In December 2012, we entered into an At Market Issuance Sales Agreement (Sales
Agreement) with MLV & Co. LLC (MLV), which provides that, upon the terms and
subject to the conditions and limitations set forth in the Sales Agreement, we
may elect to issue and sell shares of our common stock having an aggregate
offering price of up to $95 million from time to time through MLV as our sales
agent. We are not obligated to make any sales of common stock under the Sales
Agreement. To date, we have not sold any common stock pursuant to the Sales
In February 2013, MTM - Scientific Industries Center Haifa Ltd. (MTM,), our
landlord participated by contributing an amount of NIS 2,990,000 (approximately
$800,000) toward the cost of constructing our new facility. Such participation
is being made pursuant to our lease agreement with MTM, and is recognized by
ratably deducting from our monthly rent payment over the rent period.
We adhere to an investment policy set by our investment committee which aims to
preserve our financial assets, maintain adequate liquidity and maximize return
while minimizing exposure to the NIS. Such policy further provides that we
should hold most of our current assets in bank deposits and the remainder of our
current assets is to be invested in government bonds and a combination of
corporate bonds and relatively low risk stocks. As of today, the currency of our
financial portfolio is mainly in U.S. dollars and we use forward and options
contracts in order to hedge our exposures to currencies other than the U.S.
We have accumulated a deficit of $86,902,000 since our inception in May 2001. We
do not expect to generate any revenues from sales of products in the next twelve
months. Our products will likely not be ready for sale for at least three years,
if at all. Our cash needs will increase in the foreseeable future. We expect to
generate revenues, which in the short and medium terms will unlikely exceed our
costs of operations, from the sale of licenses to use our technology or
products, as we have in the United Agreement. Our management believes that we
may need to raise additional funds before we have cash flow from operations that
can materially decrease our dependence on our existing cash and other liquidity
resources. We are continually looking for sources of funding, including
non-diluting sources such as the OCS grants.
In December 2012
we entered into the Sales Agreement that allows us to issue and
sell shares of our common stock from time to time.
We anticipate that the Clinical Hold may delay our clinical development plan.
During the Clinical Hold period we have stopped the recruitment of the IC study
and it may take time to reinitiate the clinical sites and brining patient
enrollment to the rate of enrolment before the Clinical Hold.
The OCS has supported our activity in the past seven years. Our last program,
for the eighth year, was approved by the OCS in August 2013 and relates to a NIS
26,110,000 (approximately $7,217,000) grant. Once received, the grant will be
used to cover research and development expenses for the period January 1, 2013
to December 31, 2013.