|
Israel
|
| |
3841
|
| |
Not Applicable
|
|
|
(State or other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Joshua Kiernan
Nathan Ajiashvili Latham & Watkins LLP 885 Third Avenue New York, New York 10022 +1 212 906 1200 |
| |
Ido Zemach
Goldfarb Seligman & Co. 98 Yigal Alon Street Tel Aviv 6789141, Israel Tel: +972 (3) 608-9999 |
| |
Michael D. Maline
Goodwin Procter LLP 620 8th Avenue New York, New York 10018 +1 212 813 8800 |
| |
Chaim Friedland
Ari Fried Gornitzky & Co. 45 Rothschild Blvd. Tel Aviv 6578403 Israel Tel: +972 (3) 710-9191 |
|
|
2,068,965 American Depositary Shares
Itamar Medical Ltd.
Representing Ordinary Shares
|
| |
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 13 | | | |
| | | | | 60 | | | |
| | | | | 62 | | | |
| | | | | 63 | | | |
| | | | | 64 | | | |
| | | | | 65 | | | |
| | | | | 67 | | | |
| | | | | 69 | | | |
| | | | | 89 | | | |
| | | | | 125 | | | |
| | | | | 139 | | | |
| | | | | 142 | | | |
| | | | | 144 | | | |
| | | | | 156 | | | |
| | | | | 164 | | | |
| | | | | 166 | | | |
| | | | | 174 | | | |
| | | | | 180 | | | |
| | | | | 181 | | | |
| | | | | 181 | | | |
| | | | | 182 | | | |
| | | | | 183 | | | |
| | | | | F-1 | | |
| | |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 21,493 | | | | | $ | 17,607 | | | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
Cost of revenues
|
| | | | 4,869 | | | | | | 4,239 | | | | | | 5,726 | | | | | | 5,002 | | | | | | 4,979 | | |
Gross profit
|
| | | | 16,624 | | | | | | 13,368 | | | | | | 18,463 | | | | | | 15,699 | | | | | | 13,461 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 12,985 | | | | | | 9,242 | | | | | | 12,699 | | | | | | 12,140 | | | | | | 14,035 | | |
Research and development expenses
|
| | | | 3,165 | | | | | | 2,761 | | | | | | 3,638 | | | | | | 4,129 | | | | | | 3,225 | | |
General and administrative expenses
|
| | | | 4,491 | | | | | | 3,932 | | | | | | 5,247 | | | | | | 5,278 | | | | | | 6,213 | | |
Total operating expenses
|
| | | | 20,641 | | | | | | 15,935 | | | | | | 21,584 | | | | | | 21,547 | | | | | | 23,473 | | |
Operating loss
|
| | | | (4,017) | | | | | | (2,567) | | | | | | (3,121) | | | | | | (5,848) | | | | | | (10,012) | | |
Financial income from cash, bank deposits and investments
|
| | | | 336 | | | | | | 237 | | | | | | 244 | | | | | | 1,591 | | | | | | 716 | | |
Financial expenses from leases, notes, loans and
other |
| | | | (895) | | | | | | (961) | | | | | | (1,161) | | | | | | (4,884) | | | | | | (4,760) | | |
Gain (loss) from derivative instruments, net
|
| | | | 442 | | | | | | 1,886 | | | | | | 2,433 | | | | | | 3,925 | | | | | | (216) | | |
Financial income (expenses), net
|
| | | | (117) | | | | | | 1,162 | | | | | | 1,516 | | | | | | 632 | | | | | | (4,260) | | |
Loss before income taxes
|
| | | | (4,134) | | | | | | (1,405) | | | | | | (1,605) | | | | | | (5,216) | | | | | | (14,272) | | |
Taxes on income
|
| | | | (135) | | | | | | (110) | | | | | | (124) | | | | | | (85) | | | | | | (131) | | |
Net loss
|
| | | $ | (4,269) | | | | | $ | (1,515) | | | | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
Diluted
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
|
| | |
As of September 30, 2019
|
| |||||||||
| | |
Actual
|
| |
As Adjusted(1)
|
| ||||||
| | |
(in thousands)
(Unaudited) |
| |||||||||
Consolidated Statement of Financial Position Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 8,426 | | | | | $ | 34,346 | | |
Short-term bank deposits
|
| | | | 9,000 | | | | | | 9,000 | | |
Working capital(2)
|
| | | | 15,557 | | | | | | 41,477 | | |
Total assets
|
| | | | 32,549 | | | | | | 58,469 | | |
Total liabilities
|
| | | | 15,253 | | | | | | 15,253 | | |
Total equity
|
| | | | 17,296 | | | | | | 43,216 | | |
| | |
As of September 30, 2019
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(in thousands)
|
| |||||||||
| | |
(Unaudited)
|
| |||||||||
Cash, cash equivalents and short-term bank deposits
|
| | | $ | 17,426 | | | | | $ | 43,346 | | |
Equity: | | | | | | | | | | | | | |
Share capital
|
| | | | 874 | | | | | | 1,054 | | |
Additional paid-in capital
|
| | | | 125,351 | | | | | | 151,091 | | |
Accumulated deficit
|
| | | | (108,929) | | | | | | (108,929) | | |
Total equity
|
| | | | 17,296 | | | | | | 43,216 | | |
Total capitalization
|
| | | $ | 17,296 | | | | | $ | 43,216 | | |
|
Assumed public offering price per ADS
|
| |
|
| | | $ | 14.50 | | | |||
|
Historical net tangible book value per ADS as of September 30, 2019
|
| | | $ | 1.52 | | | | | | | | |
|
Increase in net tangible book value per ADS attributable to new investors
|
| | | $ | 1.73 | | | | | | | | |
|
Pro forma net tangible book value per ADS after this offering
|
| | | | | | | | | $ | 3.25 | | |
|
Dilution per ADS to new investors
|
| | | | 9.28 | | | | | | | | |
|
Percentage of dilution in net tangible book value per ADS for new investors
|
| | | | | | | | | | 64.02% | | |
| | |
Ordinary Shares
Purchased |
| |
Total
Consideration |
| |
Average
Price per Ordinary Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
Existing shareholders
|
| | | | 334,002,713 | | | | | | 84.3% | | | | | $ | 126,225 | | | | | | 83.0% | | | | | $ | 0.38 | | |
New investors (treating each ADS as 30 ordinary shares)
|
| | | | 62,068,950 | | | | | | 15.7 | | | | | | 25,920 | | | | | | 17.0 | | | | | | 0.42 | | |
Total
|
| | | | 396,071,663 | | | | | | 100.0% | | | | | $ | 152,145 | | | | | | 100.0% | | | | | | | | |
| | |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 21,493 | | | | | $ | 17,607 | | | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
Cost of revenues
|
| | | | 4,869 | | | | | | 4,239 | | | | | | 5,726 | | | | | | 5,002 | | | | | | 4,979 | | |
Gross profit
|
| | | | 16,624 | | | | | | 13,368 | | | | | | 18,463 | | | | | | 15,699 | | | | | | 13,461 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 12,985 | | | | | | 9,242 | | | | | | 12,699 | | | | | | 12,140 | | | | | | 14,035 | | |
Research and development expenses
|
| | | | 3,165 | | | | | | 2,761 | | | | | | 3,638 | | | | | | 4,129 | | | | | | 3,225 | | |
General and administrative expenses
|
| | | | 4,491 | | | | | | 3,932 | | | | | | 5,247 | | | | | | 5,278 | | | | | | 6,213 | | |
Total operating expenses
|
| | | | 20,641 | | | | | | 15,935 | | | | | | 21,584 | | | | | | 21,547 | | | | | | 23,473 | | |
Operating loss
|
| | | | (4,017) | | | | | | (2,567) | | | | | | (3,121) | | | | | | (5,848) | | | | | | (10,012) | | |
Financial income from cash, bank deposits and investments
|
| | | | 336 | | | | | | 237 | | | | | | 244 | | | | | | 1,591 | | | | | | 716 | | |
Financial expenses from leases, notes, loans and
other |
| | | | (895) | | | | | | (961) | | | | | | (1,161) | | | | | | (4,884) | | | | | | (4,760) | | |
Gain (loss) from derivative instruments, net
|
| | | | 442 | | | | | | 1,886 | | | | | | 2,433 | | | | | | 3,925 | | | | | | (216) | | |
Financial income (expenses), net
|
| | | | (117) | | | | | | 1,162 | | | | | | 1,516 | | | | | | 632 | | | | | | (4,260) | | |
Loss before income taxes
|
| | | | (4,134) | | | | | | (1,405) | | | | | | (1,605) | | | | | | (5,216) | | | | | | (14,272) | | |
Taxes on income
|
| | | | (135) | | | | | | (110) | | | | | | (124) | | | | | | (85) | | | | | | (131) | | |
Net loss
|
| | | $ | (4,269) | | | | | $ | (1,515) | | | | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
Diluted
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
| | |
As of September 30,
|
| |
As of December 31,
|
| | ||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| | |||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | |||||
Consolidated Statement of Financial Position Data: | | | | | | | | | | | | | | | | | | | | | ||
Cash and cash equivalents
|
| | | $ | 8,426 | | | | | $ | 6,471 | | | | | $ | 7,643 | | | | ||
Short-term bank deposits
|
| | | | 9,000 | | | | | | — | | | | | | — | | | | ||
Investment in marketable securities
|
| | | | — | | | | | | — | | | | | | 3,173 | | | | ||
Working capital(1)
|
| | | | 15,557 | | | | | | 6,222 | | | | | | 3,356 | | | | ||
Total assets
|
| | | | 32,549 | | | | | | 18,392 | | | | | | 21,277 | | | | ||
Total liabilities
|
| | | | 15,253 | | | | | | 11,704 | | | | | | 19,900 | | | | ||
Total equity
|
| | | | 17,296 | | | | | | 6,688 | | | | | | 1,377 | | | |
| | |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 21,493 | | | | | $ | 17,607 | | | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
Cost of revenues
|
| | | | 4,869 | | | | | | 4,239 | | | | | | 5,726 | | | | | | 5,002 | | | | | | 4,979 | | |
Gross profit
|
| | | | 16,624 | | | | | | 13,368 | | | | | | 18,463 | | | | | | 15,699 | | | | | | 13,461 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 12,985 | | | | | | 9,242 | | | | | | 12,699 | | | | | | 12,140 | | | | | | 14,035 | | |
Research and development expenses
|
| | | | 3,165 | | | | | | 2,761 | | | | | | 3,638 | | | | | | 4,129 | | | | | | 3,225 | | |
General and administrative expenses
|
| | | | 4,491 | | | | | | 3,932 | | | | | | 5,247 | | | | | | 5,278 | | | | | | 6,213 | | |
Total operating expenses
|
| | | | 20,641 | | | | | | 15,935 | | | | | | 21,584 | | | | | | 21,547 | | | | | | 23,473 | | |
Operating loss
|
| | | | (4,017) | | | | | | (2,567) | | | | | | (3,121) | | | | | | (5,848) | | | | | | (10,012) | | |
Financial income from cash, bank deposits and investments
|
| | | | 336 | | | | | | 237 | | | | | | 244 | | | | | | 1,591 | | | | | | 716 | | |
Financial expenses from leases, notes, loans and
other |
| | | | (895) | | | | | | (961) | | | | | | (1,161) | | | | | | (4,884) | | | | | | (4,760) | | |
Gain (loss) from derivative instruments, net
|
| | | | 442 | | | | | | 1,886 | | | | | | 2,433 | | | | | | 3,925 | | | | | | (216) | | |
Financial income (expenses), net
|
| | | | (117) | | | | | | 1,162 | | | | | | 1,516 | | | | | | 632 | | | | | | (4,260) | | |
Loss before income taxes
|
| | | | (4,134) | | | | | | (1,405) | | | | | | (1,605) | | | | | | (5,216) | | | | | | (14,272) | | |
Taxes on income
|
| | | | (135) | | | | | | (110) | | | | | | (124) | | | | | | (85) | | | | | | (131) | | |
