0001631487
2020-01-01
2020-12-31
0001631487
2020-12-31
0001631487
2019-12-31
0001631487
2019-01-01
2019-12-31
0001631487
2018-01-01
2018-12-31
0001631487
us-gaap:CommonStockMember
2017-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2017-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2017-12-31
0001631487
us-gaap:RetainedEarningsMember
2017-12-31
0001631487
2017-12-31
0001631487
us-gaap:CommonStockMember
2018-01-01
2018-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2018-01-01
2018-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2018-01-01
2018-12-31
0001631487
us-gaap:RetainedEarningsMember
2018-01-01
2018-12-31
0001631487
us-gaap:CommonStockMember
2018-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2018-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2018-12-31
0001631487
us-gaap:RetainedEarningsMember
2018-12-31
0001631487
2018-12-31
0001631487
us-gaap:CommonStockMember
2019-01-01
2019-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2019-01-01
2019-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2019-01-01
2019-12-31
0001631487
us-gaap:RetainedEarningsMember
2019-01-01
2019-12-31
0001631487
us-gaap:CommonStockMember
2019-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2019-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2019-12-31
0001631487
us-gaap:RetainedEarningsMember
2019-12-31
0001631487
us-gaap:CommonStockMember
2020-01-01
2020-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2020-01-01
2020-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2020-01-01
2020-12-31
0001631487
us-gaap:RetainedEarningsMember
2020-01-01
2020-12-31
0001631487
us-gaap:CommonStockMember
2020-12-31
0001631487
us-gaap:AdditionalPaidInCapitalMember
2020-12-31
0001631487
clgn:CurrencyTranslationDifferencesMember
2020-12-31
0001631487
us-gaap:RetainedEarningsMember
2020-12-31
0001631487
dei:AdrMember
us-gaap:SubsequentEventMember
2021-02-01
2021-02-17
0001631487
dei:AdrMember
us-gaap:SubsequentEventMember
2021-02-17
0001631487
us-gaap:SubsequentEventMember
2021-02-01
2021-02-17
0001631487
us-gaap:SubsequentEventMember
2021-02-17
0001631487
2020-09-30
0001631487
us-gaap:ComputerEquipmentMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
clgn:GreenhouseEquipmentMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
clgn:GreenhouseEquipmentMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
clgn:OfficeFurnitureMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
clgn:OfficeFurnitureMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
clgn:LaboratoryEquipmentMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
clgn:LaboratoryEquipmentMember
2020-01-01
2020-12-31
0001631487
us-gaap:LeaseholdImprovementsMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
us-gaap:VehiclesMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
us-gaap:VehiclesMember
2020-01-01
2020-12-31
0001631487
clgn:AlphaMember
2020-01-01
2020-12-31
0001631487
clgn:MeitavDashAndAmiSagyMember
2019-01-01
2019-12-31
0001631487
clgn:AmiSagyMember
2020-01-01
2020-12-31
0001631487
clgn:AmiSagyMember
2019-01-01
2019-12-31
0001631487
us-gaap:FairValueInputsLevel3Member
2019-12-31
0001631487
us-gaap:FairValueInputsLevel3Member
2018-12-31
0001631487
us-gaap:FairValueInputsLevel3Member
2020-01-01
2020-12-31
0001631487
us-gaap:FairValueInputsLevel3Member
2019-01-01
2019-12-31
0001631487
us-gaap:FairValueInputsLevel3Member
2020-12-31
0001631487
us-gaap:WarrantMember
2018-12-31
0001631487
us-gaap:WarrantMember
2019-01-01
2019-12-31
0001631487
us-gaap:WarrantMember
2019-12-31
0001631487
clgn:LaboratoryEquipmentMember
2020-12-31
0001631487
clgn:LaboratoryEquipmentMember
2019-12-31
0001631487
clgn:GreenhouseEquipmentMember
2020-12-31
0001631487
clgn:GreenhouseEquipmentMember
2019-12-31
0001631487
us-gaap:ComputerEquipmentMember
2020-12-31
0001631487
us-gaap:ComputerEquipmentMember
2019-12-31
0001631487
us-gaap:OfficeEquipmentMember
2020-12-31
0001631487
us-gaap:OfficeEquipmentMember
2019-12-31
0001631487
us-gaap:LeaseholdImprovementsMember
2020-12-31
0001631487
us-gaap:LeaseholdImprovementsMember
2019-12-31
0001631487
us-gaap:VehiclesMember
2020-12-31
0001631487
us-gaap:VehiclesMember
2019-12-31
0001631487
2015-11-01
2015-11-15
0001631487
2016-07-01
2016-07-28
0001631487
2017-07-01
2017-07-31
0001631487
2019-03-01
2019-03-31
0001631487
clgn:OperatingLeaseMember
2020-12-31
0001631487
clgn:OperatingLeaseMember
2019-12-31
0001631487
clgn:LeaseLiabilityMember
2020-12-31
0001631487
clgn:ContingentLiabilityMember
us-gaap:IsraelTaxAuthorityMember
2020-09-01
2020-09-06
0001631487
us-gaap:IsraelTaxAuthorityMember
2020-09-06
0001631487
us-gaap:IsraelTaxAuthorityMember
2020-02-01
2020-02-11
0001631487
2020-09-02
2020-09-14
0001631487
2018-02-25
2018-03-01
0001631487
us-gaap:CommonStockMember
2018-03-01
0001631487
2019-10-20
2019-10-27
0001631487
2019-05-26
2019-06-06
0001631487
clgn:AlphaPurchaseAgreementMember
2017-09-01
2017-09-06
0001631487
clgn:AlphaMember
2017-10-26
0001631487
clgn:AlphaMember
2017-10-19
2017-10-26
0001631487
2017-12-24
2017-12-31
0001631487
2018-01-31
0001631487
us-gaap:WarrantMember
2018-01-31
0001631487
dei:AdrMember
2018-01-31
0001631487
clgn:AlphaPurchaseAgreementMember
2018-04-23
2018-04-30
0001631487
us-gaap:WarrantMember
2019-12-31
0001631487
2018-04-23
2018-04-30
0001631487
2019-12-23
2019-12-31
0001631487
us-gaap:WarrantMember
2020-01-01
2020-12-31
0001631487
clgn:MeitavDashPurchaseAgreementMember
2017-11-03
2017-11-08
0001631487
clgn:MeitavDashPurchaseAgreementMember
2017-12-26
0001631487
2017-12-19
2017-12-26
0001631487
clgn:MeitavDashPurchaseAgreementMember
us-gaap:CommonStockMember
2018-03-07
0001631487
2018-03-07
0001631487
clgn:SagyPurchaseAgreementMember
2017-12-26
0001631487
clgn:SagyPurchaseAgreementMember
2017-12-26
2017-12-26
0001631487
clgn:SagyPurchaseAgreementMember
2018-03-07
0001631487
clgn:SagyPurchaseAgreementMember
2019-10-27
0001631487
2019-10-01
2019-10-27
0001631487
clgn:SecurityPurchaseAgreementsMember
2018-01-18
0001631487
clgn:SecurityPurchaseAgreementsMember
2018-01-10
2018-01-18
0001631487
2018-01-10
2018-01-18
0001631487
2018-03-09
2018-04-16
0001631487
2018-07-04
2018-07-11
0001631487
2018-07-26
0001631487
clgn:OneYearServiceAgreementMember
2018-09-02
2018-09-10
0001631487
clgn:SagyPurchaseAgreementMember
2019-08-20
2019-09-03
0001631487
2019-09-06
0001631487
clgn:ConvertibleLoanAgreementMember
2019-08-10
2019-08-30
0001631487
2020-03-06
0001631487
2020-03-02
2020-03-06
0001631487
clgn:EmployeeMember
2019-10-20
2019-10-27
0001631487
clgn:DirectorsAndChiefExecutiveOfficerMember
2019-01-01
2019-12-31
0001631487
srt:MinimumMember
clgn:EmployeeMember
2019-01-01
2019-12-31
0001631487
srt:MaximumMember
clgn:EmployeeMember
2019-01-01
2019-12-31
0001631487
clgn:EmployeeMember
2019-01-01
2019-12-31
0001631487
clgn:NonEmployeesMember
2020-01-01
2020-12-31
0001631487
clgn:NonEmployeesMember
2019-01-01
2019-12-31
0001631487
clgn:NonEmployeesMember
2020-12-31
0001631487
us-gaap:OptionMember
2020-01-01
2020-12-31
0001631487
clgn:EmployeeMember
2020-01-01
2020-12-31
0001631487
srt:DirectorMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
srt:DirectorMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
srt:DirectorMember
2020-01-01
2020-12-31
0001631487
srt:DirectorMember
2019-01-01
2019-12-31
0001631487
srt:MinimumMember
srt:DirectorMember
2019-01-01
2019-12-31
0001631487
srt:MaximumMember
srt:DirectorMember
2019-01-01
2019-12-31
0001631487
clgn:EmployeeMember
2018-01-01
2018-12-31
0001631487
srt:DirectorMember
2018-01-01
2018-12-31
0001631487
srt:MinimumMember
clgn:EmployeesAndDirectorsMember
2020-01-01
2020-12-31
0001631487
srt:MaximumMember
clgn:EmployeesAndDirectorsMember
2020-01-01
2020-12-31
0001631487
srt:MinimumMember
clgn:EmployeesAndDirectorsMember
2019-01-01
2019-12-31
0001631487
srt:MaximumMember
clgn:EmployeesAndDirectorsMember
2019-01-01
2019-12-31
0001631487
srt:MinimumMember
clgn:EmployeesAndDirectorsMember
2018-01-01
2018-12-31
0001631487
srt:MaximumMember
clgn:EmployeesAndDirectorsMember
2018-01-01
2018-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2020-01-01
2020-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2019-01-01
2019-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2018-01-01
2018-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2019-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2018-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2017-12-31
0001631487
clgn:EmployeesAndDirectorsMember
2020-12-31
0001631487
clgn:OptionGrantedToNonEmployeesMember
2020-01-01
2020-12-31
0001631487
clgn:NonEmployeesMember
2018-01-01
2018-12-31
0001631487
clgn:NonEmployeesMember
2019-12-31
0001631487
clgn:NonEmployeesMember
2018-12-31
0001631487
clgn:NonEmployeesMember
2017-12-31
0001631487
clgn:RangeOneMember
2020-12-31
0001631487
clgn:RangeOneMember
2020-01-01
2020-12-31
0001631487
clgn:RangeTwoMember
2020-12-31
0001631487
clgn:RangeTwoMember
2020-01-01
2020-12-31
0001631487
clgn:RangeThreeMember
2020-12-31
0001631487
clgn:RangeThreeMember
2020-01-01
2020-12-31
0001631487
clgn:RangeFourMember
2020-12-31
0001631487
clgn:RangeFourMember
2020-01-01
2020-12-31
0001631487
clgn:RangeFiveMember
2020-12-31
0001631487
clgn:RangeFiveMember
2020-01-01
2020-12-31
0001631487
clgn:RangeSixMember
2020-12-31
0001631487
clgn:RangeSixMember
2020-01-01
2020-12-31
0001631487
clgn:RangeSevenMember
2020-12-31
0001631487
clgn:RangeSevenMember
2020-01-01
2020-12-31
0001631487
clgn:RangeEightMember
2020-12-31
0001631487
clgn:RangeEightMember
2020-01-01
2020-12-31
0001631487
clgn:RangeNineMember
2020-12-31
0001631487
clgn:RangeNineMember
2020-01-01
2020-12-31
0001631487
clgn:CostOfRevenuesMember
2020-01-01
2020-12-31
0001631487
us-gaap:ResearchAndDevelopmentExpenseMember
2020-01-01
2020-12-31
0001631487
us-gaap:ResearchAndDevelopmentExpenseMember
2019-01-01
2019-12-31
0001631487
us-gaap:ResearchAndDevelopmentExpenseMember
2018-01-01
2018-12-31
0001631487
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2020-01-01
2020-12-31
0001631487
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-01-01
2019-12-31
0001631487
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2018-01-01
2018-12-31
0001631487
us-gaap:CorporateMember
2020-12-31
0001631487
clgn:InstitutionsMember
2020-12-31
0001631487
clgn:InstitutionsMember
2019-12-31
0001631487
clgn:PrepaidExpensesMember
2020-12-31
0001631487
clgn:PrepaidExpensesMember
2019-12-31
0001631487
clgn:OthersMember
2019-12-31
0001631487
clgn:USDMember
2020-12-31
0001631487
clgn:USDMember
2019-12-31
0001631487
clgn:NISMember
2020-12-31
0001631487
clgn:NISMember
2019-12-31
0001631487
clgn:EmployeesMember
2020-12-31
0001631487
clgn:EmployeesMember
2019-12-31
0001631487
clgn:ProvisionMember
2020-12-31
0001631487
clgn:ProvisionMember
2019-12-31
0001631487
clgn:RoyaltiesAndOtherMember
2020-12-31
0001631487
clgn:RoyaltiesAndOtherMember
2019-12-31
0001631487
clgn:RevenueMember
2020-01-01
2020-12-31
0001631487
clgn:RevenueMember
2019-01-01
2019-12-31
0001631487
clgn:RevenueMember
2018-01-01
2018-12-31
0001631487
pf0:US
2020-01-01
2020-12-31
0001631487
pf0:US
2019-01-01
2019-12-31
0001631487
pf0:US
2018-01-01
2018-12-31
0001631487
srt:EuropeMember
2020-01-01
2020-12-31
0001631487
srt:EuropeMember
2019-01-01
2019-12-31
0001631487
clgn:TotalMember
2020-01-01
2020-12-31
0001631487
clgn:TotalMember
2019-01-01
2019-12-31
0001631487
clgn:TotalMember
2018-01-01
2018-12-31
0001631487
clgn:CustomerAMember
2019-12-11
2020-12-10
0001631487
clgn:CustomerAMember
2018-12-11
2019-12-10
0001631487
clgn:CustomerAMember
2017-12-11
2018-12-10
0001631487
clgn:CustomerBMember
2019-12-11
2020-12-10
0001631487
clgn:CustomerBMember
2018-12-11
2019-12-10
0001631487
clgn:CustomerCMember
2018-12-11
2019-12-10
0001631487
clgn:CustomerCMember
2017-12-11
2018-12-10
0001631487
us-gaap:GeneralAndAdministrativeExpenseMember
2020-01-01
2020-12-31
0001631487
us-gaap:GeneralAndAdministrativeExpenseMember
2019-01-01
2019-12-31
0001631487
us-gaap:GeneralAndAdministrativeExpenseMember
2018-01-01
2018-12-31
0001631487
us-gaap:SubsequentEventMember
2021-01-13
0001631487
us-gaap:SubsequentEventMember
2021-01-02
2021-01-13
0001631487
us-gaap:SubsequentEventMember
2021-01-01
2021-03-31
xbrli:shares
iso4217:USD
iso4217:ILS
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
iso4217:ILS
Greenhouse equipment - agricultural equipment used in the tobacco production greenhouse.
Leasehold improvements are amortized by the straight-line method over the shorter of the lease term or useful economic life.
After repricing- see Note 9 - (B)(2)(a).
In U.S. dollars per Ordinary Share.
Balance for the years ended December 31, 2018 and 2019 represents the unfulfilled performance obligation related to First BioInk.
false
--12-31
true
FY
2020
2020-12-31
false
false
20-F
0001631487
Yes
true
false
Non-accelerated Filer
L3
Yes
CollPlant Biotechnologies Ltd
false
No
No
6963838
3333000
3791000
12000
12000
830000
79000
239000
270000
1262000
888000
5676000
5040000
181000
168000
2796000
3215000
2106000
2329000
82000
5165000
5712000
10841000
10752000
24000
798000
833000
440000
455000
207000
942000
1943000
1203000
3388000
3457000
28000
68000
2948000
3139000
2976000
3207000
6364000
6664000
2933000
2368000
75547000
69949000
-969000
-969000
-73034000
-67260000
4477000
4088000
10841000
10752000
1.5
1.5
30000000
30000000
6963838
5670829
6963838
5670829
6137000
2318000
5014000
3002000
1879000
1659000
3135000
439000
3355000
4065000
4414000
3877000
4669000
3656000
3723000
-5599000
-7631000
-4245000
34000
3303000
2180000
40000
181000
230000
-176000
175000
3533000
2004000
-5774000
-11164000
-6249000
557000
-5774000
-11164000
-6806000
0.84
2.23
1.43
6886955
4986381
4384585
3336326
1382000
54048000
-412000
-49847000
5171000
309387
129000
2648000
2777000
3267000
3267000
165000
68000
-68000
4000
1000
7000
8000
1003000
1003000
-557000
-6249000
3814713
1580000
60905000
-969000
-56096000
5420000
1800040
763000
6602000
7365000
-1804000
-1804000
3139000
3139000
50000
22000
-22000
6076
3000
4000
7000
1125000
1125000
-11164000
5670829
2368000
69949000
-969000
-67260000
445000
195000
4205000
4400000
811085
355000
-355000
21495
9000
80000
89000
15429
6000
63000
69000
1605000
1605000
-5774000
6963838
2933000
75547000
-969000
-73034000
100000
50000
4451000
5703000
1217000
-4451000
-5703000
-1217000
82000
437000
1491000
832000
30000
-519000
-1461000
-832000
4400000
5440000
2777000
89000
7000
58000
24000
20000
12000
17000
70000
4465000
5410000
2753000
-505000
-1754000
704000
3971000
5663000
5284000
60000
-62000
-325000
3526000
660000
539000
342000
1674000
1125000
1434000
60000
62000
184000
-40000
3230000
2293000
213000
382000
-3327000
-5950000
-2364000
751000
-437000
439000
374000
74000
653000
-31000
-35000
-220000
-35000
228000
-112000
740000
629000
99000
-735000
-1008000
2032000
1124000
-247000
1147000
-4451000
-5703000
-1217000
3267000
355000
22000
68000
23000
97000
2024000
1335000
5354000
193000
180000
309000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 1 - GENERAL</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.5in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CollPlant Biotechnologies Ltd. (the
“Company”) is a regenerative and aesthetic medicine company focused on 3D bioprinting of tissues and organs and medical
aesthetics. The Company’s products are based on its rhCollagen (recombinant human collagen) produced with CollPlant’s
proprietary plant based genetic engineering technology. These products address indications for the diverse fields of tissue repair,
aesthetics, and organ manufacturing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s revenues include income
from business collaborators and sales of (i) the BioInk product for the development of 3D bioprinting of organs and tissues, (ii)
sales of rhCollagen for the medical aesthetics market, and (iii) sales in Europe of the products for tendinopathy and wound healing.</p></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company operates through
CollPlant Ltd., a wholly-owned subsidiary (CollPlant Biotechnologies Ltd. and CollPlant Ltd. will be referred to hereinafter
as “the Company” and “CollPlant”, respectively). Since January 31, 2018, the Company’s American Depositary
Shares (“ADSs”) are traded on the Nasdaq Capital Market.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px"><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">2021 Public Offering</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On February 17, 2021, the Company completed
a registered direct offering providing for the sale and issuance of an aggregate of 2,000,000 ADSs at a purchase price of $17.50 per ADS,
for aggregate gross proceeds of $35,000, before deducting investment bank commissions of 7% and estimated offering expenses of approximately
$800 payable by the Company (See also note 12(c)).</p><br/>
2000000
17.50
35000000
0.07
800000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>a.</b></font></td>
<td style="text-align: justify"><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><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">The accompanying consolidated financial statements
have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include
the accounts of Collplant Biotechnologies Ltd. and its wholly-owned subsidiary.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Prior to 2019, the Company
prepared its financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued
by the International Accounting Standards Board (“IASB”), as permitted in the United States (“U.S.”) based
on the Company’s status as a foreign private issuer as defined by the U.S. Securities and Exchange Commission (the “SEC”).
