Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Nano Dimension Ltd. |
Entity Central Index Key | 0001643303 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 209,453,259 |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | L3 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Assets | |||
Cash | $ 3,894 | $ 3,753 | |
Restricted deposits | 31 | 21 | |
Trade receivables | 1,816 | 1,313 | |
Other receivables | 570 | 570 | |
Inventory | 3,543 | 3,116 | |
Total current assets | 9,854 | 8,773 | |
Restricted deposits | 377 | 347 | |
Property plant and equipment, net | 4,743 | 5,200 | |
Right of use assets | 2,673 | ||
Intangible assets | 5,211 | 5,983 | |
Total non-current assets | 13,004 | 11,530 | |
Total assets | 22,858 | 20,303 | |
Liabilities | |||
Trade payables | 850 | 1,414 | |
Other payables | 3,575 | 2,178 | |
Total current liabilities | 4,425 | 3,592 | |
Liability in respect of government grants | 1,044 | 895 | |
Lease liability | 2,089 | ||
Liability in respect of convertible notes and warrants | 3,698 | ||
Other long-term liabilities | 244 | ||
Total non-current liabilities | 6,831 | 1,139 | |
Total liabilities | 11,256 | 4,731 | |
Equity | |||
Share capital | 6,441 | 3,291 | |
Share premium and capital reserves | 65,202 | 63,969 | |
Treasury shares | (1,509) | (1,509) | |
Presentation currency translation reserve | 1,431 | 1,431 | |
Accumulated loss | (59,963) | (51,610) | |
Total equity | 11,602 | 15,572 | |
Total liabilities and equity | $ 22,858 | $ 20,303 | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Other Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit (loss) [abstract] | |||
Revenues | $ 7,070 | $ 5,100 | $ 829 |
Cost of revenues | 4,312 | 3,594 | 409 |
Cost of revenues - amortization of intangible | 772 | 772 | 743 |
Total cost of revenues | 5,084 | 4,366 | 1,152 |
Gross profit (loss) | 1,986 | 734 | (323) |
Research and development expenses, net | 8,082 | 8,623 | 10,819 |
Sales and marketing expenses | 5,469 | 4,259 | 2,183 |
General and administrative expenses | 3,270 | 3,002 | 3,363 |
Operating loss | (14,835) | (15,150) | (16,688) |
Finance income | 8,765 | 54 | 102 |
Finance expense | 2,283 | 392 | 917 |
Total comprehensive loss | $ (8,353) | $ (15,488) | $ (17,503) |
Basic and diluted loss per share (USD) | $ (0.05) | $ (0.17) | $ (0.31) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share capital | Share premium and capital reserves | Treasury shares | Presentation currency translation reserve | Accumulated loss | Total | |
Beginning Balance at Dec. 31, 2016 | $ 1,960 | $ 37,893 | $ (1,509) | $ (422) | $ (18,619) | $ 19,303 | |
Loss for the year | (17,503) | (17,503) | |||||
Currency translation | 1,853 | 1,853 | |||||
Issuance of Ordinary Shares and warrants, net | 324 | 12,096 | 12,420 | ||||
Exercise of warrants and options | 20 | 289 | 309 | ||||
Share-based payments | 3 | 1,781 | 1,784 | ||||
Ending Balance at Dec. 31, 2017 | 2,307 | 52,059 | (1,509) | 1,431 | (36,122) | 18,166 | |
Loss for the year | (15,488) | (15,488) | |||||
Issuance of Ordinary Shares, net | 981 | 11,490 | 12,471 | ||||
Exercise of warrants and options | 3 | (3) | |||||
Share-based payments | 423 | 423 | |||||
Ending Balance at Dec. 31, 2018 | 3,291 | 63,969 | (1,509) | 1,431 | (51,610) | 15,572 | [1] |
Loss for the year | (8,353) | (8,353) | |||||
Issuance of Ordinary Shares, net | 2,216 | (633) | 1,583 | ||||
Exercise of warrants, options and conversion of convertible notes | 934 | 1,421 | 2,355 | ||||
Share-based payments | 445 | 445 | |||||
Ending Balance at Dec. 31, 2019 | $ 6,441 | $ 65,202 | $ (1,509) | $ 1,431 | $ (59,963) | $ 11,602 | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash flow from operating activities: | ||||||
Net loss | $ (8,353) | $ (15,488) | [1] | $ (17,503) | [1] | |
Adjustments: | ||||||
Depreciation and amortization | 2,666 | 1,943 | [1] | 1,311 | [1] | |
Financing expenses, net | 2,035 | 412 | [1] | 797 | [1] | |
Revaluation of financial liabilities accounted at fair value | (8,707) | [1] | [1] | |||
Loss from disposal and sale of fixed assets | 18 | 537 | [1] | 80 | [1] | |
Share-based payments | 439 | 402 | [1] | 1,750 | [1] | |
Profit loss | (3,549) | 3,294 | [1] | 3,938 | [1] | |
Changes in assets and liabilities: | ||||||
Increase in inventory | (442) | (1,410) | [1] | (2,230) | [1] | |
Decrease in other receivables | 13 | [1] | 201 | [1] | ||
Decrease in trade payables | (503) | (1,219) | [1] | (49) | [1] | |
Increase in other payables | 718 | 287 | [1] | 98 | [1] | |
Increase (decrease) in trade payables | (555) | 1,134 | [1] | (193) | [1] | |
Decrease in other long-term liabilities | (58) | [1] | (59) | [1] | ||
Changes in assets and liabilities | (782) | (1,253) | [1] | (2,232) | [1] | |
Net cash used in operating activities | (12,684) | (13,447) | [1] | (15,797) | [1] | |
Cash flow from investing activities: | ||||||
Change in restricted bank deposits | (40) | 86 | [1] | (179) | [1] | |
Acquisition of property plant and equipment | (601) | (1,319) | [1] | (3,514) | [1] | |
Proceeds from sale of property plant and equipment | 1 | [1] | 2 | [1] | ||
Net cash used in investing activities | (641) | (1,232) | [1] | (3,691) | [1] | |
Cash flow from financing activities: | ||||||
Proceeds from issuance of Ordinary Shares, warrants and convertible notes, net | 14,367 | 12,471 | [1] | 12,420 | [1] | |
Exercise of warrants and options | 282 | [1] | 309 | [1] | ||
Lease payments | (1,095) | [1] | [1] | |||
Amounts recognized in respect of government grants liability, net | (113) | 9 | [1] | 379 | [1] | |
Net cash provided by financing activities | 13,441 | 12,480 | [1] | 13,108 | [1] | |
Increase (decrease) in cash | 116 | (2,199) | [1] | (6,380) | [1] | |
Cash at beginning of the year | [1] | 3,753 | 6,103 | 12,379 | ||
Effect of exchange rate fluctuations on cash | 25 | (151) | [1] | 104 | [1] | |
Cash at end of year | 3,894 | 3,753 | [1] | 6,103 | [1] | |
Non-cash transactions: | ||||||
Property plant and equipment acquired on credit | $ 9 | [1] | $ 241 | [1] | ||
[1] | See Note 2.C regarding initial application of IFRS 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
General
General | 12 Months Ended |
Dec. 31, 2019 | |
General [Abstract] | |
General | Note 1 General A. Reporting Entity Nano Dimension Ltd. (the “Company”) is an Israeli resident company incorporated in Israel. The address of the Company’s registered office is 2 Ilan Ramon St., Ness Ziona, Israel. The consolidated financial statements of the Company as of December 31, 2019, comprise the Company and its subsidiaries in Israel, in the United States, and in Hong Kong (together referred to as the “Group”). The Company engages, by means of the subsidiary Nano Dimension Technologies Ltd. (“Nano–Technologies”), in the development of a three-dimensional (“3D”) additive manufacturing system and nanotechnology based conductive and dielectric inks, which are supplementary products to the additive manufacturing system. The Ordinary Shares of the Company are registered for trade on the Tel Aviv Stock Exchange. In addition, since March 2016, the Company’s American Depositary Shares (“ADSs”) have been trading on the Nasdaq Capital Market. On February 20, 2020, the Company announced that its Ordinary Shares will voluntarily delist from trading on the Tel Aviv Stock Exchange. The delisting will occur on May 20, 2020. B. Since August 25, 2014, the Company has devoted substantially all of its financial resources to develop its products and has financed its operations primarily through the issuance of equity securities. The amount of the Company’s future net profits or losses will depend, in part, on the rate of its future expenditures, its ability to generate significant revenues from the sale of its products, and its ability to obtain funding through the issuance of securities, strategic collaborations or grants. Starting in the fourth quarter of 2017, the Group began to commercialize its products and has generated revenues, mainly from sales of its 3D printers. The Group’s ability to generate revenue and achieve profitability depends on its ability to successfully commercialize its products. Based on the projected cash flows, cash balance as of December 31, 2019, and the public offering in February 2020, management is of the opinion that without further fund raising it will not have sufficient resources to enable it to continue its operating activities, including the development, manufacturing and marketing of its products for a period of at least 12 months from the sign-off date of these consolidated financial statements. As a result, there is a substantial doubt about the Company’s ability to continue as a going concern. Management’s plans include continuing commercialization of the Company’s products and securing sufficient funding through the sale of additional equity securities. There are no assurances however, that the Company will be successful in obtaining the level of financing needed for its operations. If the Company is unsuccessful in commercializing its products and securing sufficient funding, it may need to reduce activities, curtail or even cease operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. C. The Operating Cycle The operating cycle period of the Group is 12 months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Except for the change in accounting policy described in section C below, the accounting policies of the Group set out below have been applied consistently for all periods presented in these consolidated financial statements, and have been applied consistently by Group entities. A. Basis for presentation of the financial statements The Group’s financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended on December 31, 2019, comply with IFRS as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on the historical cost basis. The consolidated financial statements were authorized for issuance by the Company’s board of directors on March 9, 2020. B. Use of estimates and judgments The preparation of financial statements in conformity with IFRS as issued by the IASB requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of accounting estimates used in the preparation of the Group’s financial statements requires management of the Company to make assumptions regarding circumstances and events that involve considerable uncertainty. Management of the Company prepares the estimates on the basis of past experiences, various facts, external circumstances, and reasonable assumptions according to the pertinent circumstances of each estimate. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Below is information about significant assumptions made by the Group with respect to estimates and judgments: - Recoverable amount of cash generating unit The Company determined that all its assets operate as a single cash-generating unit. As of December 31, 2019, the market value of the Company’s assets was less than their book value and accordingly, the Company assessed their value in use. The value in use assessment has been performed with the assistance of an external independent valuator and was determined by discounting the future cash flows to be generated from the continuing use of the unit based on a four-year cash flow forecast and a terminal value for the representative year. Based on the valuation, as of December 31, 2019, the value in use was significantly higher than its book value and accordingly no impairment has been recorded. The valuation of the value in use included key assumptions such as revenue growth and discount rates. Changes in these assumptions may have an impact on future impairment losses recognition. - Fair value measurement of financial instruments The Company accounts for financial liabilities relating to convertible notes, warrants and related derivatives at fair value through profit or loss. The fair value of these instruments are determined by using the Monte Carlo simulation method and the Black-Scholes model and assumptions regarding unobservable inputs used in the valuation model including the probability of meeting revenue targets, and weighted average cost of capital, all of which can lead to profit or loss from a change in the fair value of these instruments. For information on details regarding fair value measurement at Level 3 and sensitivity analysis see Note 18.D regarding financial instruments. C. Changes in accounting policies Initial application of new standards, amendments to standards and interpretations IFRS 16 (Leases) As from January 1, 2019 (the “date of initial application”), the Group applies IFRS 16, Leases (“IFRS 16”), which replaced IAS 17, Leases (“IAS 17”). The main effect of the IFRS 16’s application is reflected in annulment of the existing requirement from lessees to classify leases as operating (off-balance sheet) or finance leases and the presentation of a unified model for lessees to account for all leases similarly to the accounting treatment of finance leases in IAS 17. Until the date of initial application, the Group classified most of the leases in which it is the lessee as operating leases, since it did not substantially bear all the risks and rewards from the assets. In accordance with IFRS 16, for agreements in which the Group is the lessee, the Group recognizes a right-of-use asset and a lease liability at the inception of the lease contract for all the leases in which the Group has a right to control identified assets for a specified period of time, other than exceptions specified in the standard. Accordingly, the Group recognizes depreciation and amortization expenses in respect of a right-of-use asset, tests a right-of-use asset for impairment in accordance with IAS 36, Impairment of Assets, and recognizes financing expenses on a lease liability. Therefore, as from the date of initial application, lease payments relating to assets leased under an operating lease, which were presented as part of research and development, general and administrative, and sales and marketing expenses in the statement of profit or loss, are capitalized to assets and written down as depreciation and amortization expenses. The Group elected to apply IFRS 16 using the modified retrospective approach, with an adjustment to the balance of retained earnings as at January 1, 2019, and without a restatement of comparative data. In respect of all the leases, the Group elected to apply the transitional provisions, such that on the date of initial application, it recognized a liability at the present value of the balance of future lease payments discounted at its incremental borrowing rate at that date calculated according to the average duration of the remaining lease period, as from the date of initial application, and concurrently recognized a right-of-use asset at the same amount of the liability, adjusted for any prepaid or accrued lease payments that were recognized as an asset or liability before the date of initial application. Therefore, application of IFRS 16 did not have an effect on the Group’s equity at the date of initial application. Furthermore, as part of the initial application of IFRS 16, the Group has chosen to apply the following expedients: (1) Not separating non-lease components from lease components and instead accounting for all the components as a single lease component; and (2) Applying the practical expedient regarding the recognition and measurement of short-term leases, for both leases that end within 12 months from the date of initial application and leases for a period of up to 12 months from the date of their inception for all groups of underlying assets to which the right-of-use relates. The table below presents the cumulative effects of the items affected by the initial application on the statement of financial position as at January 1, 2019: According to IAS 17 The change According to IFRS 16 Thousands Thousands USD Thousands USD Right-of-use assets - 1,891 1,891 Other payables (57 ) 57 - Lease liabilities - (2,192 ) (2,192 ) Other long-term liabilities (244 ) 244 - In measurement of the lease liabilities, the Group discounted lease payments using the nominal incremental borrowing rate at January 1, 2019. The discount rates used to measure the major components of the lease liability range between 11.2% and 11.98%. This range is affected by differences in the lease term and differences between asset groups. D. Subsidiary A subsidiary is an entity controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control is lost. The accounting policies of the subsidiaries are aligned with the policies adopted by the Group. E. Functional currency and presentation currency (1) Functional and presentation currency These consolidated financial statements are presented in U.S. dollars (“USD”), which is the Company’s functional currency, and have been rounded to the nearest thousands, except when otherwise indicated. The USD is the currency that represents the principal economic environment in which the Company operates. (2) Foreign currency transactions Transactions in currencies other than the U.S. dollar are translated to the functional currency of the Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortized cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognized in profit or loss. (3) Index linked financial items Financial assets and liabilities which according to their terms are linked to changes in the Israeli Consumer Price Index (the “Index”) are adjusted according to the relevant Index on every reporting date in accordance with the terms of the agreement. Linkage differences deriving from said adjustment are recorded to profit and loss. (4) Below are details regarding the exchange rate of the New Israeli Shekel (“NIS”) and the Euro and the Index of the NIS: Consumer Price Index Euro NIS December 31, 2019 100.8 1.10 0.29 December 31, 2018 100.2 1.14 0.27 December 31, 2017 100.4 1.20 0.29 Change in percentages: Year ended December 31, 2019 (0.05 ) (3.5 ) 7.40 Year ended December 31, 2018 (0.19 ) (5 ) (6.89 ) Year ended December 31, 2017 (0.47 ) 14.28 11.53 F. Financial instruments (1) Non-derivative financial assets – policy applicable as from January 1, 2018 Initial recognition and measurement of financial assets The Group initially recognizes trade receivables on the date that they are created. All other financial assets are recognized initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. A financial asset is initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial asset. A trade receivable without a significant financing component is initially measured at the transaction price. Receivables originating from contract assets are initially measured at the carrying amount of the contract assets on the date classification was changed from contract asset to receivables. Derecognition of financial assets Financial assets are derecognized when the contractual rights of the Group to the cash flows from the asset expire, or the Group transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset were transferred. When the Group retains substantially all of the risks and rewards of ownership of the financial asset, it continues to recognize the financial asset. Classification of financial assets into categories and the accounting treatment of each category Financial assets are classified at initial recognition to one of the following measurement categories: amortized cost; fair value through other comprehensive income – investments in debt instruments; fair value through other comprehensive income – investments in equity instruments; or fair value through profit or loss. The Group does not expect to incur any credit loss, thus the financial statements do not include provision for expected credit loss. All financial assets not classified as measured at amortized cost or fair value through other comprehensive income as described above, as well as financial assets designated at fair value through profit or loss, are measured at fair value through profit or loss. On initial recognition, the Group designates financial assets at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. The Group has balances of trade and other receivables and deposits that are held within a business model whose objective is collecting contractual cash flows. The contractual cash flows of these financial assets represent solely payments of principal and interest that reflect consideration for the time value of money and the credit risk. Accordingly, these financial assets are measured at amortized cost. (2) Non-derivative financial assets – policy applicable before January 1, 2018 Initial recognition and measurement of financial assets The Group initially recognizes loans and receivables and deposits on the date that they are created. Non-derivative financial instruments are comprised of trade and other receivables, cash and deposits. Derecognition of financial assets Financial assets are derecognized when the contractual rights of the Group to the cash flows from the asset expire, or the Group transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. When the Group retains substantially all of the risks and rewards of ownership of the financial asset, it continues to recognize the financial asset. Classification of financial assets into categories and the accounting treatment of each category The Group classifies its financial assets according to the following categories: Financial assets at fair value through profit or loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy, provided that the designation is intended to prevent an accounting mismatch, or the asset is a combined instrument including an embedded derivative. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. Financial assets designated at fair value through profit or loss also include equity investments that otherwise would have been classified as available for sale. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses. Loans and receivables comprised of cash and cash deposits and trade and other receivables. Cash includes cash balances available for immediate use. Deposits include short-term deposits with banking corporations (with original maturities of three months or more) that are readily convertible into known amounts of cash and are exposed to insignificant risks of change in value. (3) Non-derivative financial liabilities Non-derivative financial liabilities include trade and other payables. Initial recognition of financial liabilities The Group initially recognizes financial liabilities on the trade date at which the Group becomes a party to the contractual provisions of the instrument. Subsequent measurement of financial liabilities Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Transaction costs directly attributable to an expected issuance of an instrument that will be classified as a financial liability are recognized as an asset in the framework of deferred expenses in the statement of financial position. These transaction costs are deducted from the financial liability upon its initial recognition, or are amortized as financing expenses in the statement of profit or loss and other comprehensive income when the issuance is no longer expected to occur. Derecognition of financial liabilities Financial liabilities are derecognized when the obligation of the Group, as specified in the agreement, expires or when it is discharged or cancelled. Offset of financial instruments Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. G. Property plant and equipment Property plant and equipment are presented according to cost, including directly attributed acquisition costs, minus accumulated depreciation and losses from accrued decrease in value. Improvements and upgrades are included in the assets’ costs whereas maintenance and repair costs are recognized in profit and loss as accrued. Gains and losses on disposal of a fixed asset item are determined by comparing the net proceeds from disposal with the carrying amount of the asset, and are recognized in their corresponding section, in profit or loss. The cost of printers used for internal purposes, which are classified as property, plant and equipment, includes the cost of materials and direct labor, and any other costs directly attributable to bringing the assets to a working condition for their intended use. The depreciation is calculated in equal yearly rates during the period of the useful life span of the assets, as follows: % Machinery and equipment (mainly 7%) 7 - 25 Computers 20 - 33 Office furniture and equipment 7 - 15 Leasehold Improvements 7 - 10 Printers leased to customers 25 Depreciation methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. H. Inventory Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted averages method, and includes expenditure incurred in acquiring the inventories and the costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. I. Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value, minus the costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the assessments of market participants regarding the time value of money and the risks specific to the asset, for which the estimated future cash flows from the asset were not adjusted. An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. See also note 2.B of impairment test performed as of December 31, 2019. J. Provisions A provision for claims is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. When the value of time is material, the provision is measured at its present value. K. Treasury shares and Ordinary Shares When share capital recognized as equity is repurchased by the Group, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus on the transaction is carried to share premium, whereas a deficit on the transaction is deducted from retained earnings. Ordinary Shares are classified as equity. Incremental costs directly attributable to the issuance of Ordinary Shares and share options are recognized as a deduction from equity, net of any tax effects. L. Revenue recognition The Company early adopted IFRS 15, Revenues from Contracts with Customers, in the financial statements for the year ended December 31, 2017. IFRS 15 provides new guidance on revenue recognition, on a retrospective basis. The Company recognizes revenue when the customer obtains control over the promised goods or services. The revenue is measured according to the amount of the consideration to which the Company expects to be entitled in exchange for the goods or services promised to the customer, other than amounts collected for third parties. The Company accounts for a contract with a customer only when the following conditions are met: (a) The parties to the contract have approved the contract (in writing, orally or according to other customary business practices) and they are committed to satisfying the obligations attributable to them; (b) The Company can identify the rights of each party in relation to the goods or services that will be transferred; (c) The Company can identify the payment terms for the goods or services that will be transferred; (d) The contract has a commercial substance (i.e. the risk, timing and amount of the entity’s future cash flows are expected to change as a result of the contract); and (e) It is probable that the consideration, to which the Company is entitled to in exchange for the goods or services transferred to the customer, will be collected. If a contract with a customer does not meet all of the above criteria, consideration received from the customer is recognized as a liability until the criteria are met or when one of the following events occurs: the Company has no remaining obligations to transfer goods or services to the customer and any consideration promised by the customer has been received and cannot be returned; or the contract has been terminated and the consideration received from the customer cannot be refunded. On the contract’s inception date the Company assesses the goods or services promised in the contract with the customer and identifies as a performance obligation any promise to transfer to the customer goods or services (or a bundle of goods or services) that are distinct. The Company identifies goods or services promised to the customer as being distinct when the customer can benefit from the goods or services on their own or in conjunction with other readily available resources and the Company’s promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract. The Company’s identified performance obligations includes: printer, ink, maintenance (which is generally provided for a period of up to one year), training and installation. Revenue is allocated among performance obligations in a manner that reflects the consideration that the Company expects to be entitled to for the promised goods based on the standalone selling prices (“SSP”) of the goods or services of each performance obligation. SSP are estimated for each distinct performance obligation and judgment may be required in their determination. The best evidence of SSP is the estimated price of a product or service if the Company would sell them separately in similar circumstances and to similar customers. The Company allocates the transaction price to the identified performance obligations based on the residual approach, while allocating the estimated standalone selling prices for performance obligations relating to maintenance, training and installation services, and the residual is allocated to the printer. Revenues allocated to the printers, installation and training, and ink and other consumables are recognized when the control is passed at a point in time. Currently, the Company also sells its printers through resellers. The Company recognizes revenue to resellers at the time of sale to the resellers, assuming the Company has completed its obligations related to the sale. Maintenance revenue is recognized ratably, on a straight-line basis, over the period of the services. Revenue from training and installation is recognized during the time of performance. A contract asset is recognized when the Group has a right to consideration for goods or services it transferred to the customer that is conditional on other than the passing of time, such as future performance of the Group. Contract assets are classified as receivables when the rights in their respect become unconditional. A contract liability is recognized when the Group has an obligation to transfer goods or services to the customer for which it received consideration (or the consideration is payable) from the customer. M. Research and development and intangible assets Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group has the intention and sufficient resources to complete development and to use or sell the asset. The expenditure capitalized in respect of development activities includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use. In the fourth quarter of 2016, the Group ceased to capitalize development expenses and began to amortize the intangible asset arising from capitalization of development expenses, upon the initiation of its beta program. In subsequent periods, capitalized development expenditure is measured at cost minus accumulated amortization and accumulated impairment losses. N. Amortization of intangible assets Amortization is a systematic allocation of the amortizable amount of an intangible asset over its useful life. The amortizable amount is the cost of the asset, minus its residual value. Amortization is recognized in profit or loss on a straight-line basis, over the estimated useful lives of the intangible assets from the date they are available for use, since these methods most closely reflect the expected pattern of consumption of the future economic benefits embodied in each asset. The estimated useful lives of the capitalized development costs have been determined by the Company’s management as 10 years. Amortization methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. O. Government grants Government grants are recognized initially at fair value when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Grants from the Israeli Innovation Authority (the “Innovation Authority”), with respect to research and development projects, are accounted for as forgivable loans according to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. Grants received from the Innovation Authority are recognized as a liability according to their fair value on the date of their receipt, unless it is reasonably certain, on that date, that the amount received will not be refunded. The amount of the liability is reexamined each period, and any changes in the present value of the cash flows discounted at the original interest rate of the grant are recognized in profit or loss. The difference between the amount received and the fair value on the date of receiving the grant is recognized as a deduction of research and development expenses. Expenses related to revaluation of the liability in respect of government grants were recognized in the statements of profit or loss and other comprehensive income as finance expenses. P. Leases Policy applicable before January 1, 2019 Determining whether an arrangement contains a lease At inception or upon reassessment of an arrangement, the Group determines whether such an arrangement is or contains a lease. An arrangement is a lease or contains a lease if the following two criteria are met: ● The fulfilment of the arrangement is dependent on the use of a specific asset or assets; and ● The arrangement contains rights to use the asset. Leases that do not transfer substantially all the risks and rewards incidental to ownership of an underlying asset were classified as operating leases. The Group recognized operating lease payments as expenses on a straight-line basis over the lease term. Policy applicable as from January 1, 2019 Determining whether an arrangement contains a lease On the inception date of the lease, the Group determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In its assessment of whether an arrangement conveys the right to control the use of an identified asset, the Group assesses whether it has the following two rights throughout the lease term: (a) The right to obtain substantially all the economic benefits from use of the identified asset; and (b) The right to direct the identified asset’s use. For lease contracts that contain non-lease components, such as services or maintenance, that are related to a lease component, the Group elected to account for the contract as a single lease component without separating the components. Leased assets and lease liabilities Contracts that award the Group control over the use of a leased asset for a period of time in exchange for consideration, are accounted for as leases. Upon initial recognition, the Group recognizes a liability at the present value of the balance of future lease payments (these payments do not include certain variable lease payments), and concurrently recognizes a right-of-use asset at the same amount of the lease liability, adjusted for any prepaid or accrued lease payments, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the Group’s leases is not readily determinable, the incremental borrowing rate of the lessee is used. Subsequent to initial recognition, the right-of-use asset is accounted for using the cost model, and depreciated over the shorter of the lease term or useful life of the asset. The Group has elected to apply the practical expedient by which short-term leases of up to one year and/or leases in which the underlying asset has a low value, are accounted for such that lease payments are recognized in profit or loss on a straight-line basis, over the lease term, without recognizing an asset and/or liability in the statement of financial position. The lease term The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will or will not exercise the option, respectively. Variable lease payments Variable lease payments that depend on an index or a rate, are initially measured using the index or rate existing at the commencement of the lease and are included in the measurement of the lease liability. When the cash flows of future lease payments change as the result of |
Cash and Restricted Deposits
Cash and Restricted Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Restricted Deposits [Abstract] | |
Cash and Restricted Deposits | Note 3.A Cash December 31, 2018 2019 Thousands Thousands Bank accounts- dominated in NIS 583 348 Bank accounts- dominated in USD 3,167 3,536 Bank accounts- other 3 10 3,753 3,894 Note 3.B Restricted deposits 1. The Group has restricted deposits for its credit cards in an amount of $31,000. The deposits are not linked and bear an annual interest rate of 0.01%-0.05%. 2. The Group has a restricted deposit in the amount of $377,000 for the lease of its offices and labs and for credit cards. The deposit is not linked and bears an annual interest rate of 0.01%. The Group expect to lease its offices and labs for a period of more than a year, thus the restricted deposit was classified as a non-current asset. |
Trade Receivables and Other Rec
Trade Receivables and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade Receivables and Other Receivables [Abstract] | |
Trade receivable and Other receivables | Note 4.A Trade receivables December 31, 2018 2019 Thousands Thousands Open balances 1,233 1,816 Income receivables 80 - 1,313 1,816 Note 4.B Other receivables December 31, 2018 2019 Thousands Thousands Government authorities 354 332 Prepaid expenses 205 221 Others 11 17 570 570 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory [Abstract] | |
Inventory | Note 5 Inventory December 31, 2018 2019 Thousands Thousands Raw materials and work in progress 2,205 2,636 Finished goods 911 907 3,116 3,543 |
Property Plant and Equipment, N
Property Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant and Equipment Net [Abstract] | |
Property plant and equipment, net | Note 6 Property plant and equipment, net Machinery and equipment Computers Office furniture and equipment Leasehold improvements Printers leased to clients Total Thousands USD Thousands USD Thousands USD Thousands USD Thousands USD Thousands USD Cost As of January 1, 2018 3,427 416 151 1,676 301 5,971 Additions 1,551 61 7 43 90 1,752 Disposals (846 ) (6 ) - - (192 ) (1,044 ) As of December 31, 2018 4,132 471 158 1,719 199 6,679 Additions 770 5 32 26 - 833 Disposals (306 ) - (3 ) - (87 ) (396 ) Designation change 112 (112 ) - As of December 31, 2019 4,708 476 187 1,745 0 7,116 Depreciation accrued As of January 1, 2018 404 256 23 76 40 799 Additions 855 112 14 162 43 1,186 Disposals (467 ) (3 ) - - (36 ) (506 ) As of December 31, 2018 792 365 37 238 47 1,479 Additions 799 65 17 166 13 1,060 Disposals (133 ) - (1 ) - (32 ) (166 ) Designation change 28 - - - (28 ) - As of December 31, 2019 1,486 430 53 404 0 2,373 Carrying amount As of December 31, 2019 3,222 46 134 1,341 - 4,743 As of December 31, 2018 3,340 106 121 1,481 152 5,200 During the year ended December 31, 2019, the Group did not acquire property plant and equipment on credit, whereas during the year ended December 31, 2018 the Group acquired $9,000 of property plant and equipment on credit. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible assets | Note 7 Intangible assets Intangible assets include development costs that were capitalized. The expenditure capitalized in respect of development activities includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use. See also Note 2.N. 2018 2019 Thousands Thousands Balance as of January 1 6,755 5,983 Amortization (772 ) (772 ) Balance as of December 31 5,983 5,211 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiaries [Abstract] | |
Subsidiaries | Note 8 Subsidiaries Presented hereunder is a list of the Group’s subsidiaries: Principal location of the The Group’s ownership interest in the subsidiary company’s 2018 2019 Name of company activity % % Nano Dimension Technologies Ltd. Israel 100 % 100 % Nano Dimension IP Ltd. (*) Israel 100 % 100 % Nano Dimension USA Inc. USA 100 % 100 % Nano Dimension (HK) Limited (*) Asia-Pacific 100 % 100 % (*) Nano Dimension IP Ltd. and Nano Dimension (HK) Limited were incorporated by the Company in 2018. Nano Dimension IP Ltd. had no material activity during 2019. |
Other Payables
Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Other Payables [Abstract] | |
Other payables | Note 9 Other payables December 31, 2018 2019 Thousands USD Thousands USD Accrued expenses 252 406 Contract liabilities 355 991 Current portion of other long-term liability 57 - Lease liability - 1,055 Employees and related liabilities 665 616 Government authorities 272 249 Current maturities in respect of government grants 550 231 Others 27 27 2,178 3,575 |
Liability in Respect of Governm
Liability in Respect of Government Grants | 12 Months Ended |
Dec. 31, 2019 | |
Liability in Respect of Government Grants [Abstract] | |