Net loss
|
| | | $ | (4,269) | | | | | $ | (1,515) | | | | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
Diluted
|
| | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
|
| | |
Nine Months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Cost of revenues
|
| | | | 22.7 | | | | | | 24.1 | | | | | | 23.7 | | | | | | 24.2 | | | | | | 27.0 | | |
Gross profit
|
| | | | 77.3 | | | | | | 75.9 | | | | | | 76.3 | | | | | | 75.8 | | | | | | 73.0 | | |
Operating expenses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 60.4 | | | | | | 52.5 | | | | | | 52.5 | | | | | | 58.6 | | | | | | 76.1 | | |
Research and development expenses
|
| | | | 14.7 | | | | | | 15.7 | | | | | | 15.0 | | | | | | 19.9 | | | | | | 17.5 | | |
General and administrative expenses
|
| | | | 20.9 | | | | | | 22.3 | | | | | | 21.7 | | | | | | 25.5 | | | | | | 33.7 | | |
Total operating expenses
|
| | | | 96.0 | | | | | | 90.5 | | | | | | 89.2 | | | | | | 104.0 | | | | | | 127.3 | | |
Operating loss
|
| | | | (18.7) | | | | | | (14.6) | | | | | | (12.9) | | | | | | (28.2) | | | | | | (54.3) | | |
Financial income from cash, bank deposits and investments
|
| | | | 1.6 | | | | | | 1.4 | | | | | | 1.0 | | | | | | 7.6 | | | | | | 3.9 | | |
Financial expenses from leases notes, loans and other
|
| | | | (4.2) | | | | | | (5.5) | | | | | | (4.8) | | | | | | (23.6) | | | | | | (25.8) | | |
Gain (loss) from derivative instruments, net
|
| | | | 2.1 | | | | | | 10.7 | | | | | | 10.1 | | | | | | 19.0 | | | | | | (1.2) | | |
Financial income (expenses), net
|
| | | | (0.5) | | | | | | 6.6 | | | | | | 6.3 | | | | | | 3.0 | | | | | | (23.1) | | |
Loss before income taxes
|
| | | | (19.2) | | | | | | (8.0) | | | | | | (6.6) | | | | | | (25.2) | | | | | | (77.4) | | |
Taxes on income
|
| | | | (0.7) | | | | | | (0.6) | | | | | | (0.5) | | | | | | (0.4) | | | | | | (0.7) | | |
Net loss
|
| | | | (19.9)% | | | | | | (8.6)% | | | | | | (7.1)% | | | | | | (25.6)% | | | | | | (78.1)% | | |
| | |
Nine months Ended
September 30, |
| |
Increase
% |
| ||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
WatchPAT and other related services
|
| | | $ | 19,906 | | | | | $ | 16,382 | | | | | | 21.5 | | |
EndoPAT and other related services
|
| | | | 1,587 | | | | | | 1,225 | | | | | | 29.5 | | |
Total
|
| | | $ | 21,493 | | | | | $ | 17,607 | | | | | | 22.1 | | |
|
| | |
Nine months Ended
September 30, |
| |
Increase
% |
| ||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
United States and Canada
|
| | | $ | 15,461 | | | | | $ | 13,002 | | | | | | 18.9 | | |
Japan
|
| | | | 2,595 | | | | | | 2,492 | | | | | | 4.1 | | |
Europe
|
| | | | 2,367 | | | | | | 1,147 | | | | | | 106.4 | | |
Asia Pacific (excluding Japan)
|
| | | | 643 | | | | | | 621 | | | | | | 3.5 | | |
Other
|
| | | | 427 | | | | | | 345 | | | | | | 23.8 | | |
Total
|
| | | $ | 21,493 | | | | | $ | 17,607 | | | | | | 22.1 | | |
| | |
Nine months Ended
September 30, |
| |
Increase
% |
| ||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
Selling and marketing
|
| | | $ | 12,985 | | | | | $ | 9,242 | | | | | | 40.5 | | |
Research and development
|
| | | | 3,165 | | | | | | 2,761 | | | | | | 14.6 | | |
General and administrative
|
| | | | 4,491 | | | | | | 3,932 | | | | | | 14.2 | | |
Total
|
| | | $ | 20,641 | | | | | $ | 15,935 | | | | | | 29.5 | | |
| | |
Year Ended
December 31, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
WatchPAT and other related services
|
| | | $ | 22,384 | | | | | $ | 18,105 | | | | | | 23.6 | | |
EndoPAT and other related services
|
| | | | 1,805 | | | | | | 2,596 | | | | | | (30.5) | | |
Total
|
| | | $ | 24,189 | | | | | $ | 20,701 | | | | | | 16.8 | | |
|
| | |
Year Ended
December 31, |
| |
Increase
% |
| ||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
United States and Canada
|
| | | $ | 17,582 | | | | | $ | 14,764 | | | | | | 19.1 | | |
Japan
|
| | | | 3,374 | | | | | | 2,965 | | | | | | 13.8 | | |
Europe
|
| | | | 1,885 | | | | | | 1,746 | | | | | | 8.0 | | |
Asia Pacific (excluding Japan)
|
| | | | 849 | | | | | | 759 | | | | | | 11.9 | | |
Other
|
| | | | 499 | | | | | | 467 | | | | | | 6.9 | | |
Total
|
| | | $ | 24,189 | | | | | $ | 20,701 | | | | | | 16.8 | | |
| | |
Year Ended
December 31, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
Selling and marketing
|
| | | $ | 12,699 | | | | | $ | 12,140 | | | | | | 4.6 | | |
Research and development
|
| | | | 3,638 | | | | | | 4,129 | | | | | | (11.9) | | |
General and administrative
|
| | | | 5,247 | | | | | | 5,278 | | | | | | (0.6) | | |
Total
|
| | | $ | 21,584 | | | | | $ | 21,547 | | | | | | 0.2 | | |
| | |
Year Ended
December 31, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
WatchPAT and other related services
|
| | | $ | 18,105 | | | | | $ | 15,697 | | | | | | 15.3 | | |
EndoPAT and other related services
|
| | | | 2,596 | | | | | | 2,743 | | | | | | (5.4) | | |
Total
|
| | | $ | 20,701 | | | | | $ | 18,440 | | | | | | 12.3 | | |
|
| | |
Year Ended
December 31, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
United States and Canada
|
| | | $ | 14,764 | | | | | $ | 13,343 | | | | | | 10.6 | | |
Japan
|
| | | | 2,965 | | | | | | 2,161 | | | | | | 37.2 | | |
Europe
|
| | | | 1,746 | | | | | | 1,542 | | | | | | 13.2 | | |
Asia Pacific (excluding Japan)
|
| | | | 759 | | | | | | 1,017 | | | | | | (25.4) | | |
Other
|
| | | | 467 | | | | | | 377 | | | | | | 23.9 | | |
Total
|
| | | $ | 20,701 | | | | | $ | 18,440 | | | | | | 12.3 | | |
| | |
Year Ended
December 31, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||
Selling and marketing
|
| | | $ | 12,140 | | | | | $ | 14,035 | | | | | | (13.5) | | |
Research and development
|
| | | | 4,129 | | | | | | 3,225 | | | | | | 28.0 | | |
General and administrative
|
| | | | 5,278 | | | | | | 6,213 | | | | | | (15.0) | | |
Total
|
| | | $ | 21,547 | | | | | $ | 23,473 | | | | | | (8.2) | | |
| | |
Nine months Ended
September 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |||||||||
Net cash used in operating activities*
|
| | | $ | (2,157) | | | | | $ | (3,018) | | | | | $ | (3,883) | | | | | $ | (6,182) | | | | | $ | (10,630) | | |
Net Cash provided by (used in) investing activities
|
| | | | (9,474) | | | | | | 2,956 | | | | | | 2,799 | | | | | | (318) | | | | | | (568) | | |
Net Cash provided by (used in) financing
activities |
| | | | 13,408 | | | | | | (140) | | | | | | (85) | | | | | | (10,324) | | | | | | 1,100 | | |
Increase (decrease) in cash and cash equivalents
|
| | | $ | 1,777 | | | | | $ | (202) | | | | | $ | (1,169) | | | | | $ | (16,824) | | | | | $ | (10,098) | | |
| | |
Total
|
| |
Less than 1
year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Operating leases(1)
|
| | | $ | 2,073 | | | | | $ | 847 | | | | | $ | 1,226 | | | | | $ | — | | | | | $ | — | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers | | | | | | | |
Gilad Glick
|
| | 47 | | | President and Chief Executive Officer, Acting Vice President Marketing and Sales, Acting President of our U.S. subsidiary | |
Shy Basson
|
| | 48 | | | Chief Financial Officer and U.S. Chief Operating Officer | |
Shlomo Ayanot(1)
|
| | 64 | | | Vice President, Engineering and Operations | |
Itay Kariv
|
| | 61 | | | Vice President of Research and Development | |
Efrat Litman
|
| | 46 | | | Vice President of Advanced Research and Development | |
Eilon Livne
|
| | 49 | | | Vice President Sales and Channels Development EMEA | |
Shiri Shneorson, PhD
|
| | 45 | | | Vice President and General Manager of Digital Health Business Unit | |
Non-Employee Directors | | | | | | | |
Giora Yaron, PhD
|
| | 71 | | | Chairman of the Board | |
Martin Gerstel(2)
|
| | 78 | | | Director | |
Ilan Biran
|
| | 73 | | | Director | |
Jonathan Kolber
|
| | 58 | | | Director | |
Sami Totah
|
| | 62 | | | Director | |
Christopher M. Cleary
|
| | 59 | | | Director | |
Yaffa Krindel Sieradzki
|
| | 65 | | | External Director | |
Zipora (Tzipi) Ozer-Armon
|
| | 55 | | | External Director | |
| | |
Salaries, fees,
commissions and bonuses(3) |
| |
Pension, retirement
and similar benefits |
| |
Share-based
compensation |
| |||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||
All directors and executive officers as a group, consisting of 16 persons(2) for the year ended December 31, 2019
|
| | | $ | 2,262 | | | | | $ | 152 | | | | | $ | 938 | | |
Name and Principal Position(1)
|
| |
Annual
Base Salary(2) |
| |
Bonus(3)
|
| |
Sales
Commissions(4) |
| |
Equity-Based
Compensation(5) |
| |
All Other
Compensation(6) |
| |
Total
|
| ||||||||||||||||||
| | |
(U.S. dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Gilad Glick, President and Chief Executive Officer
|
| | | | 346 | | | | | | 194 | | | | | | — | | | | | | 421 | | | | | | 21 | | | | | | 982 | | |
Shy Basson, Chief Financial Officer and U.S. Chief Operating Officer
|
| | | | 202 | | | | | | 126 | | | | | | — | | | | | | 141 | | | | | | 69 | | | | | | 538 | | |
Itay Kariv, Vice President of
Research and Development |
| | | | 163 | | | | | | 21 | | | | | | — | | | | | | 66 | | | | | | 59 | | | | | | 309 | | |
Efrat Litman, Vice President of
Advanced Research and Development |
| | | | 156 | | | | | | 21 | | | | | | — | | | | | | 64 | | | | | | 49 | | | | | | 290 | | |
Eilon Livne, Vice President of
Sales and Channels Development EMEA Region |
| | | | 126 | | | | | | — | | | | | | 71 | | | | | | 72 | | | | | | 12 | | | | | | 281 | | |
| | |
As of
September 30, 2019 |
| |
As of December 31,
|
| ||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||
Numbers of employees by geographic location | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | 72 | | | | | | 55 | | | | | | 43 | | |
Israel
|
| | | | 101 | | | | | | 97 | | | | | | 94 | | |
Japan
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | |
Total workforce
|
| | |
|
174
|
| | | |
|
153
|
| | | |
|
138
|
| |
Numbers of employees by category of activity | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 52 | | | | | | 31 | | | | | | 27 | | |
Support in sales and marketing
|
| | | | 16 | | | | | | 21 | | | | | | 15 | | |
