0001104659-20-032540 | 10-K | XBRL Viewer | Protalix Biotherapeutics INC

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Mar. 01, 2020	Jun. 30, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	Protalix BioTherapeutics, Inc.
Trading Symbol	PLX
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,838,213
Entity Central Index Key	0001006281
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 68.1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 17,792	$ 37,808
Accounts receivable - Trade	4,700	4,729
Other assets	1,832	1,877
Inventories	8,155	8,569
Total current assets	32,479	52,983
NON-CURRENT ASSETS:
Funds in respect of employee rights upon retirement	1,963	1,758
Property and equipment, net	5,273	6,390
Operating lease right of use assets	5,677	0
Total assets	45,392	61,131
Accounts payable and accruals:
Trade	6,495	5,211
Other	11,905	10,274
Operating lease liabilities	1,139	0
Contracts liability	16,335	9,868
Promissory note	4,301
Total current liabilities	40,175	25,353
LONG TERM LIABILITIES:
Convertible notes	50,957	47,966
Contracts liability	16,980	33,027
Liability for employee rights upon retirement	2,565	2,374
Operating lease liabilities	4,528	0
Other long term liabilities	509	5,292
Total long term liabilities	75,539	88,659
Total liabilities	115,714	114,012
COMMITMENTS (Note 6)
Common Stock, $0.001 par value: Authorized - as of December 31, 2018 and 2019, 25,000,000 shares and 120,000,000 respectively; issued and outstanding, respectively - as of December 31, 2018 and 2019, 14,838,213 shares	15	15
Additional paid-in capital	270,492	269,657
Accumulated deficit	(340,829)	(322,553)
Total capital deficiency	(70,322)	(52,881)
Total liabilities net of capital deficiency	$ 45,392	$ 61,131

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	120,000,000	25,000,000
Common Stock, issued	14,838,213	14,838,213
Common Stock, outstanding	14,838,213	14,838,213

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
REVENUES	$ 54,693	$ 34,240	$ 21,078
COST OF GOODS SOLD	(10,895)	(9,302)	(15,231)
RESEARCH AND DEVELOPMENT EXPENSES	(44,693)	(35,534)	(32,170)
Less - grants	77	2,204	3,336
RESEARCH AND DEVELOPMENT EXPENSES, NET	(44,616)	(33,330)	(28,834)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	(9,899)	(10,916)	(11,530)
OPERATING LOSS	(10,717)	(19,308)	(34,517)
FINANCIAL EXPENSES	(7,966)	(7,685)	(9,725)
FINANCIAL INCOME	407	536	188
LOSS FROM CHANGE IN FAIR VALUE OF CONVERTIBLE NOTES EMBEDDED DERIVATIVE	0	0	(38,061)
LOSS ON EXTINGUISHMENT OF CONVERTIBLE NOTES	0	0	(1,325)
FINANCIAL EXPENSES - NET	(7,559)	(7,149)	(48,923)
NET LOSS FOR THE YEAR	$ (18,276)	$ (26,457)	$ (83,440)
NET LOSS PER SHARE OF COMMON STOCK - BASIC AND DILUTED	$ (1.23)	$ (1.80)	$ (6.37)
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK USED IN COMPUTING LOSS PER SHARE-BASIC AND DILUTED	14,838,213	14,713,518	13,108,596
Goods [Member]
REVENUES	$ 15,866	$ 8,978	$ 19,242
License and R&D Services [Member]
REVENUES	$ 38,827	$ 25,262	$ 1,836

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL DEFICIENCY - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Beginning balance

$ (52,881)

$ (29,457)

$ (9,957)

Share-based compensation related to stock options

835

498

337

Share-based compensation related to restricted stock award

Reclassification of embedded derivative

43,634

Convertible note conversions

1,369

18,654

Equity component of convertible notes

1,315

Convertible note payment

1,150

Net loss

(18,276)

(26,457)

(83,440)

Ending balance

(70,322)

(52,881)

(29,457)

Common Stock [Member]

Beginning balance

^[1]

$ 15

$ 14

$ 12

Beginning balance (in shares)

14,838,213

14,372,880

12,413,409

Share-based compensation related to restricted stock award (in shares)

2,990

Convertible note conversions

^[1]

$ 2

Convertible note conversions (in shares)

200,997

1,959,471

Convertible note payment

^[1]

$ 1

Convertible note payment (in shares)

261,346

Ending balance

^[1]

$ 15

$ 14

Ending balance (in shares)

14,838,213

14,372,880

Additional Paid-in Capital [Member]

Beginning balance

$ 269,657

$ 266,625

$ 202,687

Share-based compensation related to stock options

835

498

337

Share-based compensation related to restricted stock award

Reclassification of embedded derivative

43,634

Convertible note conversions

1,369

18,652

Equity component of convertible notes

1,315

Convertible note payment

1,149

Ending balance

270,492

269,657

266,625

Accumulated Deficit [Member]

Beginning balance

(322,553)

(296,096)

(212,656)

Net loss

(18,276)

(26,457)

(83,440)

Ending balance

$ (340,829)

$ (322,553)

$ (296,096)

[1]	Represents an amount less than $1.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (18,276)	$ (26,457)	$ (83,440)
Adjustments required to reconcile net loss to net cash used in operating activities:
Share based compensation	835	514	337
Depreciation	1,617	1,671	1,920
Financial expenses (income), net (mainly exchange differences)	378	20	(40)
Changes in accrued liability for employee rights upon retirement	(10)	(18)	(18)
Gain on amounts funded in respect of employee rights upon retirement	(58)	(46)	(21)
Loss on sale of fixed assets			6
Loss on extinguishment of convertible notes	0	0	1,325
Net loss (income) in connection with conversion of convertible notes		213	(116)
Change in fair value of convertible notes embedded derivative	0	0	38,061
Amortization of debt issuance costs and debt discount	2,991	2,602	2,334
Issuance of shares for interest payment in connection with conversions of convertible notes	0	234	2,391
Changes in operating assets and liabilities:
Increase (decrease) in contracts liability (including non-current portion)	(9,580)	17,880	24,178
Decrease (increase) in accounts receivable and other assets	188	(3,099)	25
Changes in right of use assets	(110)
Decrease (increase) in inventories	414	(736)	(2,588)
Increase (decrease) in accounts payable and accruals	2,735	(761)	4,902
Increase (decrease) in other long term liabilities	(482)	241	750
Net cash used in operating activities	(19,358)	(7,742)	(9,994)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(627)	(686)	(971)
Proceeds from sale of property and equipment			3
Decrease (increase) in restricted deposit	(259)	62	(146)
Amounts funded in respect of employee rights upon retirement, net	3	33	(5)
Net cash used in investing activities	(883)	(591)	(1,119)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payment for convertible notes	0	(4,752)	(10,961)
Net proceeds from issuance of convertible notes			9,542
Net cash used in financing activities	0	(4,752)	(1,419)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	225	(270)	414
NET DECREASE IN CASH AND CASH EQUIVALENTS	(20,016)	(13,355)	(12,118)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	37,808	51,163	63,281
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR	17,792	37,808	51,163
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS:
Purchase of property and equipment	98	225	526
Convertible note conversions	0	2,285	16,263
Right of use assets obtained in exchange for new operating lease liabilities	388
SUPPLEMENTARY DISCLOSURE ON CASH FLOWS
Interest paid	$ 4,344	$ 4,585	$ 4,854

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2019

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

a. General

Protalix BioTherapeutics, Inc. (collectively with its subsidiaries, the “Company”) and its wholly-owned subsidiaries, Protalix Ltd. and Protalix B.V. (the “Subsidiaries”), are biopharmaceutical companies focused on the development and commercialization of recombinant therapeutic proteins based on the Company’s proprietary ProCellEx® protein expression system (“ProCellEx”). To date, the Company has successfully developed taliglucerase alfa (marketed under the name BioManguinhos alfataliglicerase in Brazil and certain other Latin American countries and Elelyso® in the rest of the territories) for the treatment of Gaucher disease that has been approved for marketing in the United States, Brazil, Israel and other markets. The Company has a number of product candidates in varying stages of the clinical development process. The Company’s strategy is to develop proprietary recombinant proteins that are therapeutically superior to existing recombinant proteins currently marketed for the same indications.

The Company’s product pipeline currently includes, among other candidates:

(1)

pegunigalsidase alfa, or PRX‑102, a therapeutic protein candidate for the treatment of Fabry disease, a rare, genetic lysosomal disorder;

(2)

alidornase alfa, or PRX-110, a proprietary plant cell recombinant human Deoxyribonuclease 1, or DNase; and

(3)

OPRX‑106, the Company’s oral anti-TNF product candidate which is being developed as an orally-delivered anti-inflammatory treatment using plant cells as a natural capsule for the expressed protein.

The Company, together with its commercialization partner for PRX-102, Chiesi Farmaceutici S.p.A. (“Chiesi”), plans to file a biologics license application (“BLA”) for PRX-102 for the treatment of Fabry disease by April 2020 through the Accelerated Approval pathway of the U.S. Food and Drug Administration (“FDA”). This decision is the result of a series of meetings and correspondence between the Company and Chiesi, on the one hand, and the FDA, on the other hand. The Company and Chiesi have initiated preparations for the BLA submission based on clinical data generated in the one-year completed phase I/II clinical trials of PRX-102 and from the ongoing phase III BRIDGE clinical trial, as well as safety data from all on-going studies. The BLA will also include extensive data from the Company’s completed nonclinical program, as well as information regarding production of PRX-102.

Obtaining marketing approval with respect to any product candidate in any country is dependent on the Company’s ability to implement the necessary regulatory steps required to obtain such approvals. The Company cannot reasonably predict the outcome of these activities.

On October 19, 2017, Protalix Ltd. and Chiesi entered into an Exclusive License and Supply Agreement (the “Chiesi Ex-US Agreement”) pursuant to which Chiesi was granted an exclusive license for all markets outside of the United States to commercialize pegunigalsidase alfa. On July 23, 2018, Protalix Ltd. entered into an Exclusive License and Supply Agreement with Chiesi (the “Chiesi US Agreement”) with respect to the commercialization of pegunigalsidase alfa in the United States.

Under each of the Chiesi Ex-US Agreement and the Chiesi US Agreement (collectively, the “Chiesi Agreements”), Chiesi made an upfront payment to Protalix Ltd. of $25.0 million in connection with the execution of each agreement. In addition, under the Chiesi Ex-US Agreement, Protalix Ltd. is entitled to additional payments of up to $25.0 million in pegunigalsidase alfa development costs, capped at $10.0 million per year, and to receive additional payments of up to $320.0 million, in the aggregate, in regulatory and commercial milestone payments. Under the Chiesi US Agreement, Protalix Ltd. is entitled to payments of up to a maximum of $20.0 million to cover development costs for pegunigalsidase alfa, subject to a maximum of $7.5 million per year, and to receive additional payments of up to a maximum of $760.0 million, in the aggregate, in regulatory and commercial milestone payments.

