Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 31, 2017 | Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Entity Registrant Name | PLURISTEM THERAPEUTICS INC | ||
Entity Central Index Key | 1,158,780 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 97,473,652 | ||
Entity Public Float | $ 107,969,302 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,707 | $ 6,223 |
Short-term bank deposits | 6,235 | 8,570 |
Restricted cash and short-term-bank deposits | 559 | 542 |
Marketable securities | 15,164 | 17,415 |
Accounts receivable from the Israeli Innovation Authority ("IIA") | 1,036 | 2,228 |
Other current assets | 1,315 | 618 |
Total current assets | 29,016 | 35,596 |
LONG-TERM ASSETS: | ||
Long-term deposits and restricted bank deposits | 403 | 363 |
Severance pay fund | 804 | 766 |
Property and equipment, net | 7,277 | 9,216 |
Other long term assets | 34 | |
Total long-term assets | 8,518 | 10,345 |
Total assets | 37,534 | 45,941 |
CURRENT LIABILITIES | ||
Trade payables | 1,966 | 2,705 |
Accrued expenses | 1,465 | 1,369 |
Other accounts payable | 1,983 | 1,701 |
Total current liabilities | 5,414 | 5,775 |
LONG-TERM LIABILITIES | ||
Accrued severance pay | 940 | 910 |
Other long-term liabilities | 929 | 1,100 |
Total long-term liabilities | 1,869 | 2,010 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock $0.00001 par value per share: Authorized: 200,000,000 shares Issued and outstanding: 96,938,789 shares as of June 30, 2017; 80,268,999 shares as of June 30, 2016 | 1 | 1 |
Additional paid-in capital | 217,822 | 198,432 |
Accumulated deficit | (189,571) | (161,757) |
Other comprehensive income | 1,999 | 1,480 |
Total stockholders' equity | 30,251 | 38,156 |
Total liabilities and stockholders' equity | $ 37,534 | $ 45,941 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 96,938,789 | 80,268,999 |
Common stock, shares outstanding | 96,938,789 | 80,268,999 |
CONSOLIDATED STATEMENTS OF OPE
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 2,847 | $ 379 | |
Cost of revenues | (100) | (13) | |
Gross profit | 2,747 | 366 | |
Research and development expenses | (24,001) | (22,856) | (23,416) |
Less R&D participation grants | 2,909 | 3,276 | 4,243 |
Research and development expenses, net | (21,092) | (19,580) | (19,173) |
General and administrative expenses | (6,927) | (6,486) | (6,460) |
Operating loss | (28,019) | (23,319) | (25,267) |
Financial income, net | 205 | 73 | 590 |
Net loss for the period | $ (27,814) | $ (23,246) | $ (24,677) |
Loss per share: | |||
Basic and diluted net loss per share | $ (0.32) | $ (0.29) | $ (0.35) |
Weighted average number of shares used in computing basic and diluted net loss per share | 87,426,208 | 79,547,989 | 70,284,337 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (27,814) | $ (23,246) | $ (24,677) |
Other comprehensive income (loss), net: | |||
Unrealized gain on derivative instruments | 285 | ||
Unrealized gain (loss) on available-for-sale marketable securities, net | 924 | (1,071) | (1,132) |
Reclassification adjustment of derivative instruments losses realized in net loss, net | (46) | (262) | |
Reclassification adjustment of available-for-sale marketable securities gains (losses) realized in net loss, net | (405) | 457 | 290 |
Other comprehensive income (loss) | 519 | (660) | (819) |
Total comprehensive loss | $ (27,295) | $ (23,906) | $ (25,496) |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Receivables on account of shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total | |
Balance at Jun. 30, 2014 | [1] | $ 172,998 | $ 2,959 | $ (113,834) | $ 62,123 | ||
Balance, shares at Jun. 30, 2014 | 68,601,452 | ||||||
Issuance of common stock and warrants related to June 2015 offering, net of issuance costs of $1,200 (Note 9c) | $ 1 | 15,799 | $ 15,800 | ||||
Issuance of common stock and warrants related to June 2015 offering, net of issuance costs of $1,200 (Note 9c), shares | 6,800,000 | 6,800,000 | |||||
Exercise of options by employees and non-employee consultants | [1] | 11 | $ 11 | ||||
Exercise of options by employees and non-employee consultants, shares | 39,000 | ||||||
Exercise of warrants by investors and finders | [1] | 276 | 276 | ||||
Exercise of warrants by investors and finders, shares | 1,134,043 | ||||||
Stock based compensation to employees, directors and non-employee consultants | [1] | 4,052 | 4,052 | ||||
Stock based compensation to employees, directors and non-employee consultants, shares | 1,397,406 | ||||||
Proceeds related to issuance of common stock in a private placement (Note 9b) | [1] | 1,904 | (790) | 1,114 | |||
Proceeds related to issuance of common stock in a private placement (Note 9b), shares | 700,000 | ||||||
Stock-based compensation to contractor (Note 9d) | [1] | 263 | 263 | ||||
Stock-based compensation to contractor, shares (Note 9d) | 100,004 | ||||||
Other comprehensive income (loss), net | (819) | (819) | |||||
Net loss | (24,677) | (24,677) | |||||
Balance at Jun. 30, 2015 | $ 1 | 195,303 | (790) | 2,140 | (138,511) | $ 58,143 | |
Balance, shares at Jun. 30, 2015 | 78,771,905 | 78,771,905 | |||||
Exercise of options by employees and non-employee consultants | [1] | 17 | $ 17 | ||||
Exercise of options by employees and non-employee consultants, shares | 28,000 | ||||||
Stock based compensation to employees, directors and non-employee consultants | [1] | 3,073 | 3,073 | ||||
Stock based compensation to employees, directors and non-employee consultants, shares | 1,379,094 | ||||||
Proceeds related to issuance of common stock in a private placement (Note 9b) | 790 | 790 | |||||
Stock-based compensation to contractor (Note 9d) | [1] | 39 | 39 | ||||
Stock-based compensation to contractor, shares (Note 9d) | 90,000 | ||||||
Other comprehensive income (loss), net | (660) | (660) | |||||
Net loss | (23,246) | (23,246) | |||||
Balance at Jun. 30, 2016 | $ 1 | 198,432 | 1,480 | (161,757) | $ 38,156 | ||
Balance, shares at Jun. 30, 2016 | 80,268,999 | 80,268,999 | |||||
Exercise of options by employees and non-employee consultants | [1] | 10 | $ 10 | ||||
Exercise of options by employees and non-employee consultants, shares | 17,900 | ||||||
Stock based compensation to employees, directors and non-employee consultants | [1] | 3,662 | 3,662 | ||||
Stock based compensation to employees, directors and non-employee consultants, shares | 2,570,257 | ||||||
Issuance of common stock and warrants related to January 2017 offering, net of issuance costs of $1,532 (Note 9e) | [1] | 15,718 | 15,718 | ||||
Issuance of common stock and warrants related to January 2017 offering, net of issuance costs of $1,532 (Note 9e), shares | 14,081,633 | ||||||
Other comprehensive income (loss), net | 519 | 519 | |||||
Net loss | (27,814) | (27,814) | |||||
Balance at Jun. 30, 2017 | $ 1 | $ 217,822 | $ 1,999 | $ (189,571) | $ 30,251 | ||
Balance, shares at Jun. 30, 2017 | 96,938,789 | 96,938,789 | |||||
[1] | Less than $1 |
STATEMENTS OF CHANGES IN STOCK7
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock and warrants, issuance costs | $ 1,532 | $ 1,200 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (27,814) | $ (23,246) | $ (24,677) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 2,177 | 2,150 | 2,074 |
Loss from sale of property and equipment, net | 72 | 82 | 20 |
Accretion of discount, amortization of premium and changes in accrued interest of marketable securities | 35 | (114) | 213 |
Loss (gain) from sale of investments of available-for-sale marketable securities | (362) | 419 | 290 |
Other-than-temporary loss of available-for-sale marketable securities | 767 | 38 | |
Stock-based compensation to employees, directors and non-employees consultants | 3,662 | 3,073 | 4,052 |
Decrease (increase) in Accounts receivable from the IIA | 1,192 | (537) | 572 |
Decrease (increase) in other current assets and other long-term assets | (731) | 1,395 | (1,129) |
Decrease in trade payables | (701) | (77) | (566) |
Increase (decrease) in other accounts payable, accrued expenses, other long-term liabilities and other current liabilities | 138 | 1,225 | (949) |
Decrease in deferred revenues | (2,847) | (379) | |
Decrease in advance payment from United | (93) | (154) | |
Increase (decrease) in interest receivable on short-term deposits | (24) | (25) | 35 |
Linkage differences and interest on short and long-term deposits and restricted bank deposits | (14) | (3) | 54 |
Accrued severance pay, net | (8) | 38 | (61) |
Net cash used in operating activities | (21,611) | (18,522) | (20,605) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (378) | (1,750) | (831) |
Proceeds from sale of property and equipment | 30 | 28 | 19 |
Repayment of (investment in) short-term deposits | 2,316 | (849) | 16,061 |
Repayment of (investment in) long-term deposits and restricted bank deposits | 5 | (78) | |
Proceeds from sale of available-for-sale marketable securities | 5,527 | 6,999 | 10,635 |
Proceeds from redemption of available-for-sale marketable securities | 410 | 1,094 | 634 |
Investment in available-for-sale marketable securities | (3,607) | (4,215) | (4,903) |
Net cash provided by investing activities | 4,298 | 1,312 | 21,537 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds related to issuance of common stock and warrants, net of issuance costs | 15,718 | 790 | 16,914 |
Proceeds in respect of BIRD liability | 69 | ||
Exercise of warrants and options | 10 | 17 | 287 |
Net cash provided by financing activities | 15,797 | 807 | 17,201 |
Increase (decrease) in cash and cash equivalents | (1,516) | (16,403) | 18,133 |
Cash and cash equivalents at the beginning of the period | 6,223 | 22,626 | 4,493 |
Cash and cash equivalents at the end of the period | 4,707 | 6,223 | 22,626 |
(a) Supplemental disclosure of cash flow activities: | |||
Cash paid during the period for: Taxes paid due to non-deductible expenses | 28 | 66 | 54 |
(b) Supplemental disclosure of non-cash activities: | |||
Purchase of property and equipment on credit | 88 | 126 | 612 |
Share consideration to constructor | 39 | 263 | |
Receivables on account of shares | $ 790 |
GENERAL
GENERAL | 12 Months Ended |
Jun. 30, 2017 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1:-GENERAL a. Pluristem Therapeutics Inc., a Nevada corporation, was incorporated on May 11, 2001. Pluristem Therapeutics Inc. has a wholly owned subsidiary, Pluristem Ltd. (the “Subsidiary”), which is incorporated under the laws of the State of Israel. Pluristem Therapeutics Inc. and the Subsidiary are referred to as the “Company” or “Pluristem”. The Company’s shares of common stock are traded on the NASDAQ Capital Market under the symbol “PSTI” and on the Tel-Aviv Stock Exchange under the symbol “PLTR”. b. The Company is a bio-therapeutics company developing placenta-based cell therapy product candidates for the treatment of multiple ischemic and inflammatory conditions. The Company has incurred an accumulated deficit of approximately $189,571 and incurred recurring operating losses and negative cash flows from operating activities since inception. As of June 30, 2017, the Company’s total stockholders’ equity amounted to $30,251. During the year ended June 30, 2017, the Company incurred operating losses of $27,814 and its negative cash flow from operating activities was $21,611. The Company will be required to obtain additional liquidity resources in the near term in order to support the commercialization of its products and maintain its research and development and clinical trials activities. As of June 30, 2017, the Company’s cash position (cash and cash equivalents, short-term bank deposits and marketable securities) totaled approximately $26,106. The Company is addressing its liquidity issues by implementing initiatives to allow the continuation of its activities. The Company’s current operating plan includes various assumptions concerning the level and timing of cash outflows for operating activities and capital expenditures. The Company’s ability to successfully carry out its business plan, which includes a cost-reduction plan should it be unable to raise sufficient additional capital, is primarily dependent upon its ability to (1) obtain sufficient additional capital, (2) enter into license agreements to use or commercialize the Company’s products and (3) receive other sources of funding, including non-diluting sources such as the IIA grants, the European Union’s Horizon 2020 program (“Horizon 2020”) According to management estimates, liquidity resources as of June 30, 2017 will be sufficient to maintain the Company’s operations into the first quarter of the Company’s fiscal year 2019. The Company’s inability to raise funds to carry out its business plan will have a severe negative impact on its ability to remain a viable company. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The audited consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern. c. License Agreements: United Therapeutics Corporation (“United”) Agreement On June 19, 2011, the Company entered into an exclusive license agreement (the “United Agreement”) with United for the use of the Company’s PLX cells to develop and commercialize a cell-based product for the treatment of Pulmonary Hypertension (“PAH”). The United Agreement provided that United would receive exclusive worldwide license rights for the development and commercialization of the Company’s PLX cell-based product to treat PAH. Under the United Agreement the Company received an upfront payment of $7,000 paid in August 2011, which included a $5,000 non-refundable upfront payment and a $2,000 advance payment on development. On December 8, 2015, the Company received a notice from United terminating the United Agreement, effective immediately. Pursuant to the United Agreement termination clause, Pluristem regained full rights to PLX in the field of PAH, as well as all clinical data and regulatory submissions. As the Company has no further obligations towards United, the Company recognized the remaining upfront payment received in August 2011 as revenues during the year ended June 30, 2016. CHA Biotech Co. Ltd. (“CHA”) Agreement On June 26, 2013, Pluristem entered into an exclusive license and commercialization agreement (the “CHA Agreement”) with CHA, for conducting clinical trials and commercialization of Pluristem’s PLX-PAD product in South Korea in connection with two indications: the treatment of Critical Limb Ischemia (“CLI”), and Intermediate Claudication (the “Indications”). Under the terms of the CHA Agreement, CHA will receive exclusive rights in South Korea for conducting clinical trials with respect to the Indications, and the Company will continue to retain rights to its proprietary manufacturing technology and cell-related intellectual property. The first clinical study as part of the CHA Agreement is a Phase II trial in Intermittent Claudication. South Korea’s Ministry of Food and Drug Safety approved this study in November 2013. Upon the first regulatory approval for a PLX product in South Korea, for the specified indications, Pluristem and CHA will establish an equally owned joint venture. The purpose of the joint venture will be to commercialize PLX cell products in South Korea. Pluristem will be able to use the data generated by CHA to pursue the development of PLX product candidates outside of South Korea. The CHA Agreement contains customary termination provisions, including in the event the parties do not reach an agreement upon development plan for conducting the clinical trials. Upon termination of this CHA Agreement, the license granted thereunder will terminate and all rights included therein will revert to the Company, whereupon the Company will be free to enter into agreements with any other third parties for the granting of a license in or outside South Korea or to deal in any other manner with such rights as it shall see fit at its sole discretion. In addition, and as contemplated by the CHA Agreement, in December 2013, Pluristem and CHA executed the mutual investment pursuant to which Pluristem issued 2,500,000 shares of its common stock in consideration for 1,011,504 shares of CHA, which reflects total consideration to each of Pluristem and CHA of approximately $10,414. The parties also agreed to give an irrevocable proxy to the other party’s management with respect to the voting power of the shares issued. During March 2015, the Company sold a portion of the CHA shares received in December 2013. The remaining investment in CHA shares is presented as “Marketable Securities” and classified as available-for-sale in accordance with Accounting Standards Codification (“ASC”) 320, “Investments - Debt and Equity Securities”. The fair value of the remaining investment in CHA’s shares as of June 30, 2017, is approximately $4,358. