0001631487 2007-04-01 2007-04-30 0001631487 2015-12-31 0001631487 ifrs-full:RetainedEarningsMember 2015-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2015-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:GrossCarryingAmountMember 2015-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2015-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2015-12-31 0001631487 ifrs-full:IssuedCapitalMember 2015-12-31 0001631487 2016-02-02 0001631487 clgn:OrdinaryShareMember 2016-02-02 0001631487 2016-01-25 2016-02-02 0001631487 clgn:SeriesIWarrantsMember 2016-01-25 2016-02-02 0001631487 clgn:SeriesJWarrantsMember 2016-01-25 2016-02-02 0001631487 clgn:SeriesIWarrantsMember clgn:IsraeliBrokerMember 2016-01-25 2016-02-02 0001631487 2016-06-09 0001631487 clgn:OrdinaryShareMember 2016-06-09 0001631487 2016-05-29 2016-06-09 0001631487 clgn:SeriesKWarrantsMember 2016-05-29 2016-06-09 0001631487 clgn:SeriesKWarrantsMember clgn:IsraeliBrokerMember 2016-05-29 2016-06-09 0001631487 2016-07-28 0001631487 2016-07-01 2016-07-28 0001631487 2016-08-01 2016-08-15 0001631487 2016-10-30 2016-11-17 0001631487 2016-01-01 2016-12-31 0001631487 ifrs-full:RetainedEarningsMember 2016-01-01 2016-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-01-01 2016-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-01-01 2016-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-01-01 2016-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2016-01-01 2016-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2016-01-01 2016-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2016-01-01 2016-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-01-01 2016-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2016-01-01 2016-12-31 0001631487 ifrs-full:IssuedCapitalMember 2016-01-01 2016-12-31 0001631487 ifrs-full:BottomOfRangeMember 2016-01-01 2016-12-31 0001631487 ifrs-full:TopOfRangeMember 2016-01-01 2016-12-31 0001631487 clgn:PayrollAndRelatedExpensesMember 2016-01-01 2016-12-31 0001631487 clgn:ShareBasedPaymentsMember 2016-01-01 2016-12-31 0001631487 clgn:SubContractorsAndConsultantsMember 2016-01-01 2016-12-31 0001631487 clgn:ConsumablesAndMaterialsMember 2016-01-01 2016-12-31 0001631487 clgn:DepreciationAndAmortizationMember 2016-01-01 2016-12-31 0001631487 clgn:RentAndMaintenanceMember 2016-01-01 2016-12-31 0001631487 clgn:OtherMember 2016-01-01 2016-12-31 0001631487 clgn:RentAndOfficeMaintenanceMember 2016-01-01 2016-12-31 0001631487 clgn:DirectorsSalaryAndInsuranceMember 2016-01-01 2016-12-31 0001631487 clgn:ProfessionalServicesMember 2016-01-01 2016-12-31 0001631487 2016-12-31 0001631487 ifrs-full:RetainedEarningsMember 2016-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2016-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:GrossCarryingAmountMember 2016-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2016-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2016-12-31 0001631487 ifrs-full:IssuedCapitalMember 2016-12-31 0001631487 ifrs-full:ComputerEquipmentMember 2016-12-31 0001631487 ifrs-full:OfficeEquipmentMember 2016-12-31 0001631487 clgn:LaboratoryEquipmentMember 2016-12-31 0001631487 clgn:GreenhouseEquipmentMember 2016-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember 2016-12-31 0001631487 ifrs-full:ComputerSoftwareMember 2016-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember 2016-12-31 0001631487 2017-02-12 0001631487 clgn:SeriesLWarrantsMember 2017-02-12 0001631487 2017-01-28 2017-02-12 0001631487 clgn:SeriesLWarrantsMember 2017-01-28 2017-02-12 0001631487 clgn:SeriesLWarrantsMember clgn:IsraeliBrokerMember 2017-01-28 2017-02-12 0001631487 clgn:SeriesLWarrantsMember 2017-04-01 2017-06-30 0001631487 clgn:SeriesLWarrantsMember 2017-06-30 0001631487 clgn:OneDirectorMember 2017-08-22 0001631487 clgn:OneDirectorMember 2017-08-18 2017-08-22 0001631487 2017-09-06 0001631487 ifrs-full:TaxContingentLiabilityMember 2017-08-27 2017-09-06 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:TrancheOneMember 2017-08-27 2017-09-06 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:TrancheTwoMember 2017-08-27 2017-09-06 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:TrancheThreeMember 2017-08-27 2017-09-06 0001631487 clgn:AlphaPurchaseAgreementOneMember 2017-10-26 0001631487 clgn:AlphaPurchaseAgreementOneMember 2017-10-22 2017-10-26 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesOneMember 2017-11-08 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesTwoMember 2017-11-08 0001631487 clgn:MeitavPurchaseAgreementMember 2017-11-08 0001631487 clgn:MeitavPurchaseAgreementMember 2017-11-05 2017-11-08 0001631487 clgn:SagyPurchaseAgreementMember 2017-11-09 0001631487 clgn:SagyPurchaseAgreementMember clgn:TranchesOneMember 2017-11-09 0001631487 clgn:SagyPurchaseAgreementMember 2017-11-05 2017-11-09 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesOneMember 2017-12-26 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesTwoMember 2017-12-26 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesOneMember 2017-12-21 2017-12-26 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesTwoMember 2017-12-21 2017-12-26 0001631487 clgn:SagyPurchaseAgreementMember clgn:TranchesOneMember 2017-12-21 2017-12-26 0001631487 2017-01-01 2017-12-31 0001631487 ifrs-full:RetainedEarningsMember 2017-01-01 2017-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-01-01 2017-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-01-01 2017-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-01-01 2017-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2017-01-01 2017-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2017-01-01 2017-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2017-01-01 2017-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-01-01 2017-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2017-01-01 2017-12-31 0001631487 ifrs-full:IssuedCapitalMember 2017-01-01 2017-12-31 0001631487 ifrs-full:BottomOfRangeMember 2017-01-01 2017-12-31 0001631487 ifrs-full:TopOfRangeMember 2017-01-01 2017-12-31 0001631487 clgn:PayrollAndRelatedExpensesMember 2017-01-01 2017-12-31 0001631487 clgn:ShareBasedPaymentsMember 2017-01-01 2017-12-31 0001631487 clgn:SubContractorsAndConsultantsMember 2017-01-01 2017-12-31 0001631487 clgn:ConsumablesAndMaterialsMember 2017-01-01 2017-12-31 0001631487 clgn:DepreciationAndAmortizationMember 2017-01-01 2017-12-31 0001631487 clgn:RentAndMaintenanceMember 2017-01-01 2017-12-31 0001631487 clgn:OtherMember 2017-01-01 2017-12-31 0001631487 clgn:RentAndOfficeMaintenanceMember 2017-01-01 2017-12-31 0001631487 clgn:DirectorsSalaryAndInsuranceMember 2017-01-01 2017-12-31 0001631487 clgn:ProfessionalServicesMember 2017-01-01 2017-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember 2017-01-01 2017-12-31 0001631487 clgn:EmployeesAndOfficersMember 2017-01-01 2017-12-31 0001631487 clgn:AlphaMember 2017-01-01 2017-12-31 0001631487 clgn:MeitavDashAndAmiSagiMember 2017-01-01 2017-12-31 0001631487 clgn:FirstClosingDebentureMember 2017-01-01 2017-12-31 0001631487 clgn:SecondClosingDebentureMember 2017-01-01 2017-12-31 0001631487 clgn:BAndSModelMember 2017-01-01 2017-12-31 0001631487 clgn:BoardOfDirectorMember 2017-01-01 2017-12-31 0001631487 clgn:UnitedStatesAndCanadaMember 2017-01-01 2017-12-31 0001631487 clgn:EuropeCountryMember 2017-01-01 2017-12-31 0001631487 clgn:CustomerOneMember 2017-01-01 2017-12-31 0001631487 clgn:CustomerTwoMember 2017-01-01 2017-12-31 0001631487 clgn:CustomerThreeMember 2017-01-01 2017-12-31 0001631487 clgn:CustomerFourMember 2017-01-01 2017-12-31 0001631487 2017-12-31 0001631487 ifrs-full:RetainedEarningsMember 2017-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2017-12-31 0001631487 ifrs-full:ComputerSoftwareMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2017-12-31 0001631487 ifrs-full:IssuedCapitalMember 2017-12-31 0001631487 ifrs-full:ComputerEquipmentMember 2017-12-31 0001631487 ifrs-full:OfficeEquipmentMember 2017-12-31 0001631487 clgn:LaboratoryEquipmentMember 2017-12-31 0001631487 clgn:GreenhouseEquipmentMember 2017-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember 2017-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember 2017-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember 2017-12-31 0001631487 clgn:FirstClosingDebentureMember 2017-12-31 0001631487 clgn:SecondClosingDebentureMember 2017-12-31 0001631487 ifrs-full:SubsidiariesMember 2017-12-31 0001631487 clgn:EmployeesAndInstitutionsForEmployeesMember 2017-12-31 0001631487 clgn:ProvisionsForVacationAndOthersMember 2017-12-31 0001631487 clgn:IsraelCurrencyMember 2017-12-31 0001631487 clgn:ForeignCurrencyMember 2017-12-31 0001631487 ifrs-full:ParentMember 2017-12-31 0001631487 clgn:NisMember 2017-12-31 0001631487 clgn:ForeignCurrencyMember 2017-12-31 0001631487 clgn:OtherPayablesMember 2017-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:GrossCarryingAmountMember 2017-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2017-12-31 0001631487 clgn:ShareholderMember 2018-01-14 0001631487 clgn:ShareholderMember 2018-01-03 2018-01-14 0001631487 clgn:SecurityPurchaseAgreementMember 2018-01-18 0001631487 clgn:SecurityPurchaseAgreementMember 2018-01-02 2018-01-18 0001631487 clgn:OrdinaryShareMember 2018-03-01 0001631487 clgn:OrdinaryShareMember 2018-02-26 2018-03-01 0001631487 clgn:BoardOfDirectorMember 2018-03-20 0001631487 clgn:BoardOfDirectorMember 2018-03-02 2018-03-20 0001631487 clgn:SeriesIWarrantsMember clgn:IsraeliBrokerMember 2018-04-01 2018-04-16 0001631487 clgn:SeriesKWarrantsMember clgn:IsraeliBrokerMember 2018-04-01 2018-04-16 0001631487 clgn:BoardOfDirectorMember 2018-04-29 2018-05-01 0001631487 clgn:OrdinaryShareMember 2018-07-11 0001631487 clgn:OrdinaryShareMember 2018-07-01 2018-07-11 0001631487 clgn:SecurityPurchaseAgreementMember 2018-07-01 2018-07-26 0001631487 clgn:BoardOfDirectorMember 2018-08-29 2018-09-10 0001631487 2018-10-01 2018-10-19 0001631487 2018-11-01 2018-11-15 0001631487 2018-01-01 2018-12-31 0001631487 ifrs-full:RetainedEarningsMember 2018-01-01 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2018-01-01 2018-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2018-01-01 2018-12-31 0001631487 ifrs-full:IssuedCapitalMember 2018-01-01 2018-12-31 0001631487 clgn:SeriesIWarrantsMember 2018-01-01 2018-12-31 0001631487 clgn:SeriesKWarrantsMember 2018-01-01 2018-12-31 0001631487 ifrs-full:BottomOfRangeMember 2018-01-01 2018-12-31 0001631487 ifrs-full:TopOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:PayrollAndRelatedExpensesMember 2018-01-01 2018-12-31 0001631487 clgn:ShareBasedPaymentsMember 2018-01-01 2018-12-31 0001631487 clgn:SubContractorsAndConsultantsMember 2018-01-01 2018-12-31 0001631487 clgn:ConsumablesAndMaterialsMember 2018-01-01 2018-12-31 0001631487 clgn:DepreciationAndAmortizationMember 2018-01-01 2018-12-31 0001631487 clgn:RentAndMaintenanceMember 2018-01-01 2018-12-31 0001631487 clgn:OtherMember 2018-01-01 2018-12-31 0001631487 clgn:RentAndOfficeMaintenanceMember 2018-01-01 2018-12-31 0001631487 clgn:DirectorsSalaryAndInsuranceMember 2018-01-01 2018-12-31 0001631487 clgn:ProfessionalServicesMember 2018-01-01 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember 2018-01-01 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:TrancheOneMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaMember 2018-01-01 2018-12-31 0001631487 clgn:MeitavDashAndAmiSagiMember 2018-01-01 2018-12-31 0001631487 clgn:UnitedStatesAndCanadaMember 2018-01-01 2018-12-31 0001631487 clgn:EuropeCountryMember 2018-01-01 2018-12-31 0001631487 clgn:CustomerOneMember 2018-01-01 2018-12-31 0001631487 clgn:CustomerTwoMember 2018-01-01 2018-12-31 0001631487 clgn:CustomerThreeMember 2018-01-01 2018-12-31 0001631487 clgn:CustomerFourMember 2018-01-01 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:GrossCarryingAmountMember 2018-01-01 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-01-01 2018-12-31 0001631487 clgn:MeitavPurchaseAgreementMember clgn:TranchesThreeMember 2018-01-01 2018-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:BottomOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:TopOfRangeMember 2018-01-01 2018-12-31 0001631487 ifrs-full:FixturesAndFittingsMember ifrs-full:TopOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:BottomOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:TopOfRangeMember 2018-01-01 2018-12-31 0001631487 ifrs-full:FixturesAndFittingsMember ifrs-full:BottomOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaAndMeitavDashAndAmisagiMember 2018-01-01 2018-12-31 0001631487 clgn:DebentureMember 2018-01-01 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:BottomOfRangeMember 2018-01-01 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:TopOfRangeMember 2018-01-01 2018-12-31 0001631487 clgn:WarrantsMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:PrepaidWarrantMember clgn:AfterReportingDateOneMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:AlphaWarrantMember clgn:AfterReportingDateOneMember 2018-01-01 2018-12-31 0001631487 clgn:PutOptionModelMember 2018-01-01 2018-12-31 0001631487 clgn:WarrantsMember 2018-01-01 2018-12-31 0001631487 clgn:SagyPurchaseAgreementMember clgn:TranchesTwoMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:PrepaidWarrantOneMember clgn:AfterReportingDateMember 2018-01-01 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:PrepaidWarrantOneMember clgn:AfterReportingDateOneMember 2018-01-01 2018-12-31 0001631487 2018-12-31 0001631487 ifrs-full:RetainedEarningsMember 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 ifrs-full:OfficeEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 clgn:GreenhouseEquipmentMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 ifrs-full:GrossCarryingAmountMember clgn:GreenhouseEquipmentMember 2018-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 ifrs-full:AdditionalPaidinCapitalMember 2018-12-31 0001631487 ifrs-full:IssuedCapitalMember 2018-12-31 0001631487 ifrs-full:ComputerEquipmentMember 2018-12-31 0001631487 ifrs-full:OfficeEquipmentMember 2018-12-31 0001631487 clgn:LaboratoryEquipmentMember 2018-12-31 0001631487 clgn:GreenhouseEquipmentMember 2018-12-31 0001631487 ifrs-full:LeaseholdImprovementsMember 2018-12-31 0001631487 clgn:InProcessResearchAndDevelopmentOneMember 2018-12-31 0001631487 ifrs-full:SubsidiariesMember 2018-12-31 0001631487 clgn:EmployeesAndInstitutionsForEmployeesMember 2018-12-31 0001631487 clgn:ProvisionsForVacationAndOthersMember 2018-12-31 0001631487 clgn:IsraelCurrencyMember 2018-12-31 0001631487 clgn:ForeignCurrencyMember 2018-12-31 0001631487 ifrs-full:ParentMember 2018-12-31 0001631487 clgn:NisMember 2018-12-31 0001631487 clgn:ForeignCurrencyMember 2018-12-31 0001631487 clgn:OtherPayablesMember 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:GrossCarryingAmountMember 2018-12-31 0001631487 ifrs-full:VehiclesMember ifrs-full:AccumulatedDepreciationAndAmortisationMember 2018-12-31 0001631487 clgn:WarrantsMember 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:AlphaWarrantMember clgn:AfterReportingDateOneMember 2018-12-31 0001631487 clgn:OrdinaryShareMember clgn:AfterReportingDateMember 2018-12-31 0001631487 ifrs-full:VehiclesMember 2018-12-31 0001631487 clgn:AlphaPurchaseAgreementOneMember clgn:PrepaidWarrantOneMember clgn:AfterReportingDateMember 2018-12-31 0001631487 clgn:ChairmanMember ifrs-full:MajorOrdinaryShareTransactionsMember 2019-01-02 2019-01-30 0001631487 ifrs-full:MajorOrdinaryShareTransactionsMember 2019-01-02 2019-01-30 xbrli:shares iso4217:ILS iso4217:USD iso4217:ILSxbrli:shares iso4217:USDxbrli:shares xbrli:pure clgn:share clgn:Directors clgn:Managers CollPlant Holdings Ltd. 0001631487 CLGN false --12-31 20-F 2018-12-31 FY 2018 true No No Yes Non-accelerated Filer false false 190735668 5317000 3797000 4754000 17817000 9654000 8163000 5354000 20065000 9437000 10628000 354000 1933000 516000 3543000 1253000 334000 584000 154000 700000 3052000 814000 22414000 26887000 7172000 503000 580000 155000 92000 68000 18000 4008000 79000 286000 1341000 269000 2033000 3582000 51000 260000 989000 62000 2220000 5274000 1407000 133000 241000 767000 18000 3923000 192000 1454000 1273000 340000 5631000 7195000 1920000 28045000 34082000 9092000 84000 22000 2922000 1923000 999000 2331000 622000 1656000 675000 1996000 1148000 658000 190000 2366000 631000 1445000 734000 187000 3636000 970000 4918000 8417000 2245000 12639000 2434000 649000 141000 363000 97000 1203000 1185000 316000 84000 22000 3673000 980000 61000 14044000 7739000 2064000 18962000 16156000 4309000 4998000 5716000 1525000 178467000 196870000 52527000 -174382000 -184660000 -49269000 9779000 -133590000 140704000 2665000 5160000 -157911000 159864000 3207000 2423000 9083000 -174382000 -46527000 178467000 47617000 4998000 1333000 4783000 17926000 -184660000 -49269000 196870000 52527000 5716000 1525000 28045000 34082000 9092000 292000 1668000 802000 866000 688000 521000 295000 4812000 18034000 17511000 523000 15375000 1816000 52000 380000 1426000 292000 1616000 4432000 16608000 29200000 8728000 2127000 11328000 1806000 826000 2963000 1422000 16921000 7687000 1197000 2554000 698000 1002000 2700000 1083000 4325000 16213000 7080000 1626000 1064000 1112000 971000 2805000 1555000 -12411000 -2855000 861000 3227000 16789000 14066000 5186000 19440000 11048000 2822000 1445000 38000 553000 364000 787000 5039000 8303000 2926000 2243000 47000 528000 321000 411000 1827000 3330000 12480000 4142000 3514000 81000 733000 321000 604000 3085000 -27545000 -20753000 -4084000 -15312000 93000 253000 440000 1650000 441000 380000 60000 225000 -348000 -127000 380000 1425000 -27893000 -20880000 -3704000 -13887000 0.28 0.16 0.02 0.06 100624945 133187048 219229229 -27893000 -27893000 -20880000 -20880000 -3704000 -13887000 -13887000 -3704000 3572000 3572000 4970000 4409000 529000 32000 970000 3639000 3609000 962000 24000 6000 6000 2000 18505000 17995000 510000 16215000 14758000 1457000 1197000 1165000 32000 3618000 3316000 302000 3391000 12708000 12708000 3391000 -248000 -66000 248000 66000 643000 684000 404000 6383000 1703000 5919000 1579000 464000 124000 1327000 634000 350000 93000 -19357000 -17884000 -1245000 -4665000 -19357000 -17884000 -1245000 -4665000 -166000 -620000 492000 447000 796000 2983000 -492000 -447000 -962000 -3603000 18505000 29030000 2668000 9999000 3618000 57000 210000 11000 42000 19000 253000 67000 252000 18486000 32395000 2647000 9915000 -1363000 14064000 440000 1647000 -157000 -44000 160000 601000 864000 1050000 392000 1472000 3572000 4970000 1379000 5169000 157000 44000 -160000 -601000 -35000 -238000 -891000 8000 54000 -11000 -41000 -23292000 -14797000 -2342000 -8779000 -544000 -137000 -421000 -1579000 -487000 -213000 -628000 -2352000 -95000 101000 209000 784000 2498000 -2239000 -107000 -400000 382000 379000 99000 370000 1950000 7309000 2181000 -978000 -5000 -18000 3935000 -3087000 1097000 4114000 -19357000 -17884000 -1245000 -4665000 1678000 3391000 12708000 66000 248000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 1&#8212;GENERAL</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">CollPlant Holdings&#160;Ltd. is a regenerative medicine company focused on developing and commercializing tissue repair products, initially for three-dimensional bio-printing of tissues and organs, dermal fillers for, aesthetics, orthobiologics and advanced wound care markets. CollPlant&#8217;s products are based on its rhCollagen, a form of human collagen produced with CollPlant&#8217;s proprietary plant-based genetic engineering technology. The Company sales includes sales of (i) the BioInk product for the development of 3D bioprinting of organs and tissues and (ii) sales in Europe of the products for tendinopathy and wound healing, that received during 2016 a CE approval that enables their marketing in Europe.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company operates through CollPlant&#160;Ltd., a wholly-owned subsidiary (CollPlant Holdings Limited and CollPlant&#160;Ltd. will be referred to hereinafter as &#8220;the Company&#8221; and &#8220;CollPlant&#8221;, respectively).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The address of the Company&#8217;s registered office is 4 Oppenheimer St., Science Park, Rehovot, Israel. Since January 31, 2018, the Company&#8217;s American Depositary Shares (&#8220;ADSs&#8221;) commenced trading on the Nasdaq Capital Market. Each ADS represents 50 ordinary shares. On October 29, 2018 the Company&#8217;s ordinary shares delisted from the Tel Aviv Stock Exchange (&#8220;TASE&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company has an accumulated deficit as of December 31, 2018, as well as a history of net losses and negative operating cash flows in recent years. The Company has an accumulated deficit of approximately NIS 184.7 million as of December 31, 2018. The Company expects to continue incurring losses and negative cash flows from operations until its products (primarily BioInk) reach commercial profitability. As a result of these expected losses and negative cash flows from operations, along with the Company&#8217;s current cash position, the Company does not have sufficient cash to meet its liquidity requirements for the following twelve months. Consequently, there is substantial doubt about the Company&#8217;s ability to continue as a going concern. These financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 1in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Management&#8217;s plans include the continued commercialization of the Company&#8217;s products and raising capital through the sale of additional equity securities, debt or capital inflows from strategic partnerships. 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 raising capital, it may need to reduce activities, curtail or cease operations.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Convenience translation into U.S. dollars (&#8220;dollars&#8221;, &#8220;USD&#8221; or &#8220;$&#8221;)</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">For the convenience of the reader, the reported New Israeli Shekel (&#8220;NIS&#8221;) amounts as of December&#160;31, 2018 and for the year then ended have been translated into U.S. dollars at the Bank of Israel&#8217;s representative rate of exchange for December 31, 2018 ($1&#160;= NIS 3.748). The dollar amounts presented in these financial statements should not be construed as representing amounts that are receivable or payable in dollars or convertible into dollars, unless otherwise indicated.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Approval of financial statements</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">These consolidated financial statements were approved by the board of directors on March&#160;31, 2019.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 2&#8212;SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Basis of presentation of the financial statements</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s financial statements as of December&#160;31, 2017 and 2018 and for each of the three years ended on December 31, 2018 comply with International Financial Reporting Standards (&#8220;IFRS&#8221;) and interpretations issued by the IFRS Interpretations Committee (&#8220;IFRS IC&#8221;) applicable to companies reporting under IFRS, as issued by the International Accounting Standard Board (&#8220;IASB&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The significant accounting policies described below have been applied consistently to all the years presented, unless otherwise stated.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The consolidated financial statements have been prepared on the basis of historical cost except for debentures and derivatives at fair value.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The preparation of financial statements that comply with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment when applying the Company&#8217;s accounting policies. Note&#160;3 provides disclosure of areas involving a considerable degree of judgment or complexity, or areas where assumptions and estimates have a material effect on the financial statements. Actual results may differ materially from the estimates and assumptions used by the Company&#8217;s management.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Consolidated financial statements</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">A subsidiary is an entity over which the Company has control. The Company controls an entity when the Company 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. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. The subsidiaries are deconsolidated from the date that control ceases.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Translation of foreign currency balances and transactions:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Functional currency and presentation currency</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Items included in the financial statements are measured using the currency of the primary economic environment in which the Company operates (&#8220;Functional Currency&#8221;). The financial statements are stated in NIS, which is the Functional Currency and presentation currency of the Company and its subsidiary.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Transactions and balances</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Transactions in currencies other than the functional currency (&#8220;Foreign Currencies&#8221;) are translated into the Functional Currency at exchange rates at the dates of transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in Foreign Currencies are recognized in the profit or loss for the year.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Gains and losses arising from changes in exchange rates are recognized in the statement of comprehensive loss under &#8220;Financing expenses (income), net&#8221;.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b><br /></b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>D.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Property and equipment</b></font></td> </tr> </table> <div><b>&#160;</b></div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All property and equipment (including leasehold improvements) are stated at historical cost less accumulated depreciation and impairment. Historical cost of an item of property and equipment includes:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discount and rebates.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Repairs and maintenance are charged to the statements of comprehensive loss during the period in which they are incurred.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The assets are depreciated using the straight-line method to allocate their cost over their estimated useful lives, as follows:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div>Leasehold improvements</div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Years</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px; text-align: left;">Computer equipment</td> <td style="width: 16px;">&#160;</td> <td style="width: 172px; text-align: center;">3</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Greenhouse equipment*</td> <td>&#160;</td> <td style="text-align: center;">4 - 10</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Office furniture</td> <td>&#160;</td> <td style="text-align: center;">7 - 17</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Laboratory equipment</td> <td>&#160;</td> <td style="text-align: center;">4 - 5</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>&#160;</td> <td style="text-align: center;">5</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Vehicles</td> <td>&#160;</td> <td style="text-align: center;">4-7</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Greenhouse equipment&#8212;agricultural equipment used in the tobacco production greenhouse.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Leasehold improvements are depreciated over the lease period or the expected useful life of the improvements, whichever is shorter.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Impairment of the asset to its recoverable amount is recognized as incurred, if the carrying amount of the asset is greater than its estimated recoverable amount (see also section&#160;F below).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gains or losses on disposals are determined by comparing net proceeds with the carrying amount. These are included in the statement of comprehensive loss.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>E.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Intangible assets</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In process research and development (&#8220;IPR&amp;D&#8221;)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Acquired IPR&amp;D is presented based on the fair value at the date of the acquisition and up to December&#160;31, 2015 (see below), was not depreciated. Such asset was tested annually for impairment, see section&#160;F below. The assessment was carried out more frequently if there were indications of impairment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Up to December&#160;31, 2015, during the research and development period, this intangible asset was not amortized. Commencing 2016, the said asset is available for use and therefore is amortized on a straight-line basis until the end of the period of the patent for the know-how (approximately 10&#160;years).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">For information about impairment of non-monetary assets, see F below.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Software</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Acquired software licenses are capitalized on the basis of the cost incurred to acquire and implement the specific software. These costs are amortized on a straight-line basis over the estimated useful life of licenses (3&#160;years).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development (&#8220;R&amp;D&#8221;)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Research expenses are recognized as an expense as incurred. Costs incurred for development projects (referring to design and testing of new or improved products) are recognized as intangible assets when the following conditions exist:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">It is technically feasible to complete the intangible asset so that it will be available for use;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Management intends to complete the development of the intangible asset and to use or sell the asset;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The intangible asset can be used or sold;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">It can be demonstrated how the intangible asset will generate probable future economic benefits;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">There are adequate technical, financial and other resources to complete development and to use or sell the intangible asset;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The expenditure attributable to the intangible asset can be reliably measured during its development.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Other development costs that do not meet these criteria are recognized as an expense when incurred. Development costs previously recognized as an expense are not recognized as an asset in subsequent periods.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">As of December&#160;31, 2018, the Company has not met the rules for capitalizing development costs as an intangible asset and accordingly, no asset whatsoever has been recognized in the financial statements for such costs.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>F.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Impairment of non-monetary assets</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Assets that have indefinite useful life are not subject to amortization and are tested annually (or when there are indicators for impairment-see below) for impairment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">All non-monetary assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset&#8217;s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped together at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">For the years ended December&#160;31, 2016, 2017 and 2018, no impairment has been recognized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>G.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Government grants</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Government grants, which are received from the Israel Innovation Authority (&#8220;IIA&#8221;) (formerly known as the Israeli Office of Chief Scientist or OCS) by way of participation in research and development that is conducted by the Company, fall within the scope of &#8220;forgivable loans,&#8221; as set forth in International Accounting Standard 20 &#8220;Accounting for Government Grants and Disclosure of Government Assistance&#8221; (&#8220;IAS&#160;20&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">As approved by the IIA, the grants are received in installments as the program progresses. The Company recognizes each forgivable loan on a systematic basis at the same time the Company records, as an expense, the related research and development costs for which the grant is received, provided that there is reasonable assurance that: (a)&#160;the Company complies with the conditions attached to the grant, and (b)&#160;the grant will be received (usually upon receipt of approval notice). The amount of the forgivable loan is recognized based on the participation rate approved by the IIA; thus, a forgivable loan is recognized as a receivable when approved research and development costs have been incurred before grant funds are received.