Under the terms of both of the Chiesi Agreements, Protalix Ltd. will manufacture all of the pegunigalsidase alfa needed under the agreements, subject to certain exceptions, and Chiesi will purchase pegunigalsidase alfa from Protalix, subject to certain terms and conditions. Under the Chiesi Ex-US Agreement, Chiesi is required to make tiered payments of 15% to 35% of its net sales, depending on the amount of annual sales outside of the United States, as consideration for product supply. Under the Chiesi US Agreement, Chiesi is required to make tiered payments of 15% to 40% of its net sales, depending on the amount of annual sales in the United States, as consideration for product supply.

Since its approval by the FDA, taliglucerase alfa has been marketed by Pfizer Inc. (“Pfizer”) in accordance with the exclusive license and supply agreement entered into between Protalix Ltd. and Pfizer, which is referred to herein as the Pfizer Agreement. In October 2015, Protalix Ltd. and Pfizer entered into an amended exclusive license and supply agreement, which is referred to herein as the Amended Pfizer Agreement, pursuant to which the Company sold to Pfizer its share in the collaboration created under the Pfizer Agreement for the commercialization of Elelyso. As part of the sale, the Company agreed to transfer its rights to Elelyso in Israel to Pfizer while gaining full rights to it in Brazil. Under the Amended Pfizer Agreement, Pfizer is entitled to all of the revenues, and is responsible for 100% of expenses globally for Elelyso, excluding Brazil where the Company is responsible for all expenses and retains all revenues.

On June 18, 2013, the Company entered into a Supply and Technology Transfer Agreement (the “Brazil Agreement”) with Fundação Oswaldo Cruz (“Fiocruz”), an arm of the Brazilian Ministry of Health (the “Brazilian MoH”), for taliglucerase alfa. Fiocruz’s purchases of BioManguinhos alfataliglicerase to date have been significantly below certain agreed upon purchase milestones and, accordingly, the Company has the right to terminate the Brazil Agreement. Notwithstanding the termination right, the Company is, at this time, continuing to supply BioManguinhos alfataliglicerase to Fiocruz under the Brazil Agreement, and patients continue to be treated with BioManguinhos alfataliglicerase in Brazil.

b. Basis of presentation

The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).

c. Use of estimates in the preparation of financial statements

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 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.

d. Functional currency

The dollar is the currency of the primary economic environment in which the operations of the Company and its Subsidiaries are conducted. The Company’s revenues are derived in dollars. Most of the Company’s expenses and capital expenditures are incurred in dollars, and the major source of the Company’s financing has been provided in dollars.

Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (stated below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions – exchange rates at the transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) – historical exchange rates. Currency transaction gains and losses are recorded as financial income or expenses, as appropriate.

e. Cash equivalents

The Company considers 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, to be cash equivalents.

f. Inventories

Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials and purchased products is determined using the “moving average” basis.

Cost of finished products is determined as follows: the value of the raw and packaging materials component is determined primarily using the “moving average” basis; the value of the labor and overhead component is determined on an average basis over the production period.

Inventory is written down for estimated obsolescence based upon management assumptions about future demand and market conditions.

g. Property and equipment

1. Property and equipment are stated at cost, net of accumulated depreciation and amortization.

2. The Company’s assets are depreciated by the straight-line method on the basis of their estimated useful lives as follows:


		Years
Laboratory equipment		5
Furniture		10-15
Computer equipment		3

Leasehold improvements are amortized by the straight-line method over the expected lease term, which is shorter than the estimated useful life of the improvements.

h. Impairment in value of long-lived assets

The Company tests long-lived assets for impairment if an indication of impairment exists. If the sum of expected future cash flows of definite life assets (undiscounted and without interest charges) is less than the carrying amount of such assets, the Company recognizes an impairment loss, and writes down the assets to their estimated fair values.

i. Income taxes

1. Deferred income taxes

Deferred taxes are determined utilizing the assets and liabilities method based on the estimated future tax effects of the differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has provided a full valuation allowance with respect to its deferred tax assets. The Company used statutory tax rates of 27% and 23%. See note 12.

2. Uncertainty in income taxes

Tax benefits recognized in the financial statements are those that the Company’s management deems at least more likely than not to be sustained, based on technical merits. The amount of benefits recorded for these tax benefits is measured as the largest benefit the Company’s management deems more likely than not to be sustained.

j. Revenue Recognition

On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments, using the modified retrospective method. The implementation of this Accounting Standards Update (ASU) did not have a material impact on the Company’s consolidated financial statements at adoption.

The Company’s revenue recognition accounting policy from January 1, 2018, following the adoption of the new revenue standard

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.

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.

1. Revenues from selling products

The Company recognizes revenues from selling goods at a point in time when control over the product is transferred to customers (upon delivery).

2. Revenues from Chiesi Agreements

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.

The Company has identified two performance obligation in Chiesi agreements as follows: (1) the license and research and development services and (2) contingent performance obligation regarding future manufacturing.

The Company determined that the license together with the research and development services should be combined into single performance obligation since Chiesi cannot benefit from the license without the research and development services. The research and development services are highly specialized and are dependent on the supply of the drug.

The future manufacturing is contingent on regulatory approvals of the drug and Company deems these services to be separately identifiable from other performance obligations in the contract. Manufacturing services post-regulatory approval are not interdependent or interrelated with the license and research and development services.

The transaction price was comprised of fixed consideration and variable consideration (capped research and development reimbursements). Under ASC 606, the consideration to which the Company would be entitled upon the achievement of contractual milestones, which are contingent upon the occurrence of future events, are a form of 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. Prior to recognizing revenue from variable consideration, the Company uses significant judgment to determine the probability of significant reversal of such revenue.

Since the customer benefits from the research and development services as the entity performs the service, revenue from granting the license and the research and development services is recognized over time using the cost-to-cost method. The Company used significant judgment when it determined the costs expected to be incurred upon satisfying the identified performance obligation.

Revenue from additional research and development services ordered by Chiesi, is recognized over time using the cost-to-cost method.

The Company accounted for the Chiesi US agreement as a modification of the Chiesi Ex-US agreement. As such, the Company recorded revenue through a cumulative catch-up adjustment in the third quarter of 2018 in the amount of $6.2 million.

The Company’s revenue recognition accounting policy prior to January 1, 2018, was materially the same.

k. Research and development costs

Research and development costs are expensed as incurred and consist primarily of personnel, subcontractors and consultants (mainly in connection with clinical trials), facilities, equipment and supplies for research and development activities. Grants received by the Israeli Subsidiary from the National Authority for Technological Innovation (“NATI”), which has replaced many of the functions of the Office of the Chief Scientist of Israel’s Ministry of Industry, Trade and Labor (the “OCS”), are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company or the Subsidiaries will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs are incurred. In connection with purchases of assets, amounts assigned to intangible assets to be used in a particular research and development project that have no alternative future use are charged to research and development costs at the purchase date. Cost of research and development services are included in research and development expenses.

l. Concentration of credit risks and trade receivable

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of bank deposits. The Company deposits these instruments with highly rated financial institutions, mainly in Israeli banks, and, as a matter of policy, limits the amounts of credit exposure to any one financial institution. The Company has not experienced any credit losses in these accounts and does not believe it is exposed to any significant credit risk on these instruments. The Company’s trade receivables represent amounts to be received from Pfizer, Brazil and Chiesi. The Company does not require Pfizer, Brazil or Chiesi to post collateral with respect to receivables.

m. Share-based compensation

The Company accounts for employee’s share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period.

The Company elected to recognize compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method based on the multiple-option award approach.

When stock options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the stock options issued. Options granted are recognized over the related service period using the straight-line method.

The Company elects to account for forfeitures as they occur.

n. Net loss per share

Basic and diluted loss per share (“LPS”) are computed by dividing net loss by the weighted average number of shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”) outstanding for each period. The calculation of diluted LPS does not include approximately 7,684,820, 7,458,380 and 7,838,120 shares of Common Stock underlying outstanding options, restricted shares of Common Stock and shares issuable upon conversion of the convertible notes for the fiscal years ended December 31, 2017, 2018 and 2019, respectively, because the effect would be anti-dilutive. The computation of basic and diluted net loss per common share was adjusted retroactively for all periods presented to reflect the Company’s reverse stock split. See also note 9(b).

o. Convertible notes

All outstanding convertible notes are accounted for using the guidance set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 815 requiring that the Company determine whether the embedded conversion option must be separated and accounted for separately. ASC 470‑20 regarding debt with conversion and other options requires the issuer of a convertible debt instrument that may be settled in cash upon conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The Company accounted for the 2018 Notes (as defined in note 10a) as a liability, on an aggregated basis, in their entirety.The 2021 Notes were accounted for partially as liability and equity components of the instrument and partially as a debt host contract with an embedded derivative resulting from the conversion feature. During the year ended December 31, 2017, the embedded derivative was reclassified to additional paid in capital.

Issuance costs regarding the issuance of the 2021 Notes are amortized using the effective interest rate. The debt discount and debt issuance costs regarding the issuance of the 2018 Notes were deferred and amortized over the 2018 Notes period (5 years).

As of December 31, 2019, a total of $57.9 million aggregate principal amount of the 2021 Notes were outstanding. In addition, as of December 31, 2019, none of the 2018 Notes were outstanding.

p. Leases

Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, the Company classifies the lease as a finance lease. Otherwise, the Company classifies the lease as an operating lease.

Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the consolidated balance sheets.

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 and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The Company’s incremental average borrowing rate at inception was 12.58%.

The Company elected the package of transition practical expedients permitted under the transition guidance within the new standard which, among other things, allows the Company to carryforward the historical lease classification.

The new lease standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means, for those leases, the Company does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of the Company’s leases, other than leases of real estate.

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 Company recognizes lease expenses over the lease term on a straight line basis.

The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.

Additionally, following the adoption of the new lease standard and in subsequent measurements, the Company applies the portfolio approach to account for the operating lease ROU assets and liabilities for certain car leases and incremental borrowing rates.

q. Recently adopted standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases” (Topic 842). The guidance establishes an ROU model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases. The Company adopted the new lease standard and all the related amendments on January 1, 2019 and used the effective date as the Company’s date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. As of the adoption date, the Company recognized an operating lease asset and a liability of $5.9 million and $5.7 million, respectively, as of January 1, 2019 on its balance sheet.

COMMERCIALIZATION AGREEMENTS

12 Months Ended

Dec. 31, 2019

COMMERCIALIZATION AGREEMENTS

COMMERCIALIZATION AGREEMENTS

NOTE 2 - COMMERCIALIZATION AGREEMENTS

1. On November 30, 2009, Protalix Ltd. and Pfizer entered into the Pfizer Agreement (as amended in June 2013) pursuant to which Pfizer was granted an exclusive, worldwide license to develop and commercialize taliglucerase alfa, except for Israel and Brazil. Under the Pfizer Agreement Protalix was entitled to 40% of the results (profits or losses) earned on Pfizer’s sales of taliglucerase alfa.

In October 2015, the Company entered into the Amended Pfizer Agreement with Pfizer. Pursuant to the amendment, the Company granted Pfizer an exclusive license in the entire world, including Israel but excluding Brazil. Pfizer acquired all the information, knowledge and permission to manufacture and sell Elelyso.

Protalix Ltd. also agreed to provide Pfizer with:

Manufacturing and supply of the drug substance for its incorporation into the licensed product in consideration of an agreed price per unit.