During 2019, the Company decided to adopt the US GAAP since the Company’s business activity is primarily in the U.S. as well
as its activity in the U.S. capital markets.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Use of estimates in the preparation of financial statements</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The novel coronavirus (“COVID-19”) pandemic
has created, and may continue to create, significant uncertainty in macroeconomic conditions. The full extent to which the COVID-19
pandemic will directly or indirectly impact the global economy, the lasting social effects, and impact on our business, results
of operations, and financial condition will depend on future developments that are highly uncertain and cannot be accurately predicted.
As of the date of issuance of these consolidated financial statements, we are not aware of any specific event or circumstance related
to COVID-19 that would require us to update our estimates or judgments or adjust the carrying value of our assets or liabilities.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Functional currency </b></font></td></tr>
</table><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">From the Company’s inception through December
31, 2018, the Company and its subsidiary’s functional currency was the New Israeli Shekel (NIS). Management conducted a review
of the functional currency of the Company and its subsidiary and concluded that the functional currency changed from the NIS to
the U.S. dollar, effective January 1, 2019. This change was based on an assessment by Company management that the U.S. dollar became
the primary currency of the economic environment in which the Company and its subsidiary operates. Accordingly, the U.S. dollar
is the functional currency of the Company and its consolidated subsidiary. Monetary assets and liabilities denominated in currencies
other than the U.S. dollar are remeasured into U.S. dollars at exchange rates in effect at the end of each period. Foreign currency
transaction gains and losses from these remeasurements are recognized in financial expense, net, within the consolidated statements
of operations. Foreign currency transactions resulted in net loss of $181, $230 for the years ended December 31, 2020, 2019, respectively
and net income of $176 for the year ended December 31, 2018.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In determining the appropriate functional currency
to be used, the Company reviewed factors relating to sales, costs and expenses, financing activities and cash flows, as well as
other potential factors, that should be considered. In this regard, in 2018, the Company incurred a significant increase in revenues
denominated in U.S. dollars relating to collaboration with its customers in the U.S., which is reflected primarily in the agreement
the Company signed in October 2018, with Lung Biotechnology PBC, a public benefit corporation and wholly-owned subsidiary of United
Therapeutics Corporations. The Company expects additional increase in revenues denominated in U.S. dollars related to its activities.
The Company incurred an increase and expects to continue to incur a significant part of its expenses in U.S. dollars. These changes,
as well as the fact that the majority of the Company’s available funds are in U.S. dollars, the Company’s principal
source of financing is the U.S. capital markets, and all of the Company’s budgeting is conducted solely in U.S. dollars,
led to the decision that a change occurred in the functional currency as of January 1, 2019, as indicated above.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>d.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Principles of consolidation</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The consolidated financial statements
include the accounts of the Company and CollPlant Ltd. All inter-company transactions and balances have been eliminated in consolidation.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>e.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Segments</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company identifies operating
segments in accordance with ASC Topic 280, “Segment Reporting” as components of an entity for which discrete financial
information is available and is regularly reviewed by the chief operating decision maker, or decision-making group, in making decisions
regarding resource allocation and evaluating financial performance. The Company defines the term “chief operating decision
maker” to be its chief executive officer. The Company determined it operates in one operating segment and one reportable
segment, as its chief operating decision maker reviews financial information presented only on a consolidated basis for purposes
of allocating resources and evaluating financial performance.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Cash and cash equivalents</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company considers as cash
equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three
months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts
of cash.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>g.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Restricted deposits</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company’s considers as restricted
deposits long term and short term collaterals related to the Company’s lease contracts and credit card.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Trade receivables</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Trade receivables are stated
net of credit losses allowance. The Company is exposed to credit losses primarily through sales of products. The allowance against
gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the
Company’s methodology. The Company’s methodology is based on historical experience, customer creditworthiness, current
and future economic condition and market condition. Additionally, specific allowance amounts are established to record the appropriate
provision for customers that have a higher probability of default. The Company also considered the current and expected future
economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly
impacted. The Company’s assessment for credit loss is negligible.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Inventory is measured at the
lower of cost and net realizable value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Inventory management is based
on the first-in first-out (FIFO) principle. Inventory costing is based on the moving average costing method. In the case of purchased
goods and work in process, costs include raw materials, direct labor, share based compensation and other direct costs and fixed
production overheads (based on the normal operating capacity of the production facilities).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Net realizable value is the estimated
selling price in the ordinary course of business, less variable attributable selling expenses.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Leases</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company determines if an
arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”)
assets and current and non-current operating lease liabilities in the consolidated balance sheets.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on
the present value of lease payments over the lease term. Lease terms will include options to extend or terminate the lease when
it is reasonably certain that the Company will either exercise or not exercise the option to renew or terminate the lease. The
discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company leases
do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available
at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on
a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease and non-lease
components for its leases (see also Note 6).</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Property and
equipment</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Property and equipment are stated at cost, net of accumulated depreciation and amortization.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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 Company’s property and equipment are depreciated by the straight-line method on the basis of their estimated useful life.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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 Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All Company’s property and equipment is
located in Israel.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The depreciation period is as follows:</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">Computer equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">3</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Greenhouse equipment*</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Office furniture</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 - 17</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Laboratory equipment</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 5</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Leasehold improvements</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">**</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Vehicles</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4-7</font></td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></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 - agricultural equipment used in the tobacco production greenhouse.</font></td>
</tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></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">Leasehold improvements are amortized by the straight-line method
over the shorter of the lease term or useful economic life.</td>
</tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>l.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Impairment of long-lived assets</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company tests long-lived
assets for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash
flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment
loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value
of expected future cash flows (discounted cash flows), or some other fair value measure.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For the three years ended December
31, 2020, the Company did not recognize an impairment loss for its long-lived assets.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Intangible assets</b> </font></td></tr>
</table><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company capitalizes development costs incurred
during the application development stage that are related to internal use technology. Under ASC 350-40, internal-use software capitalization
begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and
is ready for its intended purpose.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company expects to amortize the asset after completion
of the development stage over a period of 3 years.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost
capitalized to internal use software include sub-contractors services and employee salary expenses.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Share-based compensation </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company accounts for employees’
share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of each share option
award is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires
the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the
share option, the expected volatility of the price of our ordinary shares, risk-free interest rates, and the expected dividend
yield of ordinary shares. The assumptions used to determine the fair value of the option awards represent management’s best
estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The fair value of
share-based payment transactions is recognized as an expense over the requisite service period.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company elected to recognize
compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the accelerated method
based on the multiple-option award approach.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company elected to account
for forfeitures as they occur.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>o.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research and development expenses</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses
include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based
compensation expenses, payroll taxes and other employee benefits, lab expenses, consumable equipment and consulting fees. All costs
associated with research and developments are expensed as incurred.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Grants received from Israel Innovation Authority (hereafter
- “IIA”), are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company
will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The grant was
deducted from the research and development expenses as the applicable costs are incurred, and presented in R&D expenses, net.
See Note 7(a).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses,
net for the year ended December 31, 2020 did not include participation in research and development expenses.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses,
net for the years ended December 31, 2019 and 2018, include participation in research and development expenses in the amount of
approximately $28 and $327, respectively.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Revenue recognition </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under ASC 606, a contract with
a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations,
the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance
obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract
has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange
for the goods or services that will be transferred to the customer.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company enters into contracts that can include
combinations of products and services, which are generally capable of being distinct and accounted for as separate performance
obligations and may include an option to provide products or services.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The transaction price is determined based on the consideration
to which the Company will be entitled in exchange for transferring goods or services to the customer.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In instances of contracts where revenue recognition
differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing
component. The Company uses the practical expedient and does not assess the existence of a significant financing component when
the difference between payment and revenue recognition is a year or less.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For contracts with more than
one performance obligation the Company allocates the transaction price to each performance obligation based on its relative standalone
selling price. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for
performance obligations upon transfer of control to the customer.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; 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">Revenues from sale of goods</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company recognizes revenues
from selling goods at a point in time when control over the product is transferred to customers (upon delivery). The goods are
products based on the Company’s rhCollagen, and include the BioInk product for the development of 3D bioprinting of organs
and tissues and products for tendinopathy and wound healing.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Revenues from rendering services</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Revenue from rendering of services
is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company’s
performance. Under the Company’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’s performance completed to date and recognizes revenue
in the amount to which the Company has a right to invoice.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Revenues from licensing agreement</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On October 19, 2018, the Company
signed a License, Development and Commercialization Agreement (the “License Agreement”) with Lung Biotechnology PBC
(“LB”) (see also Note 8).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">According to ASC 606, 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’s promise to transfer
the good or service to the customer is separately identifiable from other promises in the contract.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company has identified the
following performance obligations in the License Agreement: (1) grant of the license and use of its IP (“License”);
and (2) a limited quantity of BioInk to be supplied over a specific time frame (“First BioInk”). 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.).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The transaction price included
an up-front paid amount of $5,000 and reimbursement for part of the costs related to the IIA in an amount of $1,000, 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 (“Variable Consideration”). The Company estimates variable consideration
using the most likely method. Amounts included in the transaction price are recognized only when it is probable that a significant
reversal of cumulative revenues will not occur.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Sales-based royalties are not included
in the transaction price. Rather, they are recognized as incurred, due to the specific exception of ASC 606 for sales-based royalties
in licensing of intellectual properties</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; ">
<tr style="vertical-align: top">
<td style="width: 1in; text-align: justify"> </td>
<td style="width: 0.5in; 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">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 style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="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">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In September 2020, LB expanded
the collaboration with the exercise of its option to cover a second lifesaving organ, human kidneys. LB paid CollPlant $3,000 for
the option exercise. The Company has identified the transaction as performance obligations to grant license and use of its IP (“License”)
for additional organ;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Under the agreement, the Company
is entitled to receive partial reimbursement for royalties expenses paid to the IIA. Such reimbursements are recorded as revenues.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On February 24, 2021, CollPlant
received a notice of termination from LB of the License Agreement, effective as of March 26, 2021.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Income taxes </b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 48px; text-align: justify"> </td>
<td style="vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="vertical-align: top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred taxes</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are computed using the asset
and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on
the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted
tax rates and laws. A valuation allowance is recognized to the extent that it is more likely than not that the deferred taxes will
not be realized in the foreseeable future. The Company has provided a full valuation allowance with respect to its deferred tax
assets.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 48px; text-align: justify"> </td>
<td style="vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="vertical-align: top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Uncertainty in income taxes</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows a two-step approach
in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining
if the available evidence indicates that it is more likely than not that the position will be sustained based on technical merits.
If this threshold is met, the second step is to measure the tax position as the largest amount that has more than a 50% likelihood
of being realized upon ultimate settlement.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Loss per share </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Basic loss per share is computed
on the basis of the net loss, adjusted to recognize the effect of a down-round feature when it is triggered, for the period divided
by the weighted average number of ordinary shares and prepaid warrants outstanding during the period. Diluted loss per share is
based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary
share equivalents include outstanding stock options and warrants, which are included under the treasury stock method when dilutive.
The calculation of diluted loss per share does not include options, warrants and convertible bonds exercisable into 4,008,007 shares,
3,536,495 shares and 2,299,684 shares for the years ended December 31, 2020, 2019 and 2018, respectively, because the effect
would be anti-dilutive.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>Fair value measurement</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Fair value is based on the price
that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the
guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into
three broad levels, which are described as follows:</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Level 2: Observable prices that
are based on inputs not quoted on active markets, but corroborated by market data.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The carrying amount of the cash
and cash equivalents, restricted deposits, trade receivable, trade payables, accrued expenses and other liabilities approximates
their fair value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The carrying amount of the derivatives
liability are measured using unobservable inputs that require a high level of judgment to determine fair value, and thus are classified
as Level 3 financial instruments as disclosed in Note 3 below.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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>t.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newly issued and recently adopted accounting pronouncements:</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As an “emerging growth company,” the Company can
delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable
to private companies. The Company has elected not to avail itself of an exemption that allows emerging growth companies to extend
the transition period for complying with new or revised financial accounting standards.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td>
<p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2016, FASB issued ASU 2016-13, Financial Instruments
- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to
utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely
recognition of losses. ASU 2016-13 requires that expected credit losses relating to financial assets be measured on an amortized
cost basis be recorded through an allowance for credit losses. ASU 2016-13 also requires an investor to determine whether a decline
in the fair value below the amortized cost basis (i.e., impairment) of an available for sale debt security is due to credit-related
factors or noncredit-related factors. Any impairment that is not credit related is recognized in OCI, net of applicable taxes.
However, if an entity intends to sell an impaired available for sell debt security or more likely than not will be required to
sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with
a corresponding adjustment to the security’s amortized cost basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Credit-related impairment is recognized
as an allowance on the balance sheet with a corresponding adjustment to earnings. The Company adopted ASU 2016-13 using the modified
retrospective approach as of January 1, 2020. The adoption by the Company of the new guidance did not have a material impact on
its consolidated financial statements.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">In August 2020, the FASB issued ASU No.
2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting
for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts
in an entity’s own equity. Among other changes, ASU 2020-06 removes from GAAP the liability and equity separation model for convertible
instruments with a cash conversion feature and a beneficial conversion feature, and as a result, after adoption, entities will
no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature
will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for
a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as
a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium.
Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments
on diluted earnings per share (EPS). ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption
permitted for fiscal years beginning after December 15, 2020 and can be adopted on either a fully retrospective or modified retrospective
basis. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">In
December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): “Simplifying
the Accounting for Income Taxes” (ASU 2019-12), which simplifies the accounting for income taxes. The guidance is effective
for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating
the impact of the new guidance and estimates that there will be no material impact on its consolidated financial statements.</font>  </p></td></tr>
</table><br/>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>a.</b></font></td>
<td style="text-align: justify"><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><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">The accompanying consolidated financial statements
have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include
the accounts of Collplant Biotechnologies Ltd. and its wholly-owned subsidiary.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Prior to 2019, the Company
prepared its financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued
by the International Accounting Standards Board (“IASB”), as permitted in the United States (“U.S.”) based
on the Company’s status as a foreign private issuer as defined by the U.S. Securities and Exchange Commission (the “SEC”).
During 2019, the Company decided to adopt the US GAAP since the Company’s business activity is primarily in the U.S. as well
as its activity in the U.S. capital markets.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Use of estimates in the preparation of financial statements</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The novel coronavirus (“COVID-19”) pandemic
has created, and may continue to create, significant uncertainty in macroeconomic conditions. The full extent to which the COVID-19
pandemic will directly or indirectly impact the global economy, the lasting social effects, and impact on our business, results
of operations, and financial condition will depend on future developments that are highly uncertain and cannot be accurately predicted.
As of the date of issuance of these consolidated financial statements, we are not aware of any specific event or circumstance related
to COVID-19 that would require us to update our estimates or judgments or adjust the carrying value of our assets or liabilities.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Functional currency </b></font></td></tr>
</table><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">From the Company’s inception through December
31, 2018, the Company and its subsidiary’s functional currency was the New Israeli Shekel (NIS). Management conducted a review
of the functional currency of the Company and its subsidiary and concluded that the functional currency changed from the NIS to
the U.S. dollar, effective January 1, 2019. This change was based on an assessment by Company management that the U.S. dollar became
the primary currency of the economic environment in which the Company and its subsidiary operates. Accordingly, the U.S. dollar
is the functional currency of the Company and its consolidated subsidiary. Monetary assets and liabilities denominated in currencies
other than the U.S. dollar are remeasured into U.S. dollars at exchange rates in effect at the end of each period. Foreign currency
transaction gains and losses from these remeasurements are recognized in financial expense, net, within the consolidated statements
of operations. Foreign currency transactions resulted in net loss of $181, $230 for the years ended December 31, 2020, 2019, respectively
and net income of $176 for the year ended December 31, 2018.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In determining the appropriate functional currency
to be used, the Company reviewed factors relating to sales, costs and expenses, financing activities and cash flows, as well as
other potential factors, that should be considered. In this regard, in 2018, the Company incurred a significant increase in revenues
denominated in U.S. dollars relating to collaboration with its customers in the U.S., which is reflected primarily in the agreement
the Company signed in October 2018, with Lung Biotechnology PBC, a public benefit corporation and wholly-owned subsidiary of United
Therapeutics Corporations. The Company expects additional increase in revenues denominated in U.S. dollars related to its activities.
