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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2019 shares
Document And Entity Information
Entity Registrant Name	Vascular Biogenics Ltd.
Entity Central Index Key	0001603207
Document Type	20-F
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	35,882,928
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Document Annual Report	true
Document Transition Report	false
Document Shell Company	false

Statements of Financial Position - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 9,436	$ 29,347
Short-term bank deposits	27,100	21,135
Other current assets	1,242	1,227
TOTAL CURRENT ASSETS	37,778	51,709
NON-CURRENT ASSETS:
Restricted bank deposits	506
Property and equipment, net	6,949	8,921
Right-of-use assets	3,088
Long-term prepaid expenses	300	48
TOTAL NON-CURRENT ASSETS	10,843	8,969
TOTAL ASSETS	48,621	60,678
CURRENT LIABILITIES-
Accounts payable and accruals: Trade	3,330	1,193
Accounts payable and accruals: Other	4,238	2,944
Deferred revenue	386	290
Lease liabilities	774	347
TOTAL CURRENT LIABILITIES	8,728	4,774
NON-CURRENT LIABILITIES-
Severance pay obligations, net	163	99
Deferred revenue	1,723	2,263
Lease liabilities	2,167	449
TOTAL NON-CURRENT LIABILITIES	4,053	2,811
TOTAL LIABILITIES	12,781	7,585
COMMITMENTS
SHAREHOLDERS' EQUITY:
Ordinary shares, NIS 0.01 par value; Authorized as of December 31, 2019 and 2018, 70,000,000 shares; issued and outstanding as of December 31, 2019 and 2018, 35,882,928 and 35,881,128 shares, respectively	73	73
Accumulated other comprehensive income (loss)	(8)	41
Additional paid in capital	235,974	233,721
Warrants	7,904	7,904
Accumulated deficit	(208,103)	(188,646)
TOTAL SHAREHOLDERS' EQUITY	35,840	53,093
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 48,621	$ 60,678

Statements of Financial Position (Parenthetical) - $ / shares

Dec. 31, 2019

Dec. 31, 2018

StatementOfFinancialPositionLineItems [Line Items]

Ordinary shares, shares authorized

70,000,000

Ordinary shares, shares issued

^[1]

35,882,928

35,881,128

Ordinary shares, shares outstanding

35,882,928

35,881,128

NIS [Member]

StatementOfFinancialPositionLineItems [Line Items]

Ordinary shares, par value

$ 0.01

[1]

The Ordinary Shares confer upon their holders the following rights: (i) the right to vote in any general meeting of the Company; (ii) the right to receive dividends; and (iii) the right to receive upon liquidation of the Company a sum equal to the nominal value of the share, and if a surplus remains, to receive such surplus.

Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Profit or loss [abstract]
REVENUES	$ 562	$ 585	$ 13,864
COST OF REVENUES	(163)	(235)	(340)
GROSS PROFIT	399	350	13,524
RESEARCH AND DEVELOPMENT EXPENSES, net	15,470	15,940	17,770
MARKETING EXPENSES		397	562
GENERAL AND ADMINISTRATIVE EXPENSES	4,943	5,220	5,847
OPERATING LOSS	20,014	21,207	10,655
FINANCIAL INCOME	(870)	(908)	(544)
FINANCIAL EXPENSES	313	159	27
FINANCIAL (INCOME), net	(557)	(749)	(517)
LOSS FOR THE YEAR	19,457	20,458	10,138
OTHER COMPREHENSIVE LOSS (INCOME)-
Items that will not be reclassified to profit or loss-Re-measurements of post-employment benefit obligation	49	(25)	24
COMPREHENSIVE LOSS	$ 19,506	$ 20,433	$ 10,162
LOSS PER ORDINARY SHARE
Basic and diluted	$ 0.54	$ 0.62	$ 0.37
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING-
Basic and diluted	35,881,256	32,969,094	27,398,169

Statements of Changes in Shareholders' Equity
$ in Thousands

Ordinary Shares [Member]

USD ($)

Accumulated Other Comprehensive Income [Member]

USD ($)

Additional Paid in Capital [Member]

USD ($)

Warrants [Member]

USD ($)

Accumulated Deficit [Member]

USD ($)

Balance, beginning at Dec. 31, 2016

$ 50

$ 40

$ 197,400

$ 2,960

$ (158,050)

$ 42,400

Balance, shares beginning at Dec. 31, 2016 | shares

26,902,285

Statement Line Items [Line Items]

Comprehensive loss

(24)

(10,138)

(10,162)

Employee stock options exercised

^[1]

479

Employee stock options exercised, shares | shares

252,343

Issuance of ordinary Shares, net of issuance costs of $288 thousand

$ 7

19,024

19,031

Issuance of ordinary Shares, net of issuance costs of $288 thousand, shares | shares

2,724,695

Share based payments to employees and non-employees

4,152

Balance, ending at Dec. 31, 2017

$ 57

221,055

2,960

(168,188)

55,900

Balance, shares ending at Dec. 31, 2017 | shares

29,879,323

Statement Line Items [Line Items]

Comprehensive loss

(20,458)

(20,433)

Employee stock options exercised

Employee stock options exercised, shares | shares

97,043

Share based payments to employees and non-employees

3,867

Issuance of ordinary shares, net of issuance costs in amount of $1,775 thousand

$ 16

8,765

4,944

13,725

Issuance of ordinary shares, net of issuance costs in amount of $1,775 thousand, shares | shares

5,904,762

Balance, ending at Dec. 31, 2018

$ 73

233,721

7,904

(188,646)

$ 53,093

Balance, shares ending at Dec. 31, 2018 | shares

35,881,128

Statement Line Items [Line Items]

Comprehensive loss

(49)

(19,457)

$ (19,506)

Share based payments to employees and non-employees

2,251

Issuance of ordinary shares

Issuance of ordinary shares, shares | shares

1,800

Balance, ending at Dec. 31, 2019

$ 73

$ (8)

$ 235,974

$ 7,904

$ (208,103)

$ 35,840

Balance, shares ending at Dec. 31, 2019 | shares

35,882,928

[1]	Amount less than $1 thousand

Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2016
Statement Line Items [Line Items]
Shares and warrants issuance costs		$ 19,031
Ordinary shares	$ 53,093	55,900	$ 35,840	$ 42,400
Ordinary Shares [Member]
Statement Line Items [Line Items]
Shares and warrants issuance costs	$ 1,775	288
Top of Range [Member]
Statement Line Items [Line Items]
Ordinary shares		$ 1

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss for the year	$ (19,457)	$ (20,458)	$ (10,138)
Adjustments required to reflect net cash used in operating activities (see Appendix A)	5,957	3,951	5,993
Interest received	927	849	324
Interest paid	(124)	(22)
Net cash used in operating activities	(12,697)	(15,680)	(3,821)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(73)	(2,229)	(6,482)
Proceeds from sale of property and equipment		4
Investment in short-term bank deposits	(63,527)	(21,000)	(81,332)
Maturity of short-term bank deposits	57,000	47,958	66,974
Net cash generated from (used in) investing activities	(6,600)	24,733	(20,840)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of employees stock options		34	479
Issuance of ordinary shares and warrants, net	2	13,725	19,031
Principal elements of lease payments	(759)	(88)
Net cash generated from (used in) financing activities	(757)	13,671	19,510
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(20,054)	22,724	(5,151)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR	29,347	6,694	11,585
EXCHANGE GAINS (LOSSES) ON CASH AND CASH EQUIVALENTS	143	(71)	260
CASH AND CASH EQUIVALENTS AT END OF THE YEAR	$ 9,436	$ 29,347	$ 6,694

Statements of Cash Flows - Appendix - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Adjustments required to reflect net cash used in operating activities:
Depreciation	$ 1,714	$ 1,156	$ 156
Interest income	(871)	(908)	(331)
Interest paid	124	22
Loss from sale of property and equipment		47
Exchange losses (gains) on lease liabilities	262	(60)
Exchange losses (gains) on cash and cash equivalents	(143)	71	(260)
Net changes in severance pay obligations	15	(4)	17
Share based payments	2,251	3,867	4,152
Adjustments required to reflect net cash used in operating activities, total	3,352	4,191	3,734
Changes in working capital:
Decrease (increase) in other current assets	(81)	502	(409)
Decrease (increase) in trade receivables		2,000	(2,000)
Decrease (increase) in long term prepaid expenses	(300)	55	(90)
Increase (decrease) in accounts payable and accruals:
Trade	2,136	(1,691)	421
Other	1,294	(521)	1,199
Increase (decrease) in deferred revenue	(444)	(585)	3,138
Changes in working capital, total	2,605	(240)	2,259
Adjustments required to reflect net cash used in operating activities including changes in working capital, total	5,957	3,951	5,993
Supplementary information on investing and financing activities not involving cash flows:
Purchase of property and equipment in payables		796	115
Right of use assets obtained in exchange for new lease liabilities	28
Reclassification of bank deposits to restricted bank deposits	$ (500)

General Information

12 Months Ended

Dec. 31, 2019

Disclosure of reserves within equity [abstract]

General Information

NOTE 1-GENERAL INFORMATION:

a.	General

Vascular Biogenics Ltd. (the “Company” or VBL) was incorporated on January 27, 2000. The Company is a late-stage clinical biopharmaceutical company focused on the discovery, development and commercialization of first-in-class treatments for cancer and immune/inflammatory indications. VB-111 (ofranergene obadenovec), a Phase 3 drug candidate, is the lead product candidate in the Company’s cancer program.

VB-600 series are preclinical stage antibodies targeting MOSPD2 for inflammatory and oncology indications, which are being advanced towards IND VB-601 is the lead mAb candidate for various inflammatory indications and VB-611 is the lead bi-specific mAb for various solid tumors.

VB-201, a Phase 2-ready drug candidate, is the Company’s lead Lecinoxoid-based product candidate for chronic immune-related indications.

The Company is engaged in an exclusive license agreement with NanoCarrier Co., Ltd. for the development, commercialization, and supply of ofranergene obadenovec (“VB-111”) in Japan for all indications, see notes 2(m) and 9.