Assistance in arranging for the manufacture of the drug substance by Pfizer or by alternative supplier chosen by Pfizer in consideration of an agreed hourly rate plus reimbursement of expenses.

Promissory note – as of the date of the amendment, the Company owed Pfizer $4.3 million as a result of the accumulated losses incurred by the Collaboration Operation. Following the new agreements, the Company committed to pay Pfizer the principal sum of the debt at the earlier of (a) November 12, 2020 and (b) the date upon which it becomes due pursuant to any event of default, as defined. As of December 31, 2018, the promissory note was presented in “other long term liabilities.” As of December 31, 2019, the promissory note was classified to current liabilities.

2. In October 2017, Protalix Ltd. entered into the Chiesi Ex-U.S. Agreement with respect to the commercialization of pegunigalsidase alfa (hereafter – the drug) for the treatment of Fabry disease. Under the terms of the Chiesi Agreement, Protalix Ltd. granted to Chiesi exclusive licensing rights for the commercialization of the drug for all markets outside of the United States. At the effective date, Protalix Ltd. had maintained the exclusive commercialization rights to the drug in the United States, which rights were subsequently granted to Chiesi in July 2018.

Protalix Ltd. will be mainly responsible for (i) continuing the development of the drug until a regulatory approval is granted and (ii) manufacture and supply the drug to Chiesi, based on Chiesi’s requests.

The consideration consists of the following:

Upfront, non-refundable payment of $25.0 million.

Additional payments of up to $25.0 million in development costs, capped at $10.0 million per year.

Payments for additional studies, as may be approved from time to time by Chiesi.

Milestone payments of up to $320.0 million with respect to certain regulatory and commercial events as defined in the Chiesi Agreement.

Additional payments as consideration for the supply of the drug. The payment will vary from 15% to 35% of Chiesi’s average selling price of the drug, depending on the amount of annual sales.

Protalix Ltd. will be the sole manufacturer of the drug.

Chiesi does not have sublicensing rights (except for certain territories).

In July 2018, Protalix Ltd. entered into the Chiesi U.S. Agreement with respect to the commercialization of the drug for the treatment of Fabry disease. Under the terms of the Chiesi U.S. Agreement, Protalix Ltd. granted to Chiesi exclusive licensing rights for the commercialization of the drug for all markets in the United States. Protalix Ltd. will be mainly responsible for (i) continuing the development of the drug until a regulatory approval is granted, (ii) continuing certain clinical development efforts in relation to the drug after a regulatory approval is granted and (iii) manufacture and supply the drug to Chiesi, based on Chiesi’s requests.

The consideration consists of the following:

Upfront, non-refundable payment of $25.0 million.

Additional payments of up to $20.0 million in development costs, capped at $7.5 million per year.

Payments for additional studies, as may be approved from time to time by Chiesi.

Milestone payments of up to $760.0 million with respect to certain regulatory and commercial events as defined in the Chiesi Agreement.

Additional payments as consideration for the supply of the drug. The payment will vary from 15% to 40% of Chiesi’s average selling price of the drug, depending on the amount of annual sales.

Protalix will be the sole manufacturer of the drug.

Chiesi does not have sublicensing rights.

As of December 31, 2019, the Company has received, or is entitled to receive, the following payments from Chiesi:

Upfront payments equal to $50.0 million, in the aggregate.

Payments equal to approximately $40.1 million in consideration for development services performed.

Payments equal to approximately $9.1 million in connection with the performance of extension studies.

During the last quarter of 2019, the Company recognized revenues of approximately $4.5 million related to a $10.0 million future milestone payment. The Company assessed the likelihood of achieving the milestone using the most likely amount method and evaluated for the constraint by including in the transaction price variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Based on the Company’s judgement, the milestone payment is expected to be received in the beginning of 2021.

3. On June 18, 2013, Protalix Ltd. entered into the Brazil Agreement with Fiocruz for BioManguinhos alfataliglicerase. Fiocruz’s purchases of BioManguinhos alfataliglicerase to date have been significantly below certain agreed upon purchase milestones and, accordingly, the Company has the right to terminate the Brazil Agreement. Notwithstanding, the Company is, at this time, continuing to supply BioManguinhos alfataliglicerase to Fiocruz under the Brazil Agreement, and patients continue to be treated with BioManguinhos alfataliglicerase in Brazil. Approximately 25% of adult Gaucher patients in Brazil are currently treated with BioManguinhos alfataliglicerase. The Company is discussing with Fiocruz potential actions that Fiocruz may take to comply with its purchase obligations and, based on such discussions, the Company will determine what it believes to be the course of action that is in the best interest of the Company.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

a. Composition of property and equipment grouped by major classifications is as follows:


	December 31,
(U.S. dollars in thousands)	2018		2019
Laboratory equipment	$	16,732	$	16,849
Furniture and computer equipment		2,565		2,636
Leasehold improvements		16,191		16,492
Equipment under construction		18
	$	35,506	$	35,977
Less – accumulated depreciation and amortization		(29,116)		(30,704)
	$	6,390	$	5,273

b. Depreciation in respect of property and equipment totaled approximately $1.9 million, $1.7 million and $1.6 million for the years ended December 31, 2017, 2018 and 2019, respectively.

INVENTORIES

12 Months Ended

Dec. 31, 2019

INVENTORIES

INVENTORIES

NOTE 4 - INVENTORIES

Inventories at December 31, 2018 and 2019 consisted of the following:


	December 31,
(U.S. dollars in thousands)	2018		2019
Raw materials	$	3,792	$	3,607
Work in progress				552
Finished goods		4,777		3,996
	$	8,569	$	8,155

b. During the years ended December 31, 2018 and 2019, the Company recorded approximately $1.1 million and $0.5 million, respectively, for write-down of inventory under cost of goods sold.

LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT	12 Months Ended
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT	Dec. 31, 2019
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT	NOTE 5 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT The Israeli Subsidiary is required to make a severance payment upon dismissal of an employee or upon termination of employment in certain circumstances. The severance pay liability to the employees (based upon length of service and the latest monthly salary - one month’s salary for each year employed) is recorded on the Company’s balance sheets under “Liability for employee rights upon retirement.” The liability is recorded as if it were payable at each balance sheet date on an undiscounted basis. The liability is funded in part from the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s balance sheets under “Funds in respect of employee rights upon retirement.” These policies are the Company’s assets. However, under labor agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In the years ended December 31, 2017, 2018 and 2019, the Company deposited approximately $166,000, $145,000 and $143,000, respectively, with insurance companies in connection with its severance payment obligations. In accordance with the current employment agreements with certain employees, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon retirement. The Company is fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company’s balance sheets, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plans”). The amounts of severance pay expenses were approximately $906,000, $781,000 and $784,000 for each of the years ended December 31, 2017, 2018 and 2019, respectively, of which approximately $746,000, $620,000 and $642,000 in the years ended December 31, 2017, 2018 and 2019, respectively, were in respect of the Contribution Plans. Gain on amounts funded in respect of employee rights upon retirement totaled approximately $21,000, $46,000 and $58,000 for the years ended December 31, 2017, 2018 and 2019, respectively. The Company expects to contribute approximately $866,000 in the year ending December 31, 2020 to insurance companies in connection with its severance liabilities for its operations for that year, approximately $722,000 of which will be contributed to one or more Contribution Plans. During the five-year period following December 31, 2019, the Company expects to pay future benefits to three employees upon each such employee’s normal retirement age. The Company anticipates that the benefits payable will be approximately $246,000.

COMMITMENTS	12 Months Ended
COMMITMENTS	Dec. 31, 2019
COMMITMENTS
COMMITMENTS	NOTE 6 - COMMITMENTS a. Royalty Commitments The Company is obligated to pay royalties to NATI on proceeds from the sale of products developed from research and development activities that were funded, partially, by grants from NATI or its predecessor, the Office of the Israeli Innovation Authority (IIA). At the time the grants were received, successful development of the related projects was not assured. In the case of failure of a project that was partly financed as described above, the Company is not obligated to pay any such royalties or repay funding received from NATI or the IIA. Under the terms of the applicable funding arrangements, royalties of 3% to 6% are payable on the sale of products developed from projects funded by NATI or the IIA, which payments shall not exceed, in the aggregate, 100% of the amount of the grant received (dollar linked), plus, commencing upon January 1, 2001, interest at an annual rate based on LIBOR. In addition, if the Company receives approval to manufacture products developed with government grants outside the State of Israel, it will be required to pay an increased total amount of royalties (possibly up to 300% of the grant amounts plus interest), depending on the manufacturing volume that is performed outside the State of Israel, and, possibly, an increased royalty rate. Royalty expenses to NATI or the IIA are included in the statement of operations as a component of the cost of revenues and were approximately $1,384,000, $1,619,000 and $1,390,000 during the years ended December 31, 2017, 2018 and 2019, respectively. At December 31, 2018 and 2019, the maximum total royalty amount payable by the Company under these funding arrangements is approximately $41.9 million and $40.8 million, respectively (without interest, assuming 100% of the funds are payable). b. Subcontracting Agreements The Company has entered into sub-contracting agreements with several clinical providers and consultants in Israel, the United States and certain other countries in connection with its primary product development process. As of December 31, 2019, total commitments under said agreements were approximately $9.8 million.

OPERATING LEASES

12 Months Ended

Dec. 31, 2019

OPERATING LEASES

OPERATING LEASES

NOTE 7 - OPERATING LEASES

The Company is a party to a number of lease agreements for its facilities, the latest of which has been extended until 2021. The Company has the option to extend certain of such agreements on two additional occasions for additional five-year periods each, for a total of 10 additional years. During the extended lease period, the aggregate monthly rental payments will increase by 7.5%-10% for each option. The Company expects to exercise these options in future periods. As of December 31, 2019, the Company provided bank guarantees of approximately $439,000, in the aggregate, to secure the fulfillment of its obligations under the lease agreements. As of December 31, 2018, the future minimum lease payments required under the operating leases for such premises are approximately $758,000, $758,000 and $621,000, for fiscal years 2019 through 2021, respectively.

The Company entered into several three-year leases for vehicles which are regularly amended as new vehicles are leased. As of December 31, 2018, the future minimum lease payments for the years ending December 31, 2019, 2020 and 2021 are approximately $474,000, $333,000 and $82,000, respectively.