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">If at the time of grant approval there is reasonable assurance that the Company will comply with the forgivable loan conditions attached to the grant, and that the Company will not pay royalties to IIA, grant income is recorded against the related research and development expenses in the statements of comprehensive loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">If at the time of grant or in subsequent periods, it is not reasonably assured that royalties will not be paid to the IIA, the Company recognizes a liability that is measured based on the Company&#8217;s best estimate of the amount required to settle the Company&#8217;s obligation at the end of each reporting period.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>H.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Cash and cash equivalents</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Cash and cash equivalents include cash on hand and short-term bank deposits, and other short-term highly liquid investments with original maturities of three months or less.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>I.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Inventory</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Inventory is measured at the lower of cost and net realizable value.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The cost of inventories is based on the first-in first-out (FIFO) principle. In the case of purchased goods and work in process, costs include design, raw materials, direct labor, other direct costs and fixed production overheads (based on the normal operating capacity of the production facilities).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Net realizable value is the estimated selling price in the ordinary course of business, less variable attributable selling expenses.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>J.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Share capital and other equity instruments</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s ordinary shares are classified as share capital. Incremental costs directly attributable to the issue of new shares or warrants are recognized in equity as a deduction of issue proceeds. Pre-paid warrants (that their exercise price was prepaid) that upon exercise will be converted into fixed amount of ordinary shares &#8211; are classified as equity instruments in the statements of financial position.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>K.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Trade payables</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Trade payables include the Company&#8217;s liabilities to pay for goods or services purchased from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if payment is due within one year, otherwise they are recognized as non-current liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Trade payables are recognized initially at fair value and subsequently measured at amortized cost based on the effective interest method.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>L.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Deferred taxes</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company recognizes deferred taxes based on the liability method, for temporary differences between the carrying amounts of assets and liabilities included in the consolidated financial statements and the amounts used for tax purposes. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. In addition, deferred taxes are not recognized if the temporary differences arise on initial recognition of an asset or a liability, other than in a business combination, which, at the time of the transaction, have no effect on profit or loss&#8212;whether for accounting or tax purposes. The amount of deferred taxes is determined in accordance with the tax rates (and tax laws) that have been enacted or substantively enacted as at the date of the statement of financial position and are expected to apply when the deferred tax assets will be realized or when the deferred tax liabilities will be settled.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Deferred tax assets are recognized for deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">In the absence of a forecast of future taxable income, a deferred tax asset was not recognized in the Company&#8217;s financial statements.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>M.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Employee benefits</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Liability for severance pay</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with labor laws and labor agreements in effect, the Company and its subsidiary are required to pay severance and pension benefits to employees who are dismissed or retire under certain circumstances.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The said liability to pay pension and severance pay is related to employees in Israel who are covered by Section&#160;14 of the Severance Pay Law, and is covered by regular contributions to defined contribution plans. The amounts contributed are not included in the statement of financial position.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vacation and recreation pay</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">By law, all employees are entitled to vacation and recreation pay, calculated on a monthly basis. The right is based on the employment period.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>N.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenue recognition</b>&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>General</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">As of January 1, 2018, the Company has applied IFRS 15 using the modified retrospective approach, in accordance with the transitional directive, which allows recognition of the cumulative effect of the initial application as an adjustment to the opening balance of equity of initial application.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The initial implementation of IFRS 15 did not have a material effect on the consolidated financial statements of the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">IFRS 15 introduces a five-step model for recognizing revenue from contracts with customers, as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Identifying the contract(s) with the customer.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Identifying the separate performance obligations in the contract.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(3)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Determining the transaction price.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(4)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Allocating the transaction price to separate performance obligations in the contract.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(5)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Recognizing revenue when (or as) each of the performance obligations is satisfied.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b>Revenue from the sale of goods</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Revenue from sale of goods is recognized in profit or loss at the point in time when the control of the goods is transferred to the customer, generally upon delivery of the goods to the customer. The goods are products based on the Company&#8217;s rhCollagen, and includes the BioInk product for the development of 3D bioprinting of organs and tissues and products for tendinopathy and wound healing.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b>Revenue from rendering of services</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenue from rendering of services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company&#8217;s performance. Under the Company&#8217;s service contracts, the Company has a right to consideration from the customer in an amount that corresponds directly with the value to the customer of the Company&#8217;s performance completed to date. Therefore, the Company utilizes the practical expedient in IFRS 15 and recognizes revenue in the amount to which the Company has a right to invoice.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>Revenues from licensing agreement</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;On October 19, 2018, the Company signed a License, Development and Commercialization Agreement (the &#8220;License Agreement&#8221;) with Lung Biotechnology PBC (&#8220;LB&#8221;), a public benefit corporation and wholly-owned subsidiary of United Therapeutics Corporation, pursuant to which LB will be entitled to develop engineered lungs or lung substitutes using CollPlant&#8217;s rhCollagen and BioInk (see also Note 13(c)).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">According to IFRS 15, a performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. Goods and services that are not distinct are bundled with other goods or services in the contract until a bundle of goods or services that is distinct is created. A good or service promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity&#8217;s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Options granted to the customer that do not provide a material right to the customer that it would not receive without entering into the contract do not give rise to performance obligations.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company has identified the following performance obligations in the License Agreement: (1) grant of the license and use of its IP (&#8220;License&#8221;); and (2) a limited quantity of BioInk to be supplied over a specific time frame (&#8220;First BioInk&#8221;). The License is distinct as the licensee is able to benefit from the license on its own at its current stage (inter alia, due to sublicensing rights, option services can be obtained from other experts in the field and not necessarily from the Company, etc.).&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">In addition, the Company has identified several options in the License Agreement. However, neither of the options provides a material right to the customer and therefore, neither of the said options give rise to a performance obligation. The said options are: (1) grant of two years option to extend the License to additional organs or organ substitutes (&#8220;Products Option&#8221;); (2) one-year right of first refusal to receive an exclusive license relating to the option products (&#8220;Right of First Refusal&#8221;); (3) option for the purchase of additional BioInk that may be supplied (&#8220;Additional BioInk&#8221;); and (4) option for the purchase of consulting services (&#8220;Consulting Services&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The transaction price included an up-front paid amount of $5.0 million and reimbursement for part of the costs related to the IIA in an amount of $1.0 million, as well as variable considerations contingent upon LB achieving certain milestones, sales-based royalties and additional reimbursement of costs related to payments made by CollPlant to the IIA (&#8220;Variable Consideration&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">IFRS 15 defines the &#8216;Transaction Price&#8217; as the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to a customer. The Company allocates the transaction price to each performance obligation identified based on the standalone selling prices of the goods or services being provided to the customer. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer. When the stand-alone selling price is not directly observable by reference to similar transactions with similar customers, the Company applies suitable methods for estimating the stand-alone selling price.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">In addition, as stated above, Variable Consideration is included in the transaction price at its &#8220;most likely outcome&#8221; and only to the extent that it is highly probable that a significant reversal in the amount of revenue recognized will not occur when the uncertainty associated with the Variable Consideration is subsequently resolved.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">With respect to the Variable Consideration:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Sales-based royalties are not included in the transaction price. Rather, they are recognized as incurred, due to the specific exception of IFRS 15 for sales-based royalties in licensing of intellectual properties.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Variable Consideration is related to LB achieving certain milestones, including the related reimbursement of part of the IIA royalties. Since the Company estimates that the &#8220;most likely outcome&#8221; of these milestones would not be achieved, it is not included in the transaction price. The said Variable Consideration will be recognized only when the &#8220;most likely outcome&#8221; would be that milestones will be achieved and it would be highly probable that a significant reversal of revenues will not occur, usually only upon achievement of the specific milestone.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The following are the details of the allocation of the transaction price (which does not include the Variable Consideration) to the various performance obligations in the Agreement:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The First BioInk was allocated with its stand-alone selling price, which is the observable price of the BioInk when the Company sells it separately.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The License was allocated with an estimated stand-alone selling price, based on the residual approach, since the Company has not yet established a price for that license and the license has not previously been sold on a stand-alone basis (i.e. the selling price is uncertain), as well as the related IIA royalties reimbursement.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The License performance obligation is considered a right to use IP in accordance with IFRS 15. Therefore, the transaction price allocated to it was recognized at a point in time, upon transfer of control over the License to LB.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The transaction price allocated to the First BioInk is recognized at the point in time when the control of the BioInk is transferred to LB, generally upon delivery of the BioInk to LB.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company considered whether the transaction price allocated to the First BioInk includes a financing component and concluded that the financing component is not material.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>O.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Share-based payment</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company has a share-based payment plan for employees and service providers, settled by the Company&#8217;s equity instruments, whereby the Company receives services from employees and service providers in exchange for the Company&#8217;s equity instruments (options or shares). The fair value of services received from employees and service providers in exchange for the equity instruments is recognized as an expense in the statements of comprehensive loss. With respect to options granted to employees the total amount recognized as an expense in statements of the comprehensive loss is based on the fair value of the options granted, without taking into account the effect of service conditions and non-market vesting conditions.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">With respect to options granted to service providers and suppliers, the fair value of the grant is determined in accordance with the fair value of the service or goods received.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Non-market vesting conditions are included in the assumptions used to estimate the number of options expected to vest. The total expense is recognized in the vesting period, which is the period for fulfillment of all the defined vesting terms of the share-based payment arrangement.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">At each reporting date, the Company adjusts its estimates of the number of options that are expected to vest, based on the non-market vesting conditions, and recognizes the effect of the change compared to original estimates, if any, in the statement of comprehensive loss, and a corresponding adjustment in equity.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">When exercising the options, the Company issues new shares, the proceeds, net of directly attributable transaction costs, are recognized in share capital (par value) and additional paid in capital.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>P.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Segment reporting</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments. The Company operates in one operating segment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Q.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Leases</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Lease agreements in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made in connection with operating leases are recognized in profit or loss using the straight-line basis over the term of the lease.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>R.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Financial instruments:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">As of January 1, 2018, the Company adopted IFRS 9 &#8220;Financial Instruments&#8221;.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The initial adoption of IFRS 9 did not have a material effect on the consolidated financial statements of the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial assets</font></td> </tr> <tr style="vertical-align: top;"> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Classification</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The financial assets of the Company are classified as financial assets at amortized cost. The classification is done on the basis of the Company&#8217;s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 122.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets at amortized cost are assets held within a business model whose objective is to hold assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p>Financial assets at amortized cost are included in current assets, except for those with maturities greater than 12 months after the statements of financial position date (for which they are classified as noncurrent assets).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets at amortized cost of the Company are included in trade receivables and other receivables in the Statements of Financial Position.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Recognition and measurement</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Regular purchases and sales of financial assets are recognized on the settlement date, which is the date on which the asset is delivered to the Company or delivered by the Company. Investments are initially recognized at fair value plus transaction costs for all financial assets not recorded at fair value through profit or loss, except for trade receivables, that are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets measured at fair value through profit or loss are initially recognized at fair value, related transaction costs are expensed to profit or loss. Financial assets are derecognized when the rights to receive cash flow from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Financial assets at fair value through profit or loss are subsequently recorded at fair value. Financial assets at amortized cost are measured in subsequent periods at amortized cost using the effective interest method.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Gains or losses arising from changes in the fair value of financial assets at fair value through profit or loss are presented in the Statement of Comprehensive Loss under &#8220;Financial Expenses (Income), net&#8221;.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">As to methods for measurement of the Company&#8217;s financial instruments, see note 4.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impairment</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">At each reporting date, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. If the financial instrument is determined to have low credit risk at the reporting date, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company measures the loss allowance for expected credit losses on trade receivables that are within the scope of IFRS 15 and on financial instruments for which the credit risk has increased significantly since initial recognition based on lifetime expected credit losses. Otherwise, the Company measures the loss allowance at an amount equal to 12-month expected credit losses at the current reporting date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Prior to the effective date and adoption of IFRS 9, the financial assets of the Company were classified into loans and receivables. The classification depended on the purpose for which the financial assets were acquired, also, prior to the adoption of IFRS 9, the Company assessed at December 31, 2017 whether there is any objective evidence that a financial asset or group of financial assets was impaired.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial liabilities</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 74.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">General</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 74.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are initially recognized at their fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are subsequently measured at amortized cost, except for derivative financial instruments, which are subsequently measured at fair value through profit or loss (see below).&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are classified as current liabilities if payment is due within one year or less, otherwise they are classified as non-current liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company&#8217;s financial liabilities at amortized cost are included in accounts payable, accrued liabilities and other and deferred revenues.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The derivative financial instruments represent warrants that confer the right to net share settlement.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company removes a financial liability (or a part of a financial liability) from its statement of financial position when, and only when, it is extinguished (when the obligation specified in the contract is discharged, canceled or expired).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial liabilities at fair value through profit or loss.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Warrants, convertible debentures allotted to investors that contain an anti-dilution protection right and other rights, as well as anti-dilution derivative related to shares issued (see also Notes 12 and 14) are classified, in accordance with IAS 32 as &#8220;financial liabilities&#8221; since the number of shares that will be issued upon their settlement is not fixed. As the aforementioned liabilities are non-equity derivative financial instruments, they are measured, in accordance with IFRS 9, as financial liabilities at fair value through profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with IFRS 9, the Company elected to designate, upon initial recognition, the entire hybrid (combined) debenture (that includes the host debenture contract and the anti-dilution protection) and warrants as a financial liability at fair value through profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The said liabilities are measured at their fair value at each date of the balance sheet, with changes in their fair value recorded to &#8220;financial expenses (income), net&#8221; in the consolidated statements of comprehensive loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">For those liabilities for which, upon initial recognition, the transaction price is different than their fair value &#8211; the liability is initially recognized at fair value adjusted to defer the difference between the fair value at initial recognition and the transaction price (&#8220;Day 1 Loss&#8221;), as the Company uses valuation techniques that incorporate data not obtained from observable markets. After initial recognition, the unrecognized Day 1 Loss of the said liabilities is amortized on a straight line basis over the term that market participants would take into account when pricing the liability. Any unrecognized Day 1 Loss is immediately recognized in profit or loss if the fair value of the financial instrument in question can be determined either by using only market observable model inputs or by reference to a quoted price for the same product in an active market. Upon exercise of convertible debenture for which an unrecognized a Day 1 Loss exists, the carrying amount of the convertible debenture (which is presented net of the unrecognized Day 1 Loss) is reclassified to equity with no impact on profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Transaction costs allocated to financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 70pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>S.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Loss per share</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Basic loss per share is generally based on the distributable loss to ordinary shareholders, divided by the weighted average number of ordinary shares outstanding in the period, net of shares held by the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">When calculating diluted loss per share, the Company adjusts the loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Potential shares are only taken into account if their effect is dilutive (reduces earnings per share or increases loss per share).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>T.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>New standards and interpretations that are not yet in effect and have not been early adopted by the Company:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">IFRS&#160;16 &#8220;Leases&#8221; (&#8220;IFRS 16&#8221;)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">IFRS 16 was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company has reviewed all of the Company&#8217;s arrangements that in effect in light of the new lease accounting rules in IFRS 16. The standard will affect primarily the accounting for the Company&#8217;s operating leases.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company expects to recognize lease liabilities and a right of use assets of approximately NIS 13.0 million on January 1, 2019.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company will apply the standard from its mandatory adoption date of January 1, 2019. The Company intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company expects that, based on the Company&#8217;s lease agreements as of December 31, 2018, net loss will increase by approximately NIS 956,000&#160;for 2019 as a result of adopting the new rules. Operating cash flows for 2019 will increase by approximately NIS 76,000, and financing cash flows will decrease by approximately NIS 882,000 as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 3&#8212;SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Significant accounting estimates</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company makes estimates and assumptions with respect to the future. By nature, accounting estimates are rarely identical to actual results. The estimate that has a significant risk of resulting in a material adjustment to carrying amounts of assets and liabilities in the next financial year are discussed below:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impairment indicators of IPR&amp;D.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company reviews whether events or changes in circumstances have occurred that indicate that the carrying amount of IPR&amp;D may not be recoverable. In such cases an impairment test is performed. See also Note&#160;2E(1).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair value measurement of debentures and warrants</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.1pt; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The fair value of the debentures and warrants is measured on the basis of accepted valuation models and assumptions regarding unobservable inputs used in the valuation models, see also Note 12.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.1pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0pt; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7pt;"></td> <td style="width: 35.3pt;"><b>B.</b></td> <td style="text-align: justify;"><b>Significant judgments made when applying the Company&#8217;s accounting policy:</b></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Grants from the IIA</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with the accounting treatment prescribed in Note&#160;2G, the Company&#8217;s management is required to examine whether there is reasonable assurance that the grant that was received will be repaid. In addition, if, at the date of initial recognition, the grant is recognized in the statement of comprehensive loss, the Company&#8217;s management is required to evaluate whether there is reasonable assurance of the project&#8217;s success and of payment of royalties to the IIA. The Company&#8217;s management believes that as of December&#160;31, 2018, there is reasonable assurance that royalties will be paid to the IIA and that their present value is NIS 1.2 million. This amount was recognized as a financial liability in the statement of financial position.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Development costs</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Development costs are capitalized in accordance with the accounting policy described in Note&#160;2E(3). Capitalization of costs is based on management&#8217;s judgment about technological and economic feasibility. The Company&#8217;s management believes that as of December&#160;31, 2018, the above conditions were not met, therefore development costs were not capitalized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenue recognition</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">With respect to the License Agreement (see Note 13C), the Company used its judgement to identify the Company&#8217;s promises in the agreement, whether the options included provide a material right to LB and whether the promises are a distinct performance obligation. In addition, the Company uses its judgement to determine the allocation of the transaction price between its identified distinct performance obligations. The Company uses its judgement to determine that the License in the License Agreement is the predominant item to which the royalty relates. In addition, Variable Consideration consists of potential future milestone payments.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company determined that all such Variable Consideration shall be allocated to the License (the satisfied performance obligation).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">However, it will be recognized only when it would be highly probable that a significant reversal of cumulative revenues will not occur, usually upon achievement of the specific milestone.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 4&#8212;FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>Financial risk management:</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial risk factors</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s activities expose it to diverse financial risks: currency risk, credit risk, and liquidity risk. The Company&#8217;s comprehensive risk management plan focuses on the unpredictability of financial markets and the attempt to minimize potential adverse effects on the Company&#8217;s financial performance.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Risk management is carried out by the Company&#8217;s management under policies approved by the Board.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A)</font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><i>Market risks</i></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Exchange rate risk</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company is exposed to exchange rate risks arising from exposure to various currencies, primarily the U.S. dollar. The exchange rate risk is due to future commercial transactions and assets or liabilities denominated in foreign currency.