Liability in respect of government grants | Note 10 Liability in respect of government grants 2018 2019 Thousands USD Thousands USD Balance as of January 1 1,171 1,445 Amounts received during the year 121 121 Payment of royalties (70 ) (185 ) Amounts recognized as an offset from research and development expenses (42 ) (49 ) Revaluation of the liability 265 (57 ) Balance as of December 31 1,445 1,275 Current maturities in respect of government grants 550 231 Long term liability in respect of government grants 895 1,044 During the years 2014 to 2019, Nano-Technologies received several approvals from the Innovation Authority, to finance development projects in an aggregated amount of up to $4,450,000, while the Innovation Authority share of financing the aforesaid amount was in a range of 30% to 50% of expenditures. The Group’s total commitment for payment of royalties with respect to future sales, based on grants received or accrued less royalties already paid, is approximately $1,547,000 as of December 31, 2019. In consideration, Nano-Technologies undertook to pay the Innovation Authority royalties in the rate of 3% of the future sales up to the amount of the grants received. On the date on which the grants were received, the Group recognized a liability using a discount rate ranging between 19% to 30%. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 11 Equity On October 22, 2019 the Company changed the ratio of its ADSs to Ordinary Shares from each ADS representing five Ordinary Shares (1:5) to each ADS representing fifty (50) Ordinary Shares (1:50). This resulted in a 1 for 10 reverse split on the American Depositary Receipt ("ADR") program. All the ADS data mentioned herein have been adjusted to give effect to the aforesaid ADS ratio change. A. The Company's share capital (in thousands of Ordinary Shares) Ordinary Shares 2018 2019 Issued and paid-up share capital as at December 31 97,099 208,926 Authorized share capital 200,000 500,000 B. Financing transactions 1. On May 17, 2017, the Company announced that it signed a private placement agreement with Ayalim Trust Funds, an Israeli institutional investor. As a part of this transaction, the Company issued an aggregate of 3,430,000 Ordinary Shares at a price per share of $1.17. The total gross consideration to the Company was approximately $4,000,000. On June 1, 2017, the Company announced that it signed private placement agreements with Israeli and other non-U.S. investors. As a part of these transactions, the Company issued an aggregate of 4,044,050 Ordinary Shares at a price per share of $1.17. The total gross consideration to the Company was approximately $4,700,000. On June 14, 2017, the Company announced that it signed private placement agreements with several Israeli investors. As a part of these transactions, the Company issued an aggregate of 4,078,759 Ordinary Shares at a price per share of $1.17. The total gross consideration to the Company was approximately $4,800,000. The total net consideration to the Company for the abovementioned placements was approximately $12,420,000. 2. On February 19, 2018, the Company issued, pursuant to a public offering in the United States, an aggregate of 30,000,000 Ordinary Shares (600,000 ADSs). Also, on February 28, 2018, the underwriters exercised their over-allotment option to purchase an additional 4,500,000 Ordinary Shares (90,000 ADSs), bringing the total gross proceeds from the offering to approximately $13,800,000, before deducting underwriting discounts and commissions and other offering-related expenses. The total net consideration was approximately $12,471,000. 3. In February 2019, the Company issued, pursuant to a public offering in the United States, an aggregate of 80,000,000 Ordinary Shares (1,600,000 ADSs), 80,000,000 non-tradable warrants (exercisable into 1,600,000 ADSs) with an exercise price of $8.625 per ADS and term of 5 years and 60,000,000 non-tradable rights to purchase shares (exercisable into 1,200,000 ADSs) with an exercise price of $7.5 per ADS and term of 6 months. In certain cases, the rights to purchase and the warrants may be exercised on a cashless basis. Therefore, the rights to purchase and the warrants are accounted as derivative instruments which are classified as a liability and measured at fair value through profit or loss. The total gross consideration was $12,000,000 and was initially attributed to the financial liability for the rights to purchase and warrants based on their fair value in the amount of $10,201,000 and the remaining amount was attributed to the ADSs issued and recognized as an equity component in the amount of $1,799,000. Applicable issuance costs, amounting to $1,440,000, have been allocated in the same proportion as the allocation of the gross proceeds. An amount of $1,224,000 was considered as issuance costs allocated to the rights to purchase and the warrants and has been recorded in profit or loss as finance expense, while costs allocated as issuance costs of ADSs in the amount of $216,000 have been recorded in equity as a reduction of the share premium. The total net proceeds from the offering were approximately $10,560,000. The value of the financial liability in respect to the warrants was measured as of December 31, 2019, at an amount of approximately $793,000, and the difference between the fair value of the financial liabilities in respect to the warrants and rights to purchase as of the issuance date and the fair value of the financial liability in respect to the warrants as of December 31, 2019, was recognized as finance income in an amount of approximately $9,327,000, mainly due to the decrease in the Company's share price. During the first quarter of 2019, investors exercised 1,881,000 of the rights to purchase 1,881,000 Ordinary Shares for a total consideration of $282,000. 4. In August 2019, the Company issued, pursuant to a securities purchase agreement, convertible promissory notes, in an aggregate principal amount of $4,276,000 and an additional approximately $2,700,000 to be received in two subsequent closings, bringing the expected total gross proceeds from this funding to approximately $7,000,000. The notes are convertible into the Company's ADSs. As a part of this transaction, the Company issued non-tradable warrants to purchase 62,668,850 ADSs. The warrants have an exercise price equal to 125% of the conversion price of the convertible promissory notes, will be exercisable upon the six-month anniversary of issuance and will expire five years from the date of issuance. The total gross proceeds from the first closing were $4,276,000. The first tranche of the convertible promissory notes was unsecured, had a maturity date of March 4, 2021, bear no interest except in an event of default and may be converted, at the election of the holder, into ADSs at an initial per share conversion price of $2.90, subject to adjustments, including among others, revenue targets and the conversion prices of the subsequent tranches. The convertible notes have been designated as a financial liability measured at fair value through profit and loss since they are combined instruments including embedded derivatives. The warrants are also classified as a financial liability that is measured at fair value through profit and loss as neither the exercise price nor the number of shares to be issued is fixed. The rights for the future issuance of the convertible notes and the warrants of the second and third tranches have been accounted for as derivatives. The initial fair value of the financial liabilities issued in the transaction at their issuance date has been evaluated with the assistance of an external independent valuator and was approximately $11,609,000, while the consideration received from this transaction was $4,276,000. The difference, in the amount of $7,333,000, has been allocated to the convertible notes and rights recognized with respect to this transaction. The allocation was based on the proportion of the fair value of each instrument. The loss that has not been recognized for each instrument is amortized on a straight line basis over the term of each instrument. Accordingly, from the consideration received, approximately $1,569,000 was attributed to the convertible notes of the first tranche, $1,902,000 was attributed to the warrants of the first tranche, and a total of approximately $805,000 was attributed to the rights with respect to the second and third tranches. Until December 31, 2019, $1,767,400 of the principal amount of the convertible notes was converted into 30,472,400 Ordinary Shares. As a result of the conversion, $2,003,000 of the loss that has not been initially recorded has been recognized as finance expenses. The fair value of the remaining financial liabilities relating to this transaction was measured as of December 31, 2019, at an amount of approximately $2,905,000. The change in the value has been recognized as finance income in an amount of approximately $620,000. See also Note 18.D - Financial Liabilities. After the reporting date, and prior to February 4, 2020, an aggregate of approximately $200,000 of the principal amount of the convertible notes was converted. On February 4, 2020, the Company and the holders of a significant portion of the remaining financial instruments agreed to amend the terms of this transaction such that the conversion price of the convertible notes decreased to $1.74 per ADS, and the holders of such notes have agreed to convert such notes into ADSs. Additionally, the Company agreed to amend the exercise price of the warrants of the first tranche to $1.914 per ADS, and the Company and the investors agreed to terminate substantially all remaining obligations in this transaction, including the instruments to be issued under the second and third tranche. 5. See also Note 21.A regarding a public offering after the reporting date. C. Treasury shares As of December 31, 2019, the Company held 527,032 Ordinary Shares, constituting approximately 0.25% of its issued and paid up share capital. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Revenues | Note 12 Revenues For the year ended December 31 2017 2018 2019 Thousands Thousands Thousands Consumables 185 190 650 Support services (*) - 400 598 Sales of printers (*) 276 4,320 5,770 Total 461 4,910 7,018 Printers rental 368 190 52 Total revenue 829 5,100 7,070 (*) The Company's identified separated distinct performance obligations that include: Printer, maintenance, training and installation. The Company allocates the transaction price to the identified performance obligations based on the residual approach, while allocating the estimated standalone selling prices for performance obligations relating to maintenance, training and installation services, and the residual is allocated to the printer. Revenues allocated to the printers and ink are recognized when the control is passed at a point in time. Maintenance revenue is recognized ratably, on a straight-line basis, over the period of the services. Revenue from training and installation is recognized during the time of performance. Revenues per geographical locations: For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD USA 481 2,727 3,367 Asia Pacific 156 1,239 1,591 Europe and Israel(*) 192 1,134 2,112 Total revenue 829 5,100 7,070 (*) The Company combined all consumables revenues into the Europe and Israel geography, due to immateriality of the amounts. Timing of revenue recognition: For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Goods and services transferred over time 368 590 650 Goods transferred at a point in time 461 4,510 6,420 Total revenue 829 5,100 7,070 The table below provides information regarding receivables, contract assets and contract liabilities deriving from contracts with customers. December 31, 2018 2019 Thousands USD Thousands USD Open balances 1,233 1,816 Income receivables 80 - Contract liabilities 355 991 The contract liabilities primarily relate to the advance consideration received from customers for contracts giving yearly maintenance for the printer. The revenue is recognized in a straight line basis over the contracts' period. Contract costs Management expects that commissions paid to agents for obtaining contracts are recoverable. The Group applies the expedient included in IFRS 15.94 and recognizes incremental costs for obtaining the contract as an expense as incurred, where the amortization period of the asset it would have otherwise recognized is one year or less. |
Cost of Revenues
Cost of Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Cost of Revenues [Abstract] | |
Cost of revenues | Note 13 Cost of revenues For the year ended December 31 2017 2018 2019 Thousands USD Thousands USD Thousands USD According to sources of revenue - Consumables 62 195 240 Support services - 403 855 Sales of printers 228 2,938 3,192 Printers rental 119 58 25 Total 409 3,594 4,312 |
Further Detail of Profit or Los
Further Detail of Profit or Loss | 12 Months Ended |
Dec. 31, 2019 | |
Further Detail of Profit or Loss [Abstract] | |
Further detail of profit or loss | Note 14 Further detail of profit or loss For the year ended December 31 2017 2018 2019 Thousands USD Thousands USD Thousands USD A. Research and development expenses, net Payroll 7,419 4,890 4,834 Materials 1,844 1,065 1,001 Subcontractors 151 70 82 Patent registration 57 70 144 Depreciation 442 880 1,534 Rental fees and maintenance 824 908 197 Other 244 782 339 10,981 8,665 8,131 Less – government grants (162 ) (42 ) (49 ) 10,819 8,623 8,082 B. Sales and marketing expenses Payroll 1,497 2,226 2,873 Marketing, advertising and commissions 383 1,381 1,808 Rental fees and maintenance 59 64 114 Travel abroad 234 201 317 Depreciation 10 186 212 Other - 201 145 2,183 4,259 5,469 C. General and administrative expenses Payroll 762 996 1,000 Fees 68 32 22 Professional services 1,460 1,114 1,358 Directors pay 493 306 214 Office expenses 282 311 359 Travel abroad 86 45 37 Depreciation - - 78 Rental fees and maintenance 84 91 43 Other 128 107 159 3,363 3,002 3,270 D. Finance income Revaluation of liability in respect of government grants 102 - 58 Revaluation of financial liabilities at fair value through profit or loss (**) - - 8,707 Bank interest and fees - 54 - 102 54 8,765 Finance expense Exchange rate differences 889 127 151 Bank fees 28 - 14 Finance expense in respect of lease liability (*) - - 425 Fundraising expenses - - 1,693 Revaluation of liability in respect of government grants - 265 - 917 392 2,283 (*) See Note 2.C regarding initial application of IFRS 16. (**) See Note 11.B regarding financing transactions resulted in issuance of financial instruments. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2019 | |
Taxes on Income [Abstract] | |
Taxes on income | Note 15 Taxes on income A. Corporate tax rate Presented hereunder are the tax rates relevant to the Company in the years 2017 to 2019: 2017 – 24% 2018 – 23% 2019 – 23% On December 22, 2016, the Knesset plenum passed the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016, by which, inter alia, the corporate tax rate would be reduced from 25% to 23% in two steps. The first step was to a rate of 24% as of January 2017 and the second step was to a rate of 23% as of January 2018. These changes had no impact on the financial statements. B. Benefits under the Law for the Encouragement of Industry (Taxes) (a) The Company and some of its subsidiaries qualify as "Industrial Companies" as defined in the Law for the Encouragement of Industry (Taxes) – 1969 and accordingly they are entitled to benefits, of which the most significant one is the possibility of submitting consolidated tax returns by companies in the same line of business. (b) The Company and certain subsidiaries are planning to submit a consolidated tax return to the tax authorities in accordance with the Law for the Encouragement of Industry (Taxes) – 1969. As a result, the companies are, inter alia, entitled to offset their losses from the taxable income of other companies, subject to compliance with certain conditions. C. Theoretical tax The following presents the adjustment between the theoretical tax amount and the tax amount included in the financial statements: For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Total comprehensive loss (17,503 ) (15,488 ) (8,353 ) Statutory tax rate 24 % 23 % 23 % Theoretical tax benefit (4,201 ) (3,562 ) (1,921 ) Increase in tax liability due to: Non-deductible expenses 629 280 75 Losses and benefits for tax purposes for which no deferred taxes were recorded 3,572 3,282 1,846 Taxes on income - - - D. Tax assessments The Company has final tax assessments until and including the 2017 tax year. Nano Dimension Technologies Ltd. has final tax assessments until and including the 2015 tax year. E. Accumulated losses for tax purposes and other deductible temporary differences As of the reporting date, the Group has net operating loss for tax purposes in the amount of approximately $55,469,000 and capital loss for tax purpose in the amount of approximately $880,000. As of December 31, 2019, the Group has deductible temporary differences in the amount of approximately $1,687,000, mainly relating to research and development expenses which are deductible over a period of three years for tax purposes and financial gain from revaluation of financial liabilities. The Group has not recognized a tax asset for the aforesaid losses and deductible temporary differences, due to the uncertainty regarding the ability to utilize those losses and deductible of temporary differences in the future. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Loss Per Share [Abstract] | |
Loss per share | Note 16 Loss per share For the year ended December 31 2017 2018 2019 Weighted average of number of Ordinary Shares used in the calculation of basic and diluted loss per share (in thousands) 56,540 91,799 175,634 Net loss used in calculation (thousands USD) 17,503 15,488 8,353 In 2019, 173,447,378 options and warrants (in 2018: 8,517,047, and 2017: 8,697,362) were excluded from the diluted weighted average number of Ordinary Shares calculation as their effect would have been anti-dilutive. Weighted average number of Ordinary Shares: Year ended December 31 2017 2018 2019 Thousands of Thousands of Thousands of shares of NIS 0.1 shares of NIS 0.1 shares of NIS 0.1 par value par value par value Balance as at January 1 49,616 61,984 96,572 Effect of share options exercised 303 70 6,754 Effect of shares issued during the year 6,621 29,745 72,308 Weighted average number of Ordinary Shares used to calculate basic and diluted earnings (loss) per share as at December 31 56,540 91,799 175,634 |
Share-Based Payment
Share-Based Payment | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment [Abstract] | |
Share-based payment | Note 17 Share-based payment A. During 2017, the Company issued to service providers 125,000 restricted Ordinary Shares, and non-tradable share options to purchase 75,000 Ordinary Shares at an exercise price of $2.00 per Ordinary Share. The share options are exercisable immediately and will expire 18 months from the grant date. The share options include a cashless exercise mechanism. During 2017, the Company granted to employees and an officer of the Company 1,817,334 non-tradable share options, which are exercisable into 1,817,334 Ordinary Shares. The share options vest over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date, in consideration for an exercise price ranging between $0.46 to $1.56 for each share option. The share options include a cashless exercise mechanism. During 2018, the Company granted to employees, a consultant and officers 2,652,500 non-tradable share options, which are exercisable into 2,652,500 Ordinary Shares. The share options vest over a period of one to three years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date in consideration for an exercise price ranging between $0.28 to $1.59 for each share option. Some of the share options include a cashless exercise mechanism. During 2019, the Company granted to employees, officers and consultants 6,029,000 non-tradable share options, which are exercisable into 6,029,000 Ordinary Shares. The share options vest over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date in consideration for an exercise price ranging between $0.14 to $0.17 for each share option. Some of the share options include a cashless exercise mechanism. During 2019, the Company granted to employees 2,723,500 restricted shares units ("RSUs"). The RSUs represents the right to receive Ordinary Shares at a future time and vest over a period of three years. B. On April 19, 2017, the Company's shareholders approved a grant of 275,000 non-tradable share options to a director, which are exercisable into 275,000 Ordinary Shares. The share options will vest in 12 equal quarterly batches over a period of three years, starting from April 20, 2017, and be exercisable during a period of five years from the grant date, in consideration for an exercise price of $1.77 for each share option. The share options include a cashless exercise mechanism. In January 2018, the Company issued non-tradable share options to purchase 300,000 Ordinary Shares to directors of the Company at an exercise price of $1.59 per share. The share options will vest in 12 equal quarterly batches over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date. 275,000 of the share options include a cashless exercise mechanism. In July 2019, the Company issued non-tradable share options to purchase 2,545,000 Ordinary Shares to directors of the Company at an exercise price of $0.15 per share. One third of the share options will vest after one year from the grant date, and the remaining will vest in eight equal quarterly batches over a period of two years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date. C. On April 2, 2015, the Company's board of directors approved a grant of 559,097 non-tradable share options to Yissum – Research Development Company of the Hebrew University of Jerusalem, Ltd. ("Yissum"). 223,697 of those share options are currently outstanding and exercisable. D. The fair value of share options is measured using the Black-Scholes model. Measurement inputs include the share price on the measurement date, the exercise price of the instrument, expected volatility (based on the weighted average volatility of the Company's shares, over the expected term of the options), expected term of the options (based on general option holder behavior and expected share price), expected dividends, and the risk-free interest rate (based on government debentures). The following is the data used in determining the fair value of the share options: 17.A- Consultants and Employees 17.B- Directors 17.C- Yissum Number of share options granted 17,148,722 6,090,000 559,097 Fair value in the grant date (thousands USD) 6,749 3,181 742 Range of share price (USD) 0.11 – 1.80 0.11 – 1.89 1.84 Range of exercise price (USD) 0– 2.30 0.15 – 1.84 0.71 Range of expected share price volatility 40.3%-65.06 % 53.75%-61.27 % 57.26 % Range of estimated life (years) 1.5 – 9.01 4 – 5 5 Range of weighted average of risk-free interest rate 0.56%-1.98 % 0.88%-1.32 % 1.15 % Expected dividend yield - - - Outstanding as of December 31, 2019 26,056,905 3,921,750 223,697 Exercisable as of December 31, 2019 2,691,568 2,013,750 223,697 E. The numbers of share options granted to employees and consultants, and included in Note 17.A are as follows: 2018 2019 Outstanding at January 1 4,609,634 5,647,175 Granted during the year 2,652,500 23,061,122 Exercised during the year (590,292 ) (1,167 ) Forfeited or expired during the year (1,024,667 ) (2,650,225 ) Outstanding at December 31 5,647,175 26,056,905 Exercisable as of December 31 2,476,800 2,691,568 The numbers of share options granted to directors and included in Note 17.B are as follows: 2018 2019 Outstanding at January 1 3,145,001 2,070,000 Granted during the year 300,000 2,545,000 Exercised during the year - - Forfeited or expired during the year (1,375,001 ) (693,250 ) Outstanding at December 31 2,070,000 3,921,750 Exercisable as of December 31 1,913,750 2,013,750 F. The share based payments expenses in 2019 were $445,000 (in 2018: $403,000). Expenses for share based payments in 2019 include expenses in an amount of approximately $1,000 that were capitalized to property, plant and equipment and expenses in an amount of approximately $5,000 that were capitalized to inventory. Expenses for share based payments in 2018 include expenses in an amount of approximately $12,000 that were capitalized to property, plant and equipment and expenses in an amount of approximately $9,000 that were capitalized to inventory. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial instruments | Note 18 Financial instruments A. Risk management policy The actions of the Group expose it to various financial risks, such as a market risk (including a currency risk, fair value risk regarding interest rate and price risk), credit risk, liquidity risk and cash flow risk for the interest rate. The comprehensive risk-management policy of the Group focuses on actions to limit the potential negative impacts on financial performance of the Group to a minimum. The Group does not typically use derivative financial instruments in order to hedge exposures. Risk management is performed by the Group's Chief Executive Officer in accordance with the policy approved by the board of directors. B. Credit risk The Group does not have a significant concentration of credit risks. The cash of the Group is deposited in Israeli and U.S. banking corporations. In the estimation of the Group's management, the credit risk for these financial instruments is low. In the estimation of the Group's management, it does not have any expected credit losses. C. Currency risk A currency risk is the risk of fluctuations in a financial instrument, as a result of changes in the exchange rate of the foreign currency. The following is the classification and linkage terms of the financial instruments of the Group (in thousands USD): NIS Linked to the U.S. dollar Linked to the Euro and other Total December 31, 2019 Cash 348 3,536 10 3,894 Restricted deposits 377 31 - 408 Trade receivables - 1,586 230 1,816 Other receivables 10 226 - 236 735 5,379 240 6,354 Financial liabilities at amortized cost 4,503 6,740 13 11,256 Total net financial assets (liabilities) (3,768 ) (1,361 ) 227 (4,902 ) December 31, 2018 Cash 583 3,169 1 3,753 Restricted deposits 347 21 - 368 Trade receivables - 1,079 234 1,313 Other receivables 10 205 - 215 940 4,474 235 5,649 Financial liabilities at amortized cost 2,850 1,880 1 4,731 Total net financial assets (liabilities) (1,910 ) 2,594 234 918 The following is a sensitivity analysis of changes in the exchange rate of the NIS as of the reporting date: Profit (loss) from the change Thousands USD Increase at a rate of 5% (189 ) Increase at a rate of 10% (377 ) Decrease at a rate of 5% 189 Decrease at a rate of 10% 377 D. Fair value of financial instruments (1) Financial instruments measured at fair value for disclosure purposes only The carrying amounts of certain financial assets and liabilities, including cash, trade receivables, other receivables, deposits, trade and other payables are the same as or approximate to their fair value. (2) Fair value hierarchy of financial instruments measured at fair value The table below presents an analysis of financial instruments measured at fair value on a temporal basis, using valuation methodology in accordance with the fair value hierarchy level as defined below. When determining the fair value of an asset or liability, the Company uses observable market data as much as possible. There are three levels of fair value measurements in the fair value hierarchy that are based on the data used in the measurement, as follows: ● Level 1: quoted prices (unadjusted) in active markets for identical instruments ● Level 2: inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly ● Level 3: inputs that are not based on observable market data (unobservable inputs) December 31, 2019 Level 1 Level 2 Level 3 (*) Total Thousands USD Thousands USD Thousands USD Thousands USD Financial liabilities: Warrants - 793 1,364 2,157 Convertible notes - - 1,223 1,223 Financial derivatives - - 318 318 Total - 793 2,905 3,698 (*) Presented net of the loss not initially recognized- as of December 31, 2019- $4,717,000. Details regarding fair value measurement at Level 2 The fair value of the warrants was measured using the Black-Scholes model. The following inputs were used to determine the fair value: Expected term of warrant (1) – 4.1 years. Expected volatility (2) – 62.51%. Risk-free rate (3) – 1.73%. Expected dividend yield – 0%. Details regarding fair value measurement at Level 3 The fair value of the warrants was measured using the Black-Scholes model and the Monte Carlo simulation model. The following inputs were used to determine the fair value: Expected term of warrant (1) – 5 years. Expected volatility (2) – 61.12%. Risk-free rate (3) – 1.79%. Expected dividend yield – 0%. The fair value of the convertible notes was measured using the Monte Carlo simulation method. The following inputs were used to determine the fair value: Expected term of convertible notes (1) – 18 months. Expected volatility (2) – 80.03%. Risk-free rate (3) – 1.61%. Weight average cost of capital (4) – 20% Expected dividend yield – 0% Probability of meeting revenue target – 10%. (1) Based on contractual terms. (2) Based on the historical volatility of the Company's shares and ADSs. (3) Based on traded zero-coupon U.S. treasury bonds with maturity equal to expected terms. (4) Evaluated with the assistance of an external independent valuator. D. Fair value of financial instruments As for the fair value measurements classified in level 3, a reasonably possible change in one or more inputs would have increased (decreased) profit or loss as follows: Profit Thousands USD Volatility +10% 17 Volatility -10% 48 Share price +10% (361 ) Share price -10% 424 Level 3 financial instruments carried at fair value The table hereunder presents reconciliation from the beginning balance to the ending balance of financial instruments carried at fair value level 3 of the fair value hierarchy: 2019 Fair value through profit or loss Warrants Convertible notes Financial derivatives Total Thousands USD Thousands USD Thousands USD Thousands USD Financial liabilities: Balance as at January 1, 2019 - - - - Initial fair value (*) 1,902 1,569 805 4,276 Amount reclassified to equity due to note conversion - (1,991 ) - (1,991 ) amounts recorded as finance expenses (income) (538 ) 1,645 (487 ) 620 Balance as at December 31, 2019 (**) 1,364 1,223 318 2,905 (*) The initial fair value is presented net of the difference between the fair value and the consideration received, see note 11.B.4. (**) Presented net of the loss not initially recognized- as of December 31, 2019- $4,717,000. E. Liquidity risk The table below presents the repayment dates of the Group's financial liabilities based on the contractual terms in undiscounted amounts: First year More than a year Total Thousands USD Thousands USD Thousands USD December 31, 2019 Trade payables 850 - 850 Other payables 3,547 28 3,575 Lease liabilities - 2,089 2,089 Liability in respect of government grants - 1,044 1,044 4,397 3,161 7,558 December 31, 2018 Trade payables 1,414 - 1,414 Other payables 2,150 28 2,178 Other long-term liabilities - 244 244 Liability in respect of government grants - 895 895 3,564 1,167 4,731 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 19 Leases The Group applies IFRS 16 as from January 1, 2019. The Group has lease agreements with respect to the following items: 1. Offices, labs and manufacturing facilities 2. Vehicles Information regarding material lease agreements a. The Group leases vehicles for three-year periods from several different leasing companies and from time to time changes the number of leased vehicles according to its current needs. The leased vehicles are identified by means of license numbers and the vehicle's registration, with the leasing companies not being able to switch vehicles, other than in cases of deficiencies. The leased vehicles are used by the Group's headquarter staff, marketing and sales persons and other employees whose employment agreements include an obligation of the Group to put a vehicle at their disposal. The Group accounted for the arrangement between it and the leasing companies as a lease arrangement in the scope of IFRS 16 and for the arrangement between it and its employees as an arrangement in the scope of IAS 19, Employee Benefits. The agreements with the leasing companies do not contain extension and/or termination options that the Group is reasonably certain to exercise. A lease liability in the amount of $185,000 and right-of-use asset in the amount of $167,000 have been recognized in the statement of financial position as at December 31, 2019 in respect of leases of vehicles. b. The Group leases offices at Ness- Ziona from Africa-Israel for a period of five years in a few different contracts for three different floors used for offices, labs and manufacturing facilities, at the same building. The contractual period of the aforesaid lease agreements ends in August 2021, August 2024 and December 2023. The Group has an option to extend two of the lease agreements for an additional five years for an additional monthly fee (10% increase). The Group also leases offices in Hong- Kong. The contractual period of the aforesaid lease agreement ends in February 2021. A lease liability in the amount of $2,959,000 and right-of-use asset in the amount of $2,506,000 have been recognized in the statement of financial position as at December 31, 2019 in respect of leases of offices. Buildings Vehicles Total Thousands USD Thousands USD Thousands USD Balance as at January 1, 2019 1,687 204 1,891 Depreciation 706 136 842 Additions 1,525 99 1,624 Balance as at December 31, 2019 2,506 167 2,673 Maturity analysis of the Group's lease liabilities: December 31, Thousands Less than one year 1,055 One to five years 2,089 Total 3,144 Current maturities of lease liability 1,055 Long-term lease liability 2,089 Note 20 Transactions and balances with related parties A. Balances with related parties December 31, 2018 2019 Thousands USD Thousands USD Other payables 74 130 B. Shareholders and other related parties benefits Year ended on December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Salaries and related expenses- related parties employed by the Group 1,138 829 1,047 Number of related parties 5 4 4 Compensation for directors not employed by the Group 494 311 218 Number of directors 9 7 6 C On April 19, 2017, the Company's shareholders approved the immediate acceleration of the unvested share options granted to Yoel Yogev and Zvika Yemini in 2015, and that their share options shall remain exercisable for an extended period of time until November 2020, subject to their resignation from the Company's board of directors. D. On April 19, 2017, the Company's shareholders approved to grant Avi Reichental, a then director of the Company, 275,000 non-tradable share options, which are exercisable into 275,000 Ordinary Shares, at an exercise price of $1.77 per share. E. On January 1, 2018, the Company's shareholders approved to grant Itzhak Shrem, a director, 275,000 non-tradable share options, which are exercisable into 275,000 Ordinary Shares, at an exercise price of $1.59 per share and 25,000 non-tradable share options, which are exercisable into 25,000 Ordinary Shares to Avi Reichental, the then Chairman of the board of directors, at a similar exercise price. |
Transactions and Balances with
Transactions and Balances with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Transactions and Balances With Related Parties [Abstract] | |
Transactions and Balances with Related Parties | Note 20 Transactions and balances with related parties A. Balances with related parties December 31, 2018 2019 Thousands USD Thousands USD Other payables 74 130 B. Shareholders and other related parties benefits Year ended on December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Salaries and related expenses- related parties employed by the Group 1,138 829 1,047 Number of related parties 5 4 4 Compensation for directors not employed by the Group 494 311 218 Number of directors 9 7 6 C On April 19, 2017, the Company's shareholders approved the immediate acceleration of the unvested share options granted to Yoel Yogev and Zvika Yemini in 2015, and that their share options shall remain exercisable for an extended period of time until November 2020, subject to their resignation from the Company's board of directors. D. On April 19, 2017, the Company's shareholders approved to grant Avi Reichental, a then director of the Company, 275,000 non-tradable share options, which are exercisable into 275,000 Ordinary Shares, at an exercise price of $1.77 per share. E. On January 1, 2018, the Company's shareholders approved to grant Itzhak Shrem, a director, 275,000 non-tradable share options, which are exercisable into 275,000 Ordinary Shares, at an exercise price of $1.59 per share and 25,000 non-tradable share options, which are exercisable into 25,000 Ordinary Shares to Avi Reichental, the then Chairman of the board of directors, at a similar exercise price. F. On November 20, 2017, the board of directors of the Company approved a non-exceptional transaction in which Mr. Avi Reichental, a then director of the Company, has a personal interest, for open innovation and show room agreements between Nano Dimension USA Inc. and XponentialWorks Inc. and Techniplas, LLC, whereby the Company will lease space and use sales and marketing services in favor of the customer experience center in Ventura, CA, as well as establish cooperation in the field of car electronics starting on December 1, 2017. In March 2019, the Company ceased the obligations with XponentialWorks Inc. and Techniplas. LLC. G. On November 12, 2019, the board of directors of the Company approved an arms-length transaction in which Mr. Ofir Baharav, the chairman of the board of directors of the Company, has a personal interest, for an administrative services agreement between Nano Dimension USA Inc. and Breezer Holdings LLC, whereby the Company will lease space and will use logistics services for the Company's office in Boca Raton, Florida, starting on February 1, 2020. H. On December 5, 2019, the Company announced the appointment of Yoav Stern as President and Chief Executive Officer, effective January 2, 2020. In addition, the board of directors approved to grant Mr. Stern 14,308,622 non-tradable share options, which are exercisable into 14,308,622 Ordinary Share, with an exercise price of NIS 0.189 per share option. The vesting start date of the share options is January 2, 2020. |
Events After the Reporting Date
Events After the Reporting Date | 12 Months Ended |
Dec. 31, 2019 | |
Events After Reporting Date [Abstract] | |
Events after the reporting date | Note 21 Events after the reporting date A. After the reporting period, in February 2020, the Company issued, pursuant to a public offering in the United States, an aggregate of 116,650,000 Ordinary Shares (2,333,000 ADSs) and 5,732,500 non-tradable warrants to the underwriters (exercisable into 5,732,500 Ordinary Shares). Also, in February 2020, the underwriters partly exercised their over-allotment option to purchase an additional 12,765,900 Ordinary Shares (255,318 ADSs), bringing the total gross proceeds from the offering to approximately $3,882,477, before deducting underwriting discounts and commissions and other offering-related expenses. B. See also note 11.B regarding to change in the terms of convertible notes and warrants. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis for presentation of the financial statements | A. Basis for presentation of the financial statements The Group’s financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended on December 31, 2019, comply with IFRS as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on the historical cost basis. The consolidated financial statements were authorized for issuance by the Company’s board of directors on March 9, 2020. |
Use of estimates and judgments | B. Use of estimates and judgments The preparation of financial statements in conformity with IFRS as issued by the IASB requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of accounting estimates used in the preparation of the Group’s financial statements requires management of the Company to make assumptions regarding circumstances and events that involve considerable uncertainty. Management of the Company prepares the estimates on the basis of past experiences, various facts, external circumstances, and reasonable assumptions according to the pertinent circumstances of each estimate. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Below is information about significant assumptions made by the Group with respect to estimates and judgments: - Recoverable amount of cash generating unit The Company determined that all its assets operate as a single cash-generating unit. As of December 31, 2019, the market value of the Company’s assets was less than their book value and accordingly, the Company assessed their value in use. The value in use assessment has been performed with the assistance of an external independent valuator and was determined by discounting the future cash flows to be generated from the continuing use of the unit based on a four-year cash flow forecast and a terminal value for the representative year. Based on the valuation, as of December 31, 2019, the value in use was significantly higher than its book value and accordingly no impairment has been recorded. The valuation of the value in use included key assumptions such as revenue growth and discount rates. Changes in these assumptions may have an impact on future impairment losses recognition. - Fair value measurement of financial instruments The Company accounts for financial liabilities relating to convertible notes, warrants and related derivatives at fair value through profit or loss. The fair value of these instruments are determined by using the Monte Carlo simulation method and the Black-Scholes model and assumptions regarding unobservable inputs used in the valuation model including the probability of meeting revenue targets, and weighted average cost of capital, all of which can lead to profit or loss from a change in the fair value of these instruments. For information on details regarding fair value measurement at Level 3 and sensitivity analysis see Note 18.D regarding financial instruments. |
Changes in accounting policies | C. Changes in accounting policies Initial application of new standards, amendments to standards and interpretations IFRS 16 (Leases) As from January 1, 2019 (the “date of initial application”), the Group applies IFRS 16, Leases (“IFRS 16”), which replaced IAS 17, Leases (“IAS 17”). The main effect of the IFRS 16’s application is reflected in annulment of the existing requirement from lessees to classify leases as operating (off-balance sheet) or finance leases and the presentation of a unified model for lessees to account for all leases similarly to the accounting treatment of finance leases in IAS 17. Until the date of initial application, the Group classified most of the leases in which it is the lessee as operating leases, since it did not substantially bear all the risks and rewards from the assets. In accordance with IFRS 16, for agreements in which the Group is the lessee, the Group recognizes a right-of-use asset and a lease liability at the inception of the lease contract for all the leases in which the Group has a right to control identified assets for a specified period of time, other than exceptions specified in the standard. Accordingly, the Group recognizes depreciation and amortization expenses in respect of a right-of-use asset, tests a right-of-use asset for impairment in accordance with IAS 36, Impairment of Assets, and recognizes financing expenses on a lease liability. Therefore, as from the date of initial application, lease payments relating to assets leased under an operating lease, which were presented as part of research and development, general and administrative, and sales and marketing expenses in the statement of profit or loss, are capitalized to assets and written down as depreciation and amortization expenses. The Group elected to apply IFRS 16 using the modified retrospective approach, with an adjustment to the balance of retained earnings as at January 1, 2019, and without a restatement of comparative data. In respect of all the leases, the Group elected to apply the transitional provisions, such that on the date of initial application, it recognized a liability at the present value of the balance of future lease payments discounted at its incremental borrowing rate at that date calculated according to the average duration of the remaining lease period, as from the date of initial application, and concurrently recognized a right-of-use asset at the same amount of the liability, adjusted for any prepaid or accrued lease payments that were recognized as an asset or liability before the date of initial application. Therefore, application of IFRS 16 did not have an effect on the Group’s equity at the date of initial application. Furthermore, as part of the initial application of IFRS 16, the Group has chosen to apply the following expedients: (1) Not separating non-lease components from lease components and instead accounting for all the components as a single lease component; and (2) Applying the practical expedient regarding the recognition and measurement of short-term leases, for both leases that end within 12 months from the date of initial application and leases for a period of up to 12 months from the date of their inception for all groups of underlying assets to which the right-of-use relates. The table below presents the cumulative effects of the items affected by the initial application on the statement of financial position as at January 1, 2019: According to IAS 17 The change According to IFRS 16 Thousands Thousands USD Thousands USD Right-of-use assets - 1,891 1,891 Other payables (57 ) 57 - Lease liabilities - (2,192 ) (2,192 ) Other long-term liabilities (244 ) 244 - In measurement of the lease liabilities, the Group discounted lease payments using the nominal incremental borrowing rate at January 1, 2019. The discount rates used to measure the major components of the lease liability range between 11.2% and 11.98%. This range is affected by differences in the lease term and differences between asset groups. |