Management and administrative
|
| | | | 24 | | | | | | 21 | | | | | | 20 | | |
Operations, engineering and manufacturing
|
| | | | 62 | | | | | | 63 | | | | | | 62 | | |
Research, development and technologies
|
| | | | 20 | | | | | | 17 | | | | | | 14 | | |
Total workforce
|
| | |
|
174
|
| | | |
|
153
|
| | | |
|
138
|
| |
| | |
Number of
Ordinary Shares Beneficially Owned Before Offering |
| |
Percentage of Ordinary Shares
Beneficially Owned |
| ||||||||||||
Name and address of beneficial owner
|
| |
Before Offering
|
| |
After Offering
|
| ||||||||||||
5% or Greater Shareholders: | | | | | | | | | | | | | | | | | | | |
Entities affiliated with the Viola Group(1)
|
| | | | 72,731,918 | | | | | | 21.8% | | | | | | 18.3% | | |
MS Pace LP(2)
|
| | | | 40,307,413 | | | | | | 12.0 | | | | | | 10.1 | | |
Yelin Lapidot Holdings Management Ltd.(3)
|
| | | | 24,938,020 | | | | | | 7.4 | | | | | | 6.3 | | |
Migdal Insurance & Financial Holdings Ltd.(4)
|
| | | | 20,495,638 | | | | | | 6.1 | | | | | | 5.2 | | |
Executive Officers and Directors: | | | | | | | | | | | | | | | | | | | |
Giora Yaron, Ph.D.(5)
|
| | | | 30,394,514 | | | | | | 9.1 | | | | | | 7.6 | | |
Gilad Glick(6)
|
| | | | 3,905,862 | | | | | | 1.2 | | | | | | 1.0 | | |
Shy Basson(7)
|
| | | | 252,689 | | | | | | * | | | | | | * | | |
Shlomo Ayanot(8)
|
| | | | 1,661,801 | | | | | | * | | | | | | * | | |
Itay Kariv(9)
|
| | | | 168,286 | | | | | | * | | | | | | * | | |
Efrat Litman(10)
|
| | | | 657,925 | | | | | | * | | | | | | * | | |
Eilon Livne(11)
|
| | | | 115,646 | | | | | | * | | | | | | * | | |
Shiri Shneorson
|
| | | | — | | | | | | — | | | | | | — | | |
Martin Gerstel(12)
|
| | | | 15,045,141 | | | | | | 4.5 | | | | | | 3.8 | | |
Ilan Biran(13)
|
| | | | 548,158 | | | | | | * | | | | | | * | | |
Jonathan Kolber(14)
|
| | | | — | | | | | | — | | | | | | — | | |
Sami Totah(15)
|
| | | | — | | | | | | — | | | | | | — | | |
Christopher M. Cleary(16)
|
| | | | — | | | | | | — | | | | | | — | | |
Yaffa Krindel Sieradzki(17)
|
| | | | 326,425 | | | | | | * | | | | | | * | | |
Zipora (Tzipi) Ozer-Armon(18)
|
| | | | 165,000 | | | | | | * | | | | | | * | | |
Directors and executive officers as a group (consisting of 15 persons)(19)
|
| | | | 53,241,448 | | | | | | 15.6 | | | | | | 13.4 | | |
Persons depositing or withdrawing shares or ADS holders must
pay: |
| |
For:
|
|
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | | |
Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property
Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
|
|
$.05 (or less) per ADS | | | Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | | | Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
$.05 (or less) per ADS per calendar year | | | Depositary services | |
Registration or transfer fees that depend on the applicable bank or local custodian* | | | Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares | |
Expenses of the depositary | | |
Cable (including SWIFT) and facsimile transmissions (when expressly provided in the deposit agreement)
Converting foreign currency to U.S. dollars
|
|
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | | | As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | | | As necessary | |
Name
|
| |
Number of ADSs
|
|
Piper Sandler & Co.
|
| | | |
Ladenburg Thalmann & Co. Inc.
|
| | | |
A.G.P./Alliance Global Partners
|
| |
|
|
Total
|
| |
2,068,965
|
|
| | | | | | | | |
Total
|
| |||||||||
| | |
Per
ADS |
| |
Without
Option |
| |
With
Option |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | |
Expenses
|
| |
Amount
|
| |||
Securities and Exchange Commission registration fee
|
| | | $ | 4,479 | | |
FINRA filing fee
|
| | | | 5,025 | | |
Printing and engraving expenses
|
| | | | 150,000 | | |
Legal fees and expenses
|
| | | | 670,000 | | |
Accounting fees and expenses
|
| | | | 40,000 | | |
Advisory fees and expenses
|
| | | | 750,000 | | |
Miscellaneous costs
|
| | | | 360,496 | | |
Total
|
| | | $ | 1,980,000 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements as of December 31, 2018 and 2017 and for the Years Ended December 31, 2018, 2017 and 2016
|
| | |||||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | |
| | |
Page
|
| |||
Unaudited Interim Consolidated Financial Statements as of September 30, 2019 and for the Three and Nine Months Ended September 30, 2019 and 2018
|
| | |||||
| | | | F-47 | | | |
| | | | F-48 | | | |
| | | | F-49 | | | |
| | | | F-50 | | | |
| | | | F-51 | | | |
| | | | F-52 | | |
| /s/ Somekh Chaikin | |
| Certified Public Accountants (Isr.) | |
| Member firm of KPMG International | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
Note
|
| |
2018
|
| |
2017
|
| |||||||||
| | | | | | | | |
U.S. dollars in thousands
|
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | | | $ | 6,471 | | | | | $ | 7,643 | | |
Investments in marketable securities
|
| | | | 20 | | | | | | — | | | | | | 3,173 | | |
Trade receivables
|
| | | | 3 | | | | | | 6,549 | | | | | | 5,362 | | |
Other receivables
|
| | | | 3 | | | | | | 1,018 | | | | | | 685 | | |
Inventories
|
| | | | 4 | | | | | | 2,235 | | | | | | 2,260 | | |
Total current assets
|
| | | | | | | | | | 16,273 | | | | | | 19,123 | | |
Non-current assets | | | | | | | | | | | | | | | | | | | |
Long-term restricted deposits and prepaid expenses
|
| | | | | | | | | | 365 | | | | | | 382 | | |
Long-term trade receivables
|
| | | | 3 | | | | | | 243 | | | | | | 473 | | |
Property and equipment
|
| | | | 5 | | | | | | 1,213 | | | | | | 1,022 | | |
Intangible assets
|
| | | | 6 | | | | | | 298 | | | | | | 277 | | |
Total non-current assets
|
| | | | | | | | | | 2,119 | | | | | | 2,154 | | |
Total assets
|
| | | | | | | | | $ | 18,392 | | | | | $ | 21,277 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | | | | | | $ | 1,517 | | | | | $ | 1,262 | | |
Short-term employee benefits
|
| | | | 7 | | | | | | 222 | | | | | | 223 | | |
Short-term bank loan
|
| | | | 8a | | | | | | 5,000 | | | | | | — | | |
Current maturities of convertible notes
|
| | | | 8b | | | | | | — | | | | | | 10,696 | | |
Provisions
|
| | | | 9 | | | | | | 215 | | | | | | 183 | | |
Accrued expenses
|
| | | | | | | | | | 1,034 | | | | | | 1,405 | | |
Other accounts payable
|
| | | | 10 | | | | | | 2,063 | | | | | | 1,998 | | |
Total current liabilities
|
| | | | | | | | | | 10,051 | | | | | | 15,767 | | |
Non-current liabilities | | | | | | | | | | | | | | | | | | | |
Derivative instruments
|
| | | | 11 | | | | | | 442 | | | | | | 2,875 | | |
Long-term employee benefits
|
| | | | 7 | | | | | | 159 | | | | | | 310 | | |
Other long-term liabilities
|
| | | | 12 | | | | | | 1,052 | | | | | | 948 | | |
Total non-current liabilities
|
| | | | | | | | | | 1,653 | | | | | | 4,133 | | |
Total liabilities
|
| | | | | | | | | | 11,704 | | | | | | 19,900 | | |
Commitments
|
| | | | 12 | | | | | | | | | | | | | | |
Equity
|
| | | | 14 | | | | | | | | | | | | | | |
Ordinary share capital
|
| | | | | | | | | | 748 | | | | | | 683 | | |
Additional paid-in capital
|
| | | | | | | | | | 111,486 | | | | | | 105,585 | | |
Capital reserve from marketable securities available-for-sale
|
| | | | | | | | | | — | | | | | | 113 | | |
Accumulated deficit
|
| | | | | | | | | | (105,546) | | | | | | (105,004) | | |
Total equity
|
| | | | | | | | | | 6,688 | | | | | | 1,377 | | |
Total liabilities and equity
|
| | | | | | | | | $ | 18,392 | | | | | $ | 21,277 | | |
|
| | | | | | | | |
Year Ended December 31,
|
| |||||||||||||||
| | |
Note
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | | | | | | | |
U.S. dollars in thousands
(except per share data) |
| |||||||||||||||
Revenues
|
| | | | 16 | | | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
Cost of revenues
|
| | | | 17 | | | | | | 5,726 | | | | | | 5,002 | | | | | | 4,979 | | |
Gross profit
|
| | | | | | | | | | 18,463 | | | | | | 15,699 | | | | | | 13,461 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | | | | | | | 12,699 | | | | | | 12,140 | | | | | | 14,035 | | |
Research and development expenses
|
| | | | | | | | | | 3,638 | | | | | | 4,129 | | | | | | 3,225 | | |
General and administrative expenses
|
| | | | | | | | | | 5,247 | | | | | | 5,278 | | | | | | 6,213 | | |
Total operating expenses
|
| | | | | | | | | | 21,584 | | | | | | 21,547 | | | | | | 23,473 | | |
Operating loss
|
| | | | | | | | | | (3,121) | | | | | | (5,848) | | | | | | (10,012) | | |
Financial income from cash and investments
|
| | | | 18 | | | | | | 244 | | | | | | 1,591 | | | | | | 716 | | |
Financial expenses from notes, loans and other
|
| | | | 18 | | | | | | (1,161) | | | | | | (4,884) | | | | | | (4,760) | | |
Gain (loss) from derivatives instruments, net
|
| | | | 18 | | | | | | 2,433 | | | | | | 3,925 | | | | | | (216) | | |
Financial income (expenses), net
|
| | | | | | | | | | 1,516 | | | | | | 632 | | | | | | (4,260) | | |
Loss before taxes on income
|
| | | | | | | | | | (1,605) | | | | | | (5,216) | | | | | | (14,272) | | |
Taxes on income
|
| | | | 13 | | | | | | (124) | | | | | | (85) | | | | | | (131) | | |
Net loss
|
| | | | | | | | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Loss per share (in U.S. dollars):
|
| | | | 19 | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
Diluted
|
| | | | | | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | (0.05) | | |
| | | | | | | | |
Year Ended December 31,
|
| |||||||||||||||
| | |
Note
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | | | | | | | |
U.S. dollars in thousands
|
| |||||||||||||||
Net loss
|
| | | | | | | | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Other comprehensive income (loss) items that will not be carried
to the statements of operations |
| | | | | | | | | | | | | | | | | | | | | | | | |
Actuarial gains (losses) of defined benefit plan, net of tax
|
| | | | 7 | | | | | | 166 | | | | | | (112) | | | | | | (107) | | |
Total other comprehensive income (loss) for the year that will not be carried to the statements of operations, net of tax
|
| | | | | | | | | | 166 | | | | | | (112) | | | | | | (107) | | |
