Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - BRAINSTORM CELL THERAPEUTICS INC. | Financial_Report.xls |
| EX-31.2 - EX-31.2 - BRAINSTORM CELL THERAPEUTICS INC. | v238795_ex31-2.htm |
| EX-31.1 - EX-31.1 - BRAINSTORM CELL THERAPEUTICS INC. | v238795_ex31-1.htm |
| EX-32.2 - EX-32.2 - BRAINSTORM CELL THERAPEUTICS INC. | v238795_ex32-2.htm |
| EX-32.1 - EX-32.1 - BRAINSTORM CELL THERAPEUTICS INC. | v238795_ex32-1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2011
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to ___________________
Commission File Number 333-61610
BRAINSTORM CELL THERAPEUTICS INC.
(Exact name of registrant as specified in its charter)
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Delaware
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20-8133057
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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605 Third Avenue, 34th Floor
New York, NY 10158
(Address of principal executive offices)
(212) 557-7200
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer ¨
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Accelerated filer ¨
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Non-accelerated filer ¨ (Do not check if a smaller reporting company)
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Smaller reporting company x
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
As of November 9, 2011, the number of shares outstanding of the registrant’s common stock, $0.00005 par value per share, was 125,719,309.
TABLE OF CONTENTS
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Page
Number
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PART I
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3 |
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Item 1. Financial Statements
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3 |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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35 |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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40 |
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Item 4. Controls and Procedures
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40 |
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PART II
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41 |
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Item 1. Legal Proceedings
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41 |
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Item 1A. Risk Factors
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41 |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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41 |
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Item 6. Exhibits
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41 |
PART I: FINANCIAL INFORMATION
SPECIAL NOTE
Unless otherwise specified in this quarterly report on Form 10-Q, all references to currency, monetary values and dollars set forth herein shall mean United States (U.S.) dollars.
Item 1. Financial Statements.
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2011
UNAUDITED
U.S. DOLLARS IN THOUSANDS
3
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2011
UNAUDITED
U.S. DOLLARS IN THOUSANDS
INDEX
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Page
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Consolidated Balance Sheets
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5
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Consolidated Statements of Operations
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6
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Statements of Changes in Stockholders' Equity (Deficiency)
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7 – 15
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Consolidated Statements of Cash Flows
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16
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Notes to Consolidated Financial Statements
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17 - 34
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4
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
(Except share data)
|
September 30,
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December 31,
|
|||||||
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2 0 11
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2 0 10
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|||||||
|
Unaudited
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Audited
|
|||||||
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ASSETS
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||||||||
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Current Assets:
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||||||||
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Cash and cash equivalents
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$ | 2,390 | $ | 93 | ||||
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Accounts receivable
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369 | 427 | ||||||
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Prepaid expenses
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38 | 59 | ||||||
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Total current assets
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2,797 | 579 | ||||||
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Long-Term Investments:
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||||||||
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Prepaid expenses
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9 | 1 | ||||||
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Severance pay fund
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98 | 90 | ||||||
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Total long-term investments
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107 | 91 | ||||||
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Property And Equipment, Net
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341 | 419 | ||||||
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Total assets
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$ | 3,245 | $ | 1,089 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
||||||||
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Current Liabilities:
|
||||||||
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Trade payables
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$ | 159 | $ | 307 | ||||
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Accrued expenses
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555 | 508 | ||||||
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Other accounts payable
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94 | 471 | ||||||
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Short-term convertible note
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- | 137 | ||||||
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Total current liabilities
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808 | 1,423 | ||||||
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Accrued Severance Pay
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101 | 125 | ||||||
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Total liabilities
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909 | 1,548 | ||||||
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Stockholders' Equity (Deficiency):
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||||||||
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Stock capital: (Note 8)
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6 | 5 | ||||||
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Common stock of $0.00005 par value - Authorized: 800,000,000 shares at September 30, 2011 and December 31, 2010; Issued and outstanding: 125,619,309 and 95,832,978 shares at September 30, 2011 and December 31,2010 respectively.
