Loading...
Docoh

Kamada (KMDA)

Filed: 12 Nov 17, 7:00pm

Exhibit 99.2
 
KAMADA LTD.
 
CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF SEPTEMBER 30, 2017
 
TABLE OF CONTENTS
 


 
Kamada Ltd. and its subsidiaries

CONSOLIDATED BALANCE SHEETS

  As of September 30,  
As of
December 31,
 
  2017  2016  2016 
  Unaudited  Audited 
  In thousands 
Current Assets
         
Cash and cash equivalents $12,156  $6,476  $9,968 
Short-term investments  27,986   20,722   18,664 
Trade receivables, net  21,980   14,501   19,788 
Other accounts  receivables  2,683   4,022   3,063 
Inventories  23,144   28,086   25,594 
             
   87,949   73,807   77,077 
             
Non-Current Assets
            
Property, plant and equipment, net  23,597   20,720   22,249 
Other long-term assets  443   71   370 
             
   24,040   20,791   22,619 
             
   111,989   94,598   99,696 
Current Liabilities
            
Current maturities of loans  602   416   412 
Trade payables  12,004   8,916   16,277 
Other accounts payables  6,299   4,744   5,614 
Deferred revenues  4,816   4,858   4,903 
             
   23,721   18,934   27,206 
             
Non-Current Liabilities
            
Loans  1,501   1,502   1,364 
Employee benefit liabilities, net  1,000   798   722 
Deferred revenues  2,057   4,693   3,661 
             
   4,558   6,993   5,747 
Shareholder's Equity
            
Ordinary shares  10,399   9,320   9,320 
Share premium  177,193   162,649   162,671 
Capital reserve due to translation to presentation currency  (3,490)  (3,490)  (3,490)
Capital reserve from hedges  57   52   (27)
Capital reserve from available for sale  financial assets  34   87   19 
Capital reserve from share-based payments  10,413   9,768   9,795 
Capital reserve from employee benefits  (81)  (59)  (81)
Accumulated deficit  (110,815)  (109,656)  (111,464)
   83,710   68,671   66,743 
  $111,989  $94,598  $99,696 

The accompanying Notes are an integral part of the Consolidated Financial Statements.

F - 2

 
Kamada Ltd. and its subsidiaries
 
Consolidated Statements of Comprehensive Income (loss)
 
  
Nine months period
ended
September 30,
  
Three months period
ended
September 30,
  
Year ended
December 31
 
  2017  2016  2017  2016  2016 
  Unaudited  Audited 
  In thousands (except for per-share data) 
                
Revenues from proprietary products $50,568  $38,270  $17,058  $15,044  $55,958 
Revenues from distribution  16,547   14,966   5,860   4,329   21,536 
                     
Total revenues  67,115   53,236   22,918   19,373   77,494 
                     
Cost of revenues from proprietary products  32,727   23,843   11,509   9,433   37,433 
Cost of revenues from distribution  13,930   12,711   4,961   3,664   18,411 
                     
Total cost of revenues  46,657   36,554   16,470   13,097   55,844 
                     
Gross profit  20,458   16,682   6,448   6,276   21,650 
                     
Research and development expenses  10,056   12,024   3,418   4,415   16,245 
Selling and marketing expenses  3,133   2,557   1,021   866   3,243 
General and administrative expenses  6,270   5,688   2,323   2,014   7,643 
                     
Operating income (loss)  999   (3,587)  (314)  (1,019)  (5,481)
                     
Financial income  266   388   92   90   469 
Income (expense) in respect of currency exchange and derivatives instruments, net  (479)  (132)  -   (73)  127 
Financial expense  (50)  (106)  (14)  (39)  (126)
Gain (loss) before  taxes on income  736   (3,437)  (236)  (1,041)  (5,011)
Taxes on income  87   1,488   -   -   1,722 
                     
Net income (loss)  649   (4,925)  (236)  (1,041)  (6,733)
                     