In March 2019, the Company entered into an exclusive option license agreement with an animal health company for the development of VB-201 for veterinary use, see note 9.

Since inception, the Company has incurred significant losses, and it expects to continue to incur significant expenses and losses for at least the next several years. As of December 31, 2019, the Company had an accumulated deficit of $208.1 million. The Company’s losses may fluctuate significantly from quarter to quarter and year to year, depending on the timing of its clinical trials, the receipt of payments under any future collaboration agreements it may enter into, and its expenditures on other research and development activities.

As of December 31, 2019, the Company had cash, cash equivalents, short-term bank deposits and restricted bank deposits of $37.0 million. The Company may seek to raise more capital to pursue additional activities. The Company may seek these funds through a combination of private and public equity offerings, government grants, strategic collaborations and licensing arrangements. Additional financing may not be available when the Company needs it or may not be available on terms that are favorable to the Company.

b.	Approval of financial statements

These financial statements were approved by the Board of Directors on March 19, 2020.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Disclosure of initial application of standards or interpretations [abstract]

Summary of Significant Accounting Policies

NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

a.	Basis of preparation of the financial statements

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The significant accounting policies described below have been applied consistently in relation to all the periods presented, unless otherwise stated.

The financial statements have been prepared under the historical cost convention except of severance pay obligation, net.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

Actual results could differ from those estimates and assumptions.

b.	Functional and presentation currency:

1)	Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in U.S. dollar ($), which is the Company’s functional and presentation currency.

2)	Transactions and balances

Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

All foreign exchange gains and losses are presented in the statements of loss and comprehensive loss within financial income or expenses.

c.	Cash and cash equivalents

Cash and cash equivalents include cash on hand and short-term bank deposits (with original maturities of three months or less) that are not restricted as to withdrawal or use, and are therefore considered to be cash equivalents.

d.	Property and equipment:

1)	All property and equipment (including leasehold improvements) are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditures that are directly attributable to the acquisition of the items.

Repairs and maintenance are charged to the income statement during the period in which they are incurred.

2)	The assets are depreciated using the straight-line method to allocate their cost over their estimated useful lives as follows:

	%
Laboratory equipment		9-15
Computers		25-33
Office furniture and equipment		7

Leasehold improvements are depreciated using the straight-line method over the shorter of the term of the lease or the estimated useful life of the improvements.

3)	Gains and losses on disposals are determined by comparing proceeds with the associated carrying amount. These are included in the statements of loss and comprehensive loss.

e.	Impairment of non-financial assets

Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset fair value less costs to dispose and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

For the years ended December 31, 2019, 2018 and 2017, no impairment has been recognized.

f.	Financial assets:

As of January 1, 2018, the Company adopted IFRS 9 “Financial Instruments”.

1)	Classification

From January 1, 2018, the Company classifies its financial assets as measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

Financial assets at amortized cost of the Company are included in trade receivables, other current assets and short term bank deposits in the Statements of Financial Position.

2)	Recognition and measurement

Regular way purchases and sales of financial assets are recognized on trade-date, the date on which the group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

At initial recognition, the Company measures a financial asset at amortized cost at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in the Statement of loss and comprehensive loss under “Financial Expenses (Income), net” together with foreign exchange gains and losses.

3)	Impairment

From January 1, 2018, the Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Prior to the effective date and adoption of IFRS 9, the financial assets of the Company were classified as loans and receivables. The classification depended on the purpose for which the financial assets were acquired, also, prior to the adoption of IFRS 9, the Company assessed at December 31, 2017 whether there is any objective evidence that a financial asset or group of financial assets was impaired.

g.	Financial liabilities:

Accounts payable

Accounts payable are initially measured at fair value. In subsequent periods, the other financial liabilities are presented at amortized cost. Any difference between the consideration and the redemption value is accreted to profit or loss over the term of the liability, using the effective interest method.

Financial liabilities are classified as current liabilities, unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period, in which case they are classified as noncurrent liabilities.

h.	Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are included in equity as a deduction from the proceeds.

i.	Deferred income tax

Deferred taxes are recognized using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable income will be available against which the temporary differences can be utilized. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Due to absence of expectation of taxable income in the future, no deferred tax assets have been recorded in the Company’s financial statements.

j.	Employee benefits:

1)	Post employment benefit obligation

Israeli labor laws and the Company’s agreements require the Company to pay retirement benefits to employees terminated or leaving their employment in certain other circumstances. Most of the Company’s employees are covered by a defined contribution plan under Section 14 of the Israel Severance Pay Law from the beginning of their employment with the Company.

With respect to the remaining employees, which are not covered by a defined contribution plan under Section 14 of the Israel Severance Pay Law only from January 1, 2010, the Company records a liability in its statement of financial position for defined benefit plans that represents the present value of the defined benefit obligation as of the statement of financial position date, net of the fair value of plan assets.

The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of highly rated corporate bonds that are denominated in the currency in which the benefits will be paid (NIS) and that have terms to maturity approximating the terms of the related liability.

Remeasurement gains and losses arising from adjustments to reflect actual experience and changes in actuarial assumptions are charged or credited to equity in other comprehensive loss (income) in the period in which they arise.

2)	Vacation and recreation pay

Under Israeli law, each employee is entitled to vacation days and recreation pay, both computed on an annual basis. The entitlement is based on the length of the employment period. The Company recognizes a liability and an expense for vacation and recreation pay based on the entitlement of each employee.

k.	Share-based payments

The Company operates a number of equity-settled, share-based compensation plans to employees (as defined in IFRS 2 “Share-Based Payments”), directors and service providers. As part of the plans, the Company grants employees, directors and service providers, from time to time and at its discretion, options and RSUs to purchase Company shares. The fair value of the employee and service provider services received in exchange for the grant of the options and RSUs are recognized as an expense in profit or loss and is recorded to Additional paid in capital within equity. The total amount recognized as an expense over the vesting period of the options (the period during which all vesting conditions are expected to be met) was determined as follows:

1)	Share based payments to employees and directors by reference to the fair value of the options and RSUs granted at date of grant.

2)	Share based payments to service providers by reference to the fair value of the service provided.

Service conditions and performance vesting conditions are included in assumptions about the number of options and RSUs that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

At the end of each reporting period, the Company revises its estimates of the number of options and RSUs that are expected to vest based on the vesting conditions. The Company recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to Additional paid in capital.

When options are exercised, the Company issues new shares, with proceeds less directly attributable transaction costs recognized as share capital (par value) and additional paid in capital.

l.	Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation. Provisions are measured by discounting the future cash outflow at a pretax interest rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The carrying amount of the provision is adjusted in each reporting period in order to reflect the passage of time and the changes in the carrying amounts are carried to the statement of loss and comprehensive loss.

For the years ended December 31, 2019 and 2018, no provisions have been recognized.

m.	Revenue from contracts with customers

General

The Company recognized revenues from the License Agreement according to IFRS 15, “Revenues from Contracts with Customers.” Prior to the signing of the License Agreement, the Company did not have revenue.

In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under each of its agreements, the Company performs the following steps:

1.	identify the contract with a customer;
2.	identify the performance obligations in the contract;
3.	determine the transaction price;
4.	allocate the transaction price to the performance obligations in the contract;
5.	recognize revenue when (or as) the entity satisfies a performance obligation.

Revenues from licensing agreement

According to IFRS 15, performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. Goods and services that are not distinct are bundled with other goods or services in the contract until a bundle of goods or services that is distinct is created. A good or service promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract.

The Company has identified two performance obligations in The License Agreement: (1) Grant of the license and use of its IP; and (2) Company’s participation and consulting assistance services. In addition, there is a potential performance obligation regarding future manufacturing.

IFRS 15 defines the ‘Transaction Price’ as the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to a customer. The Company allocates the transaction price to each performance obligation identified based on the standalone selling prices of the goods or services being provided to the customer.

The Grant of the license and use of its IP performance obligation considered to be a right to use IP in accordance with IFRS 15. Therefore, revenue is recognized at a point in time, upon transfer of control over the license to the licensee.

The Company’s participation and consulting assistance services performance obligation is recognized as revenue over the service period, based on input method, which is costs incurred and labor hours expended.

Revenue from achieving additional milestones is recognized only when it is highly probable that a significant reversal of cumulative revenues will not occur, usually upon achievement of the specific milestone.

The transaction price contains variable considerations contingent upon the licensee achieving certain milestones, as well as sales-based royalties, in accordance with the relevant agreement.

Variable payments, contingent on achieving additional milestones, are included in the transaction price based on most likely amount method. Amounts included in the transaction price are recognized only when it is highly probable that a significant reversal of cumulative revenues will not occur, usually upon achievement of the specific milestone, in accordance with the relevant agreement.

Sales-based royalties are not included in the transaction price. Rather, they are recognized as the related sale occurs, due to the specific exception of IFRS 15 for sales-based royalties in licensing of intellectual properties.

n.	Research and development expenses

Research expenses are charged to profit or loss as incurred. An intangible asset arising from development of the Company’s products is recognized if all of the following conditions are met:

	●	It is technically feasible to complete the intangible asset so that it will be available for use;

	●	Management intends to complete the intangible asset and use it or sell it;

	●	There is an ability to use or sell the intangible asset;

	●	It can be demonstrated how the intangible asset will generate probable future economic benefits;

	●	Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available;

	●	Costs associated with the intangible asset during development can be measured reliably.

Other development costs that do not meet the above criteria are recognized as expenses as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

As of December 31, 2019, the Company has not yet capitalized any development costs.

o.	Government grants

Government grants, which are received from the Israeli Innovation Authority or IIA (formerly known as the Israeli Office of Chief Scientist, or the “OCS”) by way of participation in research and development that is conducted by the Company, fall within the scope of “forgivable loans,” as set forth in International Accounting Standard 20 “Accounting for Government Grants and Disclosure of Government Assistance” (“IAS 20”).

