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Exhibit 99.2
 
MEDIWOUND LTD. AND ITS SUBSIDIARIES
 
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF JUNE 30, 2022
 
IN U.S. DOLLARS IN THOUSANDS
 
UNAUDITED
 
INDEX
 
 
Page
  
F-2
  
F-3
  
F-4 – F-5
  
F-6 – F-7
  
F-8 – F-11
 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 
Condensed Interim Consolidated Statements of Financial Position

U.S. dollars in thousands
 
   
June 30,
   
December 31,
 
   
2022
   
2021
   
2021
 
   
Unaudited
   
Audited
 
                   
Cash and cash equivalents
   
7,729
     
16,993
     
11,046
 
Restricted deposits
   
168
     
182
     
-
 
Short-term bank deposits
   
2,509
     
-
     
-
 
Trade receivables
   
3,759
     
2,065
     
1,779
 
Inventories
   
1,991
     
1,397
     
1,200
 
Other receivables
   
653
     
883
     
927
 
Total current assets
   
16,809
     
21,520
     
14,952
 
                         
Other receivables
   
230
     
-
     
469
 
Property, plant and equipment, net
   
2,439
     
2,565
     
2,478
 
Right of-use assets, net
   
1,364
     
1,789
     
1,548
 
Intangible assets, net
   
264
     
330
     
297
 
Total non-current assets
   
4,297
     
4,684
     
4,792
 
                         
Total assets
   
21,106
     
26,204
     
19,744
 
                         
Current maturities of non-current liabilities
   
2,479
     
1,681
     
2,408
 
Trade payables and accrued expenses
   
4,877
     
4,060
     
4,693
 
Other payables
   
3,060
     
3,920
     
3,620
 
Total current liabilities
   
10,416
     
9,661
     
10,721
 
                         
Deferred revenues
   
61
     
405
     
119
 
Liabilities in respect of IIA grants
   
8,131
     
7,671
     
7,885
 
Liabilities in respect of purchase of shares
   
3,361
     
4,465
     
3,922
 
Lease liabilities
   
1,053
     
1,604
     
1,391
 
Severance pay liability, net
   
319
     
280
     
288
 
Total non-current liabilities
   
12,925
     
14,425
     
13,605
 
                         
Total liabilities
   
23,341
     
24,086
     
24,326
 
                         
Shareholders' equity:
                       
Ordinary shares of NIS 0.01 par value:
                       
Authorized: 50,000,000 shares as of June 30, 2022, December 31, 2021, and June 30, 2021; Issued and Outstanding: 33,143,414 as of June 30, 2022, 27,272,818 as of December 31, 2021 and 27,245,429 as of June 30, 2021
   
93
     
75
     
75
 
Share premium
   
154,119
     
143,077
     
143,869
 
Foreign currency translation adjustments
   
3
     
(32
)
   
(19
)
Accumulated deficit
   
(156,450
)
   
(141,002
)
   
(148,507
)
Total equity (deficit)
   
(2,235
)
   
2,118
     
(4,582
)
                         
Total liabilities and equity
   
21,106
     
26,204
     
19,744
 
 
The accompanying notes are an integral part of the interim financial statements.

 

F - 2

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss

U.S. dollars in thousands (except loss per share data)
 