Other comprehensive income (loss) items that after preliminary recognition in comprehensive income (loss), were or will be carried to the statements of operations
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net change in fair value of marketable securities available-for-sale, net of tax
|
| | | | | | | | | | — | | | | | | 158 | | | | | | 9 | | |
Net change in fair value of marketable securities through other
comprehensive income (loss), net of tax that was transferred to the statements of operations |
| | | | | | | | | | (113) | | | | | | — | | | | | | — | | |
Total other comprehensive income (loss) items that after
preliminary recognition in comprehensive income, were or will be carried to the statements of operations, net of tax |
| | | | | | | | | | (113) | | | | | | 158 | | | | | | 9 | | |
Other total comprehensive income (loss)
|
| | | | | | | | | | 53 | | | | | | 46 | | | | | | (98) | | |
Total comprehensive loss
|
| | | | | | | | | $ | (1,676) | | | | | $ | (5,255) | | | | | $ | (14,501) | | |
| | |
Ordinary
share capital |
| |
Additional
paid-in capital |
| |
Capital
reserve from marketable securities available- for-sale |
| |
Accumulated
deficit |
| |
Total
|
| |||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||
For the year ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2016
|
| | | $ | 670 | | | | | $ | 104,486 | | | | | $ | (54) | | | | | $ | (88,151) | | | | | $ | 16,951 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (14,403) | | | | | | (14,403) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | 9 | | | | | | (107) | | | | | | (98) | | |
Total comprehensive loss
|
| | | | — | | | | | | — | | | | | | 9 | | | | | | (14,510) | | | | | | (14,501) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of
stock options |
| | | | 1 | | | | | | 16 | | | | | | — | | | | | | — | | | | | | 17 | | |
Issuance of shares and warrants, net of issuance costs
|
| | | | 8 | | | | | | 990 | | | | | | — | | | | | | — | | | | | | 998 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,776 | | | | | | 1,776 | | |
Balance as of December 31, 2016
|
| | | $ | 679 | | | | | $ | 105,492 | | | | | $ | (45) | | | | | $ | (100,885) | | | | | $ | 5,241 | | |
For the year ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2017
|
| | | $ | 679 | | | | | $ | 105,492 | | | | | $ | (45) | | | | | $ | (100,885) | | | | | $ | 5,241 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5,301) | | | | | | (5,301) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | 158 | | | | | | (112) | | | | | | 46 | | |
Total comprehensive loss
|
| | | | — | | | | | | — | | | | | | 158 | | | | | | (5,413) | | | | | | (5,255) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of
stock options |
| | | | 4 | | | | | | 93 | | | | | | — | | | | | | — | | | | | | 97 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,294 | | | | | | 1,294 | | |
Balance as of December 31, 2017
|
| | | $ | 683 | | | | | $ | 105,585 | | | | | $ | 113 | | | | | $ | (105,004) | | | | | $ | 1,377 | | |
For the year ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | $ | 683 | | | | | $ | 105,585 | | | | | $ | 113 | | | | | $ | (105,004) | | | | | $ | 1,377 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,729) | | | | | | (1,729) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | (113) | | | | | | 166 | | | | | | 53 | | |
Total comprehensive loss
|
| | | | — | | | | | | — | | | | | | (113) | | | | | | (1,563) | | | | | | (1,676) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of
stock options |
| | | | 3 | | | | | | 77 | | | | | | — | | | | | | — | | | | | | 80 | | |
Issuance of shares, net of issuance costs
|
| | | | 62 | | | | | | 5,739 | | | | | | — | | | | | | — | | | | | | 5,801 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,021 | | | | | | 1,021 | | |
Capital reserve from transactions with shareholders
|
| | | | — | | | | | | 85 | | | | | | — | | | | | | — | | | | | | 85 | | |
Balance as of December 31, 2018
|
| | | $ | 748 | | | | | $ | 111,486 | | | | | $ | — | | | | | $ | (105,546) | | | | | $ | 6,688 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Adjustments for: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 481 | | | | | | 509 | | | | | | 434 | | |
Share-based payment
|
| | | | 1,021 | | | | | | 1,294 | | | | | | 1,776 | | |
Capital gain from sale of property and equipment
|
| | | | — | | | | | | (8) | | | | | | — | | |
Change in provision for doubtful and bad debt
|
| | | | 104 | | | | | | 147 | | | | | | 849 | | |
Net financial cost
|
| | | | 914 | | | | | | 3,133 | | | | | | 4,110 | | |
Loss (gain) from reevaluation of derivatives
|
| | | | (2,433) | | | | | | (3,925) | | | | | | 216 | | |
Increase in trade receivables
|
| | | | (1,061) | | | | | | (833) | | | | | | (1,548) | | |
Decrease (increase) in other accounts receivable
|
| | | | (330) | | | | | | 169 | | | | | | (157) | | |
Increase in inventories
|
| | | | (340) | | | | | | (711) | | | | | | (430) | | |
Increase (decrease) in trade payables
|
| | | | 237 | | | | | | (66) | | | | | | 289 | | |
Increase in other accounts payable and accrued expenses
|
| | | | 61 | | | | | | 669 | | | | | | 188 | | |
Increase (decrease) in employee benefits
|
| | | | 14 | | | | | | 67 | | | | | | (111) | | |
Increase (decrease) in provisions
|
| | | | 32 | | | | | | 16 | | | | | | (71) | | |
Income tax expenses
|
| | | | 124 | | | | | | 85 | | | | | | 131 | | |
Taxes paid during the year
|
| | | | (176) | | | | | | (83) | | | | | | (228) | | |
Net interest paid during the year
|
| | | | (802) | | | | | | (1,344) | | | | | | (1,675) | | |
Net cash used in operating activities
|
| | | | (3,883) | | | | | | (6,182) | | | | | | (10,630) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Sale of marketable securities
|
| | | | 3,109 | | | | | | — | | | | | | — | | |
Purchase of property and equipment, intangible assets and capitalization of
development expenditure |
| | | | (310) | | | | | | (296) | | | | | | (455) | | |
Investment in restricted long-term deposits
|
| | | | — | | | | | | (22) | | | | | | (113) | | |
Net cash provided by (used in) investing activities
|
| | | | 2,799 | | | | | | (318) | | | | | | (568) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of shares and warrants, net of issuance costs
|
| | | | 5,209 | | | | | | — | | | | | | 998 | | |
Short-term bank credit
|
| | | | 5,000 | | | | | | — | | | | | | — | | |
Repayment of convertible notes
|
| | | | (9,939) | | | | | | (10,421) | | | | | | — | | |
Issuance of warrants
|
| | | | — | | | | | | — | | | | | | 85 | | |
Repayment of shareholders’ loans
|
| | | | (435) | | | | | | — | | | | | | — | | |
Issuance of shares due to the exercise of stock options
|
| | | | 80 | | | | | | 97 | | | | | | 17 | | |
Net cash provided by (used in) financing activities
|
| | | | (85) | | | | | | (10,324) | | | | | | 1,100 | | |
Decrease in cash and cash equivalents
|
| | | | (1,169) | | | | | | (16,824) | | | | | | (10,098) | | |
Cash and cash equivalents at beginning of year
|
| | | | 7,643 | | | | | | 23,358 | | | | | | 33,019 | | |
Effect of exchange rate fluctuations on balances of cash and cash equivalents
|
| | | | (3) | | | | | | 1,109 | | | | | | 437 | | |
Cash and cash equivalents at end of year
|
| | | $ | 6,471 | | | | | $ | 7,643 | | | | | $ | 23,358 | | |
Non-cash financing activity – conversion of notes to a loan from related parties and to shares
|
| | | $ | 1,076 | | | | | $ | — | | | | | $ | — | | |
| | |
%
|
| |||
Office furniture and equipment
|
| | | | 10 | | |
Equipment and devices for leasing and for internal use
|
| | | | 15 | | |
Computers
|
| | | | 33 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Trade receivables: | | | | | | | | | | | | | |
Open accounts
|
| | | $ | 7,040 | | | | | $ | 6,048 | | |
Checks receivable
|
| | | | 22 | | | | | | 327 | | |
| | | | | 7,062 | | | | | | 6,375 | | |
Less – allowance for doubtful accounts
|
| | | | 270 | | | | | | 540 | | |
| | | | | 6,792 | | | | | | 5,835 | | |
Is presented in the statements of financial position as follows: | | | | | | | | | | | | | |
Under current assets
|
| | | | 6,549 | | | | | | 5,362 | | |
Under non-current assets
|
| | | | 243 | | | | | | 473 | | |
| | | | $ | 6,792 | | | | | $ | 5,835 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Other receivables: | | | | | | | | | | | | | |
Institutions
|
| | | $ | 181 | | | | | $ | 330 | | |
Advances to suppliers
|
| | | | 187 | | | | | | 51 | | |
Employees
|
| | | | 91 | | | | | | 121 | | |
Prepaid expenses
|
| | | | 556 | | | | | | 170 | | |
Miscellaneous
|
| | | | 3 | | | | | | 13 | | |
| | | | $ | 1,018 | | | | | $ | 685 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Raw materials and auxiliary materials
|
| | | $ | 1,158 | | | | | $ | 969 | | |
Work in process
|
| | | | 277 | | | | | | 214 | | |
Finished products
|
| | | | 800 | | | | | | 1,077 | | |
| | | | $ | 2,235 | | | | | $ | 2,260 | | |
| | |
Computers
and equipment |
| |
Equipment
and devices for leasing and for internal use |
| |
Office
furniture and equipment |
| |
Leasehold
improvements |
| |
Total
|
| |||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||
Cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | $ | 1,947 | | | | | $ | 1,093 | | | | | $ | 467 | | | | | $ | 317 | | | | | $ | 3,824 | | |
Additions
|
| | | | 62 | | | | | | 434 | | | | | | 9 | | | | | | 9 | | | | | | 514 | | |
Balance as of December 31, 2018
|
| | | | 2,009 | | | | | | 1,527 | | | | | | 476 | | | | | | 326 | | | | | | 4,338 | | |
Accumulated depreciation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | | 1,632 | | | | | | 649 | | | | | | 319 | | | | | | 202 | | | | | | 2,802 | | |
Depreciation
|
| | | | 63 | | | | | | 205 | | | | | | 26 | | | | | | 29 | | | | | | 323 | | |
Balance as of December 31, 2018
|
| | | | 1,695 | | | | | | 854 | | | | | | 345 | | | | | | 231 | | | | | | 3,125 | | |
Depreciated balance as of December 31, 2018
|
| | | $ | 314 | | | | | $ | 673 | | | | | $ | 131 | | | | | $ | 95 | | | | | $ | 1,213 | | |
Cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2017
|