Other Comprehensive Income (loss):                    
Items that may be reclassified to profit or loss in subsequent periods:                    
Gain (loss) on available for sale financial assets  15   14   3   (32)  (54)
Gain (loss) on cash flow hedges  303   124   (69)  44   47 
Net amounts transferred to the statement of profit or loss for cash flow hedges  (219)  (71)  (103)  (1)  (73)
Items that will not be reclassified to profit or loss in subsequent periods:                    
Actuarial net gain of defined benefit plans  -   -   -   -   (22)
Total comprehensive income (loss) $748  $(4,858) $(405) $(1,030) $(6,835)
                     
Earnings (loss) per share attributable to equity holders of the Company:
                    
Basic earnings (loss) per share $0.02  $(0.14) $(0.01) $(0.03) $(0.18)
                     
Diluted earnings (loss) per share $0.02  $(0.14) $(0.01) $(0.03) $(0.18)
 
The accompanying Notes are an integral part of the Consolidated Financial Statements.

F - 3

 
Kamada Ltd. and its subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

  Share Capital  Share premium  Capital reserve from available for sale financial assets  Capital reserve due to translation to presentation currency  Capital reserve from hedges  Capital reserve from share-based payments  Capital reserve from employee benefits  Accumulated deficit  Total equity 
  Unaudited 
  In thousands 
Balance as of January 1, 2017 (audited)
 $9,320  $162,671  $19  $(3,490) $(27) $9,795  $(81) $(111,464) $66,743 
Net income  -   -   -   -   -   -   -   649   649 
                                     
Other comprehensive income  -   -   15   -   84   -   
-
   -   99 
Total comprehensive income  -   -   15       84       -   649   748 
Exercise of  share-based payment  into shares  2   41   -   -   -   (41)  -   -   2 
Issuance of ordinary shares, net of issuance costs  1,077   
14,481
   -   -   -   -       -   15,558 
Cost of share-based payment  -   -   -   -   -   659   -   -   659 
Balance as of  September  30, 2017 $10,399  $177,193  $34  $(3,490) $57  $10,413  $(81) $(110,815) $83,710 

F - 4

Kamada Ltd. and its subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 
  Share Capital  Share premium  Capital reserve from available for sale financial assets  Capital reserve due to translation to presentation currency  Capital reserve from hedges  Capital reserve from share-based payments  Capital reserve from employee benefits  Accumulated deficit  Total equity 
  Unaudited 
  In thousands 
Balance as of January 1, 2016 (audited)
 $9,320  $162,238  $73  $(3,490) $(1) $9,157  $(59) $(104,731) $72,507 
Loss  -   -   -   -   -   -   -   (4,925)  (4,925)
                                     
Other comprehensive income  -   -   14   -   53   -   
-
   -   67 
Total comprehensive income (loss)  -   -   14   -   53   -   -   (4,925)  (4,858)
Exercise of options into shares, net  *   *   -   -   -   *   -   -   * 
Forfeiture  of options  -   411   -   -   -   (411)  -   -   - 
Cost of share-based payment  -   -   -   -   -   1,022   -   -   1,022 
Balance as of  September 30, 2016
 $9,320  $162,649  $87  $(3,490) $52  $9,768  $(59) $(109,656) $68,671 

F - 5

Kamada Ltd. and its subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

  Share Capital  Share premium  Capital reserve from available for sale financial assets  Capital reserve due to translation to presentation currency  Capital reserve from hedges  Capital reserve from share-based payments  Capital reserve from employee benefits  Accumulated deficit  Total equity 
  Unaudited 
  In thousands 
Balance as of July 1, 2017
 $9,321  $162,686  $31  $(3,490) $229  $10,221  $(81) $(110,579) $68,338 
Net loss  -   -   -   -   -   -   -   (236)  (236)
Other comprehensive income (loss)  -   -   3   -   (172)  -   -   -   (169)
Total comprehensive income (loss)  -   -   3   -   (172)  -   -   (236)  (405)
Exercise of  share-based payment  into shares  1   26               (26)          1 
Issuance of ordinary shares, net of issuance costs  1,077   14,481   -   -   -       -   -   15,558 
Cost of share-based payment  -   -   -   -   -   218   -   -   218 
Balance as of  September  30, 2017 $10,399  $177,193  $34  $(3,490) $57  $10,413  $(81) $(110,815) $83,710 
 
*Represent an amount of less than 1 thousands.
 