   
Six months ended
June 30,
   
Three months ended
June 30,
   
Year ended
December 31,
 
   
2022
   
2021
   
2022
   
2021
   
2021
 
   
Unaudited
   
Audited
 
Revenues from sale of products
   
2,771
     
5,045
     
1,669
     
2,527
     
9,613
 
Revenues from development services
   
5,866
     
5,963
     
2,777
     
3,023
     
12,372
 
Revenues from license agreements
   
438
     
896
     
222
     
507
     
1,778
 
Total revenues
   
9,075
     
11,904
     
4,668
     
6,057
     
23,763
 
                                         
Cost of revenues from sale of products
   
1,539
     
2,451
     
1,148
     
1,311
     
4,983
 
Cost of revenues from development services
   
4,932
     
4,638
     
2,391
     
2,365
     
9,907
 
Cost of revenues from license agreements
   
31
     
38
     
16
     
20
     
102
 
Total cost of revenues
   
6,502
     
7,127
     
3,555
     
3,696
     
14,992
 
                                         
Gross profit
   
2,573
     
4,777
     
1,113
     
2,361
     
8,771
 
                                         
Research and development
   
4,599
     
4,898
     
2,191
     
2,656
     
10,256
 
Selling and marketing
   
1,854
     
1,676
     
935
     
854
     
3,388
 
General and administrative
   
2,769
     
3,019
     
1,352
     
1,746
     
6,348
 
Other expenses
   
309
     
-
     
309
     
-
     
-
 
Total operating expenses
   
9,531
     
9,593
     
4,787
     
5,256
     
19,992
 
                                         
Operating loss
   
(6,958
)
   
(4,816
)
   
(3,674
)
   
(2,895
)
   
(11,221
)
                                         
Financial income
   
11
     
11
     
11
     
118
     
11
 
Financial expenses
   
(988
)
   
(1,222
)
   
(687
)
   
(399
)
   
(2,314
)
Financing expenses, net
   
(977
)
   
(1,211
)
   
(676
)
   
(281
)
   
(2,303
)
                                         
Loss before taxes on income
   
(7,935
)
   
(6,027
)
   
(4,350
)
   
(3,176
)
   
(13,524
)
                                         
Taxes on income
   
(8
)
   
(19
)
   
(4
)
   
(19
)
   
(27
)
Net loss
   
(7,943
)
   
(6,046
)
   
(4,354
)
   
(3,195
)
   
(13,551
)
                                         
Other comprehensive income (loss):
                                       
                                         
Foreign currency translation adjustments
   
22
     
8
     
17
     
(3
)    
21
 
                                         
Total comprehensive loss
   
(7,921
)
   
(6,038
)
   
(4,337
)
   
(3,198
)
   
(13,530
)
                                         
Loss per share data:
                                       
Basic and diluted net loss per share - USD
   
(0.26
)
   
(0.22
)
   
(0.13
)
   
(0.12
)
   
(0.50
)
Number of shares used in calculating basic and diluted net loss per share
   
31,079
     
27,241
     
33,140
     
27,241
     
27,244
 
 
The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 3

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Deficit)    

U.S. dollars in thousands
 
   
Share capital
   
Share premium
   
Foreign currency
translation
reserve
   
Accumulated
deficit
   
Total
equity (deficit)
 
                               
Balance as of April 1, 2022
   
93
     
153,962
     
(14
)
   
(152,096
)
   
1,945
 
                                         
Loss for the period
   
-
     
-
     
-
     
(4,354
)
   
(4,354
)
Other comprehensive income
   
-
     
-
     
17
     
-
     
17
 
Total comprehensive income (loss)
   
-
     
-
     
17
     
(4,354
)
   
(4,337
)
Issuance expenses, see Note 3
   
-
     
(95
)
   
-
     
-
     
(95
)
Exercise of options
   
(*
)
   
-
     
-
     
-
     
(*
)
                                         
Share-based compensation
   
-
     
252
     
-
     
-
     
252
 
                                         
Balance as of June 30, 2022 (unaudited)
   
93
     
154,119
     
3
     
(156,450
)
   
(2,235
)
 
Balance as of April 1, 2021
   
75
     
142,577
     
(29
)
   
(137,807
)
   
4,816
 
                                         
Loss for the period
   
-
     
-
     
-
     
(3,195
)
   
(3,195
)
Other comprehensive loss
   
-
     
-
     
(3
)
   
-
     
(3
)
Total comprehensive loss
   
-
     
-
     
(3
)
   
(3,195
)
   
(3,198
)
Exercise of options
   
(*
)
   
-
     
-
     
-
     
(*
)
                                         
Share-based compensation
   
-
     
500
     
-
     
-
     
500
 
                                         
Balance as of June 30, 2021 (unaudited)
   
75
     
143,077
     
(32
)
   
(141,002
)
   
2,118
 
 
(*)          Represents less than $ 1.
 
