ISSUANCE OF ORDINARY SHARES, PRE-FUNDED WARRANTS AND WARRANTS |
6 Months Ended |
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Jun. 30, 2026 | |
| Issuance Of Ordinary Shares, Pre-funded Warrants And Warrants [Abstract] | |
| ISSUANCE OF ORDINARY SHARES, PRE-FUNDED WARRANTS AND WARRANTS [Text Block] |
NOTE 3 - ISSUANCE OF ORDINARY SHARES, PRE-FUNDED WARRANTS AND WARRANTS
On April 1, 2026, the Company entered into a securities purchase agreement with certain funds affiliated with BVF Partners L.P. (collectively, “BVF”), providing for the private placement to BVF of an aggregate of 7,827,789 units (the “2026 Units”), each 2026 Unit consisting of (i) one ordinary share (or, in lieu thereof, one pre-funded warrant to purchase one ordinary share (the “April 2026 Pre-Funded Warrants”)) and (ii) one warrant to purchase one and one-half ordinary shares (the “2026 Ordinary Share Warrants”), for aggregate proceeds of approximately $10.0 million (or $1.2775 per 2026 Unit). On April 2, 2026 (the “Closing Date”), the Company issued 2,425,000 ordinary shares, 5,402,789 April 2026 Pre-Funded Warrants, and 11,741,683 2026 Ordinary Share Warrants in connection with this offering.
Each 2026 Ordinary Share Warrant has an exercise price of $1.24 per share, becomes exercisable six months following the Closing Date, expires five years from the date of issuance, and is subject to customary adjustments. The 2026 Ordinary Share Warrants are exercisable only for cash so long as the Company has an effective registration statement registering the shares underlying the 2026 Ordinary Share Warrants. The 2026 Pre-Funded Warrants have an exercise price of NIS 0.0000769 per share, are immediately exercisable and may be exercised at any time and have no expiration date.
The 2026 Ordinary Share Warrants were classified as equity upon issuance, as they met the criteria for equity classification under ASC 815-40.
The April 2026 Pre-Funded Warrants were classified as a financial liability as they do not qualify for equity accounting under the indexation guide of ASC 815-40. The April 2026 Pre-Funded Warrants recorded at fair value on the Closing Date and will be remeasured to fair value at each subsequent reporting date, with changes in fair value recognized in financial expense, net in the statements of operations. The April 2026 Pre-Funded Warrants are classified as Level 2. The fair value was based on the quoted share price. The fair value of the pre-funded warrants as of the issuance date and as of June 30, 2026 was $6,807 and $9,563, respectively. As a result the Company recognized a change in fair value in an amount of $2,755.
The proceeds from the private placement were allocated to the April 2026 Pre-Funded Warrants based on their fair value as of the issuance date. The residual proceeds were allocated to the Ordinary Shares and the 2026 Ordinary Share Warrants.
The Company had issuance costs of approximately $171 thousand. The portion of issuance costs allocated to the April 2026 Pre-Funded Warrants was recognized immediately in profit or loss, while the remaining portion allocated to the equity components was deducted from Additional Paid-in Capital.
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