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As of December&#160;31, 2018, if the Company&#8217;s Functional Currency had depreciated by 5% &#160;against the U.S. dollar, and if all the other variables had remained constant, the loss for the year would have been higher by NIS 596,000 (December&#160;31, 2017, NIS 350,000), mainly due to losses from exchange rate differences for translation of cash balances, other receivables and trade payables.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">B)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><i>Liquidity risk</i></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company has not yet generated profits or positive cash flows from its operating activities, and the continuation of its operations in the current format is subject to raising financing sources until a positive cash flow is generated from its operations. See also Note&#160;1A.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Capital risk management</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The objectives of the Company&#8217;s capital risk management are to maintain the Company&#8217;s ability to continue as a going concern in order to provide shareholders with a return on their investment and to maintain an optimal capital structure to minimize the cost of capital. See also Note&#160;1A.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Estimates of fair value</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.15pt; text-align: justify; color: #000000; text-transform: none; text-indent: 15.85pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A.</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair value measurement</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Level 2: Observable inputs that are based on inputs not quoted on active markets but corroborated by market data.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">B.</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Estimates of fair value&#160;&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 57.15pt; text-align: justify; color: #000000; text-transform: none; text-indent: 15.85pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following is an analysis of the financial instruments measured at fair value, according to valuation methods. Inputs for the assets and liabilities that are not based on observable market data (unobservable inputs) (Level 3).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s financial liability at fair value through profit or loss is the obligation for warrants and anti-dilution derivatives.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 7.1pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the group&#8217;s financial liabilities measured at fair value, net of unrecognized Day 1 Loss:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">December&#160;31,</td> <td style="font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px;">Fair value of convertible debentures</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">14,015</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Unrecognized Day 1 Loss</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,376</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Debentures, net</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,639</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">December&#160;31,</td> <td style="font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px;">Fair value of warrants</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">4,736</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Unrecognized Day 1 Loss</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,302</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Warrants, net</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,434</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">C.</font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial instruments in level 3</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the Level 3 instruments roll-forward during 2017:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Opening balance as of January 1, 2017</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1379px;">Issuance</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">(14,190</td> <td style="width: 15px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Profit from changes in fair value of financial instruments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">34</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">Closing balance as of December 31, 2017</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(14,156</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.15pt; color: #000000; text-transform: none; text-indent: 15.85pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.15pt; color: #000000; text-transform: none; text-indent: 15.85pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the Level 3 instruments roll-forward during 2018:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px;">Opening balance as of January 1, 2018</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">(14,156</td> <td style="width: 15px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Issuance of Warrants</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(6,273</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Conversion of debentures to pre-paid warrants</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">13,740</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Profit from changes in fair value of financial instruments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,590</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">Closing balance as of December 31, 2018⁽¹⁾</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(5,099</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> </table> <p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(1)</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Represents $4,736 thousand warrants and $363 thousand anti-dilution derivatives.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 5&#8212;CASH AND CASH EQUIVALENTS</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Breakdown by currency:</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">NIS</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">9,654</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">9,437</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">In foreign currency (mainly U.S. dollars)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8,163</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">10,628</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">17,817</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">20,065</td> </tr> </table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>NOTE 6&#8212;OTHER RECEIVABLES</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;">Value added tax authorities</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">464</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">471</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Receivables from IIA</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,294</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">375</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Prepaid expenses</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,717</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">393</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">68</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">14</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,543</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,253</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Most financial balances are in NIS and are unlinked.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The carrying amount of receivables is a reasonable approximation of their fair value since the effect of discounting is insignificant.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The maximum exposure to credit risk as of December&#160;31, 2018 for receivables that are financial assets is their carrying amount. The Company does not hold any collateral for these receivables.</p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Cost</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 580px; text-align: left;">Computer equipment</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">662</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">40</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">702</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">569</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">54</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">623</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">79</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Office furniture</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">496</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">187</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">27</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">214</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">286</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Laboratory equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,183</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">284</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,467</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,726</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">400</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,126</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,341</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Greenhouse equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,459</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">254</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,713</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">269</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Leasehold improvements</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,043</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,842</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,885</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">813</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">39</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">852</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,033</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,366</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,170</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,536</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7,754</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">774</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,528</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,008</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Costs</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 580px; text-align: left;">Computer equipment</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">702</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">16</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">718</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">623</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">44</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">667</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">51</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Office furniture</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">501</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">214</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">27</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">241</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">260</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Laboratory equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,467</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">68</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,535</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,126</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">420</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,546</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">989</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Greenhouse equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,713</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">207</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,920</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">62</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Leasehold improvements</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,885</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">362</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,247</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">852</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">175</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,027</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,220</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,536</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">447</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,983</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,528</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">873</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,401</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,582</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Costs</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 580px; text-align: left;">Computer equipment</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">718</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">137</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 95px; text-align: right;">855</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">667</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">55</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">722</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 94px; text-align: right;">133</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Office furniture</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">501</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">8</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">509</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">241</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">27</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">268</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">241</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Laboratory equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,535</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">188</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,723</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,546</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">410</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,956</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">767</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Greenhouse equipment</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,982</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,920</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">44</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,964</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">18</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Leasehold improvements</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,247</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,438</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,685</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,027</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">735</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,762</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,923</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1.5pt;">Vehicles</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">212</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">212</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">20</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">20</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">192</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,983</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,983</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,966</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,401</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,291</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,692</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,274</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 8&#8212;INTANGIBLE ASSETS</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>Composition of intangible assets and accumulated amortization, by principal groups, and the movements therein in 2016</b>:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Cost</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><b>Carrying</b><br /><b>amount at</b><br /><b>end</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><b>of year</b></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 439px;">Software</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">104</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">104</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">103</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">1</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">104</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">&#8212;</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1.5pt;">IPR&amp;D</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,631</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">103</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">90</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">193</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,631</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>Composition of intangible assets and accumulated amortization, by principal groups, and the movements therein in 2017:</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Costs</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated amortization</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Addition</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end of<br />&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Amortized<br />balance as at<br />December&#160;31,<br />2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 439px;">Software</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">104</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">104</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">104</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">&#8212;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">104</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">-</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1.5pt;">IPR&amp;D</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">177</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">266</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,454</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">193</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">177</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">370</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,454</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>Composition of intangible assets and accumulated amortization, by principal groups, and the movements therein in 2018:</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Costs</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated amortization</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Addition</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Amortized<br />balance as at<br />December&#160;31,<br />2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 439px; padding-bottom: 1.5pt;">IPR&amp;D</td> <td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td> <td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">266</td> <td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">181</td> <td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">447</td> <td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,273</td> <td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,720</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,720</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">266</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">181</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">447</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,273</td> <td style="text-align: left; padding-bottom: 4pt;"></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 9&#8212;INCOME TAX</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Taxation of the Company and its subsidiary:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Tax rates</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The income of the Company and its subsidiary is taxable at the regular rate of corporate tax in Israel.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In January 2016, the Law for the Amendment of the Income Tax Ordinance (No.&#160;216) was published, enacting a reduction of corporate tax rate beginning in 2016, from 26.5% to 25%.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In December 2016, the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in 2017 and 2018), 2016 was published. The Law stipulates a further reduction in the rate of corporate tax, from 25% to 23%. However, the Law establishes a temporary order by which the corporate tax rate in 2017 will be 24%. As a result, the corporate tax rate applicable in 2017 was 24% and the corporate tax rate from 2018 onwards is 23%. The changes in the above tax rates have no effect on the Company&#8217;s financial statements.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The corporate tax rate for 2018, 2017 and 2016 was 23%, 24% and 25%, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Carry-forward tax losses</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Deferred tax assets for carry-forward tax losses are recognized if it is probable that the tax benefit will be realized through the existence of future taxable profits.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The carry-forward losses of CollPlant Holdings&#160;Ltd. (without capital losses) as at December&#160;31, 2018 and 2017 amounted to approximately NIS 12.6&#160;million and NIS 11.1&#160;million, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The carry-forward losses of CollPlant&#160;Ltd. (without capital losses) as at December&#160;31, 2018 and 2017 amounted to approximately NIS 152&#160;million and NIS 148&#160;million, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Under Israeli tax laws, carryforward tax losses have no expiration date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company did not recognize deferred taxes on the losses of the Company and the subsidiary, as it is not probable that the carry-forward losses will be realized in the foreseeable future.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Tax assessments</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with the Israeli Income Tax Ordinance, tax assessments filed by the Company and its subsidiary up to 2013 are considered final.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>D.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Value added tax</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company and its subsidiary are registered as authorized dealers in Israel for VAT purposes.</p> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 10&#8212;ACCOUNTS PAYABLE</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;">A.&#160;&#160;&#160;&#160;Trade payables:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-left: 0.25in;">Breakdown by currency:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1151px; padding-left: 30pt;">NIS</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">1,923</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">1,656</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 30pt;">In foreign currency (mainly U.S. dollars)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">999</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">675</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,922</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,331</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; font-weight: bold;">B.&#160;&#160;&#160;&#160;Composition of other payables:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-left: 20pt;">Employees and institutions for employees</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,148</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,445</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-left: 20pt;">Provisions for vacation and others</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">658</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">734</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt; padding-left: 20pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">190</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">187</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,996</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,366</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The carrying amount of accounts payable is a reasonable approximation of their fair value since the effect of discounting is insignificant.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>NOTE 11&#8212;RETIREMENT BENEFIT OBLIGATION</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The amount recognized as an expense for defined contribution plans in 2016, 2017 and 2018 is NIS&#160;1,558&#160;thousand NIS 1,378 thousand and NIS&#160;1,627&#160;thousand, respectively.<b></b></p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 12&#8212;FINANCING AGREEMENT</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On September&#160;6, 2017, the Company signed a securities purchase agreement (the &#8220;Alpha Purchase Agreement&#8221;) with Alpha Capital Anstalt (&#8220;Alpha&#8221;)&#160;, pursuant to which the Company agreed, upon the terms and subject to the conditions of the Alpha Purchase Agreement, to issue to Alpha, in a private placement, certain securities, in three tranches, as follows: (i)&#160;at the first closing, which was completed on October&#160;26, 2017, ordinary shares and a Convertible Debenture (&#8220;Debenture&#8221;), for a purchase price of $2&#160;million, (ii)&#160;at the second closing, which was completed on December 31, 2017 and which was subject, among other things, to approval of the private placement by the Company&#8217;s shareholders, a Debenture for a purchase price of $2&#160;million, and (iii)&#160;at the third closing, which was completed on April 30, 2018, which was subject, among other things, to the listing of the Company&#8217;s ADSs for trading on the NASDAQ and to the receipt of shareholder and option holder approval to adopt the provisions of Chapter E3 of the Israeli Securities Law of 1968 (which allows the Company to report in Israel in accordance with U.S. reporting requirements) (&#8220;Dual Reporting Approval&#8221;), ordinary shares and/or a Debenture for a purchase price of $1&#160;million, and a warrant (the &#8220;Alpha Warrant&#8221;) to purchase 49,607,407 ordinary shares represented by 992,148 ADSs exercisable for a period of five years from the date of issuance at an exercise price of the US dollar equivalent of NIS 36.14379 per ADS (calculated in accordance with the known representative rate of exchange on the date of the notice of exercise).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On October&#160;26, 2017, upon the completion of the first closing, the Company issued to Alpha 7,280,000 ordinary shares and a Debenture in the principal amount of $1,375,144, for gross proceeds of $2,000,000. On December 31, 2017, upon completion of the second closing, the Company issued a Debenture in the principal amount of $2,000,000 for gross proceeds of $2,000,000. The Debentures were convertible at any time at the option of the holder into ADSs at a conversion price of the US dollar equivalent of NIS 15.3897 (calculated in accordance with the rate of exchange of NIS 3.586 per $1.00) per ADS. In addition, the Debenture was mandatorily convertible at the then effective conversion price without regard to any beneficial ownership limitation if (i)&#160;the ADSs or the Company&#8217;s ordinary shares are approved for listing on the Nasdaq stock market, and (ii)&#160;certain equity conditions are met, and provided that the holder may elect to convert the Debenture in whole or in part to a pre-paid warrant to purchase such number of ADSs otherwise issuable upon mandatory conversion of the Debenture. On January 31, 2018, Debentures in the aggregate principal amount of $3,375,144 were automatically converted into a pre-paid warrant to purchase 39,322,742 ordinary shares represented by 786,455 ADSs.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On April 30, 2018, the Company completed the third closing of the Alpha Purchase Agreement, which resulted in the issuance to Alpha of a pre-paid warrant to purchase 9,921,482 ordinary shares represented by 198,430 ADSs and the Alpha Warrant to purchase up to 49,607,407 ordinary shares represented by 992,149 ADSs, at an exercise price of NIS 36.14 per ADS ($10.28 per ADS), for gross proceeds of $1 million. As the Alpha Warrant includes&#160;an anti-dilution protection and other rights, they are classified as financial liabilities measured at fair value through profit or loss at each reporting period.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In 2018, Alpha converted a pre-paid warrant to purchase 8,250,000 ordinary shares into 8,250,000 ordinary shares represented by 165,000 ADSs.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As part of the first and second closings, and included within the ordinary shares and Debentures issued at the first and second closings, the Company issued an aggregate of 1,080,503 ordinary shares and Debentures convertible into 5,836,313 ordinary shares in connection with services Alpha provided to the Company. These issuances, having a fair market value of NIS 3.0 million, were accounted as share based compensation. NIS 1.5 million was recognized as an expense within &#8220;general, administrative and marketing expenses&#8221; in the statements of comprehensive loss in 2017 and 2018, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Under the Alpha Purchase Agreement, Alpha was also granted certain rights, including, among other things, anti-dilution protection until October 26, 2019 in the event of certain subsequent equity issuances at a price that is lower than the then applicable per ordinary share purchase price. This right is accounted for as a derivative liability. Accordingly, it is presented as a component of non-current liabilities and is measured at fair value each reporting period and presented in the statements of financial position within non-current liabilities, see Note 2R.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Warrants are initially recognized at fair value adjusted to defer the difference between the fair value at initial recognition and the transaction price (&#8220;Day 1 Loss&#8221;), as the Company uses valuation techniques that incorporate data not obtained from observable markets.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As for the accounting treatment of the Day 1 Loss - see Note 2R.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The financial instruments recognized on the Company&#8217;s statements of financial position as of December 31, 2017 and 2018, are as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">1) Derivatives &#8211; comprised of an anti-dilution protection on 37,320,978 and 27,399,497 ordinary shares as of December 31, 2018 and 2017, respectively. The derivative is presented in the Company&#8217;s balance sheets on a fair value basis in the amount of NIS 363,186 and 140,875 as of December 31, 2018 and 2017, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The derivative fair value is determined by using a put option Model.