The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 4

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Deficit)
U.S. dollars in thousands
 
   
Share capital
   
Share premium
   
Foreign currency
translation
reserve
   
Accumulated
deficit
   
Total
equity (deficit)
 
                               
Balance as of December 31, 2021
   
75
     
143,869
     
(19
)
   
(148,507
)
   
(4,582
)
Loss for the period
   
-
     
-
     
-
     
(7,943
)
   
(7,943
)
Other comprehensive income
   
-
     
-
     
22
     
-
     
22
 
Total comprehensive income (loss)
   
-
     
-
     
22
     
(7,943
)
   
(7,921
)
Issuance of ordinary shares, net of issuance expenses(see note 3)
   
18
     
9,653
     
-
     
-
     
9,671
 
Exercise of options
   
(*
)
   
-
     
-
     
-
     
(*
)
Share-based compensation
   
-
     
597
     
-
     
-
     
597
 
                                         
Balance as of June 30, 2022 (unaudited)
   
93
     
154,119
     
3
     
(156,450
)
   
(2,235
)
                                         
Balance as of December 31, 2020
   
75
     
142,193
     
(40
)
   
(134,956
)
   
7,272
 
Loss for the period
   
-
     
-
     
-
     
(6,046
)
   
(6,046
)
Other comprehensive income
   
-
     
-
     
8
     
-
     
8
 
Total comprehensive income (loss)
   
-
     
-
     
8
     
(6,046
)
   
(6,038
)
Exercise of options
   
(*
)
   
-
     
-
     
-
     
(*
)
Share-based compensation
   
-
     
884
     
-
     
-
     
884
 
                                         
Balance as of June 30, 2021 (unaudited)
   
75
     
143,077
     
(32
)
   
(141,002
)
   
2,118
 
                                         
Balance as of December 31, 2020
   
75
     
142,193
     
(40
)
   
(134,956
)
   
7,272
 
Loss for the period
   
-
     
-
     
-
     
(13,551
)
   
(13,551
)
Other comprehensive income
   
-
     
-
     
21
     
-
     
21
 
Total comprehensive income (loss)
   
-
     
-
     
21
     
(13,551
)
   
(13,530
)
Exercise of options
   
(*
)
   
3
     
-
     
-
     
3
 
Share-based compensation
   
-
     
1,673
     
-
     
-
     
1,673
 
                                         
Balance as of December 31, 2021
   
75
     
143,869
     
(19
)
   
(148,507
)
   
(4,582
)
 
(*)          Represents less than $ 1.
 
The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 5

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Condensed Interim Consolidated Statements of Cash Flows
U.S. dollars in thousands
 
   
Six months ended
June 30,
   
Three months ended
June 30,
   
Year ended
December 31,
 
   
2022
   
2021
   
2022
   
2021
   
2021
 
   
Unaudited
   
Audited
 
Cash flows from operating activities:
                             
Net loss
   
(7,943
)
   
(6,046
)
   
(4,354
)
   
(3,195
)
   
(13,551
)
                                         
Adjustments to reconcile net loss to net cash used in continuing operating activities:
                                       
                                         
Adjustments to profit and loss items:
                                       
Depreciation and amortization
   
650
     
627
     
329
     
319
     
1,238
 
Share-based compensation
   
597
     
884
     
252
     
500
     
1,673
 
Revaluation of liabilities in respect of IIA grants
   
482
     
497
     
248
     
222
     
919
 
Revaluation of liabilities in respect of the purchase of shares
   
272
     
299
     
135
     
147
     
590
 
Revaluation of lease liabilities
   
(152
)
   
35
     
(138
)
   
79
     
188
 
Increase (decrease) in severance pay liability, net
   
55
     
(5
)
   
35
     
5
     
13
 
Net financing income
   
(11
)
   
(11
)
   
(11
)
   
-
     
(11
)
Un-realized foreign currency (gain) loss
   
528
     
(226
)
   
283
     
(482
)
   
(137
)
     
2,421
     
2,100
     
1,133
     
790
     
4,473
 
Changes in asset and liability items:
                                       
(Increase) decrease in trade receivables
   
(2,024
)
   