Subsidiary | D. Subsidiary A subsidiary is an entity controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control is lost. The accounting policies of the subsidiaries are aligned with the policies adopted by the Group. |
Functional currency and presentation currency | E. Functional currency and presentation currency (1) Functional and presentation currency These consolidated financial statements are presented in U.S. dollars (“USD”), which is the Company’s functional currency, and have been rounded to the nearest thousands, except when otherwise indicated. The USD is the currency that represents the principal economic environment in which the Company operates. (2) Foreign currency transactions Transactions in currencies other than the U.S. dollar are translated to the functional currency of the Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortized cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognized in profit or loss. (3) Index linked financial items Financial assets and liabilities which according to their terms are linked to changes in the Israeli Consumer Price Index (the “Index”) are adjusted according to the relevant Index on every reporting date in accordance with the terms of the agreement. Linkage differences deriving from said adjustment are recorded to profit and loss. (4) Below are details regarding the exchange rate of the New Israeli Shekel (“NIS”) and the Euro and the Index of the NIS: Consumer Price Index Euro NIS December 31, 2019 100.8 1.10 0.29 December 31, 2018 100.2 1.14 0.27 December 31, 2017 100.4 1.20 0.29 Change in percentages: Year ended December 31, 2019 (0.05 ) (3.5 ) 7.40 Year ended December 31, 2018 (0.19 ) (5 ) (6.89 ) Year ended December 31, 2017 (0.47 ) 14.28 11.53 |
Financial instruments | F. Financial instruments (1) Non-derivative financial assets – policy applicable as from January 1, 2018 Initial recognition and measurement of financial assets The Group initially recognizes trade receivables on the date that they are created. All other financial assets are recognized initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. A financial asset is initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial asset. A trade receivable without a significant financing component is initially measured at the transaction price. Receivables originating from contract assets are initially measured at the carrying amount of the contract assets on the date classification was changed from contract asset to receivables. Derecognition of financial assets Financial assets are derecognized when the contractual rights of the Group to the cash flows from the asset expire, or the Group transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset were transferred. When the Group retains substantially all of the risks and rewards of ownership of the financial asset, it continues to recognize the financial asset. Classification of financial assets into categories and the accounting treatment of each category Financial assets are classified at initial recognition to one of the following measurement categories: amortized cost; fair value through other comprehensive income – investments in debt instruments; fair value through other comprehensive income – investments in equity instruments; or fair value through profit or loss. The Group does not expect to incur any credit loss, thus the financial statements do not include provision for expected credit loss. All financial assets not classified as measured at amortized cost or fair value through other comprehensive income as described above, as well as financial assets designated at fair value through profit or loss, are measured at fair value through profit or loss. On initial recognition, the Group designates financial assets at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. The Group has balances of trade and other receivables and deposits that are held within a business model whose objective is collecting contractual cash flows. The contractual cash flows of these financial assets represent solely payments of principal and interest that reflect consideration for the time value of money and the credit risk. Accordingly, these financial assets are measured at amortized cost. (2) Non-derivative financial assets – policy applicable before January 1, 2018 Initial recognition and measurement of financial assets The Group initially recognizes loans and receivables and deposits on the date that they are created. Non-derivative financial instruments are comprised of trade and other receivables, cash and deposits. Derecognition of financial assets Financial assets are derecognized when the contractual rights of the Group to the cash flows from the asset expire, or the Group transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. When the Group retains substantially all of the risks and rewards of ownership of the financial asset, it continues to recognize the financial asset. Classification of financial assets into categories and the accounting treatment of each category The Group classifies its financial assets according to the following categories: Financial assets at fair value through profit or loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy, provided that the designation is intended to prevent an accounting mismatch, or the asset is a combined instrument including an embedded derivative. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. Financial assets designated at fair value through profit or loss also include equity investments that otherwise would have been classified as available for sale. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses. Loans and receivables comprised of cash and cash deposits and trade and other receivables. Cash includes cash balances available for immediate use. Deposits include short-term deposits with banking corporations (with original maturities of three months or more) that are readily convertible into known amounts of cash and are exposed to insignificant risks of change in value. (3) Non-derivative financial liabilities Non-derivative financial liabilities include trade and other payables. Initial recognition of financial liabilities The Group initially recognizes financial liabilities on the trade date at which the Group becomes a party to the contractual provisions of the instrument. Subsequent measurement of financial liabilities Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Transaction costs directly attributable to an expected issuance of an instrument that will be classified as a financial liability are recognized as an asset in the framework of deferred expenses in the statement of financial position. These transaction costs are deducted from the financial liability upon its initial recognition, or are amortized as financing expenses in the statement of profit or loss and other comprehensive income when the issuance is no longer expected to occur. Derecognition of financial liabilities Financial liabilities are derecognized when the obligation of the Group, as specified in the agreement, expires or when it is discharged or cancelled. Offset of financial instruments Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. |
Property plant and equipment | G. Property plant and equipment Property plant and equipment are presented according to cost, including directly attributed acquisition costs, minus accumulated depreciation and losses from accrued decrease in value. Improvements and upgrades are included in the assets’ costs whereas maintenance and repair costs are recognized in profit and loss as accrued. Gains and losses on disposal of a fixed asset item are determined by comparing the net proceeds from disposal with the carrying amount of the asset, and are recognized in their corresponding section, in profit or loss. The cost of printers used for internal purposes, which are classified as property, plant and equipment, includes the cost of materials and direct labor, and any other costs directly attributable to bringing the assets to a working condition for their intended use. The depreciation is calculated in equal yearly rates during the period of the useful life span of the assets, as follows: % Machinery and equipment (mainly 7%) 7 - 25 Computers 20 - 33 Office furniture and equipment 7 - 15 Leasehold Improvements 7 - 10 Printers leased to customers 25 Depreciation methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. |
Inventory | H. Inventory Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted averages method, and includes expenditure incurred in acquiring the inventories and the costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. |
Impairment of non-financial assets | I. Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value, minus the costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the assessments of market participants regarding the time value of money and the risks specific to the asset, for which the estimated future cash flows from the asset were not adjusted. An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. See also note 2.B of impairment test performed as of December 31, 2019. |
Provisions | J. Provisions A provision for claims is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. When the value of time is material, the provision is measured at its present value. |
Treasury shares and Ordinary Shares | K. Treasury shares and Ordinary Shares When share capital recognized as equity is repurchased by the Group, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus on the transaction is carried to share premium, whereas a deficit on the transaction is deducted from retained earnings. Ordinary Shares are classified as equity. Incremental costs directly attributable to the issuance of Ordinary Shares and share options are recognized as a deduction from equity, net of any tax effects. |
Revenue recognition | L. Revenue recognition The Company early adopted IFRS 15, Revenues from Contracts with Customers, in the financial statements for the year ended December 31, 2017. IFRS 15 provides new guidance on revenue recognition, on a retrospective basis. The Company recognizes revenue when the customer obtains control over the promised goods or services. The revenue is measured according to the amount of the consideration to which the Company expects to be entitled in exchange for the goods or services promised to the customer, other than amounts collected for third parties. The Company accounts for a contract with a customer only when the following conditions are met: (a) The parties to the contract have approved the contract (in writing, orally or according to other customary business practices) and they are committed to satisfying the obligations attributable to them; (b) The Company can identify the rights of each party in relation to the goods or services that will be transferred; (c) The Company can identify the payment terms for the goods or services that will be transferred; (d) The contract has a commercial substance (i.e. the risk, timing and amount of the entity’s future cash flows are expected to change as a result of the contract); and (e) It is probable that the consideration, to which the Company is entitled to in exchange for the goods or services transferred to the customer, will be collected. If a contract with a customer does not meet all of the above criteria, consideration received from the customer is recognized as a liability until the criteria are met or when one of the following events occurs: the Company has no remaining obligations to transfer goods or services to the customer and any consideration promised by the customer has been received and cannot be returned; or the contract has been terminated and the consideration received from the customer cannot be refunded. On the contract’s inception date the Company assesses the goods or services promised in the contract with the customer and identifies as a performance obligation any promise to transfer to the customer goods or services (or a bundle of goods or services) that are distinct. The Company identifies goods or services promised to the customer as being distinct when the customer can benefit from the goods or services on their own or in conjunction with other readily available resources and the Company’s promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract. The Company’s identified performance obligations includes: printer, ink, maintenance (which is generally provided for a period of up to one year), training and installation. Revenue is allocated among performance obligations in a manner that reflects the consideration that the Company expects to be entitled to for the promised goods based on the standalone selling prices (“SSP”) of the goods or services of each performance obligation. SSP are estimated for each distinct performance obligation and judgment may be required in their determination. The best evidence of SSP is the estimated price of a product or service if the Company would sell them separately in similar circumstances and to similar customers. The Company allocates the transaction price to the identified performance obligations based on the residual approach, while allocating the estimated standalone selling prices for performance obligations relating to maintenance, training and installation services, and the residual is allocated to the printer. Revenues allocated to the printers, installation and training, and ink and other consumables are recognized when the control is passed at a point in time. Currently, the Company also sells its printers through resellers. The Company recognizes revenue to resellers at the time of sale to the resellers, assuming the Company has completed its obligations related to the sale. Maintenance revenue is recognized ratably, on a straight-line basis, over the period of the services. Revenue from training and installation is recognized during the time of performance. A contract asset is recognized when the Group has a right to consideration for goods or services it transferred to the customer that is conditional on other than the passing of time, such as future performance of the Group. Contract assets are classified as receivables when the rights in their respect become unconditional. A contract liability is recognized when the Group has an obligation to transfer goods or services to the customer for which it received consideration (or the consideration is payable) from the customer. |
Research and development and Intangible assets | M. Research and development and intangible assets Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group has the intention and sufficient resources to complete development and to use or sell the asset. The expenditure capitalized in respect of development activities includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use. In the fourth quarter of 2016, the Group ceased to capitalize development expenses and began to amortize the intangible asset arising from capitalization of development expenses, upon the initiation of its beta program. In subsequent periods, capitalized development expenditure is measured at cost minus accumulated amortization and accumulated impairment losses. |
Amortization of intangible assets | N. Amortization of intangible assets Amortization is a systematic allocation of the amortizable amount of an intangible asset over its useful life. The amortizable amount is the cost of the asset, minus its residual value. Amortization is recognized in profit or loss on a straight-line basis, over the estimated useful lives of the intangible assets from the date they are available for use, since these methods most closely reflect the expected pattern of consumption of the future economic benefits embodied in each asset. The estimated useful lives of the capitalized development costs have been determined by the Company’s management as 10 years. Amortization methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. |
Government grants | O. Government grants Government grants are recognized initially at fair value when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Grants from the Israeli Innovation Authority (the “Innovation Authority”), with respect to research and development projects, are accounted for as forgivable loans according to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. Grants received from the Innovation Authority are recognized as a liability according to their fair value on the date of their receipt, unless it is reasonably certain, on that date, that the amount received will not be refunded. The amount of the liability is reexamined each period, and any changes in the present value of the cash flows discounted at the original interest rate of the grant are recognized in profit or loss. The difference between the amount received and the fair value on the date of receiving the grant is recognized as a deduction of research and development expenses. Expenses related to revaluation of the liability in respect of government grants were recognized in the statements of profit or loss and other comprehensive income as finance expenses. |