The accompanying Notes are an integral part of the Consolidated Financial Statements.

  Share Capital  Share premium  Capital reserve from available for sale financial assets  Capital reserve due to translation to presentation currency  Capital reserve from hedges  Capital reserve from share-based payments  Capital reserve from employee benefits  
Accumulated
deficit
  Total equity 
  Unaudited 
  In thousands 
Balance as of July 1, 2016
 $9,320  $162,649  $119  $(3,490) $9  $9,455  $(59) $(108,615)  69,388 
Loss  -   -   -   -   -   -   -   (1,043)  (1,043)
Other comprehensive income (loss)  -   -   (32)  -   43   -   -   -   11 
Total comprehensive income (loss)  -   -   (32)  -   43   -   -   (1,043)  (1,030)
Exercise of options into shares, net  *   *   -   -   -   -   -   -   * 
Cost of share-based payment  -   -   -   -   -   313   -   -   313 
Balance as of  September 30, 2016
 $9,320  $162,649  $87  $(3,490) $52  $9,768  $(59) $(109,656) $68,671 
 
F - 6


Kamada Ltd. and its subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

  Share capital  Share premium  Available for sale reserve  Capital reserve due to translation to presentation currency  Capital reserve from hedges  Capital reserve from share-based payments  Capital reserve from employee benefits  Accumulated deficit  Total equity 
  Audited 
  In thousands 
Balance as of December 31, 2015 (audited)
 $9,320  $162,238  $73  $(3,490) $(1) $9,157  $(59) $(104,731) $72,507 
Net loss  -   -   -   -   -   -   -   (6,733)  (6,733)
Other comprehensive loss  -   -   (54)  -   (26)  -   (22)  -   (102)
Total comprehensive loss  -   -   (54)  -   (26)  -   (22)  (6,733)  (6,835)
Exercise of options into shares  *   433   -   -   -   (433)  -   -   * 
Cost of share-based payment  -   -   -   -   -   1,071   -   -   1,071 
Balance as of December 31, 2016 $9,320  $162,671  $19  $(3,490) $(27) $9,795  $(81) $(111,464) $66,743 

*Represent an amount of less than 1 thousand
 
The accompanying Notes are an integral part of the Consolidated Financial Statements.

F - 7


Kamada Ltd. and its subsidiaries
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  
Nine months period Ended
September 30,
  
Three months period Ended
September 30,
  
Year Ended
December 31,
 
  2017  2016  2017  2016  2016 
  Unaudited  Audited 
  In thousands 
                
Cash Flows from Operating Activities
               
                
Net gain (loss) $649  $(4,925) $(236) $(1,041) $(6,733)
                     
Adjustments to reconcile gain (loss) to net cash provided by (used in) operating activities:                    
                     
Adjustments to the profit or loss items:                    
                     
Depreciation, amortization and impairment of equipment  2,648   2,631   903   922   3,501 
Finance expense ( income), net  263   (150)  (78)  22   (470)
Cost of share-based payment  659   1,022   218   313   1,071 
Income tax expense  87   1,488   -   -   1,722 
Loss (gain) from sale of property and equipment  (49)  (23)  (4)  (33)  (18)
Change in employee benefit liabilities, net  278   11   137   396   (87)
                     
   3,886   4,979   1,176   1,620   5,719 
Changes in asset and liability items:
                    
                     
Decrease (increase) in trade receivables, net  (2,924)  8,948   863   1,644   3,489 
Decrease  in other accounts receivables  (393)  (654)  (547)  (801)  211 
 Decrease (increase) in inventories  2,450   (1,750)  928   235   742 
Decrease (increase) in deferred expenses  872   (487)  (132)  287   (433)
Decrease in trade payables  (3,885)  (8,277)  (1,906)  (1,408)  (2,650)
Increase in other accounts payables  716   681   (473)  (45)  1,520 
Increase (decrease)  in deferred revenues  (1,691)  2,022   (1,238)  (987)  1,035 
                     
   (4,855)  483   (2,505)  (973)  3,914 
Cash received (paid) during the period for:                    
Interest paid  (16)  (46)  (7)  (37)  (60)
Interest received  266   657   117   233   842 
Taxes paid  (14)  (1,781)  (4)  (1,475)  (1,785)
                     
   236   (1,170)  106   (1,279)  (1,003)
                     
Net cash provided by (used in) operating activities $(84) $(633) $(1,459) $(1,673) $1,897 

The accompanying Notes are an integral part of the Consolidated Financial Statements.