680
     
(1,445
)
   
3,087
     
929
 
(Increase) decrease in inventories
   
(747
)
   
17
     
(37
)
   
62
     
257
 
Decrease (increase) in other receivables
   
330
     
(432
)
   
205
     
(469
)
   
(763
)
Increase (decrease) in trade payables and accrued expenses
   
11
     
1,075
     
(272
)
   
803
     
1,723
 
Decrease in other payables and deferred revenues
   
(1,367
)
   
(1,257
)
   
(484
)
   
(2,063
)
   
(1,984
)
     
(3,797
)
   
83
     
(2,033
)
   
1,420
     
162
 
                                         
Net cash used in operating activities
   
(9,319
)
   
(3,863
)
   
(5,254
)
   
(985
)
   
(8,916
)
 
The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 6

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Condensed Interim Consolidated Statements of Cash Flows
U.S. dollars in thousands
 
   
Six months ended
June 30,
   
Three months ended
June 30,
   
Year ended
December 31,
 
   
2022
   
2021
   
2022
   
2021
   
2021
 
   
Unaudited
   
Audited
 
                               
Cash Flows from Investing Activities:
                             
                               
Purchase of property and equipment
   
(298
)
   
(244
)
   
(138
)
   
(26
)
   
(489
)
Interest received
   
-
     
35
     
-
     
-
     
35
 
(Increase) decrease in short term bank deposits, net
   
(2,499
)
   
4,002
     
(2,499
)
   
(4
)
   
4,002
 
                                         
Net cash provided by (used in) investing activities
   
(2,797
)
   
3,793
     
(2,637
)
   
(30
)
   
3,548
 
                                         
Cash Flows from Financing Activities:
                                       
                                         
Repayment of leases liabilities
   
(350
)
   
(337
)
   
(172
)
   
(171
)
   
(693
)
Proceeds from issuance of shares, net
   
9,861
     
-
     
(556
)
   
-
     
3
 
Repayment of IIA grant
   
(162
)
   
(180
)
   
-
     
-
     
(360
)
                                         
Net cash provided by (used in) financing activities
   
9,349
     
(517
)
   
(728
)
   
(171
)
   
(1,050
)
                                         
Exchange rate differences on cash and cash equivalent balances
   
(550
)
   
204
     
(303
)
   
495
     
88
 
                                         
Decrease in cash and cash equivalents
   
(3,317
)
   
(383
)
   
(8,922
)
   
(691
)
   
(6,330
)
                                         
Balance of cash and cash equivalents at the beginning of the period
   
11,046
     
17,376
     
16,651
     
17,684
     
17,376
 
                                         
Balance of cash and cash equivalents at the end of the period
   
7,729
     
16,993
     
7,729
     
16,993
     
11,046
 
                                         
Supplement disclosure of Non-cash transactions:
                                       
ROU asset, net recognized with corresponding lease liability
   
43
     
155
     
43
     
155
     
155
 
Issuance of shares due to RSUs exercised
   
191
     
43
     
14
     
-
     
147
 

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 7

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Condensed Interim Consolidated Financial Statements 

U.S. dollars in thousands
 
NOTE 1:
GENERAL
 
  a.
Description of the Company and its operations:
 
MediWound Ltd. was incorporated in Israel. The Company which is located in Yavne, Israel (The "Company" or "MediWound"), is biopharmaceutical company that develops, manufactures and commercializes novel, cost effective, bio-therapeutic solutions for tissue repair and regeneration. The Company’s strategy leverages its breakthrough enzymatic technology platform into diversified portfolio of biotherapeutics across multiple indications to pioneer solutions for unmet medical needs. The Company’s current portfolio is focused on next-generation bio-active therapies for burn and wound care and tissue repair.
 
The Company's first innovative biopharmaceutical product, NexoBrid, has received marketing authorization from the European Medicines Agency ("EMA") as well as the Israeli, Argentinean, South-Korean, Russian, Taiwanese, Ukrainian, United Arab Emirates, Chilean, Peruvian and Switzerland Ministries of Health, for removal of dead or damaged tissue, known as eschar, in adults with deep partial and full thickness thermal burns.
 
