Operating Segments

12 Months Ended

Dec. 31, 2019

Disclosure of operating segments [abstract]

Operating Segments

Note 4 - Operating Segments

Since 2018 the chief operating decision marker (CODM) has started to review the results of two reportable segments, as described below, which form the Group’s strategic business units. The strategic business units offer different products and services and the allocation of resources and evaluation of performance are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Group’s CODM reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Group’s operating segments:

● Pain and Hypertension – Includes development and marketing of Consensi^TM a combination drug indicated for treating osteoarthritis pain and hypertension simultaneously, which was approved by the FDA for marketing in the U.S and has partner agreements in the U.S, China and South Korea.

● Oncology – Includes development of a small molecule that has demonstrated in pre-clinical studies the potential to overcome resistance to multiple anti-cancer drugs.

The accounting policies of the operating segments are the same as described in Note 3 regarding significant accounting policies.

Performance is measured based on segment operating results as included in reports that are regularly reviewed by the chief operating decision maker. Segment results are used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Segment results reported to the chief operating decision maker includes revenue and research and development expenses which are directly attributable to a segment on a reasonable basis.

Information about reportable segments

Information regarding the results of each reportable segment is included below.

	For the year ended December 31, 2019
	Pain and Hypertension		Oncology		Total reportable segments		Reconciliations (*)		Total consolidated
	USD in thousands
Revenues		1,000		-		1,000		-		1,000
Research and development expenses		395		2,041		2,436		238		2,674
Operating loss		3,068		2,815		5,883		1,273		7,156
Finance income, net										(1,479	)
Tax Expenses										216
Loss for the year										5,893

	For the year ended December 31, 2018
	Pain and Hypertension		Oncology		Total reportable segments		Reconciliations (*)			Total consolidated
	USD in thousands
Revenues		1,000		-		1,000		-			1,000
Research and development expenses		2,185		2,537		4,722		546			5,268
Operating loss		4,730		3,217		7,947		(121	)		7,826
Finance income, net											(2,257	)
Loss for the year											5,569

	For the year ended December 31, 2017
	Pain and Hypertension		Oncology		Total reportable segments		Reconciliations (*)		Total consolidated
	USD in thousands
Revenues		100		-		100		-		100
Research and development expenses		2,603		1,328		3,931		709		4,640
Operating loss		6,674		1,951		8,625		3,341		11,966
Finance income, net										947
Loss for the year										12,913

(*) Includes employees share based expenses and other expenses/income related to rights granted to Taoz.

Information on geographical segments

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers.

Revenues in 2019 are from the U.S and in each of 2018 and 2017 from the far-east. For further information see Note 13.

All of the Group’s non-current assets are located in Israel.