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||||||||
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Additional paid-in-capital
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44,986 | 39,696 | ||||||
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Deficit accumulated during the development stage
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(42,656 | ) | (40,160 | ) | ||||
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Total stockholders' equity (deficiency)
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2,336 | (459 | ) | |||||
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Total liabilities and stockholders' equity (deficiency)
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$ | 3,245 | $ | 1,089 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
5
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands
(Except share data)
|
Nine months
ended September 30
|
Three months
ended September 30
|
Period from September 22, 2000 (inception date) through September 30,
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||||||||||||||||||
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2 0 11
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2 0 10
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2 0 1 1
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2 0 10
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2 0 1 1
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||||||||||||||||
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Unaudited
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Unaudited
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Unaudited
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||||||||||||||||||
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Operating costs and expenses:
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||||||||||||||||||||
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Research and development, net
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$ | 1,032 | $ | 958 | $ | 176 | $ | 371 | $ | 23,762 | ||||||||||
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General and administrative
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1,459 | 902 | 564 | 264 | 16,257 | |||||||||||||||
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Total operating costs and expenses
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2,491 | 1,860 | 740 | 635 | 40,019 | |||||||||||||||
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Financial expenses (income), net
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132 | 49 | (46 | ) | 45 | 2,528 | ||||||||||||||
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Other income
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132 | - | - | - | 132 | |||||||||||||||
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Operating loss
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2,491 | 1,909 | 694 | 680 | 42,415 | |||||||||||||||
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Taxes on income
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5 | 24 | - | 24 | 77 | |||||||||||||||
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Loss from continuing operations
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2,496 | 1,933 | 694 | 704 | 42,492 | |||||||||||||||
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Net loss from discontinued operations
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- | - | - | - | 164 | |||||||||||||||
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Net loss
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$ | 2,496 | $ | 1,933 | $ | 694 | $ | 704 | 42,656 | |||||||||||
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Basic and diluted net loss per share from continuing operations
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$ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.01 | ||||||||||||
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Weighted average number of shares outstanding used in computing basic and diluted net loss per share
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118,106,658 | 87,592,831 | 124,596,807 | 91,606,177 | ||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements
6
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
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Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
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Number
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Amount
|
capital
|
compensation
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stage
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(deficiency)
|
|||||||||||||||||||
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Balance as of September 22, 2000 (date of inception)
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- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
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Stock issued on September 22, 2000 for cash at $0.00188 per share