| | | $ | 1,883 | | | | | $ | 750 | | | | | $ | 459 | | | | | $ | 317 | | | | | $ | 3,409 | | |
Additions
|
| | | | 64 | | | | | | 349 | | | | | | 21 | | | | | | 4 | | | | | | 438 | | |
Disposals
|
| | | | — | | | | | | (6) | | | | | | (13) | | | | | | (4) | | | | | | (23) | | |
Balance as of December 31, 2017
|
| | | | 1,947 | | | | | | 1,093 | | | | | | 467 | | | | | | 317 | | | | | | 3,824 | | |
Accumulated depreciation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2017
|
| | | | 1,570 | | | | | | 409 | | | | | | 255 | | | | | | 167 | | | | | | 2,401 | | |
Depreciation
|
| | | | 62 | | | | | | 240 | | | | | | 71 | | | | | | 37 | | | | | | 410 | | |
Disposals
|
| | | | — | | | | | | — | | | | | | (7) | | | | | | (2) | | | | | | (9) | | |
Balance as of December 31, 2017
|
| | | | 1,632 | | | | | | 649 | | | | | | 319 | | | | | | 202 | | | | | | 2,802 | | |
Depreciated balance as of December 31, 2017
|
| | | $ | 315 | | | | | $ | 444 | | | | | $ | 148 | | | | | $ | 115 | | | | | $ | 1,022 | | |
| | |
Computer
software |
| |
Capitalized
development cost |
| |
Marketing
rights for a medical product |
| |
Total
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
Cost: | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | $ | 746 | | | | | $ | 716 | | | | | $ | 375 | | | | | $ | 1,837 | | |
Additions
|
| | | | 23 | | | | | | 90 | | | | | | — | | | | | | 113 | | |
Balance as of December 31, 2018
|
| | | | 769 | | | | | | 806 | | | | | | 375 | | | | | | 1,950 | | |
Accumulated amortization: | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | | 678 | | | | | | 507 | | | | | | 375 | | | | | | 1,560 | | |
Amortization for the year
|
| | | | 38 | | | | | | 54 | | | | | | — | | | | | | 92 | | |
Balance as of December 31, 2018
|
| | | | 716 | | | | | | 561 | | | | | | 375 | | | | | | 1,652 | | |
Amortized balance as of December 31, 2018
|
| | | $ | 53 | | | | | $ | 245 | | | | | $ | — | | | | | $ | 298 | | |
Cost: | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2017
|
| | | $ | 704 | | | | | $ | 606 | | | | | $ | 375 | | | | | $ | 1,685 | | |
Additions
|
| | | | 42 | | | | | | 110 | | | | | | — | | | | | | 152 | | |
Balance as of December 31, 2017
|
| | | | 746 | | | | | | 716 | | | | | | 375 | | | | | | 1,837 | | |
Accumulated amortization: | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2017
|
| | | | 602 | | | | | | 471 | | | | | | 355 | | | | | | 1,428 | | |
Amortization for the year
|
| | | | 76 | | | | | | 36 | | | | | | 20 | | | | | | 132 | | |
Balance as of December 31, 2017
|
| | | | 678 | | | | | | 507 | | | | | | 375 | | | | | | 1,560 | | |
Amortized balance as of December 31, 2017
|
| | | $ | 68 | | | | | $ | 209 | | | | | $ | — | | | | | $ | 277 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Presented as part of current liabilities – accounts payable: | | | | | | | | | | | | | |
Short-term employee benefits
|
| | | $ | 222 | | | | | $ | 223 | | |
Presented as part of non-current liabilities: | | | | | | | | | | | | | |
Long-term employee benefits
|
| | | $ | 159 | | | | | $ | 310 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Balance at beginning of year
|
| | | $ | 310 | | | | | $ | 156 | | |
Expense recognized in the statements of operations: | | | | | | | | | | | | | |
Current service costs and interest costs
|
| | | | 29 | | | | | | 61 | | |
Recognized loss including other: | | | | | | | | | | | | | |
Actuarial losses carried to other comprehensive income
|
| | | | (166) | | | | | | 112 | | |
Other movements: | | | | | | | | | | | | | |
Benefits paid
|
| | | | (5) | | | | | | — | | |
Deposits made by the Group
|
| | | | (9) | | | | | | (19) | | |
Balance at end of year
|
| | | $ | 159 | | | | | $ | 310 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Current service costs
|
| | | $ | 16 | | | | | $ | 21 | | |
Interest costs
|
| | | | 7 | | | | | | 6 | | |
Transfer of profits to benefits
|
| | | | 28 | | | | | | 18 | | |
Total
|
| | | $ | 51 | | | | | $ | 45 | | |
| | |
December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
%
|
| |
%
|
| |
%
|
| |||||||||
Discount rate at the end of the year
|
| | | | 3.82 | | | | | | 2.74 | | | | | | 3.35 | | |
Future salary growth
|
| | | | 3.00 | | | | | | 3.27 | | | | | | 3.32 | | |
| | |
Warranties
|
| |
Returns
|
| |
Total
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Balance as of January 1, 2017
|
| | | $ | 93 | | | | | $ | 74 | | | | | $ | 167 | | |
Provisions made during the year
|
| | | | 135 | | | | | | 91 | | | | | | 226 | | |
Provisions reversed during the year
|
| | | | (27) | | | | | | — | | | | | | (27) | | |
Provisions realized during the year
|
| | | | (101) | | | | | | (82) | | | | | | (183) | | |
Balance as of December 31, 2017
|
| | | | 100 | | | | | | 83 | | | | | | 183 | | |
Provisions made during the year
|
| | | | 86 | | | | | | 81 | | | | | | 167 | | |
Provisions reversed during the year
|
| | | | (5) | | | | | | — | | | | | | (5) | | |
Provisions realized during the year
|
| | | | (62) | | | | | | (68) | | | | | | (130) | | |
Balance as of December 31, 2018
|
| | | $ | 119 | | | | | $ | 96 | | | | | $ | 215 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Employees
|
| | | $ | 1,403 | | | | | $ | 1,117 | | |
Institutions
|
| | | | 319 | | | | | | 339 | | |
Interest payable
|
| | | | 11 | | | | | | 326 | | |
Deferred revenues and advances from customers
|
| | | | 255 | | | | | | 193 | | |
Other
|
| | | | 75 | | | | | | 23 | | |
| | | | $ | 2,063 | | | | | $ | 1,998 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Liabilities | | | | | | | | | | | | | |
The conversion component in the convertible notes
|
| | | $ | — | | | | | $ | 96 | | |
Viola Warrants (non-traded)*
|
| | | | 371 | | | | | | 2,315 | | |
Warrants (Series 4) (traded) issued in the 2015 rights offering*
|
| | | | 71 | | | | | | 464 | | |
| | | | $ | 442 | | | | | $ | 2,875 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Discount rate for notes which were fully repaid on February 28, 2018 (yield to maturity of the notes)
|
| | | | — | | | | | | 104.18% | | |
The discount rate of the Viola Warrants and Warrants (Series 4) (risk free interest)
|
| | | | 0.30% | | | | | | 0.11% | | |
Share price (in NIS)
|
| | | | 1.280 | | | | | | 1.340 | | |
Standard deviation of the share price
|
| | | | 54.59% | | | | | | 56.13% | | |
Year Ending December 31,
|
| |
U.S. dollars
in thousands |
| |||
2019
|
| | | $ | 847 | | |
2020
|
| | | | 720 | | |
2021
|
| | | | 452 | | |
2022
|
| | | | 54 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
Number of shares in thousands
|
| |||||||||||||||
Issued and outstanding share capital (ordinary shares): | | | | | | | | | | | | | | | | | | | |
Outstanding shares at the beginning of the year
|
| | | | 264,495 | | | | | | 262,917 | | | | | | 259,581 | | |
Shares issued in private placements during the year
|
| | | | 22,014 | | | | | | — | | | | | | 2,976 | | |
Shares issued in exercise of stock options during the year
|
| | | | 1,107 | | | | | | 1,578 | | | | | | 360 | | |
Outstanding at the end of the year
|
| | | | 287,616 | | | | | | 264,495 | | | | | | 262,917 | | |
Authorized
|
| | | | 750,000 | | | | | | 750,000 | | | | | | 750,000 | | |
| | |
Options with
service conditions only |
| |
Options with
service conditions and market conditions |
| |
RSUs
|
|
The number of shares arising from the exercise of the options (in thousands)
|
| |
1,313
|
| |
1,283
|
| |
296
|
|
The parameters included when calculating fair value:
|
| | | | | | | | | |
The share price (at the grant date) (in NIS)
|
| |
1.10 – 1.25
|
| |
1.10 – 1.25
|
| |
1.10 – 1.25
|
|
The exercise price (in NIS)
|
| |
1.12 – 1.29
|
| |
1.02 – 1.17
|
| |
0.00 – 0.30
|
|
Expected volatility (weighted average)
|
| |
55% – 58%
|
| |
55% – 56%
|
| |
55% – 56%
|
|
Expected lifetime (weighted average)
|
| |
3.5 – 4.0 years
|
| |
4.7 – 5.7 years
|
| |
N/A
|
|
Risk-free interest rate
|
| |
0.91% – 1.13%
|
| |
1.27% – 1.46%
|
| |
N/A
|
|
Expected dividend rate
|
| |
0%
|
| |
0%
|
| |
0%
|
|
| | |
Service
options |
| |
Performance
options |
|
Expected volatility
|
| |
57.6%
|
| |
57.6%
|
|
Average lifetime (in years)
|
| |
4.8 – 5.9
|
| |
8.8
|
|
Risk free interest rate
|
| |
0.91% – 1.36%
|
| |
2.0%
|
|
Expected dividends rate
|
| |
0%
|
| |
0%
|
|
| | |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||||||||
| | |
Number of
awards |
| |
Range of
exercise price (NIS) |
| |
Number of
Awards |
| |
Range of
exercise price (NIS) |
| |
Number of
awards |
| |
Range of
exercise price (NIS) |
| |||||||||||||||
Outstanding at beginning of year
|
| | | | 35,892,484 | | | |
0.00 – 2.50
|
| | | | 40,178,148 | | | | | | 0.00 – 2.50 | | | | | | 24,316,648 | | | | | | 0.10 – 2.50 | | |
Granted during the year
|
| | | | 3,312,056 | | | |
0.00 – 1.29
|
| | | | 4,105,076 | | | | | | 0.00 – 1.68 | | | | | | 28,180,067 | | | | | | 0.00 – 1.55 | | |
Forfeited and expired during the year
|
| | | | (2,305,527) | | | |
—
|
| | | | (6,825,690) | | | | | | — | | | | | | (11,962,761) | | | | | | — | | |
Exercised during the year
|
| | | | (1,096,800) | | | |
023 – 0.51
|
| | | | (1,565,050) | | | | | | 0.23 | | | | | | (355,806) | | | | | | 0.10 – 0.48 | | |
Outstanding at end of year
|
| | | | *35,802,213 | | | |
0.00 – 2.50
|
| | | | 35,892,484 | | | | | | 0.00 – 2.50 | | | | | | 40,178,148 | | | | | | 0.00 – 2.50 | | |
Exercisable at end of year
|
| | | | 10,114,392 | | | |
0.23 – 2.50
|
| | | | 9,716,559 | | | | | | 0.23 – 2.50 | | | | | | 12,319,881 | | | | | | 0.23 – 2.50 | | |
* Including: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options with service conditions
only |
| | | | 15,661,344 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options with service conditions and market conditions
|
| | | | 16,699,449 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RSUs
|
| | | | 3,441,420 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total
|
| | | | 35,802,213 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Cost of revenues
|
| | | $ | 10 | | | | | $ | 9 | | | | | $ | 30 | | |
Selling and marketing expenses
|