The Company incurred an increase and expects to continue to incur a significant part of its expenses in U.S. dollars. These changes,
as well as the fact that the majority of the Company’s available funds are in U.S. dollars, the Company’s principal
source of financing is the U.S. capital markets, and all of the Company’s budgeting is conducted solely in U.S. dollars,
led to the decision that a change occurred in the functional currency as of January 1, 2019, as indicated above.</p>
181000
230000
176000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>d.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Principles of consolidation</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The consolidated financial statements
include the accounts of the Company and CollPlant Ltd. All inter-company transactions and balances have been eliminated in consolidation.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>e.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Segments</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company identifies operating
segments in accordance with ASC Topic 280, “Segment Reporting” as components of an entity for which discrete financial
information is available and is regularly reviewed by the chief operating decision maker, or decision-making group, in making decisions
regarding resource allocation and evaluating financial performance. The Company defines the term “chief operating decision
maker” to be its chief executive officer. The Company determined it operates in one operating segment and one reportable
segment, as its chief operating decision maker reviews financial information presented only on a consolidated basis for purposes
of allocating resources and evaluating financial performance.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Cash and cash equivalents</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company considers as cash
equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three
months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts
of cash.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>g.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Restricted deposits</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company’s considers as restricted
deposits long term and short term collaterals related to the Company’s lease contracts and credit card.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Trade receivables</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Trade receivables are stated
net of credit losses allowance. The Company is exposed to credit losses primarily through sales of products. The allowance against
gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the
Company’s methodology. The Company’s methodology is based on historical experience, customer creditworthiness, current
and future economic condition and market condition. Additionally, specific allowance amounts are established to record the appropriate
provision for customers that have a higher probability of default. The Company also considered the current and expected future
economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly
impacted. The Company’s assessment for credit loss is negligible.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Inventory is measured at the
lower of cost and net realizable value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Inventory management is based
on the first-in first-out (FIFO) principle. Inventory costing is based on the moving average costing method. In the case of purchased
goods and work in process, costs include raw materials, direct labor, share based compensation and other direct costs and fixed
production overheads (based on the normal operating capacity of the production facilities).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Net realizable value is the estimated
selling price in the ordinary course of business, less variable attributable selling expenses.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Leases</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company determines if an
arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”)
assets and current and non-current operating lease liabilities in the consolidated balance sheets.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on
the present value of lease payments over the lease term. Lease terms will include options to extend or terminate the lease when
it is reasonably certain that the Company will either exercise or not exercise the option to renew or terminate the lease. The
discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company leases
do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available
at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on
a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease and non-lease
components for its leases (see also Note 6).</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Property and
equipment</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Property and equipment are stated at cost, net of accumulated depreciation and amortization.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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 Company’s property and equipment are depreciated by the straight-line method on the basis of their estimated useful life.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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 Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All Company’s property and equipment is
located in Israel.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The depreciation period is as follows:</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">Computer equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">3</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Greenhouse equipment*</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Office furniture</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 - 17</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Laboratory equipment</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 5</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Leasehold improvements</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">**</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Vehicles</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4-7</font></td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></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 - agricultural equipment used in the tobacco production greenhouse.</font></td>
</tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></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">Leasehold improvements are amortized by the straight-line method
over the shorter of the lease term or useful economic life.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>l.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Impairment of long-lived assets</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company tests long-lived
assets for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash
flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment
loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value
of expected future cash flows (discounted cash flows), or some other fair value measure.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For the three years ended December
31, 2020, the Company did not recognize an impairment loss for its long-lived assets.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Intangible assets</b> </font></td></tr>
</table><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company capitalizes development costs incurred
during the application development stage that are related to internal use technology. Under ASC 350-40, internal-use software capitalization
begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and
is ready for its intended purpose.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company expects to amortize the asset after completion
of the development stage over a period of 3 years.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost
capitalized to internal use software include sub-contractors services and employee salary expenses.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Share-based compensation </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company accounts for employees’
share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of each share option
award is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires
the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the
share option, the expected volatility of the price of our ordinary shares, risk-free interest rates, and the expected dividend
yield of ordinary shares. The assumptions used to determine the fair value of the option awards represent management’s best
estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The fair value of
share-based payment transactions is recognized as an expense over the requisite service period.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company elected to recognize
compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the accelerated method
based on the multiple-option award approach.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company elected to account
for forfeitures as they occur.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>o.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research and development expenses</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses
include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based
compensation expenses, payroll taxes and other employee benefits, lab expenses, consumable equipment and consulting fees. All costs
associated with research and developments are expensed as incurred.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Grants received from Israel Innovation Authority (hereafter
- “IIA”), are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company
will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The grant was
deducted from the research and development expenses as the applicable costs are incurred, and presented in R&D expenses, net.
See Note 7(a).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses,
net for the year ended December 31, 2020 did not include participation in research and development expenses.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Research and development expenses,
net for the years ended December 31, 2019 and 2018, include participation in research and development expenses in the amount of
approximately $28 and $327, respectively.</p>
28000
327000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Revenue recognition </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under ASC 606, a contract with
a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations,
the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance
obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract
has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange
for the goods or services that will be transferred to the customer.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company enters into contracts that can include
combinations of products and services, which are generally capable of being distinct and accounted for as separate performance
obligations and may include an option to provide products or services.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The transaction price is determined based on the consideration
to which the Company will be entitled in exchange for transferring goods or services to the customer.</p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In instances of contracts where revenue recognition
differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing
component. The Company uses the practical expedient and does not assess the existence of a significant financing component when
the difference between payment and revenue recognition is a year or less.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For contracts with more than
one performance obligation the Company allocates the transaction price to each performance obligation based on its relative standalone
selling price. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for
performance obligations upon transfer of control to the customer.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; 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">Revenues from sale of goods</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company recognizes revenues
from selling goods at a point in time when control over the product is transferred to customers (upon delivery). The goods are
products based on the Company’s rhCollagen, and include the BioInk product for the development of 3D bioprinting of organs
and tissues and products for tendinopathy and wound healing.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Revenues from rendering services</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Revenue from rendering of services
is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company’s
performance. Under the Company’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’s performance completed to date and recognizes revenue
in the amount to which the Company has a right to invoice.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </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">Revenues from licensing agreement</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On October 19, 2018, the Company
signed a License, Development and Commercialization Agreement (the “License Agreement”) with Lung Biotechnology PBC
(“LB”) (see also Note 8).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">According to ASC 606, 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’s promise to transfer
the good or service to the customer is separately identifiable from other promises in the contract.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company has identified the
following performance obligations in the License Agreement: (1) grant of the license and use of its IP (“License”);
and (2) a limited quantity of BioInk to be supplied over a specific time frame (“First BioInk”). 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.).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The transaction price included
an up-front paid amount of $5,000 and reimbursement for part of the costs related to the IIA in an amount of $1,000, 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 (“Variable Consideration”). The Company estimates variable consideration
using the most likely method. Amounts included in the transaction price are recognized only when it is probable that a significant
reversal of cumulative revenues will not occur.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Sales-based royalties are not included
in the transaction price. Rather, they are recognized as incurred, due to the specific exception of ASC 606 for sales-based royalties
in licensing of intellectual properties</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">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><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; ">
<tr style="vertical-align: top">
<td style="width: 1in; text-align: justify"> </td>
<td style="width: 0.5in; 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">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 style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="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">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In September 2020, LB expanded
the collaboration with the exercise of its option to cover a second lifesaving organ, human kidneys. LB paid CollPlant $3,000 for
the option exercise. The Company has identified the transaction as performance obligations to grant license and use of its IP (“License”)
for additional organ;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Under the agreement, the Company
is entitled to receive partial reimbursement for royalties expenses paid to the IIA. Such reimbursements are recorded as revenues.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On February 24, 2021, CollPlant
received a notice of termination from LB of the License Agreement, effective as of March 26, 2021.</p>
5000000
1000000
3000000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Income taxes </b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 48px; text-align: justify"> </td>
<td style="vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="vertical-align: top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred taxes</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are computed using the asset
and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on
the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted
tax rates and laws. A valuation allowance is recognized to the extent that it is more likely than not that the deferred taxes will
not be realized in the foreseeable future. The Company has provided a full valuation allowance with respect to its deferred tax
assets.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 48px; text-align: justify"> </td>
<td style="vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="vertical-align: top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Uncertainty in income taxes</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows a two-step approach
in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining
if the available evidence indicates that it is more likely than not that the position will be sustained based on technical merits.
If this threshold is met, the second step is to measure the tax position as the largest amount that has more than a 50% likelihood
of being realized upon ultimate settlement.</p></td></tr></table>
0.50
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Loss per share </b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Basic loss per share is computed
on the basis of the net loss, adjusted to recognize the effect of a down-round feature when it is triggered, for the period divided
by the weighted average number of ordinary shares and prepaid warrants outstanding during the period. Diluted loss per share is
based upon the weighted average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary
share equivalents include outstanding stock options and warrants, which are included under the treasury stock method when dilutive.
The calculation of diluted loss per share does not include options, warrants and convertible bonds exercisable into 4,008,007 shares,
3,536,495 shares and 2,299,684 shares for the years ended December 31, 2020, 2019 and 2018, respectively, because the effect
would be anti-dilutive.</p>
4008007000
3536495000
2299684000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>Fair value measurement</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Fair value is based on the price
that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the
guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into
three broad levels, which are described as follows:</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Level 2: Observable prices that
are based on inputs not quoted on active markets, but corroborated by market data.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The carrying amount of the cash
and cash equivalents, restricted deposits, trade receivable, trade payables, accrued expenses and other liabilities approximates
their fair value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The carrying amount of the derivatives
liability are measured using unobservable inputs that require a high level of judgment to determine fair value, and thus are classified
as Level 3 financial instruments as disclosed in Note 3 below.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><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>t.</b></font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newly issued and recently adopted accounting pronouncements:</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As an “emerging growth company,” the Company can
delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable
to private companies. The Company has elected not to avail itself of an exemption that allows emerging growth companies to extend
the transition period for complying with new or revised financial accounting standards.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td>
<p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2016, FASB issued ASU 2016-13, Financial Instruments
- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to
utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely
recognition of losses. ASU 2016-13 requires that expected credit losses relating to financial assets be measured on an amortized
cost basis be recorded through an allowance for credit losses. ASU 2016-13 also requires an investor to determine whether a decline
in the fair value below the amortized cost basis (i.e., impairment) of an available for sale debt security is due to credit-related
factors or noncredit-related factors. Any impairment that is not credit related is recognized in OCI, net of applicable taxes.
However, if an entity intends to sell an impaired available for sell debt security or more likely than not will be required to
sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with
a corresponding adjustment to the security’s amortized cost basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Credit-related impairment is recognized
as an allowance on the balance sheet with a corresponding adjustment to earnings. The Company adopted ASU 2016-13 using the modified
retrospective approach as of January 1, 2020. The adoption by the Company of the new guidance did not have a material impact on
its consolidated financial statements.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">In August 2020, the FASB issued ASU No.
2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting
for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts
in an entity’s own equity. Among other changes, ASU 2020-06 removes from GAAP the liability and equity separation model for convertible
instruments with a cash conversion feature and a beneficial conversion feature, and as a result, after adoption, entities will
no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature
will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for
a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as
a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium.
Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments
on diluted earnings per share (EPS). ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption
permitted for fiscal years beginning after December 15, 2020 and can be adopted on either a fully retrospective or modified retrospective
basis. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.</p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">In
December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): “Simplifying
the Accounting for Income Taxes” (ASU 2019-12), which simplifies the accounting for income taxes. The guidance is effective
for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating
the impact of the new guidance and estimates that there will be no material impact on its consolidated financial statements.</font></p></td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">Computer equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">3</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Greenhouse equipment*</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Office furniture</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 - 17</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Laboratory equipment</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 - 5</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Leasehold improvements</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">**</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Vehicles</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4-7</font></td><td style="text-align: left"> </td></tr>
</table>
P3Y
P4Y
P10Y
P7Y
P17Y
P4Y
P5Y
P4Y
P7Y
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 3 - FAIR VALUE MEASUREMENTS</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<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">Estimates of fair value</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company’s financial
liability at fair value through profit or loss is the anti-dilution derivatives, classified as liabilities, and amounted to $28
and $68 as of December 31, 2020 and 2019, respectively.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table presents
the assumptions that were used for the models as of December 31, 2020 and 2019:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ami Sagy*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">US investors - 2019 <br/> agreement</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-indent: -9pt; padding-left: 9pt">Probability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71.19</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59.58</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">70.78</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59.58</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Risk free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.12</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.62</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.12</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.62</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Expected term (years)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.68</td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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.</font></td>
<td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments in level 3</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table presents
the Level 3 anti-dilution instrument roll-forward:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-indent: -9pt; padding-left: 9pt">Opening balance as of beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(68</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(97</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Issuance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(100</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercise of anti-dilution derivatives</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,024</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Gain (loss) from changes in fair value of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,895</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Closing balance as of end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(28</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(68</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table presents
the Level 3 warrants roll-forward:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Opening balance as of beginning of year</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">Classification of warrants from equity to liability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(1,804</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Loss from changes in fair value of financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,335</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Classification of warrants from liability to equity</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,139</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Closing balance as of end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/>
28000
68000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ami Sagy*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">US investors - 2019 <br/> agreement</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-indent: -9pt; padding-left: 9pt">Probability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71.19</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59.58</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">70.78</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">59.58</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Risk free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.12</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.62</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.12</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.62</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Expected term (years)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.68</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.68</td><td style="text-align: left"> </td></tr>
</table>
0.03
0.03
0.03
0.03
0.7119
0.5958
0.7078
0.5958
0.0012
0.0162
0.0012
0.0162
P1Y248D
P2Y248D
P1Y248D
P2Y248D
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-indent: -9pt; padding-left: 9pt">Opening balance as of beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(68</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(97</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Issuance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(100</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercise of anti-dilution derivatives</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,024</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Gain (loss) from changes in fair value of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,895</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Closing balance as of end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(28</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(68</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
-68000
-97000
-100000
2024000
40000
-1895000
-28000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Opening balance as of beginning of year</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">Classification of warrants from equity to liability</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">(1,804</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Loss from changes in fair value of financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,335</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Classification of warrants from liability to equity</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,139</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Closing balance as of end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
-1804000
-1335000
3139000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 4 - PROPERTY AND EQUIPMENT</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Cost:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 0.25in">Laboratory equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,882</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,631</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Greenhouse equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">713</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Computer equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">280</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Office furniture</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">195</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">181</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,431</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,271</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Vehicles</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,585</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,147</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Less:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,479</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,818</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Property and Equipment, net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,106</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,329</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Depreciation expense totalled
$660, $539 and $342 for the years ended December 31, 2020, December 31, 2019 and December 31, 2018, respectively.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the year ended December
31, 2019, the Company disposed of property and equipment in the net amount of $30. In the years ended December 31, 2020 and 2018
there was no disposal of fixed assets booked to the Company’s financial statements.</p><br/>
660000
539000
342000
30000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Cost:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 0.25in">Laboratory equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,882</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,631</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Greenhouse equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">713</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Computer equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">280</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Office furniture</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">195</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">181</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,431</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,271</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Vehicles</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,585</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,147</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Less:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,479</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,818</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Property and Equipment, net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,106</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,329</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
1882000
1631000
713000
713000
280000
267000
195000
181000
2431000
2271000
84000
84000
5585000
5147000
3479000
2818000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
5 - INVENTORY</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inventories
at December 31, 2020 and 2019 consisted of the following:</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Work in progress</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">391</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">422</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Finished goods’</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">871</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">466</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total inventory</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,262</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">888</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year
ended December 31, 2020 and 2019, the Company recorded approximately $55 and $44 for write-down of inventory under cost of
goods sold. There was no write down in 2018.</font></td></tr>
</table><br/>
55000
44000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Work in progress</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">391</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">422</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Finished goods’</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">871</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">466</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total inventory</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,262</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">888</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
391000
422000
871000
466000
1262000
888000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
6 - OPERATING LEASES</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 15,
2018, the Company signed a new lease agreement for the Company’s new offices located in Rehovot which expires in April
2024, for a monthly payment of NIS 89 thousand, (approximately $25), with an option to extend for five additional years. In
addition, as part of the lease agreement the Company did not carry the monthly rent payment during the first five months of
the lease agreement and was reimbursed for its building adjustments costs in the amount of $689.</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 31, 2020 amounted to $181. The deposit is classified as a non-current asset.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 28, 2016, the Company signed a lease agreement for additional space designated for its development and production activities
in Rehovot. The lease was for three years with an option to extend for four additional years, in return for a monthly payment
of NIS 30 thousand (approximately $8.5). On March 24, 2019, the Company exercised its first option to extend the lease period
for an additional 16 months commencing July 1, 2019. On September 8, 2020, the Company exercised its second option to extend the
lease period for an additional 3 years commencing October 19, 2020.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2017, the Company signed a lease agreement for land in Yessod Hamaala that was previously leased. The new lease agreement
is for four years, commencing May 1, 2017, with an option to extend for an additional six years, with a monthly rental amount
of NIS 10 thousand (approximately $3).</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company also leased a space for its old offices in Ness Ziona until March 31, 2019, for a monthly rental amount of approximately
$15.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has
entered into operating lease agreements for vehicles used by its employees. The lease periods are generally for three years
and the payments are linked to the Israeli CPI. To secure the terms of the lease agreements, the Company has made certain
prepayments to the leasing company, representing approximately three months of lease payments.</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
leases cost for rental space and vehicles for the year ended December 31, 2020 totalled $633. Rent expense for the years ended
December 31, 2019 and 2018 was approximately $619 and $331, respectively.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
operating lease costs include variable lease payments of $9 in 2019.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplemental
cash flow information related to leases was as follows:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Operating cash flows from operating leases</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">657</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">505</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplemental
balance sheet information related to leases was as follows:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Operating Leases</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating lease right-of-use assets</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">2,796</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">3,215</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Current lease liabilities</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">440</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">455</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Non-current lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,948</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,139</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,388</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,594</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-indent: -9pt; padding-left: 9pt">Weighted Average Remaining Lease Term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.5 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.4 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-indent: -9pt; padding-left: 9pt">Weighted Average Discount Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.3</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.3</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2020, the maturities of lease liabilities were as follows:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Operating leases</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Year ending December 31,</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">649</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">568</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">484</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-align: left; text-indent: -9pt; padding-left: 9pt">2025 and thereafter</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,038</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Total lease payments</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,361</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Less - imputed interests</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(973</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Total</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,388</td><td style="text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS</b></font></p><br/>
25000
689000
181000
30000
8500
10000
3000
15000
633000
619000
331000
9000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Operating cash flows from operating leases</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">657</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">505</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
657000
505000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Operating Leases</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating lease right-of-use assets</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">2,796</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">3,215</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Current lease liabilities</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">440</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">455</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Non-current lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,948</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,139</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total lease liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,388</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,594</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-indent: -9pt; padding-left: 9pt">Weighted Average Remaining Lease Term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.5 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.4 years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-indent: -9pt; padding-left: 9pt">Weighted Average Discount Rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.3</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.3</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
</table>
2796000
3215000
440000
455000
2948000
3139000
3388000
3594000
P7Y6M
P8Y146D
0.073
0.073
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Operating leases</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Year ending December 31,</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">649</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">568</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">484</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-align: left; text-indent: -9pt; padding-left: 9pt">2025 and thereafter</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,038</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Total lease payments</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,361</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Less - imputed interests</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(973</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Total</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,388</td><td style="text-align: left"> </td></tr>
</table>
649000
622000
568000
484000
2038000
4361000
973000
3388000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
7 - COMMITMENTS</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Commitment to
pay royalties to the government of Israel</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company
received grants from the IIA for research and development funding until the year 2019,
and therefore is subject to the provisions of the Israeli Law for the Encouragement of Research, Development and Technological
Innovation in the Industry and the regulations and guidelines thereunder (the “Innovation Law”, formerly known as
the Law for the Encouragement of Research and Development in Industry). Under the Innovation Law the rate of royalties varies
between 3% to 5% computed based on the revenues from the products that their development was also funded by grants from the IIA.