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8,500,000 | 1 | 16 | - | - | 17 | ||||||||||||||||||
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Stock issued on March 31, 2001 for cash at $0.0375 per share
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1,600,000 | * - | 60 | - | - | 60 | ||||||||||||||||||
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Contribution of capital
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- | - | 8 | - | - | 8 | ||||||||||||||||||
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Net loss
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- | - | - | - | (17 | ) | (17 | ) | ||||||||||||||||
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Balance as of March 31, 2001
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10,100,000 | 1 | 84 | - | (17 | ) | 68 | |||||||||||||||||
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Contribution of capital
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- | - | 11 | - | - | 11 | ||||||||||||||||||
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Net loss
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- | - | - | - | (26 | ) | (26 | ) | ||||||||||||||||
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Balance as of March 31, 2002
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10,100,000 | 1 | 95 | - | (43 | ) | 53 | |||||||||||||||||
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Contribution of capital
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- | - | 15 | - | - | 15 | ||||||||||||||||||
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Net loss
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- | - | - | - | (47 | ) | (47 | ) | ||||||||||||||||
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Balance as of March 31, 2003
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10,100,000 | 1 | 110 | - | (90 | ) | 21 | |||||||||||||||||
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2-for-1 stock split
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10,100,000 | * - | - | - | - | - | ||||||||||||||||||
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Stock issued on August 31, 2003 to purchase mineral option at $0.065 per share
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100,000 | * - | 6 | - | - | 6 | ||||||||||||||||||
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Cancellation of shares granted to Company's President
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(10,062,000 | ) | * - | * - | - | - | - | |||||||||||||||||
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Contribution of capital
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- | * - | 15 | - | - | 15 | ||||||||||||||||||
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Net loss
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- | - | - | - | (73 | ) | (73 | ) | ||||||||||||||||
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Balance as of March 31, 2004
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10,238,000 | $ | 1 | $ | 131 | $ | - | $ | (163 | ) | $ | (31 | ) | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
7
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(Except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
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Number
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Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
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Balance as of March 31, 2004
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10,238,000 | $ | 1 | $ | 131 | $ | - | $ | (163 | ) | $ | (31 | ) | |||||||||||
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Stock issued on June 24, 2004 for private placement at $0.01 per share, net of $25,000 issuance expenses
|
8,510,000 | * - | 60 | - | - | 60 | ||||||||||||||||||
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Contribution capital
|
- | - | 7 | - | - | 7 | ||||||||||||||||||
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Stock issued in 2004 for private placement at $0.75 per unit
|
1,894,808 | * - | 1,418 | - | - | 1,418 | ||||||||||||||||||
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Cancellation of shares granted to service providers
|
(1,800,000 | ) | * - | - | - | - | ||||||||||||||||||
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Deferred stock-based compensation related to options granted to employees
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- | - | 5,979 | (5,979 | ) | - | - | |||||||||||||||||
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Amortization of deferred stock-based compensation related to shares and options granted to employees
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- | - | - | 584 | - | 584 | ||||||||||||||||||
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Compensation related to shares and options granted to service providers
|
2,025,000 | * - | 17,506 | - | - | 17,506 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (18,840 | ) | (18,840 | ) | ||||||||||||||||