The Company sells NexoBrid in the European Union, United Kingdom, Norway, Switzerland and Israel through its commercial organizations while establishing additional local distribution channels to extend its outreach in the European Union. In other international markets the Company sells NexoBrid through local distributors which are also responsible for obtaining the local marketing authorization within the relevant territory. In the United States, the Company entered into exclusive license and supply agreements with Vericel Corporation (“Vericel”) to commercialize NexoBrid in North America upon FDA's approval.
 
The Company’s second investigational innovative product, EscharEx, is a topical biological drug being developed for debridement of chronic and other hard-to-heal wounds. In May 2022, the company announced positive results from its U.S. phase 2 study. The study met its primary endpoint, its key secondary endpoints with high degree of statistical significance, as well as its wound closure safety measurements. The Company anticipates meeting with the U.S. Food and Drug Administration (the “FDA”) in the second half of 2022, for an End-of-Phase 2 meeting to discuss study results and a potential Phase 3 pivotal plan for EscharEx.
 
The third clinical-stage innovative product candidate, MW005, is a topical biological drug candidate for the treatment of non-melanoma skin cancers. A U.S. phase 1/2 study of MW005 for the treatment of low-risk basal cell carcinoma (BCC) was initiated in July 2021, and in July 2022, a positive initial data was announced. The Company anticipates announcing the final data in the second half of 2022.
 
  b.
The Company's securities are listed for trading on NASDAQ since March 2014. In March, 2022, the Company completed an additional public offering. A total of 5,208,333 new ordinary shares were issued at a public offering price of $1.92 per share. The gross proceeds before deducting underwriting discounts and commissions and offering expenses, were approximately $10 million (see also Note 3).
 
F - 8

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands

 

NOTE 1:
GENERAL (Cont.)
 
  c.
The Company has three wholly owned subsidiaries: MediWound Germany GmbH, acting as Europe (“EU”) marketing authorization holder and EU sales and marketing arm, and MediWound UK Limited and MediWound US, Inc. which are currently inactive companies.
 
  d.
The Company awarded two contracts with the U.S. Biomedical Advanced Research and Development Authority ("BARDA") valued at up to $168,000 for the advancement of the development, manufacturing and emergency readiness for NexoBrid deployment as well as the procurement of NexoBrid as a medical countermeasure as part of BARDA preparedness for mass casualty events. In February 2022 BARDA has expanded its awarded contract providing supplemental funding of approximately $9,000 to support the NexoBrid BLA resubmission to the FDA and the continuous expanded access program.
 
  e.
On February 17, 2022 the Company engaged with the U.S. Department of Defense (“DoD”), through the Medical Technology Enterprise Consortium (MTEC), for a $1,800 contract for the development of NexoBrid as a non-surgical solution for field-care burn treatment for the U.S. Army.
 
  f.
On June 29, 2021, the Company received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) regarding its Biologics License Application (BLA) seeking approval of NexoBrid for eschar removal (debridement) in adults with deep partial-thickness and/or full-thickness thermal burns.
 
The FDA communicated that it had completed its review of the BLA, as amended, and has determined that the application cannot be approved in its present form. The FDA identified issues related to the Chemistry, Manufacturing and Controls (“CMC”) section of the BLA and requested additional CMC information. The FDA acknowledged receipt of several CMC amendments, submitted by the Company in response to the CMC information requests, which were not reviewed yet by the FDA.
 
The FDA also stated that an inspection of NexoBrid's manufacturing facilities in Israel and Taiwan, are required before the FDA can approve the BLA, but it was unable to conduct the required inspections during the current review cycle due to COVID-19 related travel restrictions. The FDA stated that it will continue to monitor the public health situation as well as travel restrictions and is actively working to define an approach for scheduling outstanding inspections. In addition, the CRL cited certain observations identified during good clinical practice (GCP) inspections related to the U.S. Phase 3 study (DETECT), and requested the Company to provide its perspective on the potential impact, if any, of these observations on the efficacy findings in the study. The FDA also requested to provide a safety update as part of its BLA resubmission, although there were no safety issues raised in the CRL.
 