F - 8

Kamada Ltd. and its subsidiaries
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  
Nine months period Ended
September 30,
  
Three months period Ended
September 30,
  
Year Ended
December 31,
 
  2017  2016  2017  2016  2016 
  Unaudited  Audited 
  Thousands of US dollar 
                
Cash Flows from Investing Activities
               
 Proceeds from sale of )investment in) short term investments, net $(9,068) $2,369  $(12,041) $1,593  $4,236 
 Purchase of property and equipment  (3,407)  (1,904)  (792)  (435)  (2,641)
 Proceeds from sale of property and equipment  57   41   4   20   42 
                     
Net cash provided by (used in) investing activities  (12,418)  506   (12,829)  1,178   1,637 
                     
Cash Flows from Financing Activities
                    
Proceeds from exercise of share base payment  2   *   1   *   * 
Receipt of long-term loans  279   1,701   279   -   1,701 
Repayment of long-term loans  (380)  (159)  (142)  (98)  (211)
Proceeds from issuance of ordinary shares, net  15,558   -   15,558   -   - 
                     
Net cash provided by (used in) financing activities  15,459   1,542   15,696   (98)  1,490 
                     
Exchange differences on balances of cash and cash equivalent
  (769)  14   (276)  (67)  (103)
                     
Increase (decrease) in cash and cash equivalents
  2,188   1,429   1,132   (660)  4,921 
                     
Cash and cash equivalents at the beginning of the period
  9,968   5,047   11,024   7,136   5,047 
                     
Cash and cash equivalents at the end of the period
 $12,156  $6,476  $12,156  $6,476  $9,968 
                     
Significant non-cash transactions
                    
                     
Purchase of property and equipment through capital lease $282  $132  $-  $48  $132 
Purchase of property and equipment $398  $-  $398  $-  $1,968 
 
* Represent an amount of less than 1 thousand
 
The accompanying Notes are an integral part of the Consolidated Financial Statements.

F - 9

 
Kamada Ltd. and its subsidiaries
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1:-General

These Financial Statements have been prepared in a condensed format as of September 30, 2017 and for the nine and three months then ended ("interim consolidated financial statements").

These financial statements should be read in conjunction with the Company's annual financial statements as of December 31, 2016 and for the year then ended and the accompanying notes ("annual consolidated financial statements").
 
Note 2:-Significant Accounting Policies

a.
Basis of preparation of the interim consolidated financial statements:

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, "Interim Financial Reporting".

Note 3:-           Operating Segments

a.General:

The Company has two operating segments, as follows:

Proprietary Products-Medicine development, manufacture and sale of plasma-derived therapeutics products.
   
Distribution-Distribution of drugs in Israel manufacture by other companies for clinical uses, most of which are produced from plasma or its derivatives products.

b.Reporting on operating segments:

  Proprietary Products  Distribution  Total 
  Unaudited 
Nine months period ended September 30, 2017
         
          
Revenues $50,568  $16,547  $67,115 
             
Gross profit $17,841  $2,617   20,458 
             
Unallocated corporate expenses          (19,459)
Finance expense, net          (263)
             
Gain before taxes on income         $736 

F - 10

Kamada Ltd. and its subsidiaries
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3:-Operating Segments (Cont.)
 