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:-SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) applied on consistent basis. a. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments, and assumptions that are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. b. Functional currency Most of the Pluristem Therapeutics Inc. costs are denominated in United States dollars (“dollar”). The Company’s management believes that the dollar is the primary currency of the economic environment in which Pluristem Therapeutics Inc. and its subsidiary operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar denominated transactions and balances have been re-measured into the functional currency in accordance with ASC No. 830, “Foreign Currency Matters”. All transaction gains and losses from the re-measured monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate. c. Principles of consolidation The consolidated financial statements include the accounts of Pluristem Therapeutics Inc. and it’s Subsidiary. Intercompany transactions and balances have been eliminated upon consolidation. d. Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with maturities of three months or less at the date acquired. e. Short-term bank deposit Bank deposits with original maturities of more than three months but less than one year are presented as part of short-term investments. Deposits are presented at their cost which approximates market values including accrued interest. Interest on deposits is recorded as financial income. f. Restricted cash and short-term bank deposits Short-term restricted bank deposits and restricted cash used to secure derivative and hedging transactions and the Company’s credit line. The restricted cash and short-term bank deposits are presented at cost which approximates market values including accrued interest. g. Long-term restricted bank deposits Long-term restricted bank deposits with maturities of more than one year used to secure operating lease agreement are presented at cost which approximates market values including accrued interest. h. Investment in marketable securities The Company accounts for its investments in marketable securities in accordance with ASC 320,“Investments – Debt and Equity Securities”. The Company determines the classification of marketable securities at the time of purchase and re-evaluates such designations as of each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale marketable securities are carried at fair value, with the unrealized gain and loss reported at “Accumulated other comprehensive income (loss)” in the statement of changes in stockholders’ equity. Realized gain and loss on sales of marketable securities are included in the Company’s “Financial income, net” and are derived using the specific identification basis for determining the cost of marketable securities sold. The amortized cost of available for sale debt marketable securities is adjusted for amortization of premiums and accretion of discount to maturity. Such amortization, together with coupon interest on available for sale marketable securities, is included in the “Financial income, net”. The Company recognizes an impairment charge when a decline in the fair value of its available-for-sale marketable securities below the cost basis is judged to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the Company’s cost basis, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. ASC 320-10-35, “Investments - Debt and Equity Securities”, requires another-than-temporary impairment for debt securities to be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors (provided that the Company does not intend to sell the security and it is not more likely than not that it will be required to sell it before recovery). For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in “financial income, net”, in the statement of operations and is limited to the amount related to credit loss, while impairment related to other factors is recognized in “other comprehensive income (loss)”. During the years ended June 30, 2017 and 2016, the Company recognized other-than-temporary impairment loss of $767 and $38, respectively. During the year ended June 30, 2015 no impairment losses were identified (see note 3). i. Revenue Recognition from the license Agreement with United The Company recognized revenue pursuant to the License Agreement with United in accordance with ASC 605-25, “Revenue Recognition, Multiple-Element Arrangements”. Pursuant to ASC 605-25, each deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. The Company received an up-front, non-refundable license payment of $5,000. Additional payments totaling $37,500 were subject to the achievement of certain regulatory milestones by United. Since the deliverables in the United Agreement did not have stand-alone value, none of them qualified as a separate unit of accounting. Accordingly, the non-refundable upfront license fee of $5,000 was deferred and recognized on a straight line basis over the related performance period which was the development period in accordance with Staff Accounting Bulletin (“SAB”) 104, “Revenue Recognition”. The Company also received an advanced payment for the development, of $2,000 that was deductible against development expenses as it was incurred. The upfront payment which was received was included in the balance sheet as advance payment. The Company deducted the payments from its research and development expenses in accordance with ASC 730-20, “Research and Development Agreements”. On December 8, 2015, the Company received a notice from United terminating the United Agreement, effective immediately. Pursuant to the United Agreement termination clause, Pluristem regained full rights to PLX in the field of PAH, as well as all clinical data and regulatory submissions. As the Company had no further obligations j. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Laboratory equipment 10-15 Computers and peripheral equipment 33 Office furniture and equipment 15 Vehicles 15 Leasehold improvements The shorter of the expected useful life or the reasonable assumed term of the lease. k. Impairment of long-lived assets The Company’s long-lived assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During fiscal years 2017, 2016 and 2015, no impairment losses have been identified. As required by ASC 820, “Fair Value Measurements” (“ASC 820”), the Company applies assumptions that marketplace participants would consider in determining the fair value of long-lived assets. l. Accounting for stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation” (“ASC 718”) and ASC 505-50, “Equity-Based Payments to Non-Employees” (“ASC 505-50”). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model. The Company accounts for employee’s share-based payment awards classified as equity awards (restricted stocks or restricted stock units) using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. The Company elected to recognize compensation cost for an award with service conditions and goals achievement that has a graded vesting schedule using the accelerated method based on the multiple-option award approach. During fiscal years 2017, 2016 and 2015, there were no options granted to employees or directors. The assumptions below are relevant to restricted stock and restricted stock units granted in 2017, 2016 and 2015: In accordance with ASC 718, restricted stock and restricted stock units are measured at their fair value. All restricted stock and restricted stock units to employees, directors and non-employees granted in 2017, 2016 and 2015, were granted for no consideration; therefore, their fair value was equal to the share price at the date of grant. The fair value of all restricted stock and restricted stock units was determined based on the close trading price of the Company’s shares known at the grant date. The weighted average grant date fair value of shares granted during 2017, 2016 and 2015, was $1.41, $1.13 and $2.70, respectively. m. Research and Development expenses and royalty bearing grants Research and development expenses, net of participations grants, are charged to the statement of operations as incurred. Pluristem receives grants from the IIA in the Ministry of Economy and Industry (formerly the Office of Chief Scientist’s) for the purpose of partially funding approved research and development projects. The grants are not to be repaid, but instead Pluristem is obliged to pay royalties as a percentage of future sales if and when sales from the funded projects are generated. These grants are recognized as a deduction from research and development costs at the time the Company is entitled to such grants on the basis of the research and development costs incurred. Since the payment of royalties is not probable when the grants are received, the Company records a liability in the amount of the estimated royalties for each individual contract, when the related revenues are recognized, as part of Cost of revenues. For more information regarding such royalties commitments and regarding grants and participation received, see Note 8. n. Non-royalty bearing grant T he Company’s CLI program participates in a European Union research and development consortium under Horizon 2020. In August 2016, the CLI program consortium was awarded a Euro 7,600 (approximately $8,700) non-royalty bearing grant. An amount of Euro 1,900 (approximately $2,200) is a direct grant allocated to the Company. o. Loss per share Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during each year. All outstanding stock options and unvested restricted stock units have been excluded from the calculation of the diluted loss per common share because all such securities are anti-dilutive for each of the periods presented. p. Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). This Topic prescribes the use of the liability method, whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. ASC 740 establishes a single model to address accounting for uncertain tax positions. ASC 740 clarified the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. q. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term deposits, long-term deposits, restricted deposits and marketable securities. The majority of the Company’s cash and cash equivalents and short-term and long-term deposits are mainly invested in dollar instruments of major banks in Israel and in the United States. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines, approved by the Company’s Investment Committee, relating to diversification and maturities to maintain safety and liquidity of the investments. The Company holds an investment portfolio consisting of corporate bonds, government bonds, stocks and index linked notes. The Company intends, and has the ability, to hold such investments until recovery of temporary declines in market value or maturity. However, the Company can provide no assurance that it will recover declines in the market value of its investments. r. Severance pay A majority of the Company’s agreements with employees in Israel are subject to Section 14 of the Israeli Severance Pay Law, 1963 (“Severance Pay Law”). The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of employment, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. For some employees, which their agreement is not subject to Section 14 of the Severance Pay Law, the Subsidiary’s liability for severance pay is calculated pursuant to Israeli Severance Pay Law, based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s liability for all of its employees is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits or losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes immaterial profits or losses. Severance expenses for the years ended June 30, 2017, 2016 and 2015 were $524, $556 and $441, respectively. s. Fair value of financial instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short-term and restricted bank deposits, accounts receivable and other current assets, trade payable and other accounts payable and accrued liabilities, approximate fair value because of their generally short term maturities. The Company measures its investments in marketable securities and derivative instruments at fair value under ASC 820. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Level 2 Level 3 The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company categorized each of its fair value measurements in one of these three levels of hierarchy (see Note 4). t. Derivative financial instruments The Company accounts for derivatives and hedging based on ASC 815, “Derivatives and hedging” , as amended and related interpretations. ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value. If a derivative meets the definition of a hedge and is so designated, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings (for fair value hedge transactions) or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings (for cash flow hedge transactions). The ineffective portion of a derivative’s change in fair value is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. Cash flows related to such hedges are classified as operating activities. The Company enters into forward exchange contracts and option contracts in order to limit the exposure to exchange rate fluctuation associated with expenses mainly incurred in NIS . Since the derivative instruments that the Company holds do not meet the definition of hedging instruments under ASC 815, any gain or loss derived from such instruments is recognized immediately as “financial income, net”. The Company measured the fair value of the contracts in accordance with ASC 820. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. As of June 30, 2017 and 2016, the fair value of the u. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”. Comprehensive income generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders’. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses on available for sale marketable securities. The following table summarizes the changes in accumulated balances of other comprehensive income for the year ended June 30, 2017: Year ended June 30, 2017 Unrealized Beginning balance $ 1,480 Other comprehensive income before reclassifications 924 Amounts reclassified from accumulated other comprehensive loss, net (405 ) Net current-period other comprehensive income 519 Ending balance $ 1,999 v. Recent Accounting Pronouncement Accounting Standards Update (“ASU”) 2014-09 – “Revenue from Contracts with Customers (Topic 606)” In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09 (Topic 606) “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”, and requires entities to recognize revenue when they transfer control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We intend to adopt Topic 606 as of July 1, 2017, using the modified retrospective transition method. Prior periods will not be retrospectively adjusted. As the Company currently does not have any contracts with customers which are not completed, as of June 30, 2017, we do not expect the adoption of Topic 606 will have a material impact on our consolidated financial statements, including the presentation of revenues in our consolidated statements of income. ASU 2014-15 - Presentation of Financial Statements - Going Concern (Subtopic 205-40): In August 2014, the FASB issued guidance on disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provides principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the provisions of ASU 2014-15 for the year ended December 31, 2016. The adoption of ASU 2014-15 did not have a material impact on the consolidated financial statements. ASU 2016-13 - Financial Instruments – Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments”: In June 2016, the FASB issued ASU 2016-13. This update requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” on a financial asset and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. The update also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The update is effective for the interim and annual periods beginning on or after December 15, 2019, or July 1, 2020, for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the update on its consolidated financial statements. ASU 2016-18 - Restricted Cash (Topic 230): In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows”. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements. ASU 2016-02 - Leases (Topic 842): In February 2016, the FASB issued guidance on the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in a manner similar to the accounting under existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Topic 842 supersedes the previous leases standard, ASC 840, “Leases”. The guidance is effective for the interim and annual periods beginning on or after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential effect of the guidance on its consolidated financial statements. ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): In January 2016, the FASB issued guidance on financial instruments - recognition and measurement of financial assets and financial liabilities. The pronouncement revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU 2016-01 is effective for fiscal years, beginning after December 15, 2017 and interim periods within those years. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. ASU 2016-09 - Compensation - Stock Compensation (Topic 718): In March 2016, the FASB issued guidance on improvements to employee share-based payments. The standard requires among others, that excess tax benefits or deficiencies for share-based payments be recorded as income tax benefit or expense, rather then within additional paid in capital, in the period in which the shares vest. Cash flows related to excess tax benefits will be included in operating activities instead of separately classified as a financing activity. The new guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company does not expect this guidance to have a material effect on its consolidated financial statements at the time of adoption of this standard. ASU 2017-11 - Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception: In July 2017, the FASB issued ASU No. 2017-11. The ASU was issued to address the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company plans to adopt ASU 2017-11 in the first quarter of the Company’s fiscal year 2018. ASU 2017-11 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES As of June 30, 2017 and 2016, all of the Company’s marketable securities were classified as available-for-sale. June 30, 2017 June 30, 2016 Amortized cos Gross unrealized gain Gross unrealized loss Other-than-temporary impairment Fair value Amortized cost Gross unrealized gain Gross unrealized loss Other-than-temporary impairment Fair value Available-for-sale - matures within one year: Stock and index linked notes $ 11,988 $ 2,014 $ (47 ) $ (767 ) $ 13,188 $ 11,599 $ 1,594 $ (208 ) $ (38 ) $ 12,947 Government debentures – fixed interest rate 157 1 - - 158 786 12 - - 798 Corporate debentures – fixed interest rate 47 1 - - 48 439 7 - - 446 $ 12,192 $ 2,016 $ (47 ) $ (767 ) $ 13,394 $ 12,824 $ 1,613 $ (208 ) $ (38 ) $ 14,191 Available-for-sale - matures after one year through five years: Government debentures – fixed interest rate 468 23 - - 491 717 27 - - 744 Corporate debentures – fixed interest rate 1,255 7 (1 ) - 1,261 2,403 47 - - 2,450 $ 1,723 $ 30 $ (1 ) $ - $ 1,752 $ 3,120 $ 74 $ - $ - $ 3,194 Available-for-sale - matures after five years through ten years: Corporate debentures – fixed interest rate 17 1 - - 18 29 1 - - 30 $ 17 $ 1 $ - $ - $ 18 $ 29 $ 1 $ - $ - $ 30 Total $ 13,932 $ 2,047 $ (48 ) $ (767 ) $ 15,164 $ 15,973 $ 1,688 $ (208 ) $ (38 ) $ 17,415 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of June 30, 2017 and June 30, 2016, and the length of time that those investments have been in a continuous loss position: 12 months or less Greater than 12 months Fair Value Gross Fair Value Gross As of June 30, 2017 $ 869 $ (24 ) $ 106 $ ( 2 ) As of June 30, 2016 $ 1,258 $ (143 ) $ 563 $ (65 ) The Company typically invests in highly-rated securities. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company's intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment's amortized cost basis. Based on the above factors, the Company concluded that unrealized losses in the amount of $48 on all available-for-sale securities were not other-than-temporary and no credit loss was present for any of its investments. The Company recognized other-than-temporary impairment loss on outstanding securities during the year ended June 30, 2017 and 2016, of $767 and $38, respectively. As of June 30, 2017 and 2016, interest receivable amounted to $11 and $28, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4:- FAIR VALUE OF FINANCIAL INSTRUMENTS June 30, 2017 June 30, 2016 Level 1 Level 2 Level 1 Level 2 Marketable securities $ 10,523 $ 4,641 $ 11,228 $ 6,187 Foreign currency derivative instruments not designated as hedge instruments - 295 - 65 Total financial assets $ 10,523 $ 4,936 $ 11,228 $ 6,252 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 5:-OTHER CURRENT ASSETS June 30, 2017 2016 Prepaid expenses $ 882 $ 300 Accounts receivable from the Ministry of Economy - 23 Derivatives not designated as hedge instruments 295 65 VAT receivables 137 167 Other receivables 1 63 Total $ 1,315 $ 618 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:-PROPERTY AND EQUIPMENT, NET June 30, 2017 2016 Cost: Laboratory equipment $ 6,097 $ 6,000 Computers and peripheral equipment 1,126 1,024 Office furniture and equipment 681 715 Leasehold improvements 8,603 9,349 Vehicles - 95 Total Cost 16,507 17,183 Accumulated depreciation: Laboratory equipment 4,164 3,401 Computers and peripheral equipment 951 802 Office furniture and equipment 416 353 Leasehold improvements 3,699 3,374 Vehicles - 37 Total accumulated depreciation 9,230 7,967 Property and equipment, net $ 7,277 $ 9,216 Depreciation expenses amounted to $2,177, $2,150 and $2,074 for the years ended June 30, 2017, 2016 and 2015, respectively. |
OTHER ACCOUNTS PAYABLE
OTHER ACCOUNTS PAYABLE | 12 Months Ended |
Jun. 30, 2017 | |
OTHER ACCOUNTS PAYABLE [Abstract] | |
OTHER ACCOUNTS PAYABLE | NOTE 7:-OTHER ACCOUNTS PAYABLE June 30, 2017 2016 Accrued payroll $ 505 $ 421 Payroll institutions 345 309 Accrued vacation 791 720 Other payables 342 251 Total $ 1,983 $ 1,701 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8:-COMMITMENTS AND CONTINGENCIES a. In February 2015, the Company signed an addendum to its facility operating lease agreement (the “Addendum”) with the lessor, which extended the lease period to December 2021. The lessor paid a non-refundable leasehold improvement participation payment, of approximately $947 in October 2015, in addition to the non-refundable payment of approximately $816 received in January 2013. The payments are deductible against lease expenses as they are incurred. The lessor upfront payment is included in the balance sheet as advance payment and recognized as a deduction from lease expenses over the lease term. In June 2017, the Company terminated its operating lease agreement for a facility of 1,280 square meters. The Company recognizes lease expense, net of lessor participation, under such arrangements, on a straight-line basis over the lease term. As of June 30, 2017, aggregate minimum lease commitments under the active operating lease agreements are as follows: Year ending June 30, 2018 $ 884 2019 884 2020 894 2021 904 2022 452 Total $ 4,018 Lease expenses, net of lessor participation, amounted to $781, $824 and $704 for the years ended June 30, 2017, 2016 and 2015, respectively. The Subsidiary issued a bank guarantee in favor of the lessors in the amount of approximately $399. b. The Subsidiary leases several motor vehicles under operating lease agreements, which expire in various dates during years 2017 through June 2019. As of June 30, 2017, future aggregate minimum lease commitments under non-cancelable operating lease agreements are as follows: Year ending June 30, 2018 225 2019 142 2020 77 Total $ 444 Lease expenses amounted to $233, $210 and $218 for the years ended June 30, 2017, 2016 and 2015, respectively. c. An amount of $559 of cash and deposits was pledged by the Subsidiary to secure certain derivatives and hedging transactions, credit line and bank guarantees as of June 30, 2017. d. Under the Law for the Encouragement of Industrial Research and Development, 1984, (the “Research Law”), research and development programs that meet specified criteria and are approved by the IIA are eligible for grants of up to 50% of the project’s expenditures, as determined by the research committee, in exchange for the payment of royalties from the sale of products developed under the program. Regulations under the Research Law generally provide for the payment of royalties to the IIA of 3%-4% on sales of products and services derived from a technology developed using these grants until 100% of the dollar-linked grant is repaid. The Company’s obligation to pay these royalties is contingent on its actual sale of such products and services. In the absence of such sales, no payment is required. Outstanding balance of the grants will be subject to interest at a rate equal to the 12 month LIBOR applicable to dollar deposits that is published on the first business day of each calendar year. Following the full repayment of the grant, there is no further liability for royalties. Through June 30, 2017, total grants obtained aggregated to approximately $24,461. Through June 30, 2017, total royalties paid and accrued amounted to $166. As of June 30, 2017, the Company’s contingent liability in respect to royalties to the IIA amounted to $24,295, not including LIBOR interest as described above. e. The Company has been awarded a marketing grant under the “Smart Money” program of the Israeli Ministry of Economy and Industry. The program’s aim is to assist companies to extend their activities in international markets. The goal market that was chosen was Japan. The Israeli government granted the Company budget resources that are intended to be used to advance the Company’s product candidate towards marketing in Japan and for regulatory activities there. As part of the program, the Company will repay royalties of 5% from the Company’s income in Japan during five years, starting the year in which the Company will not be entitled to reimbursement of expenses under the program and will be spread for a period of up to 5 years or until the amount of the grant is fully paid . Through June 30, 2017, total grants obtained under the Smart Money program amounted to approximately $112. No royalties were paid or accrued as of June 30, 2017. f. The Company announced that it will collaborate with the New York Blood Center (“NYBC”) on preclinical studies of its placental expanded R-18 cells (“PLX-R18”) to enhance the efficacy of umbilical cord blood transplantation. The project has been selected to receive a conditional award of $900 from Israel-United States Binational Industrial Research and Development Foundation (“BIRD Foundation”), of which an amount of $585 is a direct grant allocated to the Company. Per the terms of the project, The Company will provide the PLX-R18 cells and the NYBC will be responsible for conducting and supporting the studies. Amounts received in connection with this award are presented in “Other long-term liabilities” as the Company does not expect to repay the liability in the next 12 months. In accordance with the agreement between the Company and NYBC, if only one party elects to proceed with the development of the product, such party shall be responsible for all repayment obligations to the BIRD Foundation for both parties, if applicable. In addition, in case of conclusion of project development which will trigger the grant repayment to the BIRD Foundation, if the Company will elect to pursue the development of the product, and NYBC elects not to pursue the development of the product, then, unless otherwise agreed by the parties, the Company shall pay NYBC royalties in the amount of 2.5% from its revenues of the product, up to an aggregate royalty amount of approximately $550. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 9: - STOCKHOLDERS’ EQUITY The Company’s authorized common stock consists of 200,000,000 shares with a par value of $0.00001 per share. All shares have equal voting rights and are entitled to one vote per share in all matters to be voted upon by stockholders. The shares have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Board of Directors out of funds legally available. The Company’s authorized preferred stock consists of 10,000,000 shares of preferred stock, par value $0.00001 per share, with series, rights, preferences, privileges and restrictions as may be designated from time to time by the Company’s Board of Directors. No shares of preferred stock have been issued. a. From July 2014 through June 2015, a total of 2,081,303 warrants were exercised via “cashless” exercise, resulting in the issuance of 963,876 shares of common stock to investors of the Company. In addition, 170,167 warrants were exercised for cash and resulted in the issuance of 170,167 shares of common stock to investors of the Company. The aggregate cash consideration received was $276. b . From October 2014 through May 2015, the Company issued shares of common stock in private placements to investors. In October 2014, the Company issued 200,000 shares of common stock to an investor for aggregate cash consideration of $528. In February 2015, the Company issued an additional 200,000 shares of common stock to an investor for aggregate cash consideration of $586. In May 2015, the Company issued an additional 300,000 shares of common stock to an investor, for which the consideration in the amount of $790 was received from the investor in September 2015. c. On June 25, 2015, the Company entered into definitive agreements to sell 6,800,000 shares of common stock and warrants to purchase up to 4,080,000 shares of common stock at a combined price of $2.50 per share and related warrants (the “Offering”). The gross proceeds from the Offering were $17,000. Issuance costs amounted to $1,200. The warrants have an exercise price of $2.85 per share of common stock, are immediately exercisable and expire 5 years from the closing of the Offering. The Offering was closed on June 30, 2015. d. In February 2015, the Subsidiary entered into an agreement with a contractor for the construction of its new laboratories facility for a consideration of approximately NIS 3.3 million (approximately $841). Under the terms of the agreement, the Subsidiary agreed to pay part of the NIS 3.3 million consideration using 100,004 restricted shares of common stock of the Company, linked to performance milestones with respect to the new laboratories construction and which serve as a guarantee. These restricted shares were released to the contractor in December 2014 upon the successful completion of the construction. In May 2015, the Subsidiary entered into an addendum to the agreement with the contractor for the design and construction of additional office space renovations in the Subsidiary leased facility for additional consideration of approximately NIS 4 million (approximately $1,032) which is comprised of NIS 3 million (approximately $774) in cash and 90,000 restricted shares which were issued to the contractor in February 2016. The Company accounted for the abovementioned stock-based payment awards to the contractor in accordance with ASC 505-50, “Equity based payments to non-employees”. As performance by the contractor was not deemed complete while the awards were forfeitable (or not issued), the Company measured the fair value of the awards at each reporting period through the performance completion date (until completion of the construction work). The construction work was initiated in June 2015. On October 30, 2015, the contractor completed the agreed construction milestones. As a result, the Company recognized the fair value of the stock-based payments awards, using the fair value of the Company’s shares on October 30, 2015, totaling approximately $302 as stock-based payment to the contractor in “Additional paid-in capital” with a corresponding amount included in “Property and equipment, net”. e. On January 25, 2017, the Company issued, pursuant to an underwriting agreement relating to a firm commitment public offering, an aggregate of 14,081,633 shares of common stock and warrants to purchase an aggregate of 8,448,980 shares of common stock, inclusive of the underwriter’s over-allotment option, which was exercised in full, for aggregate gross proceeds of $17,250. The net proceeds, after deducting underwriting commissions, discounts and other expenses related to the offering were approximately $15,718. The warrants issued in the offering are exercisable for a period of five years commencing six months following issuance and have an exercise price of $1.40 per share. As of June 30, 2017, all of the warrants are outstanding. f. Options, warrants and restricted stock units to employees, directors and consultants: The Company has approved incentive option plan from 2005 (the “2005 Plan”). Under the Plan, options, restricted stock (“RS”) and restricted stock units (“RSUs”) (collectively, the “Awards”) may be granted to the Company’s officers, directors, employees and consultants. Any Awards that are cancelled or forfeited before expiration become available for future grants. In addition, at the Company’s annual meeting of its stockholders, held on May 31, 2016, the Company’s stockholders approved the 2016 Equity Compensation Plan (the “2016 Plan”). Under the 2016 Plan, options, RS and RSUs may be granted to the Company’s officers, directors, employees and consultants or the officers, directors, employees and consultants of our subsidiary. As of June 30, 2017, the number of shares of common stock authorized for issuance under the 2005 Plan amounted to 19,166,082, of which 3,305,428 shares are available for future grant under the 2005 Plan. As of June 30, 2017, the number of shares of common stock authorized for issuance under the 2016 Plan amounted to 2,584,147 for calendar year 2017, of which 343,327 shares are available for future grant under the 2016 Plan. (1) Options to employees and directors: The Company accounts for its options to employees and directors under the fair value method in accordance with ASC 718, “Compensation—Stock Compensation”. A summary of the Company’s activity for options granted to employees and directors under the 2005 Plan is as follows: Year ended June 30, 2017 Number Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Price Options outstanding at beginning of period 1,771,700 $ 3.76 Options exercised (16,000 ) $ 0.62 Options forfeited (940,050 ) $ 4.49 Options outstanding at end of the period 815,650 $ 2.98 0.82 $ 231 Options exercisable at the end of the period 815,650 $ 2.98 0.82 $ 231 Options vested at the end of the period 815,650 $ 2.98 0.82 $ 231 Intrinsic value of exercisable options (the difference between the Company’s closing stock price on the last trading day in the period and the exercise price, multiplied by the number of in-the-money options) represents the amount that would have been received by the employees and directors option holders had all option holders exercised their options on June 30, 2017. This amount changes based on the fair market value of the Company’s common stock. (2) Options to non-employees: A summary of the options to non-employee consultants is as follows: Year ended June 30, 2017 Number Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Price Options outstanding at beginning of period 237,300 $ 5.40 Options granted 46,800 $ 0.00 Options exercised (1,900 ) $ 0.00 Options forfeited (105,000 ) $ 10.98 Options outstanding at end of the period 177,200 $ 0.72 4.30 $ 179 Options exercisable at the end of the period 164,825 $ 0.78 3.92 $ 163 Options vested and expected to vest at the end of the period 177,200 $ 0.72 4.30 $ 179 Compensation expenses related to options granted to consultants were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 7 $ 22 $ 1 General and administrative expenses 39 2 1 $ 46 $ 24 $ 2 (3) RS and RSUs to employees and directors: The following table summarizes the activity related to unvested RS and RSUs granted to employees and directors under the 2005 Plan and 2016 Plan for the year ended June 30, 2017: Number Unvested at the beginning of period 1,906,619 Granted 6,579,435 Forfeited (107,953 ) Vested (2,313,200 ) Unvested at the end of the period 6,064,901 Expected to vest after June 30, 2017 5,978,114 Compensation expenses related to RS and RSUs granted to employees and directors were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 1,558 $ 960 $ 1,469 General and administrative expenses 1,645 1,905 2,277 $ 3,203 $ 2,865 $ 3,746 Unamortized compensation expenses related to RS and RSUs granted to employees and directors to be recognized over an average time of approximately 4 years are approximately $6,886. (4) RS and RSUs to consultants: The following table summarizes the activity related to unvested RS and RSUs granted to consultants for the year ended June 30, 2017: Number Unvested at the beginning of period 26,000 Granted 273,557 Vested (257,057 ) Unvested at the end of the period 42,500 Compensation expenses related to RS and RSUs granted to consultants were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 19 $ 39 $ 131 General and administrative expenses 394 145 173 $ 413 $ 184 $ 304 a. Summary of warrants and options: Warrants / Options Exercise Price per Share Options and Warrants for Common Stock Options and Warrants Exercisable Weighted Average Remaining Contractual Terms (in years) Warrants: $ 1.40 8,448,981 - 5.06 $ 2.85 4,080,000 4,080,000 3.00 $ 5.00 3,219,983 3,219,983 0.22 Total warrants 15,748,964 7,299,983 Options: $ 0.00 137,200 124,825 5.32 $ 0.62 345,500 345,500 1.28 $ 1.04 25,000 25,000 1.16 $ 2.97 20,000 20,000 0.86 $ 3.50 30,000 30,000 0.14 $ 3.80 1,000 1,000 0.14 $ 4.38 372,500 372,500 0.47 $ 4.40 400 400 0.14 $ 6.80 36,250 36,250 0.37 $ 8.20 20,000 20,000 0.16 $ 20.00 5,000 5,000 2.62 Total options 992,850 980,475 Total warrants and options 16,741,814 8,280,458 This summary does not include 6,107,401 RS and RSUs that are not vested as of June 30, 2017. |
FINANCIAL INCOME, NET
FINANCIAL INCOME, NET | 12 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
FINANCIAL INCOME, NET | NOTE 10:-FINANCIAL INCOME, NET Year ended June 30, 2017 2016 2015 Foreign currency translation differences, net $ 182 $ (174 ) $ (1,109 ) Bank and broker commissions (67 ) (85 ) (37 ) Interest income on deposits 122 149 112 Gain (loss) related to marketable securities, net (513 ) 190 1,229 Gain (loss) from derivatives and fair value hedge derivatives 481 (30 ) 395 Other financial income - 23 - $ 205 $ 73 $ 590 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 11:-TAXES ON INCOME A. Tax assessments: The Subsidiary has not received final tax assessments since its incorporation; however, the assessments of the Subsidiary are deemed final through 2012. B. Tax rates applicable to the Company:- 1. Pluristem Therapeutics Inc.: The tax rates applicable to Pluristem Therapeutics Inc., a Nevada corporation, are corporate (progressive) tax at the rate of up to 35%, excluding state tax and local tax if any, which rates depend on the state and city in which Pluristem Therapeutics Inc. conducts its business. 2. The Subsidiary: Taxable income of Israeli companies is subject to tax at the rate of 24% in year 2017, 25% in 2016 and 26.5% in 2015. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016, which reduces the corporate income tax rate to 23% effective from January 1, 2018. Under the Foreign Exchange Regulations, the Subsidiary calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into New Israeli Shekels according to the exchange rate as of June 30 of each year. Tax Benefits Under the Law for Encouragement of Capital Investments. According to the Law for Encouragement of Capital Investments, 1959 (the “Encouragement Law”), the Subsidiary is entitled to various tax benefits due to “Beneficiary Enterprise” status granted to its enterprise, as implied by the Encouragement Law. The principal benefits by virtue of the Encouragement Law are: Tax benefits and reduced tax rates: On July 7, 2010, the Subsidiary has received a letter of approval (the “Ruling”) from the Israeli Tax Authority. According to the Ruling, the Subsidiary’s expansion program of its plant was granted the status of a “Beneficiary Enterprise” under the “Alternative Track” (the “2007 Program”). The Subsidiary chose the year 2007 as the election year of the 2007 Program. Under the 2007 Program “Alternative Track”, the Subsidiary, which was located in a National Priority Zone “B” with respect to the year 2007, is tax exempt in the first six years of the benefit period and subject to tax at the reduced rate of 10%-25% for a period of one to four years for the remaining benefit period (dependent on the level of foreign investments). On June 6, 2013, the Subsidiary informed the Israeli Tax Authority that it has chosen the year 2012 as an election year to the expansion of its “Beneficiary Enterprise” program (the “2012 Program”). Under the 2012 Program, the Subsidiary, which was located in the “Other National Priority Zone” with respect to the year 2012, would be tax exempt in the first two years of the benefit period and subject to tax at the reduced rate of 10%-25% for a period of five to eight years for the remaining benefit period (dependent on the level of foreign investments). Following the enactment of Amendment No. 60 to the Encouragement The qualifying percentage of the value of the productive assets is as follows: The value of productive assets before the expansion (NIS in millions) The new proportion that the required investment bears to the value of productive assets Up to NIS 140 12% NIS 140 - NIS 500 7% More than NIS 500 5% The income qualifying for tax benefits under the alternative track is the taxable income of a “beneficiary company” that has met certain conditions as determined by the Encouragement As stated above, the Subsidiary’s 2007 Program and 2012 Program were granted the status of a “Beneficiary Enterprise”, in accordance with the Encouragement In respect of expansion programs pursuant to Amendment No. 60 to the Encouragement If a dividend is distributed out of tax exempt profits, as detailed above, the Subsidiary will become liable for tax at the rate applicable to its profits from the Beneficiary Enterprise in the year in which the income was earned, (tax at the rate of 10-25%, dependent on the level of foreign investments) and to a withholding tax rate of 15% (or lower, under an applicable tax treaty). As for “Beneficiary Enterprises” pursuant to Amendment No. 60 to the Encouragement As for industrial enterprises, in each tax year during the benefit period, one of the following conditions must be met: 1. The industrial enterprise’s main field of activity is biotechnology or nanotechnology as approved by the Head of the Administration of Industrial Research and Development, prior to the approval of the relevant program. 2. The industrial enterprise’s sales revenues in a specific market during the tax year do not exceed 75% of its total sales for that tax year. A “market” is defined as a separate country or customs territory. 3. At least 25% of the industrial enterprise’s overall revenues during the tax year were generated from the enterprise’s sales in a specific market with a population of at least 14 million. Accelerated depreciation: The Subsidiary is eligible for deduction of accelerated depreciation on buildings, machinery and equipment used by the “Beneficiary Enterprise” at a rate of 200% (or 400% for buildings) from the first year of the assets operation. Conditions for the entitlement to the benefits: The abovementioned benefits are conditional upon the fulfillment of the conditions stipulated by the Encouragement Amendment to the Encouragement Law: Effective January 2011, the Knesset (Israeli parliament) enacted a reform to the Encouragement Law. According to the reform a flat rate tax would apply to companies eligible for the “Preferred Enterprise” status. In order to be eligible for a “Preferred Enterprise” status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive factor for the Gross Domestic Product (a competitive enterprise). Israeli companies which currently benefit from an Approved or Privileged Enterprise status and meet the criteria for qualification as a “Preferred Enterprise” can elect to apply the new “Preferred Enterprise” benefits by waiving their benefits under the “Approved” and “Beneficiary Enterprise” status. Benefits granted to a “Preferred Enterprise” include reduced tax rates. Following the enactment of the National Priorities Law, effective January 1, 2014, the reduced tax rate is 9% in the Development Area A regions and 16% in other regions. “Preferred Enterprises” in peripheral regions are also eligible for Israeli government Investment Center grants, as well as the applicable reduced tax rates. A distribution from a “Preferred Enterprise” out of the “Preferred Income” is subject to 20% withholding tax for Israeli-resident individuals and non-Israeli residents (subject to applicable treaty rates). A distribution from a “Preferred Enterprise” out of the “Preferred Income” would be exempt from withholding tax for an Israeli-resident company. The Subsidiary did not apply the Amendment to the Encouragement Law with respect to the Privileged Enterprise status, but may choose to apply the Amendment in the future . Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 71): In August 2013, the Law for Changing National Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 2013 which includes Amendment 71 to the Law for the Encouragement of Capital Investments (“Amendment 71”) was enacted. According to Amendment 71, the tax rate on preferred income from a preferred enterprise in 2014 and thereafter will be 16% (in development area A - 9%). As for changes in tax rates resulting from the enactment of Amendment 73 to the Law, see below. Amendment 71 also prescribes that any dividends distributed to individuals or foreign residents from the preferred enterprise’s earnings as above will be subject to tax at a rate of 20%. Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 73): In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“Amendment 73”) was published. According to Amendment 73, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). Amendment 73 also prescribes special tax tracks for technological enterprises, which are subject to rules that are to be issued by the Minister of Finance on May 28, 2017, the regulations were approved by the Minister of Finance and the amendment came into effect on January 1, 2017. The new tax tracks under Amendment 73 are as follows: Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the Encouragement of Capital Investments Law, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - a tax rate of 7.5%). Special technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries exceed NIS 10 billion. Such enterprise will be subject to tax at a rate of 6% on profits deriving from intellectual property, regardless of the enterprise’s geographical location. Any dividends distributed to “foreign companies”, as defined in the Law, deriving from income from the technological enterprises will be subject to tax at a rate of 4%. C. Carryforward losses for tax purposes As of June 30, 2017, the Company had U.S. federal net operating loss carryforward for income tax purposes in the amount of approximately $32,519. Net operating loss carryforward arising in taxable years , 202 Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. The Subsidiary in Israel has accumulated losses for tax purposes as of June 30, 2017, in the amount of approximately $109,480, which may be carried forward and offset against taxable business income and business capital gain in the future for an indefinite period. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: June 30, 2017 2016 Deferred tax assets: U.S. net operating loss carryforward $ 11,382 $ 10,210 Israeli net operating loss carryforward 26,275 22,105 Allowances and reserves 222 216 Total deferred tax assets before valuation allowance 37,879 32,531 Valuation allowance (37,879 ) (32,531 ) Net deferred tax asset $ - $ - As of June 30, 2017 and 2016, the Company has provided full valuation allowances in respect of deferred tax assets resulting from tax loss carryforward and other temporary differences, since they have a history of operating losses and current uncertainty concerning its ability to realize these deferred tax assets in the future. The Company accounts for its income tax uncertainties in accordance with ASC 740 which clarifies the accounting for uncertainties in income taxes recognized in a Company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of June 30, 2017 and 2016, there were no unrecognized tax benefits that if recognized would affect the annual effective tax rate. Reconciliation of the theoretical tax expense (benefit) to the actual tax expense (benefit): In 2017, 2016 and 2015, the main reconciling item of the statutory tax rate of the Company (24% to 35% in 2017, 2016 and 2015) to the effective tax rate (0%) is tax loss carryforwards, and other deferred tax assets for which a full valuation allowance was provided. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12:-SUBSEQUENT EVENTS a. Pursuant to a shelf registration on Form S-3 declared effective by the Securities and Exchange Commission on June 23, 2017, in July 2017 the Company entered into an At Market Issuance Sales Agreement (“ATM Agreement”) with FBR Capital Markets & Co., MLV & Co. LLC and Oppenheimer & Co. Inc. (collectively, the “Agents”), which provides that, upon the terms and subject to the conditions and limitations in the ATM Agreement, the Company may elect, from time to time, to offer and sell shares of common stock having an aggregate offering price of up to $80,000 through the Agents acting as sales agent. As of September 5, 2017, the Company had sold 455,731 shares of common stock at an average price of $1.20 per share. b. In July 2017, the Company was awarded an additional “Smart Money” grant of approximately $229 from Israel’s Ministry of Economy and Industry to help penetrate the Chinese market, including Hong Kong, with its advanced cell therapy products. The Israeli government granted the Company budget resources that are intended to be used to advance the Company’s product candidate towards marketing in the China-Hong Kong markets. The Company will also receive close support from Israel’s trade representatives stationed in China, including Hong Kong, along with experts appointed by the Smart Money program. c. On September 5, 2017, the Company announced that its phase III study of PLX-PAD cells to support recovery following surgery for femoral neck fracture was awarded a Euro 7,400 (approximately $8,700) non-dilutive grant from the Horizon 2020 program. An amount of Euro 2,400 (approximately $2,800) is a direct grant allocated to the Company, and the Company also expects to benefit from cost savings resulting from grant amounts allocated to the other consortium members. Final approval of the grant is subject to the finalization of the consortium and Horizon 2020 grant agreements. |
SIGNIFICANT ACCOUNTING POLICI21
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments, and assumptions that are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Functional currency | b. Functional currency Most of the Pluristem Therapeutics Inc. costs are denominated in United States dollars (“dollar”). The Company’s management believes that the dollar is the primary currency of the economic environment in which Pluristem Therapeutics Inc. and its subsidiary operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar denominated transactions and balances have been re-measured into the functional currency in accordance with ASC No. 830, “Foreign Currency Matters”. All transaction gains and losses from the re-measured monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate. |
Principles of consolidation | c. Principles of consolidation The consolidated financial statements include the accounts of Pluristem Therapeutics Inc. and it’s Subsidiary. Intercompany transactions and balances have been eliminated upon consolidation. |
Cash and cash equivalents | d. Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with maturities of three months or less at the date acquired. |
Short-term bank deposit | e. Short-term bank deposit Bank deposits with original maturities of more than three months but less than one year are presented as part of short-term investments. Deposits are presented at their cost which approximates market values including accrued interest. Interest on deposits is recorded as financial income. |
Restricted cash and short-term bank deposits | f. Restricted cash and short-term bank deposits Short-term restricted bank deposits and restricted cash used to secure derivative and hedging transactions and the Company’s credit line. The restricted cash and short-term bank deposits are presented at cost which approximates market values including accrued interest. |
Long-term restricted bank deposits | g. Long-term restricted bank deposits Long-term restricted bank deposits with maturities of more than one year used to secure operating lease agreement are presented at cost which approximates market values including accrued interest. |
Investment in marketable securities | h. Investment in marketable securities The Company accounts for its investments in marketable securities in accordance with ASC 320,“Investments – Debt and Equity Securities”. The Company determines the classification of marketable securities at the time of purchase and re-evaluates such designations as of each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale marketable securities are carried at fair value, with the unrealized gain and loss reported at “Accumulated other comprehensive income (loss)” in the statement of changes in stockholders’ equity. Realized gain and loss on sales of marketable securities are included in the Company’s “Financial income, net” and are derived using the specific identification basis for determining the cost of marketable securities sold. The amortized cost of available for sale debt marketable securities is adjusted for amortization of premiums and accretion of discount to maturity. Such amortization, together with coupon interest on available for sale marketable securities, is included in the “Financial income, net”. The Company recognizes an impairment charge when a decline in the fair value of its available-for-sale marketable securities below the cost basis is judged to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the Company’s cost basis, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. ASC 320-10-35, “Investments - Debt and Equity Securities”, requires another-than-temporary impairment for debt securities to be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors (provided that the Company does not intend to sell the security and it is not more likely than not that it will be required to sell it before recovery). For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in “financial income, net”, in the statement of operations and is limited to the amount related to credit loss, while impairment related to other factors is recognized in “other comprehensive income (loss)”. During the years ended June 30, 2017 and 2016, the Company recognized other-than-temporary impairment loss of $767 and $38, respectively. During the year ended June 30, 2015 no impairment losses were identified (see note 3). |
Revenue Recognition from the license Agreement with United | i. Revenue Recognition from the license Agreement with United The Company recognized revenue pursuant to the License Agreement with United in accordance with ASC 605-25, “Revenue Recognition, Multiple-Element Arrangements”. Pursuant to ASC 605-25, each deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. The Company received an up-front, non-refundable license payment of $5,000. Additional payments totaling $37,500 were subject to the achievement of certain regulatory milestones by United. Since the deliverables in the United Agreement did not have stand-alone value, none of them qualified as a separate unit of accounting. Accordingly, the non-refundable upfront license fee of $5,000 was deferred and recognized on a straight line basis over the related performance period which was the development period in accordance with Staff Accounting Bulletin (“SAB”) 104, “Revenue Recognition”. The Company also received an advanced payment for the development, of $2,000 that was deductible against development expenses as it was incurred. The upfront payment which was received was included in the balance sheet as advance payment. The Company deducted the payments from its research and development expenses in accordance with ASC 730-20, “Research and Development Agreements”. On December 8, 2015, the Company received a notice from United terminating the United Agreement, effective immediately. Pursuant to the United Agreement termination clause, Pluristem regained full rights to PLX in the field of PAH, as well as all clinical data and regulatory submissions. As the Company had no further obligations |
Property and Equipment | j. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Laboratory equipment 10-15 Computers and peripheral equipment 33 Office furniture and equipment 15 Vehicles 15 Leasehold improvements The shorter of the expected useful life or the reasonable assumed term of the lease. |
Impairment of long-lived assets | k. Impairment of long-lived assets The Company’s long-lived assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During fiscal years 2017, 2016 and 2015, no impairment losses have been identified. As required by ASC 820, “Fair Value Measurements” (“ASC 820”), the Company applies assumptions that marketplace participants would consider in determining the fair value of long-lived assets. |
Accounting for stock-based compensation | l. Accounting for stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation” (“ASC 718”) and ASC 505-50, “Equity-Based Payments to Non-Employees” (“ASC 505-50”). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model. The Company accounts for employee’s share-based payment awards classified as equity awards (restricted stocks or restricted stock units) using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. The Company elected to recognize compensation cost for an award with service conditions and goals achievement that has a graded vesting schedule using the accelerated method based on the multiple-option award approach. During fiscal years 2017, 2016 and 2015, there were no options granted to employees or directors. The assumptions below are relevant to restricted stock and restricted stock units granted in 2017, 2016 and 2015: In accordance with ASC 718, restricted stock and restricted stock units are measured at their fair value. All restricted stock and restricted stock units to employees, directors and non-employees granted in 2017, 2016 and 2015, were granted for no consideration; therefore, their fair value was equal to the share price at the date of grant. The fair value of all restricted stock and restricted stock units was determined based on the close trading price of the Company’s shares known at the grant date. The weighted average grant date fair value of shares granted during 2017, 2016 and 2015, was $1.41, $1.13 and $2.70, respectively. |
Research and Development expenses and royalty bearing grants | m. Research and Development expenses and royalty bearing grants Research and development expenses, net of participations grants, are charged to the statement of operations as incurred. Pluristem receives grants from the IIA in the Ministry of Economy and Industry (formerly the Office of Chief Scientist’s) for the purpose of partially funding approved research and development projects. The grants are not to be repaid, but instead Pluristem is obliged to pay royalties as a percentage of future sales if and when sales from the funded projects are generated. These grants are recognized as a deduction from research and development costs at the time the Company is entitled to such grants on the basis of the research and development costs incurred. Since the payment of royalties is not probable when the grants are received, the Company records a liability in the amount of the estimated royalties for each individual contract, when the related revenues are recognized, as part of Cost of revenues. For more information regarding such royalties commitments and regarding grants and participation received, see Note 8. |