|
Balance as of March 31, 2005
|
20,867,808 | $ | 1 | $ | 25,101 | $ | (5,395 | ) | $ | (19,003 | ) | $ | 704 | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
8
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of March 31, 2005
|
20,867,808 | $ | 1 | $ | 25,101 | $ | (5,395 | ) | $ | (19,003 | ) | $ | 704 | |||||||||||
|
Stock issued on May 12, 2005 for private placement at $0.8 per share
|
186,875 | * - | 149 | - | - | 149 | ||||||||||||||||||
|
Stock issued on July 27, 2005 for private placement at $0.6 per share
|
165,000 | * - | 99 | - | - | 99 | ||||||||||||||||||
|
Stock issued on September 30, 2005 for private placement at $0.8 per share
|
312,500 | * - | 225 | - | - | 225 | ||||||||||||||||||
|
Stock issued on December 7, 2005 for private placement at $0.8 per share
|
187,500 | * - | 135 | - | - | 135 | ||||||||||||||||||
|
Forfeiture of options granted to employees
|
- | - | (3,363 | ) | 3,363 | - | - | |||||||||||||||||
|
Deferred stock-based compensation related to shares and options granted to directors and employees
|
200,000 | * - | 486 | (486 | ) | - | - | |||||||||||||||||
|
Amortization of deferred stock-based compensation related to options and shares granted to employees and directors
|
- | - | 51 | 1,123 | - | 1,174 | ||||||||||||||||||
|
Stock-based compensation related to options and shares granted to service providers
|
934,904 | * - | 662 | - | - | 662 | ||||||||||||||||||
|
Reclassification due to application of ASC 815-40-25 (formerly EITF 00-19)
|
- | - | (7,906 | ) | (7,906 | ) | ||||||||||||||||||
|
Beneficial conversion feature related to a convertible bridge loan
|
- | - | 164 | - | - | 164 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (3,317 | ) | (3,317 | ) | ||||||||||||||||
|
Balance as of March 31, 2006
|
22,854,587 | $ | 1 | $ | 15,803 | $ | (1,395 | ) | $ | (22,320 | ) | $ | (7,911 | ) | ||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
9
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(Except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of March 31, 2006
|
22,854,587 | $ | 1 | $ | 15,803 | $ | (1,395 | ) | $ | (22,320 | ) | $ | (7,911 | ) | ||||||||||
|
Elimination of deferred stock compensation due to implementation of ASC 718-10 (formerly SFAS 123(R))
|
- | - | (1,395 | ) | 1,395 | - | - | |||||||||||||||||
|
Stock-based compensation related to shares and options granted to directors and employees
|
200,000 | * - | 1,168 | - | - | 1,168 | ||||||||||||||||||
|
Reclassification due to application of ASC 815-40-25 (formerly EITF 00-19)
|
- | - | 7,191 | - | - | 7,191 | ||||||||||||||||||
|
Stock-based compensation related to options and shares granted to service providers
|
1,147,225 | - | 453 | - | - | 453 | ||||||||||||||||||
|
Warrants issued to convertible note holder
|
- | - | 11 | - | - | 11 | ||||||||||||||||||
|
Warrants issued to loan holder
|
- | - | 110 | - | - | 110 | ||||||||||||||||||
|
Beneficial conversion feature related to convertible bridge loans
|
- | - | 1,086 | - | - | 1,086 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (3,924 | ) | (3,924 | ) | ||||||||||||||||
|
Balance as of December 31, 2006
|
24,201,812 | $ | 1 | $ | 24,427 | $ | - | $ | (26,244 | ) | $ | (1,816 | ) | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
10
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(Except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of December 31, 2006
|
24,201,812 | $ | 1 | $ | 24,427 | $ | - | $ | (26,244 | ) | $ | (1,816 | ) | |||||||||||
|
Stock-based compensation related to options and shares granted to service providers
|
544,095 | 1,446 | - | - | 1,446 | |||||||||||||||||||
|
Warrants issued to convertible note holder
|
- | - | 109 | - | - | 109 | ||||||||||||||||||
|
Stock-based compensation related to shares and options granted to directors and employees
|
200,000 | * - | 1,232 | - | - | 1,232 | ||||||||||||||||||
|
Beneficial conversion feature related to convertible loans
|
- | - | 407 | - | - | 407 | ||||||||||||||||||
|
Conversion of convertible loans
|
725,881 | * - | 224 | - | - | 224 | ||||||||||||||||||
|
Exercise of warrants
|
3,832,621 | * - | 214 | - | - | 214 | ||||||||||||||||||
|
Stock issued for private placement at $0.1818 per unit, net of finder's fee
|
11,500,000 | 1 | 1,999 | - | - | 2,000 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (6,244 | ) | (6,244 | ) | ||||||||||||||||
|
Balance as of December 31, 2007
|
41,004,409 | $ | 2 | $ | 30,058 | $ | - | $ | (32,488 | ) | $ | (2,428 | ) | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
11
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(Except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of December 31, 2007
|
41,004,409 | $ | 2 | $ | 30,058 | $ | - | $ | (32,488 | ) | $ | (2,428 | ) | |||||||||||
|
Stock-based compensation related to options and stock granted to service providers
|
90,000 | - | 33 | - | - | 33 | ||||||||||||||||||
|
Stock-based compensation related to stock and options granted to directors and employees
|