As approved by the IIA, the grants are received in installments as the program progresses. The Company recognizes each forgivable loan on a systematic basis at the same time the Company records, as an expense, the related research and development costs for which the grant is received, provided that there is reasonable assurance that (a) the Company complies with the conditions attached to the grant, and (b) it is probable that the grant will be received (usually upon receipt of approval notice). The amount of the forgivable loan is recognized based on the participation rate approved by the IIA; thus, a forgivable loan is recognized as a receivable when approved research and development costs have been incurred before grant funds are received.

Since at the time of grant approval there is reasonable assurance that the Company will comply with the forgivable loan conditions attached to the grant, and it is reasonably assured that the Company will not pay royalties to IIA, grant income is recorded against the related research and development expenses in the statements of loss and comprehensive loss.

If forgivable loans are initially carried to income, as described above, and in subsequent periods it is no longer reasonably assured that royalties will not be paid to the IIA, the Company recognizes a liability that is measured based on the Company’s best estimate of the amount required to settle the Company’s obligation at the end of each reporting period.

Lease

Commencing January 1, 2019, the Company accounts for leases in accordance with International Financial Reporting Standard No. 16 “Leases” (“IFRS 16”).

The Company’s leases include property and motor vehicle leases. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company reassesses whether a contract is, or contains, a lease only if the terms and conditions of the contract are changed.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date, including, inter alia, the exercise price of a purchase option if the Company is reasonably certain to exercise that option.

Simultaneously, the Company recognizes a right-of-use asset in the amount of the lease liability and did not have an effect on accumulated deficits as of January 1, 2019.

Since the interest rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate. This rate is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

The lease term is the non-cancellable period for which the Company has the right to use an underlying asset, together with both, the periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option.

After the commencement date, the Company measures the right-of-use asset applying the cost model, less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability.

Assets are depreciated by the straight-line method over the estimated useful lives of the right of use assets or the lease period, which is shorter:

	Years

Property		8
Motor vehicles		3

Interest on the lease liability is recognized in profit or loss in each period during the lease term in an amount that produces a constant periodic rate of interest on the remaining balance of the lease liability.

For information regarding the initial implementation of IFRS 16, effective January 1, 2019, see Note 7.

Measurement of lease liability as of January 1, 2019:

	U.S. dollars in thousands
Operating lease commitments (undiscounted) disclosed as of December 31, 2018	$	2,100
Discounted using the lessee’s incremental borrowing rate of at the date of initial application		1,808
Add: finance lease liabilities recognized as of December 31, 2018		796
Add: adjustments as a result of a different treatment of extension and termination options		806
Lease liability recognized as of January 1, 2019	$	3,410

Prior to the implementation of IFRS 16, leases were accounted for in accordance with IAS 17. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the statements of loss and comprehensive loss on a straight-line basis over the period of the lease.

Leases of property and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in short-term lease liability and long-term lease liability. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Company will obtain ownership at the end of the lease term.

q.	Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments. The Company operates in one operating segment.

r.	Loss per Ordinary Share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of Ordinary Shares issued and outstanding during the year.

The diluted loss per share is calculated by adjusting the weighted average number of outstanding Ordinary Shares, assuming conversion of all dilutive potential shares.

The Company’s dilutive potential shares consist of options and RSUs granted to employees and service providers and warrants.

The dilutive potential shares were not taken into account in computing loss per share in 2019, 2018, and 2017 as their effect would not have been dilutive.

s.	Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection of the amounts is expected in one year or less, they are classified as current assets. The Company’s impairment for trade and other receivables are outlined in note 2(f)(3).

Significant Accounting Estimates and Judgements

12 Months Ended

Dec. 31, 2019

Disclosure of changes in accounting estimates [abstract]

Significant Accounting Estimates and Judgements

NOTE 3-SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Revenue recognition

With respect to the License Agreement (see note 9), the Company used its judgement in the following main issues:

Identifying the performance obligations in the agreement and determining whether the license provided is distinct - based on the Company’s analysis, the license is distinct as the licensee is able to benefit from the license on its own at its current stage (inter alia, due to sublicensing rights, rights and responsibility for development in the territory, etc.).

Allocation of the transaction price - the Company estimated the standalone selling prices of the services to be provided based on expected cost plus a margin and used the residual approach to estimate the standalone selling price of the license as the Company has not yet established a price for the license, and it has not previously been sold on a standalone basis.

Variable consideration consists of potential future milestone payments. The Company determined that all such variable consideration shall be allocated to the license (the satisfied performance obligation).

Share-based payments

With respect to grants to employees, the value of the labor services received from them in return is measured on the date of grant based on the fair value of the equity instruments granted to the employees.

The Company’s management estimates the fair value of the options granted to consultants based on the value of services receivable over the vesting period of the applicable options.

The value of the transactions, measured as aforesaid, is expensed over the period during which the right of the employees and non-employees to exercise or receive the underlying equity instruments vests; commensurate with every periodic recognition of the expense, a corresponding increase is recorded to additional paid in capital, included under the Company’s equity (see also note 11).

Clinical trial accruals

Clinical trial expenses are charged to research and development expense as incurred. The Company accrues for expenses resulting from obligations under contracts with clinical research organizations (CROs). The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided. The Company’s objective is to reflect the appropriate trial expense in the financial statements by matching the appropriate expenses with the period in which services and efforts are expended. As of December 31, 2019, the company had clinical accruals in the amount of approximately $2.0 million.

Lease

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended.

At initial recognition of lease liability, the Company used incremental borrowing rate, which is the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

Financial Risk Management

12 Months Ended

Dec. 31, 2019

Disclosure of nature and extent of risks arising from financial instruments [abstract]

Financial Risk Management

NOTE 4-FINANCIAL RISK MANAGEMENT:

a.	Financial risk management:

1)	Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and price risk), credit and interest risks and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance.

Risk management is performed by the Chief Financial Officer of the Company, who identifies and evaluates financial risks in close cooperation with the Company’s Chief Executive Officer.

The Company’s finance department is responsible for carrying out risk management activities in accordance with policies approved by its Board of Directors. The Board of Directors provides guidelines for overall risk management, as well as policies dealing with specific areas such as exchange rate risk, interest rate risk, credit risk, use of financial instruments, and investment of excess cash. In order to minimize exposure to market risk and credit risk, the Company invested the majority of its cash balances in highly-rated banks.

2)	Credit and interest risk

Credit and interest risk arises from cash and cash equivalents and deposits with banks. A substantial portion of the liquid instruments of the Company are invested in short-term deposits in a leading Israeli bank. The Company estimates that since the liquid instruments are mainly invested for the short-term and with a highly-rated institution, the credit and interest risk associated with these balances is immaterial.

3)	Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities.

Management monitors rolling forecasts of the Company’s liquidity reserve (comprising cash and cash equivalents and deposits). This is generally carried out based on the expected cash flows in accordance with practice and limits set by the management of the Company.

The Company is in a research stage. It is therefore exposed to liquidity risk, taking into consideration the forecasts of cash flows required to finance its investments and other activities.

4)	Market risk-Foreign exchange risk

The Company might be exposed to foreign exchange risk as a result of making payments to employees or service providers and investment of some liquidity in currencies other than the U.S. dollar (the functional currency of the Company). The Company manages the foreign exchange risk by aligning the currencies for holding liquidity with the currencies of expected expenses, based on the expected cash flows of the Company. Had the dollar been stronger by 5% against the New Israeli Shekel (“NIS”), assuming all other variables remained constant, the Company would have recognized an additional expense of $185 thousand, $22 thousand and $51 thousand in profit or loss for the years ended December 31, 2019, 2018 and 2017, respectively.

b.	Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. It should be noted that the Company is in the research and development stage and does not yet generate regular revenue streams. (See also note 1a).

c.	Fair value of financial instruments

The different levels of valuation of financial instruments are defined as follows:

Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	Inputs, other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).

Level 3	Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of financial instruments traded in active markets is based on quoted market prices at the dates of the statements of financial position.

A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

As of December 31, 2019 and 2018, the fair value of financial instruments (cash and cash equivalents, short term bank deposits, other current assets and accounts payable) are approximate to their carrying value.

d.	Composition of monetary balances

The composition of financial instruments by currency:

As of December 31, 2019:

	Dollars		NIS			Pound sterling			Euro & SEK		Total
	U.S. dollars in thousands
Assets:
Cash and cash equivalents	$	8,608	$	637		$	41		$	149	$	9,435
Short term bank deposits		27,100		-			-			-		27,100
Other current assets (except for prepaid expenses)		-		640			-			-		640

		35,708		1,277			41			149		37,175

Liabilities-
Accounts payable and accrued expenses	$	5,467	$	2,032		$	51		$	18	$	7,568
Lease - current and non-current				2,940								2,940

Net assets	$	30,241	$	(3,695	)	$	(10	)	$	131	$	26,667

As of December 31, 2018:

	Dollars		NIS		Pound sterling		Euro & SEK		Total
	U.S. dollars in thousands
Assets:
Cash and cash equivalents	$	26,340	$	2,827	$	95	$	85	$	29,347
Short term bank deposits		21,135		-		-		-		21,135
Other current assets (except for prepaid expenses)		-		521		-		-		521

		47,475		3,348		95		85		51,003

Liabilities-
Accounts payable and accrued expenses	$	1,966	$	2,109	$	-	$	62	$	4,137
Lease - current and non-current				796						796

Net assets	$	45,509	$	443	$	95	$	23	$	46,070

Short-term Bank Deposits

12 Months Ended

Dec. 31, 2019

Short-term Bank Deposits

Short-term Bank Deposits

NOTE 5-SHORT-TERM BANK DEPOSITS:

The bank deposits in 2019 of $27,100 thousand are for terms of four months to one year and carry interest at annual rates of 1.87%-2.15%. The bank deposits in 2018 of $21,135 thousand are for terms of three months to one year and carry interest at annual rates of 2.44%-2.64%.