| | | | 295 | | | | | | 336 | | | | | | 429 | | |
Research and development expenses
|
| | | | 104 | | | | | | 87 | | | | | | 257 | | |
General and administrative expense
|
| | | | 612 | | | | | | 740 | | | | | | 1,060 | | |
Financial expenses from notes and loans
|
| | | | — | | | | | | 122 | | | | | | — | | |
| | | | $ | 1,021 | | | | | $ | 1,294 | | | | | $ | 1,776 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
WatchPAT and other related services
|
| | | $ | 22,384 | | | | | $ | 18,105 | | | | | $ | 15,697 | | |
EndoPAT and other related services
|
| | | | 1,805 | | | | | | 2,596 | | | | | | 2,743 | | |
| | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
United States and Canada
|
| | | $ | 17,582 | | | | | $ | 14,764 | | | | | $ | 13,343 | | |
Japan
|
| | | | 3,374 | | | | | | 2,965 | | | | | | 2,161 | | |
Europe
|
| | | | 1,885 | | | | | | 1,746 | | | | | | 1,542 | | |
Asia Pacific (excluding Japan)
|
| | | | 849 | | | | | | 759 | | | | | | 1,017 | | |
Israel
|
| | | | 281 | | | | | | 260 | | | | | | 268 | | |
Others
|
| | | | 218 | | | | | | 207 | | | | | | 109 | | |
| | | | $ | 24,189 | | | | | $ | 20,701 | | | | | $ | 18,440 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Customer A
|
| | | $ | 4,571 | | | | | $ | 3,622 | | | | | $ | 3,549 | | |
Customer B
|
| | | | 3,229 | | | | | | 2,621 | | | | | | 2,119 | | |
Customer C
|
| | | | 2,870 | | | | | | 2,510 | | | | | | 2,096 | | |
| | | | $ | 10,670 | | | | | $ | 8,753 | | | | | $ | 7,764 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Raw materials, auxiliary materials, subcontractors (including changes in inventories)
|
| | | $ | 2,538 | | | | | $ | 1,767 | | | | | $ | 2,173 | | |
Payroll and related expenses (including share-based payment)
|
| | | | 1,806 | | | | | | 1,956 | | | | | | 1,749 | | |
Shipping
|
| | | | 443 | | | | | | 500 | | | | | | 386 | | |
Depreciation and amortization
|
| | | | 255 | | | | | | 190 | | | | | | 124 | | |
Other
|
| | | | 684 | | | | | | 589 | | | | | | 547 | | |
| | | | $ | 5,726 | | | | | $ | 5,002 | | | | | $ | 4,979 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Financial income from cash and investments: | | | | | | | | | | | | | | | | | | | |
In respect of investments in bank deposits and marketable securities*
|
| | | $ | 93 | | | | | $ | 1,389 | | | | | $ | 547 | | |
Other financial income
|
| | | | 151 | | | | | | 202 | | | | | | 169 | | |
| | | | $ | 244 | | | | | $ | 1,591 | | | | | $ | 716 | | |
Financial expenses from notes, loans and other: | | | | | | | | | | | | | | | | | | | |
Convertible notes*
|
| | | $ | 393 | | | | | $ | 4,427 | | | | | $ | 4,610 | | |
Short-term bank loan
|
| | | | 316 | | | | | | — | | | | | | — | | |
Short-term shareholders’ loans
|
| | | | 85 | | | | | | — | | | | | | — | | |
Other financial expenses
|
| | | | 359 | | | | | | 427 | | | | | | 185 | | |
Exchange rate differences
|
| | | | 8 | | | | | | 30 | | | | | | (35) | | |
| | | | $ | 1,161 | | | | | $ | 4,884 | | | | | $ | 4,760 | | |
Gain (loss) on derivative financial instruments: | | | | | | | | | | | | | | | | | | | |
Gain on revaluation to fair value of the warrants embedded in the convertible notes
|
| | | $ | 96 | | | | | | 2,141 | | | | | | 1,567 | | |
Gain (loss) on revaluation to fair value of warrants
|
| | | | 2,337 | | | | | | 1,784 | | | | | | (1,783) | | |
| | | | $ | 2,433 | | | | | $ | 3,925 | | | | | $ | (216) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Net loss attributed to the ordinary shares
|
| | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
Number of shares in thousands
|
| |||||||||||||||
Balance at the beginning of the year
|
| | | | 264,495 | | | | | | 262,917 | | | | | | 259,581 | | |
The effect of private placement and rights offering
|
| | | | 12,908 | | | | | | — | | | | | | 2,716 | | |
The effect of exercise of options into shares
|
| | | | 262 | | | | | | 1,192 | | | | | | 245 | | |
Weighted average number of ordinary shares used in computation of
basic loss per share |
| | | | 277,665 | | | | | | 264,109 | | | | | | 262,542 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Net loss used in computation of basic earnings per share
|
| | | $ | (1,729) | | | | | $ | (5,301) | | | | | $ | (14,403) | | |
Changes in the fair value of the Viola warrants and Warrants (Series 4), which are classified as a liability
|
| | | | (2,434) | | | | | | (1,785) | | | | |
|
—
|
| |
Net loss attributed to the ordinary shares (diluted)
|
| | | $ | (4,163) | | | | | $ | (7,086) | | | | | $ | (14,403) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
| | |
Number of shares in thousands
|
| |||||||||||||||
Weighted average number of ordinary shares used in computation of
basic loss per share |
| | | | 277,665 | | | | | | 264,109 | | | | | | 262,542 | | |
Effect of the exercise of the Viola warrants and Warrants (Series 4)
|
| | | | 43,246 | | | | | | 39,877 | | | | | | — | | |
Weighted average number of ordinary shares used in computation of
diluted loss per share per share |
| | | | 320,911 | | | | | | 303,986 | | | | | | 262,542 | | |
| | | | ||||
Government bonds – NIS linked to the Israeli CPI
|
| | | $ | 368 | | |
Government bonds – NIS
|
| | | | 838 | | |
Corporate bonds – NIS linked to the Israeli CPI
|
| | | | 1,008 | | |
Corporate bonds – NIS
|
| | | | 777 | | |
Current account
|
| | | | 182 | | |
| | | | $ | 3,173 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Israel
|
| | | $ | 5,378 | | | | | $ | 9,581 | | |
United States and Canada
|
| | | | 6,337 | | | | | | 5,815 | | |
Asia Pacific (including Japan)
|
| | | | 936 | | | | | | 817 | | |
Europe
|
| | | | 998 | | | | | | 909 | | |
Other
|
| | | | 194 | | | | | | 27 | | |
| | | | $ | 13,843 | | | | | $ | 17,149 | | |
|
| | |
Weighted
average loss rate |
| |
December 31, 2018
|
| |
December 31, 2017
|
| |||||||||||||||||||||
| | |
Gross
amount |
| |
Impairment
|
| |
Gross
amount |
| |
Impairment
|
| ||||||||||||||||||
| | |
%
|
| |
U.S. dollars in thousands
|
| |
U.S. dollars in thousands
|
| |||||||||||||||||||||
Not in arrears
|
| | | | 1.2 | | | | | $ | 5,464 | | | | | $ | 64 | | | | | $ | 4,502 | | | | | $ | — | | |
In arrears up to three months
|
| | | | 1.2 | | | | | | 1,030 | | | | | | 12 | | | | | | 1,160 | | | | | | — | | |
In arrears up to six months
|
| | | | 1.2 | | | | | | 221 | | | | | | 3 | | | | | | 200 | | | | | | 35 | | |
In arrears up to 12 months
|
| | | | 17.5 | | | | | | 188 | | | | | | 32 | | | | | | 71 | | | | | | 63 | | |
In arrears over 12 months
|
| | | | 100.0 | | | | | | 159 | | | | | | 159 | | | | | | 442 | | | | | | 442 | | |
| | | | | | | | | | $ | 7,062 | | | | | $ | 270 | | | | | $ | 6,375 | | | | | $ | 540 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Balance at beginning of year
|
| | | $ | 540 | | | | | $ | 450 | | |
Recognized impairment loss
|
| | | | 104 | | | | | | 147 | | |
Bad debt
|
| | | | (374) | | | | | | (57) | | |
Balance at end of year
|
| | | $ | 270 | | | | | $ | 540 | | |
| | |
Carrying
Amount |
| |
Contractual
Cash flow |
| |
Up to 6
months |
| |
6 – 12 months
|
| |
1 – 2 years
|
| |
2 – 5 years
|
| |
Over 5
years |
| |||||||||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-derivative financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term bank loans
|
| | | $ | 5,000 | | | | | $ | 5,065 | | | | | $ | 5,065 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Trade payables
|
| | | | 1,517 | | | | | | 1,517 | | | | | | 1,517 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other long-term liabilities
|
| | | | 1,052 | | | | | | 1,052 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,052 | | |
Other accounts payable
|
| | | | 2,767 | | | | | | 2,767 | | | | | | 2,668 | | | | | | 99 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 10,336 | | | | | $ | 10,401 | | | | | $ | 9,250 | | | | | $ | 99 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,052 | | |
|
| | |
Carrying
Amount |
| |
Contractual
Cash flow |
| |
Up to 6
months |
| |
6 – 12 months
|
| |
1 – 2 years
|
| |
2 – 5 years
|
| |
Over 5
years |
| |||||||||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-derivative financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible notes, including current maturities and accrued interest
|
| | | $ | 11,022 | | | | | $ | 11,473 | | | | | $ | 11,473 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Trade payables
|
| | | | 1,262 | | | | | | 1,262 | | | | | | 1,262 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other long-term liabilities
|
| | | | 948 | | | | | | 948 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 948 | | |
Other accounts payable
|
| | | | 2,714 | | | | | | 2,714 | | | | | | 2,536 | | | | | | 178 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 15,946 | | | | | $ | 16,397 | | | | | $ | 15,271 | | | | | $ | 178 | | | | | $ | — | | | | | $ | — | | | | | $ | 948 | | |
|
| | | | | | | | |
Currency different from dollar
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | |
Dollars
|
| |
NIS
|
| |
NIS linked
to the Israeli CPI |
| |
Euro
|
| |
Other
currencies |
| |
Non-
monetary items |
| |
Total
|
| |||||||||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 4,088 | | | | | $ | 1,885 | | | | | $ | — | | | | | $ | 426 | | | | | $ | 72 | | | | | $ | — | | | | | $ | 6,471 | | |
Trade receivables (including long-term trade receivables)
|
| | | | 6,236 | | | | | | 229 | | | | | | — | | | | | | 327 | | | | | | — | | | | | | — | | | | | | 6,792 | | |
Accounts receivable
|
| | | | 247 | | | | | | 32 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 737 | | | | | | 1,018 | | |
Inventories
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,235 | | | | | | 2,235 | | |
Long-term restricted deposits
|
| | | | 109 | | | | | | 190 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 299 | | |
Long-term prepaid expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 66 | | | | | | 66 | | |
Property and equipment and intangible assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,511 | | | | | | 1,511 | | |