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the models as of December 31, 2017:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Alpha</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Meitav Dash and Ami Sagi*</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">Probability</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">5</td> <td style="width: 16px; text-align: left;">%</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">5</td> <td style="width: 15px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">64.35</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">65.64</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.185</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.187</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the models as of December 31, 2018:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Alpha</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Meitav Dash and Ami Sagi*</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">Probability</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">5</td> <td style="width: 16px; text-align: left;">%</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">5</td> <td style="width: 15px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">57.33</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">53.31</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.47</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.55</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.82</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.99</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">See Note 14(A)(10) and (11)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">2) Warrants - to purchase up to 49,607,407 ordinary shares and include an anti-dilution protection right and other rights as of December 31, 2018. The warrants are presented in the Company&#8217;s statement of financial position at fair value basis in the amount of NIS 2,434 thousand, net of unrecognized Day 1 Loss in the amount of NIS 2,302 thousands, see note 4.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The warrants fair value is determined by using the B&amp;S model.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the model as of December 31, 2018:&#160;&#160;&#160;&#160;&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Warrants</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px;">Fair value of Warrant&#8211; NIS</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">0.0955</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">63.79</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.47</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4.33</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected dividend yield</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0</td> <td style="text-align: left;">%</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">3) Debentures - convertible debentures which are convertible into 39,322,742 prepaid warrants and contain an anti-dilution protection right and other rights as of December 31, 2017. The Debentures are presented in the Company&#8217;s statement of financial position at fair value basis in the amount of NIS 12,639 thousand, net of unrecognized Day 1 Loss in the amount of NIS 1,376 thousand.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Debentures&#8217; fair value is determined by using an Asian put option model.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the models as of December 31, 2017:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">First<br />closing</td> <td style="font-weight: bold;">&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">Second closing</td> <td style="font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debenture</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debenture</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">Fair value of shares of common stock - NIS</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">0.43</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">0.43</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">64.56</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">61.29</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Discount on lack of marketability</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">20.4</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">20.2</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.17</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.19</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.82</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected dividend yield</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0</td> <td style="text-align: left;">%</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 13&#8212;COMMITMENTS AND CONTINGENT LIABILITIES</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Agreements:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Operating lease agreements:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A)</font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">On November 15, 2018, the Company signed a new lease agreement for the Company&#8217;s new offices located in Rehovot. The lease is for five years and five months in return for a monthly payment of NIS 89 thousand, with an option to extend for five additional years. In addition, as part of the lease agreement the Company will not carry the rent monthly payment during the first five months of the lease agreement and will be reimbursed for its building adjustments costs in the amount of NIS 2,500 thousand.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">As collateral for the lease agreement, a restricted deposit was pledged in favor of the property owner. The balance of the restricted deposit as of December&#160;31, 2018 amounts to NIS 580&#160;thousand. The deposit is classified as a non-current asset.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">&#160;</p> </td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">B)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In 2017, an agreement was signed to extend the lease of the Company&#8217;s offices, which commenced in June 2008. The lease term ended on August&#160;18, 2018, and the Company signed an amendment to extend the lease until March 31, 2019. The monthly rent amounts to NIS 54&#160;thousand.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As collateral for the lease agreement, a restricted deposit was pledged in favor of the property owner. The balance of the restricted deposit as of December&#160;31, 2018 amounts to NIS 544&#160;thousand. The deposit is classified as current asset.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">C)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In April 2007, the Company signed an agreement with a third party for lease of land in Yessod Hamaala. The lease term ended on April&#160;30, 2017. On July&#160;4, 2017, the Company signed a new agreement for four years with an option for extension of another 6&#160;years. The lease term began on May&#160;1, 2017. The annual rent amount is NIS 120&#160;thousand.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">D)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On July&#160;28, 2016, the Company signed a lease agreement for additional space designated for its development and production activities. The lease is for three years with an option to extend for four additional years, in return for a monthly payment of NIS 30&#160;thousand. In addition, as part of the lease agreement, the Company acquired equipment and clean rooms for the Company&#8217;s operations for NIS 1,849&#160;thousand. Out of the aforementioned total consideration an amount of NIS 1,197 thousand was paid by issuing 1,067,916 ordinary shares of the Company and a total of NIS 525 thousand was on credit and will be repaid in cash over the term of the lease. The Company intends to exercise its first option to extend the lease period.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Commitment to pay royalties to the Government of Israel</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company is committed to pay royalties to the Government of Israel on proceeds from sales of products in the research and development of which the Government participates by way of grants through the IIA.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">At the time the grants were received, successful development of the related project was not assumed. In the case of failure of the project that was partly financed by the Government of Israel, the Company is not obligated to pay any such royalties. Under the terms of Company&#8217;s funding from the Israeli Government, royalties of 3%-3.5% are payable on sales of products developed from projects so funded up to 100% of the amount of the grant received by the Company (dollar linked) with the addition of an annual interest based on Libor.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The updated estimate of the Company as of December&#160;31, 2018 is that royalties will be paid to the IIA and that their present value is NIS 1,228&#160;thousand. This amount was recognized as a financial liability in the statement of financial position (NIS 1,185&#160;thousand within long-term liabilities, and the remainder within current liabilities). As of December&#160;31, 2018, the fair value of that liability is not materially different from its carrying amount. As of December&#160;31, 2018, the maximum royalty amount that would be payable by the Company, before additional Libor interest, is approximately NIS 31.8&#160;million (assuming 100% of the funds are payable).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">During 2018, grants amounting to NIS 2.2 million were received from the IIA. The participation of IIA in research and development expenses is presented net of expenses to pay royalties and remeasurement of the IIA liability and amounted to NIS 3.2 million.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Development agreements with pharmaceutical and orthobiologic companies</b>&#160;&#160;&#160;&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On November&#160;17, 2010, CollPlant&#160;Ltd. and Pfizer signed an agreement for joint development of prototype products for the treatment of orthopedic problems. The agreement provided for, among other things, the allocation of the rights of the project outcomes. In accordance with the agreement, Pfizer paid CollPlant immaterial amounts for the development of prototypes.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On December&#160;22, 2011, CollPlant and Pfizer signed another joint development agreement for development of a product for the orthopedic market (the &#8220;Development Agreement&#8221;). In accordance with the Development Agreement, the parties agreed to collaborate in the development of a product that contained Pfizer&#8217;s therapeutic proteins and compounds based on CollPlant&#8217;s recombinant human collagen (rhCollagen) (the &#8220;Product&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">To the best of the Company&#8217;s knowledge, based partially on public sources, in July 2013, Pfizer signed an agreement with Bioventus&#160;LLC, a U.S. based company (&#8220;Bioventus&#8221;), which specializes in orthobiologics, whereby Pfizer granted Bioventus an exclusive, global license for the portfolio of projects related to Pfizer&#8217;s bone morphogenetic protein (&#8220;BMP&#8221;). Between July 2013 and February 2017, the Company and Bioventus developed a bioactive implant for spinal fusion and orthopedic trauma, instead of under the Pfizer agreement, which expired during 2014.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On July&#160;9, 2015, the Company signed a non-binding term sheet with Bioventus. According to the term sheet, Bioventus agreed to make payments to the Company for the full development plan.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On March&#160;1, 2017, Bioventus informed the Company that it had decided to discontinue the joint development with CollPlant and to complete product development at a subsidiary of Bioventus.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>LICENSE DEVELOPMENT AND COMMERCIALIZATION AGREEMENTS</b>&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On October 19, 2018, CollPlant entered into the License Agreement with LB, a public benefit corporation and wholly-owned subsidiary of United Therapeutics Corporation, pursuant to which LB will be entitled to develop engineered lungs or lung substitutes using CollPlant&#8217;s rhCollagen and BioInk.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Pursuant to the License Agreement, CollPlant granted to LB and its affiliates, an exclusive, perpetual, royalty-bearing and transferable license of CollPlant&#8217;s technology relating to the production and use of rhCollagen and BioInk for the commercialization of engineered lungs or lung substitutes using 3D bioprinting processes throughout the universe.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Further, under the License Agreement, CollPlant granted to LB and its affiliates, a two-year option to extend the license to engineered organs or organ substitutes of up to three additional organs specified in the License Agreement (each an &#8220;Option Product&#8221; and together with lungs, the &#8220;Covered Products&#8221;). Further, at the end of the option period, LB and its affiliates shall have a one-year right of first refusal to receive an exclusive license under CollPlant&#8217;s technology relating to the production and use of rhCollagen and BioInk for the Option Products. Other than under the license Agreement, CollPlant has agreed not to conduct, enable or fund any research, development or commercialization, or grant any license, with respect to the Covered Products during the term of the License Agreement, unless with respect to any Option Product, the option is not exercised and the right of first refusal period expires.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The License Agreement provides that LB will purchase CollPlant&#8217;s BioInk on a non-exclusive basis for use in the development and manufacture of Covered Products and for up to the first two years of the License Agreement, CollPlant will supply LB with a specified limited quantity of BioInk without charge. The License Agreement further provides that following effectiveness, LB will build a facility, or engage a manufacturer to build a facility, in the U.S. for the manufacture of the Company&#8217;s rhCollagen and BioInk and the parties have agreed that LB has the option to purchase consulting services for the design of the facility.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The License Agreement provides for the payment of an upfront cash payment of $5 million to CollPlant, which was paid to CollPlant in November 2018 following effectiveness of the Agreement. In addition, the License Agreement provides for a one-time non-refundable option payments of $3 million per Option Product ($9 million in the aggregate), and up to $30 million of milestone payments payable as follows: (i) $5 million upon completion of the U.S. facility design, (ii) $5 million upon completion of production of a specified amount of BioInk, and (iii) $5 million for FDA marketing approval for each Covered Product (up to $20 million in the aggregate). Further, CollPlant shall be entitled to a fixed-fee royalty payment (subject to certain adjustment) for each product commercially sold during the term of the License Agreement, a fee for the supply of certain quantities of BioInk to LB, and reimbursement for certain costs related to the U.S. facility and any payment made by CollPlant to the IIA.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Unless earlier terminated, the License Agreement will continue in effect on a Covered Product-by-Covered Product and country-by-country basis until the later of (i) the expiration, invalidation or abandonment of the last CollPlant patent covering a Covered Product in a particular country, and (ii) 12 years from the first commercial sale of such Covered Product in such country. Following expiration (unless earlier terminated), the licenses granted to LB in the License Agreement will continue on a fully paid-up, irrevocable basis. The License Agreement may be terminated early by either party for material breach or bankruptcy. In addition, CollPlant may terminate the License Agreement in the case of a challenge made by LB, its affiliates or sub-licensees with respect to a CollPlant patent covering a Covered Product or if LB and its affiliates and sub-licensees discontinue development and commercialization of all Covered Products for at least one year. LB may terminate the License Agreement at any time upon 30 days&#8217; written notice with respect to the entirety of the License Agreement and upon 30 days&#8217; written notice with respect to its license and other rights under the License Agreement relating to one or more CollPlant patents, on a patent by- patent and country-by-country basis.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>D.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Contingent liability</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On September&#160;6, 2017, the Company received a VAT assessment from the Israel Tax Authority according to which the Company is required to pay tax in the amount of NIS 1.5&#160;million (including linkage differentials and interest) for the years 2012-2016. The Company disputed the position of the Israel Tax Authority resulting in the latter to increase its VAT assessment and require the Company to pay tax in the amount of NIS 1.8 million (including linkage differentials and interest) for the abovementioned period. The Company has appealed the entire assessment to the District Court, in view of its position that it is not liable for the entire tax requirement. A preliminary hearing in the District Court in Lod is scheduled for May 2019. The Company&#8217;s position relies, among other things, on an agreement signed between the Company and the Israel Tax Authority in 2011, which allows the Company to deduct VAT as stated. It is management&#8217;s view that its financial statements include an adequate provision in respect of the above.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 14&#8212;EQUITY</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Ordinary shares and warrants</b>:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Composition</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Number of shares</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Registered</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Issued and paid up</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 815px; padding-bottom: 4pt;">Ordinary shares of par value NIS 0.03</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">750,000,000</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">500,000,000</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">190,735,668</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">166,816,328</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Amount in NIS</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Registered</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Issued and paid up</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 815px; padding-bottom: 4pt;">Ordinary shares of par value NIS 0.03</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">22,500,000</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,000,000</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,722,070</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,004,490</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Traded on NASDAQ as of January 31, 2018.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">On January 31, 2018 the Company&#8217;s ADSs commenced trading on the Nasdaq Capital Market, under the symbol CLGN. Each ADS represents 50 ordinary shares.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">On October 29, 2018, the Company&#8217;s ordinary shares delisted from the Tel Aviv Stock Exchange (&#8220;TASE&#8221;). See note 14A(15).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The above table does not include 920,461 shares held by the Company. These shares are considered to be dormant.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The ordinary shares confer on their holders the right to vote and participate in shareholder meetings (with one vote for each share), the right to receive profits and the right to participate in surplus assets on liquidation of the Company.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">In 2016, Series&#160;F and J warrants expired without exercise.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">In 2018, Series G and H warrants expired without exercise.</p> </td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>4)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On February&#160;2, 2016, the Company completed a capital raise of NIS 8.2&#160;million in gross proceeds to two institutional investors and to the public (the issuance expenses amounted to NIS 643&#160;thousand). In consideration, the Company issued 5,745,903 ordinary shares, 12,930,505 Series&#160;I warrants exercisable into 4,310,168 ordinary shares at an exercise price of NIS 0.80 per warrant, for three years, and 8,618,855 Series&#160;J warrants exercisable into 2,872,952 ordinary shares at an exercise price of NIS 0.575 per warrant, exercisable until July&#160;31, 2016. In addition, under the terms of the broker agreement, the Company issued to the Israeli broker 814,520 Series&#160;I warrants exercisable into 271,507 ordinary shares at an exercise price of NIS 0.80 per warrant, for three years. On July&#160;31, 2016, 8,618,855 Series&#160;J warrants expired.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>5)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On June&#160;9, 2016, the Company completed a capital raise of NIS 11.8&#160;million in gross proceeds by way of a non-uniform offering to institutional investors and a uniform offer to the public (the issuance expenses amounted to NIS 684&#160;thousand). In consideration, the Company issued 11,267,833 ordinary shares and 33,803,500 Series&#160;K warrants exercisable into 11,267,833 ordinary shares at an exercise price of NIS 0.60 per warrant, for three years. In addition, in consideration, the Company issued to the broker under the terms of the broker agreement, 2,728,000 Series&#160;K warrants exercisable into 909,333 ordinary shares at an exercise price of NIS 0.60 per warrant, for three years.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>6)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On July&#160;28, 2016, as part of the lease agreement described in note&#160;13A(1)(D), the Company acquired equipment and clean rooms for the Company&#8217;s operations for NIS 1,849&#160;thousand (present value). Of this amount, NIS 1,197&#160;thousand was paid by issuing 1,067,916 ordinary shares and a total of NIS 525&#160;thousand was a credit that will be repaid in cash over the term of the lease.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>7)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On November&#160;17, 2016, the general meeting of shareholders approved a reverse share split of the Company&#8217;s shares that was effected on November&#160;20, 2016. Pursuant to the reverse split each 3 ordinary shares of NIS 0.01 par value were converted into one share of NIS 0.03 par value of the Company.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Additionally, according to the share option plan of the Company, every 3 unlisted options that were allocated through private offers to directors, employees, consultants and officers under the option plan are exercisable into one ordinary share of the Company of NIS 0.03 par value. No change took place in the exercise price of the options, as above; however, the total exercise price for one share of NIS 0.03 par value will be the former exercise price for one share of NIS 0.01 par value multiplied by 3.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Further, according to the terms and conditions of the marketable warrants of the Company, each 3 marketable warrants that the Company issued are exercisable into one ordinary share of the Company of NIS 0.03 par value. There will be no change in the exercise price of those warrants; however, the total exercise price for one share of NIS 0.03 par value will be the former exercise price for one share of NIS 0.01 par value multiplied by 3.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Following the reverse split, the Company retrospectively reflected the change in the share capital of the Company for all periods presented. Unless otherwise indicated, all of the share numbers, losses per share, share prices, options and warrants in these financial statements have been adjusted, on a retroactive basis, to reflect this 1 to 3 reverse share split.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b><br /></b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>8)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On February&#160;12, 2017, the Company completed a capital raise of NIS 7.2&#160;million in gross proceeds from institutional investors and from the public (the issuance expenses amounted to NIS&#160;404&#160;thousand). In consideration, the Company issued 21,152,000 ordinary shares and 10,576,000 Series&#160;L warrants exercisable into 10,576,000 ordinary shares at an exercise price of NIS 0.36 per warrant, until June&#160;13, 2017. In addition, under the terms of the broker agreement, the Company issued to the broker 941,400 Series&#160;L warrants exercisable into 941,400 ordinary shares at an exercise price of NIS 0.36 per warrant.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>9)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the second quarter of 2017, 10,055,464 Series&#160;L warrants were exercised into 10,055,464 ordinary shares, at an exercise price of NIS 0.36 for each warrant. The total consideration amounted to NIS 3,618&#160;thousand. 1,461,936 Series&#160;L warrants that were not exercised expired on June&#160;14, 2017.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>10)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On November&#160;8, 2017, the Company signed a securities purchase agreement (the &#8220;Meitav Dash Purchase Agreement&#8221;) with Meitav Dash, a company held by Meitav Dash&#160;Ltd., one of the Company&#8217;s shareholders pursuant to which the Company agreed, upon the terms and subject to the conditions of the Meitav Dash Purchase Agreement, to issue to Meitav Dash in a private placement certain securities in three tranches as follows: (i)&#160;at the first closing, which was completed on December 26, 2017, 9,500,000 ordinary shares, for a purchase price of NIS 3.8&#160;million, (ii)&#160;at the second closing, which was completed on December 26, 2017, 2,400,000 ordinary shares for a purchase price of NIS 960&#160;thousand provided that Meitav Dash shall not be obligated to buy or hold, immediately following the second closing, 20% or more of the Company&#8217;s share capital, and (iii)&#160;at the third closing, which was completed on March 7, 2018 and which was subject, among other things, to the listing of the Company&#8217;s ADSs for trading on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable into 11,900,000 ordinary shares.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company completed the first and second closings on December&#160;26, 2017 which resulted in the issuance to Meitav Dash of an aggregate of 11,900,000 ordinary shares for gross proceeds of NIS&#160;4,760,000 ($1,384,824) and on March 7, 2018, the Company completed the third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 11,900,000 ordinary shares.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The warrant may be exercised for a period of five years from issuance at an exercise price of the US dollar equivalent of NIS 40 per ADS (calculated in accordance with the known representative rate of exchange on the date of the notice of exercise).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Under the Meitav Dash Purchase Agreement, Meitav Dash was also granted certain rights, including, among others, anti-dilution protection in the event of certain subsequent equity issuances at a price that is lower than the then applicable per ordinary share purchase price. This component is accounted for derivatives and presented in the statements of financial position within non-current liabilities, see Note 2R and Note 12.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b><br /></b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>11)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On November&#160;9, 2017, the Company signed a securities purchase agreement (the &#8220;Sagy Purchase Agreement&#8221;) with Ami Sagy, one of the Company&#8217;s shareholders, pursuant to which the Company agreed, upon the terms and subject to the conditions of the Sagy Purchase Agreement, to issue to Ami Sagy in a private placement certain securities in two tranches as follows: (i)&#160;at the first closing, which closed on December 26, 2017, 9,300,000 ordinary shares, for a purchase price of NIS 3.7&#160;million, and (ii)&#160;at the second closing, which closed on March 7, 2018 and which was subject, among other things, to the listing of the Company&#8217;s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration, the Company will issue warrants exercisable into 9,300,000 of its ordinary shares.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company completed the first closing on December&#160;26, 2017 which resulted in the issuance to Ami Sagy of an aggregate of 9,300,000 ordinary shares for gross proceeds of NIS&#160;3,720,000 ($1,054,122) and on March 7, 2018, the Company completed the second closing which resulted in the issuance to Ami Sagy of a warrant to purchase 9,300,000 ordinary shares.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The warrant may be exercised for a period of five years from issuance at an exercise price of the US dollar equivalent of NIS 40 per ADS (calculated in accordance with the known representative rate of exchange on the date of the notice of exercise).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Under the Sagy Purchase Agreement, Ami Sagy was also granted certain rights, including, among other things, anti-dilution protection in the event of certain subsequent equity issuances at a price that is lower than the then applicable per ordinary share purchase price. This component is accounted for derivatives and presented in the statements of financial position within non-current liabilities, see Note 2R.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>12)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On September 6, 2017, the Company signed a securities purchase agreement with Alpha, see note 12.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>13)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On January&#160;18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 4,344,340 ordinary shares for an aggregate of NIS 2.2 million to the following three investors as follows: (i)&#160;Alpha entered into a Security Purchase Agreement for the purchase of 1,275,340 ordinary shares for NIS 638 thousand; (ii)&#160;Ami Sagi entered into a Security Purchase Agreement for the purchase of 2,046,000 ordinary shares for NIS 1 million; and (iii)&#160;Docor International&#160;BV entered into a Security Purchase Agreement for the purchase of 1,023,000 ordinary shares for NIS 511 thousand. Closing occurred on January&#160;25, 2018.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>14)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On March 1, 2018, an extraordinary general meeting of the shareholders of the Company, approved the increase of the authorized share capital of the Company by 250,000,000 ordinary shares to 750,000,000 ordinary shares, par value NIS 0.03 per share.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>15)</b></font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On March 20, 2018 the board of directors resolved to delist all of Company&#8217;s securities from trading on the TASE. In accordance with the Israeli Securities Law and the rules of the TASE, as the Company had four different series of warrants traded on the TASE, in order to effectuate the resolution, the Company was required to enter into an arrangement between the Company, shareholders and the holders of warrants, pursuant to Section 350 of the Israeli Companies Law.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On April 16, 2018, the Company petitioned the District Court of Lod, Israel, or the Court, to approve the convening of a shareholders&#8217; meeting and meetings of holders of Series I Warrants and Series K Warrants, in order to approve an arrangement for the delisting of all of Company securities from TASE and the reduction of the exercise price of Series I and Series K Warrants to NIS 0.4 each (the &#8220;Arrangement&#8221;). The holders of Series G Warrants and Series H Warrants were not part to the Arrangement as such warrants expire before the expected date of the delisting of the Company&#8217;s securities from the TASE. On July 29 2018, the Court approved the Arrangement, following its approval by the different meetings of shareholders and holders of Series I and Series K Warrants. The last date of trading of the ordinary shares, Series I Warrants and Series K Warrants on the TASE was on October 29, 2018.</p> </td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>16)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On July 11, 2018, following the Company&#8217;s board of directors and shareholders&#8217; approval, the Company issued to Alpha a pre-paid warrant to purchase 1,060,000 ordinary shares represented by 21,200 ADSs,&#160;&#160;in connection with services Alpha provided to the Company. The issuance in fair market value of NIS 494 thousands was accounted as share based compensation and recognized as an expense within &#8220;general, administrative and marketing expenses&#8221; in the statements of comprehensive loss.