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, plant and equipment [abstract]

Property and Equipment

NOTE 6-PROPERTY AND EQUIPMENT

Composition of assets, grouped by major classifications, and changes therein is as follows:

	Cost												Accumulated depreciation
	Balance at beginning of year		IFRS 16 reclass			Additions during the year		Disposals during the year			Balance at end of year		Balance at beginning of year		IFRS 16 reclass			Additions during the year		Disposals during the year			Balance at end of year		Net book value
		U.S. dollars in thousands
Year ended December 31, 2019:
Laboratory equipment	$	4,639		(1,120	)	$	28	$			$	3,547	$	1,929	$	(126	)	$	315	$				2,118	$	1,429
Computers		275					16		-			291		204					51		-			255		36
Office furniture and equipment		196					2		-			198		35					15		-			50		148
Leasehold improvements		6,626					27		-			6,653		647					670		-			1,317		5,336

	$	11,736	$	(1,120	)	$	73				$	10,689	$	2,815	$	(126	)	$	1,051	$			$	3,740	$	6,949

Year ended December 31, 2018:
Laboratory equipment	$	3,016				$	1,627	$	(4	)	$	4,639	$	1,501				$	432	$	(4	)	$	1,929	$	2,710
Computers		238					37		-			275		154					50		-			204		71
Office furniture and equipment		111					85		-			196		20					15		-			35		161
Leasehold improvements		5,675					1,251		(300	)		6,626		537					659		(249	)		647		5,979

	$	9,040				$	3,000		(304	)	$	11,736	$	1,912				$	1,156	$	(253	)	$	2,815	$	8,921

	Cost									Accumulated depreciation
	Balance at beginning of year		Additions during the year		Disposals during the year			Balance at end of year		Balance at beginning of year		Additions during the year		Disposals during the year			Balance at end of year		Net book value
	U.S. dollars in thousands
Year ended December 31, 2017:
Laboratory equipment	$	2,024	$	1,186		(194	)	$	3,016	$	1,605	$	90	$	(194	)	$	1,501	$	1,515
Computers		400		95		(257	)		238		368		43		(257	)		154		84
Office furniture and equipment		67		83		(39	)		111		57		2		(39	)		20		91
Leasehold improvements		752		5,233		(310	)		5,675		526		21		(310	)		237		5,438

	$	3,243	$	6,597		(800	)	$	9,040	$	2,556	$	156	$	(800	)	$	1,912	$	7,128

IFRS 16 'Leases'

12 Months Ended

Dec. 31, 2019

Lease liabilities [abstract]

IFRS 16 'Leases'

NOTE 7 - IFRS 16 “Leases”

a.	The Company has adopted IFRS 16 retrospectively from January 1, 2019, but has not restated comparative figures, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new accounting rules are therefore recognized in the statement of financial position at the date of initial application.

b.	On adoption of IFRS 16, the Company recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 “Leases.” These liabilities were measured at the present value of the remaining lease payments including, inter alia, the exercise price of a purchase option if the Company is reasonably certain to exercise that option, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average of lessee’s incremental annual borrowing rate applied to the lease liabilities on January 1, 2019 was 4.1%.

	In applying IFRS 16 for the first time, the Company used the practical expedient permitted by the standard, the accounting for leases with a remaining lease term of less than 12 months as of January 1, 2019, as short-term leases.

	The Company has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date, the Company relied on its assessment made by applying IAS-17 and IFRIC-4 to determining whether an arrangement contains a lease.

c.	From January 1, 2019, the leases are recognized as right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the relative liability and financial cost. The financial cost is charged to profit or loss under “Financial Income, net” over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

	Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments (including in-substance fixed payments) and variable lease payments which are based on an index or a rate. Variable lease payments were not significant for the period.

	The lease payments are discounted using the lessee’s incremental borrowing rate, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

	Right-of-use assets are measured at cost, being the amount of the initial measurement of the lease liability.

d.	In October 2016, the Company entered into lease agreement for a new facility and headquarter. The lease is for 7 years with two options to extend for an additional three years each option. The annual lease consideration is in total amount of $320,000. These agreements are considered as operating leases and presented under operating lease right-of-use assets

	As of December 31, 2019, the Company provided bank guarantees of approximately $500,000, in the aggregate, to secure the fulfillment of its obligations under the lease agreements.

e.	The Company has entered into lease agreements in connection with a number of vehicles. The lease periods are generally for three years.

Lease liabilities:

	Balance at		Additions		Interest expense		Exchange differences		Payments			Balance at
	beginning		during		during		during		during			end of
	of year		year		year		year		year			year
	U.S. dollars in thousands
Composition in 2019
Property	$	3,104		-		118		242		(678	)	$	2,786
Motor vehicles		306		28		6		20		(206	)		154
	$	3,410		28		124		262		(884	)	$	2,940

	As of January 1, 2019		As of December 31, 2019
Right-of-use asset
Properties	$	3,368	$	2,898
Vehicles		353		190
		3,721		3,088

Lease liabilities:
Current		764		774
Non-current		2,646		2,166
	$	3,410	$	2,940

	Year ended December 31, 2019

Depreciation expense:
Properties	$	470
Vehicles		193
		663
Financial expenses		124
Cash paid for amounts included in the measurement of lease liabilities		884
Right of use assets obtained in exchange for new lease liabilities	$	28

The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. Instead, the Company will continue to recognize the lease payments for those leases in profit or loss on a straight-line basis over the lease term. The lease payments, except of interest expenses, are classified in the statements of cash flows as financing activities. Until January 1, 2019, lease payments were classified as operating activities.

The following table sets forth a maturity analysis of the Company’s lease liabilities as of December 31, 2019:

(U.S. dollars in thousands)	December 31, 2019
2020	$	880
2021	$	474
2022	$	356
After 2022	$	1,641
Total undiscounted cash flows	$	3,351

As of December 31, 2019, potential future cash outflows of $1,160 thousand (undiscounted) have not been included in the lease liability because it is not reasonably certain that the leases will be extended.

Severance Pay Obligations, Net

12 Months Ended

Dec. 31, 2019

Classes of employee benefits expense [abstract]

Severance Pay Obligations, Net

NOTE 8-SEVERANCE PAY OBLIGATIONS, net:

a.	The Company has both defined benefit and defined contribution plans.

	The Company has no obligation relating to the defined contribution plans. The obligation under the defined benefit plans is covered partly by regular deposits with severance pay funds and by the purchase of insurance policies.

b.	The Company’s obligation to make pension payments is covered by regular deposits with defined contribution plans. The amounts deposited are not reflected in the statements of financial position.

c.	The amounts recognized in the statements of financial position were as follows:

	Year ended December 31
	2019		2018
	U.S. dollars in thousands
Severance pay obligations	$	487	$	391
Fair value of plan assets		324		292

Liability in the statements of financial position	$	163	$	99

Amounts charged to other comprehensive loss (income) for the years ended December 31, 2019, 2018 and 2017 were $49 thousand, $(25) thousand and $24 thousand, respectively.

The principal actuarial assumptions used for December 31, 2019 and 2018 were as follows:

	2019			2018
Discount rate		1.82	%		3.41	%
Future salary increases		4.0	%		4.0	%

d.	The amounts recorded as an employee benefit expense in respect of defined contribution plans for the years ended December 31, 2019, 2018 and 2017 were $403 thousand, $347 thousand and $318 thousand, respectively.

License and Supply Agreement

12 Months Ended

Dec. 31, 2019

Disclosure of performance obligations [abstract]

License and Supply Agreement

NOTE 9-LICENSE AND SUPPLY AGREEMENT

In November 2017, the Company signed an exclusive license agreement with NanoCarrier Co., Ltd. for the development, commercialization, and supply of VB-111 in Japan. VBL retains rights to VB-111 in the rest of the world (“The License Agreement”). Under terms of the agreement, VBL has granted NanoCarrier an exclusive license to develop and commercialize VB-111 in Japan for all indications. VBL will supply NanoCarrier with VB-111, and NanoCarrier will be responsible for all regulatory and other clinical activities necessary for commercialization in Japan. In exchange, the Company received an up-front nonrefundable payment of $15.0 million, and is entitled to receive greater than $100.0 million additional payments only if certain development or commercial milestones are achieved. VBL will also receive tiered royalties on net sales. In addition, in case NanoCarrier will enter into a sublicense agreement, the Company will be entitled to receive royalties from sublicense income received by NanoCarrier.

As of December 2017, and in accordance with IFRS 15, the Company concluded that it has satisfied the performance obligation for the grant of the license and use of its IP and recognized revenue in the amount of $11.9 million. In addition, upon the commencement of the Ovarian Phase 3 trial milestone, the Company recognized additional variable revenue in the amount of $2.0 million in trade receivables, which was received in January 2018.

In March 2019, the Company entered into exclusive option license agreement (hereafter- Agreement) with an animal health company, for the development of VB-201 for veterinary use. Under the Agreement, the Company granted a right to use intellectual property and transfer materials. In addition, the Company granted an option to obtain an exclusive worldwide, royalty-bearing, transferable license under the Company’s intellectual property and materials to research, develop and sell the product worldwide.

As part of the Agreement, the Company received an immaterial non-refundable and non-creditable upfront payment recognized as revenues during the period. In addition, the Company is entitled to receive an immaterial amount upon the achievement of a milestone event.

The performance obligation relating to the Company’s participation and consulting assistance services during the development period is recognized over the service period. During 2019 and 2018 the Company recognized revenue in an amount of $0.6 million and $0.6 million, respectively related to the Company’s participation and consulting assistance services of VB-111 in Japan for all indications and from the option to license agreement for the development of VB-201 for animal healthcare worldwide. Out of the consideration received in the License Agreement as of December 31, 2019, the Company has deferred revenue in the amount of $2.1 million in 2019 ($0.4 million is classified within current liabilities, and $1.7 million is classified within non-current liabilities, which will be recognized until 2022).

All revenue recognized in 2017 was related to the license and use of the Company’s IP. All revenues recognized in 2018 were related to the Company’s participation and consulting assistance services. Revenues recognized in 2019 were related to the Company’s participation and consulting assistance services from the License Agreement and from the option to license agreement for the development of VB-201 for animal healthcare worldwide. The major part of revenues recognized in 2019 were included in the opening balance of the deferred revenue in the statements of financial position.

