Investing activities used cash of $30,797,000 in the year ended June 30, 2012.
The investing activities consisted primarily of investment in short-term
deposits, purchase of available for sale marketable securities and investments
in equipment for our research and development facilities and the construction of
Financing activities generated cash in the amount of $632,000 during the year
ended June 30, 2012. Such amount is due to the exercise of warrants and options,
as follows. During fiscal year 2012, a total of 406,783 warrants were exercised
via a "cashless" manner, resulting in the issuance of 168,424 shares of common
stock to our investors. In addition 355,411 warrants were exercised for cash
and resulted in the issuance of 355,411 shares of common stock by our investors.
The aggregate cash consideration received for exercise of warrants was
$545,000. The balance of such amount, i.e., $87,000 was received from the
exercise of options for cash.
On September 19, 2012, we closed a firm commitment underwritten public offering
of 8,000,000 units, at a purchase price of $4.00 per unit, with each unit
consisting of one share of our common stock and one warrant to purchase 0.35
shares of common stock, at an exercise price of $5.00 per share. The warrants
sold in the offering are currently exercisable and will expire on September 19,
2017. We also granted the underwriters a 30-day option to purchase up to
1,200,000 shares of common stock and/or warrants to purchase up to 420,000
shares of common stock, which option was fully exercised. The aggregate net
proceeds to us from the offering, including from the exercise in full of the
option, were approximately $34 million, before the exercise of any warrants
(which has not yet occurred) and after deducting underwriting commissions and
discounts and our offering expenses.
During the years that ended June 30, 2013, 2012 and 2011 we received
approximately $1,452,000, $3,156,000 and $2,177,000, respectively, from the OCS
towards our research and development expenses. In August 2013, we received an
approval for a NIS 26,110,000 (approximately $7,217,000) grant from the OCS.
Once received, the grant will be used to cover research and development expenses
for the period January 1, 2013 to December 31, 2013, which is the period of the
company's research plan. According to the OCS grant terms, we are required to
pay royalties at a rate of 3% - 5% on sales of products and services derived
from technology developed using this and other OCS grants until 100% of the
dollar-linked grants amount plus interest are repaid. In the absence of such
sales, no payment is required. During the year ended June 30, 2013, we paid
royalties to the OCS in the aggregate amount of $22,000. The OCS limits our
ability to transfer know-how developed with OCS support outside of Israel,
regardless of whether the royalties were fully paid. In addition, the European
authorities approved a research grant under the European Commission's Seventh
Framework Program (FP7) in the amount of approximately $134,000 for a period of
5 years which began on January 1, 2011.