&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>17)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On July 26, 2018,&#160;the Company&#160;entered into a Securities Purchase Agreement with an investor, pursuant to which the Company issued on July 31, 2018, in a private placement, 11,125,000 ordinary shares for an aggregate purchase price of NIS 4,561,250 (approximately $1.25 million).</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Share-based payment:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with an option plan for employees and consultants (the &#8220;Option Plan&#8221;), as amended from time to time, employees and consultants of the Company will be granted options, each exercisable into one ordinary share of the Company of NIS 0.03. The ordinary shares that will be issued in accordance with the Option Plan will have the same rights as the other ordinary shares of the Company, immediately subsequent to their issue. An option that is not exercised within 10&#160;years from the allotment date will expire, unless the board of directors extends its validity.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Grants to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section&#160;102 of the Israel Income Tax Ordinance. In accordance with the track selected by the Company and these provisions, the Company is not entitled to claim a tax deduction for the employee benefits.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">For those who are not employees of the Company, and for the Company&#8217;s controlling shareholders (as defined in the Income Tax Ordinance) options are granted in accordance with section&#160;3(I) of the Income Tax Ordinance.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On August&#160;22 2017, the general meeting of shareholders approved the grant of 486,000 options to one director, exercisable into 486,000 shares in two tranches. 221,000 options were granted without an exercise price and vested immediately on the grant date. The fair value of each of these latter options is NIS&#160;0.29 and is equal to the share price at the date of grant. The remaining 265,000 options are exercisable at an exercise price of NIS 0.33 per option. The options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter. The fair value of each option, at the grant date, calculated according to the Black and Scholes formula, amounted to NIS 0.13. This value is based on the following assumptions: expected dividend at a rate of 0%, expected volatility at a rate of 60.53%, risk-free interest rate of 2%, and 4&#160;years expected term. The fair value of the grant as calculated on the date of the shareholders&#8217; approval is NIS 99&#160;thousand.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On December, 2017, the board of directors approved the grant of an aggregate of 9,100,000 options to purchase 9,100,000 ordinary shares to certain officers and employees. Each of the foregoing options may be exercised at a price per option of NIS 0.58 and the options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The fair value of each option, at the grant date, calculated according to the Black and Scholes formula, amounted to NIS 0.23. This value is based on the following assumptions: expected dividend at a rate of 0%, expected volatility at a rate of 61.96%, risk-free interest rate of 2%, and 4&#160;years expected term. The fair value of the grant as calculated at the grant date was NIS 2,145&#160;thousand.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On January&#160;14, 2018,&#160;&#160;the Company&#8217;s shareholders approved&#160;(i) the grant of 3,750,000 options to purchase 3,750,000 ordinary shares to Yehiel Tal, the chief executive officer, (ii)&#160;the grant of 650,000 options to purchase 650,000 ordinary shares to Adi Goldin, a director and former chairman, (iii)&#160;the grant to each of the directors, Abraham Havron, David Tsur and Scott Burell, of 500,000 options to purchase 500,000 ordinary shares, (iv)&#160;the grant to each of Gili Hart, external director, and Elan Penn, external director, of 500,000 options to purchase 500,000 ordinary shares, and (v)&#160;the annual and attendance compensation to David Tsur, in accordance with the fixed amounts in accordance with the Companies Law. Following their approval, each of the foregoing options may be exercised at a price per option of NIS 0.58 and the options will vest over four years, in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The fair value of each option, at the grant date, calculated according to the Black and Scholes formula, amounted to NIS 0.29. This value is based on the following assumptions: expected dividend at a rate of 0%, expected volatility at a rate of 63%, risk-free interest rate of 2%, and 4&#160;years expected term. The fair value of the grant as calculated at the grant date was NIS 1,998&#160;thousand.</p> </td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>4)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On March 20, 2018, the board of directors approved the grant of an aggregate of 900,000 options to purchase 900,000 ordinary shares to one of the company&#8217;s officers. Each of the foregoing options may be exercised at a price per option of NIS 0.49 and the options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The fair value of each option, at the grant date, calculated according to the Black and Scholes formula, amounted to NIS 0.19. This value is based on the following assumptions: expected dividend at a rate of 0%, expected volatility at a rate of 62.87%, risk-free interest rate of 2%, and 4&#160;years expected term. The fair value of the grant as calculated at the grant date was NIS 170&#160;thousand.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>5)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On May 1, 2018, the board of directors approved the grant of an aggregate of 250,000 options to purchase 250,000 ordinary at an exercise price of NIS 0.44 per option to a member of the scientific advisory board.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>6)</b></font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On September 10, 2018, the Company signed a one year service agreement with a service provider according to which in return to its services the Company will pay a monthly retainer and issue a total of 12,000 restricted ADSs (600,000 ordinary shares) in 3 tranches of 4,000 ADSs (200,000 ordinary shares) each: (i) following the execution of the agreement, (ii) Febuary 1, 2019, (iii) June 1, 2019. If the agreement is canceled prior to the issuance date the share balance is not owed.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The first tranche was completed on December 19, 2018.</p> </td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>Exercise of options</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>7)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On August&#160;15, 2016, 3,620,885 options were exercised for 235,413 ordinary shares of the Company. No cash was received for the exercise.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Changes in number of options and weighted average exercise prices in NIS are as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 425.67px; text-align: left; text-indent: -10pt; padding-left: 10pt;">Outstanding at the beginning of the year</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">45,532,659</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">0.59</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">32,888,472</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">0.65</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">40,644,792</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">0.63</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: -10pt; padding-left: 10pt;">Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">9,586,000</td> <td style="text-align: left;">*</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.56</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">8,050,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.57</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: -10pt; padding-left: 10pt;">Expired</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(4,076,167</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.6</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(1,065,305</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.58-1.39</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(375,000</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.6</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: -10pt; padding-left: 10pt;">Forfeited</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(4,947,135</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.35</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(764,375</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.6</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(1,450,000</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.44-0.6</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Exercised</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,620,885</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">0.26</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Outstanding at the end of the year</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,888,472</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.65</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">40,644,792</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.63</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">46,869,792</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.63</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Exercisable at the end of the year</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,350,118</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.56</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">20,922,506</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.57</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">27,936,172</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.57</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Not including options to Directors and CEO which were subject to shareholder approval.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following is information about the exercise price and remaining contractual life of outstanding options:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average of the remaining contractual life</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average of the remaining contractual life</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options at the end of the year</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average&#160;of&#160;the remaining contractual life</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 14px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 148px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,888,472</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 137px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: nowrap;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.26 - 1.39</font></td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 137px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.72</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">40,644,792</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: nowrap;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.26 - 1.39</font></td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.78</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 139px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">46,869,792</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;&#160;0-1.39</font></td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 40px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 40px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5.81</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The expenses recognized in the Company&#8217;s statements of comprehensive loss in 2016, 2017 and 2018 for options granted to employees and consultants amounted to NIS 3,572&#160;thousand, NIS 1,910&#160;thousand and NIS 3,113 thousand, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The total unrecognized compensation cost of stock options at December 31, 2018 is approximately NIS 2.0 million. The unrecognized compensation cost of employee stock options is expected to be recognized over 4 years.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 15&#8212;REVENUES</b>&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenues:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 2.1pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left;">Revenues from the sales of goods</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">1,668</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">2,657</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Revenues from the rendering of services</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">682</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Revenues from licensing agreement (see Note 2N)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">14,695</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,668</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">18,034</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 13.33px/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.5in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenues by geographical area (based on the location of customers):</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 2.1pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left;">United states and Canada</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">802</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">17,511</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1.5pt;">Europe</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">866</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">523</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,668</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">18,034</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Major customers</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Set forth below is a breakdown of the Company&#8217;s revenue by major customers (major customer &#8211;revenues from these customers constitute at least 10% of total revenues in a certain year):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left; padding-bottom: 4pt;">Customer A</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">688</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,375</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Customer B</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">521</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Customer C</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">295</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Customer D</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,816</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>D.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>The changes in contract liability relating to goods that were not yet delivered are as follows:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Balance as of January 1, 2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1379px; text-align: left;">Contract liability recognized due to LB agreement</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">7,346</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Revenue&#160;recognized during the period</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Balance as of December 31, 2018⁽¹⁾</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">7,309</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Contract liability presented in current liabilities</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,636</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 4pt;">Contract liability presented in non-current liabilities⁽²⁾</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,673</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(1)</td> <td style="text-align: justify;">Represents the unfulfilled performance obligation related to First BioInk.</td> </tr> </table> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(2)</td> <td style="text-align: justify;">As of December 31, 2018, non-current contract liabilities are estimated to be recognized in 2020.</td> </tr> </table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>NOTE 16&#8212;RESEARCH AND DEVELOPMENT EXPENSES, NET</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Payroll and related expenses</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">8,728</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">7,687</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">7,080</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Share-based payments</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,127</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,197</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,626</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Subcontractors and consultants</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">11,328</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,554</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,064</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Consumables and materials</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,806</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">698</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,112</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Depreciation and amortization</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">826</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,002</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">971</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Rent and maintenance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,963</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,700</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,805</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,422</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,083</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,555</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">29,200</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,921</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,213</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>Less:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Participation in R&amp;D expenses, See Note 13b</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(9,257</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(573</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">IIA participation in R&amp;D expenses, See Note&#160;13(a)(2)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,154</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,282</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,227</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(12,411</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,855</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,227</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">16,789</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,066</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">19,440</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>NOTE 17&#8212;GENERAL, ADMINISTRATIVE AND MARKETING EXPENSES</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Payroll and related expenses</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">2,822</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,926</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">4,142</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share-based payments&#160;⁽¹⁾</font></td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,445</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,243</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,514</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Directors&#8217; salary and insurance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">787</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">411</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">604</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Rent and office maintenance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">364</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">321</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">321</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Professional services</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,039</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,827</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,085</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>Depreciation</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">38</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">81</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">553</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">528</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">733</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">11,048</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,303</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,480</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">^&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0px;"></td><td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">⁽¹⁾</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share-based payments expenses for the year ended December 31, 2017 and 2018, include amount of NIS 1.5 million and NIS 494,000, respectively, due to fair value estimate of services received from Alpha.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>NOTE 18&#8212;FINANCING EXPENSES (INCOME), NET</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;">Financing expenses:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Financing expenses arising from liability to the IIA</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">129</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">273</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">138</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank and other fees</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">61</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">32</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">57</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Other financing expenses</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">75</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">30</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Exchange rate differences</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">251</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;">Total financing expenses</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">441</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">380</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">225</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; font-weight: bold;">Financing income:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Remeasurement of financial instruments</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">35</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">891</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Exchange rate differences</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(93</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">218</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">759</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;">Total financing income</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(93</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(253</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,650</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; font-weight: bold;">Financing expenses (income), net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">348</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">127</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,425</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 19&#8212;LOSS PER SHARE</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Basic loss per share is calculated by dividing the loss attributable to the Company&#8217;s shareholders by the weighted average number of ordinary shares issued. The calculation of the diluted loss per share did not take into account 47,944,792 options for employees and consultants, 13,745,025 Series&#160;I warrants, 36,531,500 Series&#160;K warrants, and 70,807,407 warrants, since their effect is anti-dilutive.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 20&#8212;TRANSACTIONS AND BALANCES WITH RELATED PARTIES</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s key management personnel include members of the executive management and board of directors, in accordance with the definition of Related Parties in IAS&#160;24.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Transactions with and benefits to related parties</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td>&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font><br /><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December&#160;31</b></font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td>&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2017</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2018</b></font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td>&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NIS in thousands</b></font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1050px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">CEO&#8217;s salary*</font></td> <td style="width: 16px;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 126px; text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,010</font></td> <td style="width: 16px;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 126px; text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,988</font></td> <td style="width: 15px;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 125px; text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,129</font></td> <td style="width: 15px;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 9pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share-based payments portion</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,066</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">455</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">793</font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: -9pt; padding-left: 9pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Remuneration of directors</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,214</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">613</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,057</font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 9pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share-based payments portion</font></td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">558</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">279</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">627</font></td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Number of directors</font></td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7</font></td> <td>&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Regarding benefits to other key management personnel&#8212;see C below.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In accordance with the CEO&#8217;s employment agreement, the CEO will be eligible for a bonus based on qualitative criteria and parameters determined by the Company, which will amount to a maximum of four salaries, plus a special bonus based on the fulfillment of additional conditions.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Balances with related parties:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1177.67px; text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">For salary, incidentals and other benefits, the balance is stated in other payables under current liabilities</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(577</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">)</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(180</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Benefits for key officers</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Compensation for the Deputy CEO &amp; CFO, VP Research and Development, COO, VP commercialization, Chief Scientist, and VP Quality Assurance, defined as key management personnel, for their services provided to the Company, is as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1003px; text-align: left;">Salary and other short-term benefits</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">3,917</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">4,119</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">4,503</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Share-based payments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,147</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,051</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,261</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,064</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,170</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,764</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 4pt;">Number of key managers</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7</td> <td style="text-align: left; padding-bottom: 4pt;">*</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 49.6pt; color: #000000; text-transform: none; text-indent: -49.6pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Includes cost of salary to two former executive officers who ended their tenure during 2018.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 21&#8212;SUBSEQUENT EVENTS</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2019 Series I warrants expired without exercise.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">On January 30, 2019, the Board of Directors appointed Jonathan M.N. Rigby as the new Chairman of the Board, effective immediately, and David&#160;Tsur&#160;stepped down from his position as Chairman and as a member of the Board.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">The Company and Mr. Rigby entered into a Chairman Services Agreement (the &#8220;Agreement&#8221;), the terms of which are subject to shareholder approval. Under the Agreement, Mr. Rigby shall be entitled to an annual fee of $70,000 plus VAT, to be paid on a monthly basis and options to purchase 12,319,500 ordinary shares (represented by 246,390 ADSs exercisable at $5.07 per ADS) exercisable at $0.101 per share. The options shall have a term of seven years and shall vest upon the earlier of (1) an equity raise of at least US$10 million, in one or more financings, or (2) will vest over a period of four years, with a quarter of the options vesting on January 31, 2020, and the remaining options vesting in equal parts at the end of every quarter thereafter.</p> </td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;">&#160;</td> <td> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">In addition, the Board of Directors approved, subject to shareholder approval the grant of (i) 9,050,000 options exercisable into total of 9,050,000 ordinary shares to the company&#8217;s officers, employees and consultants, and (ii) subject to shareholders approval, 2,000,000 options exercisable into a total of 2,000,000 ordinary shares to members of the board of directors, in the following manner: (i) 250,000 options exercisable into 250,000 ordinary shares, to each of Dr. Abraham Havron, Dr. Gili Hart, Dr. Elan Penn, Scott R. Burell and Adi Goldin; and (ii) 750,000 options exercisable into 750,000 ordinary shares to Dr. Wolfgang Ruttenstorfer.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; font-stretch: normal;">Each of the options may be exercised at a price per option of $0.101 per share. The options shall vest over a period of four years from their date of grant, with 25% of the options vesting on the first anniversary of the date of grant and the remaining options vesting equally on a quarterly basis during the three years thereafter.</p> </td> </tr> </table> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>A.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Basis of presentation of the financial statements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company&#8217;s financial statements as of December&#160;31, 2017 and 2018 and for each of the three years ended on December 31, 2018 comply with International Financial Reporting Standards (&#8220;IFRS&#8221;) and interpretations issued by the IFRS Interpretations Committee (&#8220;IFRS IC&#8221;) applicable to companies reporting under IFRS, as issued by the International Accounting Standard Board (&#8220;IASB&#8221;).</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The significant accounting policies described below have been applied consistently to all the years presented, unless otherwise stated.