Non-royalty bearing grant | n. Non-royalty bearing grant T he Company’s CLI program participates in a European Union research and development consortium under Horizon 2020. In August 2016, the CLI program consortium was awarded a Euro 7,600 (approximately $8,700) non-royalty bearing grant. An amount of Euro 1,900 (approximately $2,200) is a direct grant allocated to the Company. |
Loss per share | o. Loss per share Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during each year. All outstanding stock options and unvested restricted stock units have been excluded from the calculation of the diluted loss per common share because all such securities are anti-dilutive for each of the periods presented. |
Income taxes | p. Income taxes The Company accounts for income taxes in accordance with ASC 740, "Income Taxes" (“ASC 740”). This Topic prescribes the use of the liability method, whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. ASC 740 establishes a single model to address accounting for uncertain tax positions. ASC 740 clarified the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. |
Concentration of credit risk | q. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term deposits, long-term deposits, restricted deposits and marketable securities. The majority of the Company’s cash and cash equivalents and short-term and long-term deposits are mainly invested in dollar instruments of major banks in Israel and in the United States. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines, approved by the Company’s Investment Committee, relating to diversification and maturities to maintain safety and liquidity of the investments. The Company holds an investment portfolio consisting of corporate bonds, government bonds, stocks and index linked notes. The Company intends, and has the ability, to hold such investments until recovery of temporary declines in market value or maturity. However, the Company can provide no assurance that it will recover declines in the market value of its investments. |
Severance pay | r. Severance pay A majority of the Company’s agreements with employees in Israel are subject to Section 14 of the Israeli Severance Pay Law, 1963 (“Severance Pay Law”). The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of employment, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. For some employees, which their agreement is not subject to Section 14 of the Severance Pay Law, the Subsidiary’s liability for severance pay is calculated pursuant to Israeli Severance Pay Law, based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s liability for all of its employees is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits or losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes immaterial profits or losses. Severance expenses for the years ended June 30, 2017, 2016 and 2015 were $524, $556 and $441, respectively. |
Fair value of financial instruments | s. Fair value of financial instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short-term and restricted bank deposits, accounts receivable and other current assets, trade payable and other accounts payable and accrued liabilities, approximate fair value because of their generally short term maturities. The Company measures its investments in marketable securities and derivative instruments at fair value under ASC 820. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Level 2 Level 3 The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company categorized each of its fair value measurements in one of these three levels of hierarchy (see Note 4). |
Derivative financial instruments | t. Derivative financial instruments The Company accounts for derivatives and hedging based on ASC 815, “Derivatives and hedging” , as amended and related interpretations. ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value. If a derivative meets the definition of a hedge and is so designated, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings (for fair value hedge transactions) or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings (for cash flow hedge transactions). The ineffective portion of a derivative’s change in fair value is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. Cash flows related to such hedges are classified as operating activities. The Company enters into forward exchange contracts and option contracts in order to limit the exposure to exchange rate fluctuation associated with expenses mainly incurred in NIS . Since the derivative instruments that the Company holds do not meet the definition of hedging instruments under ASC 815, any gain or loss derived from such instruments is recognized immediately as “financial income, net”. The Company measured the fair value of the contracts in accordance with ASC 820. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. As of June 30, 2017 and 2016, the fair value of the |
Comprehensive income (loss) | u. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”. Comprehensive income generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders’. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses on available for sale marketable securities. The following table summarizes the changes in accumulated balances of other comprehensive income for the year ended June 30, 2017: Year ended June 30, 2017 Unrealized Beginning balance $ 1,480 Other comprehensive income before reclassifications 924 Amounts reclassified from accumulated other comprehensive loss, net (405 ) Net current-period other comprehensive income 519 Ending balance $ 1,999 |
Recent Accounting Pronouncement | v. Recent Accounting Pronouncement Accounting Standards Update (“ASU”) 2014-09 – “Revenue from Contracts with Customers (Topic 606)” In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09 (Topic 606) “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”, and requires entities to recognize revenue when they transfer control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We intend to adopt Topic 606 as of July 1, 2017, using the modified retrospective transition method. Prior periods will not be retrospectively adjusted. As the Company currently does not have any contracts with customers which are not completed, as of June 30, 2017, we do not expect the adoption of Topic 606 will have a material impact on our consolidated financial statements, including the presentation of revenues in our consolidated statements of income. ASU 2014-15 - Presentation of Financial Statements - Going Concern (Subtopic 205-40): In August 2014, the FASB issued guidance on disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provides principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the provisions of ASU 2014-15 for the year ended December 31, 2016. The adoption of ASU 2014-15 did not have a material impact on the consolidated financial statements. ASU 2016-13 - Financial Instruments – Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments”: In June 2016, the FASB issued ASU 2016-13. This update requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” on a financial asset and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. The update also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The update is effective for the interim and annual periods beginning on or after December 15, 2019, or July 1, 2020, for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the update on its consolidated financial statements. ASU 2016-18 - Restricted Cash (Topic 230): In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows”. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for the interim and annual periods beginning on or after December 15, 2017, or July 1, 2018 for the Company. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements. ASU 2016-02 - Leases (Topic 842): In February 2016, the FASB issued guidance on the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in a manner similar to the accounting under existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Topic 842 supersedes the previous leases standard, ASC 840, “Leases”. The guidance is effective for the interim and annual periods beginning on or after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential effect of the guidance on its consolidated financial statements. ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): In January 2016, the FASB issued guidance on financial instruments - recognition and measurement of financial assets and financial liabilities. The pronouncement revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU 2016-01 is effective for fiscal years, beginning after December 15, 2017 and interim periods within those years. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. ASU 2016-09 - Compensation - Stock Compensation (Topic 718): In March 2016, the FASB issued guidance on improvements to employee share-based payments. The standard requires among others, that excess tax benefits or deficiencies for share-based payments be recorded as income tax benefit or expense, rather then within additional paid in capital, in the period in which the shares vest. Cash flows related to excess tax benefits will be included in operating activities instead of separately classified as a financing activity. The new guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company does not expect this guidance to have a material effect on its consolidated financial statements at the time of adoption of this standard. ASU 2017-11 - Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception: In July 2017, the FASB issued ASU No. 2017-11. The ASU was issued to address the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company plans to adopt ASU 2017-11 in the first quarter of the Company’s fiscal year 2018. ASU 2017-11 |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives, Annual Rate | Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Laboratory equipment 10-15 Computers and peripheral equipment 33 Office furniture and equipment 15 Vehicles 15 Leasehold improvements The shorter of the expected useful life or the reasonable assumed term of the lease. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive income for the year ended June 30, 2017: Year ended June 30, 2017 Unrealized Beginning balance $ 1,480 Other comprehensive income before reclassifications 924 Amounts reclassified from accumulated other comprehensive loss, net (405 ) Net current-period other comprehensive income 519 Ending balance $ 1,999 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Schedule of Available-for-sale Marketable Securities | As of June 30, 2017 and 2016, all of the Company’s marketable securities were classified as available-for-sale. June 30, 2017 June 30, 2016 Amortized cos Gross unrealized gain Gross unrealized loss Other-than-temporary impairment Fair value Amortized cost Gross unrealized gain Gross unrealized loss Other-than-temporary impairment Fair value Available-for-sale - matures within one year: Stock and index linked notes $ 11,988 $ 2,014 $ (47 ) $ (767 ) $ 13,188 $ 11,599 $ 1,594 $ (208 ) $ (38 ) $ 12,947 Government debentures – fixed interest rate 157 1 - - 158 786 12 - - 798 Corporate debentures – fixed interest rate 47 1 - - 48 439 7 - - 446 $ 12,192 $ 2,016 $ (47 ) $ (767 ) $ 13,394 $ 12,824 $ 1,613 $ (208 ) $ (38 ) $ 14,191 Available-for-sale - matures after one year through five years: Government debentures – fixed interest rate 468 23 - - 491 717 27 - - 744 Corporate debentures – fixed interest rate 1,255 7 (1 ) - 1,261 2,403 47 - - 2,450 $ 1,723 $ 30 $ (1 ) $ - $ 1,752 $ 3,120 $ 74 $ - $ - $ 3,194 Available-for-sale - matures after five years through ten years: Corporate debentures – fixed interest rate 17 1 - - 18 29 1 - - 30 $ 17 $ 1 $ - $ - $ 18 $ 29 $ 1 $ - $ - $ 30 Total $ 13,932 $ 2,047 $ (48 ) $ (767 ) $ 15,164 $ 15,973 $ 1,688 $ (208 ) $ (38 ) $ 17,415 |
Schedule of Investments in Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of June 30, 2017 and June 30, 2016, and the length of time that those investments have been in a continuous loss position: 12 months or less Greater than 12 months Fair Value Gross Fair Value Gross As of June 30, 2017 $ 869 $ (24 ) $ 106 $ ( 2 ) As of June 30, 2016 $ 1,258 $ (143 ) $ 563 $ (65 ) |
FAIR VALUE OF FINANCIAL INSTR24
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | June 30, 2017 June 30, 2016 Level 1 Level 2 Level 1 Level 2 Marketable securities $ 10,523 $ 4,641 $ 11,228 $ 6,187 Foreign currency derivative instruments not designated as hedge instruments - 295 - 65 Total financial assets $ 10,523 $ 4,936 $ 11,228 $ 6,252 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | June 30, 2017 2016 Prepaid expenses $ 882 $ 300 Accounts receivable from the Ministry of Economy - 23 Derivatives not designated as hedge instruments 295 65 VAT receivables 137 167 Other receivables 1 63 Total $ 1,315 $ 618 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | June 30, 2017 2016 Cost: Laboratory equipment $ 6,097 $ 6,000 Computers and peripheral equipment 1,126 1,024 Office furniture and equipment 681 715 Leasehold improvements 8,603 9,349 Vehicles - 95 Total Cost 16,507 17,183 Accumulated depreciation: Laboratory equipment 4,164 3,401 Computers and peripheral equipment 951 802 Office furniture and equipment 416 353 Leasehold improvements 3,699 3,374 Vehicles - 37 Total accumulated depreciation 9,230 7,967 Property and equipment, net $ 7,277 $ 9,216 |
OTHER ACCOUNTS PAYABLE (Tables)
OTHER ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
OTHER ACCOUNTS PAYABLE [Abstract] | |
Schedule of Other Accounts Payable | June 30, 2017 2016 Accrued payroll $ 505 $ 421 Payroll institutions 345 309 Accrued vacation 791 720 Other payables 342 251 Total $ 1,983 $ 1,701 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Leased Facilities [Member] | |
Long-term Purchase Commitment [Line Items] | |
Schedule of Future Minimum Rental Commitments | As of June 30, 2017, aggregate minimum lease commitments under the active operating lease agreements are as follows: Year ending June 30, 2018 $ 884 2019 884 2020 894 2021 904 2022 452 Total $ 4,018 |
Automobiles [Member] | |
Long-term Purchase Commitment [Line Items] | |
Schedule of Future Minimum Rental Commitments | As of June 30, 2017, future aggregate minimum lease commitments under non-cancelable operating lease agreements are as follows: Year ending June 30, 2018 225 2019 142 2020 77 Total $ 444 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders Equity Note [Line Items] | |
Schedule of Stock Option and Warrant Activity | Warrants / Options Exercise Price per Share Options and Warrants for Common Stock Options and Warrants Exercisable Weighted Average Remaining Contractual Terms (in years) Warrants: $ 1.40 8,448,981 - 5.06 $ 2.85 4,080,000 4,080,000 3.00 $ 5.00 3,219,983 3,219,983 0.22 Total warrants 15,748,964 7,299,983 Options: $ 0.00 137,200 124,825 5.32 $ 0.62 345,500 345,500 1.28 $ 1.04 25,000 25,000 1.16 $ 2.97 20,000 20,000 0.86 $ 3.50 30,000 30,000 0.14 $ 3.80 1,000 1,000 0.14 $ 4.38 372,500 372,500 0.47 $ 4.40 400 400 0.14 $ 6.80 36,250 36,250 0.37 $ 8.20 20,000 20,000 0.16 $ 20.00 5,000 5,000 2.62 Total options 992,850 980,475 Total warrants and options 16,741,814 8,280,458 |
Employees and Directors [Member] | |
Stockholders Equity Note [Line Items] | |