Leases | P. Leases Policy applicable before January 1, 2019 Determining whether an arrangement contains a lease At inception or upon reassessment of an arrangement, the Group determines whether such an arrangement is or contains a lease. An arrangement is a lease or contains a lease if the following two criteria are met: ● The fulfilment of the arrangement is dependent on the use of a specific asset or assets; and ● The arrangement contains rights to use the asset. Leases that do not transfer substantially all the risks and rewards incidental to ownership of an underlying asset were classified as operating leases. The Group recognized operating lease payments as expenses on a straight-line basis over the lease term. Policy applicable as from January 1, 2019 Determining whether an arrangement contains a lease On the inception date of the lease, the Group determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In its assessment of whether an arrangement conveys the right to control the use of an identified asset, the Group assesses whether it has the following two rights throughout the lease term: (a) The right to obtain substantially all the economic benefits from use of the identified asset; and (b) The right to direct the identified asset’s use. For lease contracts that contain non-lease components, such as services or maintenance, that are related to a lease component, the Group elected to account for the contract as a single lease component without separating the components. Leased assets and lease liabilities Contracts that award the Group control over the use of a leased asset for a period of time in exchange for consideration, are accounted for as leases. Upon initial recognition, the Group recognizes a liability at the present value of the balance of future lease payments (these payments do not include certain variable lease payments), and concurrently recognizes a right-of-use asset at the same amount of the lease liability, adjusted for any prepaid or accrued lease payments, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the Group’s leases is not readily determinable, the incremental borrowing rate of the lessee is used. Subsequent to initial recognition, the right-of-use asset is accounted for using the cost model, and depreciated over the shorter of the lease term or useful life of the asset. The Group has elected to apply the practical expedient by which short-term leases of up to one year and/or leases in which the underlying asset has a low value, are accounted for such that lease payments are recognized in profit or loss on a straight-line basis, over the lease term, without recognizing an asset and/or liability in the statement of financial position. The lease term The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will or will not exercise the option, respectively. Variable lease payments Variable lease payments that depend on an index or a rate, are initially measured using the index or rate existing at the commencement of the lease and are included in the measurement of the lease liability. When the cash flows of future lease payments change as the result of a change in an index or a rate, the balance of the liability is adjusted against the right-of-use asset. Other variable lease payments that are not included in the measurement of the lease liability are recognized in profit or loss in the period in which the event or condition that triggers payment occurs. Depreciation of right-of-use asset After lease commencement, a right-of-use asset is measured on a cost basis less accumulated depreciation and accumulated impairment losses and is adjusted for re-measurements of the lease liability. Depreciation is calculated on a straight-line basis over the useful life or contractual lease period, whichever is earlier, as follows: ● Buildings 5 years ● Motor vehicles 3 years Reassessment of lease liability Upon the occurrence of a significant event or a significant change in circumstances that is under the control of the Group and had an effect on the decision whether it is reasonably certain that the Group will exercise an option, which was not included before in the lease term, or will not exercise an option, which was previously included in the lease term, the Group re-measures the lease liability according to the revised leased payments using a new discount rate. The change in the carrying amount of the liability is recognized against the right-of-use asset, or recognized in profit or loss if the carrying amount of the right-of-use asset was reduced to zero. Lease modifications When a lease modification increases the scope of the lease by adding a right to use one or more underlying assets, and the consideration for the lease increased by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the contract’s circumstances, the Group accounts for the modification as a separate lease. In all other cases, on the initial date of the lease modification, the Group allocates the consideration in the modified contract to the contract components, determines the revised lease term and measures the lease liability by discounting the revised lease payments using a revised discount rate. For lease modifications that decrease the scope of the lease, the Group recognizes a decrease in the carrying amount of the right-of-use asset in order to reflect the partial or full cancellation of the lease, and recognizes in profit or loss a profit (or loss) that equals the difference between the decrease in the right-of-use asset and re-measurement of the lease liability. For other lease modifications, the Group re-measures the lease liability against the right-of-use asset. |
Financing income and expenses | Q. Financing income and expenses Financing income comprised of interest income on deposits, revaluation of liability in respect of government grants, foreign currency gains and fair value changes of financial liabilities through profit and loss. Financing expenses comprised of bank fees, exchange rate differences, revaluation of liability in respect of government grants and fair value changes of financial liabilities through profit and loss. Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. |
Employee benefits | R. Employee benefits Severance pay The Group’s liability for severance pay for its employees is calculated pursuant to Israeli Severance Pay Law (1963) (the “Severance Pay Law”). The Group’s liability is covered by monthly deposits with severance pay funds and insurance policies. For all of the Group’s employees, the payments to pension funds and to insurance companies exempt the Group from any obligation towards its employees, in accordance with Section 14 of the Severance Pay Law, which is accounted for as a defined contribution plan (as defined below). Accumulated amounts in pension funds and in insurance companies are not under the Group’s control or management and, accordingly, neither those amounts nor the corresponding accrual for severance pay are presented in the consolidated statements of financial position. A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an expense in profit or loss in the periods during which related services are rendered by employees. Share-based payment transactions The grant date fair value of share-based payment awards granted to employees is recognized as a salary expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. Share-based payment arrangements in which the subsidiary grants rights to parent company equity instruments to its employees are accounted for by the Group as equity-settled share-based payment transactions. |
Loss per share | S. Loss per share The Group presents basic and diluted loss per share for its Ordinary Shares. Basic loss per share is calculated by dividing the loss attributable to holders of Ordinary Shares of the Company by the weighted average number of Ordinary Shares outstanding during the year, adjusted for treasury shares. Diluted loss per share is determined by adjusting the loss attributable to holders of Ordinary Shares of the Company and the weighted average number of Ordinary Shares outstanding, after adjustment for treasury shares, for the effects of all dilutive potential Ordinary Shares. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of expected effect of the standard's application on the relevant items of the statement of financial position | According to IAS 17 The change According to IFRS 16 Thousands Thousands USD Thousands USD Right-of-use assets - 1,891 1,891 Other payables (57 ) 57 - Lease liabilities - (2,192 ) (2,192 ) Other long-term liabilities (244 ) 244 - |
Schedule of details regarding the exchange rate | Consumer Price Index Euro NIS December 31, 2019 100.8 1.10 0.29 December 31, 2018 100.2 1.14 0.27 December 31, 2017 100.4 1.20 0.29 Change in percentages: Year ended December 31, 2019 (0.05 ) (3.5 ) 7.40 Year ended December 31, 2018 (0.19 ) (5 ) (6.89 ) Year ended December 31, 2017 (0.47 ) 14.28 11.53 |
Schedule of property plant and equipment, useful life span of the assets | % Machinery and equipment (mainly 7%) 7 - 25 Computers 20 - 33 Office furniture and equipment 7 - 15 Leasehold Improvements 7 - 10 Printers leased to customers 25 |
Cash and Restricted Deposits (T
Cash and Restricted Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Restricted Deposits [Abstract] | |
Schedule of components of cash | December 31, 2018 2019 Thousands Thousands Bank accounts- dominated in NIS 583 348 Bank accounts- dominated in USD 3,167 3,536 Bank accounts- other 3 10 3,753 3,894 |
Trade Receivables and Other R_2
Trade Receivables and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade Receivables and Other Receivables [Abstract] | |
Schedule of trade receivables | December 31, 2018 2019 Thousands Thousands Open balances 1,233 1,816 Income receivables 80 - 1,313 1,816 |
Schedule of other receivables | December 31, 2018 2019 Thousands Thousands Government authorities 354 332 Prepaid expenses 205 221 Others 11 17 570 570 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory [Abstract] | |
Schedule of inventory | December 31, 2018 2019 Thousands Thousands Raw materials and work in progress 2,205 2,636 Finished goods 911 907 3,116 3,543 |
Property Plant and Equipment,_2
Property Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant and Equipment Net [Abstract] | |
Schedule of property plant and equipment, net | Machinery and equipment Computers Office furniture and equipment Leasehold improvements Printers leased to clients Total Thousands USD Thousands USD Thousands USD Thousands USD Thousands USD Thousands USD Cost As of January 1, 2018 3,427 416 151 1,676 301 5,971 Additions 1,551 61 7 43 90 1,752 Disposals (846 ) (6 ) - - (192 ) (1,044 ) As of December 31, 2018 4,132 471 158 1,719 199 6,679 Additions 770 5 32 26 - 833 Disposals (306 ) - (3 ) - (87 ) (396 ) Designation change 112 (112 ) - As of December 31, 2019 4,708 476 187 1,745 0 7,116 Depreciation accrued As of January 1, 2018 404 256 23 76 40 799 Additions 855 112 14 162 43 1,186 Disposals (467 ) (3 ) - - (36 ) (506 ) As of December 31, 2018 792 365 37 238 47 1,479 Additions 799 65 17 166 13 1,060 Disposals (133 ) - (1 ) - (32 ) (166 ) Designation change 28 - - - (28 ) - As of December 31, 2019 1,486 430 53 404 0 2,373 Carrying amount As of December 31, 2019 3,222 46 134 1,341 - 4,743 As of December 31, 2018 3,340 106 121 1,481 152 5,200 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets development expenses capitalized | 2018 2019 Thousands Thousands Balance as of January 1 6,755 5,983 Amortization (772 ) (772 ) Balance as of December 31 5,983 5,211 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiaries [Abstract] | |
Summary of group's material subsidiaries | Principal location of the The Group’s ownership interest in the subsidiary company’s 2018 2019 Name of company activity % % Nano Dimension Technologies Ltd. Israel 100 % 100 % Nano Dimension IP Ltd. (*) Israel 100 % 100 % Nano Dimension USA Inc. USA 100 % 100 % Nano Dimension (HK) Limited (*) Asia-Pacific 100 % 100 % (*) Nano Dimension IP Ltd. and Nano Dimension (HK) Limited were incorporated by the Company in 2018. Nano Dimension IP Ltd. had no material activity during 2019. |
Other Payables (Tables)
Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Payables [Abstract] | |
Schedule of other payables | December 31, 2018 2019 Thousands USD Thousands USD Accrued expenses 252 406 Contract liabilities 355 991 Current portion of other long-term liability 57 - Lease liability - 1,055 Employees and related liabilities 665 616 Government authorities 272 249 Current maturities in respect of government grants 550 231 Others 27 27 2,178 3,575 |
Liability in Respect of Gover_2
Liability in Respect of Government Grants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability in Respect of Government Grants [Abstract] | |
Schedule of liability in respect of government grants | 2018 2019 Thousands USD Thousands USD Balance as of January 1 1,171 1,445 Amounts received during the year 121 121 Payment of royalties (70 ) (185 ) Amounts recognized as an offset from research and development expenses (42 ) (49 ) Revaluation of the liability 265 (57 ) Balance as of December 31 1,445 1,275 Current maturities in respect of government grants 550 231 Long term liability in respect of government grants 895 1,044 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of share capital | Ordinary Shares 2018 2019 Issued and paid-up share capital as at December 31 97,099 208,926 Authorized share capital 200,000 500,000 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Schedule of revenue | For the year ended December 31 2017 2018 2019 Thousands Thousands Thousands Consumables 185 190 650 Support services (*) - 400 598 Sales of printers (*) 276 4,320 5,770 Total 461 4,910 7,018 Printers rental 368 190 52 Total revenue 829 5,100 7,070 (*) The Company's identified separated distinct performance obligations that include: Printer, maintenance, training and installation. The Company allocates the transaction price to the identified performance obligations based on the residual approach, while allocating the estimated standalone selling prices for performance obligations relating to maintenance, training and installation services, and the residual is allocated to the printer. |
Schedule of revenues per geographical locations | For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD USA 481 2,727 3,367 Asia Pacific 156 1,239 1,591 Europe and Israel(*) 192 1,134 2,112 Total revenue 829 5,100 7,070 (*) The Company combined all consumables revenues into the Europe and Israel geography, due to immateriality of the amounts. |
Schedule of timing of revenue recognition | For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Goods and services transferred over time 368 590 650 Goods transferred at a point in time 461 4,510 6,420 Total revenue 829 5,100 7,070 |
Schedule of contract assets and contract liabilities deriving from contracts with customers | December 31, 2018 2019 Thousands USD Thousands USD Open balances 1,233 1,816 Income receivables 80 - Contract liabilities 355 991 |
Cost of Revenues (Tables)
Cost of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cost of Revenues [Abstract] | |
Schedule of cost of revenues | For the year ended December 31 2017 2018 2019 Thousands USD Thousands USD Thousands USD According to sources of revenue - Consumables 62 195 240 Support services - 403 855 Sales of printers 228 2,938 3,192 Printers rental 119 58 25 Total 409 3,594 4,312 |
Further Detail of Profit or L_2
Further Detail of Profit or Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Further Detail of Profit or Loss [Abstract] | |
Schedule of further detail of profit or loss | Note 14 Further detail of profit or loss For the year ended December 31 2017 2018 2019 Thousands USD Thousands USD Thousands USD A. Research and development expenses, net Payroll 7,419 4,890 4,834 Materials 1,844 1,065 1,001 Subcontractors 151 70 82 Patent registration 57 70 144 Depreciation 442 880 1,534 Rental fees and maintenance 824 908 197 Other 244 782 339 10,981 8,665 8,131 Less – government grants (162 ) (42 ) (49 ) 10,819 8,623 8,082 B. Sales and marketing expenses Payroll 1,497 2,226 2,873 Marketing, advertising and commissions 383 1,381 1,808 Rental fees and maintenance 59 64 114 Travel abroad 234 201 317 Depreciation 10 186 212 Other - 201 145 2,183 4,259 5,469 C. General and administrative expenses Payroll 762 996 1,000 Fees 68 32 22 Professional services 1,460 1,114 1,358 Directors pay 493 306 214 Office expenses 282 311 359 Travel abroad 86 45 37 Depreciation - - 78 Rental fees and maintenance 84 91 43 Other 128 107 159 3,363 3,002 3,270 D. Finance income Revaluation of liability in respect of government grants 102 - 58 Revaluation of financial liabilities at fair value through profit or loss (**) - - 8,707 Bank interest and fees - 54 - 102 54 8,765 Finance expense Exchange rate differences 889 127 151 Bank fees 28 - 14 Finance expense in respect of lease liability (*) - - 425 Fundraising expenses - - 1,693 Revaluation of liability in respect of government grants - 265 - 917 392 2,283 (*) See Note 2.C regarding initial application of IFRS 16. (**) See Note 11.B regarding financing transactions resulted in issuance of financial instruments. |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes on Income [Abstract] | |
Schedule of adjustment between the theoretical tax amount and the tax amount | For the year ended December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Total comprehensive loss (17,503 ) (15,488 ) (8,353 ) Statutory tax rate 24 % 23 % 23 % Theoretical tax benefit (4,201 ) (3,562 ) (1,921 ) Increase in tax liability due to: Non-deductible expenses 629 280 75 Losses and benefits for tax purposes for which no deferred taxes were recorded 3,572 3,282 1,846 Taxes on income - - - |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loss Per Share [Abstract] | |
Schedule of loss per share | For the year ended December 31 2017 2018 2019 Weighted average of number of Ordinary Shares used in the calculation of basic and diluted loss per share (in thousands) 56,540 91,799 175,634 Net loss used in calculation (thousands USD) 17,503 15,488 8,353 |
Weighted average number of ordinary shares | Year ended December 31 2017 2018 2019 Thousands of Thousands of Thousands of shares of NIS 0.1 shares of NIS 0.1 shares of NIS 0.1 par value par value par value Balance as at January 1 49,616 61,984 96,572 Effect of share options exercised 303 70 6,754 Effect of shares issued during the year 6,621 29,745 72,308 Weighted average number of Ordinary Shares used to calculate basic and diluted earnings (loss) per share as at December 31 56,540 91,799 175,634 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement Line Items [Line Items] | |
Schedule of fair value of the share options | 17.A- Consultants and Employees 17.B- Directors 17.C- Yissum Number of share options granted 17,148,722 6,090,000 559,097 Fair value in the grant date (thousands USD) 6,749 3,181 742 Range of share price (USD) 0.11 – 1.80 0.11 – 1.89 1.84 Range of exercise price (USD) 0– 2.30 0.15 – 1.84 0.71 Range of expected share price volatility 40.3%-65.06 % 53.75%-61.27 % 57.26 % Range of estimated life (years) 1.5 – 9.01 4 – 5 5 Range of weighted average of risk-free interest rate 0.56%-1.98 % 0.88%-1.32 % 1.15 % Expected dividend yield - - - Outstanding as of December 31, 2019 26,056,905 3,921,750 223,697 Exercisable as of December 31, 2019 2,691,568 2,013,750 223,697 |
Employees and consultants [Member] | |
Statement Line Items [Line Items] | |
Schedule of fair value of the share options | 2018 2019 Outstanding at January 1 4,609,634 5,647,175 Granted during the year 2,652,500 23,061,122 Exercised during the year (590,292 ) (1,167 ) Forfeited or expired during the year (1,024,667 ) (2,650,225 ) Outstanding at December 31 5,647,175 26,056,905 Exercisable as of December 31 2,476,800 2,691,568 |
Directors [Member] | |
Statement Line Items [Line Items] | |
Schedule of fair value of the share options | 2018 2019 Outstanding at January 1 3,145,001 2,070,000 Granted during the year 300,000 2,545,000 Exercised during the year - - Forfeited or expired during the year (1,375,001 ) (693,250 ) Outstanding at December 31 2,070,000 3,921,750 Exercisable as of December 31 1,913,750 2,013,750 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Schedule of classification and linkage terms of financial instruments | NIS Linked to the U.S. dollar Linked to the Euro and other Total December 31, 2019 Cash 348 3,536 10 3,894 Restricted deposits 377 31 - 408 Trade receivables - 1,586 230 1,816 Other receivables 10 226 - 236 735 5,379 240 6,354 Financial liabilities at amortized cost 4,503 6,740 13 11,256 Total net financial assets (liabilities) (3,768 ) (1,361 ) 227 (4,902 ) December 31, 2018 Cash 583 3,169 1 3,753 Restricted deposits 347 21 - 368 Trade receivables - 1,079 234 1,313 Other receivables 10 205 - 215 940 4,474 235 5,649 Financial liabilities at amortized cost 2,850 1,880 1 4,731 Total net financial assets (liabilities) (1,910 ) 2,594 234 918 |
Schedule of sensitivity analysis of changes in exchange rate of dollar | Profit (loss) from the change Thousands USD Increase at a rate of 5% (189 ) Increase at a rate of 10% (377 ) Decrease at a rate of 5% 189 Decrease at a rate of 10% 377 |
Schedule of fair value of financial instruments position | December 31, 2019 Level 1 Level 2 Level 3 (*) Total Thousands USD Thousands USD Thousands USD Thousands USD Financial liabilities: Warrants - 793 1,364 2,157 Convertible notes - - 1,223 1,223 Financial derivatives - - 318 318 Total - 793 2,905 3,698 |
Schedule of fair value sensitivity aalysis of financial instruments | Profit Thousands USD Volatility +10% 17 Volatility -10% 48 Share price +10% (361 ) Share price -10% 424 |
Schedule of fair value of financial liabilities | 2019 Fair value through profit or loss Warrants Convertible notes Financial derivatives Total Thousands USD Thousands USD Thousands USD Thousands USD Financial liabilities: Balance as at January 1, 2019 - - - - Initial fair value (*) 1,902 1,569 805 4,276 Amount reclassified to equity due to note conversion - (1,991 ) - (1,991 ) amounts recorded as finance expenses (income) (538 ) 1,645 (487 ) 620 Balance as at December 31, 2019 (**) 1,364 1,223 318 2,905 (*) The initial fair value is presented net of the difference between the fair value and the consideration received, see note 11.B.4. (**) Presented net of the loss not initially recognized- as of December 31, 2019- $4,717,000. |
Schedule of repayment dates of financial liabilities | First year More than a year Total Thousands USD Thousands USD Thousands USD December 31, 2019 Trade payables 850 - 850 Other payables 3,547 28 3,575 Lease liabilities - 2,089 2,089 Liability in respect of government grants - 1,044 1,044 4,397 3,161 7,558 December 31, 2018 Trade payables 1,414 - 1,414 Other payables 2,150 28 2,178 Other long-term liabilities - 244 244 Liability in respect of government grants - 895 895 3,564 1,167 4,731 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease liability and right of use asset | Buildings Vehicles Total Thousands USD Thousands USD Thousands USD Balance as at January 1, 2019 1,687 204 1,891 Depreciation 706 136 842 Additions 1,525 99 1,624 Balance as at December 31, 2019 2,506 167 2,673 |
Schedule of maturity analysis of the group's lease liabilities | December 31, Thousands Less than one year 1,055 One to five years 2,089 Total 3,144 Current maturities of lease liability 1,055 Long-term lease liability 2,089 |
Transactions and Balances wit_2
Transactions and Balances with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transactions and Balances With Related Parties [Abstract] | |
Schedule of balances with related parties | December 31, 2018 2019 Thousands USD Thousands USD Other payables 74 130 |
Shareholder and other related parties benefits | Year ended on December 31, 2017 2018 2019 Thousands USD Thousands USD Thousands USD Salaries and related expenses- related parties employed by the Group 1,138 829 1,047 Number of related parties 5 4 4 Compensation for directors not employed by the Group 494 311 218 Number of directors 9 7 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