- | - | 731 | - | - | 731 | ||||||||||||||||||
|
Conversion of convertible loans
|
3,644,610 | * - | 1,276 | - | - | 1,276 | ||||||||||||||||||
|
Exercise of warrants
|
1,860,000 | * - | - | - | - | - | ||||||||||||||||||
|
Exercise of options
|
17,399 | * - | 3 | - | - | 3 | ||||||||||||||||||
|
Stock issued for private placement at $0.1818 per unit, net of finder's fee
|
8,625,000 | 1 | 1,499 | - | - | 1,500 | ||||||||||||||||||
|
Subscription of shares for private placement at $0.1818 per unit
|
- | - | 281 | - | - | 281 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (3,472 | ) | (3,472 | ) | ||||||||||||||||
|
Balance as of December 31, 2008
|
55,241,418 | $ | 3 | $ | 33,881 | $ | - | $ | (35,960 | ) | $ | (2,076 | ) | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
12
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of December 31, 2008
|
55,241,418 | $ | 3 | $ | 33,881 | $ | - | $ | (35,960 | ) | $ | (2,076 | ) | |||||||||||
|
Stock-based compensation related to options and stock granted to service providers
|
5,284,284 | (* | ) | 775 | - | 775 | ||||||||||||||||||
|
Stock-based compensation related to stock and options granted to directors and employees
|
- | - | 409 | - | 409 | |||||||||||||||||||
|
Conversion of convertible loans
|
2,500,000 | (* | ) | 200 | - | 200 | ||||||||||||||||||
|
Exercise of warrants
|
3,366,783 | (* | ) | - | - | - | ||||||||||||||||||
|
Stock issued for amendment of private placement
|
9,916,667 | 1 | - | - | 1 | |||||||||||||||||||
|
Subscription of shares
|
- | - | 729 | - | 729 | |||||||||||||||||||
|
Net loss
|
- | - | - | - | (1,781 | ) | (1,781 | ) | ||||||||||||||||
|
Balance as of December 31, 2009
|
76,309,152 | $ | 4 | $ | 35,994 | $ | - | $ | (37,741 | ) | $ | (1,743 | ) | |||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements
13
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(except share data)
| Common stock | Additional paid-in |
Deferred
Stock-based
|
Deficit accumulated during the development | Total stockholders' equity | ||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of December 31, 2009
|
76,309,152 | $ | 4 | $ | 35,994 | - | $ | (37,741 | ) | $ | (1,743 | ) | ||||||||||||
|
Stock-based compensation related to options and stock granted to service providers
|
443,333 | - | 96 | - | - | 96 | ||||||||||||||||||
|
Stock-based compensation related to stock and options granted to directors and employees
|
466,667 | - | 388 | - | - | 388 | ||||||||||||||||||
|
Stock issued for amendment of private placement
|
7,250,000 | 1 | 1,750 | - | - | 1,751 | ||||||||||||||||||
|
Conversion of convertible note
|
402,385 | - | 135 | - | - | 135 | ||||||||||||||||||
|
Conversion of convertible loans
|
1,016,109 | - | 189 | - | - | 189 | ||||||||||||||||||
|
Issuance of shares
|
2,475,000 | - | 400 | - | - | 400 | ||||||||||||||||||
|
Exercise of options
|
1,540,885 | - | 77 | - | - | 77 | ||||||||||||||||||
|
Exercise of warrants
|
3,929,446 | 11 | - | - | 11 | |||||||||||||||||||
|
Subscription of shares for private placement at $0.12 per unit
|
- | 455 | - | - | 455 | |||||||||||||||||||
|
Conversion of trade payable to stock
|
- | 201 | - | - | 201 | |||||||||||||||||||
|
Issuance of shares on account of previously subscribed shares
|
2,000,001 | - | - | - | - | - | ||||||||||||||||||
|
Net loss
|
(2,419 | ) | (2,419 | ) | ||||||||||||||||||||
|
Balance as of December 31, 2010
|
95,832,978 | $ | 5 | $ | 39,696 | $ | - | (40,160 | ) | (459 | ) | |||||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statements.
14
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
U.S. dollars in thousands
(except share data)
|
Deficit
|
||||||||||||||||||||||||
|
accumulated
|
Total
|
|||||||||||||||||||||||
|
Common stock
|
Additional paid-in
|
Deferred
Stock - based
|
during the development
|
stockholders' equity
|
||||||||||||||||||||
|
Number
|
Amount
|
capital
|
compensation
|
stage
|
(deficiency)
|
|||||||||||||||||||
|
Balance as of December 31, 2010
|
95,832,978 | $ | 5 | $ | 39,696 | $ | - | $ | 40,160 | ) | $ | (459 | ) | |||||||||||
|
Stock-based compensation related to options and stock granted to service providers
|
590,870 | - | 246 | - | - | 246 | ||||||||||||||||||
|
Stock-based compensation related to stock and options granted to directors and employees
|
1,400,040 | - | 786 | - | - | 786 | ||||||||||||||||||
|
Conversion of convertible note
|
755,594 | - | 140 | - | - | 140 | ||||||||||||||||||
|
Exercise of options
|
1,432,061 | - | 228 | - | - | 228 | ||||||||||||||||||
|
Exercise of warrants
|
946,834 | - | 265 | - | - | 265 | ||||||||||||||||||
|
Issuance of shares for private placement
|
14,160,933 | 1 | 3,601 | 3,602 | ||||||||||||||||||||
|
Issuance of shares on account of previously subscribed shares (See also Note 8B.1.f)
|
10,499,999 | - | 24 | - | - | 24 | ||||||||||||||||||
|
Net loss
|
- | - | - | - | (2,496 | ) | (2,496 | ) | ||||||||||||||||
|
Balance as of September 30, 2011
|
125,619,309 | $ | 6 | $ | 44,986 | $ | - | $ | (42,656 | ) | $ | 2,336 | ||||||||||||
* Represents an amount less than $1.