In addition, revenues from certain milestone under the LB license, development and commercialization agreement were subject to
royalties rate of 24.8%. Such commitment is up to the amount of grants received (dollar linked), plus interest at annual rate
based on LIBOR. Pursuant to the Innovation Law there are restrictions regarding intellectual property and manufacturing outside
of Israel, unless approval is received, and additional payments are made to the IIA.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company did not apply for grants from the IIA since 2019. For the years ended December 31, 2020, 2019 and 2018, the Company recorded
royalties expenses of $795, $43 and $1,263, respectively.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
royalty expenses which are related to the funded project are recognized in the statements of comprehensive loss as a component
of cost of revenue.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2020, the maximum total royalty amount payable by the Company under IIA funding arrangement is approximately $8,500
(without interest).</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Contingent
liability</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On September 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 $434 (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 $521 (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. As of December 31, 2019, the Company has recorded
a provision of $145 in relation to the VAT assessment to general and administrative expenses. On February 11, 2020, the
Company reached a settlement agreement with the Israel Tax Authority, which was approved by the court. According to the settlement
agreement, in 2020, the Company paid in full a final amount of $116 to the Israel Tax Authority.</p><br/>
Under the Innovation Law the rate of royalties varies between 3% to 5% computed based on the revenues from the products that their development was also funded by grants from the IIA. In addition, revenues from certain milestone under the LB license, development and commercialization agreement were subject to royalties rate of 24.8%. Such commitment is up to the amount of grants received (dollar linked), plus interest at annual rate based on LIBOR.
795000
43000
1263000
8500000
434000
521000
145000
116000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 8 - LICENSE DEVELOPMENT AND COMMERCIALIZATION
AGREEMENTS</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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’s rhCollagen and BioInk.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the License Agreement, CollPlant granted to LB and its affiliates, an exclusive, perpetual, royalty-bearing and transferable
license of CollPlant’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.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 “Option Product”
and together with lungs, the “Covered Products”). 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’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.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
License Agreement provides that LB will purchase CollPlant’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’s rhCollagen
and BioInk and the parties have agreed that LB has the option to purchase consulting services for the design of the facility.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
License Agreement provides for the payment of an upfront cash payment of $5,000 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 $3,000 per Option Product ($9,000 in the aggregate), and up to $30,000 of milestone payments payable as follows: (i)
$5,000 upon completion of the U.S. facility design, (ii) $5,000 upon completion of production of a specified amount of BioInk,
and (iii) $5,000 for FDA marketing approval for each Covered Product (up to $20,000 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. </font></p><br/><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 14, 2020, LB exercised its option to cover a second lifesaving organ, human kidneys (one of the “Option Products”)
and paid CollPlant $3,000 for the option exercise, which was recognized as revenue in the statement of operation.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
option exercise granted LB an exclusive license to the Company’s technology for the production and use of rhCollagen-based
BioInk for 3D bioprinting of human kidneys.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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’ written
notice with respect to the entirety of the License Agreement and upon 30 days’ 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.On February 24, 2021, CollPlant received a notice of termination from LB of the License Agreement, effective as of March
26, 2021.</font></p><br/>
5000000
3000000
In addition, the License Agreement provides for a one-time non-refundable option payments of $3,000 per Option Product ($9,000 in the aggregate), and up to $30,000 of milestone payments payable as follows: (i) $5,000 upon completion of the U.S. facility design, (ii) $5,000 upon completion of production of a specified amount of BioInk, and (iii) $5,000 for FDA marketing approval for each Covered Product (up to $20,000 in the aggregate).
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
9 - SHARE CAPITAL</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ordinary shares</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Rights of the
Company’s ordinary shares</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
ordinary share is entitled to one vote. The holder of the ordinary shares is also entitled to receive dividends whenever funds
are legally available, when and if declared by the Board of Directors. Since its inception, the Company has not declared any dividends.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 31, 2018 the Company’s ADSs commenced trading on the Nasdaq Capital Market, under the symbol CLGN. Each ADS represents
one ordinary share.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; 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 5,000,000 ordinary shares to 15,000,000 ordinary shares, par value NIS 0.03 per share. On October 27
2019, the Company’s shareholders approved the increase of the authorized share capital of the Company by 15,000,000 ordinary
shares to 30,000,000 ordinary shares NIS 1.50 par value.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 6, 2019, at a general meeting of shareholders, the Company’s shareholders approved a reverse share split of the
Company’s ordinary shares at a ratio of 1-for-50, such that each fifty (50) ordinary shares, par value NIS 0.03 per share,
consolidated into one (1) ordinary share, par value NIS 1.50.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concurrently
with the reverse split, the Company effected a corresponding change in the ratio of ordinary shares to each of the Company’s
ADSs, such that its ratio of ADSs to ordinary shares changed from one (1) ADS representing fifty (50) ordinary shares to a new
ratio of one (1) ADS representing one (1) ordinary share. The first date when the Company’s ADSs began trading on the Nasdaq
Capital Market after implementation of the reverse split and concurrent ratio change was July 15, 2019.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
according to the share option plan of the Company, every 50 options, or 150 options if granted before the November 2016 reverse
split, that were allocated to directors, employees, consultants and officers under the option plan are exercisable into one ordinary
share of the Company of NIS 1.50 par value. No change took place in the exercise price of the options; however, for options that
were granted between November 2016 to date, the total exercise price for one share of NIS 1.50 par value will be the former exercise
price for one share of NIS 0.03 par value multiplied by 50 and, for options that were granted before the November 2016 reverse
split, the total exercise price for one share of NIS 1.50 par value will be the former exercise price for one share of NIS 0.01
par value multiplied by 150.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
according to the terms and conditions of the warrants of the Company, each 50 warrants that the Company issued are exercisable
into one ordinary share of the Company of NIS 1.50 par value. There will be no change in the exercise price of those warrants;
however, the total exercise price for one share of NIS 1.50 par value will be the former exercise price for one share of NIS 0.03
par value multiplied by 50.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 and ADS numbers, losses per share, share prices, options and warrants in these financial
statements have been adjusted, on a retroactive basis, to reflect this 1-for-50 reverse share split.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Changes in share
capital:</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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 (the “Alpha
Purchase Agreement”) with Alpha Capital Anstalt (“Alpha”), 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) at the first closing, which was completed on October 26, 2017, ordinary shares
and a Convertible Debenture (“Debenture”), for a purchase price of $2,000 (ii) 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’s shareholders, a
Debenture for a purchase price of $2,000, and (iii) at the third closing, which was completed
on April 30, 2018, which was subject, among other things, to the listing of the Company’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) (“Dual
Reporting Approval”), ordinary shares and/or a Debenture for a purchase price of $1,000,
and a warrant (the “Alpha Warrant”) to purchase 992,149 ordinary shares represented
by 992,149 ADSs exercisable for a period of five years from the date of issuance at an exercise
price of approximately $10.15 per ADS (calculated in accordance with the known representative
rate of exchange on the date of the notice of exercise).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 26, 2017, upon the completion of the first closing, the Company issued to Alpha 145,600 ordinary shares and
a Debenture in the principal amount of $1,375, for gross proceeds of $2,000. On December 31, 2017, upon completion of
the second closing, the Company issued a Debenture in the principal amount of $2,000 for gross proceeds of $2,000. The
Debentures were convertible at any time at the option of the holder into ADSs at a conversion price of $4.29 per ADS.
In addition, the Debenture was mandatorily convertible at the then effective conversion price without regard to any beneficial
ownership limitation if (i) the ADSs or the Company’s ordinary shares are approved for listing on the Nasdaq
stock market, and (ii) 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 were automatically converted
into a pre-paid warrant to purchase 786,455 ordinary shares represented by 786,455 ADSs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 198,430 ordinary shares represented by 198,430 ADSs and the Alpha Warrant to
purchase up to 992,149 ordinary shares represented by 992,149 ADSs, at an exercise price of $10.28 per ADS, for gross
proceeds of $1,000. In 2018, Alpha converted a pre-paid warrant to purchase 165,000 ordinary shares into 165,000 ordinary
shares, in 2019 Alpha converted a pre-paid warrant to purchase 50,000 ordinary shares into 50,000 ordinary shares and
in 2020 Alpha converted the remaining of the prepaid warrants and converted a pre-paid warrant to purchase 811,085 ordinary
shares into 811,085 ordinary shares.</font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 21,610 ordinary shares and Debentures convertible into 116,726 ordinary shares
in connection with services Alpha provided to the Company. These issuances, having a fair market value of $871, were accounted
as share-based compensation. $435 was recognized as an expense within “general, administrative and marketing expenses”
in the statements of comprehensive loss in each of the years 2017 and 2018.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. The anti-dilution was accounted as derivatives measured in fair value, see Note 3.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to
$4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being
reclassified from a financial liability to equity.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000 ADS in return of $2,600.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">b)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 8, 2017, the Company signed a securities purchase agreement (the “Meitav
Dash Purchase Agreement”) with Meitav Dash, a company held by Meitav Dash Ltd.,
one of the Company’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) at the first
closing, which was completed on December 26, 2017, 190,000 ordinary shares, for a purchase
price of $1,089, (ii) at the second closing, which was completed on the same day, 48,000
ordinary shares for a purchase price of $275 provided that Meitav Dash shall not be obligated
to buy or hold, immediately following the second closing, 20% or more of the Company’s
share capital, and (iii) at the third closing, which was completed on March 7, 2018 and
which was subject, among other things, to the listing of the Company’s ADSs for trading
on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable
into 238,000 ordinary shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company completed the first and second closings on December 26, 2017 which resulted in the issuance to Meitav Dash
of an aggregate of 238,000 ordinary shares for gross proceeds of $1,364 and on March 7, 2018, the Company completed the
third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 238,000 ordinary shares.</font></p></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrant may be exercised for a period of five years from issuance at an initial exercise price of
approximately $11.57 per ADS, subject to adjustment as further described below.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced
to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument
being reclassified from a financial liability to equity.</font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">c)
</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 9, 2017, the Company signed a securities purchase agreement (the “Sagy Purchase Agreement”) with
Ami Sagy, one of the Company’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) at the first closing, which closed on December 26, 2017, 186,000 ordinary shares, for gross proceeds
of $1,066, and (ii) at the second closing, which closed on March 7, 2018 and which was subject, among other things, to
the listing of the Company’s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration,
the Company will issue warrants exercisable into 186,000 of its ordinary shares.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company completed the first closing on December 26, 2017 which resulted in the issuance
to Ami Sagy of an aggregate of 186,000 ordinary shares for gross proceeds of $1,066 and on
March 7, 2018, the Company completed the second closing which resulted in the issuance to
Ami Sagy of a warrant to purchase 186,000 ordinary shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per
ADS, subject to adjustment as further described below.</font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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, see Note 3.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to
$4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being
reclassified from a financial liability to equity.</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">d)
</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement,
of an aggregate of 86,887 ordinary shares for total gross consideration of $634 to the following three investors: (i) Alpha
for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299;
and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25,
2018.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">e)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 20, 2018, the board of directors resolved to delist all of Company’s securities
from trading on the Tel Aviv Stock Exchange (“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, and 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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 16, 2018, the Company petitioned the District Court of Lod, Israel (the “Court”), to approve the convening
of a shareholders’ 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 approximately $5.7 each (the “Arrangement”). The holders of Series G Warrants and
Series H Warrants were not part to the Arrangement as such warrants expired before the expected date of the delisting
of the Company’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. </font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">f)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 11, 2018, following the Company’s board of directors and shareholders’ approval, the Company issued to Alpha
a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided
to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an
expense within “general, administrative and marketing expenses” in the statements of operations. </font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">g)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 26, 2018, the Company entered into a Securities Purchase Agreement with Ami Sagy, pursuant to which the Company
issued on July 31, 2018, in a private placement, 222,500 ordinary shares for an aggregate purchase price of $1,245.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">h)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 (12,000 ordinary shares)
in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019,
and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The
first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">i)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 30, 2019, the Company entered into an agreement with Ami Sagy and certain U.S. investors for the issuance of shares
and warrants in a form of a convertible loan agreements in the total amount of $6,500, as follows: (i) a convertible loan
agreement with Ami Sagy, its largest shareholder (the “Sagy Agreement”), pursuant to which Mr. Sagy will provide
a convertible loan to the Company in an amount of $3,000 in two tranches, and (ii) a convertible loan agreement with certain
U.S. investors (the “U.S. Agreement”, and, together with the Sagy Agreement, the “Agreements”), pursuant
to which such U.S. investors (the “U.S. Investors”) provided a loan to the Company in an amount of $3,500 in one
tranche.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Sagy Agreement provided that the transactions contemplated by the Sagy Agreement shall occur in three separate closings. On
the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of
$2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted
into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on
February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the
following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the
Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs
representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on
October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary
shares. The consideration of the third closing is included in the principal amount received in the first closing. </font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
U.S. Agreement provided that the transactions contemplated by the U.S. Agreement shall occur in two separate closings. On
the first closing date, which occurred on September 6, 2019, the U.S. Investors transferred to the Company the principal amount
of $3,500. On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount
invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion
price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing
875,000 ordinary shares.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the Company agreed to enter into Price Protection Agreements pursuant to which,
until the three-year anniversary of the first closing date, the Company shall issue additional
ADSs in the event of certain subsequent equity issuances at a price that is lower than $4.00
(subject to certain adjustments) on a “full-ratchet” basis with respect to their
holdings in the Company. The “full-ratchet” instruments are classified as financial
liability on the balance sheets and measures at fair value through profit or loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance
date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent
rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date,
in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price,
the exercise price shall adjust to such lower price</font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concurrently
with the execution of the Agreements, the Company entered into Registration Rights Agreements with each of Ami Sagy and the
U.S. Investors, pursuant to which the Company granted certain demand and piggyback registration rights with respect to the
ordinary shares represented by the ADSs underlying the convertible loans and warrants.</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 27, 2019, an extraordinary general meeting was held and the Company received the “shareholders’ approval”
and subsequently issued the ADSs and warrants as mentioned above.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company also issued an aggregate of 175,039 ADSs to Mr. Sagy, and Meitav Dash, and 250,000 ADSs and 20,000 prepaid warrant to
purchase up to 20,000 ADSs to Alpha in satisfaction of the price protection undertakings under the Alpha Purchase Agreement, the
Meitav Dash Purchase Agreement and the Sagy Purchase Agreement.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">J)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 14, 2020, the Company entered into a Securities Purchase Agreement with several accredited U.S. investors, pursuant
to which the Company issued on March 6, 2020, in a private placement, 445,000 ordinary shares for an aggregate purchase price
of $4,450.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Share-based compensation:</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Option
plan</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with an option plan for employees and consultants (the “Option Plan”), 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 1.50. 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 years from the allotment date will expire, unless the board of directors extends its validity.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Grants
to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section 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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
those who are not employees of the Company, and for the Company’s controlling shareholders (as defined in the Income
Tax Ordinance) options are granted in accordance with section 3(I) of the Income Tax Ordinance. </font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Options grants</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a.</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Option
granted to employees and directors </font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the years ended December 31, 2020, 2019 and 2018, the Company granted options as follows (amounts presented reflect the number
of shares issued if the options will be exercised):</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Award amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise price range</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Vesting period</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 51%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">317,909</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">194,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.12-11.06</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10 years</font></td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Award amount</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price range</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Vesting period</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Expiration</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 51%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">230,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5.07</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">301,390</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.02-$5.07</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Award amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise price Range*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Vesting period</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">93,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5.87</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7.74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise price range
before reduction of exercise price as of October 27, 2019</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Value
of one ordinary share</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.86-10.5</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.7-$5.93</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.34-$7.83</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; ">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 67%; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend
yield</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected
volatility</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">66.12-66.41</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="white-space: nowrap; border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">61.31%-62.56</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">62.63</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; ">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free
interest rate</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.45-0.52</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected
term</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.11
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4-5.5
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value of options granted during 2020, 2019 and 2018 was $2,952, $1,602 and $621, respectively.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
total unrecognized compensation cost of employee options at December 31, 2020 is $1,853, which is expected to be recognized
over a weighted average period of 1.82 year.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Modification
of share-based compensation</i></font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 27, 2019, the Company’s board of directors approved the reduction of the exercise price of 305,342 outstanding options
previously granted to employees to a price of $4.02 per share.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2019 an extraordinary general meeting of the shareholders of the Company, approved a reduction of the exercise price
of 171,287 options held by the Company’s directors and the Chief Executive Officer to a price of $4.02 per share.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
reduction of exercise price of the options was considered a Type I modification for share-based compensation, and, as a result,
during the year ended December 31, 2019, the Company recorded additional compensation expense in the amount of $365.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
total incremental fair value of these options amounted to $478 and was determined based on the Black-Scholes pricing options model
using the following assumptions: risk free interest rate of 1.6%, expected volatility of 49% - 74%, expected term
of 0.4-5.9 years and dividend yield of 0%. The incremental fair value of the fully vested options as of October 27, 2019
in the amount of $341 was recognized immediately. The remaining incremental fair value will be recognized over the remaining vesting
period and until March 2022.</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes the number of options granted to employees under the Option Plan for the years ended December 31,