Commitments

12 Months Ended

Dec. 31, 2019

Commitments

Commitments

NOTE 10-COMMITMENTS:

a.	In April 2011, the Company executed a Commercial License Agreement with Janssen Vaccines & Prevention B.V. (“ Janssen”), for incorporating the adenovirus 5 in VB-111 and other drug candidates for cancer for consideration including the following potential future payments:

●	an annual license fee of €100 thousand that is linked to Consumer Price Index (in 2019 the Company paid $138 thousand), continuing until the termination of the agreement, which will occur upon (i) the later of the expiration date of the last related patent or 10 years from the first commercial sale of VB-111 or (ii) the termination of the agreement by the Company, which is permitted, upon three months’ written advance notice to Janssen;

●	a milestone payment of €400 thousand ($450 thousand) upon receipt of the first regulatory approval for the marketing of the first indication for each product covered under the agreement; and

●	royalties of 0.5%-2.0% on net sales.

There are no limits or caps on the amount of potential royalties. Pursuant to the agreement, the Company has the right to terminate the agreement by giving Janssen three months’ written notice.

b.	In February 2013, the Company entered into an agreement with Tel Hashomer-Medical Research, Infrastructure and Services Ltd. (“Tel Hashomer”). The agreement with Tel Hashomer provides that the Company will pay 1% of any net sales of any product covered by the intellectual property covered under the agreement and 2% of any consideration received by the Company for granting a license or similar rights to such intellectual property. Such amounts will be recorded as part of the Company’s cost of revenues. In addition, upon the occurrence of an exit event such as a merger, sale of all shares or assets or the closing of an initial public offering such as the IPO, the Company is required to pay to Tel Hashomer 1% of the proceeds received by the Company or its shareholders as the case may be. Royalty and all other payment obligations under this agreement will expire once the Company has paid an aggregate sum of NIS 100 million (approximately $29 million) to Tel Hashomer by way of pay out, exit proceeds and licensing consideration. Amounts previously paid as royalties on any net sales will not be taken into account when calculating this aggregate sum. Amounts payable upon occurrence of an exit event is not considered to be probable until actual occurrence. Upon occurrence of such event, as such event does not represent a substantive milestone with regard to the Company’s intellectual property, the amount to be paid is recorded in the Statement of loss and comprehensive loss under research and development costs.

	Until December 31, 2019, the Company paid Tel Hashomer a total amount of $742 thousand in consideration for the payments received for granting the licenses or similar rights to this intellectual property.

c.	The Company is committed to pay royalties to the Government of Israel on proceeds from sales of products in the research and development of which the Government participates by way of grants. At time the grants were received, successful development of the related project was not assumed. In the case of failure of the project that was partly financed by the Government of Israel, the Company is not obligated to pay any such royalties. Under the terms of the Company’s funding from the Israeli Government, royalties of 3%-3.5% are payable on sales of products developed from projects so funded up to 100% of the amount of the grant received by the Company (dollar linked) with the addition of an annual interest based on Libor. As of December 31, 2019, the total additional royalty amount that may be payable by the Company, before the additional Libor interest, is approximately $26.9 million ($33.4 million including interest). To date, the Company has paid the IIA in relation to its licenses agreement royalties of approximately $0.5 million.

	In addition, under the Research Law, we are prohibited from transferring, including by way of license, the IIA-financed technologies and related intellectual property rights and know-how outside of the State of Israel, except under limited circumstances and only with the approval of the IIA Research Committee. We may not receive the required approvals for any proposed transfer and, even if received, we may be required to pay the IIA a portion of the consideration that we receive upon any sale of such technology to a non-Israeli entity up to 600% of the grant amounts plus interest.

d.	The Company entered into agreements with Contract Research Organizations (“CROs”) according to which it will receive project management, clinical development and other related services from the CROs for the execution of the Phase 3 study in platinum-resistant ovarian cancer in consideration for approximately $36.8 million. Through December 31, 2019, expenses in the total amount of $7.5 million were incurred.

Share Capital

12 Months Ended

Dec. 31, 2019

Disclosure of classes of share capital [abstract]

Share Capital

NOTE 11-SHARE CAPITAL:

a.	Composed of shares of NIS 0.01 par value, as follows:

	Number of shares
	December 31
	2019		2018
Authorized:
Ordinary Shares		70,000,000		70,000,000

Issued:
Ordinary Shares (1)		35,882,928		35,881,128

(1)

b.	On November 16, 2017, the Company entered into an underwriting agreement with Piper Jaffray & Co. related to the underwritten offering of an aggregate of 2,500,000 ordinary shares, NIS 0.01 par value (the “Ordinary Shares”). The public offering price for each Ordinary Share was $7.50. The purchase price to be paid by the underwriters to the Company for each Ordinary Share was $7.20. The net proceeds from the sale of the Ordinary Shares, which closed on November 21, 2017, was approximately $17.9 million after deducting underwriting discounts and commissions and estimated offering expenses.

c.	On June 25, 2018, the Company entered into securities purchase agreements related to the registered direct offering of an aggregate of 5,904,762 ordinary shares, NIS 0.01 par value, at a purchase price of $2.50 per share and accompanying short-term warrants to purchase up to 2,952,381 ordinary shares and long-term warrants to purchase up to 2,952,381 ordinary shares at an additional purchase price per warrant combination of $0.125. The combined offering price of each ordinary share and accompanying warrants is $2.625 per unit for aggregate gross proceeds of approximately $15.5 million. The ordinary shares and the warrants are immediately separable and were issued separately. The net proceeds from this offering, which closed on June 27, 2018 were $13.7 million after deducting the underwriting discounts and commissions and offering costs payable by the Company. The short-term and long-term warrants are exercisable immediately after issuance and will expire on January 6, 2020 and June 26, 2022, respectively at an exercise price of $2.51 and $3.00 per one ordinary share, respectively. The fair value of the separable warrants on the date of purchase was computed using the Black-Scholes model. The underlying data used for computing the fair value of the short-term and long-term warrants are mainly as follows: ordinary share price based on the share’s price at the stock market on June 25, 2018: $2.40; expected volatility based on Company historical trade: 88.0% and 109%; risk-free interest rate: 2.279% and 2.715% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the warrants); expected dividend: zero; and expected life to exercise of 1.5 years and 4.0 years, respectively. The consideration was allocated between ordinary shares and warrants based on the ratio of the warrants’ fair value and the ordinary share price.

d.	On May 17, 2019, the Company entered into an Equity Distribution Agreement dated May 17, 2019 with Oppenheimer & Co. Inc., or Oppenheimer to offer and sell from time to time its ordinary shares, NIS 0.01 par value, having an aggregate offering price of up to $15,000,000 through Oppenheimer acting as its agent and/or principal. For the year ended December 31, 2019, the Company sold an aggregate of 1,800 ordinary shares under its at-the-market equity facility. The total consideration amounted to $2 thousand, net of issuance costs.

e.	Share based compensation plans

In February 2000, the Company’s board of directors approved an option plan (the “Plan”) as amended through 2008. Under the Plan, the Company reserved up to 1,423,606 Ordinary Shares of NIS 0.01 par value of the Company for allocation to employees and non-employees. Each option is exercisable to acquire one Ordinary Share.

In April 2011, the Company’s board of directors approved a new option plan (the “New Plan”). Under the New Plan, the Company reserved up to 766,958 Ordinary Shares (of which 159,458 Ordinary Shares shall be taken from the unallocated pool reserved under the Plan) for allocation to employees and non-employees.

In September 2014, the Company’s shareholders approved the adoption of the Employee Share Ownership and Option Plan (2014) (“2014 Plan”) effective as of the closing of the public offering. Under the 2014 Plan, the Company reserved up to 928,000 Ordinary Shares (of which 28,000 Ordinary Shares shall be taken from the unallocated pool reserved under the New Plan). The Ordinary Shares to be issued upon exercise of the options confer the same rights as the other Ordinary Shares of the Company, immediately upon allotment. Any option granted under the Plan that is not exercised within ten years from the date upon which it becomes exercisable, will expire. Any option which was granted under the New Plan, and was not exercised within twenty years from the date when it becomes exercisable, will expire.

Option exercise prices and vesting periods shall be as determined by the board of directors of the Company on the date of the grant.

The options are subject to the terms stipulated by section 102(b)(2) of the Ordinance. According to these provisions, the Company will not be allowed to claim as an expense for tax purposes the amounts credited to the employees as a capital gain benefit in respect of the options granted.

Options granted to related parties or non-employees of the Company are governed by Section 3(i) of the Ordinance. The Company will be allowed to claim as an expense for tax purposes the amounts equal to the expenses it recorded in the financial statements in the year in which the related parties or non-employees exercised the options into shares.

The Company adopted the “evergreen” mechanism for the ESOP, an annual automatic increase of the number of shares available for issuance at the commencement of each year, such that the number of underlying securities shall equal 4% of the Company’s issued and outstanding share capital on a fully diluted basis.

In March 2017, the Board of Directors ratified accordingly the increase of 1,027,911 Ordinary Shares to the number of shares available for issuance under the 2014 Plan.

In January 2018, the Board of Directors ratified accordingly the increase of 1,402,385 Ordinary Shares to the number of shares available for issuance under the 2014 Plan.

In March 2019, the Board of Directors ratified accordingly the increase to 1,930,305 Ordinary Shares to the number of shares available for the issuance under the 2014 Plan.

Options and Restricted Stock Units (“RSUs”) granted in 2017:

	Number of options granted according to option plan of the Company						Exercise price per Ordinary		The fair value of options on date
Date of grant	Other than directors		To directors		Total		Share ($)		of grant (in thousands)
1) February 2017		-		20,000		20,000	$	5.22	$	100
2) March 2017		10,000		-		10,000	$	5.43	$	30
3) March 2017		-		65,000		65,000	$	5.71	$	337
4) June 2017		100,000		-		100,000	$	5.39	$	437
5) June 2017		36,000		-		36,000		$	$	175
6) October 2017		700,000		-		700,000	$	5.99	$	4,113
7) October 2017		140,000		-		140,000		$	$	903

1)	20,000 options were allocated to two independent directors of the Company:

a.	The options will vest over 3 years from the date of grant; 1/12 of the options at the end of each quarter in the course of the 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.22, fair value of these options was estimated at $100 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.41% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

2)	10,000 options were allocated to a Consultant:

a.	The options will vest over 3 years.

b.	Company management estimates the fair value of the options granted to consultants based on the value of services received over the vesting period of the applicable options. The value of such services is estimated based on the additional cash compensation the Company would need to pay if such options were not granted. The fair value of these options on the date of grant was approximately $30 thousand.