| | | | | 10,680 | | | | | | 2,336 | | | | | | — | | | | | | 755 | | | | | | 72 | | | | | | 4,549 | | | | | | 18,392 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | 714 | | | | | | 798 | | | | | | — | | | | | | 5 | | | | | | — | | | | | | — | | | | | | 1,517 | | |
Employee benefits
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 381 | | | | | | 381 | | |
Provisions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 215 | | | | | | 215 | | |
Other accounts payable (including accrued expenses)
|
| | | | 1,965 | | | | | | 761 | | | | | | — | | | | | | 50 | | | | | | — | | | | | | 321 | | | | | | 3,097 | | |
Sort-term bank loan
|
| | | | 5,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,000 | | |
Financial derivatives
|
| | | | — | | | | | | 442 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 442 | | |
Other long-term accounts payable
|
| | | | 947 | | | | | | 105 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,052 | | |
| | | | | 8,626 | | | | | | 2,106 | | | | | | — | | | | | | 55 | | | | | | — | | | | | | 917 | | | | | | 11,704 | | |
Total exposure in the statements of financial position in respect of financial assets and financial liabilities
|
| | | $ | 2,054 | | | | | $ | 230 | | | | | $ | — | | | | | $ | 700 | | | | | $ | 72 | | | | | $ | 3,632 | | | | | $ | 6,688 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,337 | | | | | $ | 5,124 | | | | | $ | — | | | | | $ | 160 | | | | | $ | 22 | | | | | $ | — | | | | | $ | 7,643 | | |
Marketable securities
|
| | | | — | | | | | | 1,797 | | | | | | 1,376 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,173 | | |
Trade receivables (including long-term trade receivables)
|
| | | | 4,952 | | | | | | 194 | | | | | | — | | | | | | 689 | | | | | | — | | | | | | — | | | | | | 5,835 | | |
Accounts receivable
|
| | | | 137 | | | | | | 45 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 500 | | | | | | 685 | | |
Inventories
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,260 | | | | | | 2,260 | | |
Long-term restricted deposits
|
| | | | 108 | | | | | | 205 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 313 | | |
Long-term prepaid expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 69 | | | | | | 69 | | |
Property and equipment and intangible assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,299 | | | | | | 1,299 | | |
| | | | | 7,534 | | | | | | 7,365 | | | | | | 1,376 | | | | | | 852 | | | | | | 22 | | | | | | 4,128 | | | | | | 21,277 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | 382 | | | | | | 833 | | | | | | — | | | | | | 47 | | | | | | — | | | | | | — | | | | | | 1262 | | |
Employee benefits
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 533 | | | | | | 533 | | |
Provisions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 183 | | | | | | 183 | | |
Other accounts payable (including accrued expenses)
|
| | | | 1,877 | | | | | | 1,117 | | | | | | — | | | | | | 70 | | | | | | — | | | | | | 339 | | | | | | 3,403 | | |
Convertible notes
|
| | | | — | | | | | | 10,696 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,696 | | |
Financial derivatives
|
| | | | — | | | | | | 2,875 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,875 | | |
Other long-term accounts payable
|
| | | | 905 | | | | | | — | | | | | | 43 | | | | | | — | | | | | | — | | | | | | — | | | | | | 948 | | |
| | | | | 3,164 | | | | | | 15,521 | | | | | | 43 | | | | | | 117 | | | | | | — | | | | | | 1,055 | | | | | | 19,900 | | |
Total exposure in the statements of financial position in respect of financial assets and financial liabilities
|
| | | $ | 4,370 | | | | | $ | (8,156) | | | | | $ | 1,333 | | | | | $ | 735 | | | | | $ | 22 | | | | | $ | 3,073 | | | | | $ | 1,377 | | |
|
| | |
December 31, 2018
|
| |||||||||
| | |
Equity
|
| |
Profit (loss)
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
An increase in the exchange rate of the following currencies against the dollar: | | | | | | | | | | | | | |
NIS/dollar by 5%
|
| | | $ | 12 | | | | | $ | 12 | | |
Euro/dollar by 5%
|
| | | | 35 | | | | | | 35 | | |
| | |
December 31, 2017
|
| |||||||||
| | |
Equity
|
| |
Profit (loss)
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
An increase in the exchange rate of the following currencies against the dollar: | | | | | | | | | | | | | |
NIS/dollar by 5%
|
| | | $ | (340) | | | | | $ | (340) | | |
Euro/dollar by 5%
|
| | | | 37 | | | | | | 37 | | |
| | |
December 31, 2018
|
| |
December 31, 2017
|
| ||||||||||||||||||
| | |
Carrying
amount |
| |
Fair value
|
| |
Carrying
amount |
| |
Fair value
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible notes
|
| | | $ | — | | | | | $ | — | | | | | $ | **11,118 | | | | | $ | *11,283 | | |
Liability in respect of royalties to the IIA and other government institutions
|
| | | | 1,151 | | | | | | 490 | | | | | | 1,072 | | | | | | 430 | | |
| | | | $ | 1,151 | | | | | $ | 490 | | | | | $ | 12,190 | | | | | $ | 11,713 | | |
| | |
December 31, 2018
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 3
|
| |
Total
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Financial instruments – derivative instruments
|
| | | $ | — | | | | | $ | 442 | | | | | $ | 442 | | |
| | |
December 31, 2017
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 3
|
| |
Total
|
| |||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||
Financial instruments – marketable securities
|
| | | $ | 3,173 | | | | | $ | — | | | | | $ | 3,173 | | |
Financial instruments – derivative instruments
|
| | | | — | | | | | | 2,875 | | | | | | 2,875 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
| | |
Number
of persons |
| |
Amount
|
| |
Number
of persons |
| |
Amount
|
| |
Number
of persons |
| |
Amount
|
| ||||||||||||||||||
| | | | | | | | |
U.S. dollars in
thousands |
| | | | | | | |
U.S. dollars in
thousands |
| | | | | | | |
U.S. dollars in
thousands |
| |||||||||
Employee compensation
|
| | | | 7 | | | | | $ | 1,835 | | | | | | 7 | | | | | $ | 1,384 | | | | | | 6 | | | | | $ | 1,590 | | |
Share-based payment
|
| | | | 7 | | | | | | 702 | | | | | | 7 | | | | | | 1,083 | | | | | | 6 | | | | | | 1,168 | | |
| | | | | | | | | | $ | 2,537 | | | | | | | | | | | $ | 2,467 | | | | | | | | | | | $ | 2,758 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
| | |
Number
of persons |
| |
Amount
|
| |
Number
of persons |
| |
Amount
|
| |
Number
of persons |
| |
Amount
|
| ||||||||||||||||||
| | | | | | | | |
U.S. dollars in
thousands |
| | | | | | | |
U.S. dollars in
thousands |
| | | | | | | |
U.S. dollars in
thousands |
| |||||||||
Total benefits to directors not
employed by the Company |
| | | | 8 | | | | | $ | 284 | | | | | | 9 | | | | | $ | 306 | | | | | | 9 | | | | | $ | 278 | | |
|
| | |
Year Ended December 31,
|
| |
December 31,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
Transaction amounts
|
| |
Carrying amount
|
| ||||||||||||||||||||||||
| | |
U.S. dollars in thousands
|
| |
U.S. dollars in thousands
|
| ||||||||||||||||||||||||
Key executives (including directors) of the Company
|
| | | $ | 2,821 | | | | | $ | 2,773 | | | | | $ | 3,035 | | | | | $ | 341 | | | | | $ | 1,147 | | |
| | |
September 30,
2019 |
| |
December 31,
2018* |
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 8,426 | | | | | $ | 6,471 | | |
Short-term bank deposits
|
| | | | 9,000 | | | | | | — | | |
Trade receivables
|
| | | | 6,157 | | | | | | 6,549 | | |
Other receivables
|
| | | | 1,246 | | | | | | 1,018 | | |
Inventories | | | | | 3,045 | | | | | | 2,235 | | |
Total current assets
|
| | | | 27,874 | | | | | | 16,273 | | |
Non-current assets | | | | | | | | | | | | | |
Long-term restricted deposits and prepaid expenses
|
| | | | 470 | | | | | | 365 | | |
Long-term trade receivables
|
| | | | 114 | | | | | | 243 | | |
Property and equipment
|
| | | | 1,408 | | | | | | 1,213 | | |
Right-of-use assets
|
| | | | 2,306 | | | | | | — | | |
Intangible assets
|
| | | | 377 | | | | | | 298 | | |
Total non-current assets
|
| | | | 4,675 | | | | | | 2,119 | | |
Total assets
|
| | | $ | 32,549 | | | | | $ | 18,392 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Trade payables
|
| | | $ | 2,215 | | | | | $ | 1,517 | | |
Short-term employee benefits
|
| | | | 316 | | | | | | 222 | | |
Current maturities of lease liabilities
|
| | | | 783 | | | | | | — | | |
Short-term bank loan
|
| | | | 5,000 | | | | | | 5,000 | | |
Provisions
|
| | | | 232 | | | | | | 215 | | |
Accrued expenses
|
| | | | 1,344 | | | | | | 1,034 | | |
Other accounts payable
|
| | | | 2,427 | | | | | | 2,063 | | |
Total current liabilities
|
| | | | 12,317 | | | | | | 10,051 | | |
Non-current liabilities | | | | | | | | | | | | | |
Lease liabilities
|
| | | | 1,649 | | | | | | — | | |
Derivative instruments
|
| | | | — | | | | | | 442 | | |
Long-term employee benefits
|
| | | | 167 | | | | | | 159 | | |
Other long-term liabilities
|
| | | | 1,120 | | | | | | 1,052 | | |
Total non-current liabilities
|
| | | | 2,936 | | | | | | 1,653 | | |
Total liabilities
|
| | | | 15,253 | | | | | | 11,704 | | |
Equity | | | | | | | | | | | | | |
Ordinary share capital
|
| | | | 874 | | | | | | 748 | | |
Additional paid-in capital
|
| | | | 125,351 | | | | | | 111,486 | | |
Accumulated deficit
|
| | | | (108,929) | | | | | | (105,546) | | |
Total equity
|
| | | | 17,296 | | | | | | 6,688 | | |
Total liabilities and equity
|
| | | $ | 32,549 | | | | | $ | 18,392 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2018*
|
| |
2019
|
| |
2018*
|
| ||||||||||||
| | |
U.S. dollars in thousands (except per share data)
|
| |||||||||||||||||||||
Revenues
|
| | | $ | 8,084 | | | | | $ | 6,061 | | | | | $ | 21,493 | | | | | $ | 17,607 | | |
Cost of revenues
|
| | | | 1,840 | | | | | | 1,559 | | | | | | 4,869 | | | | | | 4,239 | | |
Gross profit
|
| | | | 6,244 | | | | | | 4,502 | | | | | | 16,624 | | | | | | 13,368 | | |
Operating expenses: | | | | | | ||||||||||||||||||||
Selling and marketing expenses
|
| | | | 4,717 | | | | | | 3,164 | | | | | | 12,985 | | | | | | 9,242 | | |
Research and development expenses
|
| | | | 1,095 | | | | | | 905 | | | | | | 3,165 | | | | | | 2,761 | | |