The following table sets forth data regarding the Company’s operating leases for the year ended December 31, 2019:


(U.S. dollars in thousands)	December 31, 2019
Operating lease costs	$	1,219
Cash paid for amounts included in the measurement of lease liabilities		1,329
Weighted average remaining lease term (in years)		10.508
Weighted average discount rate		12.7	%

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of December 31, 2019:


(U.S. dollars in thousands)	December 31, 2019
2020	$	1,139
2021	$	956
2022	$	845
2023	$	806
After 2024	$	6,683
Total undiscounted cash flows	$	10,429
Less: imputed interest	$	4,762
Present value of operating lease liabilities	$	5,667

REVENUE

12 Months Ended

Dec. 31, 2019

REVENUE

REVENUE

NOTE 8 - REVENUE

The following table summarizes the Company’s disaggregation of revenues:


	Year ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Pfizer	$	12,181	$	5,320	6,722
Brazil	$	7,061	$	3,658	9,144
Revenues from selling goods	$	19,242	$	8,978	15,866
Revenues from license and R&D services	$	1,836	$	25,262	38,827

SHARE CAPITAL

12 Months Ended

Dec. 31, 2019

SHARE CAPITAL

SHARE CAPITAL

NOTE 9 - SHARE CAPITAL

a. Rights of the Company’s Common Stock

The Company’s Common Stock is listed on the NYSE American and on the Tel Aviv Stock Exchange. Each share of Common Stock is entitled to one vote. The holders of shares of Common Stock are 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.

b. Reverse stock split

On December 9, 2019, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation, as amended, to, among other things, effect a reverse stock split at a ratio of one-for-ten. The ratio was determined by the Company’s Board of Directors on December 5, 2019 and the reverse stock split became effective at midnight December 19, 2019. All share and per share amounts included in the consolidated financial statements have been adjusted retrospectively to reflect the effect of the reverse stock split.

c. Stock based compensation

On December 14, 2006, the Board of Directors adopted the Protalix BioTherapeutics, Inc. 2006 Stock Incentive Plan, as amended (the “Plan”). The Plan has since been amended to, among other things, increase the number of shares of common stock available under the Plan to 2,384,165 shares. The grant of options to Israeli employees under the Plan is subject to the terms stipulated by Sections 102 and 102A of the Israeli Income Tax Ordinance. Each option grant made to an Israeli citizen is subject to the track chosen by the Company, either Section 102 or Section 102A of the Israeli Income Tax Ordinance, and pursuant to the terms thereof, the Company is not allowed to claim, as an expense for tax purposes, the amounts credited to employees as a benefit, including amounts recorded as salary benefits in the Company’s accounts, in respect of options granted to employees under the Plan, with the exception of the work-income benefit component, if any, determined on the grant date. For Israeli non-employees, the share option plan is subject to Section 3(i) of the Israeli Income Tax Ordinance.

As of December 31, 2019, 690,182 shares of Common Stock remain available for grant under the Plan.

For purposes of determining the fair value of the options and restricted stock unit granted to employees and non-employees, the Company’s management uses the fair value of the Common Stock.

From January 1, 2017 through December 31, 2019, the Company granted options and shares of restricted stock to certain employees and non-employees as follows:

1. Options and restricted stock unit granted to employees:

a) Below is a table summarizing all of the options grants to employees during the year ended December 31, 2019:


				Fair value
				at grant
				(U.S.
No. of options	Exercise			dollars in		Expiration
granted	price		Vesting period	thousands)		period
160,000	$	4.69	4 years	$	449	10 years
80,000	$	2.00	4 years	$	97	10 years

Set forth below are grants made by the Company to employees (including related parties) during the three-year period ended December 31, 2019 (a portion of such grants appear in the table above):

On September 13, 2018, the Company’s compensation committee approved the grant of 10‑year options to purchase, in the aggregate, 636,000 shares of Common Stock, of which options to purchase 400,000 shares of Common Stock were granted to the Company’s executive officers and options to purchase 236,000 shares of Common Stock were granted to other employees with an exercise price equal to $5.60 per share and $5.10 per share, respectively, under the Plan. The options vest over a four-year period in 16 equal quarterly increments. Vesting of the options granted to the executive officers is subject to acceleration in full upon a Corporate Transaction or a Change in Control, as those terms are defined in the Plan, and are subject to certain other terms and conditions. The Company estimated the fair value of the options on the date of grant using the Black-Scholes option-pricing model to be approximately $1.9 million based on the following weighted average assumptions: share price equal to $5.10; dividend yield of 0% for all years; expected volatility of 64.3%; risk-free interest rates of 2.9%; and expected life of six years.

In June 2019, the Company granted to its new chief executive officer 10-year options to purchase, in the aggregate, 160,000 shares of Common Stock under the Plan. The options have an exercise price equal to $4.69 per share, vest over a four-year period in 16 equal quarterly increments. Vesting of the options is subject to acceleration in full upon a Corporate Transaction or a Change in Control, as those terms are defined in the Plan, and are subject to certain other terms and conditions. The Company estimated the fair value of the options on the date of grant using the Black-Scholes option-pricing model to be approximately $449,000 based on the following weighted average assumptions: share price equal to $4.69; dividend yield of 0% for all years; expected volatility of 65.3%; risk-free interest rates of 1.8%; and expected life of six years.

In September 2019, the Company granted to its new chief financial officer 10-year options to purchase, in the aggregate, 80,000 shares of Common Stock under the Plan. The options have an exercise price equal to $2.00 per share and vest over a four-year period in 16 equal quarterly increments. Vesting of the options is subject to acceleration in full upon a Corporate Transaction or a Change in Control, and are subject to certain other terms and conditions. The Company estimated the fair value of the options on the date of grant using the Black-Scholes option pricing model to be approximately $97,000 based on the following weighted average assumptions: share price equal to $2.00; dividend yield of 0% for all years; expected volatility of 66.48%; risk-free interest rates of 1.695%; and expected life of six years. In addition, contingent upon certain conditions, the new chief financial officer is entitled to a grant of restricted stock units with an aggregate value of $100,000, on an annual basis.

b) The total unrecognized compensation cost of employee stock options at December 31, 2019 is approximately $0.8 million. The unrecognized compensation cost of employee stock options is expected to be recognized over a weighted average period of 1.07 years.

During the three years ended December 31, 2019, no cash was received from employees as a result of employee stock option exercises and the Company did not realize any tax benefit in connection with any exercises.

2. A summary of share option plans, and related information, under all of the Company’s equity incentive plans for the years ended December 31, 2017, 2018 and 2019 is as follows:

a) Options granted to employees:


	Year ended December 31,
	2017			2018			2019
		Weighted			Weighted			Weighted
	Number	average		Number	Average		Number	average
	of	exercise		of	Exercise		of	exercise
	options	price		options	Price		options	price
Outstanding at beginning of year	488,421	$	36.17	472,962	$	36.04	1,000,068	$	15.47
Changes during the year:
Granted				636,000		5.41	240,000		3.79
Forfeited and Expired	15,459		40.04	108,894		46.04	199,871		14.14
Outstanding at end of year	472,962	$	36.04	1,000,068	$	15.47	1,040,197	$	13.03
Exercisable at end of year	445,746	$	36.96	394,486	$	30.65	532,322	$	21.04

b) Options and restricted stocks granted to consultants, directors, and other service providers:


	Year ended December 31,
	2017			2018			2019
	Number			Number			Number
	of	Weighted		of	Weighted		of	Weighted
	Options/	average		options/	average		options/	average
	restricted	exercise		restricted	exercise		restricted	exercise
	stock	price		stock	Price		stock	price
Outstanding at beginning of year	20,800	$	31.56	20,000	$	32.82	15,000	$	33.70
Changes during the year:
Expired	800		0.001	5,000		30.20
Outstanding at end of year	20,000		32.82	15,000		33.70	15,000		33.70
Exercisable at end of year	20,000	$	32.82	15,000	$	33.70	15,000	$	33.70

c) The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2019:


December 31, 2019
	Options outstanding			Options exercisable
		Number of	Weighted		Weighted
		options	average		average
		outstanding	remaining	Number of	remaining
	Exercise	at end of	contractual	options	contractual
	prices	year	life	exercisable	life
$	2.00	80,000	9.73	5,000	9.73
$	4.69	160,000	9.50	20,000	9.50
$	5.10	228,062	8.65	72,687	8.54
$	5.60	258,126	7.09	120,626	5.24
$	17.20	149,209	4.39	149,209	4.39
$	23.70	90,000	1.84	90,000	1.84
$	33.70	15,000	0.62	15,000	0.62
$	69.00	68,000	0.15	68,000	0.15
$	96.60	6,800	0.83	6,800	0.83
		1,055,197		547,322

d) The following table illustrates the effect of share-based compensation on the statement of operations:


	Year ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Research and development expenses	$	182	$	310	$	513
Selling, general and administrative expenses		155		204		322
	$	337	$	514	$	835

b. Private and 144A Offerings

2. On July 24, 2017, the Company entered into a Note Purchase Agreement with certain institutional investors relating to the private issuance and sale by the Company of $10.0 million in aggregate principal amount of its 2021 Notes. The 2021 Notes were issued pursuant to the base indenture dated December 7, 2016. Concurrently, the Company exchanged with certain existing note holders $9.0 million aggregate principal amount of the Company’s outstanding 2018 Notes for $8.55 million aggregate principal amount of newly issued 2022 Notes (as described in note 10c). See also note 10c.

3. On May 22, 2018, the Company agreed to a privately negotiated exchange with certain existing note holders to exchange $3,423,000 aggregate principal amount of the Company’s outstanding 2018 Notes for 261,363 shares of the Company’s common stock and $2.23 million in cash to cover outstanding principal and accrued interest on the exchanged 2018 Notes. See also note 10a.

CONVERTIBLE NOTES

12 Months Ended

Dec. 31, 2019

CONVERTIBLE NOTES

CONVERTIBLE NOTES

NOTE 10 - CONVERTIBLE NOTES

a. 4.5% Convertible Notes (“2018 Notes”)

On September 18, 2013, the Company completed a private placement of $69.0 million in aggregate principal amount of Senior Convertible Notes (the “2018 Notes”) which accrued interest at a rate of 4.50% per year. In December 2016, $54.1 million aggregate principal amount of 2018 Notes were exchanged for 2021 Notes and shares of common stock (see also note 10b) and in July 2017, $9.0 million aggregate principal amount of 2018 Notes were exchanged for 2022 Notes as defined in note 10c (see also note 10c).

On June 2018, the Company exchanged $3.423 million aggregate principal amount of the Company’s 2018 Notes for 261,363 shares of Common Stock and approximately $2.23 million in cash and delivered the necessary funds under the indenture governing the 2018 Notes to effectively discharge such notes, which was $2.53 million. On September 15, 2018, the 2018 Notes matured and were paid in full.

The following table sets forth total interest expense recognized for the years ended December 31, 2017 and 2018 related to the 2018 Notes:


	December 31,
(U.S. dollars in thousands)	2017		2018
Contractual interest expense	$	501	$	139
Amortization of debt issuance costs and debt discount		71		15
Gain from early redemption		—		(32)
Total	$	572	$	122

b. 7.5% Convertible Notes (“2021 Notes”)

On December 1, 2016, the Company entered into a note purchase agreement with institutional investors, which held part of the 2018 Notes (the “2016 Purchasers”), relating to the sale by the Company of $22.5 million aggregate principal amount of 7.50% Senior Secured Convertible Notes due 2021 in a private placement pursuant to Section 4(a)(2) under the Securities Act of 1933, as amended (the “Securities Act”). Concurrently with the consummation of the private placement of the 2021 Notes, the Company entered into a privately negotiated exchange agreement (the “2016 Exchange Agreement”) with certain existing note holders identified therein to exchange $54.1 million aggregate principal amount of the Company’s outstanding 2018 Notes for (i) $40.186 million aggregate principal amount of 2021 Notes, (ii) 2,384,673 shares of Common Stock and (iii) cash, equal to the accrued and unpaid interest on the 2018 Notes and any fractional shares. The closing date of the purchase agreement and the 2016 Exchange Agreement was December 7, 2016. The issuance of the 2021 Notes and shares in the exchange and the private placement were made in reliance on the exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof. The net proceeds from the private placement were $19.7 million, after deducting the placement agent’s fees and the Company’s estimated offering expenses.