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The consolidated financial statements have been prepared on the basis of historical cost except for debentures and derivatives at fair value.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of financial statements that comply with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment when applying the Company&#8217;s accounting policies. Note&#160;3 provides disclosure of areas involving a considerable degree of judgment or complexity, or areas where assumptions and estimates have a material effect on the financial statements. Actual results may differ materially from the estimates and assumptions used by the Company&#8217;s management.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>B.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Consolidated financial statements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A subsidiary is an entity over which the Company has control. The Company controls an entity when the Company 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. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. The subsidiaries are deconsolidated from the date that control ceases.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>C.</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Translation of foreign currency balances and transactions:</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Functional currency and presentation currency</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Items included in the financial statements are measured using the currency of the primary economic environment in which the Company operates (&#8220;Functional Currency&#8221;). The financial statements are stated in NIS, which is the Functional Currency and presentation currency of the Company and its subsidiary.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Transactions and balances</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Transactions in currencies other than the functional currency (&#8220;Foreign Currencies&#8221;) are translated into the Functional Currency at exchange rates at the dates of transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in Foreign Currencies are recognized in the profit or loss for the year.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Gains and losses arising from changes in exchange rates are recognized in the statement of comprehensive loss under &#8220;Financing expenses (income), net&#8221;.</p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>D.</b></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Property and equipment</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All property and equipment (including leasehold improvements) are stated at historical cost less accumulated depreciation and impairment. Historical cost of an item of property and equipment includes:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 96px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discount and rebates.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 96px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Repairs and maintenance are charged to the statements of comprehensive loss during the period in which they are incurred.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The assets are depreciated using the straight-line method to allocate their cost over their estimated useful lives, as follows:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Years</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1365px; text-align: left;">Computer equipment</td><td style="width: 16px;">&#160;</td><td style="width: 170px; text-align: center;">3</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Greenhouse equipment*</td><td>&#160;</td><td style="text-align: center;">4 - 10</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Office furniture</td><td>&#160;</td><td style="text-align: center;">7 - 17</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Laboratory equipment</td><td>&#160;</td><td style="text-align: center;">4 - 5</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Leasehold improvements</td><td>&#160;</td><td style="text-align: center;">5</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>Vehicles</td><td>&#160;</td><td style="text-align: center;">4-7</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0px;"></td><td style="width: 0.25in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Greenhouse equipment&#8212;agricultural equipment used in the tobacco production greenhouse.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Leasehold improvements are depreciated over the lease period or the expected useful life of the improvements, whichever is shorter.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Impairment of the asset to its recoverable amount is recognized as incurred, if the carrying amount of the asset is greater than its estimated recoverable amount (see also section&#160;F below).</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1551px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gains or losses on disposals are determined by comparing net proceeds with the carrying amount. These are included in the statement of comprehensive loss.</font></td></tr></table></div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>E.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Intangible assets</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In process research and development (&#8220;IPR&amp;D&#8221;)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Acquired IPR&amp;D is presented based on the fair value at the date of the acquisition and up to December&#160;31, 2015 (see below), was not depreciated. Such asset was tested annually for impairment, see section&#160;F below. The assessment was carried out more frequently if there were indications of impairment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Up to December&#160;31, 2015, during the research and development period, this intangible asset was not amortized. Commencing 2016, the said asset is available for use and therefore is amortized on a straight-line basis until the end of the period of the patent for the know-how (approximately 10&#160;years).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">For information about impairment of non-monetary assets, see F below.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Software</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Acquired software licenses are capitalized on the basis of the cost incurred to acquire and implement the specific software. These costs are amortized on a straight-line basis over the estimated useful life of licenses (3&#160;years).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>3)</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development (&#8220;R&amp;D&#8221;)</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Research expenses are recognized as an expense as incurred. Costs incurred for development projects (referring to design and testing of new or improved products) are recognized as intangible assets when the following conditions exist:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">It is technically feasible to complete the intangible asset so that it will be available for use;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Management intends to complete the development of the intangible asset and to use or sell the asset;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The intangible asset can be used or sold;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">It can be demonstrated how the intangible asset will generate probable future economic benefits;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">There are adequate technical, financial and other resources to complete development and to use or sell the intangible asset;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#9679;</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The expenditure attributable to the intangible asset can be reliably measured during its development.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Other development costs that do not meet these criteria are recognized as an expense when incurred. Development costs previously recognized as an expense are not recognized as an asset in subsequent periods.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As of December&#160;31, 2018, the Company has not met the rules for capitalizing development costs as an intangible asset and accordingly, no asset whatsoever has been recognized in the financial statements for such costs.</p> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>F.</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Impairment of non-monetary assets</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Assets that have indefinite useful life are not subject to amortization and are tested annually (or when there are indicators for impairment-see below) for impairment.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">All non-monetary assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset&#8217;s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped together at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">For the years ended December&#160;31, 2016, 2017 and 2018, no impairment has been recognized.</p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>G.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Government grants</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Government grants, which are received from the Israel Innovation Authority (&#8220;IIA&#8221;) (formerly known as the Israeli Office of Chief Scientist or OCS) by way of participation in research and development that is conducted by the Company, fall within the scope of &#8220;forgivable loans,&#8221; as set forth in International Accounting Standard 20 &#8220;Accounting for Government Grants and Disclosure of Government Assistance&#8221; (&#8220;IAS&#160;20&#8221;).</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As approved by the IIA, the grants are received in installments as the program progresses. The Company recognizes each forgivable loan on a systematic basis at the same time the Company records, as an expense, the related research and development costs for which the grant is received, provided that there is reasonable assurance that: (a)&#160;the Company complies with the conditions attached to the grant, and (b)&#160;the grant will be received (usually upon receipt of approval notice). The amount of the forgivable loan is recognized based on the participation rate approved by the IIA; thus, a forgivable loan is recognized as a receivable when approved research and development costs have been incurred before grant funds are received.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">If at the time of grant approval there is reasonable assurance that the Company will comply with the forgivable loan conditions attached to the grant, and that the Company will not pay royalties to IIA, grant income is recorded against the related research and development expenses in the statements of comprehensive loss.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">If at the time of grant or in subsequent periods, it is not reasonably assured that royalties will not be paid to the IIA, the Company recognizes a liability that is measured based on the Company&#8217;s best estimate of the amount required to settle the Company&#8217;s obligation at the end of each reporting period.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>H.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Cash and cash equivalents</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash and cash equivalents include cash on hand and short-term bank deposits, and other short-term highly liquid investments with original maturities of three months or less.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>I.</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Inventory</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Inventory is measured at the lower of cost and net realizable value.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The cost of inventories is based on the first-in first-out (FIFO) principle. In the case of purchased goods and work in process, costs include design, raw materials, direct labor, other direct costs and fixed production overheads (based on the normal operating capacity of the production facilities).</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Net realizable value is the estimated selling price in the ordinary course of business, less variable attributable selling expenses.</p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>J.</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Share capital and other equity instruments</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company&#8217;s ordinary shares are classified as share capital. Incremental costs directly attributable to the issue of new shares or warrants are recognized in equity as a deduction of issue proceeds. Pre-paid warrants (that their exercise price was prepaid) that upon exercise will be converted into fixed amount of ordinary shares &#8211; are classified as equity instruments in the statements of financial position.</p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>K.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Trade payables</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Trade payables include the Company&#8217;s liabilities to pay for goods or services purchased from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if payment is due within one year, otherwise they are recognized as non-current liabilities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Trade payables are recognized initially at fair value and subsequently measured at amortized cost based on the effective interest method.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>L.</b></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Deferred taxes</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company recognizes deferred taxes based on the liability method, for temporary differences between the carrying amounts of assets and liabilities included in the consolidated financial statements and the amounts used for tax purposes. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. In addition, deferred taxes are not recognized if the temporary differences arise on initial recognition of an asset or a liability, other than in a business combination, which, at the time of the transaction, have no effect on profit or loss&#8212;whether for accounting or tax purposes. The amount of deferred taxes is determined in accordance with the tax rates (and tax laws) that have been enacted or substantively enacted as at the date of the statement of financial position and are expected to apply when the deferred tax assets will be realized or when the deferred tax liabilities will be settled.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Deferred tax assets are recognized for deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In the absence of a forecast of future taxable income, a deferred tax asset was not recognized in the Company&#8217;s financial statements.</p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>M.</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Employee benefits</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Liability for severance pay</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In accordance with labor laws and labor agreements in effect, the Company and its subsidiary are required to pay severance and pension benefits to employees who are dismissed or retire under certain circumstances.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The said liability to pay pension and severance pay is related to employees in Israel who are covered by Section&#160;14 of the Severance Pay Law, and is covered by regular contributions to defined contribution plans. The amounts contributed are not included in the statement of financial position.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vacation and recreation pay</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">By law, all employees are entitled to vacation and recreation pay, calculated on a monthly basis. The right is based on the employment period.</p></div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>N.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenue recognition</b>&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>General</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">As of January 1, 2018, the Company has applied IFRS 15 using the modified retrospective approach, in accordance with the transitional directive, which allows recognition of the cumulative effect of the initial application as an adjustment to the opening balance of equity of initial application.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The initial implementation of IFRS 15 did not have a material effect on the consolidated financial statements of the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">IFRS 15 introduces a five-step model for recognizing revenue from contracts with customers, as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Identifying the contract(s) with the customer.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Identifying the separate performance obligations in the contract.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(3)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Determining the transaction price.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(4)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Allocating the transaction price to separate performance obligations in the contract.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(5)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Recognizing revenue when (or as) each of the performance obligations is satisfied.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b>Revenue from the sale of goods</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Revenue from sale of goods is recognized in profit or loss at the point in time when the control of the goods is transferred to the customer, generally upon delivery of the goods to the customer. The goods are products based on the Company&#8217;s rhCollagen, and includes the BioInk product for the development of 3D bioprinting of organs and tissues and products for tendinopathy and wound healing.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b>Revenue from rendering of services</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenue from rendering of services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company&#8217;s performance. Under the Company&#8217;s service contracts, the Company has a right to consideration from the customer in an amount that corresponds directly with the value to the customer of the Company&#8217;s performance completed to date. Therefore, the Company utilizes the practical expedient in IFRS 15 and recognizes revenue in the amount to which the Company has a right to invoice.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;&#160;<b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><b><i>Revenues from licensing agreement</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;On October 19, 2018, the Company signed a License, Development and Commercialization Agreement (the &#8220;License Agreement&#8221;) with Lung Biotechnology PBC (&#8220;LB&#8221;), a public benefit corporation and wholly-owned subsidiary of United Therapeutics Corporation, pursuant to which LB will be entitled to develop engineered lungs or lung substitutes using CollPlant&#8217;s rhCollagen and BioInk (see also Note 13(c)).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">According to IFRS 15, a performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. Goods and services that are not distinct are bundled with other goods or services in the contract until a bundle of goods or services that is distinct is created. A good or service promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity&#8217;s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Options granted to the customer that do not provide a material right to the customer that it would not receive without entering into the contract do not give rise to performance obligations.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company has identified the following performance obligations in the License Agreement: (1) grant of the license and use of its IP (&#8220;License&#8221;); and (2) a limited quantity of BioInk to be supplied over a specific time frame (&#8220;First BioInk&#8221;). The License is distinct as the licensee is able to benefit from the license on its own at its current stage (inter alia, due to sublicensing rights, option services can be obtained from other experts in the field and not necessarily from the Company, etc.).&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">In addition, the Company has identified several options in the License Agreement. However, neither of the options provides a material right to the customer and therefore, neither of the said options give rise to a performance obligation. The said options are: (1) grant of two years option to extend the License to additional organs or organ substitutes (&#8220;Products Option&#8221;); (2) one-year right of first refusal to receive an exclusive license relating to the option products (&#8220;Right of First Refusal&#8221;); (3) option for the purchase of additional BioInk that may be supplied (&#8220;Additional BioInk&#8221;); and (4) option for the purchase of consulting services (&#8220;Consulting Services&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The transaction price included an up-front paid amount of $5.0 million and reimbursement for part of the costs related to the IIA in an amount of $1.0 million, as well as variable considerations contingent upon LB achieving certain milestones, sales-based royalties and additional reimbursement of costs related to payments made by CollPlant to the IIA (&#8220;Variable Consideration&#8221;).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">IFRS 15 defines the &#8216;Transaction Price&#8217; as the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to a customer. The Company allocates the transaction price to each performance obligation identified based on the standalone selling prices of the goods or services being provided to the customer. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer. When the stand-alone selling price is not directly observable by reference to similar transactions with similar customers, the Company applies suitable methods for estimating the stand-alone selling price.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">In addition, as stated above, Variable Consideration is included in the transaction price at its &#8220;most likely outcome&#8221; and only to the extent that it is highly probable that a significant reversal in the amount of revenue recognized will not occur when the uncertainty associated with the Variable Consideration is subsequently resolved.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">With respect to the Variable Consideration:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Sales-based royalties are not included in the transaction price. Rather, they are recognized as incurred, due to the specific exception of IFRS 15 for sales-based royalties in licensing of intellectual properties.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Variable Consideration is related to LB achieving certain milestones, including the related reimbursement of part of the IIA royalties. Since the Company estimates that the &#8220;most likely outcome&#8221; of these milestones would not be achieved, it is not included in the transaction price. The said Variable Consideration will be recognized only when the &#8220;most likely outcome&#8221; would be that milestones will be achieved and it would be highly probable that a significant reversal of revenues will not occur, usually only upon achievement of the specific milestone.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The following are the details of the allocation of the transaction price (which does not include the Variable Consideration) to the various performance obligations in the Agreement:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;">&#160;</td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The First BioInk was allocated with its stand-alone selling price, which is the observable price of the BioInk when the Company sells it separately.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The License was allocated with an estimated stand-alone selling price, based on the residual approach, since the Company has not yet established a price for that license and the license has not previously been sold on a stand-alone basis (i.e. the selling price is uncertain), as well as the related IIA royalties reimbursement.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The License performance obligation is considered a right to use IP in accordance with IFRS 15. Therefore, the transaction price allocated to it was recognized at a point in time, upon transfer of control over the License to LB.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The transaction price allocated to the First BioInk is recognized at the point in time when the control of the BioInk is transferred to LB, generally upon delivery of the BioInk to LB.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company considered whether the transaction price allocated to the First BioInk includes a financing component and concluded that the financing component is not material.</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>O.</b></font></td> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Share-based payment</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company has a share-based payment plan for employees and service providers, settled by the Company&#8217;s equity instruments, whereby the Company receives services from employees and service providers in exchange for the Company&#8217;s equity instruments (options or shares). The fair value of services received from employees and service providers in exchange for the equity instruments is recognized as an expense in the statements of comprehensive loss. With respect to options granted to employees the total amount recognized as an expense in statements of the comprehensive loss is based on the fair value of the options granted, without taking into account the effect of service conditions and non-market vesting conditions.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">With respect to options granted to service providers and suppliers, the fair value of the grant is determined in accordance with the fair value of the service or goods received.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Non-market vesting conditions are included in the assumptions used to estimate the number of options expected to vest. The total expense is recognized in the vesting period, which is the period for fulfillment of all the defined vesting terms of the share-based payment arrangement.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">At each reporting date, the Company adjusts its estimates of the number of options that are expected to vest, based on the non-market vesting conditions, and recognizes the effect of the change compared to original estimates, if any, in the statement of comprehensive loss, and a corresponding adjustment in equity.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">When exercising the options, the Company issues new shares, the proceeds, net of directly attributable transaction costs, are recognized in share capital (par value) and additional paid in capital.</p> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>P.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Segment reporting</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments. The Company operates in one operating segment.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Q.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Leases</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Lease agreements in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made in connection with operating leases are recognized in profit or loss using the straight-line basis over the term of the lease.</font></p></div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>R.</b></font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Financial instruments:</b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">As of January 1, 2018, the Company adopted IFRS 9 &#8220;Financial Instruments&#8221;.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The initial adoption of IFRS 9 did not have a material effect on the consolidated financial statements of the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(a)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial assets</font></td> </tr> <tr style="vertical-align: top;"> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Classification</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The financial assets of the Company are classified as financial assets at amortized cost. The classification is done on the basis of the Company&#8217;s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 122.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets at amortized cost are assets held within a business model whose objective is to hold assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets at amortized cost are included in current assets, except for those with maturities greater than 12 months after the statements of financial position date (for which they are classified as noncurrent assets).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 72.8pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets at amortized cost of the Company are included in trade receivables and other receivables in the Statements of Financial Position.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Recognition and measurement</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Regular purchases and sales of financial assets are recognized on the settlement date, which is the date on which the asset is delivered to the Company or delivered by the Company. Investments are initially recognized at fair value plus transaction costs for all financial assets not recorded at fair value through profit or loss, except for trade receivables, that are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial assets measured at fair value through profit or loss are initially recognized at fair value, related transaction costs are expensed to profit or loss. Financial assets are derecognized when the rights to receive cash flow from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Financial assets at fair value through profit or loss are subsequently recorded at fair value. Financial assets at amortized cost are measured in subsequent periods at amortized cost using the effective interest method.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.25in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Gains or losses arising from changes in the fair value of financial assets at fair value through profit or loss are presented in the Statement of Comprehensive Loss under &#8220;Financial Expenses (Income), net&#8221;.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As to methods for measurement of the Company&#8217;s financial instruments, see note 4.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 106.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 48px; text-align: justify;">&#160;</td> <td style="width: 48px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impairment</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">At each reporting date, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. If the financial instrument is determined to have low credit risk at the reporting date, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company measures the loss allowance for expected credit losses on trade receivables that are within the scope of IFRS 15 and on financial instruments for which the credit risk has increased significantly since initial recognition based on lifetime expected credit losses. Otherwise, the Company measures the loss allowance at an amount equal to 12-month expected credit losses at the current reporting date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Prior to the effective date and adoption of IFRS 9, the financial assets of the Company were classified into loans and receivables. The classification depended on the purpose for which the financial assets were acquired, also, prior to the adoption of IFRS 9, the Company assessed at December 31, 2017 whether there is any objective evidence that a financial asset or group of financial assets was impaired.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;<b>&#160;&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(b)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial liabilities</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 74.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">General</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 74.