Following a productive Type A meeting with the FDA, the Company gained clarity on a path forward for resubmission of its NexoBrid BLA. In addition, the FDA’s facility inspection schedule which has been affected by COVID-19-related travel restrictions, is required before the FDA can approve the NexoBrid BLA.
 
F - 9

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands

 

NOTE 1:
GENERAL (Cont.)
 
   

On July 1, 2022, the Company has re-submitted the Biologics License Application (BLA) to the U.S. Food and Drugs Administration (FDA) and received an acknowledgement letter from the FDA assigning PDUFA target date to January 1, 2023.

     
  g.
Since incorporation through June 30, 2022, the Company has incurred losses mainly attributed to its development efforts and has total accumulated deficit of $156,450 thousand, the Company’s total shareholders’ equity amounted to deficit of $2,235. During the six-month period ended June 30, 2022, the Company incurred losses of $7,943 and its cash used in operating activities was $9,319. The Company expects to continue to incur significant research and development and other costs related to its ongoing operations, and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable.
 
Management’s plans include evaluating alternative financing arrangements and/or reducing expenditures as necessary to meet the Company’s future cash requirements. However, there is no assurance that, if required, the Company will be able to raise additional capital or reduce expenditures to provide the required liquidity. Management expects that the Company's cash and cash equivalents as of June 30, 2022 will allow the Company to fund its operating plan through at least the next 12 months from the financial statement issuance date.
 
  h.
The Company addresses the challenges associated with the ongoing COVID-19 pandemic, while prioritizing the health and safety of its workforce and maintaining operational efficiency and flexibility.

 

NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES
   
 

The following accounting policies have been applied consistently in the financial statements for all periods presented unless otherwise stated.

 
 
a.
Basis of presentation of financial statements:
     
   

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

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

The interim condensed consolidated financial statements for the six and three months ended June 30, 2022 have been prepared in accordance with IAS 34 "Interim Financial Reporting".

     
   

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements as of December 31, 2021 that were included in the Annual Report on Form 20-F filed on March 17, 2022.

     
   

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2021 that were included in the Annual Report on Form 20-F filed on March 17, 2022.

 
F - 10

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands

 

NOTE 3:

EQUITY

     
  a.
On March 7, 2022, the Company completed an additional public offering. A total of 5,208,333 new ordinary shares were issued in consideration to offering price of $1.92 per share. The net proceeds were $8,641, after deducting commissions and other offering expenses. In addition, on March 22, 2022 the underwriters exercised their options to purchase an additional 623,082 ordinary shares at the public offering price, less underwriting discounts and commissions at an additional net proceeds of $1,030.
 
As part of the above- mentioned public offering, certain entities affiliated with CBI purchased 1,458,333 of ordinary shares at the public offering price.
 
  b.
Over the second quarter of 2022, the Company’s Board of Directors approved the grant of 2,052,922 options to purchase the Company’s ordinary shares, for an exercise price of $2.06 per share as well as 275,000 restricted share units (“RSU’s”) to its CEO, officers and employees. The fair value of the options as of the grant date, was estimated at $2.4 million, $0.5 million respectively.

The above-mentioned grant includes the grant of 1,062,500 options to purchase the Company’s ordinary shares and 275,000 restricted share units (“RSU’s”) to the directors and the CEO of the Company which required to be approved by the Company’s General meeting as well. The fair value of the options and RSU’s, as of the approval date, was estimated at approximately $1.2 million, $0.5 million, respectively.
 
NOTE 4:       OTHER EXPENSES
 
The other one-time expenses amounted $309 are attributed to the termination expenses of the previous CEO which were approved by the Shareholders General meeting.
 
NOTE 5:       SUBSEQUENT EVENTS
 
On July 19, 2022, the Company’s Shareholders General meeting approved the abovementioned grants to the directors and the CEO, the compensation terms of Mr. Ofer Gonen as the Company’s new Chief Executive Officer, which terms will be effective as of July 1, 2022 and the termination terms for the previous CEO.

 

F - 11