3)	65,000 options were allocated to four independent directors of the Company:

a.	The options will vest by 4 years with 50% on the second year anniversary; the remaining 50% at 1/8 of the options at the end of each quarter over the course of the last 2 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.71, fair value of these options was estimated at $337 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.44% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

4)	100,000 options was allocated to an officer of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.39, fair value of these options was estimated at $437 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.15% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

5)	36,000 restricted stock units (“RSUs”) were allocated to an officer of the Company:

a.	The RSUs vesting period is dependent on the achievement of certain clinical performance milestones.

b.	The fair value of these RSUs on the date of grant was approximately $175 thousand, using the quoted closing market share price of $4.85 on the Nasdaq Global Market.

6)	700,000 options were allocated to employees and officers of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.99, fair value of these options was estimated at $4,113 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.41% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

7)	140,000 RSUs were allocated to officers of the Company:

a.	The RSUs vesting period is dependent on the achievement of certain clinical performance milestones.

b.	The fair value of these RSUs on the date of grant was approximately $903 thousand, using the quoted closing market share price of $6.45 on the Nasdaq Global Market.

Options granted in 2018:

	Number of options granted according to option plan of the Company						Exercise price per Ordinary		The fair value of options on date
Date of grant	Other than directors		To directors		Total		Share ($)		of grant (in thousands)
1) January 2018		-		128,000		128,000	$	6.9	$	838,470
2) June 2018		50,000		-		50,000	$	2.22	$	119,264
3) September 2018		-		30,000		30,000	$	1.78	$	45,574
4) December 2018		935,000		370,000		1,305,000	$	1.22	$	1,299,867

1)	128,000 options were allocated to independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $6.90, fair value of these options was estimated at $838 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.46% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

2)	50,000 options were allocated to officer of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $2.22, fair value of these options was estimated at $119 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.93% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.
3)	30,000 options were allocated to independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $1.78, fair value of these options was estimated at $46 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.85% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

4)	1,305,000 options were allocated to employees, officers and independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $1.22, fair value of these options was estimated at $1,300 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 100.0%; risk-free interest rate: 2.86% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

Options granted in 2019:

	Number of options granted according to option plan of the Company						Exercise price per Ordinary		The fair value of options on date
Date of grant	Other than directors		To directors		Total		Share ($)		of grant (in thousands)
1) December 2019		1,006,000		340,000		1,346,000	$	1.22	$	1,410,901

1)	1,346,000 options were allocated to employees, officers and independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $1.22, fair value of these options was estimated at $1,411 thousand with expected volatility 100.0%; risk-free interest rate: 1.91% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

h.	Changes in the number of options and RSUs and weighted average exercise prices are as follows:

	Year ended December 31
	2019					2018					2017
	Number of options			Weighted average exercise price		Number of options			Weighted average exercise price		Number of options			Weighted average exercise price
Outstanding at beginning of year		5,056,914		$	3.36		4,036,095		$	3.88		3,241,535		$	3.41
Granted		1,346,000			1.22		1,513,000			1.74		1,071,000			4.91
Exercised		-			-		(97,042	)		0.33		(252,343	)		1.91
Forfeited		(29,583	)		3.30		(395,140	)		3.31		(24,097	)		4.18

Outstanding at end of year (1)		6,373,331		$	2.91		5,056,914		$	3.36		4,036,095		$	3.88

Exercisable at end of year		3,294,647		$	3.73		2,478,796		$	3.70		1,844,283		$	2.97

(1)

Out of which number of RSUs 102,334, 114,668 and 334,087 for the years ended December 31, 2019, 2018 and 2017, respectively.

i.	The following is information about exercise price and remaining contractual life of outstanding options and RSUs at year-end:

December 31, 2019						December 31, 2018						December 31, 2017
Number of options outstanding at end of year		Exercise price		Weighted average of remaining contractual life		Number of options outstanding at end of year		Exercise Price		Weighted average of remaining contractual life		Number of options outstanding at end of year		Exercise price		Weighted average of remaining contractual life

	509,176	$	0.002		10.88		521,509	$	0.002		11.34		758,928	$	0.002		8.29
	72,990	$	1.21		4.72		72,990	$	1.21		5.72		98,657	$	1.21		6.78
	3,244,969	$	1.22-$2.47		30.38		1,898,969	$	1.22-$2.47		15.54		513,969	$	2.47		10.45
	559,871	$	3.30 - $3.48		12.96		559,871	$	3.30 - $3.48		13.96		584,871	$	3.30 - $ 3.48		14.96
	60,000	$	6.03		15.13		60,000	$	6.03		16.13		60,000	$	6.03		17.13
	116,000		6.9		18.02		116,000	$	6.9		19.2

	372,470	$	7.52		15.88		372,470	$	7.52		16.88		409,670	$	7.52		17.88
	1,437,855	$	5.08 - $ 5.99		17.36		1,455,105	$	5.08 - $ 5.99		18.38		1,610,000	$	5.08-$5.99		19.38

	6,373,331						5,056,914						4,036,095

j.	Expenses for share based compensation recognized in statements of loss and comprehensive loss were as follows:

	Year ended December 31
	2019		2018		2017
	U.S. dollars in thousands
Research and development expenses	$	1,236	$	2,255	$	2,027
Administrative and general expenses		1,015		1,541		1,977
Marketing expenses		-		71		148

	$	2,251	$	3,867	$	4,152

The remaining unrecognized compensation expenses as of December 31, 2019 are $2,585 thousand; The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.5 year.

Taxes on Income

12 Months Ended

Dec. 31, 2019

Major components of tax expense (income) [abstract]

Taxes on Income

NOTE 12-TAXES ON INCOME

The Company is taxed according to Israeli tax laws:

a.	Measurement of results for tax purposes

The Company as a “foreign-investment company” measures its results for tax purposes in dollar based on Income Tax Regulations (Bookkeeping Principles of Foreign Invested Companies and of Certain Partnerships and the Determination of Their Taxable Income), 1986.

b.	Tax rates

The income of the Company, other than income from Benefitted Enterprises (see c below), is subject to the regular corporate tax rate. Israeli corporate tax rates for 2019, 2018, and 2017 were 23%, 23%, and 24%, respectively.

c.	Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”)

Under the Investment Law, including Amendment No. 60 to the Investment Law that was published in April 2005, by virtue of the Benefited Enterprise program for certain of its production facilities, the Company may be entitled to various tax benefits.

The main benefit arising from such status is the reduction in tax rates on income derived from a Benefited Enterprise. The extent of such benefits depends on the location of the enterprise. Since the Company’s facilities are not located in “national development zone A,” income derived from Benefited Enterprises will be tax exempt for a period of two years and then have a reduced tax rate for a period of up to an additional eight years.

The period of tax benefits, as described above, is limited to 12 years from the beginning of the Benefited Enterprise election year (2012). As of December 31, 2019, the period of benefits has not yet commenced.

In the event of distribution or deemed distribution of dividends from income which was tax exempt as above, the amount distributed will be subject to the tax rate it was exempted from.

The Company is entitled to claim accelerated depreciation in respect of equipment used by the approved enterprises during five tax years.

Entitlement to the above benefits is conditioned upon the Company fulfilling the conditions stipulated by the Investment Law and regulations published thereunder.

In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to apply the regular tax depreciation rates and pay tax on the income in question at the regular corporate tax rates with the addition of linkage differences to the Israeli consumer price index and interest.

The Investment Law was amended as part of the Economic Policy Law for the years 2011-2012 (the “Amendment”), which became effective on January 1, 2011.

The Amendment sets alternative benefit tracks to the ones currently in place under the provisions of the Investment Law, including a reduced corporate tax rate. Tax rate for “Preferred Enterprise” income of companies not located in national development zone A is 16% for fiscal year 2014 and thereafter.

The benefits are granted to companies that qualify under criteria set forth in the Investment Law; for the most part, those criteria are similar to the criteria that have existed in the Investment Law prior to its amendment and the benefit period is unlimited in time. However, in accordance with the Amendment, the classification of licensing income as Preferred income may be subject to the issuance of a pre-ruling by the Israel Tax Authority.

Under the transitional provisions of the Investment Law, a company is allowed to continue to enjoy the tax benefits available under the Investment Law prior to its amendment until the end of the period of benefits, as defined in the Investment Law.

In each year during the period of benefits of its Benefited Enterprise, the Company will be able to opt for application of the Amendment, thereby making available to itself the tax rate described above. The Company’s election to apply the Amendment is irrevocable.

As of December 31, 2019, the Company’s management decided not to adopt the application of the Amendment.

There is no assurance that future taxable income of the Company will qualify as Benefited or Preferred income or that the benefits described above will be available to the Company in the future.

d.	Losses for tax purposes carried forward to future years

The balance of carry forward losses as of December 31, 2019 and 2018 are $181.1 million and $164.9 million, respectively.

Under Israeli tax laws, carryforward tax losses have no expiration date.

Deferred tax assets on losses for tax purposes carried forward to subsequent years are recognized if utilization of the related tax benefit against a future taxable income is expected.

The Company has not created deferred taxes on its carry forward losses since their utilization is not expected in the foreseeable future.

e.	Tax assessments

The Company has tax assessments that are considered to be final through tax year 2014.

