
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Press Release
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Company contact:
Adi Frish
Chief Corporate and Business Development Officer
RedHill Biopharma
+972-54-6543-112
adi@redhillbio.com
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Media contacts:
U.S.: Bryan Gibbs, Finn Partners
+1 212 529 2236
bryan.gibbs@finnpartners.com
UK: Amber Fennell, Consilium
+44 (0) 7739 658 783
fennell@consilium-comms.com
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Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2021
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2020
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2021
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2020
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|||||||||||||
U.S. dollars in thousands
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||||||||||||||||
NET REVENUES
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21,609
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20,943
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63,686
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42,898
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||||||||||||
COST OF REVENUES
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9,229
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10,337
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30,072
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26,240
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GROSS PROFIT
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12,380
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10,606
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33,614
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16,658
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RESEARCH AND DEVELOPMENT EXPENSES
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5,818
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4,323
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23,630
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10,302
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||||||||||||
SELLING AND MARKETING EXPENSES
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15,525
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13,414
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44,655
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32,384
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GENERAL AND ADMINISTRATIVE EXPENSES
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8,435
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7,329
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25,765
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17,948
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OPERATING LOSS
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17,398
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14,460
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60,436
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43,976
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||||||||||||
FINANCIAL INCOME
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17
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42
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39
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339
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||||||||||||
FINANCIAL EXPENSES
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4,006
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4,220
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12,974
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8,205
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FINANCIAL EXPENSES, net
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3,989
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4,178
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12,935
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7,866
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LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD
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21,387
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18,638
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73,371
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51,842
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LOSS PER ORDINARY SHARE, basic and diluted (U.S. dollars):
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0.05
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0.05
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0.16
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0.14
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WEIGHTED AVERAGE OF ORDINARY SHARES (in thousands)
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467,908
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372,893
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454,995
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359,428
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September 30,
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December 31,
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|||||||
2021
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2020
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U.S. dollars in thousands
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CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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23,254
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29,295
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Bank deposits
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12,028
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17
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Financial assets at fair value through profit or loss
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—
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481
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Trade receivables
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30,036
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28,655
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Prepaid expenses and other receivables
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4,682
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5,521
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Inventory
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13,115
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6,526
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83,115
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70,495
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NON-CURRENT ASSETS:
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Restricted cash
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16,163
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16,164
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Fixed assets
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477
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511
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Right-of-use assets
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4,193
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5,192
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Intangible assets
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82,388
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87,879
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103,221
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109,746
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TOTAL ASSETS
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186,336
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180,241
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CURRENT LIABILITIES:
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||||||||
Account payable
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15,245
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11,553
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Lease liabilities
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1,743
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1,710
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Allowance for deductions from revenue
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28,356
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18,343
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Accrued expenses and other current liabilities
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20,587
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24,082
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Payable in respect of intangible assets purchase
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15,731
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17,547
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81,662
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73,235
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NON-CURRENT LIABILITIES:
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Borrowing
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83,516
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81,386
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Payable in respect of intangible assets purchase
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6,010
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7,199
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Lease liabilities
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2,849
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3,807
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Royalty obligation
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750
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750
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93,125
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93,142
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TOTAL LIABILITIES
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174,787
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166,377
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EQUITY:
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Ordinary shares
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1,316
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1,054
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Additional paid-in capital
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355,601
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293,144
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Accumulated deficit
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(345,368
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)
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(280,334
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)
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TOTAL EQUITY
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11,549
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13,864
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TOTAL LIABILITIES AND EQUITY
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186,336
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180,241
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Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2021
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2020
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2021
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2020
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U.S. dollars in thousands
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OPERATING ACTIVITIES:
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Comprehensive loss
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(21,387
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)
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(18,638
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)
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(73,371
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)
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(51,842
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)
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Adjustments in respect of income and expenses not involving cash flow:
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Share-based compensation to employees and service providers
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2,191
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1,695
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8,337
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3,120
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Depreciation
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507
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470
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1,465
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1,237
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Amortization and impairment of intangible assets
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1,834
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2,109
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5,491
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4,958
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Non-cash interest expenses related to borrowing and payable in respect of intangible assets purchase
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869
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2,039
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4,725
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3,656
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Fair value losses on financial assets at fair value through profit or loss
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—
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31
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6
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68
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Exchange differences and revaluation of bank deposits
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17
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5
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80
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(160
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)
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5,418
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6,349
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20,104
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12,879
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Changes in assets and liability items:
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Decrease (increase) in trade receivables
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62
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6,146
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(1,381
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)
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(11,208
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)
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Decrease (increase) in prepaid expenses and other receivables
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(390
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)
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235
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839
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(2,391
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)
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Increase in inventories
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(4,352
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(350
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(6,589
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(3,218
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Increase in accounts payable
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1,939
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1,261
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3,692
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2,385
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Increase (decrease) in accrued expenses and other liabilities
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(2,575
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(4,687
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(3,495
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17,437
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Increase in allowance for deductions from revenue
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2,260
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513
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10,013
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84
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(3,056
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)
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3,118
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3,079
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3,089
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Net cash used in operating activities
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(19,025
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)
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(9,171
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(50,188
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(35,874
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INVESTING ACTIVITIES:
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Purchase of fixed assets
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(21
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)
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(166
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)
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(112
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(357
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)
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Purchase of intangible assets
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—
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(735
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)
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—
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(53,368
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)
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Change in investment in current bank deposits
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(8,500
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)
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—
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(12,000
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)
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4,200
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Proceeds from sale of financial assets at fair value through profit or loss
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—
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2,075
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475
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6,025
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Net cash provided by (used in) investing activities
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(8,521
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)
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1,174
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(11,637
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(43,500
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FINANCING ACTIVITIES:
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Proceeds from long-term borrowings, net of transaction costs
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—
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(784
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—
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78,061
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Proceeds from issuance of ordinary shares, net of issuance costs
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499
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9,137
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58,713
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15,500
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Exercise of options into ordinary shares
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665
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53
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4,006
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53
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||||||||||||
Repayment of payable in respect of intangible asset purchase
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(1,721
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)
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—
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(5,600
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)
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—
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Increase in restricted cash
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—
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—
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—
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(20,000
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)
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|||||||||||
Decrease in restricted cash
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—
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4,000
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—
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4,000
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||||||||||||
Payment of principal with respect to lease liabilities
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(442
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)
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(450
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)
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(1,229
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)
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(1,186
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)
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||||||||
Net cash provided by (used in) financing activities
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(999
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)
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11,956
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55,890
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76,428
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
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(28,545
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)
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3,959
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(5,936
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)
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(2,946
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)
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EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS
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(17
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)
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(33
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)
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(105
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)
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121
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|||||||||
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
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51,816
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22,272
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29,295
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29,023
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||||||||||||
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD
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23,254
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26,198
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23,254
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26,198
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||||||||||||
SUPPLEMENTARY INFORMATION ON INTEREST RECEIVED IN CASH
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11
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71
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36
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320
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||||||||||||
SUPPLEMENTARY INFORMATION ON INTEREST PAID IN CASH
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3,250
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2,147
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8,266
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4,507
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SUPPLEMENTARY INFORMATION ON NON-CASH INVESTING AND FINANCING ACTIVITIES:
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||||||||||||||||
Acquisition of right-of-use assets by means of lease liabilities
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385
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533
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385
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2,738
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||||||||||||
Purchase of intangible assets posted as payable
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—
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12,511
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—
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24,619
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||||||||||||
Purchase of an intangible asset in consideration for issuance of shares
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—
|
1,914
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—
|
1,914
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