In connection with the completion of the exchange and the private placement, the Company entered into the 2016 Indenture. The 2021 Notes accrue interest at a rate of 7.50% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2017. A portion of the interest payable may be made in shares of Common Stock at the Company’s election. The Notes will mature on November 15, 2021.

On July 24, 2017, the Company entered into another note purchase agreement with certain institutional investors relating to the private issuance and sale by the Company of $10.0 million in aggregate principal amount of its 2021 Notes. The 2021 Notes were issued pursuant to the 2016 Indenture dated (December 7, 2016). The net proceeds from this purchase agreement were $9.5 million, after deducting the Company’s offering expenses.

Holders may convert their 2021 Notes at any time. The initial conversion rate for the 2021 Notes is 117.64706 shares of the Common Stock for each $1,000 principal amount of 2021 Notes (equivalent to an initial conversion price of approximately $8.50 per share of the Common Stock). Upon conversion, the Company may settle the 2021 Notes by paying or delivering, as the case may be, cash, shares of Common Stock or a combination thereof, at the Company’s election.

During the year ended December 31, 2018, note holders converted $1.15 million aggregate principal amount of the 2021 Notes into a total of 153,742 shares of Common Stock and cash payments of approximately $15,887, in the aggregate. As of December 31, 2019, a total of $57.9 million aggregate principal amount of the 2021 Notes were outstanding.

Prior to the maturity date, the Company may redeem in cash:

any or all of the 2021 Notes if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days exceeds 150% of the conversion price on each applicable trading day, or

all of the 2021 Notes then outstanding if the aggregate principal amount of the 2021 Notes then outstanding is less than 15% of the aggregate principal amount of the notes issued.

No redemption was made during the years 2018 and 2019.

The 2021 Notes are guaranteed by the Restricted Subsidiaries (as defined in the 2016 Indenture) and are secured by a first-priority security interest in all of the present and after-acquired assets of the Company and each of the Restricted Subsidiaries (the “Collateral”), including, but not limited to, (i) 100% of the capital stock of the Guarantors (as defined in the 2016 Indenture) and each Restricted Subsidiary of the Company that is held by the Company or any Restricted Subsidiary, (ii) intellectual property, including all copyrights, copyright licenses, patents, patent licenses, software, trademarks, trademark licenses and trade secrets and other proprietary information, including, but not limited to, domain names, (iii) all cash, deposit accounts, securities accounts, commodities accounts and contract rights, (iv) all real property and leased property, subject to applicable minimum thresholds, as set forth in the 2016 Indenture, and (v) all other tangible and intangibles of the Company and the Guarantors. In connection with the grant of such liens, the Company entered into certain agreements with both Wilmington Savings Fund Society, FSB, as collateral agent in the United States, and with Altshuler Shaham Trusts Ltd., as security trustee in Israel. The 2016 Indenture restricts the ability of the Company, the Subsidiaries and any future subsidiaries to make certain investments, including transfers of the Company’s assets that constitute collateral securing the 2016 Notes, in its existing and future foreign subsidiaries, subject to certain exceptions.

Upon (i) the occurrence of a fundamental change (as defined in the 2016 Indenture) or (ii) if the Company calls the 2021 Notes for redemption as described below (either event, a “make-whole fundamental change”) and a holder elects to convert its 2021 Notes in connection with such make-whole fundamental change, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares (the “Additional Shares”). In no event will the conversion rate exceed the maximum conversion rate, which is 178.73100 shares per $1,000 principal amount of 2021 Notes, which amount is inclusive of repayment of the principal of the 2021 Notes.

If a fundamental change occurs at any time, holders will have the right, at their option, to require the Company to purchase for cash any or all of the 2021 Notes, or any portion of the principal amount thereof, that is equal to $1,000 or an integral multiple of $1,000 in excess thereof, on a date of the Company’s choosing that is not less than 20 calendar days nor more than 35 calendar days after the date of the applicable fundamental change company notice. The price the Company is required to pay for a 2021 Note is equal to 100% of the principal amount of such 2021 Note plus accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date. Under the terms of the 2016 Indenture, the Company is required to maintain a minimum cash balance of at least $7.5 million.

As the settlement upon conversion was subject to compliance with the listing standards of the NYSE American, until the Company’s stockholders’ approval was obtained, the Company was prohibited by these rules from issuing shares in excess of 20% of its outstanding shares (calculated as of December 1, 2016). On April 12, 2017, the Company’s stockholders approved the issuance of shares of the Company’s Common Stock in excess of 20% of the Company’s outstanding shares of Common Stock to settle conversion requests and pay interest on the Company’s issued 2021 Notes.

The following table sets forth total interest expense recognized related to the 2021 Notes:


	Year Ended December 31,
(U.S. Dollars in thousands)	2017		2018		2019
Contractual interest expense	$	4,434	$	4,359	$	4,344
Debt discount amortization		2,309		2,587		2,991
Change in fair value of convertible note embedded derivative		38,061
Interest payment in connection with conversions		3,918		234
Loss (income) in connection with conversions		(1,643)		245
Total	$	47,079	$	7,425	$	7,335

c. 4.5% Convertible Notes Due 2022 (“2022 Notes”)

On July 24, 2017, the Company entered into a privately negotiated exchange agreement (the “2017 Exchange Agreement”) with certain existing note holders identified therein to exchange $9.0 million aggregate principal amount of the Company’s outstanding 2018 Notes for (i) $8.55 million aggregate principal amount of the Company’s 4.5% convertible promissory notes due 2022, (ii) $275,000 in cash consideration and (iii) cash equal to the accrued and unpaid interest on the exchanged 2018 Notes. All of the 2022 Notes were converted during the year ended December 31, 2017 into 1,123,964 shares of Common Stock.

The following table sets forth total interest expense recognized related to the 2022 Notes:


	Year Ended
(U.S. Dollars in thousands)	December 31, 2017
Contractual interest expense	$	55
Debt premium amortization		(46)
Loss on extinguishment		1,325
Total	$	1,334

FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2019

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

NOTE 11 - FAIR VALUE MEASUREMENT

The Company discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received from the sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

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.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

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.

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.

The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The fair value of the convertible notes derivative is based on level 3 measurement.

The fair value of the $57.9 million 2021 Notes as of December 31, 2019 is approximately $60.9 million based on a level 3 measurement.

The Company prepared a valuation of the fair value of the 2021 Notes (a Level 3 valuation) as of December 31, 2019. The value of these notes were estimated by implementing the binomial model. The liability component was valued based on the Income Approach. The following parameters were used:


	2021 Notes
Stock price (USD)	3.28
Expected term	1.88
Risk free rate	1.57	%
Volatility	90.74	%
Yield	11.02	%

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

TAXES ON INCOME

12 Months Ended

Dec. 31, 2019

TAXES ON INCOME

TAXES ON INCOME

NOTE 12 - TAXES ON INCOME

The Company

Protalix BioTherapeutics, Inc. is taxed according to U.S. tax laws. The Company’s income is taxed in the United States at the rate of up to 27%.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted into law. The new legislation represents fundamental and dramatic modifications to the U.S. tax system. The Act contained several key tax provisions that impacted the Company including the reduction of the maximum U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. Other significant changes under the Act included, among others, a one-time repatriation tax on accumulated foreign earnings, a limitation of net operating loss deduction to 80% of taxable income, and indefinite carryover of post‑2017 net operating losses. The Act also repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. Losses generated prior to January 1, 2018 will still be subject to the 20‑year carryforward limitation and the alternative minimum tax. Other impacts due to the Act included the repeal of the domestic manufacturing deduction, modification of taxation of controlled foreign corporations, a base erosion anti-abuse tax, modification of interest expense limitation rules, modification of limitation on deductibility of excessive executive compensation, and taxation of global intangible low-taxed income.

Modification of interest expense limitation rules under the Act provides generally that for taxable years 2018‑2021 interest expense deduction shall be limited to 30% of the EBITDA and for taxable years 2022 onwards to 30% of EBIT. Disallowed interest deduction may be carried forward indefinitely. The Company believes that any potential impact (if applicable) of this limitation will be offset by utilization of available net operating losses.

U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted.

The Company believes that all future profits of its subsidiaries will be indefinitely reinvested or that there is no expectation to distribute any taxable dividends from these subsidiaries. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is estimated as an immaterial amount.

b. Protalix Ltd.

The Israeli Subsidiary is taxed according to Israeli tax laws:

Tax rates

The income of the Israeli Subsidiary, other than income from “Approved Enterprises,” is taxed in Israel at the regular corporate tax rates.

In December 2016, the Economic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the 2017 and 2018 Budget Years), 2016 was published, introducing a gradual reduction in corporate tax rate from 25% to 23%. However, the law also included a temporary provision setting the corporate tax rate in 2017 at 24%. As a result, the corporate tax rate was 23% in 2018 and is 23% in 2019 and thereafter.

Capital gain on a sale of assets is subject to capital gain tax according to the corporate tax rate in effect in the year during which the assets are sold.

The Law for the Encouragement of Capital Investments, 1959 (the “Encouragement of Capital Investments Law”)

Under the Encouragement of Capital Investments Law, including Amendment No. 60 to the Encouragement of Capital Investments Law as published in April 2005, by virtue of the “Approved Enterprise” or “Benefited Enterprise” status the Israeli Subsidiary is entitled to various tax benefits as follows:

a. Reduced tax rates

Income derived from the Approved Enterprise during a 10‑year period commencing upon the year in which the enterprise first realizes taxable income is tax exempt, provided that the maximum period to which it is restricted by the Encouragement of Capital Investments Law has not elapsed.

The Israeli Subsidiary has an “Approved Enterprise” plan since 2004 and “Benefited Enterprise” plan since 2009. The period of benefits in respect of the main enterprise of the Company has not yet commenced. The period during which the Company is entitled to benefits in connection with the Benefited Enterprise expires in 2021.

If the Israeli Subsidiary subsequently pays a dividend out of income derived from the “Approved Enterprise” or “Benefited Enterprise” during the tax exemption period, it will be subject to tax on the gross amount distributed (including the company tax on these amounts), at the rate which would have been applicable if such income not been exempted.

b. Accelerated depreciation

The Israeli Subsidiary is entitled to claim accelerated depreciation, as provided by Israeli law, in the first five years of operation of each asset, in respect of buildings, machinery and equipment used by the Approved Enterprise and the Benefited Enterprise.

c. Conditions for entitlement to the benefits

The Israeli Subsidiary’s entitlement to the benefits described above is subject to its fulfillment of conditions stipulated by the law, rules and regulations published thereunder, and the instruments of approval for the specific investment in an approved enterprise. Failure by the Israeli Subsidiary to comply with these conditions may result in the cancellation of the benefits, in whole or in part, and the Subsidiary may be required to refund the amount of the benefits with interest. The Israeli Subsidiary received a final implementation approval with respect to its “Approved Enterprise” from the Investment Center.

d. Amendment of the Law for the Encouragement of Capital Investments, 1959

In recent years, several amendments have been made to the Encouragement of Capital Investments Law which have enabled new alternative benefit tracks, subject to certain conditions.