Supplementary Financial Information

12 Months Ended

Dec. 31, 2019

Subclassifications of assets, liabilities and equities [abstract]

Supplementary Financial Information

NOTE 13-SUPPLEMENTARY FINANCIAL INFORMATION:

	December 31
	2019		2018
	U.S. dollars in thousands
a. Other current assets:
Institutions - VAT	$	205	$	287
Prepaid expenses		602		706
Government grants receivable		424		234
Other		10		-

	$	1,241	$	1,227

b. Accounts payable-other:
Accrued expenses	$	3,712	$	2,434
Employee-related accrued expenses		309		281
Provision for vacation		217		229
	$	4,238	$	2,944

	Year ended December 31
	2019			2018			2017
	U.S. dollars in thousands
c. Research and development expenses, net:
Payroll and related expenses	$	4,407		$	5,182		$	4,636
Subcontractors and consultation		9,249			7,158			12,450
Materials		998			1,681			768
Patent expenses		764			780			797
Depreciation		1,580			1,086			106
Office rent and maintenance		750			1,364			721
Other		423			704			481

		18,171			17,955			19,959
Government grants (see note 10c)		(2,701	)		(2,015	)		(2,189	)

	$	15,470		$	15,940		$	17,770

d. Administrative and general expenses:
Payroll and related expenses	$	1,775		$	1,838		$	2,681
Management and professional fees		2,141			2,131			2,212
Foreign travel		175			340			279
Depreciation		115			70			50
Other		737			841			625

	$	4,943		$	5,220		$	5,847

e. Marketing expenses
Payroll and related expenses	$	-			355			346
Consultation		-			42			216

	$	-			397			562

Loss Per Share

12 Months Ended

Dec. 31, 2019

LOSS PER ORDINARY SHARE

Loss Per Share

NOTE 14-LOSS PER SHARE

Basic and diluted loss per share:

Basic

Basic loss per share is calculated by dividing the result attributable to equity holders of the Company by the weighted average number of Ordinary Shares in issue during the year.

Diluted

All Ordinary Shares underlying outstanding options, RSUs and warrants have been excluded from the calculation of the diluted loss per share for the years ended December 31, 2019, 2018 and 2017 since their effect was anti-dilutive. The total number of options, RSUs and warrants excluded from the calculations of diluted loss per share were – 13,528,092, 12,211,676, and 5,286,095 for the years ended December 31, 2019, 2018 and 2017, respectively.

	Year ended December 31
	2019		2018		2017
	U.S. dollars in thousands, except per share data
Basic and diluted:
Loss attributable to equity holders of the Company	$	19,457	$	20,458	$	10,138

Weighted average number of ordinary shares in issue		35,881,256		32,969,094		27,398,169

Loss per ordinary share	$	0.54	$	0.62	$	0.37

Financial (Income) Expenses, Net

12 Months Ended

Dec. 31, 2019

Analysis of income and expense [abstract]

Financial (Income) Expenses, Net

NOTE 15-FINANCIAL (INCOME) EXPENSES, net:

	Year ended December 31
	2019			2018			2017
				U.S. dollars in thousands
Financial income:
Interest from deposits	$	870		$	908		$	335
Exchange differences		-			-			209

		870			908			544

Financial expenses:
Bank fees		27			37			27
Exchange differences		162			122			-
Interest expenses for lease liabilities		124			-			-

		(313	)		(159	)		(27	)

TOTAL FINANCIAL INCOME, net	$	557		$	749		$	517

Related Parties-Transactions and Balances

12 Months Ended

Dec. 31, 2019

NOTE 16-RELATED PARTIES-TRANSACTIONS AND BALANCES:

a.	Transactions with related parties

Key management personnel include members of the Board of Directors, the Chief Executive Officer and all Vice Presidents of the Company and companies controlled by them.

	Year ended December 31
	2019		2018		2017
	U.S. dollars in thousands

Key management compensation:
Labor cost and related expenses	$	2,253	$	2,267	$	2,202
Share-based payments		1,291		1,866		2,075
Other		352		427		406

	$	3,896	$	4,560	$	4,683

b.	Balances with related parties:

	December 31
	2019		2018
	U.S. dollars in Thousands
Key management-
Payables and accrued expenses - for salary and related expenses	$	511	$	484

Severance pay obligations	$	103	$	76

Provision for vacation	$	102	$	116

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Disclosure of initial application of standards or interpretations [abstract]

Basis of Preparation of the Financial Statements

a.	Basis of preparation of the financial statements

The significant accounting policies described below have been applied consistently in relation to all the periods presented, unless otherwise stated.

The financial statements have been prepared under the historical cost convention except of severance pay obligation, net.

Actual results could differ from those estimates and assumptions.

Functional and Presentation Currency

b.	Functional and presentation currency:

1)	Functional and presentation currency

2)	Transactions and balances

All foreign exchange gains and losses are presented in the statements of loss and comprehensive loss within financial income or expenses.

Cash and Cash Equivalents

c.	Cash and cash equivalents

Property and Equipment

d.	Property and equipment:

1)	All property and equipment (including leasehold improvements) are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditures that are directly attributable to the acquisition of the items.

Repairs and maintenance are charged to the income statement during the period in which they are incurred.

2)	The assets are depreciated using the straight-line method to allocate their cost over their estimated useful lives as follows:

	%
Laboratory equipment		9-15
Computers		25-33
Office furniture and equipment		7

Leasehold improvements are depreciated using the straight-line method over the shorter of the term of the lease or the estimated useful life of the improvements.

3)	Gains and losses on disposals are determined by comparing proceeds with the associated carrying amount. These are included in the statements of loss and comprehensive loss.

Impairment of Non-Financial Assets

e.	Impairment of non-financial assets

For the years ended December 31, 2019, 2018 and 2017, no impairment has been recognized.

Financial Assets

f.	Financial assets:

As of January 1, 2018, the Company adopted IFRS 9 “Financial Instruments”.

1)	Classification

Financial assets at amortized cost of the Company are included in trade receivables, other current assets and short term bank deposits in the Statements of Financial Position.

2)	Recognition and measurement

At initial recognition, the Company measures a financial asset at amortized cost at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.

3)	Impairment

For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Financial Liabilities

g.	Financial liabilities:

Accounts payable

Share Capital

h.	Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are included in equity as a deduction from the proceeds.

Deferred Income Tax

i.	Deferred income tax

Deferred taxes are recognized using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Due to absence of expectation of taxable income in the future, no deferred tax assets have been recorded in the Company’s financial statements.

Employee Benefits

j.	Employee benefits:

1)	Post employment benefit obligation

2)	Vacation and recreation pay

Share-Based Payments

k.	Share-based payments

1)	Share based payments to employees and directors by reference to the fair value of the options and RSUs granted at date of grant.

2)	Share based payments to service providers by reference to the fair value of the service provided.

When options are exercised, the Company issues new shares, with proceeds less directly attributable transaction costs recognized as share capital (par value) and additional paid in capital.

Provisions

l.	Provisions

For the years ended December 31, 2019 and 2018, no provisions have been recognized.

Revenue from Contracts with Customers

m.	Revenue from contracts with customers

General

In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under each of its agreements, the Company performs the following steps:

1.	identify the contract with a customer;
2.	identify the performance obligations in the contract;
3.	determine the transaction price;
4.	allocate the transaction price to the performance obligations in the contract;
5.	recognize revenue when (or as) the entity satisfies a performance obligation.

Revenues from licensing agreement

The transaction price contains variable considerations contingent upon the licensee achieving certain milestones, as well as sales-based royalties, in accordance with the relevant agreement.

Research and Development Expenses

n.	Research and development expenses

Research expenses are charged to profit or loss as incurred. An intangible asset arising from development of the Company’s products is recognized if all of the following conditions are met:

	●	It is technically feasible to complete the intangible asset so that it will be available for use;

	●	Management intends to complete the intangible asset and use it or sell it;

	●	There is an ability to use or sell the intangible asset;

	●	It can be demonstrated how the intangible asset will generate probable future economic benefits;

	●	Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available;

	●	Costs associated with the intangible asset during development can be measured reliably.

As of December 31, 2019, the Company has not yet capitalized any development costs.

Government Grants

o.	Government grants

Lease

Lease

Commencing January 1, 2019, the Company accounts for leases in accordance with International Financial Reporting Standard No. 16 “Leases” (“IFRS 16”).

Simultaneously, the Company recognizes a right-of-use asset in the amount of the lease liability and did not have an effect on accumulated deficits as of January 1, 2019.

Assets are depreciated by the straight-line method over the estimated useful lives of the right of use assets or the lease period, which is shorter:

	Years

Property		8
Motor vehicles		3

For information regarding the initial implementation of IFRS 16, effective January 1, 2019, see Note 7.

Measurement of lease liability as of January 1, 2019:

	U.S. dollars in thousands
Operating lease commitments (undiscounted) disclosed as of December 31, 2018	$	2,100
Discounted using the lessee’s incremental borrowing rate of at the date of initial application		1,808
Add: finance lease liabilities recognized as of December 31, 2018		796
Add: adjustments as a result of a different treatment of extension and termination options		806
Lease liability recognized as of January 1, 2019	$	3,410

Segment Reporting

q.	Segment reporting

Loss Per Ordinary Share

r.	Loss per Ordinary Share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of Ordinary Shares issued and outstanding during the year.

The diluted loss per share is calculated by adjusting the weighted average number of outstanding Ordinary Shares, assuming conversion of all dilutive potential shares.

The Company’s dilutive potential shares consist of options and RSUs granted to employees and service providers and warrants.

The dilutive potential shares were not taken into account in computing loss per share in 2019, 2018, and 2017 as their effect would not have been dilutive.