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are initially recognized at their fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are subsequently measured at amortized cost, except for derivative financial instruments, which are subsequently measured at fair value through profit or loss (see below).&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">Financial liabilities are classified as current liabilities if payment is due within one year or less, otherwise they are classified as non-current liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company&#8217;s financial liabilities at amortized cost are included in accounts payable, accrued liabilities and other and deferred revenues.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The derivative financial instruments represent warrants that confer the right to net share settlement.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">The Company removes a financial liability (or a part of a financial liability) from its statement of financial position when, and only when, it is extinguished (when the obligation specified in the contract is discharged, canceled or expired).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 96px;">&#160;</td> <td style="width: 24px; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(2)</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial liabilities at fair value through profit or loss.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Warrants, convertible debentures allotted to investors that contain an anti-dilution protection right and other rights, as well as anti-dilution derivative related to shares issued (see also Notes 12 and 14) are classified, in accordance with IAS 32 as &#8220;financial liabilities&#8221; since the number of shares that will be issued upon their settlement is not fixed. As the aforementioned liabilities are non-equity derivative financial instruments, they are measured, in accordance with IFRS 9, as financial liabilities at fair value through profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In accordance with IFRS 9, the Company elected to designate, upon initial recognition, the entire hybrid (combined) debenture (that includes the host debenture contract and the anti-dilution protection) and warrants as a financial liability at fair value through profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The said liabilities are measured at their fair value at each date of the balance sheet, with changes in their fair value recorded to &#8220;financial expenses (income), net&#8221; in the consolidated statements of comprehensive loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.3in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">For those liabilities for which, upon initial recognition, the transaction price is different than their fair value &#8211; the liability is initially recognized at fair value adjusted to defer the difference between the fair value at initial recognition and the transaction price (&#8220;Day 1 Loss&#8221;), as the Company uses valuation techniques that incorporate data not obtained from observable markets. After initial recognition, the unrecognized Day 1 Loss of the said liabilities is amortized on a straight line basis over the term that market participants would take into account when pricing the liability. Any unrecognized Day 1 Loss is immediately recognized in profit or loss if the fair value of the financial instrument in question can be determined either by using only market observable model inputs or by reference to a quoted price for the same product in an active market. Upon exercise of convertible debenture for which an unrecognized a Day 1 Loss exists, the carrying amount of the convertible debenture (which is presented net of the unrecognized Day 1 Loss) is reclassified to equity with no impact on profit or loss.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Transaction costs allocated to financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top; font: 10pt 'times new roman', times, serif;"><td style="width: 0.5in; text-align: justify; font: 10pt 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>S.</b></font></td><td style="text-align: justify; font: 10pt 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Loss per share</b></font></td></tr></table><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Basic loss per share is generally based on the distributable loss to ordinary shareholders, divided by the weighted average number of ordinary shares outstanding in the period, net of shares held by the Company.</font></p><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">When calculating diluted loss per share, the Company adjusts the loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares.</font></p><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px 0pt 0.5in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Potential shares are only taken into account if their effect is dilutive (reduces earnings per share or increases loss per share).</font></p> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>T.</b></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>New standards and interpretations that are not yet in effect and have not been early adopted by the Company:</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b>&#160;</b></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 48px;">&#160;</td><td style="width: 48px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>1)</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">IFRS&#160;16 &#8220;Leases&#8221; (&#8220;IFRS 16&#8221;)</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">IFRS 16 was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company has reviewed all of the Company&#8217;s arrangements that in effect in light of the new lease accounting rules in IFRS 16. The standard will affect primarily the accounting for the Company&#8217;s operating leases.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company expects to recognize lease liabilities and a right of use assets of approximately NIS 13.0 million on January 1, 2019.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company will apply the standard from its mandatory adoption date of January 1, 2019. The Company intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company expects that, based on the Company&#8217;s lease agreements as of December 31, 2018, net loss will increase by approximately NIS 956,000&#160;for 2019 as a result of adopting the new rules. Operating cash flows for 2019 will increase by approximately NIS 76,000, and financing cash flows will decrease by approximately NIS 882,000 as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities.</p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Years</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; text-align: left;">Computer equipment</td><td style="width: 16px;">&#160;</td><td style="width: 172px; text-align: center;">3</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Greenhouse equipment*</td><td>&#160;</td><td style="text-align: center;">4 - 10</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Office furniture</td><td>&#160;</td><td style="text-align: center;">7 - 17</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Laboratory equipment</td><td>&#160;</td><td style="text-align: center;">4 - 5</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Leasehold improvements</td><td>&#160;</td><td style="text-align: center;">5</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>Vehicles</td><td>&#160;</td><td style="text-align: center;">4-7</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0px;"></td><td style="width: 0.25in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Greenhouse equipment&#8212;agricultural equipment used in the tobacco production greenhouse.</font></td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold;" colspan="2">December&#160;31,</td><td style="font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px;">Fair value of convertible debentures</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">14,015</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Unrecognized Day 1 Loss</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,376</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;">Debentures, net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,639</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold;" colspan="2">December&#160;31,</td><td style="font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px;">Fair value of warrants</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">4,736</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Unrecognized Day 1 Loss</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,302</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;">Warrants, net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,434</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Opening balance as of January 1, 2017</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1379px;">Issuance</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">(14,190</td> <td style="width: 15px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Profit from changes in fair value of financial instruments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">34</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">Closing balance as of December 31, 2017</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(14,156</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.15pt; color: #000000; text-transform: none; text-indent: 15.85pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in&#160;thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1379px;">Opening balance as of January 1, 2018</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">(14,156</td> <td style="width: 15px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Issuance of Warrants</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(6,273</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Conversion of debentures to pre-paid warrants</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">13,740</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Profit from changes in fair value of financial instruments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,590</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">Closing balance as of December 31, 2018⁽¹⁾</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(5,099</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> </table> <p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(1)</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Represents $4,736 thousand warrants and $363 thousand anti-dilution derivatives.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS<br />in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Breakdown by currency:</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">NIS</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">9,654</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">9,437</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">In foreign currency (mainly U.S. dollars)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8,163</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">10,628</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">17,817</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">20,065</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;">Value added tax authorities</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">464</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">471</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Receivables from IIA</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,294</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">375</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Prepaid expenses</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,717</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">393</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">68</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">14</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,543</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,253</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 384.66px; text-align: left;">Computer equipment</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">662</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">40</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">702</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">569</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">54</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">623</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 66.66px; text-align: right;">79</td><td style="width: 10px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Office furniture</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">496</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">500</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">187</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">27</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">214</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">286</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Laboratory equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,183</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">284</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,467</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,726</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">400</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4,126</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,341</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Greenhouse equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#8212;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,459</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">254</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,713</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">269</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Leasehold improvements</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,043</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,842</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,885</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">813</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">39</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">852</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,033</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,366</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,170</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,536</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7,754</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">774</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,528</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,008</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Costs</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 384.66px; text-align: left;">Computer equipment</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">702</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">16</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">718</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">623</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">44</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">667</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 66.66px; text-align: right;">51</td><td style="width: 10px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Office furniture</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">500</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">501</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">214</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">27</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">241</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">260</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Laboratory equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,467</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">68</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,535</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4,126</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">420</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4,546</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">989</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Greenhouse equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#8212;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,713</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">207</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,920</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">62</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Leasehold improvements</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,885</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">362</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,247</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">852</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">175</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,027</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,220</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,536</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">447</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,983</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,528</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">873</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,401</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,582</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Costs</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount&#160;at<br />end<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 384.66px; text-align: left;">Computer equipment</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">718</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10.66px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 62.66px; text-align: right;">137</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">855</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">667</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">55</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 62px; text-align: right;">722</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10.66px; text-align: left;">&#160;</td><td style="width: 66.66px; text-align: right;">133</td><td style="width: 10px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Office furniture</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">501</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">509</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">241</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">27</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">268</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">241</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Laboratory equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,535</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">188</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,723</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4,546</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">410</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4,956</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">767</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Greenhouse equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,920</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">44</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,964</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">18</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Leasehold improvements</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,247</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,438</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,685</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,027</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">735</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,762</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,923</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">Vehicles</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">212</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">212</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">20</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">20</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">192</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,983</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,983</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,966</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,401</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,291</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,692</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,274</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated depreciation</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><b>Carrying<br />amount at<br />end</b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><b>of year</b></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Depreciated<br />balance as at<br />December&#160;31,<br />2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 439px;">Software</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">104</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">104</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">103</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">1</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">104</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">&#8212;</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">IPR&amp;D</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,631</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">103</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">90</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">193</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,631</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Costs</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Addition</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end of<br />&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Amortized<br />balance as at<br />December&#160;31,<br />2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 439px;">Software</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">104</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">104</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">104</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">&#8212;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">104</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">IPR&amp;D</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">89</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">177</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">266</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,454</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,824</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">193</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">177</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">370</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,454</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Costs</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Accumulated amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning<br />of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />beginning of&#160;year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Addition</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Carrying<br />amount at<br />end&#160;<br />of year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Amortized<br />balance as at<br />December&#160;31,<br />2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS&#160;in&#160;thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS<br />in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 439px; padding-bottom: 1.5pt;">IPR&amp;D</td><td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,720</td><td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 16px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">266</td><td style="width: 16px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">181</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">447</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,273</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,720</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,720</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">266</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">181</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">447</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,273</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;">A.&#160;&#160;&#160;&#160;Trade payables:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-left: 0.25in;">Breakdown by currency:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1151px; padding-left: 30pt;">NIS</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">1,923</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">1,656</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 30pt;">In foreign currency (mainly U.S. dollars)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">999</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">675</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,922</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,331</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; font-weight: bold;">B.&#160;&#160;&#160;&#160;Composition of other payables:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-left: 20pt;">Employees and institutions for employees</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,148</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,445</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-left: 20pt;">Provisions for vacation and others</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">658</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">734</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt; padding-left: 20pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">190</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">187</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,996</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,366</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the models as of December 31, 2017:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Alpha</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Meitav Dash and Ami Sagi*</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">Probability</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">5</td> <td style="width: 16px; text-align: left;">%</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">5</td> <td style="width: 15px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">64.35</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">65.64</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.185</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.187</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The following table presents the assumptions that were used for the models as of December 31, 2018:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Alpha</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Meitav Dash and Ami Sagi*</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px;">Probability</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">5</td> <td style="width: 16px; text-align: left;">%</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">5</td> <td style="width: 15px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">57.33</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">53.31</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.47</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.55</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Expected term (years)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.82</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.99</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td>&#160;</td><td style="font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold;" colspan="2">First<br />closing</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold;" colspan="2">Second closing</td><td style="font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debenture</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debenture</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px;">Fair value of shares of common stock - NIS</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">0.43</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.43</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Expected volatility</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">64.56</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">61.29</td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Discount on lack of marketability</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">20.4</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">20.2</td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Risk free interest rate</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.17</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.19</td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Expected term (years)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.82</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Expected dividend yield</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0</td><td style="text-align: left;">%</td></tr></table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px;">&#160;</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;">&#160;</td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Warrants</b></font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">Fair value of Warrant&#8211; NIS</td><td style="width: 16px; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="width: 16px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="width: 141px; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">0.0955</td><td style="width: 15px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">Expected volatility</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">63.79</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">Risk free interest rate</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">1.47</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">Expected term (years)</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">4.33</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">Expected dividend yield</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">0</td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px;">%</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Number of shares</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Registered</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Issued and paid up</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 650.4px; padding-bottom: 4pt;">Ordinary shares of par value NIS 0.03</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112.8px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">750,000,000</td><td style="width: 12.8px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112.8px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">500,000,000</td><td style="width: 12.8px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">190,735,668</td><td style="width: 12px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12px; padding-bottom: 4pt;">&#160;</td><td style="width: 12px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">166,816,328</td><td style="width: 12px; text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Amount in NIS</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Registered</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Issued and paid up</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 650.4px; padding-bottom: 4pt;">Ordinary shares of par value NIS 0.03</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112.8px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">22,500,000</td><td style="width: 12.8px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112.8px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,000,000</td><td style="width: 12.8px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; padding-bottom: 4pt;">&#160;</td><td style="width: 12.8px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,722,070</td><td style="width: 12px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 12px; padding-bottom: 4pt;">&#160;</td><td style="width: 12px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,004,490</td><td style="width: 12px; text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year ended<br />December&#160;31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">No. of<br />options</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />average of<br />exercise<br />price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 425.67px; text-align: left; text-indent: -10pt; padding-left: 10pt;">Outstanding at the beginning of the year</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">45,532,659</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">0.59</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">32,888,472</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.65</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">40,644,792</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.63</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: -10pt; padding-left: 10pt;">Granted</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#8212;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#8212;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9,586,000</td><td style="text-align: left;">*</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.56</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8,050,000</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.57</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: -10pt; padding-left: 10pt;">Expired</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(4,076,167</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.6</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(1,065,305</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.58-1.39</font></td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(375,000</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.6</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: -10pt; padding-left: 10pt;">Forfeited</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(4,947,135</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.35</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(764,375</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">0.6</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(1,450,000</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.44-0.6</font></td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Exercised</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,620,885</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">0.26</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#8212;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Outstanding at the end of the year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,888,472</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.65</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">40,644,792</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.63</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">46,869,792</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.63</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Exercisable at the end of the year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,350,118</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.56</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">20,922,506</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.57</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">27,936,172</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.57</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0px;"></td><td style="width: 0.25in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Not including options to Directors and CEO which were subject to shareholder approval.