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SEC filings
6-K
BIOLINERX LTD. filed this Form 6-K on 08/11/2016
Entire Document
 

Comparison of three-month and six-month periods ending June 30, 2016 and 2015

Non-operating income (expenses) for the three and six months ended June 30, 2016 and 2015 primarily relate to fair-value adjustments of warrant liabilities on our balance sheet. These fair-value adjustments are highly influenced by our share price at each period end (revaluation date).
 
Financial income (expenses), net
 
   
Three months ended June 30,
   
Six months ended June 30,
 
   
2015
   
2016
   
Increase
(decrease)
   
2015
   
2016
   
Increase
(decrease)
 
   
(in thousands of U.S. dollars)
 
Financial income
   
205
     
88
     
(117
)
   
278
     
232
     
(46
)
Financial expenses
   
(2
)
   
(5
)
   
(3
)
   
(19
)
   
(9
)
   
10
 
Net financial income (expense)
   
203
     
83
     
(120
)
   
259
     
223
     
(36
)

Comparison of three-month and six-month periods ending June 30, 2016 and 2015

Financial income (expenses), net for the three and six months ended June 30, 2016 and 2015 primarily relate to investment income earned on our bank deposits, as well as banking fees. The decrease from 2015 to 2016 reflects a lower cash balance and a continued reduction in global investment yields.
 
Liquidity and Capital Resources
 
Since inception, we have funded our operations primarily through public and private offerings of our equity securities, funding from the OCS, and payments received under our strategic licensing arrangements. At June 30, 2016, we held $41.8 million in cash, cash equivalents and short-term bank deposits. We have invested substantially all of our available cash funds in short-term bank deposits.
 
Pursuant to the share purchase agreement signed with LPC in May 2014, we may sell, from time to time, and at our discretion, up to $20 million of our ADSs to LPC during the 36-month term of the purchase agreement. From the effective date of the purchase agreement through the date of this report, we have sold an aggregate of approximately $4.3 million of our ADSs to LPC, leaving an available balance under the facility of approximately $15.7 million.
 
Net cash used in operating activities was $7.4 million for the six months ended June 30, 2016, compared with net cash used in operating activities of $7.1 million for the six months ended June 30, 2015. The $0.3 million increase in net cash used was primarily the result of a decrease in trade payables and accruals.
 
Net cash provided by investing activities for the six months ended June 30, 2016 was $4.2 million, compared to net cash used in investing activities of $17.9 million for the six months ended June 30, 2015. The changes in cash flows from investing activities relate primarily to investments in, and maturities of, short-term bank deposits and other investments during the respective periods.
 
Net cash provided by financing activities for the six months ended June 30, 2016 was $1.5 million, compared to net cash provided by financing activities of $28.6 million for the six months ended June 30, 2015. The decrease in cash flows from financing activities reflects the underwritten public offering which we completed in March 2015.
 
Developing drugs, conducting clinical trials and commercializing products is expensive and we will need to raise substantial additional funds to achieve our strategic objectives. Although we believe our existing cash and other resources will be sufficient to fund our projected cash requirements into 2018, we will require significant additional financing in the future to fund our operations. Our future capital requirements will depend on many factors, including:
 
· the progress and costs of our preclinical studies, clinical trials and other research and development activities;
 
· the scope, prioritization and number of our clinical trials and other research and development programs;
 
· the amount of revenues we receive under our collaboration or licensing arrangements;
 
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