The accompanying notes are an integral part of the consolidated financial statement
15
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
(except share data)
|
Nine months
ended September 30
|
Period from
September 22, 2000
(inception date) through September 30,
|
|||||||||||
|
2 0 1 1
|
2 0 1 0
|
2 0 1 1
|
||||||||||
|
Unaudited
|
Unaudited
|
|||||||||||
|
Cash flows from operating activities:
|
||||||||||||
|
Net loss
|
$ | (2,496 | ) | $ | (1,933 | ) | $ | (42,656 | ) | |||
|
Less - loss for the period from discontinued operations
|
164 | |||||||||||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||
|
Depreciation and amortization of deferred charges
|
116 | 126 | 964 | |||||||||
|
Severance pay, net
|
(32 | ) | 11 | 3 | ||||||||
|
Accrued interest on loans
|
3 | - | 451 | |||||||||
|
Amortization of discount on short-term loans
|
- | - | 1,864 | |||||||||
|
Change in fair value of options and warrants
|
- | - | (795 | ) | ||||||||
|
Expenses related to shares and options granted to service providers
|
246 | 111 | 21,283 | |||||||||
|
Stock-based compensation related to options granted to employees
|
786 | 254 | 6,472 | |||||||||
|
Decrease (increase) in accounts receivable and prepaid expensed
|
79 | (26 | ) | (407 | ) | |||||||
|
Increase (decrease) in trade payables
|
(148 | ) | (70 | ) | 632 | |||||||
|
Increase (decrease) in accrued expenses and other accounts payable
|
(306 | ) | 4 | 1,155 | ||||||||
|
Erosion of restricted cash
|
- | - | (6 | ) | ||||||||
|
Net cash used in continuing operating activities
|
(1,752 | ) | (1,523 | ) | (10,876 | ) | ||||||
|
Net cash used in discontinued operating activities
|
- | - | (23 | ) | ||||||||
|
Total net cash used in operating activities
|
(1,752 | ) | (1,523 | ) | $ | (10,899 | ) | |||||
|
Cash flows from investing activities:
|
||||||||||||
|
Purchase of property and equipment
|
(38 | ) | (2 | ) | (1,123 | ) | ||||||
|
Restricted cash
|
- | - | 6 | |||||||||
|
Investment in lease deposit
|
(8 | ) | - | (9 | ) | |||||||
|
Net cash used in continuing investing activities
|
(46 | ) | (2 | ) | (1,126 | ) | ||||||
|
Net cash used in discontinued investing activities
|
- | - | (16 | ) | ||||||||
|
Total net cash used in investing activities
|
(46 | ) | (2 | ) | (1,142 | ) | ||||||
|
Cash flows from financing activities:
|
||||||||||||
|
Proceeds from issuance of Common stock, net
|
3,602 | 2,175 | 12,319 | |||||||||
|
Proceeds from loans, notes and issuance of warrants, net
|
- | - | 2,061 | |||||||||
|
Credit from bank
|
- | (5 | ) | - | ||||||||
|
Proceeds from exercise of warrants and options
|
493 | 103 | 609 | |||||||||
|
Repayment of short-term loans
|
- | - | (601 | ) | ||||||||
|
Net cash provided by continuing financing activities
|
4,095 | 2,273 | 14,388 | |||||||||
|
Net cash provided by discontinued financing activities
|
- | - | 43 | |||||||||
|
Total net cash provided by financing activities
|
4,095 | 2,273 | 14,431 | |||||||||
|
Increase in cash and cash equivalents
|
2,297 | 748 | 2,390 | |||||||||
|
Cash and cash equivalents at the beginning of the period
|
93 | 1 | - | |||||||||
|
Cash and cash equivalents at end of the period
|
$ | 2,390 | $ | 749 | $ | 2,390 | ||||||
|
Non-cash financing activities:
|
||||||||||||
| Conversion of convertible loan and convertible note to shares Conversion of trade payable to Common Stock $ 84 |
140
|
324 | ||||||||||
| Conversion of other accounts payable to Common Stock | 24 | |||||||||||
16
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARY
(A development stage company)
Notes to the financial statements
|
NOTE 1
|
-
|
GENERAL
|
|
|
A.