2020, 2019 and 2018, and related information:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: left; text-indent: -9pt; padding-left: 9pt">Options outstanding at the beginning of the year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">721,361</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4.38</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">512,615</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15.09</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">385,115</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">17.68</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">512,622</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10.33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">531,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.09</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">156,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7.55</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20,245</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,076</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.30</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,891</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23.83</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,500</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24.01</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,961</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.93</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(304,677</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5.84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.42</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options outstanding at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,198,777</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.88</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">721,361</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.38</td><td style="padding-bottom: 4pt; text-align: left">*</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">512,615</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">15.09</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options exercisable at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">477,611</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.25</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">310,093</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.02</td><td style="padding-bottom: 4pt; text-align: left">*</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">211,906</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">20.28</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After repricing-
see Note 9 - (B)(2)(a).</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">b.</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Option
granted to non-employees</font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value of options granted to non-employees in 2019 and 2018 were $16 and $13, respectively. The underlying data used for computing
the fair value of the options are as follows:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Value of one ordinary share</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">-</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">5.93</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">5.36</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Dividend yield</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Expected volatility</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">62</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">58</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Risk-free interest rate</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Expected term</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes the number of options granted to non-employees under the Option Plan for the years ended December 31,
2020, 2019 and 2018, and related information. Amounts presented reflect the number of shares issued if the options will be
exercised:</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: left; text-indent: -9pt; padding-left: 9pt">Options outstanding at the beginning of the year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">23,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">27.44</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">18,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">33.44</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">13,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">43.52</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.07</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.87</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,250</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.07</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Expired</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,332</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">61.85</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options outstanding at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">18,082</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">17.97</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">23,664</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">27.44</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">18,664</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">33.44</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options exercisable at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,057</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">18.42</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">10,202</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">46.03</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,165</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">51.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following tables summarize information concerning outstanding and exercisable options as of December 31, 2020:</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options outstanding</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise prices *</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of <br/> options <br/> outstanding <br/> at end of year</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> average <br/> remaining <br/> contractual Life</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of <br/> options <br/> exercisable <br/> at end of year</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> average <br/> remaining <br/> contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: right">$</td><td style="width: 18%; text-align: right">65.06</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">1,333</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">0.13</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">1,333</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">0.13</td><td style="width: 1%; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">64.85</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,333</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">0.13</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,333</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">0.13</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">27.99</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">6,666</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.38</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,329</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.33</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">6.84</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">5,000</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.33</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">11.06</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">162,713</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.11</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">10.08</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">309,409</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.41</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">9.12</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">32,000</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.66</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">5.07</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">239,250</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">2.65</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">103,963</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1.48</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: right">$</td><td style="padding-bottom: 1.5pt; text-align: right">4.02</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">459,155</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">4.07</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">357,217</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">4.02</td><td style="padding-bottom: 1.5pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: right">1,216,859</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In U.S. dollars
per Ordinary Share.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">c.</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The aggregate intrinsic
value of the total exercisable options as of December 31, 2020 is approximately $2,882. The aggregate intrinsic value of the
options exercised in 2020 is approximately $114.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 96px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">d.</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table
illustrates the effect of share-based compensation on the statements of operations:</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-indent: -9pt; padding-left: 9pt">Cost of revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">66</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">464</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">457</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">General, administrative and marketing expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,075</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">576</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">977</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,605</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,125</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,434</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/>
5000000
15000000
15000000
the Company’s shareholders approved a reverse share split of the Company’s ordinary shares at a ratio of 1-for-50, such that each fifty (50) ordinary shares, par value NIS 0.03 per share, consolidated into one (1) ordinary share, par value NIS 1.50. Concurrently with the reverse split, the Company effected a corresponding change in the ratio of ordinary shares to each of the Company’s ADSs, such that its ratio of ADSs to ordinary shares changed from one (1) ADS representing fifty (50) ordinary shares to a new ratio of one (1) ADS representing one (1) ordinary share. The first date when the Company’s ADSs began trading on the Nasdaq Capital Market after implementation of the reverse split and concurrent ratio change was July 15, 2019.
every 50 options, or 150 options if granted before the November 2016 reverse split, that were allocated to directors, employees, consultants and officers under the option plan are exercisable into one ordinary share of the Company of NIS 1.50 par value. No change took place in the exercise price of the options; however, for options that were granted between November 2016 to date, the total exercise price for one share of NIS 1.50 par value will be the former exercise price for one share of NIS 0.03 par value multiplied by 50 and, for options that were granted before the November 2016 reverse split, the total exercise price for one share of NIS 1.50 par value will be the former exercise price for one share of NIS 0.01 par value multiplied by 150.
each 50 warrants that the Company issued are exercisable into one ordinary share of the Company of NIS 1.50 par value. There will be no change in the exercise price of those warrants; however, the total exercise price for one share of NIS 1.50 par value will be the former exercise price for one share of NIS 0.03 par value multiplied by 50.
Unless otherwise indicated, all of the share and ADS numbers, losses per share, share prices, options and warrants in these financial statements have been adjusted, on a retroactive basis, to reflect this 1-for-50 reverse share split.
a) On September 6, 2017, the Company signed a securities purchase agreement (the “Alpha Purchase Agreement”) with Alpha Capital Anstalt (“Alpha”), 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) at the first closing, which was completed on October 26, 2017, ordinary shares and a Convertible Debenture (“Debenture”), for a purchase price of $2,000 (ii) 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’s shareholders, a Debenture for a purchase price of $2,000, and (iii) at the third closing, which was completed on April 30, 2018, which was subject, among other things, to the listing of the Company’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) (“Dual Reporting Approval”), ordinary shares and/or a Debenture for a purchase price of $1,000, and a warrant (the “Alpha Warrant”) to purchase 992,149 ordinary shares represented by 992,149 ADSs exercisable for a period of five years from the date of issuance at an exercise price of approximately $10.15 per ADS (calculated in accordance with the known representative rate of exchange on the date of the notice of exercise). On October 26, 2017, upon the completion of the first closing, the Company issued to Alpha 145,600 ordinary shares and a Debenture in the principal amount of $1,375, for gross proceeds of $2,000. On December 31, 2017, upon completion of the second closing, the Company issued a Debenture in the principal amount of $2,000 for gross proceeds of $2,000. The Debentures were convertible at any time at the option of the holder into ADSs at a conversion price of $4.29 per ADS. In addition, the Debenture was mandatorily convertible at the then effective conversion price without regard to any beneficial ownership limitation if (i) the ADSs or the Company’s ordinary shares are approved for listing on the Nasdaq stock market, and (ii) 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 were automatically converted into a pre-paid warrant to purchase 786,455 ordinary shares represented by 786,455 ADSs. 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 198,430 ordinary shares represented by 198,430 ADSs and the Alpha Warrant to purchase up to 992,149 ordinary shares represented by 992,149 ADSs, at an exercise price of $10.28 per ADS, for gross proceeds of $1,000. In 2018, Alpha converted a pre-paid warrant to purchase 165,000 ordinary shares into 165,000 ordinary shares, in 2019 Alpha converted a pre-paid warrant to purchase 50,000 ordinary shares into 50,000 ordinary shares and in 2020 Alpha converted the remaining of the prepaid warrants and converted a pre-paid warrant to purchase 811,085 ordinary shares into 811,085 ordinary shares. 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 21,610 ordinary shares and Debentures convertible into 116,726 ordinary shares in connection with services Alpha provided to the Company. These issuances, having a fair market value of $871, were accounted as share-based compensation. $435 was recognized as an expense within “general, administrative and marketing expenses” in the statements of comprehensive loss in each of the years 2017 and 2018. 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. The anti-dilution was accounted as derivatives measured in fair value, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. In the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000 ADS in return of $2,600. b) On November 8, 2017, the Company signed a securities purchase agreement (the “Meitav Dash Purchase Agreement”) with Meitav Dash, a company held by Meitav Dash Ltd., one of the Company’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) at the first closing, which was completed on December 26, 2017, 190,000 ordinary shares, for a purchase price of $1,089, (ii) at the second closing, which was completed on the same day, 48,000 ordinary shares for a purchase price of $275 provided that Meitav Dash shall not be obligated to buy or hold, immediately following the second closing, 20% or more of the Company’s share capital, and (iii) at the third closing, which was completed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable into 238,000 ordinary shares. The Company completed the first and second closings on December 26, 2017 which resulted in the issuance to Meitav Dash of an aggregate of 238,000 ordinary shares for gross proceeds of $1,364 and on March 7, 2018, the Company completed the third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 238,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. c) On November 9, 2017, the Company signed a securities purchase agreement (the “Sagy Purchase Agreement”) with Ami Sagy, one of the Company’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) at the first closing, which closed on December 26, 2017, 186,000 ordinary shares, for gross proceeds of $1,066, and (ii) at the second closing, which closed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration, the Company will issue warrants exercisable into 186,000 of its ordinary shares. The Company completed the first closing on December 26, 2017 which resulted in the issuance to Ami Sagy of an aggregate of 186,000 ordinary shares for gross proceeds of $1,066 and on March 7, 2018, the Company completed the second closing which resulted in the issuance to Ami Sagy of a warrant to purchase 186,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. d) On January 18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 86,887 ordinary shares for total gross consideration of $634 to the following three investors: (i) Alpha for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299; and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25, 2018. e) On March 20, 2018, the board of directors resolved to delist all of Company’s securities from trading on the Tel Aviv Stock Exchange (“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, and 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. On April 16, 2018, the Company petitioned the District Court of Lod, Israel (the “Court”), to approve the convening of a shareholders’ 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 approximately $5.7 each (the “Arrangement”). The holders of Series G Warrants and Series H Warrants were not part to the Arrangement as such warrants expired before the expected date of the delisting of the Company’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. f) On July 11, 2018, following the Company’s board of directors and shareholders’ approval, the Company issued to Alpha a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an expense within “general, administrative and marketing expenses” in the statements of operations. g) On July 26, 2018, the Company entered into a Securities Purchase Agreement with Ami Sagy, pursuant to which the Company issued on July 31, 2018, in a private placement, 222,500 ordinary shares for an aggregate purchase price of $1,245. h) 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 (12,000 ordinary shares) in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019, and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020. i) On August 30, 2019, the Company entered into an agreement with Ami Sagy and certain U.S. investors for the issuance of shares and warrants in a form of a convertible loan agreements in the total amount of $6,500, as follows: (i) a convertible loan agreement with Ami Sagy, its largest shareholder (the “Sagy Agreement”), pursuant to which Mr. Sagy will provide a convertible loan to the Company in an amount of $3,000 in two tranches, and (ii) a convertible loan agreement with certain U.S. investors (the “U.S. Agreement”, and, together with the Sagy Agreement, the “Agreements”), pursuant to which such U.S. investors (the “U.S. Investors”) provided a loan to the Company in an amount of $3,500 in one tranche. The Sagy Agreement provided that the transactions contemplated by the Sagy Agreement shall occur in three separate closings. On the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of $2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary shares. The consideration of the third closing is included in the principal amount received in the first closing. The U.S. Agreement provided that the transactions contemplated by the U.S. Agreement shall occur in two separate closings. On the first closing date, which occurred on September 6, 2019, the U.S. Investors transferred to the Company the principal amount of $3,500. On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing 875,000 ordinary shares. In addition, the Company agreed to enter into Price Protection Agreements pursuant to which, until the three-year anniversary of the first closing date, the Company shall issue additional ADSs in the event of certain subsequent equity issuances at a price that is lower than $4.00 (subject to certain adjustments) on a “full-ratchet” basis with respect to their holdings in the Company. The “full-ratchet” instruments are classified as financial liability on the balance sheets and measures at fair value through profit or loss. The warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date, in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price, the exercise price shall adjust to such lower price Concurrently with the execution of the Agreements, the Company entered into Registration Rights Agreements with each of Ami Sagy and the U.S. Investors, pursuant to which the Company granted certain demand and piggyback registration rights with respect to the ordinary shares represented by the ADSs underlying the convertible loans and warrants. On October 27, 2019, an extraordinary general meeting was held and the Company received the “shareholders’ approval” and subsequently issued the ADSs and warrants as mentioned above. The Company also issued an aggregate of 175,039 ADSs to Mr. Sagy, and Meitav Dash, and 250,000 ADSs and 20,000 prepaid warrant to purchase up to 20,000 ADSs to Alpha in satisfaction of the price protection undertakings under the Alpha Purchase Agreement, the Meitav Dash Purchase Agreement and the Sagy Purchase Agreement. J) On February 14, 2020, the Company entered into a Securities Purchase Agreement with several accredited U.S. investors, pursuant to which the Company issued on March 6, 2020, in a private placement, 445,000 ordinary shares for an aggregate purchase price of $4,450. B. Share-based compensation: 1) Option plan In accordance with an option plan for employees and consultants (the “Option Plan”), 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 1.50. 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 years from the allotment date will expire, unless the board of directors extends its validity. Grants to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section 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. For those who are not employees of the Company, and for the Company’s controlling shareholders (as defined in the Income Tax Ordinance) options are granted in accordance with section 3(I) of the Income Tax Ordinance. 2) Options grants a. Option granted to employees and directors In the years ended December 31, 2020, 2019 and 2018, the Company granted options as follows (amounts presented reflect the number of shares issued if the options will be exercised): Year ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees 317,909 $10.08 4 years 10 years Directors 194,713 $9.12-11.06 4 years 10 years Year ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees 230,000 $5.07 4 years 7 years Directors 301,390 $4.02-$5.07 4 years 7 years Year ended December 31, 2018 Award amount Exercise price Range* Vesting period Expiration Employees 93,000 $5.87 4 years 7 years Directors 63,000 $7.74 4 years 7 years * Exercise price range before reduction of exercise price as of October 27, 2019 2020 2019 2018 Value of one ordinary share $ 7.86-10.5 $ 5.7-$5.93 $ 5.34-$7.83 Dividend yield 0 % 0 % 0 % Expected volatility 66.12-66.41 % 61.31%-62.56 % 62.63 % Risk-free interest rate 0.45-0.52 % 2 % 2 % Expected term 6.11 years 4-5.5 years 4 years The fair value of options granted during 2020, 2019 and 2018 was $2,952, $1,602 and $621, respectively. The total unrecognized compensation cost of employee options at December 31, 2020 is $1,853, which is expected to be recognized over a weighted average period of 1.82 year. Modification of share-based compensation On October 27, 2019, the Company’s board of directors approved the reduction of the exercise price of 305,342 outstanding options previously granted to employees to a price of $4.02 per share. On December 31, 2019 an extraordinary general meeting of the shareholders of the Company, approved a reduction of the exercise price of 171,287 options held by the Company’s directors and the Chief Executive Officer to a price of $4.02 per share. The reduction of exercise price of the options was considered a Type I modification for share-based compensation, and, as a result, during the year ended December 31, 2019, the Company recorded additional compensation expense in the amount of $365. The total incremental fair value of these options amounted to $478 and was determined based on the Black-Scholes pricing options model using the following assumptions: risk free interest rate of 1.6%, expected volatility of 49% - 74%, expected term of 0.4-5.9 years and dividend yield of 0%. The incremental fair value of the fully vested options as of October 27, 2019 in the amount of $341 was recognized immediately. The remaining incremental fair value will be recognized over the remaining vesting period and until March 2022. The following table summarizes the number of options granted to employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 721,361 $4.38 512,615 $15.09 385,115 $17.68 Granted 512,622 10.33 531,390 5.09 156,000 7.55 Exercised (20,245) 4.13 (6,076) 1.30 - - Expired - - (11,891) 23.83 (2,500) 24.01 Forfeited (14,961) 7.93 (304,677) 5.84 (26,000) 7.42 Options outstanding at the end of the year 1,198,777 6.88 721,361 $4.38* 512,615 $15.09 Options exercisable at the end of the year 477,611 $4.25 310,093 $4.02* 211,906 $20.28 * After repricing- see Note 9 - (B)(2)(a). b. Option granted to non-employees The fair value of options granted to non-employees in 2019 and 2018 were $16 and $13, respectively. The underlying data used for computing the fair value of the options are as follows: 2020 2019 2018 Value of one ordinary share $- $5.93 5.36 Dividend yield - 0% 0% Expected volatility - 62% 58% Risk-free interest rate - 2% 2% Expected term - 4 years 4 years The following table summarizes the number of options granted to non-employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information. Amounts presented reflect the number of shares issued if the options will be exercised: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 23,664 $27.44 18,664 $33.44 13,664 $43.52 Granted - - 5,000 5.07 5,000 5.87 Exercised (1,250) 5.07 - - - - Expired (4,332) 61.85 - - - - Options outstanding at the end of the year 18,082 $17.97 23,664 $27.44 18,664 $33.44 Options exercisable at the end of the year 8,057 $18.42 10,202 $46.03 8,165 $51.21 The following tables summarize information concerning outstanding and exercisable options as of December 31, 2020: December 31,2020 Options outstanding Options exercisable Exercise prices * Number of options outstanding at end of year Weighted average remaining contractual Life Number of options exercisable at end of year Weighted average remaining contractual life $65.06 1,333 0.13 1,333 0.13 64.85 1,333 0.13 1,333 0.13 27.99 6,666 4.38 1,329 4.33 6.84 5,000 4.33 - - 11.06 162,713 9.11 - - 10.08 309,409 9.41 - - 9.12 32,000 9.66 - - 5.07 239,250 2.65 103,963 1.48 $4.02 459,155 4.07 357,217 4.02 1,216,859 * In U.S. dollars per Ordinary Share. c. The aggregate intrinsic value of the total exercisable options as of December 31, 2020 is approximately $2,882. The aggregate intrinsic value of the options exercised in 2020 is approximately $114. d.