General and administrative expenses
|
| | | | 1,411 | | | | | | 1,208 | | | | | | 4,491 | | | | | | 3,932 | | |
Total operating expenses
|
| | | | 7,223 | | | | | | 5,277 | | | | | | 20,641 | | | | | | 15,935 | | |
Operating loss
|
| | | | (979) | | | | | | (775) | | | | | | (4,017) | | | | | | (2,567) | | |
Financial income from cash, bank deposits and investments
|
| | | | 143 | | | | | | 55 | | | | | | 336 | | | | | | 237 | | |
Financial expenses from leases, notes and loans
|
| | | | (299) | | | | | | (200) | | | | | | (895) | | | | | | (961) | | |
Gain (loss) from derivative instruments, net
|
| | | | — | | | | | | (224) | | | | | | 442 | | | | | | 1,886 | | |
Financial income (expenses), net
|
| | | | (156) | | | | | | (369) | | | | | | (117) | | | | | | 1,162 | | |
Loss before taxes on income
|
| | | | (1,135) | | | | | | (1,144) | | | | | | (4,134) | | | | | | (1,405) | | |
Taxes on Income
|
| | | | (12) | | | | | | (59) | | | | | | (135) | | | | | | (110) | | |
Net loss
|
| | | $ | (1,147) | | | | | $ | (1,203) | | | | | $ | (4,269) | | | | | $ | (1,515) | | |
Loss per share (in U.S. dollars): | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | (0.00) | | | | | $ | (0.00) | | | | | $ | (0.01) | | | | | $ | (0.01) | | |
Diluted | | | | $ | (0.00) | | | | | $ | (0.00) | | | | | $ | (0.01) | | | | | $ | (0.01) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2018*
|
| |
2019
|
| |
2018*
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
Net loss
|
| | | $ | (1,147) | | | | | $ | (1,203) | | | | | $ | (4,269) | | | | | $ | (1,515) | | |
Other comprehensive loss items that after initial recognition in
comprehensive loss, were or will be carried to the statement of operations: |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net change in fair value of marketable securities available-for-sale, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | (113) | | |
Total other comprehensive loss items that after initial
recognition in comprehensive loss, were or will be carried to the statement of operations, net of tax |
| | | | — | | | | | | — | | | | | | — | | | | | | (113) | | |
Other total comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (113) | | |
Total comprehensive loss
|
| | | $ | (1,147) | | | | | $ | (1,203) | | | | | $ | (4,269) | | | | | $ | (1,628) | | |
| | |
Ordinary
share capital |
| |
Additional
paid-in capital |
| |
Capital
reserve in respect of securities available- for-sale |
| |
Accumulated
deficit |
| |
Total
|
| |||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||
For the nine months ended September 30, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2019
|
| | | $ | 748 | | | | | $ | 111,486 | | | | | $ | — | | | | | $ | (105,546) | | | | | $ | 6,688 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss – total comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (4,269) | | | | | | (4,269) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of stock options
|
| | | | 1 | | | | | | 24 | | | | | | — | | | | | | — | | | | | | 25 | | |
Issuance of shares in a private offering, net of share issuance costs of $716 thousand
|
| | | | 125 | | | | | | 13,841 | | | | | | — | | | | | | — | | | | | | 13,966 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 886 | | | | | | 886 | | |
Balance as of September 30, 2019
|
| | | $ | 874 | | | | | $ | 125,351 | | | | | $ | — | | | | | $ | (108,929) | | | | | $ | 17,296 | | |
For the nine months ended September 30, 2018
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2018
|
| | | $ | 683 | | | | | $ | 105,585 | | | | | $ | 113 | | | | | $ | (105,004) | | | | | $ | 1,377 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,515) | | | | | | (1,515) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | (113) | | | | | | — | | | | | | (113) | | |
Total comprehensive loss
|
| | | | — | | | | | | — | | | | | | (113) | | | | | | (1,515) | | | | | | (1,628) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of stock options
|
| | | | 1 | | | | | | 24 | | | | | | — | | | | | | — | | | | | | 25 | | |
Issuance of shares in a private offering, net of share issuance costs of $143 thousand
|
| | | | 62 | | | | | | 5,739 | | | | | | — | | | | | | — | | | | | | 5,801 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 766 | | | | | | 766 | | |
Capital reserve from transactions with shareholders
|
| | | | — | | | | | | 85 | | | | | | — | | | | | | — | | | | | | 85 | | |
Balance as of September 30, 2018
|
| | | $ | 746 | | | | | $ | 111,433 | | | | | $ | — | | | | | $ | (105,753) | | | | | $ | 6,426 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2019
|
| |
2018*
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,269) | | | | | $ | (1,515) | | |
Adjustments for: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1,059 | | | | | | 351 | | |
Share-based payment
|
| | | | 886 | | | | | | 766 | | |
Change in provision for doubtful and bad debt
|
| | | | 192 | | | | | | 134 | | |
Net financial cost
|
| | | | 169 | | | | | | 698 | | |
Gain from revaluation of derivatives
|
| | | | (442) | | | | | | (1,886) | | |
Decrease in trade receivables
|
| | | | 329 | | | | | | 151 | | |
Increase in other accounts receivable
|
| | | | (249) | | | | | | (279) | | |
Increase in inventories
|
| | | | (1,153) | | | | | | (272) | | |
Increase (decrease) in trade payables
|
| | | | 724 | | | | | | (231) | | |
Increase (decrease) in other accounts payable and accrued expenses
|
| | | | 584 | | | | | | **(340) | | |
Increase in employee benefits
|
| | | | 102 | | | | | | 80 | | |
Increase in provisions
|
| | | | 17 | | | | | | 10 | | |
Income tax expenses
|
| | | | 135 | | | | | | **110 | | |
Taxes paid during the period
|
| | | | (44) | | | | | | **(85) | | |
Net interest paid during the period
|
| | | | (197) | | | | | | (710) | | |
Net cash used in operating activities
|
| | | | (2,157) | | | | | | (3,018) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Investment in short-term bank deposits
|
| | | | (9,000) | | | | | | — | | |
Increase in restricted long-term deposits
|
| | | | (68) | | | | | | — | | |
Sale of marketable securities
|
| | | | — | | | | | | 3,109 | | |
Purchase of property and equipment, intangible assets and capitalization of development expenses
|
| | | | (406) | | | | | | (153) | | |
Net cash provided by (used in) investing activities
|
| | | | (9,474) | | | | | | 2,956 | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from issuance of shares, net of share issuance costs
|
| | | | 13,966 | | | | | | 5,209 | | |
Short-term bank credit
|
| | | | — | | | | | | 5,000 | | |
Principle element of lease payments
|
| | | | (583) | | | | | | — | | |
Repayment of convertible notes
|
| | | | — | | | | | | (9,939) | | |
Repayment of shareholders’ loans
|
| | | | — | | | | | | (435) | | |
Issuance of shares due to the exercise of stock options
|
| | | | 25 | | | | | | 25 | | |
Net cash provided by (used in) financing activities
|
| | | | 13,408 | | | | | | (140) | | |
Increase (decrease) in cash and cash equivalents
|
| | | | 1,777 | | | | | | (202) | | |
Cash and cash equivalents at beginning of period
|
| | | | 6,471 | | | | | | 7,643 | | |
Effect of exchange rate fluctuations on balances of cash and cash equivalents
|
| | | | 178 | | | | | | 21 | | |
Cash and cash equivalents at end of period
|
| | | $ | 8,426 | | | | | $ | 7,462 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
WatchPAT and other related services
|
| | | $ | 7,589 | | | | | $ | 5,731 | | | | | $ | 19,906 | | | | | $ | 16,382 | | |
EndoPAT and related services
|
| | | | 495 | | | | | | 330 | | | | | | 1,587 | | | | | | 1,225 | | |
| | | | $ | 8,084 | | | | | $ | 6,061 | | | | | $ | 21,493 | | | | | $ | 17,607 | | |
| | |
Three Months Ended
September 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
United States and Canada
|
| | | $ | 5,814 | | | | | $ | 5,039 | | | | | $ | 15,461 | | | | | $ | 13,002 | | |
Japan
|
| | | | 1,127 | | | | | | 235 | | | | | | 2,595 | | | | | | 2,492 | | |
Europe
|
| | | | 800 | | | | | | 346 | | | | | | 2,367 | | | | | | 1,147 | | |
Asia Pacific (excluding Japan)
|
| | | | 139 | | | | | | 305 | | | | | | 643 | | | | | | 621 | | |
Israel
|
| | | | 83 | | | | | | 63 | | | | | | 204 | | | | | | 225 | | |
Others | | | | | 121 | | | | | | 73 | | | | | | 223 | | | | | | 120 | | |
| | | | $ | 8,084 | | | | | $ | 6,061 | | | | | $ | 21,493 | | | | | $ | 17,607 | | |
| | | | ITAMAR MEDICAL LTD. | | |||
| | | | By: | | | /s/ Gilad Glick | |
| | | | | | |
Name: Gilad Glick
Title: Chief Executive Officer |
|
|
Name
|
| |
Title
|
|
|
/s/ Gilad Glick
Gilad Glick
|
| |
Chief Executive Officer (Principal Executive Officer)
|
|
|
/s/ Shy Basson
Shy Basson
|
| | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |
|
*
Giora Yaron, Ph.D.
|
| | Chairman of the Board | |
|
*
Martin Gerstel
|
| | Member of the Board | |
|
*
Ilan Biran
|
| | Member of the Board | |
|
*
Jonathan Kolber
|
| | Member of the Board | |
|
*
Sami Totah
|
| | Member of the Board | |
|
*
Christopher M. Cleary
|
| | Member of the Board | |
|
*
Yaffa Krindel Sieradzki
|
| | Member of the Board | |
|
*
Zipora (Tzipi) Ozer-Armon
|
| | Member of the Board | |
|
* By:
/s/ Gilad Glick
Gilad Glick
Attorney-in-fact |
| |
| | | | Itamar Medical, Inc. | | ||||||
| | | | By: | | | /s/ Gilad Glick | | |||
| | | | | | | Name: | | | Gilad Glick | |
| | | | | | | Title: | | | Chief Executive Officer (Principal Executive Officer) | |
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the use of our report dated April 10, 2019, with respect to the consolidated statements of financial position of Itamar Medical Ltd. as of December 31, 2018 and 2017, and the related consolidated statements of operations and comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes (collectively, the "consolidated financial statements"), included herein and to the reference to our firm under the heading "Experts" in the prospectus.
/s/ Somekh Chaikin
Certified Public Accountants (Israel)
Member Firm of KMPG International
Tel Aviv, Israel
January 29, 2020