Trade Receivables

s.	Trade receivables

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of initial application of standards or interpretations [abstract]

Schedule of Annual Rates of Depreciation

The assets are depreciated using the straight-line method to allocate their cost over their estimated useful lives as follows:

	%
Laboratory equipment		9-15
Computers		25-33
Office furniture and equipment		7

Schedule of Estimated Useful Lives Right of Use Assets Lease Period

Assets are depreciated by the straight-line method over the estimated useful lives of the right of use assets or the lease period, which is shorter:

	Years

Property		8
Motor vehicles		3

Schedule of Measurement of Lease Liability

Measurement of lease liability as of January 1, 2019:

	U.S. dollars in thousands
Operating lease commitments (undiscounted) disclosed as of December 31, 2018	$	2,100
Discounted using the lessee’s incremental borrowing rate of at the date of initial application		1,808
Add: finance lease liabilities recognized as of December 31, 2018		796
Add: adjustments as a result of a different treatment of extension and termination options		806
Lease liability recognized as of January 1, 2019	$	3,410

Financial Risk Management (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of nature and extent of risks arising from financial instruments [abstract]

Schedule of Composition of Financial Instruments by Currency

The composition of financial instruments by currency:

As of December 31, 2019:

	Dollars		NIS			Pound sterling			Euro & SEK		Total
	U.S. dollars in thousands
Assets:
Cash and cash equivalents	$	8,608	$	637		$	41		$	149	$	9,435
Short term bank deposits		27,100		-			-			-		27,100
Other current assets (except for prepaid expenses)		-		640			-			-		640

		35,708		1,277			41			149		37,175

Liabilities-
Accounts payable and accrued expenses	$	5,467	$	2,032		$	51		$	18	$	7,568
Lease - current and non-current				2,940								2,940

Net assets	$	30,241	$	(3,695	)	$	(10	)	$	131	$	26,667

As of December 31, 2018:

	Dollars		NIS		Pound sterling		Euro & SEK		Total
	U.S. dollars in thousands
Assets:
Cash and cash equivalents	$	26,340	$	2,827	$	95	$	85	$	29,347
Short term bank deposits		21,135		-		-		-		21,135
Other current assets (except for prepaid expenses)		-		521		-		-		521

		47,475		3,348		95		85		51,003

Liabilities-
Accounts payable and accrued expenses	$	1,966	$	2,109	$	-	$	62	$	4,137
Lease - current and non-current				796						796

Net assets	$	45,509	$	443	$	95	$	23	$	46,070

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, plant and equipment [abstract]

Schedule of Composition of Assets Grouped by Major Classifications

Composition of assets, grouped by major classifications, and changes therein is as follows:

	Cost												Accumulated depreciation
	Balance at beginning of year		IFRS 16 reclass			Additions during the year		Disposals during the year			Balance at end of year		Balance at beginning of year		IFRS 16 reclass			Additions during the year		Disposals during the year			Balance at end of year		Net book value
		U.S. dollars in thousands
Year ended December 31, 2019:
Laboratory equipment	$	4,639		(1,120	)	$	28	$			$	3,547	$	1,929	$	(126	)	$	315	$				2,118	$	1,429
Computers		275					16		-			291		204					51		-			255		36
Office furniture and equipment		196					2		-			198		35					15		-			50		148
Leasehold improvements		6,626					27		-			6,653		647					670		-			1,317		5,336

	$	11,736	$	(1,120	)	$	73				$	10,689	$	2,815	$	(126	)	$	1,051	$			$	3,740	$	6,949

Year ended December 31, 2018:
Laboratory equipment	$	3,016				$	1,627	$	(4	)	$	4,639	$	1,501				$	432	$	(4	)	$	1,929	$	2,710
Computers		238					37		-			275		154					50		-			204		71
Office furniture and equipment		111					85		-			196		20					15		-			35		161
Leasehold improvements		5,675					1,251		(300	)		6,626		537					659		(249	)		647		5,979

	$	9,040				$	3,000		(304	)	$	11,736	$	1,912				$	1,156	$	(253	)	$	2,815	$	8,921

	Cost									Accumulated depreciation
	Balance at beginning of year		Additions during the year		Disposals during the year			Balance at end of year		Balance at beginning of year		Additions during the year		Disposals during the year			Balance at end of year		Net book value
	U.S. dollars in thousands
Year ended December 31, 2017:
Laboratory equipment	$	2,024	$	1,186		(194	)	$	3,016	$	1,605	$	90	$	(194	)	$	1,501	$	1,515
Computers		400		95		(257	)		238		368		43		(257	)		154		84
Office furniture and equipment		67		83		(39	)		111		57		2		(39	)		20		91
Leasehold improvements		752		5,233		(310	)		5,675		526		21		(310	)		237		5,438

	$	3,243	$	6,597		(800	)	$	9,040	$	2,556	$	156	$	(800	)	$	1,912	$	7,128

IFRS 16 'Leases' (Tables)

12 Months Ended

Dec. 31, 2019

Lease liabilities [abstract]

Schedule of Lease Liabilities

Lease liabilities:

	Balance at		Additions		Interest expense		Exchange differences		Payments			Balance at
	beginning		during		during		during		during			end of
	of year		year		year		year		year			year
	U.S. dollars in thousands
Composition in 2019
Property	$	3,104		-		118		242		(678	)	$	2,786
Motor vehicles		306		28		6		20		(206	)		154
	$	3,410		28		124		262		(884	)	$	2,940

Schedule of Right of Use Asset and Lease Liabilities

	As of January 1, 2019		As of December 31, 2019
Right-of-use asset
Properties	$	3,368	$	2,898
Vehicles		353		190
		3,721		3,088

Lease liabilities:
Current		764		774
Non-current		2,646		2,166
	$	3,410	$	2,940

	Year ended December 31, 2019

Depreciation expense:
Properties	$	470
Vehicles		193
		663
Financial expenses		124
Cash paid for amounts included in the measurement of lease liabilities		884
Right of use assets obtained in exchange for new lease liabilities	$	28

Schedule of Maturity Analysis Lease Liabilities

The following table sets forth a maturity analysis of the Company’s lease liabilities as of December 31, 2019:

(U.S. dollars in thousands)	December 31, 2019
2020	$	880
2021	$	474
2022	$	356
After 2022	$	1,641
Total undiscounted cash flows	$	3,351

Severance Pay Obligations, Net (Tables)

12 Months Ended

Dec. 31, 2019

Classes of employee benefits expense [abstract]

Schedule of Amounts Recognized in the Statements of Financial Position

The amounts recognized in the statements of financial position were as follows:

	Year ended December 31
	2019		2018
	U.S. dollars in thousands
Severance pay obligations	$	487	$	391
Fair value of plan assets		324		292

Liability in the statements of financial position	$	163	$	99

Schedule of Principal Actuarial Assumptions

The principal actuarial assumptions used for December 31, 2019 and 2018 were as follows:

	2019			2018
Discount rate		1.82	%		3.41	%
Future salary increases		4.0	%		4.0	%

Share Capital (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of classes of share capital [abstract]

Schedule of Composed of Shares

Composed of shares of NIS 0.01 par value, as follows:

	Number of shares
	December 31
	2019		2018
Authorized:
Ordinary Shares		70,000,000		70,000,000

Issued:
Ordinary Shares (1)		35,882,928		35,881,128

(1)

Schedule of Stock Option Activity

Options and Restricted Stock Units (“RSUs”) granted in 2017:

	Number of options granted according to option plan of the Company						Exercise price per Ordinary		The fair value of options on date
Date of grant	Other than directors		To directors		Total		Share ($)		of grant (in thousands)
1) February 2017		-		20,000		20,000	$	5.22	$	100
2) March 2017		10,000		-		10,000	$	5.43	$	30
3) March 2017		-		65,000		65,000	$	5.71	$	337
4) June 2017		100,000		-		100,000	$	5.39	$	437
5) June 2017		36,000		-		36,000		$	$	175
6) October 2017		700,000		-		700,000	$	5.99	$	4,113
7) October 2017		140,000		-		140,000		$	$	903

1)	20,000 options were allocated to two independent directors of the Company:

a.	The options will vest over 3 years from the date of grant; 1/12 of the options at the end of each quarter in the course of the 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.22, fair value of these options was estimated at $100 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.41% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

2)	10,000 options were allocated to a Consultant:

a.	The options will vest over 3 years.

b.	Company management estimates the fair value of the options granted to consultants based on the value of services received over the vesting period of the applicable options. The value of such services is estimated based on the additional cash compensation the Company would need to pay if such options were not granted. The fair value of these options on the date of grant was approximately $30 thousand.

3)	65,000 options were allocated to four independent directors of the Company:

a.	The options will vest by 4 years with 50% on the second year anniversary; the remaining 50% at 1/8 of the options at the end of each quarter over the course of the last 2 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.71, fair value of these options was estimated at $337 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.44% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

4)	100,000 options was allocated to an officer of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.39, fair value of these options was estimated at $437 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.15% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

5)	36,000 restricted stock units (“RSUs”) were allocated to an officer of the Company:

a.	The RSUs vesting period is dependent on the achievement of certain clinical performance milestones.

b.	The fair value of these RSUs on the date of grant was approximately $175 thousand, using the quoted closing market share price of $4.85 on the Nasdaq Global Market.

6)	700,000 options were allocated to employees and officers of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $5.99, fair value of these options was estimated at $4,113 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.41% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

7)	140,000 RSUs were allocated to officers of the Company:

a.	The RSUs vesting period is dependent on the achievement of certain clinical performance milestones.

b.	The fair value of these RSUs on the date of grant was approximately $903 thousand, using the quoted closing market share price of $6.45 on the Nasdaq Global Market.

Options granted in 2018:

	Number of options granted according to option plan of the Company						Exercise price per Ordinary		The fair value of options on date
Date of grant	Other than directors		To directors		Total		Share ($)		of grant (in thousands)
1) January 2018		-		128,000		128,000	$	6.9	$	838,470
2) June 2018		50,000		-		50,000	$	2.22	$	119,264
3) September 2018		-		30,000		30,000	$	1.78	$	45,574
4) December 2018		935,000		370,000		1,305,000	$	1.22	$	1,299,867

1)	128,000 options were allocated to independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $6.90, fair value of these options was estimated at $838 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.46% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

2)	50,000 options were allocated to officer of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $2.22, fair value of these options was estimated at $119 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.93% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.
3)	30,000 options were allocated to independent directors of the Company:

a.	The options will vest by 4 years with 25% on the first year anniversary; the remaining 75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.

b.	The fair value of the options on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are mainly as follows: an exercise price equal to $1.78, fair value of these options was estimated at $46 thousand with expected combined volatility based on weighted average of the stock price volatility of the Company since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies in the healthcare sector: 97.0%; risk-free interest rate: 2.85% (the risk-free interest rate is determined based on rates of return on maturity of unlinked treasury bonds with time to maturity that equals the average life of the options); expected dividend: zero; and the expected term; 11 years.

4)	1,305,000 options were allocated to employees, officers and independent directors of the Company:

a.