|
Brainstorm Cell Therapeutics Inc. (formerly: Golden Hand Resources Inc.) (The "Company") was incorporated in the State of Washington on September 22, 2000.
|
|
|
B.
|
On May 21, 2004, the former major stockholders of the Company entered into a purchase agreement with a group of private investors, who purchased from the former major stockholders 6,880,000 shares of the then issued and outstanding 10,238,000 shares of Common Stock.
|
|
|
C.
|
On July 8, 2004, the Company entered into a licensing agreement with Ramot of Tel Aviv University Ltd. ("Ramot"), an Israeli corporation, to acquire certain stem cell technology (see Note 4). Subsequent to this agreement, the Company decided to focus on the development of novel cell therapies for neurodegenerative diseases, particularly Parkinson's disease, based on the acquired technology and research to be conducted and funded by the Company.
Following the licensing agreement dated July 8, 2004, the management of the Company decided to abandon all old activities related to the sale of the digital data recorder product. The discontinuation of this activity was accounted for under the provision of Statement of Financial Accounting Standard ASC 360-10 (formerly "SFAS" 144), "Accounting for the Impairment or Disposal of Long-Lived Assets".
|
|
|
D.
|
On October 25, 2004, the Company formed a wholly-owned subsidiary in Israel, Brainstorm Cell Therapeutics Ltd. ("BCT").
|
|
|
E.
|
On November 22, 2004, the Company changed its name from Golden Hand Resources Inc. to Brainstorm Cell Therapeutics Inc. to better reflect its new line of business in the development of novel cell therapies for neurodegenerative diseases. BCT owns all operational property and equipment.
|
|
|
F.
|
On September 17, 2006, the Company's Board determined to change the Company's fiscal year-end from March 31 to December 31.
|
|
|
G.
|
On December 2006, the Company changed its state of incorporation from Washington to Delaware.
|
|
|
H.
|
Since its inception, the Company has devoted substantially most of its efforts to research and development, recruiting management and technical staff, acquiring assets and raising capital. In addition, the Company has not generated revenues. Accordingly, the Company is considered to be in the development stage, as defined in Statement of Financial Accounting Standards No. 7, "Accounting and reporting by development Stage Enterprises" ASC 915-10 (formerly "SFAS" 7).
|
|
|
I.
|
In October 2010, the Israeli Ministry of Health granted clearance for a Phase I/II clinical trial using the Company’s autologous NurOwn™ stem cell therapy in patients with ALS, subject to some additional process specifications as well as completion of the sterility validation study for tests performed.
On February 23, 2011, the Company submitted, to the MOH, all the required documents. Following approval of the Israel Ministry of Health (MOH), a Phase I/II clinical study for ALS patients using the Company’s autologous NurOwn™ stem cell therapy was initiated in June 2011.
|
|
|
J.
|
In February 2011, the U.S. Food and Drug Administration (FDA) granted orphan drug designation to the Company’s NurOwn™ autologous adult stem cell product candidate for the treatment of amyotrophic lateral sclerosis (ALS).
|
17