145600
1375000
2000000
2000000
2000000
4.29
3375000
786455
786455
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 198,430 ordinary shares represented by 198,430 ADSs and the Alpha Warrant to purchase up to 992,149 ordinary shares represented by 992,149 ADSs, at an exercise price of $10.28 per ADS, for gross proceeds of $1,000. In 2018, Alpha converted a pre-paid warrant to purchase 165,000 ordinary shares into 165,000 ordinary shares, in 2019 Alpha converted a pre-paid warrant to purchase 50,000 ordinary shares into 50,000 ordinary shares and in 2020 Alpha converted the remaining of the prepaid warrants and converted a pre-paid warrant to purchase 811,085 ordinary shares into 811,085 ordinary shares
811085
811085
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 21,610 ordinary shares and Debentures convertible into 116,726 ordinary shares in connection with services Alpha provided to the Company. These issuances, having a fair market value of $871, were accounted as share-based compensation. $435 was recognized as an expense within “general, administrative and marketing expenses” in the statements of comprehensive loss in each of the years 2017 and 2018. 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. The anti-dilution was accounted as derivatives measured in fair value, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. In the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000 ADS in return of $2,600. b) On November 8, 2017, the Company signed a securities purchase agreement (the “Meitav Dash Purchase Agreement”) with Meitav Dash, a company held by Meitav Dash Ltd., one of the Company’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) at the first closing, which was completed on December 26, 2017, 190,000 ordinary shares, for a purchase price of $1,089, (ii) at the second closing, which was completed on the same day, 48,000 ordinary shares for a purchase price of $275 provided that Meitav Dash shall not be obligated to buy or hold, immediately following the second closing, 20% or more of the Company’s share capital, and (iii) at the third closing, which was completed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable into 238,000 ordinary shares. The Company completed the first and second closings on December 26, 2017 which resulted in the issuance to Meitav Dash of an aggregate of 238,000 ordinary shares for gross proceeds of $1,364 and on March 7, 2018, the Company completed the third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 238,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. c) On November 9, 2017, the Company signed a securities purchase agreement (the “Sagy Purchase Agreement”) with Ami Sagy, one of the Company’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) at the first closing, which closed on December 26, 2017, 186,000 ordinary shares, for gross proceeds of $1,066, and (ii) at the second closing, which closed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration, the Company will issue warrants exercisable into 186,000 of its ordinary shares. The Company completed the first closing on December 26, 2017 which resulted in the issuance to Ami Sagy of an aggregate of 186,000 ordinary shares for gross proceeds of $1,066 and on March 7, 2018, the Company completed the second closing which resulted in the issuance to Ami Sagy of a warrant to purchase 186,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. d) On January 18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 86,887 ordinary shares for total gross consideration of $634 to the following three investors: (i) Alpha for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299; and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25, 2018. e) On March 20, 2018, the board of directors resolved to delist all of Company’s securities from trading on the Tel Aviv Stock Exchange (“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, and 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. On April 16, 2018, the Company petitioned the District Court of Lod, Israel (the “Court”), to approve the convening of a shareholders’ 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 approximately $5.7 each (the “Arrangement”). The holders of Series G Warrants and Series H Warrants were not part to the Arrangement as such warrants expired before the expected date of the delisting of the Company’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. f) On July 11, 2018, following the Company’s board of directors and shareholders’ approval, the Company issued to Alpha a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an expense within “general, administrative and marketing expenses” in the statements of operations. g) On July 26, 2018, the Company entered into a Securities Purchase Agreement with Ami Sagy, pursuant to which the Company issued on July 31, 2018, in a private placement, 222,500 ordinary shares for an aggregate purchase price of $1,245. h) 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 (12,000 ordinary shares) in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019, and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020. i) On August 30, 2019, the Company entered into an agreement with Ami Sagy and certain U.S. investors for the issuance of shares and warrants in a form of a convertible loan agreements in the total amount of $6,500, as follows: (i) a convertible loan agreement with Ami Sagy, its largest shareholder (the “Sagy Agreement”), pursuant to which Mr. Sagy will provide a convertible loan to the Company in an amount of $3,000 in two tranches, and (ii) a convertible loan agreement with certain U.S. investors (the “U.S. Agreement”, and, together with the Sagy Agreement, the “Agreements”), pursuant to which such U.S. investors (the “U.S. Investors”) provided a loan to the Company in an amount of $3,500 in one tranche. The Sagy Agreement provided that the transactions contemplated by the Sagy Agreement shall occur in three separate closings. On the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of $2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary shares. The consideration of the third closing is included in the principal amount received in the first closing. The U.S. Agreement provided that the transactions contemplated by the U.S. Agreement shall occur in two separate closings. On the first closing date, which occurred on September 6, 2019, the U.S. Investors transferred to the Company the principal amount of $3,500. On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing 875,000 ordinary shares. In addition, the Company agreed to enter into Price Protection Agreements pursuant to which, until the three-year anniversary of the first closing date, the Company shall issue additional ADSs in the event of certain subsequent equity issuances at a price that is lower than $4.00 (subject to certain adjustments) on a “full-ratchet” basis with respect to their holdings in the Company. The “full-ratchet” instruments are classified as financial liability on the balance sheets and measures at fair value through profit or loss. The warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date, in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price, the exercise price shall adjust to such lower price Concurrently with the execution of the Agreements, the Company entered into Registration Rights Agreements with each of Ami Sagy and the U.S. Investors, pursuant to which the Company granted certain demand and piggyback registration rights with respect to the ordinary shares represented by the ADSs underlying the convertible loans and warrants. On October 27, 2019, an extraordinary general meeting was held and the Company received the “shareholders’ approval” and subsequently issued the ADSs and warrants as mentioned above. The Company also issued an aggregate of 175,039 ADSs to Mr. Sagy, and Meitav Dash, and 250,000 ADSs and 20,000 prepaid warrant to purchase up to 20,000 ADSs to Alpha in satisfaction of the price protection undertakings under the Alpha Purchase Agreement, the Meitav Dash Purchase Agreement and the Sagy Purchase Agreement. J) On February 14, 2020, the Company entered into a Securities Purchase Agreement with several accredited U.S. investors, pursuant to which the Company issued on March 6, 2020, in a private placement, 445,000 ordinary shares for an aggregate purchase price of $4,450. B. Share-based compensation: 1) Option plan In accordance with an option plan for employees and consultants (the “Option Plan”), 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 1.50. 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 years from the allotment date will expire, unless the board of directors extends its validity. Grants to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section 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. For those who are not employees of the Company, and for the Company’s controlling shareholders (as defined in the Income Tax Ordinance) options are granted in accordance with section 3(I) of the Income Tax Ordinance. 2) Options grants a. Option granted to employees and directors In the years ended December 31, 2020, 2019 and 2018, the Company granted options as follows (amounts presented reflect the number of shares issued if the options will be exercised): Year ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees 317,909 $10.08 4 years 10 years Directors 194,713 $9.12-11.06 4 years 10 years Year ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees 230,000 $5.07 4 years 7 years Directors 301,390 $4.02-$5.07 4 years 7 years Year ended December 31, 2018 Award amount Exercise price Range* Vesting period Expiration Employees 93,000 $5.87 4 years 7 years Directors 63,000 $7.74 4 years 7 years * Exercise price range before reduction of exercise price as of October 27, 2019 2020 2019 2018 Value of one ordinary share $ 7.86-10.5 $ 5.7-$5.93 $ 5.34-$7.83 Dividend yield 0 % 0 % 0 % Expected volatility 66.12-66.41 % 61.31%-62.56 % 62.63 % Risk-free interest rate 0.45-0.52 % 2 % 2 % Expected term 6.11 years 4-5.5 years 4 years The fair value of options granted during 2020, 2019 and 2018 was $2,952, $1,602 and $621, respectively. The total unrecognized compensation cost of employee options at December 31, 2020 is $1,853, which is expected to be recognized over a weighted average period of 1.82 year. Modification of share-based compensation On October 27, 2019, the Company’s board of directors approved the reduction of the exercise price of 305,342 outstanding options previously granted to employees to a price of $4.02 per share. On December 31, 2019 an extraordinary general meeting of the shareholders of the Company, approved a reduction of the exercise price of 171,287 options held by the Company’s directors and the Chief Executive Officer to a price of $4.02 per share. The reduction of exercise price of the options was considered a Type I modification for share-based compensation, and, as a result, during the year ended December 31, 2019, the Company recorded additional compensation expense in the amount of $365. The total incremental fair value of these options amounted to $478 and was determined based on the Black-Scholes pricing options model using the following assumptions: risk free interest rate of 1.6%, expected volatility of 49% - 74%, expected term of 0.4-5.9 years and dividend yield of 0%. The incremental fair value of the fully vested options as of October 27, 2019 in the amount of $341 was recognized immediately. The remaining incremental fair value will be recognized over the remaining vesting period and until March 2022. The following table summarizes the number of options granted to employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 721,361 $4.38 512,615 $15.09 385,115 $17.68 Granted 512,622 10.33 531,390 5.09 156,000 7.55 Exercised (20,245) 4.13 (6,076) 1.30 - - Expired - - (11,891) 23.83 (2,500) 24.01 Forfeited (14,961) 7.93 (304,677) 5.84 (26,000) 7.42 Options outstanding at the end of the year 1,198,777 6.88 721,361 $4.38* 512,615 $15.09 Options exercisable at the end of the year 477,611 $4.25 310,093 $4.02* 211,906 $20.28 * After repricing- see Note 9 - (B)(2)(a). b. Option granted to non-employees The fair value of options granted to non-employees in 2019 and 2018 were $16 and $13, respectively. The underlying data used for computing the fair value of the options are as follows: 2020 2019 2018 Value of one ordinary share $- $5.93 5.36 Dividend yield - 0% 0% Expected volatility - 62% 58% Risk-free interest rate - 2% 2% Expected term - 4 years 4 years The following table summarizes the number of options granted to non-employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information. Amounts presented reflect the number of shares issued if the options will be exercised: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 23,664 $27.44 18,664 $33.44 13,664 $43.52 Granted - - 5,000 5.07 5,000 5.87 Exercised (1,250) 5.07 - - - - Expired (4,332) 61.85 - - - - Options outstanding at the end of the year 18,082 $17.97 23,664 $27.44 18,664 $33.44 Options exercisable at the end of the year 8,057 $18.42 10,202 $46.03 8,165 $51.21 The following tables summarize information concerning outstanding and exercisable options as of December 31, 2020: December 31,2020 Options outstanding Options exercisable Exercise prices * Number of options outstanding at end of year Weighted average remaining contractual Life Number of options exercisable at end of year Weighted average remaining contractual life $65.06 1,333 0.13 1,333 0.13 64.85 1,333 0.13 1,333 0.13 27.99 6,666 4.38 1,329 4.33 6.84 5,000 4.33 - - 11.06 162,713 9.11 - - 10.08 309,409 9.41 - - 9.12 32,000 9.66 - - 5.07 239,250 2.65 103,963 1.48 $4.02 459,155 4.07 357,217 4.02 1,216,859 * In U.S. dollars per Ordinary Share. c. The aggregate intrinsic value of the total exercisable options as of December 31, 2020 is approximately $2,882. The aggregate intrinsic value of the options exercised in 2020 is approximately $114. d.