Other payables | $ 3,575 | $ 2,178 |
IAS 17 [Member] | ||
Statement Line Items [Line Items] | ||
Right-of-use assets | ||
Other payables | (57) | |
Lease liabilities | ||
Other long-term liabilities | (244) | |
The change [Member] | ||
Statement Line Items [Line Items] | ||
Right-of-use assets | 1,891 | |
Other payables | 57 | |
Lease liabilities | (2,192) | |
Other long-term liabilities | 244 | |
IFRS 16 [Member] | ||
Statement Line Items [Line Items] | ||
Right-of-use assets | 1,891 | |
Other payables | ||
Lease liabilities | (2,192) | |
Other long-term liabilities |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |||
Consumer Price Index | 100.8 | 100.2 | 100.4 |
Change in percentages of consumer price index | (0.05%) | (0.19%) | (0.47%) |
Exchange rate of Euro | 1.10 | 1.14 | 1.20 |
Change in percentages of Euro | (3.5) | (5) | 14.28 |
Exchange rate of NIS | 0.29 | 0.27 | 0.29 |
Change in percentages of NIS | 7.40% | (6.89%) | 11.53% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Machinery and equipment [Member] | Minimum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 7.00% |
Machinery and equipment [Member] | Maximum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 25.00% |
Computers [Member] | Minimum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 20.00% |
Computers [Member] | Maximum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 33.00% |
Office furniture and equipment [Member] | Minimum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 7.00% |
Office furniture and equipment [Member] | Maximum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 15.00% |
Leasehold Improvements [Member] | Minimum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 7.00% |
Leasehold Improvements [Member] | Maximum [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 10.00% |
Printers leased to customers [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates useful life span of assets | 25.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Textual) | |
Estimated useful lives of the capitalized development costs | 10 years |
Buildings [member] | |
Summary of Significant Accounting Policies (Textual) | |
Estimated useful lives of the capitalized development costs | 5 years |
Motor vehicles [member] | |
Summary of Significant Accounting Policies (Textual) | |
Estimated useful lives of the capitalized development costs | 3 years |
Minimum [Member] | |
Summary of Significant Accounting Policies (Textual) | |
Lease liability discount rate | 11.20% |
Maximum [Member] | |
Summary of Significant Accounting Policies (Textual) | |
Lease liability discount rate | 11.98% |
Cash and Restricted Deposits (D
Cash and Restricted Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Restricted Deposits [Abstract] | ||
Bank accounts- dominated in NIS | $ 348 | $ 583 |
Bank accounts- dominated in USD | 3,536 | 3,167 |
Bank accounts- other | 10 | 3 |
Cash | $ 3,894 | $ 3,753 |
Cash and Restricted Deposits _2
Cash and Restricted Deposits (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Restricted Deposits (Textual) | ||
Restricted deposits | $ 408 | $ 368 |
Credit cards [Member] | ||
Cash and Restricted Deposits (Textual) | ||
Restricted deposits | $ 31 | |
Credit cards [Member] | Maximum [Member] | ||
Cash and Restricted Deposits (Textual) | ||
Annual interest rate | 0.05% | |
Credit cards [Member] | Minimum [Member] | ||
Cash and Restricted Deposits (Textual) | ||
Annual interest rate | 0.01% | |
Lease [Member] | ||
Cash and Restricted Deposits (Textual) | ||
Restricted deposits | $ 377 | |
Annual interest rate | 0.01% |
Trade Receivables and Other R_3
Trade Receivables and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade Receivables and Other Receivables [Abstract] | |||
Open balances | $ 1,816 | $ 1,233 | |
Income receivables | 80 | ||
Trade receivables | $ 1,816 | $ 1,313 | [1] |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Trade Receivables and Other R_4
Trade Receivables and Other Receivables (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade Receivables and Other Receivables [Abstract] | ||
Government authorities | $ 332 | $ 354 |
Prepaid expenses | 221 | 205 |
Others | 17 | 11 |
Other receivables | $ 570 | $ 570 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory [Abstract] | |||
Raw materials and work in progress | $ 2,636 | $ 2,205 | |
Finished goods | 907 | 911 | |
Total inventory | $ 3,543 | $ 3,116 | [1] |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Property Plant and Equipment,_3
Property Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cost | |||
Beginning balance | $ 6,679 | $ 5,971 | |
Additions | 833 | 1,752 | |
Designation change | |||
Disposals | (396) | (1,044) | |
Ending balance | 7,116 | 6,679 | |
Depreciation accrued | |||
Beginning balance | 1,479 | 799 | |
Additions | 1,060 | 1,186 | |
Designation change | |||
Disposals | (166) | (506) | |
Ending balance | 2,373 | 1,479 | |
Carrying amount | |||
Property plant and equipment, net | 4,743 | 5,200 | [1] |
Machinery and equipment [Member] | |||
Cost | |||
Beginning balance | 4,132 | 3,427 | |
Additions | 770 | 1,551 | |
Designation change | 112 | ||
Disposals | (306) | (846) | |
Ending balance | 4,708 | 4,132 | |
Depreciation accrued | |||
Beginning balance | 792 | 404 | |
Additions | 799 | 855 | |
Designation change | 28 | ||
Disposals | (133) | (467) | |
Ending balance | 1,486 | 792 | |
Carrying amount | |||
Property plant and equipment, net | 3,222 | 3,340 | |
Computers [Member] | |||
Cost | |||
Beginning balance | 471 | 416 | |
Additions | 5 | 61 | |
Disposals | (6) | ||
Ending balance | 476 | 471 | |
Depreciation accrued | |||
Beginning balance | 365 | 256 | |
Additions | 65 | 112 | |
Disposals | (3) | ||
Ending balance | 430 | 365 | |
Carrying amount | |||
Property plant and equipment, net | 46 | 106 | |
Office furniture and equipment [Member] | |||
Cost | |||
Beginning balance | 158 | 151 | |
Additions | 32 | 7 | |
Disposals | (3) | ||
Ending balance | 187 | 158 | |
Depreciation accrued | |||
Beginning balance | 37 | 23 | |
Additions | 17 | 14 | |
Disposals | (1) | ||
Ending balance | 53 | 37 | |
Carrying amount | |||
Property plant and equipment, net | 134 | 121 | |
Leasehold improvements [Member] | |||
Cost | |||
Beginning balance | 1,719 | 1,676 | |
Additions | 26 | 43 | |
Disposals | |||
Ending balance | 1,745 | 1,719 | |
Depreciation accrued | |||
Beginning balance | 238 | 76 | |
Additions | 166 | 162 | |
Disposals | |||
Ending balance | 404 | 238 | |
Carrying amount | |||
Property plant and equipment, net | 1,341 | 1,481 | |
Printers leased to clients [Member] | |||
Cost | |||
Beginning balance | 199 | 301 | |
Additions | 90 | ||
Designation change | (112) | ||
Disposals | (87) | (192) | |
Ending balance | 0 | 199 | |
Depreciation accrued | |||
Beginning balance | 47 | 40 | |
Additions | 13 | 43 | |
Designation change | (28) | ||
Disposals | (32) | (36) | |
Ending balance | 0 | 47 | |
Carrying amount | |||
Property plant and equipment, net | $ 152 | ||
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Property Plant and Equipment,_4
Property Plant and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant and Equipment, Net (Textual) | ||
Acquired property plant and equipment | $ 9 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Intangible Assets [Abstract] | ||||
Balance as of January 1 | $ 5,983 | [1] | $ 6,755 | |
Amortization | (772) | (772) | ||
Balance as of December 31 | $ 5,211 | $ 5,983 | [1] | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Subsidiaries (Details)
Subsidiaries (Details) - Subsidiaries [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Nano Dimension Technologies Ltd. [Member] | |||
Statement Line Items [Line Items] | |||
Name of company | Nano Dimension Technologies Ltd. | Nano Dimension Technologies Ltd. | |
Principal location of the company's activity | Israel | Israel | |
The Group's ownership interest in the subsidiary | 100.00% | 100.00% | |
Nano Dimension IP Ltd. [Member] | |||
Statement Line Items [Line Items] | |||
Name of company | [1] | Nano Dimension IP Ltd. | Nano Dimension IP Ltd. |
Principal location of the company's activity | [1] | Israel | Israel |
The Group's ownership interest in the subsidiary | [1] | 100.00% | 100.00% |
Nano Dimension USA Inc. [Member] | |||
Statement Line Items [Line Items] | |||
Name of company | Nano Dimension USA Inc. | Nano Dimension USA Inc. | |
Principal location of the company's activity | USA | USA | |
The Group's ownership interest in the subsidiary | 100.00% | 100.00% | |
Nano Dimension (HK) Limited [Member] | |||
Statement Line Items [Line Items] | |||
Name of company | [1] | Nano Dimension (HK) Limited | Nano Dimension (HK) Limited |
Principal location of the company's activity | [1] | Asia-Pacific | Asia-Pacific |
The Group's ownership interest in the subsidiary | [1] | 100.00% | 100.00% |
[1] | Nano Dimension IP Ltd. and Nano Dimension (HK) Limited were incorporated by the Company in 2018. Nano Dimension IP Ltd. had no material activity during 2019. |
Other Payables (Details)
Other Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Payables [Abstract] | |||
Accrued expenses | $ 406 | $ 252 | |
Contract liabilities | 991 | 355 | |
Current portion of other long-term liability | 57 | ||
Lease liability | 1,055 | ||
Employees and related liabilities | 616 | 665 | |
Government authorities | 249 | 272 | |
Current maturities in respect of government grants | 231 | 550 | |
Others | 27 | 27 | |
Other payables, Total | $ 3,575 | $ 2,178 | [1] |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Liability in Respect of Gover_3
Liability in Respect of Government Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Liability in Respect of Government Grants [Abstract] | |||
Balance as of January 1 | $ 1,445 | $ 1,171 | |
Amounts received during the year | 121 | 121 | |
Payment of royalties | (185) | (70) | |
Amounts recognized as an offset from research and development expenses | (49) | (42) | |
Revaluation of the liability | (57) | 265 | |
Balance as of December 31 | 1,275 | 1,445 | |
Current maturities in respect of government grants | 231 | 550 | |
Long term liability in respect of government grants | $ 1,044 | $ 895 | [1] |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Liability in Respect of Gover_4
Liability in Respect of Government Grants (Details Textual) $ in Thousands | 72 Months Ended |
Dec. 31, 2019USD ($) | |
Statement Line Items [Line Items] | |
Total approved budget for development project | $ 4,450 |
Royalties | 3.00% |
Payment of accrued less royalties | $ 1,547 |
Top of range [member] | |
Statement Line Items [Line Items] | |
Percentage of financing from the government | 50.00% |
Discount rate | 30.00% |
Bottom of Range [Member] | |
Statement Line Items [Line Items] | |
Percentage of financing from the government | 30.00% |
Discount rate | 19.00% |
Equity (Details)
Equity (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Issued and paid-up share capital as at December 31 | 208,926 | 97,099 |
Authorized share capital | 500,000 | 200,000 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 14, 2017 | Jun. 01, 2017 | Aug. 31, 2019 | Feb. 19, 2018 | May 17, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 04, 2020 | Mar. 31, 2019 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | ||||||||||||
Financial liability | $ 7,558 | $ 4,731 | ||||||||||
Finance income | 8,765 | 54 | $ 102 | |||||||||
Influence on equity | 11,602 | 15,572 | [1] | 18,166 | $ 19,303 | |||||||
Convertible promissory notes [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Consideration received, net | 4,276 | |||||||||||
Financial liability | 11,609 | |||||||||||
Convertible notes | 7,333 | |||||||||||
Loss on conversion price | 2,003 | |||||||||||
Remaining financial liabilities | $ 2,905 | |||||||||||
Convertible promissory notes [Member] | Non-adjusting events after reporting period [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Aggregate principal amount | $ 200 | |||||||||||
Treasury Shares [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Ordinary shares issued | 527,032 | |||||||||||
Constituted issued and paid up share capital percentage | 25.00% | |||||||||||
Influence on equity | $ (1,509) | $ (1,509) | $ (1,509) | $ (1,509) | ||||||||
ADS [Member] | Non-adjusting events after reporting period [member] | Warrants [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Exercise price | $ 1.914 | |||||||||||
ADS [Member] | Convertible promissory notes [Member] | Non-adjusting events after reporting period [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Conversion price | $ 1.74 | |||||||||||
Ordinary Shares [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Gross proceeds from offering | $ 10,560 | |||||||||||
Financial liability | 793 | |||||||||||
Finance income | $ 9,327 | |||||||||||
Right to purchase exercised ordinary shares | 1,881 | |||||||||||
Ordinary Shares [Member] | Investor [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Right to purchase exercised ordinary shares | 1,881 | |||||||||||
Private Placement [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Ordinary shares issued | 30,472,400 | |||||||||||
Financial liability | $ 2,893 | |||||||||||
Finance income | 620 | |||||||||||
Aggregate principal amount | $ 4,276 | $ 1,767 | ||||||||||
Additional debt amount | 2,700 | |||||||||||
Gross proceeds | $ 7,000 | |||||||||||
Securities purchase agreement, description | Accordingly, from the consideration received, approximately $1,569,000 was attributed to the convertible notes of the first tranche, $1,902,000 was attributed to the warrants of the first tranche, and a total of approximately $805,000 was attributed to the rights with respect to the second and third tranches. | |||||||||||
Maturity date | Mar. 4, 2021 | |||||||||||
Conversion price | $ 2.90 | |||||||||||
Private Placement [Member] | Ordinary Shares [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Ordinary shares issued | 4,078,759 | 4,044,050 | 3,430,000 | |||||||||
Exercise price | $ 1.17 | $ 1.17 | $ 1.17 | |||||||||
Consideration received, net | $ 4,800 | $ 4,700 | $ 4,000 | $ 12,420 | ||||||||
Public Offering [Member] | Ordinary Shares [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Net issuance consideration, total | 1,224 | |||||||||||
Attributed to warrants | $ 10,201 | |||||||||||
Ordinary shares issued | 80,000,000 | |||||||||||
Gross proceeds from offering | $ 1,440 | |||||||||||
Consideration received, net | $ 12,000 | |||||||||||
Warrants description | 80,000,000 non-tradable warrants (exercisable into 1,600,000 ADSs) with an exercise price of $8.625 per ADS and term of 5 years and 60,000,000 non-tradable rights to purchase shares (exercisable into 1,200,000 ADSs) with an exercise price of $7.5 per ADS and term of 6 months. | |||||||||||
Public Offering [Member] | Ordinary Shares [Member] | ADS [Member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Net issuance consideration, total | $ 216 | |||||||||||
Attributed to warrants | $ 1,799 | |||||||||||
Ordinary shares issued | 16,000,000 | |||||||||||
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement Line Items [Line Items] | ||||
Total | $ 7,018 | $ 4,910 | $ 461 | |
Printers rental | 52 | 190 | 368 | |
Total revenue | 7,070 | 5,100 | 829 | |
Consumables [Member] | ||||
Statement Line Items [Line Items] | ||||
Total | 650 | 190 | 185 | |
Support services [Member] | ||||
Statement Line Items [Line Items] | ||||
Total | [1] | 598 | 400 | |
Sales of printers [Member] | ||||
Statement Line Items [Line Items] | ||||
Total | [1] | $ 5,770 | $ 4,320 | $ 276 |
[1] | The Company's identified separated distinct performance obligations that include: Printer, maintenance, training and installation. The Company allocates the transaction price to the identified performance obligations based on the residual approach, while allocating the estimated standalone selling prices for performance obligations relating to maintenance, training and installation services, and the residual is allocated to the printer. |
Revenues (Details 1)
Revenues (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement Line Items [Line Items] | ||||
Total revenue | $ 7,070 | $ 5,100 | $ 829 | |
USA [Member] | ||||
Statement Line Items [Line Items] | ||||
Total revenue | 3,367 | 2,727 | 481 | |
Asia Pacific [Member] | ||||
Statement Line Items [Line Items] | ||||
Total revenue | 1,591 | 1,239 | 156 | |
Europe and Israel [Member] | ||||
Statement Line Items [Line Items] | ||||
Total revenue | [1] | $ 2,112 | $ 1,134 | $ 192 |
[1] | The Company combined all consumables revenues into the Europe and Israel geography, due to immateriality of the amounts. |
Revenues (Details 2)
Revenues (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Total revenue | $ 7,070 | $ 5,100 | $ 829 |
Goods and services transferred over time [Member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 650 | 590 | 368 |
Goods transferred at a point in time [Member] | |||
Statement Line Items [Line Items] | |||
Total revenue | $ 6,420 | $ 4,510 | $ 461 |
Revenues (Details 3)
Revenues (Details 3) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues [Abstract] | ||
Open balances | $ 1,816 | $ 1,233 |
Income receivables | 80 | |
Contract liabilities | $ 991 | $ 355 |
Cost of Revenues (Details)
Cost of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Cost of revenues | $ 4,312 | $ 3,594 | $ 409 |
Consumables [Member] | |||
Statement Line Items [Line Items] | |||
Cost of revenues | 240 | 195 | 62 |
Support services [Member] | |||
Statement Line Items [Line Items] | |||
Cost of revenues | 855 | 403 | |
Sales of printers [Member] | |||
Statement Line Items [Line Items] | |||
Cost of revenues | 3,192 | 2,938 | 228 |
Printers rental [Member] | |||
Statement Line Items [Line Items] | |||
Cost of revenues | $ 25 | $ 58 | $ 119 |
Further Detail of Profit or L_3
Further Detail of Profit or Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
A. Research and development expenses, net | ||||
Payroll | $ 4,834 | $ 4,890 | $ 7,419 | |
Materials | 1,001 | 1,065 | 1,844 | |
Subcontractors | 82 | 70 | 151 | |
Patent registration | 144 | 70 | 57 | |
Depreciation | 1,534 | 880 | 442 | |
Rental fees and maintenance | 197 | 908 | 824 | |
Other | 339 | 782 | 244 | |
Research and development expenses, gross | 8,131 | 8,665 | 10,981 | |
Less - government grants | (49) | (42) | (162) | |
Research and development expenses, net | 8,082 | 8,623 | 10,819 | |
B. Sales and marketing expenses | ||||
Payroll | 2,873 | 2,226 | 1,497 | |
Marketing, advertising and commissions | 1,808 | 1,381 | 383 | |
Rental fees and maintenance | 114 | 64 | 59 | |
Travel abroad | 317 | 201 | 234 | |
Depreciation | 212 | 186 | 10 | |
Other | 145 | 201 | ||
Sales and marketing expenses | 5,469 | 4,259 | 2,183 | |
C. General and administrative expenses | ||||
Payroll | 1,000 | 996 | 762 | |
Fees | 22 | 32 | 68 | |
Professional services | 1,358 | 1,114 | 1,460 | |
Directors pay | 214 | 306 | 493 | |
Office expenses | 359 | 311 | 282 | |
Travel abroad | 37 | 45 | 86 | |
Depreciation | 78 | |||
Rental fees and maintenance | 43 | 91 | 84 | |
Other | 159 | 107 | 128 | |
General and administrative expenses | 3,270 | 3,002 | 3,363 | |
D. Finance income | ||||
Revaluation of liability in respect of government grants | 58 | 102 | ||
Revaluation of financial liabilities at fair value through profit or loss | [1] | 8,707 | ||
Bank interest and fees | 54 | |||
Finance income | 8,765 | 54 | 102 | |
Finance expense | ||||
Exchange rate differences | 151 | 127 | 889 | |
Bank fees | 14 | 28 | ||
Finance expense in respect of lease liability | [2] | 425 | ||
Fundraising expenses | 1,693 | |||
Revaluation of liability in respect of government grants | 265 | |||
Finance expense | $ 2,283 | $ 392 | $ 917 | |
[1] | See Note 11.B regarding financing transactions resulted in issuance of financial instruments. | |||
[2] | See Note 2.C regarding initial application of IFRS 16. |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes on Income [Abstract] | |||
Total comprehensive loss | $ (8,353) | $ (15,488) | $ (17,503) |
Statutory tax rate | 23.00% | 23.00% | 24.00% |
Theoretical tax benefit | $ (1,921) | $ (3,562) | $ (4,201) |
Increase in tax liability due to: | |||
Non-deductible expenses | 75 | 280 | 629 |
Losses and benefits for tax purposes for which no deferred taxes were recorded | 1,846 | 3,282 | 3,572 |
Taxes on income |
Taxes on Income (Details Textua
Taxes on Income (Details Textual) - USD ($) $ in Thousands | Dec. 22, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Taxes on Income [Abstract] | ||||
Percentage of corporate tax rates | 23.00% | 23.00% | 24.00% | |
Description of corporate tax rate reduced | Furthermore, on December 22, 2016 the Knesset plenum passed the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016, by which, inter alia, the corporate tax rate would be reduced from 25% to 23% in two steps. The first step was to a rate of 24% as of January 2017 and the second step was to a rate of 23% as of January 2018. | |||
Net operating loss for tax | $ 55,469 | |||
Accumulated losses before the merger | $ 880 | |||
Tax deductible temporary difference value | $ 1,687 | |||
Research and development deductible term period | 3 years |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Loss Per Share [Abstract] | |||||
Weighted average of number of Ordinary Shares used in the calculation of the basic and diluted loss per share (in thousand) | 175,634 | 91,799 | 56,540 | ||