Schedule of Stock Option Activity | A summary of the Company’s activity for options granted to employees and directors under the 2005 Plan is as follows: Year ended June 30, 2017 Number Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Price Options outstanding at beginning of period 1,771,700 $ 3.76 Options exercised (16,000 ) $ 0.62 Options forfeited (940,050 ) $ 4.49 Options outstanding at end of the period 815,650 $ 2.98 0.82 $ 231 Options exercisable at the end of the period 815,650 $ 2.98 0.82 $ 231 Options vested at the end of the period 815,650 $ 2.98 0.82 $ 231 |
Employees and Directors [Member] | Restricted stock units [Member] | |
Stockholders Equity Note [Line Items] | |
Schedule of Unvested Restricted Stock Units | The following table summarizes the activity related to unvested RS and RSUs granted to employees and directors under the 2005 Plan and 2016 Plan for the year ended June 30, 2017: Number Unvested at the beginning of period 1,906,619 Granted 6,579,435 Forfeited (107,953 ) Vested (2,313,200 ) Unvested at the end of the period 6,064,901 Expected to vest after June 30, 2017 5,978,114 |
Schedule of Stock-based Compensation Expenses | Compensation expenses related to RS and RSUs granted to employees and directors were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 1,558 $ 960 $ 1,469 General and administrative expenses 1,645 1,905 2,277 $ 3,203 $ 2,865 $ 3,746 |
Non-employee Consultants [Member] | |
Stockholders Equity Note [Line Items] | |
Schedule of Stock Option Activity | A summary of the options to non-employee consultants is as follows: Year ended June 30, 2017 Number Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Price Options outstanding at beginning of period 237, 300 $ 5.40 Options granted 46,800 $ 0.00 Options exercised (1,900 ) $ 0.00 Options forfeited (105,000 ) $ 10.98 Options outstanding at end of the period 177,200 $ 0.72 4.30 $ 179 Options exercisable at the end of the period 164,825 $ 0.78 3.92 $ 163 Options vested and expected to vest at the end of the period 177,200 $ 0.72 4.30 $ 179 |
Schedule of Stock-based Compensation Expenses | Compensation expenses related to options granted to consultants were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 7 $ 22 $ 1 General and administrative expenses 39 2 1 $ 46 $ 24 $ 2 |
Non-employee Consultants [Member] | Restricted stock units [Member] | |
Stockholders Equity Note [Line Items] | |
Schedule of Unvested Restricted Stock Units | The following table summarizes the activity related to unvested RS and RSUs granted to consultants for the year ended June 30, 2017: Number Unvested at the beginning of period 26,000 Granted 273,557 Vested (257,057 ) Unvested at the end of the period 42,500 |
Schedule of Stock-based Compensation Expenses | Compensation expenses related to RS and RSUs granted to consultants were recorded as follows: Year ended June 30, 2017 2016 2015 Research and development expenses $ 19 $ 39 $ 131 General and administrative expenses 394 145 173 $ 413 $ 184 $ 304 |
FINANCIAL INCOME, NET (Tables)
FINANCIAL INCOME, NET (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Financial Expenses (Income), Net | Year ended June 30, 2017 2016 2015 Foreign currency translation differences, net $ 182 $ (174 ) $ (1,109 ) Bank and broker commissions (67 ) (85 ) (37 ) Interest income on deposits 122 149 112 Gain (loss) related to marketable securities, net (513 ) 190 1,229 Gain (loss) from derivatives and fair value hedge derivatives 481 (30 ) 395 Other financial income - 23 - $ 205 $ 73 $ 590 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Qualifying Percentage of Value of Productive Assets | The qualifying percentage of the value of the productive assets is as follows: The value of productive assets before the expansion (NIS in millions) The new proportion that the required investment bears to the value of productive assets Up to NIS 140 12% NIS 140 - NIS 500 7% More than NIS 500 5% |
Schedule of Deferred Tax Assets | Significant components of the Company's deferred tax assets are as follows: June 30, 2017 2016 Deferred tax assets: U.S. net operating loss carryforward $ 11,382 $ 10,210 Israeli net operating loss carryforward 26,275 22,105 Allowances and reserves 222 216 Total deferred tax assets before valuation allowance 37,879 32,531 Valuation allowance (37,879 ) (32,531 ) Net deferred tax asset $ - $ - |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Aug. 31, 2011 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
GENERAL [Abstract] | ||||||
Accumulated deficit | $ 189,571 | $ 161,757 | ||||
Total stockholders' equity | 30,251 | 38,156 | $ 58,143 | $ 62,123 | ||
Net loss | 27,814 | 23,246 | 24,677 | |||
Cash flow operating activities | 21,611 | $ 18,522 | $ 20,605 | |||
Cash and cash equivalents, short-term bank deposits and marketable securities | 26,106 | |||||
Upfront payment received | $ 7,000 | |||||
Nonrefundable upfront payments received | 5,000 | |||||
Advance payment on the development | $ 2,000 | |||||
Issuance of common stock under CHA agreement | 2,500,000 | |||||
CHA shares classified as marketable securities | 1,011,504 | |||||
Total consideration reflected under the CHA agreement | $ 10,414 | |||||
Fair value of the remaining investment in CHA shares | $ 4,358 |
SIGNIFICANT ACCOUNTING POLICI33
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ / shares in Units, € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2016USD ($) | Aug. 31, 2016EUR (€) | Aug. 31, 2011USD ($) | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Other-than-temporary impairment loss | $ 767 | $ 38 | ||||
Nonrefundable upfront payments received | $ 5,000 | |||||
Contingent consideration receivable if certain regulatory milestones are reached | 37,500 | |||||
Deferred revenue | 5,000 | |||||
Advance payment for development costs | $ 2,000 | |||||
Granted, weighted-average grant date fair value | $ / shares | $ 1.41 | $ 1.13 | $ 2.70 | |||
Severance expenses | $ 524 | $ 556 | $ 441 | |||
Net gain (loss) realized on derivatives | 230 | (205) | $ 248 | |||
Fair value of other derivatives | $ 295 | $ 65 | ||||
Total grants awared to CLI program consortium under the European Union's Horizon 2020 program | $ 8,700 | |||||
Amount of grants awared under CLI program allocated to Company | $ 2,200 | |||||
Euro [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total grants awared to CLI program consortium under the European Union's Horizon 2020 program | € | € 7,600 | |||||
Amount of grants awared under CLI program allocated to Company | € | € 1,900 |
SIGNIFICANT ACCOUNTING POLICI34
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation Rate) (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Laboratory equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 10.00% |
Laboratory equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 15.00% |
Computers and peripheral equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 33.00% |
Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 15.00% |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 15.00% |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation, leasehold | The shorter of the expected useful life or the reasonable assumed term of the lease. |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES (Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 1,480 | ||
Net current-period other comprehensive income | 519 | $ (660) | $ (819) |
Ending balance | 1,999 | 1,480 | |
Unrealized gains (losses) on marketable securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,480 | ||
Other comprehensive income before reclassifications | 924 | ||
Amounts reclassified from accumulated other comprehensive loss, net | (405) | ||
Net current-period other comprehensive income | 519 | ||
Ending balance | $ 1,999 | $ 1,480 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Available-for-sale Marketable Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 15,164 | $ 17,415 |
Gross unrealized gain | 2,047 | 1,688 |
Gross unrealized loss | (48) | (208) |
Other-than-temporary impairment | (767) | (38) |
Amortized cost | 13,932 | 15,973 |
Within One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 13,394 | 14,191 |
Gross unrealized gain | 2,016 | 1,613 |
Gross unrealized loss | (47) | (208) |
Other-than-temporary impairment | (767) | (38) |
Amortized cost | 12,192 | 12,824 |
One to Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 1,752 | 3,194 |
Gross unrealized gain | 30 | 74 |
Gross unrealized loss | (1) | |
Other-than-temporary impairment | ||
Amortized cost | 1,723 | 3,120 |
After Five Years through Ten Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 18 | 30 |
Gross unrealized gain | 1 | 1 |
Gross unrealized loss | ||
Other-than-temporary impairment | ||
Amortized cost | 17 | 29 |
Stock and Index Linked Notes [Member] | Within One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 13,188 | 12,947 |
Gross unrealized gain | 2,014 | 1,594 |
Gross unrealized loss | (47) | (208) |
Other-than-temporary impairment | (767) | (38) |
Amortized cost | 11,988 | 11,599 |
Government Debentures [Member] | Within One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 158 | 798 |
Gross unrealized gain | 1 | 12 |
Gross unrealized loss | ||
Other-than-temporary impairment | ||
Amortized cost | 157 | 786 |
Government Debentures [Member] | One to Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 491 | 744 |
Gross unrealized gain | 23 | 27 |
Gross unrealized loss | ||
Other-than-temporary impairment | ||
Amortized cost | 468 | 717 |
Corporate Debentures [Member] | Within One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 48 | 446 |
Gross unrealized gain | 1 | 7 |
Gross unrealized loss | ||
Other-than-temporary impairment | ||
Amortized cost | 47 | 439 |
Corporate Debentures [Member] | One to Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 1,261 | 2,450 |
Gross unrealized gain | 7 | 47 |
Gross unrealized loss | (1) | |
Other-than-temporary impairment | ||
Amortized cost | 1,255 | 2,403 |
Corporate Debentures [Member] | After Five Years through Ten Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 18 | 30 |
Gross unrealized gain | 1 | 1 |
Gross unrealized loss | ||
Other-than-temporary impairment | ||
Amortized cost | $ 17 | $ 29 |
MARKETABLE SECURITIES (Schedu37
MARKETABLE SECURITIES (Schedule of Investments in Unrealized Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Marketable Securities [Abstract] | ||
Less than 12 months, fair value | $ 869 | $ 1,258 |
Less than 12 months, gross unrealized loss | (24) | (143) |
12 months or greater, fair value | 106 | 563 |
12 months or greater, gross unrealized loss | (24) | (65) |
Interest receivable | $ 11 | $ 28 |
FAIR VALUE OF FINANCIAL INSTR38
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 15,164 | $ 17,415 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,523 | 11,228 |
Foreign currency derivative instruments not designated as hedge instruments | ||
Total financial assets | 10,523 | 11,228 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,641 | 6,187 |
Foreign currency derivative instruments not designated as hedge instruments | 295 | 65 |
Total financial assets | $ 4,936 | $ 6,252 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 882 | $ 300 |
Accounts receivable from the Ministry of Economy | 23 | |
Derivatives not designated as hedge instruments | 295 | 65 |
VAT receivables | 137 | 167 |
Other receivables | 1 | 63 |
Total | $ 1,315 | $ 618 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 16,507 | $ 17,183 | |
Property and equipment, accumulated depreciation | 9,230 | 7,967 | |
Property and equipment, net | 7,277 | 9,216 | |
Depreciation | 2,177 | 2,150 | $ 2,074 |
Laboratory equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 6,097 | 6,000 | |
Property and equipment, accumulated depreciation | 4,164 | 3,401 | |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 1,126 | 1,024 | |
Property and equipment, accumulated depreciation | 951 | 802 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 681 | 715 | |
Property and equipment, accumulated depreciation | 416 | 353 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 8,603 | 9,349 | |
Property and equipment, accumulated depreciation | 3,699 | 3,374 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 95 | ||
Property and equipment, accumulated depreciation | $ 37 |
OTHER ACCOUNTS PAYABLE (Details
OTHER ACCOUNTS PAYABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
OTHER ACCOUNTS PAYABLE [Abstract] | ||
Accrued payroll | $ 505 | $ 421 |
Payroll institutions | 345 | 309 |
Accrued vacation | 791 | 720 |
Other payables | 342 | 251 |
Total | $ 1,983 | $ 1,701 |
COMMITMENTS AND CONTINGENCIES42
COMMITMENTS AND CONTINGENCIES (Operating Lease) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2015 | Jan. 31, 2013 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Leased Facilities [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Participation from lessor | $ 947 | $ 816 | |||
Lessor favored bank guarantee | $ 399 | ||||
Lease expenses | 781 | $ 824 | $ 704 | ||
Year ending June 30, 2018 | 884 | ||||
Year ending June 30, 2019 | 884 | ||||
Year ending June 30, 2020 | 894 | ||||
Year ending June 30, 2021 | 904 | ||||
Year ending June 30, 2022 | 452 | ||||
Total | 4,018 | ||||
Automobiles [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Lease expenses | 233 | $ 210 | $ 218 | ||
Year ending June 30, 2018 | 225 | ||||
Year ending June 30, 2019 | 142 | ||||
Year ending June 30, 2020 | 77 | ||||
Total | $ 444 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES (Other) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Other Commitments [Line Items] | ||
Restricted cash and short-term-bank deposits | $ 559 | $ 542 |
Grants received | $ 24,461 | |
Percentage of qualified expenditures eligible for grant | 50.00% | |
Royalty payable based on grants received | 100.00% | |
Accrued and paid royalties | $ 166 | |
Contingent liability amount | 24,295 | |
Smart Money Grant [Member] | ||
Other Commitments [Line Items] | ||
Grants received | $ 112 | |
Royalty rate | 5.00% | |
Term of royalty grant received | 5 years | |
BIRD [Member] | ||
Other Commitments [Line Items] | ||
Amount of grants received conditional award | $ 900 | |
Amount of direct grant allocated to the Company | $ 585 | |
NYBC [Member] | ||
Other Commitments [Line Items] | ||
Royalty payable based on grants received | 2.50% | |
Contingent liability amount | $ 550 | |
Minimum [Member] | ||
Other Commitments [Line Items] | ||
Royalty rate | 3.00% | |
Maximum [Member] | ||
Other Commitments [Line Items] | ||
Royalty rate | 4.00% |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, ₪ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Jan. 25, 2017USD ($)$ / sharesshares | Feb. 29, 2016shares | Oct. 31, 2015USD ($) | May 31, 2015USD ($)shares | May 31, 2015ILS (₪)shares | Feb. 28, 2015USD ($)shares | Feb. 28, 2015ILS (₪)shares | Oct. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | |
Class of Stock [Line Items] | ||||||||||||
Common stock, par value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||||||||||
Preferred stock, shares authorized | 10,000,000 | |||||||||||
Preferred stock, par value per share | $ / shares | $ 0.00001 | |||||||||||
Issuance of common stock and warrants, issuance costs | $ | $ 1,532 | $ 1,200 | ||||||||||
Issuance of common stock under CHA agreement | 2,500,000 | |||||||||||
CHA shares classified as marketable securities | 1,011,504 | |||||||||||
Issuance of common stock under CHA Agreement (Note 1c) | $ | $ 10,414 | |||||||||||
Stock-based compensation to contractor, shares | 100,004 | 100,004 | ||||||||||
Issuance of common stock and warrants, net of issuance costs, shares | 6,800,000 | |||||||||||
Offering price per unit | $ / shares | $ 2.50 | |||||||||||