871000
435000
4.00
In the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000 ADS in return of $2,600. b) On November 8, 2017, the Company signed a securities purchase agreement (the “Meitav Dash Purchase Agreement”) with Meitav Dash, a company held by Meitav Dash Ltd., one of the Company’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) at the first closing, which was completed on December 26, 2017, 190,000 ordinary shares, for a purchase price of $1,089, (ii) at the second closing, which was completed on the same day, 48,000 ordinary shares for a purchase price of $275 provided that Meitav Dash shall not be obligated to buy or hold, immediately following the second closing, 20% or more of the Company’s share capital, and (iii) at the third closing, which was completed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable into 238,000 ordinary shares. The Company completed the first and second closings on December 26, 2017 which resulted in the issuance to Meitav Dash of an aggregate of 238,000 ordinary shares for gross proceeds of $1,364 and on March 7, 2018, the Company completed the third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 238,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. c) On November 9, 2017, the Company signed a securities purchase agreement (the “Sagy Purchase Agreement”) with Ami Sagy, one of the Company’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) at the first closing, which closed on December 26, 2017, 186,000 ordinary shares, for gross proceeds of $1,066, and (ii) at the second closing, which closed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration, the Company will issue warrants exercisable into 186,000 of its ordinary shares. The Company completed the first closing on December 26, 2017 which resulted in the issuance to Ami Sagy of an aggregate of 186,000 ordinary shares for gross proceeds of $1,066 and on March 7, 2018, the Company completed the second closing which resulted in the issuance to Ami Sagy of a warrant to purchase 186,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. d) On January 18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 86,887 ordinary shares for total gross consideration of $634 to the following three investors: (i) Alpha for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299; and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25, 2018. e) On March 20, 2018, the board of directors resolved to delist all of Company’s securities from trading on the Tel Aviv Stock Exchange (“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, and 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. On April 16, 2018, the Company petitioned the District Court of Lod, Israel (the “Court”), to approve the convening of a shareholders’ 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 approximately $5.7 each (the “Arrangement”). The holders of Series G Warrants and Series H Warrants were not part to the Arrangement as such warrants expired before the expected date of the delisting of the Company’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. f) On July 11, 2018, following the Company’s board of directors and shareholders’ approval, the Company issued to Alpha a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an expense within “general, administrative and marketing expenses” in the statements of operations. g) On July 26, 2018, the Company entered into a Securities Purchase Agreement with Ami Sagy, pursuant to which the Company issued on July 31, 2018, in a private placement, 222,500 ordinary shares for an aggregate purchase price of $1,245. h) 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 (12,000 ordinary shares) in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019, and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020. i) On August 30, 2019, the Company entered into an agreement with Ami Sagy and certain U.S. investors for the issuance of shares and warrants in a form of a convertible loan agreements in the total amount of $6,500, as follows: (i) a convertible loan agreement with Ami Sagy, its largest shareholder (the “Sagy Agreement”), pursuant to which Mr. Sagy will provide a convertible loan to the Company in an amount of $3,000 in two tranches, and (ii) a convertible loan agreement with certain U.S. investors (the “U.S. Agreement”, and, together with the Sagy Agreement, the “Agreements”), pursuant to which such U.S. investors (the “U.S. Investors”) provided a loan to the Company in an amount of $3,500 in one tranche. The Sagy Agreement provided that the transactions contemplated by the Sagy Agreement shall occur in three separate closings. On the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of $2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary shares. The consideration of the third closing is included in the principal amount received in the first closing. The U.S. Agreement provided that the transactions contemplated by the U.S. Agreement shall occur in two separate closings. On the first closing date, which occurred on September 6, 2019, the U.S. Investors transferred to the Company the principal amount of $3,500. On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing 875,000 ordinary shares. In addition, the Company agreed to enter into Price Protection Agreements pursuant to which, until the three-year anniversary of the first closing date, the Company shall issue additional ADSs in the event of certain subsequent equity issuances at a price that is lower than $4.00 (subject to certain adjustments) on a “full-ratchet” basis with respect to their holdings in the Company. The “full-ratchet” instruments are classified as financial liability on the balance sheets and measures at fair value through profit or loss. The warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date, in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price, the exercise price shall adjust to such lower price Concurrently with the execution of the Agreements, the Company entered into Registration Rights Agreements with each of Ami Sagy and the U.S. Investors, pursuant to which the Company granted certain demand and piggyback registration rights with respect to the ordinary shares represented by the ADSs underlying the convertible loans and warrants. On October 27, 2019, an extraordinary general meeting was held and the Company received the “shareholders’ approval” and subsequently issued the ADSs and warrants as mentioned above. The Company also issued an aggregate of 175,039 ADSs to Mr. Sagy, and Meitav Dash, and 250,000 ADSs and 20,000 prepaid warrant to purchase up to 20,000 ADSs to Alpha in satisfaction of the price protection undertakings under the Alpha Purchase Agreement, the Meitav Dash Purchase Agreement and the Sagy Purchase Agreement. J) On February 14, 2020, the Company entered into a Securities Purchase Agreement with several accredited U.S. investors, pursuant to which the Company issued on March 6, 2020, in a private placement, 445,000 ordinary shares for an aggregate purchase price of $4,450. B. Share-based compensation: 1) Option plan In accordance with an option plan for employees and consultants (the “Option Plan”), 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 1.50. 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 years from the allotment date will expire, unless the board of directors extends its validity. Grants to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section 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. For those who are not employees of the Company, and for the Company’s controlling shareholders (as defined in the Income Tax Ordinance) options are granted in accordance with section 3(I) of the Income Tax Ordinance. 2) Options grants a. Option granted to employees and directors In the years ended December 31, 2020, 2019 and 2018, the Company granted options as follows (amounts presented reflect the number of shares issued if the options will be exercised): Year ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees 317,909 $10.08 4 years 10 years Directors 194,713 $9.12-11.06 4 years 10 years Year ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees 230,000 $5.07 4 years 7 years Directors 301,390 $4.02-$5.07 4 years 7 years Year ended December 31, 2018 Award amount Exercise price Range* Vesting period Expiration Employees 93,000 $5.87 4 years 7 years Directors 63,000 $7.74 4 years 7 years * Exercise price range before reduction of exercise price as of October 27, 2019 2020 2019 2018 Value of one ordinary share $ 7.86-10.5 $ 5.7-$5.93 $ 5.34-$7.83 Dividend yield 0 % 0 % 0 % Expected volatility 66.12-66.41 % 61.31%-62.56 % 62.63 % Risk-free interest rate 0.45-0.52 % 2 % 2 % Expected term 6.11 years 4-5.5 years 4 years The fair value of options granted during 2020, 2019 and 2018 was $2,952, $1,602 and $621, respectively. The total unrecognized compensation cost of employee options at December 31, 2020 is $1,853, which is expected to be recognized over a weighted average period of 1.82 year. Modification of share-based compensation On October 27, 2019, the Company’s board of directors approved the reduction of the exercise price of 305,342 outstanding options previously granted to employees to a price of $4.02 per share. On December 31, 2019 an extraordinary general meeting of the shareholders of the Company, approved a reduction of the exercise price of 171,287 options held by the Company’s directors and the Chief Executive Officer to a price of $4.02 per share. The reduction of exercise price of the options was considered a Type I modification for share-based compensation, and, as a result, during the year ended December 31, 2019, the Company recorded additional compensation expense in the amount of $365. The total incremental fair value of these options amounted to $478 and was determined based on the Black-Scholes pricing options model using the following assumptions: risk free interest rate of 1.6%, expected volatility of 49% - 74%, expected term of 0.4-5.9 years and dividend yield of 0%. The incremental fair value of the fully vested options as of October 27, 2019 in the amount of $341 was recognized immediately. The remaining incremental fair value will be recognized over the remaining vesting period and until March 2022. The following table summarizes the number of options granted to employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 721,361 $4.38 512,615 $15.09 385,115 $17.68 Granted 512,622 10.33 531,390 5.09 156,000 7.55 Exercised (20,245) 4.13 (6,076) 1.30 - - Expired - - (11,891) 23.83 (2,500) 24.01 Forfeited (14,961) 7.93 (304,677) 5.84 (26,000) 7.42 Options outstanding at the end of the year 1,198,777 6.88 721,361 $4.38* 512,615 $15.09 Options exercisable at the end of the year 477,611 $4.25 310,093 $4.02* 211,906 $20.28 * After repricing- see Note 9 - (B)(2)(a). b. Option granted to non-employees The fair value of options granted to non-employees in 2019 and 2018 were $16 and $13, respectively. The underlying data used for computing the fair value of the options are as follows: 2020 2019 2018 Value of one ordinary share $- $5.93 5.36 Dividend yield - 0% 0% Expected volatility - 62% 58% Risk-free interest rate - 2% 2% Expected term - 4 years 4 years The following table summarizes the number of options granted to non-employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information. Amounts presented reflect the number of shares issued if the options will be exercised: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 23,664 $27.44 18,664 $33.44 13,664 $43.52 Granted - - 5,000 5.07 5,000 5.87 Exercised (1,250) 5.07 - - - - Expired (4,332) 61.85 - - - - Options outstanding at the end of the year 18,082 $17.97 23,664 $27.44 18,664 $33.44 Options exercisable at the end of the year 8,057 $18.42 10,202 $46.03 8,165 $51.21 The following tables summarize information concerning outstanding and exercisable options as of December 31, 2020: December 31,2020 Options outstanding Options exercisable Exercise prices * Number of options outstanding at end of year Weighted average remaining contractual Life Number of options exercisable at end of year Weighted average remaining contractual life $65.06 1,333 0.13 1,333 0.13 64.85 1,333 0.13 1,333 0.13 27.99 6,666 4.38 1,329 4.33 6.84 5,000 4.33 - - 11.06 162,713 9.11 - - 10.08 309,409 9.41 - - 9.12 32,000 9.66 - - 5.07 239,250 2.65 103,963 1.48 $4.02 459,155 4.07 357,217 4.02 1,216,859 * In U.S. dollars per Ordinary Share. c. The aggregate intrinsic value of the total exercisable options as of December 31, 2020 is approximately $2,882. The aggregate intrinsic value of the options exercised in 2020 is approximately $114. d.
, one of the Company’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) at the first closing, which was completed on December 26, 2017, 190,000 ordinary shares, for a purchase price of $1,089, (ii) at the second closing, which was completed on the same day, 48,000 ordinary shares for a purchase price of $275 provided that Meitav Dash shall not be obligated to buy or hold, immediately following the second closing, 20% or more of the Company’s share capital, and (iii) at the third closing, which was completed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and Dual Reporting Approval, for no additional consideration, warrants exercisable into 238,000 ordinary shares. The Company completed the first and second closings on December 26, 2017 which resulted in the issuance to Meitav Dash of an aggregate of 238,000 ordinary shares for gross proceeds of $1,364 and on March 7, 2018, the Company completed the third closing which resulted in the issuance to Meitav Dash of a warrant to purchase 238,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. c) On November 9, 2017, the Company signed a securities purchase agreement (the “Sagy Purchase Agreement”) with Ami Sagy, one of the Company’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) at the first closing, which closed on December 26, 2017, 186,000 ordinary shares, for gross proceeds of $1,066, and (ii) at the second closing, which closed on March 7, 2018 and which was subject, among other things, to the listing of the Company’s ADSs for trading on the Nasdaq and to Dual Reporting Approval, for no additional consideration, the Company will issue warrants exercisable into 186,000 of its ordinary shares. The Company completed the first closing on December 26, 2017 which resulted in the issuance to Ami Sagy of an aggregate of 186,000 ordinary shares for gross proceeds of $1,066 and on March 7, 2018, the Company completed the second closing which resulted in the issuance to Ami Sagy of a warrant to purchase 186,000 ordinary shares. The warrant may be exercised for a period of five years from issuance at an initial exercise price of approximately $11.57 per ADS, subject to adjustment as further described below. 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, see Note 3. On October 27, 2019, as a result of a share issuance to certain private investors, the warrant exercise price was reduced to $4.00 per share. In addition, the reduction in exercise price to become denominated in USD, resulted in the instrument being reclassified from a financial liability to equity. d) On January 18, 2018, the Company signed Security Purchase Agreements for the purchase and sale, in a private placement, of an aggregate of 86,887 ordinary shares for total gross consideration of $634 to the following three investors: (i) Alpha for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299; and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25, 2018. e) On March 20, 2018, the board of directors resolved to delist all of Company’s securities from trading on the Tel Aviv Stock Exchange (“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, and 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. On April 16, 2018, the Company petitioned the District Court of Lod, Israel (the “Court”), to approve the convening of a shareholders’ 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 approximately $5.7 each (the “Arrangement”). The holders of Series G Warrants and Series H Warrants were not part to the Arrangement as such warrants expired before the expected date of the delisting of the Company’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. f) On July 11, 2018, following the Company’s board of directors and shareholders’ approval, the Company issued to Alpha a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an expense within “general, administrative and marketing expenses” in the statements of operations. g) On July 26, 2018, the Company entered into a Securities Purchase Agreement with Ami Sagy, pursuant to which the Company issued on July 31, 2018, in a private placement, 222,500 ordinary shares for an aggregate purchase price of $1,245. h) 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 (12,000 ordinary shares) in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019, and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020. i) On August 30, 2019, the Company entered into an agreement with Ami Sagy and certain U.S. investors for the issuance of shares and warrants in a form of a convertible loan agreements in the total amount of $6,500, as follows: (i) a convertible loan agreement with Ami Sagy, its largest shareholder (the “Sagy Agreement”), pursuant to which Mr. Sagy will provide a convertible loan to the Company in an amount of $3,000 in two tranches, and (ii) a convertible loan agreement with certain U.S. investors (the “U.S. Agreement”, and, together with the Sagy Agreement, the “Agreements”), pursuant to which such U.S. investors (the “U.S. Investors”) provided a loan to the Company in an amount of $3,500 in one tranche. The Sagy Agreement provided that the transactions contemplated by the Sagy Agreement shall occur in three separate closings. On the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of $2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary shares. The consideration of the third closing is included in the principal amount received in the first closing. The U.S. Agreement provided that the transactions contemplated by the U.S. Agreement shall occur in two separate closings. On the first closing date, which occurred on September 6, 2019, the U.S. Investors transferred to the Company the principal amount of $3,500. On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing 875,000 ordinary shares. In addition, the Company agreed to enter into Price Protection Agreements pursuant to which, until the three-year anniversary of the first closing date, the Company shall issue additional ADSs in the event of certain subsequent equity issuances at a price that is lower than $4.00 (subject to certain adjustments) on a “full-ratchet” basis with respect to their holdings in the Company. The “full-ratchet” instruments are classified as financial liability on the balance sheets and measures at fair value through profit or loss. The warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date, in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price, the exercise price shall adjust to such lower price Concurrently with the execution of the Agreements, the Company entered into Registration Rights Agreements with each of Ami Sagy and the U.S. Investors, pursuant to which the Company granted certain demand and piggyback registration rights with respect to the ordinary shares represented by the ADSs underlying the convertible loans and warrants. On October 27, 2019, an extraordinary general meeting was held and the Company received the “shareholders’ approval” and subsequently issued the ADSs and warrants as mentioned above. The Company also issued an aggregate of 175,039 ADSs to Mr. Sagy, and Meitav Dash, and 250,000 ADSs and 20,000 prepaid warrant to purchase up to 20,000 ADSs to Alpha in satisfaction of the price protection undertakings under the Alpha Purchase Agreement, the Meitav Dash Purchase Agreement and the Sagy Purchase Agreement. J) On February 14, 2020, the Company entered into a Securities Purchase Agreement with several accredited U.S. investors, pursuant to which the Company issued on March 6, 2020, in a private placement, 445,000 ordinary shares for an aggregate purchase price of $4,450. B. Share-based compensation: 1) Option plan In accordance with an option plan for employees and consultants (the “Option Plan”), 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 1.50. 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 years from the allotment date will expire, unless the board of directors extends its validity. Grants to employees are made in accordance with the Option Plan, and are carried out within the provisions of Section 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. For those who are not employees of the Company, and for the Company’s controlling shareholders (as defined in the Income Tax Ordinance) options are granted in accordance with section 3(I) of the Income Tax Ordinance. 2) Options grants a. Option granted to employees and directors In the years ended December 31, 2020, 2019 and 2018, the Company granted options as follows (amounts presented reflect the number of shares issued if the options will be exercised): Year ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees 317,909 $10.08 4 years 10 years Directors 194,713 $9.12-11.06 4 years 10 years Year ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees 230,000 $5.07 4 years 7 years Directors 301,390 $4.02-$5.07 4 years 7 years Year ended December 31, 2018 Award amount Exercise price Range* Vesting period Expiration Employees 93,000 $5.87 4 years 7 years Directors 63,000 $7.74 4 years 7 years * Exercise price range before reduction of exercise price as of October 27, 2019 2020 2019 2018 Value of one ordinary share $ 7.86-10.5 $ 5.7-$5.93 $ 5.34-$7.83 Dividend yield 0 % 0 % 0 % Expected volatility 66.12-66.41 % 61.31%-62.56 % 62.63 % Risk-free interest rate 0.45-0.52 % 2 % 2 % Expected term 6.11 years 4-5.5 years 4 years The fair value of options granted during 2020, 2019 and 2018 was $2,952, $1,602 and $621, respectively. The total unrecognized compensation cost of employee options at December 31, 2020 is $1,853, which is expected to be recognized over a weighted average period of 1.82 year. Modification of share-based compensation On October 27, 2019, the Company’s board of directors approved the reduction of the exercise price of 305,342 outstanding options previously granted to employees to a price of $4.02 per share. On December 31, 2019 an extraordinary general meeting of the shareholders of the Company, approved a reduction of the exercise price of 171,287 options held by the Company’s directors and the Chief Executive Officer to a price of $4.02 per share. The reduction of exercise price of the options was considered a Type I modification for share-based compensation, and, as a result, during the year ended December 31, 2019, the Company recorded additional compensation expense in the amount of $365. The total incremental fair value of these options amounted to $478 and was determined based on the Black-Scholes pricing options model using the following assumptions: risk free interest rate of 1.6%, expected volatility of 49% - 74%, expected term of 0.4-5.9 years and dividend yield of 0%. The incremental fair value of the fully vested options as of October 27, 2019 in the amount of $341 was recognized immediately. The remaining incremental fair value will be recognized over the remaining vesting period and until March 2022. The following table summarizes the number of options granted to employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 721,361 $4.38 512,615 $15.09 385,115 $17.68 Granted 512,622 10.33 531,390 5.09 156,000 7.55 Exercised (20,245) 4.13 (6,076) 1.30 - - Expired - - (11,891) 23.83 (2,500) 24.01 Forfeited (14,961) 7.93 (304,677) 5.84 (26,000) 7.42 Options outstanding at the end of the year 1,198,777 6.88 721,361 $4.38* 512,615 $15.09 Options exercisable at the end of the year 477,611 $4.25 310,093 $4.02* 211,906 $20.28 * After repricing- see Note 9 - (B)(2)(a). b. Option granted to non-employees The fair value of options granted to non-employees in 2019 and 2018 were $16 and $13, respectively. The underlying data used for computing the fair value of the options are as follows: 2020 2019 2018 Value of one ordinary share $- $5.93 5.36 Dividend yield - 0% 0% Expected volatility - 62% 58% Risk-free interest rate - 2% 2% Expected term - 4 years 4 years The following table summarizes the number of options granted to non-employees under the Option Plan for the years ended December 31, 2020, 2019 and 2018, and related information. Amounts presented reflect the number of shares issued if the options will be exercised: 2020 2019 2018 Number of options Weighted average exercise price Number of options Weighted average exercise price* Number of options Weighted average exercise price* Options outstanding at the beginning of the year 23,664 $27.44 18,664 $33.44 13,664 $43.52 Granted - - 5,000 5.07 5,000 5.87 Exercised (1,250) 5.07 - - - - Expired (4,332) 61.85 - - - - Options outstanding at the end of the year 18,082 $17.97 23,664 $27.44 18,664 $33.44 Options exercisable at the end of the year 8,057 $18.42 10,202 $46.03 8,165 $51.21 The following tables summarize information concerning outstanding and exercisable options as of December 31, 2020: December 31,2020 Options outstanding Options exercisable Exercise prices * Number of options outstanding at end of year Weighted average remaining contractual Life Number of options exercisable at end of year Weighted average remaining contractual life $65.06 1,333 0.13 1,333 0.13 64.85 1,333 0.13 1,333 0.13 27.99 6,666 4.38 1,329 4.33 6.84 5,000 4.33 - - 11.06 162,713 9.11 - - 10.08 309,409 9.41 - - 9.12 32,000 9.66 - - 5.07 239,250 2.65 103,963 1.48 $4.02 459,155 4.07 357,217 4.02 1,216,859 * In U.S. dollars per Ordinary Share. c. The aggregate intrinsic value of the total exercisable options as of December 31, 2020 is approximately $2,882. The aggregate intrinsic value of the options exercised in 2020 is approximately $114. d.
238000
1364000
238000
P5Y
11.57
4.00
186000
1066000
186000
P5Y
11.57
$4.00
86887
634000
(i) Alpha for the purchase of 25,506 ordinary shares for $186; (ii) Ami Sagy for the purchase of 40,920 ordinary shares for $299; and (iii) Docor International BV for the purchase of 20,460 ordinary shares for $149. Closing occurred on January 25, 2018.
5.7
the Company issued to Alpha a pre-paid warrant to purchase 21,200 ordinary shares represented by 21,200 ADSs, in connection with services Alpha provided to the Company. The issuance at a fair market value of $137 was accounted as share-based compensation and recognized as an expense within “general, administrative and marketing expenses” in the statements of operations.
222500
1245000
the Company will pay a monthly retainer and issue a total of 12,000 restricted ADSs (12,000 ordinary shares) in 3 tranches of 4,000 ADSs (4,000 ordinary shares) each: (i) following the execution of the agreement, (ii) February 1, 2019, and (iii) June 1, 2019. If the agreement was cancelled prior to the issuance date the share balance would not be owed. The first tranche was completed on December 19, 2018. The second and third tranches were completed on January 10, 2020.