</font></td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">December&#160;31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average of the remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average of the remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number of outstanding options at the end of the year</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Exercise price range in NIS</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average&#160;of&#160;the remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 14px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 148px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,888,472</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 137px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: nowrap;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.26 - 1.39</font></td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 137px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.72</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">40,644,792</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: nowrap;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.26 - 1.39</font></td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.78</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 139px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">46,869,792</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 138px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;&#160;0-1.39</font></td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 40px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 40px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5.81</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 1in; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b></b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 2.1pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left;">Revenues from the sales of goods</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">1,668</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">2,657</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Revenues from the rendering of services</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">682</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Revenues from licensing agreement (see Note 2N)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">14,695</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,668</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">18,034</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; margin-top: 0px; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b></b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-indent: 2.1pt; font-stretch: normal;">&#160;</p> <div>&#160;</div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left;">United states and Canada</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">802</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">17,511</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1.5pt;">Europe</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">866</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">523</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">1,668</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">18,034</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; font-stretch: normal;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; font-stretch: normal;">&#160;</p> <div>&#160;</div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1191px; text-align: left; padding-bottom: 4pt;">Customer A</td> <td style="width: 16px; padding-bottom: 4pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">688</td> <td style="width: 16px; text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; padding-bottom: 4pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,375</td> <td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Customer B</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">521</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Customer C</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">295</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">Customer D</td> <td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">-</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</td> <td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">1,816</td> </tr> </table> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b></b></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">NIS&#160;in<br />thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Balance as of January 1, 2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1379px; text-align: left;">Contract liability recognized due to LB agreement</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">7,346</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1.5pt;">Revenue&#160;recognized during the period</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Balance as of December 31, 2018⁽¹⁾</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">7,309</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 4pt;">Contract liability presented in current liabilities</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,636</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 4pt;">Contract liability presented in non-current liabilities⁽²⁾</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,673</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(1)</td> <td style="text-align: justify;">Represents the unfulfilled performance obligation related to First BioInk.</td> </tr> </table> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="text-align: justify; vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 0.25in; text-align: left;">(2)</td> <td style="text-align: justify;">As of December 31, 2018, non-current contract liabilities are estimated to be recognized in 2020.</td> </tr> </table> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Payroll and related expenses</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">8,728</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">7,687</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">7,080</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Share-based payments</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,127</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,197</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,626</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Subcontractors and consultants</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">11,328</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,554</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,064</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Consumables and materials</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,806</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">698</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,112</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Depreciation and amortization</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">826</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,002</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">971</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Rent and maintenance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,963</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,700</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,805</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,422</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,083</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,555</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">29,200</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,921</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,213</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>Less:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Participation in R&amp;D expenses, See Note 13b</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(9,257</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(573</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">IIA participation in R&amp;D expenses, See Note&#160;13(a)(2)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,154</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,282</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,227</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(12,411</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,855</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,227</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">16,789</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,066</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">19,440</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Payroll and related expenses</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">2,822</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,926</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">4,142</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share-based payments&#160;⁽¹⁾</font></td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,445</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,243</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,514</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Directors&#8217; salary and insurance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">787</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">411</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">604</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Rent and office maintenance</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">364</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">321</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">321</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Professional services</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,039</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,827</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3,085</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>Depreciation</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">38</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">81</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt;">Other</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">553</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">528</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">733</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">11,048</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,303</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">12,480</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">^&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0px;"></td><td style="width: 0.25in; text-align: left;">⁽¹⁾</td><td style="text-align: justify;">Share-based payments expenses for the year ended December 31, 2017 and 2018, include amount of NIS 1.5 million and NIS 494,000, respectively, due to fair value estimate of services received from Alpha.</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;">Financing expenses:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">Financing expenses arising from liability to the IIA</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">129</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">273</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">138</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank and other fees</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">61</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">32</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">57</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Other financing expenses</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">75</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">30</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Exchange rate differences</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">251</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;">Total financing expenses</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">441</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">380</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">225</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; font-weight: bold;">Financing income:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;">Remeasurement of financial instruments</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">35</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">891</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;">Exchange rate differences</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(93</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">218</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">759</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;">Total financing income</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(93</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(253</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,650</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; font-weight: bold;">Financing expenses (income), net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">348</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">127</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,425</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left;">CEO&#8217;s salary*</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 142px; text-align: right;">2,010</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 16px;">&#160;</td><td style="width: 16px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">1,988</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,129</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-left: 9pt;">Share-based payments portion</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,066</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">455</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">793</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 9pt;">Remuneration of directors</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,214</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">613</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,057</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt;">Share-based payments portion</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">558</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">279</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">627</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;">Number of directors</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Regarding benefits to other key management personnel&#8212;see C below.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0px;"></td><td style="width: 0.25in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In accordance with the CEO&#8217;s employment agreement, the CEO will be eligible for a bonus based on qualitative criteria and parameters determined by the Company, which will amount to a maximum of four salaries, plus a special bonus based on the fulfillment of additional conditions.</font></td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">NIS in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">For salary, incidentals and other benefits, the balance is stated in other payables under current liabilities</td><td style="width: 16px; padding-bottom: 4pt;">&#160;</td><td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 142px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(577</td><td style="width: 16px; text-align: left; padding-bottom: 4pt;">)</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(180</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p></div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 0.5in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">Year ended<br />December&#160;31</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2018</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10">NIS in thousands</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1003px; text-align: left;">Salary and other short-term benefits</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 142px; text-align: right;">3,917</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">4,119</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 141px; text-align: right;">4,503</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1.5pt;">Share-based payments</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,147</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,051</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,261</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,064</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,170</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,764</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 4pt;">Number of key managers</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7</td> <td style="text-align: left; padding-bottom: 4pt;">*</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 49.6pt; color: #000000; text-transform: none; text-indent: -49.6pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0px;"></td> <td style="width: 24px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Includes cost of salary to two former executive officers who ended their tenure during 2018.</font></td> </tr> </table> 1000 3748 3 Years 3 Years P5Y 4 Years 10 Years 17 Years 4 Years 5 Years 7 Years 4 Years 7 Years P10Y0M0D The Company expects that, based on the Company's lease agreements as of December 31, 2018, net loss will increase by approximately NIS 956,000 for 2019 as a result of adopting the new rules. Operating cash flows for 2019 will increase by approximately NIS 76,000, and financing cash flows will decrease by approximately NIS 882,000 as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. 17100000 17100000 14015000 4736000 -1376000 -2302000 12639000 2434000 -14156000 -5099000 -14190000 -6273000 34000 1590000 The Company's Functional Currency had depreciated by 5% against the U.S. dollar. 350000000 596000000 464000 471000 1294000 375000 1717000 393000 68000 14000 662000 496000 5183000 1043000 569000 187000 3726000 2459000 813000 10366000 7754000 2982000 702000 500000 5467000 2885000 623000 214000 4126000 2713000 852000 12536000 8528000 2982000 718000 501000 5535000 3247000 667000 241000 4546000 2920000 1027000 12983000 9401000 2982000 855000 509000 5723000 5685000 722000 268000 4956000 2964000 1762000 15966000 10692000 2982000 212000 20000 40000 4000 284000 1842000 54000 27000 400000 254000 39000 2170000 774000 16000 1000 68000 362000 44000 27000 420000 207000 175000 447000 873000 137000 8000 188000 2438000 55000 27000 410000 44000 735000 2983000 1291000 212000 20000 1824000 103000 103000 104000 1720000 1824000 193000 104000 104000 1720000 89000 1720000 266000 104000 104000 1720000 266000 1720000 447000 1720000 447000 90000 1000 89000 177000 177000 181000 181000 1631000 1631000 1454000 1454000 1273000 1273000 0.25 0.25 0.265 0.24 0.23 The Law stipulates a further reduction in the rate of corporate tax, from 25% to 23%. However, the Law establishes a temporary order by which the corporate tax rate in 2017 will be 24%. As a result, the corporate tax rate applicable in 2017 was 24% and the corporate tax rate from 2018 onwards is 23%. 148000000 11100000 152000000 12600000 1558000 1378000 1627000 0.05 0.05 0.05 0.05 0.6053 0.6435 0.6564 0.6456 0.6129 0.6196 0.63 0.6287 0.5733 0.5331 0.6379 0.02 0.00185 0.00187 0.0017 0.0019 0.02 0.02 0.02 0.0047 0.0055 0.0147 P2Y P2Y P1Y9M25D P2Y P0Y9M25D P0Y11M26D P4Y3M29D 0.43 0.43 0.0955 0.204 0.202 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5745903 11267833 1067916 21152000 7280000 9500000 2400000 9300000 11900000 11900000 166816328 4344340 250000000 190735668 50 1375144 2000000 1000000 3375144 The Debentures were convertible at any time at the option of the holder into ADSs at a conversion price of the US dollar equivalent of NIS 15.3897 (calculated in accordance with the rate of exchange of NIS 3.586 per $1.00) per ADS. 2000000 1384824 4760000 1384824 4760000 1054122 3720000 49607407 1060000 1080503 5836313 11900000 9921482 49607407 49607407 9300000 39322742 8250000 4310168 2872952 271507 11267833 909333 10576000 941400 10055464 992148 11900000 9300000 9300000 198430 992149 786455 165000 0.80 0.575 0.80 0.60 0.60 0.36 0.36 0.36 0.33 36.14379 0.58 0.49 0.4 0.4 0.44 10.28 36.14 2000000 2000000 1000000 27399497 37320978 140875 363186 1376000 2302000 39322742 8250000 12639000 2434000 3000000 1500000 1500000 89000 2500000 August 18, 2018 The lease is for five years and five months in return for a monthly payment of NIS 89 thousand, with an option to extend for five additional years. 30000 54000 89000 580000 The Company signed an agreement with a third party for lease of land in Yessod Hamaala. The lease term ended on April 30, 2017. On July 4, 2017, the Company signed a new agreement for four years with an option for extension of another 6 years. The lease term began on May 1, 2017. The annual rent amount is NIS 120 thousand. The lease is for three years with an option to extend for four additional years, in return for a monthly payment of NIS 30 thousand. The United License Agreement provides for the payment of an upfront cash payment of $5 million to CollPlant, which was paid to CollPlant in November 2018 following effectiveness of the Agreement. In addition, the United License Agreement provides for a one-time non-refundable option payments of $3 million per Option Product ($9 million in the aggregate), and up to $30 million of milestone payments payable as follows: (i) $5 million upon completion of the U.S. facility design, (ii) $5 million upon completion of production of a specified amount of Bioink, and (iii) $5 million for FDA marketing approval for each Covered Product (up to $20 million in the aggregate). In addition, as part of the lease agreement the company will not carry the rent monthly payment during the first five months of the lease agreement and will be reimbursed for its building adjustments costs in the amount of NIS 2,500 thousand. 1849000 525000 Under the terms of Company's funding from the Israeli Government, royalties of 3%-3.5% are payable on sales of products developed from projects so funded up to 100% of the amount of the grant received by the Company (dollar linked) with the addition of an annual interest based on Libor. 3200000 31800000 2.2 1500000 1228000 1181000 1197000 1.00 1800000 544000 500000000 750000000 15000000 22500000 5004490 5722070 45532659 32888472 40644792 46869792 9586000 8050000 4076167 1065305 375000 4947135 764375 1450000 3620885 14350118 265000 20922506 27936172 0.59 0.65 0.63 0.63 0.56 0.57 0.6 0.58 1.39 0.6 0.35 0.6 0.6 0.44 0.26 0.56 0.57 0.57 0.26 1.39 0.26 1.39 0 1.39 P7Y8M19D P6Y9M11D P5Y9M22D 750000000 21200 920461 40 40 0.03 The ordinary shares confer on their holders the right to vote and participate in shareholder meetings (with one vote for each share), the right to receive profits and the right to participate in surplus assets on liquidation of the Company. 8200000 11800000 7200000 12930505 8618855 814520 33803500 2728000 10576000 941400 10055464 P3Y P3Y P3Y P3Y P5Y P5Y On July 31, 2016, 8,618,855 Series J warrants expired. Series L warrants that were not exercised expired on June 14, 2017. 1197000 3618000 1067916 1461936 Pursuant to the reverse split each 3 ordinary shares of NIS 0.01 par value were converted into one share of NIS 0.03 par value of the Company. Additionally, according to the share option plan of the Company, every 3 unlisted options that were allocated through private offers to directors, employees, consultants and officers under the option plan are exercisable into one ordinary share of the Company of NIS 0.03 par value. No change took place in the exercise price of the options, as above; however, the total exercise price for one share of NIS 0.03 par value will be the former exercise price for one share of NIS 0.01 par value multiplied by 3. Further, according to the terms and conditions of the marketable warrants of the Company, each 3 marketable warrants that the Company issued are exercisable into one ordinary share of the Company of NIS 0.03 par value. There will be no change in the exercise price of those warrants; however, the total exercise price for one share of NIS 0.03 par value will be the former exercise price for one share of NIS 0.01 par value multiplied by 3. Following the reverse split, the Company retrospectively reflected the change in the share capital of the Company for all periods presented. Unless otherwise indicated, all of the share numbers, losses per share, share prices, options and warrants in these financial statements have been adjusted, on a retroactive basis, to reflect this 1 to 3 reverse share split. The Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 4,344,340 ordinary shares for an aggregate of NIS 2.2 million to the following three investors as follows: (i) Alpha entered into a Security Purchase Agreement for the purchase of 1,275,340 ordinary shares for NIS 638 thousand; (ii) Ami Sagi entered into a Security Purchase Agreement for the purchase of 2,046,000 ordinary shares for NIS 1 million; and (iii) Docor International BV entered into a Security Purchase Agreement for the purchase of 1,023,000 ordinary shares for NIS 511 thousand. Closing occurred on January 25, 2018. Pursuant to which the Company issued on July 31, 2018, in a private placement, 11,125,000 ordinary shares for an aggregate purchase price of NIS 4,561,250 (approximately $1.25 million). 0.20 3800000 960000 3700000 492000 3620885 486000 235413 486000 900000 250000 221000 900000 250000 The Company signed a one year service agreement with a service provider according to which in return to its services the Company will pay a monthly retainer and issue a total of 12,000 restricted ADSs (600,000 ordinary shares) in 3 tranches of 4,000 ADSs (200,000 ordinary shares) each: (i) following the execution of the agreement, (ii) Febuary 1, 2019, (iii) June 1, 2019. If the agreement is canceled prior to the issuance date the share balance is not owed. Under the Agreement, Mr. Rigby shall be entitled to an annual fee of $70,000 plus VAT, to be paid on a monthly basis and options to purchase 12,319,500 ordinary shares (represented by 246,390 ADSs exercisable at $5.07 per ADS) exercisable at $0.101 per share. 9100000 9100000 99000 1998000 170000 0.13 0.29 0.19 P4Y P4Y P4Y P4Y 0.29 0.23 2000000 P4Y The Company's shareholders approved (i) the grant of 3,750,000 options to purchase 3,750,000 ordinary shares to Yehiel Tal, the chief executive officer, (ii) the grant of 650,000 options to purchase 650,000 ordinary shares to Adi Goldin, a director and former chairman, (iii) the grant to each of the directors, Abraham Havron, David Tsur and Scott Burell, of 500,000 options to purchase 500,000 ordinary shares, (iv) the grant to each of Gili Hart, external director, and Elan Penn, external director, of 500,000 options to purchase 500,000 ordinary shares, and (v) the annual and attendance compensation to David Tsur, in accordance with the fixed amounts in accordance with the Companies Law. Following their approval, each of the foregoing options may be exercised at a price per option of NIS 0.58 and the options will vest over four years, in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter. The options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter. The options will vest over four years in which one quarter will vest one year after the grant date and the remaining balance will vest in equal parts at the end of each subsequent quarter. The options shall have a term of seven years and shall vest upon the earlier of (1) an equity raise of at least US$10 million, in one or more financings, or (2) will vest over a period of four years, with a quarter of the options vesting on January 31, 2020, and the remaining options vesting in equal parts at the end of every quarter thereafter. Each of the options may be exercised at a price per option of $0.101 per share. The Options shall vest over a period of four years from their date of grant, with 25% of the Options vesting on the first anniversary of the date of grant and the remaining Options vesting equally on a quarterly basis during the three years thereafter. 1668000 2657000 682000 14695000 7309000 7346000 -37000 3636000 3673000 0.10 -9257000 -573000 -3154000 -2282000 3227000 1500000 492000000 129000 273000 138000 61000 32000 57000 75000 30000 251000 35000 891000 -93000 218000 759000 47944792 13745025 36531500 70807407 2010000 1988000 2129000 1066000 455000 793000 1214000 613000 1057000 558000 279000 627000 6 6 7 -577000 -180000 3917000 4119000 4503000 2147000 1051000 1261000 6064000 5170000 5764000 6 6 7 12319500 (i) 9,050,000 options exercisable into total of 9,050,000 ordinary shares to the company's officers, employees and consultants, and (ii) , subject to shareholders approval, 2,000,000 options exercisable into total of 2,000,000 ordinary shares to members of the board of directors, in the following manner: (i) 250,000 options exercisable into 250,000 ordinary shares, to each of Dr. Abraham Havron, Dr. Gili Hart, Dr. Elan Penn, Scott R. Burell and Adi Goldin; and (ii) 750,000 options exercisable into 750,000 ordinary shares to Dr. Wolfgang Ruttenstorfer. Share-based payments expenses for the year ended December 31, 2017 and 2018, include amount of NIS 1.5 million and NIS 494,000, respectively, due to fair value estimate of services received from Alpha. Greenhouse equipment agricultural equipment used in the tobacco production greenhouse. Represents $4,736 thousand warrants and $363 thousand anti-dilution derivatives. See Note 14(A)(10) and (11) Not including options to Directors and CEO which were subject to shareholder approval. Represents the unfulfilled performance obligation related to First BioInk. As of December 31, 2018, non-current contract liabilities are estimated to be recognized in 2020. In accordance with the CEO's employment agreement, the CEO will be eligible for a bonus based on qualitative criteria and parameters determined by the Company, which will amount to a maximum of four salaries, plus a special bonus based on the fulfillment of additional conditions. Include cost of salary to two former executive officers who ended their tenure during 2018.