Warrants for common stock | 4,080,000 | |||||||||||
Proceeds from issuance of stock | $ | $ 15,718 | $ 790 | $ 16,914 | |||||||||
Issuance of common stock in a private placement | $ | $ 790 | $ 586 | $ 528 | 790 | 1,114 | |||||||
Issuance of common stock in a private placement, shares | 300,000 | 300,000 | 200,000 | 200,000 | 200,000 | |||||||
Stock based compensation to contractor | $ | $ 841 | $ 39 | 263 | |||||||||
Cash paid to construction contractor | $ | $ 774 | |||||||||||
Unrecorded Unconditional Purchase Obligation | $ | $ 1,032 | |||||||||||
Amount of share-based compensation included in additional paid-in capital and property and equipment | $ | $ 302 | |||||||||||
2005 Plan [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Options authorized | 19,166,082 | |||||||||||
Options available for future grant | 3,305,428 | |||||||||||
2016 Plan [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Options authorized | 2,584,147 | |||||||||||
Options available for future grant | 343,327 | |||||||||||
Underwriting Agreement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise price | $ / shares | $ 1.40 | |||||||||||
Proceeds from issuance of stock | $ | $ 15,718 | |||||||||||
Number of shares agreed to be sold through Underwriter Agreement | 14,081,633 | |||||||||||
Number of warrants agreed to be sold through Underwriter Agreement | 8,448,980 | |||||||||||
Proceeds from public offering, gross | $ | $ 17,250 | |||||||||||
Contractor [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock-based compensation to contractor, shares to be issued | 90,000 | |||||||||||
Israel, New Shekels [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock based compensation to contractor | ₪ | ₪ 3,300 | |||||||||||
Costs paid to construction contractor | ₪ | ₪ 4,000 | |||||||||||
Cash paid to construction contractor | ₪ | ₪ 3,000 | |||||||||||
Investor Warrants [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants exercised via cashless exercise | 2,081,303 | |||||||||||
Warrants exercised via cashless exercise, shares issued | 963,876 | |||||||||||
Warrants exercised for cash | 170,167 | |||||||||||
Aggregate cash consideration received | $ | $ 276 | |||||||||||
Number of warrants exercised | 170,167 | |||||||||||
Warrant [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise price | $ / shares | $ 2.85 | |||||||||||
Expiration period of warrants | 5 years |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Option Activity) (Details) - Employees and Directors [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number | |
Options outstanding at beginning of period | shares | 1,771,700 |
Options exercised | shares | (16,000) |
Options forfeited | shares | (940,050) |
Options outstanding at end of the period | shares | 815,650 |
Options exercisable at the end of the period | shares | 815,650 |
Options vested at the end of the period | shares | 815,650 |
Weighted average exercise price | |
Options outstanding at beginning of period | $ / shares | $ 3.76 |
Options exercised | $ / shares | 0.62 |
Options forfeited | $ / shares | 4.49 |
Options outstanding at end of the period | $ / shares | 2.98 |
Options exercisable at the end of the period | $ / shares | 2.98 |
Options vested at the end of the period | $ / shares | $ 2.98 |
Weighted average remaining contractual term | |
Weighted Average Remaining Contractual Terms (in years) | 9 months 25 days |
Options exercisable at the end of the period | 9 months 25 days |
Options vested at the end of the period | 9 months 25 days |
Aggregate intrinsic value price | |
Options outstanding at end of the period | $ | $ 231 |
Options exercisable at the end of the period | $ | 231 |
Options vested at the end of the period | $ | $ 231 |
STOCKHOLDERS' EQUITY (Summary46
STOCKHOLDERS' EQUITY (Summary of Option Activity to Non-employee Consultants) (Details) - Non-employee Consultants [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number | |
Options outstanding at beginning of period | shares | 237,300 |
Option granted | shares | 46,800 |
Options exercised | shares | (1,900) |
Options forfeited | shares | (105,000) |
Options outstanding at end of the period | shares | 177,200 |
Options exercisable at the end of the period | shares | 164,825 |
Options vested and expected to vest at the end of the period | shares | 177,200 |
Weighted average exercise price | |
Options outstanding at beginning of period | $ / shares | $ 5.40 |
Options granted | $ / shares | 0 |
Options exercised | $ / shares | 0 |
Options forfeited | $ / shares | 10.98 |
Options outstanding at end of the period | $ / shares | 0.72 |
Options exercisable at the end of the period | $ / shares | 0.78 |
Options vested and expected to vest at the end of the period | $ / shares | $ 0.72 |
Weighted average remaining contractual term | |
Weighted Average Remaining Contractual Terms (in years) | 4 years 3 months 19 days |
Options exercisable at the end of the period | 3 years 11 months 1 day |
Options vested and expected to vest at the end of the period | 4 years 3 months 19 days |
Aggregate intrinsic value price | |
Options outstanding at end of the period | $ | $ 179 |
Options exercisable at the end of the period | $ | 163 |
Options vested and expected to vest at the end of the period | $ | $ 179 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | $ 46 | $ 24 | $ 2 |
Option [Member] | Research and development expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 7 | 22 | 1 |
Option [Member] | General and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 39 | 2 | 1 |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 3,203 | 2,865 | 3,746 |
Unrecognized compensation expense | $ 6,886 | ||
Unrecognized compensation expense, recognition period | 4 years | ||
Restricted stock units [Member] | Consultants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | $ 413 | 184 | 304 |
Restricted stock units [Member] | Research and development expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 1,558 | 960 | 1,469 |
Restricted stock units [Member] | Research and development expenses [Member] | Consultants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 19 | 39 | 131 |
Restricted stock units [Member] | General and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | 1,645 | 1,905 | 2,277 |
Restricted stock units [Member] | General and administrative expenses [Member] | Consultants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Compensation expenses | $ 394 | $ 145 | $ 173 |
STOCKHOLDERS' EQUITY (Summary48
STOCKHOLDERS' EQUITY (Summary of RSU Activity to Employees and Directors) (Details) | 12 Months Ended |
Jun. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the end of the period | 6,107,401 |
Restricted stock units [Member] | Employees and Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period | 1,906,619 |
Granted | 6,579,435 |
Forfeited | (107,953) |
Vested | (2,313,200) |
Unvested at the end of the period | 6,064,901 |
Expected to vest after June 30, 2017 | 5,978,114 |
STOCKHOLDERS' EQUITY (Summary49
STOCKHOLDERS' EQUITY (Summary of RSU Activity to Consultants) (Details) | 12 Months Ended |
Jun. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the end of the period | 6,107,401 |
Consultants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at the beginning of period | 26,000 |
Granted | 273,557 |
Vested | (257,057) |
Unvested at the end of the period | 42,500 |
STOCKHOLDERS' EQUITY (Summary50
STOCKHOLDERS' EQUITY (Summary of Warrants and Options) (Details) | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options and Warrants for Common Stock | 16,741,814 |
Options and Warrants Exercisable | 8,280,458 |
Restricted stock not included in summary of options and warrants | 6,107,401 |
Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options and Warrants for Common Stock | 992,850 |
Options and Warrants Exercisable | 980,475 |
Option [Member] | $0.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 0 |
Options and Warrants for Common Stock | 137,200 |
Options and Warrants Exercisable | 124,825 |
Weighted Average Remaining Contractual Terms (in years) | 5 years 3 months 26 days |
Option [Member] | $0.62 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 0.62 |
Options and Warrants for Common Stock | 345,500 |
Options and Warrants Exercisable | 345,500 |
Weighted Average Remaining Contractual Terms (in years) | 1 year 3 months 11 days |
Option [Member] | $1.04 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 1.04 |
Options and Warrants for Common Stock | 25,000 |
Options and Warrants Exercisable | 25,000 |
Weighted Average Remaining Contractual Terms (in years) | 1 year 1 month 27 days |
Option [Member] | $2.97 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 2.97 |
Options and Warrants for Common Stock | 20,000 |
Options and Warrants Exercisable | 20,000 |
Weighted Average Remaining Contractual Terms (in years) | 10 months 10 days |
Option [Member] | $3.50 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 3.50 |
Options and Warrants for Common Stock | 30,000 |
Options and Warrants Exercisable | 30,000 |
Weighted Average Remaining Contractual Terms (in years) | 1 month 20 days |
Option [Member] | $3.80 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 3.80 |
Options and Warrants for Common Stock | 1,000 |
Options and Warrants Exercisable | 1,000 |
Weighted Average Remaining Contractual Terms (in years) | 1 month 20 days |
Option [Member] | $4.38 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 4.38 |
Options and Warrants for Common Stock | 372,500 |
Options and Warrants Exercisable | 372,500 |
Weighted Average Remaining Contractual Terms (in years) | 5 months 20 days |
Option [Member] | $4.40 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 4.40 |
Options and Warrants for Common Stock | 400 |
Options and Warrants Exercisable | 400 |
Weighted Average Remaining Contractual Terms (in years) | 1 month 20 days |
Option [Member] | $6.80 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 6.80 |
Options and Warrants for Common Stock | 36,250 |
Options and Warrants Exercisable | 36,250 |
Weighted Average Remaining Contractual Terms (in years) | 4 months 13 days |
Option [Member] | $8.20 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 8.20 |
Options and Warrants for Common Stock | 20,000 |
Options and Warrants Exercisable | 20,000 |
Weighted Average Remaining Contractual Terms (in years) | 1 month 27 days |
Option [Member] | $20.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 20 |
Options and Warrants for Common Stock | 5,000 |
Options and Warrants Exercisable | 5,000 |
Weighted Average Remaining Contractual Terms (in years) | 2 years 7 months 13 days |
Warrant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options and Warrants for Common Stock | 15,748,964 |
Options and Warrants Exercisable | 7,299,983 |
Warrant [Member] | $1.4 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 1.40 |
Options and Warrants for Common Stock | 8,448,981 |
Options and Warrants Exercisable | |
Weighted Average Remaining Contractual Terms (in years) | 5 years 22 days |
Warrant [Member] | $2.85 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 2.85 |
Options and Warrants for Common Stock | 4,080,000 |
Options and Warrants Exercisable | 4,080,000 |
Weighted Average Remaining Contractual Terms (in years) | 3 years |
Warrant [Member] | $5.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price per Share | $ / shares | $ 5 |
Options and Warrants for Common Stock | 3,219,983 |
Options and Warrants Exercisable | 3,219,983 |
Weighted Average Remaining Contractual Terms (in years) | 2 months 19 days |
FINANCIAL INCOME, NET (Details)
FINANCIAL INCOME, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |||
Foreign currency translation differences, net | $ 182 | $ (174) | $ (1,109) |
Bank and broker commissions | (67) | (85) | (37) |
Interest income on deposits | 122 | 149 | 112 |
Gain (loss) related to marketable securities, net | (513) | 190 | 1,229 |
Gain (loss) from derivatives and fair value hedge derivatives | 481 | (30) | 395 |
Other financial income | 23 | ||
Financial income, net | $ 205 | $ 73 | $ 590 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statutory tax rate | 24.00% | 25.00% | 26.50% |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Total consolidated revenues of its parent company and all subsidiaries | $ 2,847 | $ 379 | |
Corporate statutory tax rate on 2018 and thereafter | 23.00% | ||
Internal Revenue Service (IRS) [Member] | |||
Net operating loss carryforwards | $ 32,519 | ||
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | |||
Net federal operating loss carry forward expiration date | Dec. 31, 2024 | ||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||
Net federal operating loss carry forward expiration date | Dec. 31, 2037 | ||
Israel Tax Authority [Member] | |||
Net operating loss carryforwards | $ 109,480 | ||
Technological Preferred Enterprise [Member] | |||
Corporate statutory tax rate on 2017 and thereafter | 12.00% | ||
Technological Preferred Enterprise [Member] | Development Area A [Member] | |||
Corporate statutory tax rate on 2017 and thereafter | 7.50% | ||
Technological Enterprise [Member] | |||
Corporate statutory tax rate for dividends distributed to foreign companies | 4.00% | ||
Special Technological Preferred Enterprise [Member] | |||
Corporate statutory tax rate on profits deriving from intellectual property | 6.00% | ||
Preferred Enterprise [Member] | |||
Corporate statutory tax rate for any dividends distributed to individuals or foreign residents from the preferred enterprise's earnings | 20.00% | ||
Preferred Enterprise [Member] | Development Area A [Member] | |||
Corporate statutory tax rate on 2017 and thereafter | 7.50% | ||
Corporate statutory tax rate on 2016 | 9.00% | ||
Preferred Enterprise [Member] | Rest Of Country [Member] | |||
Corporate statutory tax rate on 2016 and thereafter | 16.00% | ||
Maximum [Member] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Minimum [Member] | |||
Statutory tax rate | 24.00% | 24.00% | 24.00% |
TAXES ON INCOME (Schedule of Si
TAXES ON INCOME (Schedule of Significant Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
U.S. net operating loss carryforward | $ 11,382 | $ 10,210 |
Israeli net operating loss carryforward | 26,275 | 22,105 |
Allowances and reserves | 222 | 216 |
Total deferred tax assets before valuation allowance | 37,879 | 32,531 |
Valuation allowance | (37,879) | (32,531) |
Net deferred tax asset |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 05, 2017 | Sep. 05, 2017 | Jun. 30, 2015 | Jul. 31, 2017 |
Subsequent Event [Line Items] | ||||
Stock issued | 6,800,000 | |||
Equity issuance, price per share | $ 2.50 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity issuance, price per share | $ 1.20 | $ 1.20 | ||
Total non-dilutive grants awarded under the European Union's Horizon 2020 program | $ 8,700 | |||
Amount of direct grants awarded allocated to Company | 2,800 | |||
Subsequent Event [Member] | Euro [Member] | ||||
Subsequent Event [Line Items] | ||||
Total non-dilutive grants awarded under the European Union's Horizon 2020 program | 7,400 | |||
Amount of direct grants awarded allocated to Company | $ 2,400 | |||
Subsequent Event [Member] | ATM Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Value of common stock company can periodically issue through Agents, per terms of ATM Agreement | $ 80,000 | |||
Stock issued | 455,731 | |||
Subsequent Event [Member] | Smart Money Grant [Member] | ||||
Subsequent Event [Line Items] | ||||
Additonal grant awarded | $ 229 |