On the first closing date, which occurred on September 3, 2019, Ami Sagy transferred to the Company the principal amount of $2,000. This amount was invested on account of the issuance in a form of convertible loan and was automatically converted into 500,000 ADSs at a conversion price of $4.00 per ADS on October 27, 2019. On the second closing date, which occurred on February 28, 2021, after the Company executed the Development, Exclusivity and Option Products Agreement (see note 12), the following occurred: (i) Ami Sagy transferred the Company an amount of $1,000 by way of an equity investment, and (ii) the Company issued to Ami Sagy 250,000 ADSs representing 250,000 ordinary shares and a warrants to purchase up to 250,000 ADSs representing 250,000 ordinary shares. On the third closing date, which was subject to shareholder approval and occurred on October 27, 2019, the Company issued to Ami Sagy a warrant to purchase up to 500,000 ADSs representing 500,000 ordinary shares. The consideration of the third closing is included in the principal amount received in the first closing.
3500000
On the second closing date, which occurred on October 27, 2019, the following occurred: (i) the principal amount invested on account of the issuance in a form of convertible loan, was automatically converted into 875,000 ADSs at a conversion price equal to $4.00 per ADS, and (ii) the Company issued to the U.S. Investors warrants to purchase up to 875,000 ADSs representing 875,000 ordinary shares.
The warrants issuable under the Agreements are exercisable at $4.00 per ADS and have a term of three years from the issuance date. The warrants are subject to adjustments upon certain events, including share splits, share dividends, subsequent rights offerings, and fundamental transactions. In addition, until the three-year anniversary of the first closing date, in the event of certain subsequent equity issuances at a price that is lower than the then applicable exercise price, the exercise price shall adjust to such lower price
445000
4450
10 years
2952000
1602000
621000
1853000
P1Y299D
305342
4.02
171287
4.02
365000
478000
0.016
0.49
0.74
P146D
P5Y328D
0.00
The incremental fair value of the fully vested options as of October 27, 2019 in the amount of $341 was recognized immediately.
16000
13000
2882000
114000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Award amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise price range</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Vesting period</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 51%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">317,909</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">194,713</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.12-11.06</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10 years</font></td><td style="text-align: left"> </td></tr>
</table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Award amount</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price range</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Vesting period</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Expiration</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 51%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">230,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5.07</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">301,390</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.02-$5.07</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="text-align: left"> </td></tr>
</table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Award amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise price Range*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Vesting period</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-indent: -9pt; padding-left: 9pt">Employees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">93,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5.87</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Directors</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7.74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</font></td><td style="text-align: left"> </td></tr>
</table>
317909000
10.08
P4Y
P10Y
194713000
9.12
11.06
P4Y
P10Y
230000000
5.07
P4Y
P7Y
301390000
4.02
5.07
P4Y
P7Y
93000000
5.87
P4Y
P7Y
63000000
7.74
P4Y
P7Y
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Value
of one ordinary share</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.86-10.5</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.7-$5.93</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.34-$7.83</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; ">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 67%; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend
yield</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 8%; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 1%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected
volatility</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">66.12-66.41</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="white-space: nowrap; border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">61.31%-62.56</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">62.63</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; ">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free
interest rate</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.45-0.52</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF">
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: top; padding-left: 9pt; text-indent: -9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected
term</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.11
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4-5.5
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4
years</font></td>
<td style="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td></tr>
</table>
7.86
10.5
5.7
5.93
5.34
7.83
0.00
0.00
0.00
0.6612
0.6641
0.6131
0.6256
0.6263
0.0045
0.0052
0.02
0.02
P6Y40D
P4Y
P5Y6M
P4Y
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: left; text-indent: -9pt; padding-left: 9pt">Options outstanding at the beginning of the year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">721,361</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4.38</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">512,615</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15.09</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">385,115</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">17.68</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">512,622</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10.33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">531,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.09</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">156,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7.55</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20,245</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,076</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.30</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(11,891</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23.83</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,500</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24.01</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,961</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.93</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(304,677</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5.84</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.42</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options outstanding at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,198,777</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.88</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">721,361</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.38</td><td style="padding-bottom: 4pt; text-align: left">*</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">512,615</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">15.09</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options exercisable at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">477,611</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.25</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">310,093</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.02</td><td style="padding-bottom: 4pt; text-align: left">*</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">211,906</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">20.28</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
721361
4.38
512615
15.09
385115
17.68
512622
10.33
531390
5.09
156000
7.55
20245
4.13
6076
1.30
11891
23.83
2500
24.01
14961
7.93
304677
5.84
26000
7.42
1198777
6.88
477611
4.25
310093
4.02
211906
20.28
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Value of one ordinary share</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">-</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">5.93</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">5.36</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Dividend yield</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Expected volatility</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">62</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">58</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Risk-free interest rate</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Expected term</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</font></td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
5.93
5.36
0.00
0.00
0.62
0.58
0.02
0.02
P4Y
P4Y
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted average exercise price*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: left; text-indent: -9pt; padding-left: 9pt">Options outstanding at the beginning of the year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">23,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">27.44</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">18,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">33.44</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">13,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">43.52</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.07</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.87</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,250</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.07</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Expired</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,332</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">61.85</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options outstanding at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">18,082</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">17.97</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">23,664</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">27.44</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">18,664</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">33.44</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Options exercisable at the end of the year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,057</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">18.42</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">10,202</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">46.03</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,165</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">51.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
23664
27.44
18664
33.44
13664
43.52
5000
5.07
5000
5.87
1250
5.07
4332
61.85
18082
17.97
8057
18.42
10202
46.03
8165
51.21
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options outstanding</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise prices *</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of <br/> options <br/> outstanding <br/> at end of year</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> average <br/> remaining <br/> contractual Life</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of <br/> options <br/> exercisable <br/> at end of year</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> average <br/> remaining <br/> contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: right">$</td><td style="width: 18%; text-align: right">65.06</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">1,333</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">0.13</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">1,333</td><td style="width: 1%; text-align: right"> </td><td style="text-align: right; width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td><td style="width: 17%; text-align: right">0.13</td><td style="width: 1%; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">64.85</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,333</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">0.13</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,333</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">0.13</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">27.99</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">6,666</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.38</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1,329</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.33</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">6.84</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">5,000</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">4.33</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">11.06</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">162,713</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.11</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">10.08</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">309,409</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.41</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td style="text-align: right">9.12</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">32,000</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">9.66</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">-</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: right"> </td><td style="text-align: right">5.07</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">239,250</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">2.65</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">103,963</td><td style="text-align: right"> </td><td style="text-align: right"> </td>
<td style="text-align: right"> </td><td style="text-align: right">1.48</td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: right">$</td><td style="padding-bottom: 1.5pt; text-align: right">4.02</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">459,155</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">4.07</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">357,217</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right">4.02</td><td style="padding-bottom: 1.5pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: right">1,216,859</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
65.06
1333
P47D
1333
P47D
64.85
1333
P47D
1333
P47D
27.99
6666
P4Y138D
1329
P4Y120D
6.84
5000
P4Y120D
11.06
162713
P9Y40D
10.08
309409
P9Y149D
9.12
32000
P9Y240D
5.07
239250
P2Y237D
103963
P1Y175D
4.02
459155
P4Y25D
357217
P4Y7D
1216859
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-indent: -9pt; padding-left: 9pt">Cost of revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">66</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">464</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">457</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">General, administrative and marketing expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,075</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">576</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">977</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,605</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,125</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,434</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
66000
464000
549000
457000
1075000
576000
977000
1605000
1125000
1434000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
10 - INCOME TAX</b></font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company and its subsidiary are taxed under Israel tax laws:</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Tax rates</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
corporate tax rates applicable for the years 2018-2020,is 23%.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Tax assessments</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company and its subsidiary have tax assessments that are considered to be final through tax year 2015.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Losses for tax
purposes carried forward to future years</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2020, CollPlant Biotechnologies Ltd. and CollPlant Ltd had approximately $6,165, and $51,096, respectively,
of net carry forward tax losses which are available to reduce future taxable income with no limited period of use.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Deferred income
taxes</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>In respect of:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net operating loss carry forward</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">13,170</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,607</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">820</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">801</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Valuation of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Less – valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,980</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,408</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Net deferred tax assets</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Realization
of deferred tax assets is contingent upon sufficient future taxable income during the period that deductible temporary differences
and carry forward losses are expected to be available to reduce taxable income. As the achievement of required future taxable
income is not likely, the Company recorded a full valuation allowance.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>E.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Reconciliation
of theoretical tax expenses to actual expenses</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
primary difference between the statutory tax rate of the Company and the effective rate results virtually from the changes in
valuation allowance in respect of carry forward tax losses and research and development expenses due to the uncertainty of the
realization of such tax benefits.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Uncertain tax
positions</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2020 and 2019, the Company does not have a provision for uncertain tax positions.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>G.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Roll forward
of valuation allowance:</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-indent: -9pt; padding-left: 9pt">Balance at January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,155</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(232</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2018</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">10,923</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2019</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13,408</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">572</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,980</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/>
0.23
6165
51096
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>In respect of:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net operating loss carry forward</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">13,170</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,607</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">820</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">801</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Valuation of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Less – valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,980</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,408</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Net deferred tax assets</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
13170000
12607000
820000
801000
10000
13980000
13408000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-indent: -9pt; padding-left: 9pt">Balance at January 1, 2018</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,155</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(232</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2018</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">10,923</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2019</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13,408</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Additions</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">572</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balance at December 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,980</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
11155000
-232000
10923000
2485000
572000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
11 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION:</b></font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Balance
sheets:</b></font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">a. Accounts receivable and prepaid expenses</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-indent: -9pt; padding-left: 0.25in">Institutions</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">81</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">124</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Prepaid expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">158</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">84</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">62</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">239</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">270</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><b>b. Trade payable,</b> breakdown by currency:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 0.25in">USD</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">240</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">35</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">NIS</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">558</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">798</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">798</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">833</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><b>c. Accounts payable and accruals -</b> other:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Employees and institutions for employees</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">671</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">799</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Provisions for vacation and others</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">245</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Royalties and Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">912</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">159</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,943</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,203</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Statements
of operations:</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>d.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenues</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Disaggregated
revenues</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Revenues from licensing agreement (see Note 2(p))</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,600</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,085</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Revenues from the sales of goods</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,949</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">739</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Revenues from the rendering of services</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">429</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">369</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">190</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total revenues</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,137</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,318</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,014</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; 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><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">United states and Canada</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,768</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,078</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,868</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Europe</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">369</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">240</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">’146</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total revenues</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,137</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,318</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,014</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Major
customers</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Set
forth below is a breakdown of the Company’s revenue by major customers (major customer –revenues from these customers
constitute at least 10% of total revenues in a certain year):</font></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer A</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,929</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">1,374</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,274</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer B</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">822</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">242</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer C</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">419</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">505</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
changes in deferred revenues relating to goods that were not yet delivered are as follows:</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(942</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,950</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Contract liability recognized during the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(270</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,959</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Revenue recognized during the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,005</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,008</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance at end of year<sup>(1)</sup></font></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(207</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(942</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,950</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Contract liability presented in current liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(207</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(942</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(970</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Contract liability presented in non-current liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(980</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance for the
years ended December 31, 2018 and 2019 represents the unfulfilled performance obligation related to First BioInk.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>e.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Long-lived assets</b></font></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
of the Company’s long-lived assets are located in Israel.</font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>f.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research and
development </b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Payroll and related expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,973</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,954</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,968</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Share-based payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">464</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">457</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Subcontractors and consultants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">77</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">296</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Consumables and materials</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">309</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">408</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">354</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">220</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Rent and maintenance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">824</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">874</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">80</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,065</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,442</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,204</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Less:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">IIA participation in R&D expenses, see Note 7(a)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(327</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(327</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,065</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,414</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,877</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>g.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>General, administrative
and marketing</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Payroll and related expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,495</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,293</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,152</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share-based payments <sup>(1)</sup></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">576</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">977</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Directors’ salary and insurance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">573</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">168</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Rent and office maintenance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">205</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">84</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Professional services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,045</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,012</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,111</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">243</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">203</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,669</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,656</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,723</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(1) </sup></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; 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, 2018, include an amount of $583, due to services received from Alpha, and none for
the years ended December 31, 2019 and 2020.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>h.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Financial expenses
</b></font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Financial expenses:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Bank and other fees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">63</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">17</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Remeasurement of financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,230</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,154</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other financing expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total financial expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,303</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Financial income:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Remeasurement of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total financial income</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table><br/>
0.10
583000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">a. Accounts receivable and prepaid expenses</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-indent: -9pt; padding-left: 0.25in">Institutions</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">81</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">124</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Prepaid expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">158</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">84</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">62</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">239</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">270</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><b>b. Trade payable,</b> breakdown by currency:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 0.25in">USD</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">240</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">35</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">NIS</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">558</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">798</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">798</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">833</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><b>c. Accounts payable and accruals -</b> other:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Employees and institutions for employees</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">671</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">799</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Provisions for vacation and others</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">245</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Royalties and Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">912</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">159</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,943</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,203</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
81000
124000
158000
84000
62000
239000
270000
240000
35000
558000
798000
798000
833000
671000
799000
360000
245000
912000
159000
1943000
1203000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Revenues from licensing agreement (see Note 2(p))</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,600</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,085</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Revenues from the sales of goods</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,949</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">739</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Revenues from the rendering of services</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">429</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">369</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">190</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total revenues</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,137</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,318</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,014</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
3600000
4085000
2108000
1949000
739000
429000
369000
190000
6137000
2318000
5014000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">United states and Canada</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,768</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,078</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,868</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Europe</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">369</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">240</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">’146</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total revenues</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,137</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,318</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,014</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
5768000
2078000
4868000
369000
240000
6137000
2318000
5014000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer A</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,929</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">1,374</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left"> </td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,274</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer B</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">822</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">242</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Customer C</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">419</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">505</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
4929000
1374000
4274000
822000
242000
419000
505000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(942</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,950</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Contract liability recognized during the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(270</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,959</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Revenue recognized during the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,005</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,008</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance at end of year<sup>(1)</sup></font></td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(207</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(942</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,950</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Contract liability presented in current liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(207</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(942</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(970</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Contract liability presented in non-current liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(980</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
942000
1950000
-270000
-1959000
1005000
1008000
9000
207000
207000
942000
970000
980000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Payroll and related expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,973</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,954</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,968</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Share-based payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">464</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">549</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">457</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Subcontractors and consultants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">77</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">296</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Consumables and materials</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">309</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">408</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">354</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">220</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Rent and maintenance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">824</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">874</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">80</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,065</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,442</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,204</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Less:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">IIA participation in R&D expenses, see Note 7(a)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(327</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(28</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(327</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,065</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,414</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,877</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Payroll and related expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,495</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,293</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,152</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share-based payments <sup>(1)</sup></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">576</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">977</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Directors’ salary and insurance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">573</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">168</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Rent and office maintenance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">205</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">84</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Professional services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,045</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,012</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,111</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt">Depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">243</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">203</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,669</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,656</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,723</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
1973000
1954000
1968000
464000
549000
457000
125000
77000
296000
262000
304000
309000
408000
354000
220000
824000
1082000
874000
9000
122000
80000
4065000
4442000
4204000
-28000
-327000
-28000
-327000
4065000
4414000
3877000
1495000
1293000
1152000
1075000
576000
977000
573000
415000
168000
205000
84000
89000
1045000
1012000
1111000
48000
33000
23000
228000
243000
203000
4669000
3656000
3723000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Financial expenses:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Bank and other fees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">63</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">17</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Remeasurement of financial instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,230</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,154</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Other financing expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total financial expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,303</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Financial income:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Remeasurement of financial instruments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total financial income</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">40</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
11000
63000
17000
3230000
2154000
23000
10000
9000
34000
3303000
2180000
40000
40000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
12 - SUBSEQUENT EVENTS</b></font></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 13, 2021, the board of directors approved the grant of an aggregate of 46,500 options exercisable into 46,500
ordinary shares at an exercise price of $13.08 per share to the Company’s employees. The options will vest over four
years with one quarter vesting one year after the grant date and the remaining balance will vest in equal parts at the end of
each subsequent quarter.</font></p></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; 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: 10pt Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 5, 2021, CollPlant entered into a Development, Exclusivity and Option Products Agreement with certain wholly-owned
subsidiaries of AbbVie Inc., pursuant to which CollPlant and AbbVie will collaborate in the development and commercialization
of dermal and soft tissue filler products for the medical aesthetics market, using CollPlant’s recombinant human
collagen technology and AbbVie’s technology. In accordance with the Agreement, on February 28, 2021, the Company
received a $14,000 upfront cash payment.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>c.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 17,
2021, the Company completed a registered direct offering providing for the sale and issuance of an aggregate of 2,000,000
ADSs at a purchase price of $17.50 per ADS, for aggregate gross proceeds of $35,000, before deducting investment bank commissions
of 7% and estimated offering expenses of approximately $800 payable by the Company.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>d.</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 24,
2021, CollPlant received a notice of termination from LB, of the License, Development and Commercialization Agreement previously
entered into with LB, such termination to be effective March 26, 2021.</font></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>e</b></font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000
ADS in return of $2,600. See note 9 -A(2)(a) </font></td></tr>
</table><br/>
46500
46500
13.08
P4Y
2000000
17.50
35000000
d. On February 24, 2021, CollPlant received a notice of termination from LB, of the License, Development and Commercialization Agreement previously entered into with LB, such termination to be effective March 26, 2021. e During the first quarter of 2021, Alpha exercised 650,000 warrants into 650,000 ADS in return of $2,600.