The Encouragement of Capital Investments Law was amended as part of the Economic Policy Law for the years 2011‑2012 (amendment 68 to the Encouragement of Capital Investments Law), which was passed by the Israeli Knesset on December 29, 2010. The amendment sets alternative benefit tracks to those currently in effect under the provisions of the Encouragement of Capital Investments Law. On December 29, 2016, Amendment 73 to the Encouragement of Capital Investments Law was published. This amendment sets new benefit tracks, inter alia, “Preferred Technological Enterprise” and “Special Preferred Technological Enterprise” (the “Capital Investments Law Amendment”).

To date, the Company has elected not to have the Capital Investments Law Amendment apply to the Company.

c. Tax losses carried forward to future years

As of December 31, 2019, the Company had aggregate net operating loss (“NOL”) carry-forwards equal to approximately $213.1 million that are available to reduce future taxable income as follows:

The Company

The Company’s carry-forward NOLs, equal to approximately $29.0 million (as of December 31, 2018, approximately $26 million), may be restricted under Section 382 of the Internal Revenue Code (“IRC”). IRC Section 382 applies whenever a corporation with NOL experiences an ownership change. As a result of IRC Section 382, the taxable income for any post change year that may be offset by a pre-change NOL may not exceed the general IRC Section 382 limitation, which is the fair market value of the pre-change entity multiplied by the IRC long-term tax exempt rate.

Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassesses its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly.

Protalix Ltd.

At December 31, 2019, the Israeli Subsidiary had approximately $184.1 million (as of December 31, 2018, approximately $185 million) of carry-forward NOLs that are available to reduce future taxable income with no limited period of use.

d. Deferred income taxes:

The components of the Company’s net deferred tax assets at December 31, 2018 and 2019 were as follows:


	December 31,
(U.S. dollars in thousands)	2018		2019
In respect of:
Research and development expenses	$	6,188	$	9,247
Other timing differences		(11)		25
Net operating loss carry forwards		49,436		50,236
Valuation allowance		(55,613)		(59,508)
		—		—

Deferred taxes are computed using the tax rates expected to be in effect when those differences reverse.

e. Reconciliation of the theoretical tax expense to actual tax expense

The main reconciling item between the statutory tax rate of the Company and the effective rate is the provision for a full valuation allowance in respect of tax benefits from carry forward tax losses due to the uncertainty of the realization of such tax benefits (see above).

f. Tax assessments

In accordance with the Income Tax Ordinance, as of December 31, 2019, all of Protalix Ltd.’s tax assessments through tax year 2014 are considered final.

A summary of open tax years by major jurisdiction is presented below:


Jurisdiction:		Years:
Israel		2015-2019
United States (*)		2015-2019

(*)Includes federal, state and local (or similar provincial jurisdictions) tax positions.

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

12 Months Ended

Dec. 31, 2019

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

NOTE 13 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Balance sheets:


	December 31,
(U.S. dollars in thousands)	2018		2019
a. Other assets:
Institutions	$	574	$	604
State of Israel (see note 6a)		190		26
Restricted deposit		561		820
Prepaid expenses		453		314
Sundry		99		68
	$	1,877	$	1,832


	December 31,
(U.S. dollars in thousands)	2018		2019
b. Accounts payable and accruals – other:
Payroll and related expenses	$	1,099	$	1,381
Interest payable		555		555
Provision for vacation		1,658		1,754
Accrued expenses		6,368		7,360
Royalties payable		369		757
Property and equipment suppliers		225		98
	$	10,274	$	11,905

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 14 - RELATED PARTY TRANSACTIONS


	Year Ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Compensation (including share-based compensation) to the non-executive directors	$	499	$	467	$	444

SELECTED QUARTERLY FINANCIAL DATA (unaudited)

12 Months Ended

Dec. 31, 2019

SELECTED QUARTERLY FINANCIAL DATA

SELECTED QUARTERLY FINANCIAL DATA

NOTE 15 - SELECTED QUARTERLY FINANCIAL DATA (unaudited)

Summarized quarterly financial data for the years ended December 31, 2019 and 2018 are set forth in the following tables:


	Three Months Ended
	2018								2019
	March 31		June 30		Sept. 30		Dec. 31		March 31		June 30		Sept. 30		Dec. 31
Revenues from selling goods	$	4,553	$	2,006	$	663	$	1,756	$	3,530	$	3,430	$	5,126	$	3,780
Revenues from license agreements		2,161		2,832		11,672		8,597		6,909		8,817		9,122		13,979
Operating (loss) profit		(5,151)		(6,744)		(3,741)		(3,672)		(5,534)		(5,839)		(1,544)		2,200
Net (loss) profit for the period	$	(7,239)	$	(8,462)	$	(5,322)	$	(5,434)	$	(7,264)	$	(7,743)	$	(3,560)	$	291
Net basic and diluted income (loss) per share of common stock	$	(0.5)	$	(0.6)	$	(0.4)	$	(0.4)	$	(0.5)	$	(0.5)	$	(0.2)	$	0.02

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16 - SUBSEQUENT EVENTS On March 12, 2020, the Company entered into securities purchase agreements (the “Purchase Agreements”), with certain existing and new institutional and other accredited investors (the “Purchasers”). Pursuant to the Purchase Agreements, the Company, in a private placement in reliance on the exemption from the registration requirements of the Securities Act (the “Private Placement”), agreed to issue and sell to the Purchasers an aggregate of approximately 17.6 million unregistered shares of Common Stock at a price per share of $2.485. Upon the closing, the Company will generate gross proceeds equal to approximately $43.7 million in the Private Placement. Each share of Common Stock issued was accompanied by a warrant to purchase one share of Common Stock (the “Warrant Shares”), at an exercise price equal to $2.36. In accordance with ASC 855 “Subsequent Events” the Company evaluated subsequent events through the date the condensed consolidated financial statements were issued. The Company concluded that no other subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2019

SIGNIFICANT ACCOUNTING POLICIES

General

a. General

The Company’s product pipeline currently includes, among other candidates:

(1)

pegunigalsidase alfa, or PRX‑102, a therapeutic protein candidate for the treatment of Fabry disease, a rare, genetic lysosomal disorder;

(2)

alidornase alfa, or PRX-110, a proprietary plant cell recombinant human Deoxyribonuclease 1, or DNase; and

(3)

Basis of presentation

b. Basis of presentation

The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).

Use of estimates in the preparation of financial statements

c. Use of estimates in the preparation of financial statements

Functional currency

d. Functional currency

Cash equivalents

e. Cash equivalents

Inventories

f. Inventories

Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials and purchased products is determined using the “moving average” basis.

Inventory is written down for estimated obsolescence based upon management assumptions about future demand and market conditions.

Property and equipment

g. Property and equipment

1. Property and equipment are stated at cost, net of accumulated depreciation and amortization.

2. The Company’s assets are depreciated by the straight-line method on the basis of their estimated useful lives as follows:


		Years
Laboratory equipment		5
Furniture		10-15
Computer equipment		3

Leasehold improvements are amortized by the straight-line method over the expected lease term, which is shorter than the estimated useful life of the improvements.

Impairment in value of long-lived assets

h. Impairment in value of long-lived assets

Income taxes

i. Income taxes

1. Deferred income taxes

2. Uncertainty in income taxes

Revenue Recognition

j. Revenue Recognition

The Company’s revenue recognition accounting policy from January 1, 2018, following the adoption of the new revenue standard

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.

1. Revenues from selling products

The Company recognizes revenues from selling goods at a point in time when control over the product is transferred to customers (upon delivery).

2. Revenues from Chiesi Agreements

Revenue from additional research and development services ordered by Chiesi, is recognized over time using the cost-to-cost method.

The Company’s revenue recognition accounting policy prior to January 1, 2018, was materially the same.

Research and development costs

k. Research and development costs

Concentration of credit risks and trade receivable

l. Concentration of credit risks and trade receivable

Share-based compensation

m. Share-based compensation

The Company elects to account for forfeitures as they occur.

Net loss per share

n. Net loss per share

Convertible notes

o. Convertible notes

As of December 31, 2019, a total of $57.9 million aggregate principal amount of the 2021 Notes were outstanding. In addition, as of December 31, 2019, none of the 2018 Notes were outstanding.

Leases

p. Leases

Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the consolidated balance sheets.

The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.

Recently adopted standards

q. Recently adopted standards

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2019

SIGNIFICANT ACCOUNTING POLICIES

Schedule of Useful Life

2. The Company’s assets are depreciated by the straight-line method on the basis of their estimated useful lives as follows:


		Years
Laboratory equipment		5
Furniture		10-15
Computer equipment		3

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2019

PROPERTY AND EQUIPMENT

Schedule of Property and Equipment

a. Composition of property and equipment grouped by major classifications is as follows:


	December 31,
(U.S. dollars in thousands)	2018		2019
Laboratory equipment	$	16,732	$	16,849
Furniture and computer equipment		2,565		2,636
Leasehold improvements		16,191		16,492
Equipment under construction		18
	$	35,506	$	35,977
Less – accumulated depreciation and amortization		(29,116)		(30,704)
	$	6,390	$	5,273

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2019

INVENTORIES

Schedule of Inventory

Inventories at December 31, 2018 and 2019 consisted of the following:


	December 31,
(U.S. dollars in thousands)	2018		2019
Raw materials	$	3,792	$	3,607
Work in progress				552
Finished goods		4,777		3,996
	$	8,569	$	8,155

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2019

OPERATING LEASES

Schedule of operating leases

The following table sets forth data regarding the Company’s operating leases for the year ended December 31, 2019:


(U.S. dollars in thousands)	December 31, 2019
Operating lease costs	$	1,219
Cash paid for amounts included in the measurement of lease liabilities		1,329
Weighted average remaining lease term (in years)		10.508
Weighted average discount rate		12.7	%

Schedule of maturity analysis of operating leases

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of December 31, 2019:


(U.S. dollars in thousands)	December 31, 2019
2020	$	1,139
2021	$	956
2022	$	845
2023	$	806
After 2024	$	6,683
Total undiscounted cash flows	$	10,429
Less: imputed interest	$	4,762
Present value of operating lease liabilities	$	5,667

REVENUE (Tables)

12 Months Ended

Dec. 31, 2019

REVENUE

Schedule of Company's disaggregation of revenues

The following table summarizes the Company’s disaggregation of revenues:


	Year ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Pfizer	$	12,181	$	5,320	6,722
Brazil	$	7,061	$	3,658	9,144
Revenues from selling goods	$	19,242	$	8,978	15,866
Revenues from license and R&D services	$	1,836	$	25,262	38,827

SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2019

SHARE CAPITAL

Schedule of Options and Restricted Stocks Granted

a) Below is a table summarizing all of the options grants to employees during the year ended December 31, 2019:


				Fair value
				at grant
				(U.S.
No. of options	Exercise			dollars in		Expiration
granted	price		Vesting period	thousands)		period
160,000	$	4.69	4 years	$	449	10 years
80,000	$	2.00	4 years	$	97	10 years

Summary of Stock Option Activity - Options Granted to Employees

a) Options granted to employees:


	Year ended December 31,
	2017			2018			2019
		Weighted			Weighted			Weighted
	Number	average		Number	Average		Number	average
	of	exercise		of	Exercise		of	exercise
	options	price		options	Price		options	price
Outstanding at beginning of year	488,421	$	36.17	472,962	$	36.04	1,000,068	$	15.47
Changes during the year:
Granted				636,000		5.41	240,000		3.79
Forfeited and Expired	15,459		40.04	108,894		46.04	199,871		14.14
Outstanding at end of year	472,962	$	36.04	1,000,068	$	15.47	1,040,197	$	13.03
Exercisable at end of year	445,746	$	36.96	394,486	$	30.65	532,322	$	21.04

Schedule of Options Granted to other Service Providers

b) Options and restricted stocks granted to consultants, directors, and other service providers:


	Year ended December 31,
	2017			2018			2019
	Number			Number			Number
	of	Weighted		of	Weighted		of	Weighted
	Options/	average		options/	average		options/	average
	restricted	exercise		restricted	exercise		restricted	exercise
	stock	price		stock	Price		stock	price
Outstanding at beginning of year	20,800	$	31.56	20,000	$	32.82	15,000	$	33.70
Changes during the year:
Expired	800		0.001	5,000		30.20
Outstanding at end of year	20,000		32.82	15,000		33.70	15,000		33.70
Exercisable at end of year	20,000	$	32.82	15,000	$	33.70	15,000	$	33.70

Schedule of Information about Share Options Outstanding and exercisable

c) The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2019:


December 31, 2019
	Options outstanding			Options exercisable
		Number of	Weighted		Weighted
		options	average		average
		outstanding	remaining	Number of	remaining
	Exercise	at end of	contractual	options	contractual
	prices	year	life	exercisable	life
$	2.00	80,000	9.73	5,000	9.73
$	4.69	160,000	9.50	20,000	9.50
$	5.10	228,062	8.65	72,687	8.54
$	5.60	258,126	7.09	120,626	5.24
$	17.20	149,209	4.39	149,209	4.39
$	23.70	90,000	1.84	90,000	1.84
$	33.70	15,000	0.62	15,000	0.62
$	69.00	68,000	0.15	68,000	0.15
$	96.60	6,800	0.83	6,800	0.83
		1,055,197		547,322

Schedule of Stock-Based Compensation Expense in Statement of Operations

d) The following table illustrates the effect of share-based compensation on the statement of operations:


	Year ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Research and development expenses	$	182	$	310	$	513
Selling, general and administrative expenses		155		204		322
	$	337	$	514	$	835

CONVERTIBLE NOTES (Tables)

12 Months Ended

Dec. 31, 2019

Notes 2018 [Member]

Schedule of Interest Expense Recognized

The following table sets forth total interest expense recognized for the years ended December 31, 2017 and 2018 related to the 2018 Notes:


	December 31,
(U.S. dollars in thousands)	2017		2018
Contractual interest expense	$	501	$	139
Amortization of debt issuance costs and debt discount		71		15
Gain from early redemption		—		(32)
Total	$	572	$	122

Notes 2021 [Member]

Schedule of Interest Expense Recognized

The following table sets forth total interest expense recognized related to the 2021 Notes:


	Year Ended December 31,
(U.S. Dollars in thousands)	2017		2018		2019
Contractual interest expense	$	4,434	$	4,359	$	4,344
Debt discount amortization		2,309		2,587		2,991
Change in fair value of convertible note embedded derivative		38,061
Interest payment in connection with conversions		3,918		234
Loss (income) in connection with conversions		(1,643)		245
Total	$	47,079	$	7,425	$	7,335

Notes 2022 [Member]

Schedule of Interest Expense Recognized

The following table sets forth total interest expense recognized related to the 2022 Notes:


	Year Ended
(U.S. Dollars in thousands)	December 31, 2017
Contractual interest expense	$	55
Debt premium amortization		(46)
Loss on extinguishment		1,325
Total	$	1,334

FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2019

Notes 2021 [Member]

Schedule of liability component based on income approach

The following parameters were used:


	2021 Notes
Stock price (USD)	3.28
Expected term	1.88
Risk free rate	1.57	%
Volatility	90.74	%
Yield	11.02	%

TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2019

TAXES ON INCOME

Schedule of Deferred Tax Assets

The components of the Company’s net deferred tax assets at December 31, 2018 and 2019 were as follows:


	December 31,
(U.S. dollars in thousands)	2018		2019
In respect of:
Research and development expenses	$	6,188	$	9,247
Other timing differences		(11)		25
Net operating loss carry forwards		49,436		50,236
Valuation allowance		(55,613)		(59,508)
		—		—

Schedule of Open Tax Years

A summary of open tax years by major jurisdiction is presented below:


Jurisdiction:		Years:
Israel		2015-2019
United States (*)		2015-2019

(*)Includes federal, state and local (or similar provincial jurisdictions) tax positions.

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Supplemental Information, Balance Sheets


	December 31,
(U.S. dollars in thousands)	2018		2019
a. Other assets:
Institutions	$	574	$	604
State of Israel (see note 6a)		190		26
Restricted deposit		561		820
Prepaid expenses		453		314
Sundry		99		68
	$	1,877	$	1,832


	December 31,
(U.S. dollars in thousands)	2018		2019
b. Accounts payable and accruals – other:
Payroll and related expenses	$	1,099	$	1,381
Interest payable		555		555
Provision for vacation		1,658		1,754
Accrued expenses		6,368		7,360
Royalties payable		369		757
Property and equipment suppliers		225		98
	$	10,274	$	11,905

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

Schedule of Related Party Transactions


	Year Ended December 31,
(U.S. dollars in thousands)	2017		2018		2019
Compensation (including share-based compensation) to the non-executive directors	$	499	$	467	$	444

SELECTED QUARTERLY FINANCIAL DATA (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

SELECTED QUARTERLY FINANCIAL DATA

Schedule of quarterly financial data


	Three Months Ended
	2018								2019
	March 31		June 30		Sept. 30		Dec. 31		March 31		June 30		Sept. 30		Dec. 31
Revenues from selling goods	$	4,553	$	2,006	$	663	$	1,756	$	3,530	$	3,430	$	5,126	$	3,780
Revenues from license agreements		2,161		2,832		11,672		8,597		6,909		8,817		9,122		13,979
Operating (loss) profit		(5,151)		(6,744)		(3,741)		(3,672)		(5,534)		(5,839)		(1,544)		2,200
Net (loss) profit for the period	$	(7,239)	$	(8,462)	$	(5,322)	$	(5,434)	$	(7,264)	$	(7,743)	$	(3,560)	$	291
Net basic and diluted income (loss) per share of common stock	$	(0.5)	$	(0.6)	$	(0.4)	$	(0.4)	$	(0.5)	$	(0.5)	$	(0.2)	$	0.02

SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Property and Equipment) (Details)	12 Months Ended
	Dec. 31, 2019
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Furniture [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	10 years
Furniture [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	15 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years

SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended	12 Months Ended
	Jul. 23, 2018	Oct. 19, 2017	Oct. 31, 2015	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Dec. 31, 2016
Significant Accounting Policies [Line Items]
Common Stock, Par or Stated Value Per Share					$ 0.001	$ 0.001
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount					7,838,120	7,458,380	7,684,820
Retained Earnings (Accumulated Deficit)					$ (340,829)	$ (322,553)
Cash and Cash Equivalents, at Carrying Value					$ 17,792	37,808	$ 51,163		$ 63,281
Tax Rate Assumption Related To Deferred Tax Difference Reversal					The Company used statutory tax rates of 27% and 23%.
Incremental average borrowing rate at inception					12.58%
Operating Lease, Right-of-Use Asset					$ 5,677	$ 0		$ 5,900
Operating Lease, Liability					5,667			$ 5,700
2021 Notes [Member]
Significant Accounting Policies [Line Items]
Long-term Debt, Gross					$ 57,900
Amended Pfizer Agreement [Member] \| Protalix Bio Therapeutics Incorporation [Member] \| Brazil [Member]
Significant Accounting Policies [Line Items]
Collaborative Arrangement Revenues and Expenses Sharing Percentage			100.00%
Chiesi US Agreement [Member]
Significant Accounting Policies [Line Items]
Upfront Nonrefundable Non-Creditable Payment Receivable	$ 25,000	$ 25,000
Additional Amounts Payable To Cover Development Costs	20,000
Maximum Entitlement Of Development Costs To Cover Per Year	7,500
Additional Amount Payable For Achievement Of Regulatory And Commercial Milestones	$ 760,000
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Modification of Contract				$ 6,200
Chiesi US Agreement [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Payment On Net Sales Percentage	15.00%
Chiesi US Agreement [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Payment On Net Sales Percentage	40.00%
Chiesi Ex US Agreement [Member]
Significant Accounting Policies [Line Items]
Upfront Nonrefundable Non-Creditable Payment Receivable		25,000
Additional Amounts Payable To Cover Development Costs		25,000
Maximum Entitlement Of Development Costs To Cover Per Year		10,000
Additional Amount Payable For Achievement Of Regulatory And Commercial Milestones		$ 320,000
Chiesi Ex US Agreement [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Payment On Net Sales Percentage		15.00%
Chiesi Ex US Agreement [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Payment On Net Sales Percentage		35.00%

COMMERCIALIZATION AGREEMENTS (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended
	Dec. 31, 2019	Jul. 23, 2018	Oct. 19, 2017	Dec. 31, 2019	Oct. 31, 2015	Nov. 30, 2009
Recognized revenues related to future milestone payment				$ 4.5
Future milestone payment	$ 10.0			10.0
Pfizer [Member]
Collaborative Arrangement Profit Share Percentage						40.00%
Debt Instrument, Face Amount					$ 4.3
Chiesi US Agreement [Member]
Upfront Nonrefundable Non-Creditable Payment Receivable		$ 25.0	$ 25.0
Additional Amounts Payable To Cover Development Costs		20.0
Maximum Entitlement Of Development Costs To Cover Per Year		7.5
Additional Amount Payable For Achievement Of Regulatory And Commercial Milestones		$ 760.0
Chiesi US Agreement [Member] \| Maximum [Member]
Payment On Net Sales Percentage		40.00%
Chiesi US Agreement [Member] \| Minimum [Member]
Payment On Net Sales Percentage		15.00%
Chiesi Ex US Agreement [Member]
Upfront Nonrefundable Non-Creditable Payment Receivable			25.0
Additional Amounts Payable To Cover Development Costs			25.0
Maximum Entitlement Of Development Costs To Cover Per Year			10.0
Additional Amount Payable For Achievement Of Regulatory And Commercial Milestones			$ 320.0
Chiesi Ex US Agreement [Member] \| Maximum [Member]
Payment On Net Sales Percentage			35.00%
Chiesi Ex US Agreement [Member] \| Minimum [Member]
Payment On Net Sales Percentage			15.00%
Chiesi US Agreement and Chiesi Ex US Agreement [Member]
Upfront Nonrefundable Non-Creditable Payment Receivable	50.0			$ 50.0
Payments in consideration for development services performed	40.1
Payments in connection with performance of additional studies	$ 9.1