Net loss used in calculation (thousands USD) | $ (8,353) | $ (15,488) | [1] | $ (17,503) | [1] |
[1] | See Note 2.C regarding initial application of IFRS 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Loss Per Share (Details 1)
Loss Per Share (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Per Share [Abstract] | |||
Balance as at January 1 | 96,572 | 61,984 | 49,616 |
Effect of share options exercised | 6,754 | 70 | 303 |
Effect of shares issued during the year | 72,308 | 29,745 | 6,621 |
Weighted average number of Ordinary Shares used to calculate basic and diluted earnings (loss) per share as at December 31 | 175,634 | 91,799 | 56,540 |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Per Share [Abstract] | |||
Diluted weighted average number of Ordinary Shares | 173,447,378 | 8,517,047 | 8,697,362 |
Share-Based Payments (Details)
Share-Based Payments (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Consultants and Employees | |
Statement Line Items [Line Items] | |
Number of share options granted | shares | 17,148,722 |
Fair value in the grant date (thousands USD) | $ | $ 6,749 |
Expected dividend yield | $ | |
Outstanding as of December 31, 2019 | shares | 26,056,905 |
Exercisable as of December 31, 2019 | shares | 2,691,568 |
Consultants and Employees | Bottom of Range [Member] | |
Statement Line Items [Line Items] | |
Range of share price (USD) | $ 0.11 |
Range of exercise price (USD) | $ 0 |
Range of expected share price volatility | 40.30% |
Range of estimated life (years) | 1 year 6 months |
Range of weighted average of risk-free interest rate | 0.56% |
Consultants and Employees | Top of range [member] | |
Statement Line Items [Line Items] | |
Range of share price (USD) | $ 1.80 |
Range of exercise price (USD) | $ 2.30 |
Range of expected share price volatility | 65.06% |
Range of estimated life (years) | 9 years 4 days |
Range of weighted average of risk-free interest rate | 1.98% |
Directors [Member] | |
Statement Line Items [Line Items] | |
Number of share options granted | shares | 6,090,000 |
Fair value in the grant date (thousands USD) | $ | $ 3,181 |
Expected dividend yield | $ | |
Outstanding as of December 31, 2019 | shares | 3,921,750 |
Exercisable as of December 31, 2019 | shares | 2,013,750 |
Directors [Member] | Bottom of Range [Member] | |
Statement Line Items [Line Items] | |
Range of share price (USD) | $ 0.11 |
Range of exercise price (USD) | $ 0.15 |
Range of expected share price volatility | 53.75% |
Range of estimated life (years) | 4 years |
Range of weighted average of risk-free interest rate | 0.88% |
Directors [Member] | Top of range [member] | |
Statement Line Items [Line Items] | |
Range of share price (USD) | $ 1.89 |
Range of exercise price (USD) | $ 1.84 |
Range of expected share price volatility | 61.27% |
Range of estimated life (years) | 5 years |
Range of weighted average of risk-free interest rate | 1.32% |
Yissum [Member] | |
Statement Line Items [Line Items] | |
Number of share options granted | shares | 559,097 |
Fair value in the grant date (thousands USD) | $ | $ 742 |
Range of share price (USD) | $ 1.84 |
Range of exercise price (USD) | $ 0.71 |
Range of expected share price volatility | 57.26% |
Range of estimated life (years) | 5 years |
Range of weighted average of risk-free interest rate | 1.15% |
Expected dividend yield | $ | |
Outstanding as of December 31, 2019 | shares | 223,697 |
Exercisable as of December 31, 2019 | shares | 223,697 |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employees and consultants [Member] | ||
Statement Line Items [Line Items] | ||
Outstanding at January 1 | 5,647,175 | 4,609,634 |
Granted during the year | 23,061,122 | 2,652,500 |
Exercised during the year | (1,167) | (590,292) |
Forfeited or expired during the year | (2,650,225) | (1,024,667) |
Outstanding at December 31 | 26,056,905 | 5,647,175 |
Exercisable as of December 31 | 2,691,568 | 2,476,800 |
Directors [Member] | ||
Statement Line Items [Line Items] | ||
Outstanding at January 1 | 2,070,000 | 3,145,001 |
Granted during the year | 2,545,000 | 300,000 |
Exercised during the year | ||
Forfeited or expired during the year | (693,250) | (1,375,001) |
Outstanding at December 31 | 3,921,750 | 2,070,000 |
Exercisable as of December 31 | 2,013,750 | 1,913,750 |
Share-Based Payments (Details T
Share-Based Payments (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Apr. 19, 2017 | Apr. 02, 2015 | Jul. 31, 2019 | Jan. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-Based Payments (Textual) | |||||||
Number of vested share options, description | During 2019, the Company granted to employees 2,723,500 restricted shares units ("RSUs"). The RSUs represents the right to receive Ordinary Shares at a future time and vest over a period of three years. | ||||||
Share based payment expenses | $ 445 | $ 403 | |||||
Property, plant and equipment [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Share-based payments including capitalized to intangible assets | 1,000 | 12 | |||||
Inventory [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Share-based payments including capitalized to intangible assets | $ 5,000 | $ 9 | |||||
Service provider [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 125,000 | ||||||
Share options exercisable into ordinary shares | 75,000 | ||||||
Number of vested share options, description | The share options are exercisable immediately and will expire 18 months from the grant date. | ||||||
Service provider [Member] | ADSs [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 15,000 | ||||||
Share options exercisable into ordinary shares | 15,000 | ||||||
Exercise price per share | $ 2 | ||||||
Employees and officer [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 1,817,334 | ||||||
Share options exercisable into ordinary shares | 1,817,334 | ||||||
Number of vested share options, description | The share options vest over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date. | ||||||
Employees and officer [Member] | Top of range [member] | |||||||
Share-Based Payments (Textual) | |||||||
Exercise price per share | $ 1.56 | ||||||
Employees and officer [Member] | Bottom of Range [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Exercise price per share | $ 0.46 | ||||||
Employees consultant and officers [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 6,029,000 | 2,652,500 | |||||
Share options exercisable into ordinary shares | 6,029,000 | 2,652,500 | |||||
Number of vested share options, description | The share options vest over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date. | The share options vest over a period of one to three years. The share options will be exercisable during the earlier of a period of four years from the vesting date. | |||||
Employees consultant and officers [Member] | Top of range [member] | |||||||
Share-Based Payments (Textual) | |||||||
Exercise price per share | $ 0.17 | $ 1.59 | |||||
Employees consultant and officers [Member] | Bottom of Range [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Exercise price per share | $ 0.14 | $ 0.28 | |||||
Directors [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 275,000 | ||||||
Share options exercisable into ordinary shares | 275,000 | ||||||
Number of vested share options, description | The share options will vest in 12 equal quarterly batches over a period of three years. | ||||||
Description of share options exercisable | Starting from April 20, 2017, and be exercisable during a period of five years from the grant date, in consideration for an exercise price of $ 1.77 for each share option. | ||||||
Officers [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 2,545,000 | 300,000 | |||||
Exercise price per share | $ 0.15 | $ 1.59 | |||||
Number of vested share options, description | One third of the share options will vest after one year from the grant date, and the remaining will vest in eight equal quarterly batches over a period of two years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date. | The share options will vest in 12 equal quarterly batches over a period of three years. The share options will be exercisable during the earlier of a period of four years from the vesting date, or 90 days from the end of employment date. 275,000 of the options include a cashless exercise mechanism. | |||||
Yissum [Member] | |||||||
Share-Based Payments (Textual) | |||||||
Number of granted non - tradable share options | 559,097 | ||||||
Share options exercisable into ordinary shares | 223,697 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Cash | $ 3,894 | $ 3,753 | [1] |
Restricted deposits | 408 | 368 | |
Trade receivables | 1,816 | 1,313 | |
Other receivables | 570 | 215 | |
Financial assets | 6,354 | 5,649 | |
Financial liabilities at amortized cost | 11,256 | 4,731 | |
Total net financial assets (liabilities) | (4,902) | 918 | |
NIS [Member] | |||
Statement Line Items [Line Items] | |||
Cash | 348 | 583 | |
Restricted deposits | (377) | 347 | |
Trade receivables | |||
Other receivables | 10 | 10 | |
Financial assets | 735 | 940 | |
Financial liabilities at amortized cost | 4,503 | 2,850 | |
Total net financial assets (liabilities) | (3,768) | (1,910) | |
Linked to the US dollar [Member] | |||
Statement Line Items [Line Items] | |||
Cash | 3,536 | 3,169 | |
Restricted deposits | 31 | 21 | |
Trade receivables | 1,586 | 1,079 | |
Other receivables | 226 | 205 | |
Financial assets | 5,379 | 4,474 | |
Financial liabilities at amortized cost | 6,740 | 1,880 | |
Total net financial assets (liabilities) | (1,361) | 2,594 | |
Linked to the EURO and Other [Member] | |||
Statement Line Items [Line Items] | |||
Cash | 10 | 1 | |
Restricted deposits | |||
Trade receivables | 230 | 234 | |
Other receivables | |||
Financial assets | 240 | 235 | |
Financial liabilities at amortized cost | 13 | 1 | |
Total net financial assets (liabilities) | $ 227 | $ 234 | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Financial Instruments (Details
Financial Instruments (Details 1) - NIS [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Increase at a rate of 5% [Member] | |
Statement Line Items [Line Items] | |
Changes in exchange rate | $ (189) |
Increase at a rate of 10% [Member] | |
Statement Line Items [Line Items] | |
Changes in exchange rate | (377) |
Decrease at a rate of 5% [Member] | |
Statement Line Items [Line Items] | |
Changes in exchange rate | 189 |
Decrease at a rate of 10% [Member] | |
Statement Line Items [Line Items] | |
Changes in exchange rate | $ 377 |
Financial Instruments (Detail_2
Financial Instruments (Details 2) $ in Thousands | Dec. 31, 2019USD ($) | |
Financial liabilities: | ||
Warrants | $ 2,157 | |
Convertible Notes | 1,223 | |
Convertible notes and Future Warrants derivatives | 318 | |
Total | 3,689 | |
Level 1 [Member] | ||
Financial liabilities: | ||
Warrants | ||
Convertible Notes | ||
Convertible notes and Future Warrants derivatives | ||
Total | ||
Level 2 [Member] | ||
Financial liabilities: | ||
Warrants | 793 | |
Convertible Notes | ||
Convertible notes and Future Warrants derivatives | ||
Total | 793 | |
Level 3 [Member] | ||
Financial liabilities: | ||
Warrants | 1,364 | [1] |
Convertible Notes | 1,223 | [1] |
Convertible notes and Future Warrants derivatives | 318 | [1] |
Total | $ 2,905 | [1] |
[1] | Presented net of the loss not initially recognized- as of December 31, 2019- $4,717,000. |
Financial Instruments (Detail_3
Financial Instruments (Details 3) - Level 2 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement Line Items [Line Items] | |
Volatility +10% | $ (17) |
Volatility -10% | 48 |
Share price + 10% | (361) |
Share price - 10% | $ 424 |
Financial Instruments (Detail_4
Financial Instruments (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Statement Line Items [Line Items] | ||
Balance as of January 1, 2019 | ||
Initial fair value | (4,276) | [1] |
Amount reclassified to equity due to note conversion | (1,991) | |
Amounts recorded as finance expenses (income) | 620 | |
Balance as at December 31, 2019 | 2,905 | [2] |
Financial derivatives [Member] | ||
Statement Line Items [Line Items] | ||
Balance as of January 1, 2019 | ||
Initial fair value | 805 | [1] |
Amount reclassified to equity due to note conversion | ||
Amounts recorded as finance expenses (income) | (487) | |
Balance as at December 31, 2019 | 318 | [2] |
Convertible notes [Member] | ||
Statement Line Items [Line Items] | ||
Balance as of January 1, 2019 | ||
Initial fair value | 1,569 | [1] |
Amount reclassified to equity due to note conversion | (1,991) | |
Amounts recorded as finance expenses (income) | 1,645 | |
Balance as at December 31, 2019 | 1,223 | [2] |
Warrants [Member] | ||
Statement Line Items [Line Items] | ||
Balance as of January 1, 2019 | ||
Initial fair value | 1,902 | [1] |
Amount reclassified to equity due to note conversion | ||
Amounts recorded as finance expenses (income) | (538) | |
Balance as at December 31, 2019 | $ 1,364 | [2] |
[1] | The initial fair value is presented net of the difference between the fair value and the consideration received, see note 11.B.4. | |
[2] | Presented net of the loss not initially recognized- as of December 31, 2019- $4,717,000. |
Financial Instruments (Detail_5
Financial Instruments (Details 5) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Trade payables | $ 850 | $ 1,414 | |
Other payables | 3,575 | 2,178 | |
Lease liabilities | 2,089 | ||
Liability in respect of government grants | 1,044 | 895 | [1] |
Financial liabilities | 7,558 | 4,731 | |
First year [Member] | |||
Statement Line Items [Line Items] | |||
Trade payables | 850 | 1,414 | |
Other payables | 3,547 | 2,150 | |
Lease liabilities | |||
Liability in respect of government grants | |||
Financial liabilities | 4,397 | 3,564 | |
More than a year [Member] | |||
Statement Line Items [Line Items] | |||
Trade payables | |||
Other payables | 28 | 28 | |
Lease liabilities | 2,089 | 244 | |
Liability in respect of government grants | 1,044 | 895 | |
Financial liabilities | $ 3,161 | $ 1,167 | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Financial Instruments (Detail_6
Financial Instruments (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Financial Instruments (Textual) | ||
Net of loss not recognised | $ 4,717 | |
Convertible notes [Member] | ||
Financial Instruments (Textual) | ||
Expected term of warrant | 1 year 6 months | [1] |
Expected volatility | 80.03% | [2] |
Risk-free rate | 1.61% | [3] |
Expected dividend yield | 0.00% | |
Weight average cost of capital | 20.00% | [4] |
Probability of meeting revenue target | 10.00% | |
Level 2 [Member] | ||
Financial Instruments (Textual) | ||
Expected term of warrant | 4 years 1 month 6 days | [1] |
Expected volatility | 62.51% | [2] |
Risk-free rate | 1.73% | [3] |
Expected dividend yield | 0.00% | |
Level 3 [Member] | ||
Financial Instruments (Textual) | ||
Expected term of warrant | 5 years | [1] |
Expected volatility | 61.12% | [2] |
Risk-free rate | 1.79% | [3] |
Expected dividend yield | 0.00% | |
[1] | Based on contractual terms. | |
[2] | Based on the historical volatility of the Company's shares and ADSs. | |
[3] | Based on traded zero-coupon U.S. treasury bonds with maturity equal to expected terms. | |
[4] | Evaluated with the assistance of an external independent valuator. |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Statement Line Items [Line Items] | ||
Balance as at January 1, 2019 | [1] | |
Depreciation | 842 | |
Additions | 1,624 | |
Balance as at December 31, 2019 | 2,673 | |
Leases of offices [Member] | ||
Statement Line Items [Line Items] | ||
Balance as at January 1, 2019 | 1,891 | |
Depreciation | 842 | |
Additions | 1,624 | |
Balance as at December 31, 2019 | 2,673 | |
Leases of offices [Member] | Buildings [member] | ||
Statement Line Items [Line Items] | ||
Balance as at January 1, 2019 | 1,687 | |
Depreciation | 706 | |
Additions | 1,525 | |
Balance as at December 31, 2019 | 2,506 | |
Leases of offices [Member] | Vehicles [member] | ||
Statement Line Items [Line Items] | ||
Balance as at January 1, 2019 | 204 | |
Depreciation | 136 | |
Additions | 99 | |
Balance as at December 31, 2019 | $ 167 | |
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Leases (Details 1)
Leases (Details 1) $ in Thousands | Dec. 31, 2019USD ($) |
Statement Line Items [Line Items] | |
Total | $ 3,144 |
Current maturities of lease liability | 1,055 |
Long-term lease liability | 2,089 |
Not later than one year [member] | |
Statement Line Items [Line Items] | |
Total | 1,055 |
One to five years [Member] | |
Statement Line Items [Line Items] | |
Total | $ 2,089 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Leases (Textual) | |||
Lease liability | $ 2,089 | ||
Lease liability and right-of-use asset | 2,673 | ||
Additions to the right-of-use assets | $ 1,624 | ||
Description of aforesaid lease agreements ends | The Group leases offices at Ness- Ziona from Africa-Israel for a period of five years in a few different contracts for three different floors used for offices, labs and manufacturing facilities, at the same building. The contractual period of the aforesaid lease agreements ends in August 2021, August 2024 and December 2023. The Group has an option to extend two of the lease agreements for an additional five years for an additional monthly fee (10% increase). The Group also leases offices in Hong- Kong. The contractual period of the aforesaid lease agreement ends in February 2021. | ||
Hong-Kong [Member} | |||
Leases (Textual) | |||
Lease liability | $ 2,959 | ||
Lease liability and right-of-use asset | 2,506 | ||
Vehicles [member] | |||
Leases (Textual) | |||
Lease liability | $ 185 | ||
[1] | See Note 2.C regarding initial application of International Financial Reporting Standard ("IFRS") 16, Leases. According to the transitional method that was chosen, comparative data were not restated. |
Transactions and Balances wit_3
Transactions and Balances with Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
Other payables | $ 3,575 | $ 2,178 |
Related parties [member] | ||
Statement Line Items [Line Items] | ||
Other payables | $ 130 | $ 74 |
Transactions and Balances wit_4
Transactions and Balances with Related Parties (Details 1) $ in Thousands | Dec. 31, 2019USD ($)RelatedPartiesDirectors | Dec. 31, 2018USD ($)RelatedPartiesDirectors | Dec. 31, 2017USD ($)RelatedPartiesDirectors |
Transactions and Balances With Related Parties [Abstract] | |||
Salaries and related expenses- related parties employed by the Group | $ 1,047 | $ 829 | $ 1,138 |
Number of related parties | RelatedParties | 4 | 4 | 5 |
Compensation for directors not employed by the Group | $ 218 | $ 311 | $ 494 |
Number of directors | Directors | 6 | 7 | 9 |
Transactions and Balances wit_5
Transactions and Balances with Related Parties (Details Textual) | Dec. 05, 2019¥ / sharesshares | Jan. 02, 2018$ / sharesshares | Apr. 19, 2017$ / sharesshares | Dec. 31, 2019 |
Transactions and Balances with Related Parties (Textual) | ||||
Number of vested share options, description | During 2019, the Company granted to employees 2,723,500 restricted shares units ("RSUs"). The RSUs represents the right to receive Ordinary Shares at a future time and vest over a period of three years. | |||
Avi Reichental [Member] | ||||
Transactions and Balances with Related Parties (Textual) | ||||
Grant of stock options | 25,000 | 275,000 | ||
Share options exercisable into ordinary shares | 25,000 | 275,000 | ||
Weighted average exercise price of share options exercisable | $ / shares | $ 1.77 | |||
Itzhak Shrem [Member] | ||||
Transactions and Balances with Related Parties (Textual) | ||||
Grant of stock options | 275,000 | |||
Share options exercisable into ordinary shares | 275,000 | |||
Weighted average exercise price of share options exercisable | $ / shares | $ 1.59 | |||
Yoav Stern [Member] | ||||
Transactions and Balances with Related Parties (Textual) | ||||
Grant of stock options | 14,308,622 | |||
Share options exercisable into ordinary shares | 14,308,622 | |||
Number of vested share options, description | The vesting start date of the share options is January 2, 2020. | |||
Yoav Stern [Member] | NIS [Member] | ||||
Transactions and Balances with Related Parties (Textual) | ||||
Weighted average exercise price of share options exercisable | ¥ / shares | ¥ 0.189 |
Events During the Reporting Per
Events During the Reporting Period (Details) - Yoav Stern [Member] | Dec. 05, 2019₪ / sharesshares |
Statement Line Items [Line Items] | |
Grant of stock options (non- tradable) | 14,308,622 |
Exercisable of Ordinary Share | 14,308,622 |
NIS [Member] | |
Statement Line Items [Line Items] | |
Exercise price per option | ₪ / shares | ₪ 0.189 |
Events After the Reporting Da_2
Events After the Reporting Date (Details) - Major ordinary share transactions [member] $ in Thousands | 1 Months Ended |
Feb. 29, 2020USD ($)shares | |
Events After the Reporting Date (Textual) | |
Ordinary shares issued | 116,650,000 |
Options to purchase of ordinary shares | 12,765,900 |
Gross proceeds from the offering | $ | $ 3,882,477 |
Warrants [Member] | |
Events After the Reporting Date (Textual) | |
Ordinary shares issued | 5,732,500 |
ADS [Member] | |
Events After the Reporting Date (Textual) | |
Ordinary shares issued | 2,333,000 |
Options to purchase of ordinary shares | 255,318 |
ADS [Member] | Warrants [Member] | |
Events After the Reporting Date (Textual) | |
Ordinary shares issued | 5,732,500 |