  Proprietary Products  Distribution  Total 
  Unaudited 
Nine  months period ended September 30, 2016
         
          
Revenues $38,270  $14,966  $53,236 
             
Gross profit $14,427  $2,255   16,682 
             
Unallocated corporate expenses          (20,269)
Finance income, net          150 
             
Loss before taxes on income         $(3,437)
 
  Proprietary Products  Distribution  Total 
  Unaudited 
Three  months period ended September 30, 2017
         
          
Revenues $17,058  $5,860  $22,918 
             
Gross profit $5,549  $899   6,448 
             
Unallocated corporate expenses          (6,762)
Finance expense, net          78 
             
Loss before taxes on income         $(236)

  Proprietary Products  Distribution  Total 
  Unaudited 
Three months period ended September 30, 2016
         
          
Revenues $15,044  $4,329  $19,373 
             
Gross profit $5,611  $665   6,276 
             
Unallocated corporate expenses          (7,295)
Finance income, net          (22)
             
Loss before taxes on income         $(1,041)

  Proprietary Products  Distribution  Total 
  In thousands 
  Audited 
          
Year Ended December 31, 2016
         
          
Revenues $55,958  $21,536  $77,494 
             
Gross profit $18,525  $3,125  $21,650 
             
Unallocated corporate expenses          (27,131)
Finance income, net          470 
             
 Loss before taxes on income         $(5,011)

F - 11

Kamada Ltd. and its subsidiaries
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
Note  4:-Financial Instruments
 
a.         Classification of financial instruments by fair value hierarchy

            Financial assets (liabilities) measured at fair value
 
  Level 1  Level 2 
  In thousands 
September 30, 2017
      
Marketable securities at fair value through profit or loss:      
Equity shares $79  $- 
Mutual funds  442   - 
Debt securities (corporate and government)  1,167   - 
   1,688     
Derivatives instruments $-  $93 
Available for sale debt securities (corporate and government) $-  $8,162 
         
  $1,688  $8,255 
September 30, 2016
        
Marketable securities at fair value through profit or loss:        
Equity shares $75   - 
Mutual funds  393   - 
Debt securities (corporate and government)  1,054  $- 
   1,522   - 
         
Derivatives instruments $-  $38 
Available for sale debt securities (corporate and government) $-  $19,201 
         
  $1,522  $19,239 
December 31, 2016
        
Marketable securities at fair value through profit or loss:        
Equity shares  70  $- 
Mutual funds  388   - 
Debt securities (corporate and government)  1,032   - 
   1,490   - 
         
Derivatives instruments  -   (32)
Available for sale debt securities (corporate and government)  -   9,164 
         
  $1,490  $9,132 

 
b.During the nine months ended on September 30, 2017 there was no transfer due to the fair value measurement of any financial instrument from Level 1 to Level 2, and furthermore, there were no transfers to or from Level 3 due to the fair value measurement of any financial instrument.

F - 12

Kamada Ltd. and its subsidiaries
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 5:-Significant Events during the period
 
a.Commencing January 1, 2017, the Israeli corporate tax rate was reduced from 25% to 24%.

b.On August 2, 2017 the Company had a public offering on the NASDAQ of 3,333,334 shares at $4.5 per share. As part of the offering, the underwriters received a right to purchase an additional 500,000 ordinary shares to cover over-allotments at the same price per share. This option was fully exercise on August 30, 2017. The Company's total net proceeds from the issuance of the above shares were $15.6 million.

c.On July 31, 2017 the Company's Board of Directors approved to grant share base payment to the Company's employees, management and directors. The share base payment grants are as follows:
 
1.
A grant of 398,450 options at a range of an exercise price of NIS 20.94 to NIS 21.99 per option and 48,669 restricted shares (“RS”) (with no exercise price) to the Company’s management and employees. The options are exercisable into ordinary shares. According to a calculation formula based on the Binomial Model, the fair value of the options and of the RSs was estimated at $583 thousands and $220 thousands, respectively.
 
2.The grant of 18,000 options at an exercise price of NIS 21.99 per option and 6,000 RS to Mr. Amir London, the Company’s CEO. The options are exercisable into ordinary shares. The fair value of the options and of the RSs was estimated at $38 thousands and $27 thousands, respectively.
 
3.The grant of 40,000 options at an exercise price of NIS 21.99 per option to board members at a fair value of approximately $85 thousands.
 
The grant of options to the board members and the grant of options and RS to Mr. Amir London are subject to the approval of the General Meeting of Shareholders of the Company that is scheduled on November 30, 2017.

d.In August 2017, the Company received the Food and Drug Administration (FDA) approval for marketing the KamRAB, a post exposure prophylaxis product for the prevention of rabies in human beings, in the United States. The Company expects to start marketing the product in 2018.
 
 
F - 13