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 35,977	$ 35,506
Less - accumulated depreciation and amortization	(30,704)	(29,116)
Property, Plant and Equipment, Net, Total	5,273	6,390
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	16,849	16,732
Furniture And Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,636	2,565
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 16,492	16,191
Equipment Under Construction [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 18

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
PROPERTY AND EQUIPMENT
Depreciation	$ 1,617	$ 1,671	$ 1,920

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
INVENTORIES
Raw materials	$ 3,607	$ 3,792
Work in progress	552
Finished goods	3,996	4,777
Total inventory	$ 8,155	$ 8,569

INVENTORIES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
INVENTORIES
Inventory Write-down	$ 0.5	$ 1.1

LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee severance obligation payments	$ 143,000	$ 145,000	$ 166,000
Contributions	642,000	620,000	746,000
Severance expense	784,000	781,000	906,000
Net gain (loss) for the period	58,000	$ 46,000	$ 21,000
Benefits Payable During Next Five Years	246,000
Contribution to Insurance Companies [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	866,000
Contribution to Defined Contribution Plans [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ 722,000

COMMITMENTS (Details) - USD ($)	12 Months Ended
COMMITMENTS (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments And Contingencies [Line Items]
Subcontracting commitment amount	$ 9,800,000
OCS [Member]
Commitments And Contingencies [Line Items]
Royalty expense included in cost of revenue	$ 1,390,000	$ 1,619,000	$ 1,384,000
Minimum [Member] \| OCS [Member]
Commitments And Contingencies [Line Items]
Royalties based on sale of products developed from funded projects, percentage	3.00%
Maximum [Member] \| OCS [Member]
Commitments And Contingencies [Line Items]
Royalties based on sale of products developed from funded projects, percentage	6.00%
Accrued royalties	$ 40,800,000	$ 41,900,000
Percentage of Royalties to Grant Received	100.00%	100.00%	100.00%
Maximum [Member] \| Products Manufactured Outside Of Israel [Member]
Commitments And Contingencies [Line Items]
Percentage of Royalties to Grant Received	300.00%	300.00%	300.00%

OPERATING LEASES - Lease, Cost (Details) $ in Thousands	12 Months Ended
OPERATING LEASES - Lease, Cost (Details) $ in Thousands	Dec. 31, 2019 USD ($)
OPERATING LEASES
Operating lease costs	$ 1,219
Cash paid for amounts included in the measurement of lease liabilities	$ 1,329
Weighted average remaining lease term (in years)	10 years 6 months 3 days
Weighted average discount rate	12.70%

OPERATING LEASES - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
OPERATING LEASES
2020	$ 1,139
2021	956
2022	845
2023	806
After 2024	6,683
Total undiscounted cash flows	10,429
Less: imputed interest	4,762
Present value of operating lease liabilities	$ 5,667	$ 5,700

OPERATING LEASES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of Leases Operating [Line Items]
Lessee, Operating Lease, Liability, Payments, Due Year Two	$ 956,000
Lessee, Operating Lease, Liability, Payments, Due Year Three	$ 845,000
Minimum [Member]
Disclosure of Leases Operating [Line Items]
Percentage of Change in Operating Lease Monthly Rental Payments	7.50%
Maximum [Member]
Disclosure of Leases Operating [Line Items]
Percentage of Change in Operating Lease Monthly Rental Payments	10.00%
Vehicle Lease [Member]
Disclosure of Leases Operating [Line Items]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 474,000
Lessee, Operating Lease, Liability, Payments, Due Year Two	333,000
Lessee, Operating Lease, Liability, Payments, Due Year Three	82,000
Lease Agreements [Member]
Disclosure of Leases Operating [Line Items]
Operating Leases, Future Minimum Payments Due, Next Twelve Months		$ 758,000
Lessee, Operating Lease, Liability, Payments, Due Year Two		758,000
Lessee, Operating Lease, Liability, Payments, Due Year Three		$ 621,000
Security Deposit	$ 439,000

REVENUES - Company's disaggregation of revenues (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues									$ 54,693	$ 34,240	$ 21,078
Recognized revenues related to future milestone payment	$ 4,500
Future milestone payment	10,000								10,000
Pfizer [Member]
Revenues									6,722	5,320	12,181
Brazil [Member]
Revenues									9,144	3,658	7,061
Goods [Member]
Revenues	3,780	$ 5,126	$ 3,430	$ 3,530	$ 1,756	$ 663	$ 2,006	$ 4,553	15,866	8,978	19,242
License and R&D Services [Member]
Revenues	$ 13,979	$ 9,122	$ 8,817	$ 6,909	$ 8,597	$ 11,672	$ 2,832	$ 2,161	$ 38,827	$ 25,262	$ 1,836

SHARE CAPITAL - Summary of Options Granted to Employees (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted \| shares	160,000
Exercise price \| $ / shares	$ 4.69
Vesting period	4 years
Fair value at grant \| $	$ 449
Expiration period	10 years
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted \| shares	80,000
Exercise price \| $ / shares	$ 2.00
Vesting period	4 years
Fair value at grant \| $	$ 97
Expiration period	10 years

SHARE CAPITAL - Options Granted to Employees (Details) - Options And Restricted Stock Granted To Employees [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of options
Outstanding at beginning of year	1,000,068	472,962	488,421
Granted	240,000	636,000
Forfeited and Expired	199,871	108,894	15,459
Outstanding at end of year	1,040,197	1,000,068	472,962
Exercisable at end of year	532,322	394,486	445,746
Weighted average exercise price
Outstanding at beginning of year	$ 15.47	$ 36.04	$ 36.17
Granted	3.79	5.41
Forfeited and Expired	14.14	46.04	40.04
Outstanding at end of year	13.03	15.47	36.04
Exercisable at end of year	$ 21.04	$ 30.65	$ 36.96

SHARE CAPITAL - Options and Restricted Stocks Granted to Consultants, Directors and Other Service Providers (Details) - Options and Restricted Stocks Granted To Consultants Directors And Other Service Providers [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of options/ restricted stock
Outstanding at beginning of year	15,000	20,000	20,800
Expired	0	5,000	800
Outstanding at end of year	15,000	15,000	20,000
Exercisable at end of year	15,000	15,000	20,000
Weighted average exercise price
Outstanding at beginning of year	$ 33.70	$ 32.82	$ 31.56
Expired	0.00	30.20	0.001
Outstanding at end of year	33.70	33.70	32.82
Exercisable at end of year	$ 33.70	$ 33.70	$ 32.82

SHARE CAPITAL - Summary of Outstanding and Restricted Stocks (Details) - Options and Restricted Stock [Member]	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of options and restricted stock outstanding at end of year	1,055,197
Number of options exercisable	547,322
2.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 2.00
Number of options and restricted stock outstanding at end of year	80,000
Weighted average remaining contractual life	9 years 8 months 23 days
Number of options exercisable	5,000
Weighted average remaining contractual life	9 years 8 months 23 days
4.69 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 4.69
Number of options and restricted stock outstanding at end of year	160,000
Weighted average remaining contractual life	9 years 6 months
Number of options exercisable	20,000
Weighted average remaining contractual life	9 years 6 months
5.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 5.10
Number of options and restricted stock outstanding at end of year	228,062
Weighted average remaining contractual life	8 years 7 months 24 days
Number of options exercisable	72,687
Weighted average remaining contractual life	8 years 6 months 15 days
5.60 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 5.60
Number of options and restricted stock outstanding at end of year	258,126
Weighted average remaining contractual life	7 years 1 month 2 days
Number of options exercisable	120,626
Weighted average remaining contractual life	5 years 2 months 27 days
17.20 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 17.20
Number of options and restricted stock outstanding at end of year	149,209
Weighted average remaining contractual life	4 years 4 months 21 days
Number of options exercisable	149,209
Weighted average remaining contractual life	4 years 4 months 21 days
23.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 23.70
Number of options and restricted stock outstanding at end of year	90,000
Weighted average remaining contractual life	1 year 10 months 2 days
Number of options exercisable	90,000
Weighted average remaining contractual life	1 year 10 months 2 days
33.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 33.70
Number of options and restricted stock outstanding at end of year	15,000
Weighted average remaining contractual life	7 months 13 days
Number of options exercisable	15,000
Weighted average remaining contractual life	7 months 13 days
69.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 69.00
Number of options and restricted stock outstanding at end of year	68,000
Weighted average remaining contractual life	1 month 24 days
Number of options exercisable	68,000
Weighted average remaining contractual life	1 month 24 days
96.60 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price \| $ / shares	$ 96.60
Number of options and restricted stock outstanding at end of year	6,800
Weighted average remaining contractual life	9 months 29 days
Number of options exercisable	6,800
Weighted average remaining contractual life	9 months 29 days

SHARE CAPITAL - Share Based Compensation Expense Allocation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 835	$ 514	$ 337
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	513	310	182
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 322	$ 204	$ 155

SHARE CAPITAL - Additional information (Details)				1 Months Ended				12 Months Ended
SHARE CAPITAL - Additional information (Details)	Dec. 09, 2019	Sep. 13, 2018 USD ($) $ / shares shares	Dec. 07, 2016 shares	Sep. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) $ / shares shares	May 22, 2018 USD ($) shares	Jul. 24, 2017 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)	Dec. 02, 2016 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split ratio	0.1
Shares of Common Stock remain available for grant under the plan								690,182
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized \| $								$ 800,000
Debt Conversion, Converted Instrument, Amount \| $								$ 0	$ 2,285,000	$ 16,263,000
Debt Conversion, Converted Instrument, Shares Issued			2,384,673						1,123,964
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition								1 year 26 days
4.5% Convertible Notes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt Conversion, Converted Instrument, Amount \| $						$ 2,230,000
Debt Conversion, Converted Instrument, Shares Issued						261,363
Principal amount \| $						$ 3,423,000	$ 9,000,000
Debt Instrument Maturity Year							2018
2021 Notes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Principal amount \| $							$ 10,000,000				$ 22,500,000
Debt Instrument Maturity Year							2021
Four Point Five Percentage Convertible Notes 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Principal amount \| $							$ 8,550,000
Debt Instrument Maturity Year							2022
2006 Employee Stock Incentive Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								2,384,165
Officers And Certain Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		236,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares		$ 5.1
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Grant Date Fair Value \| $								$ 449,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		400,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares								$ 4.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross								160,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								4 years
Non-executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares		$ 5.1
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years		10 years	10 years
Share Based Compensation Arrangement By Share Based Payment Award Grant Date Fair Value \| $		$ 1,900,000		$ 97,000	$ 449,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		64.30%		66.48%	65.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.90%		1.695%	1.80%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		636,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				4 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		6 years		6 years	6 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%		0.00%	0.00%
Employee Stock Option [Member] \| Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares		$ 5.6
Employee Stock Option [Member] \| Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares					$ 4.69
Employee Stock Option [Member] \| Chief Executive Officer [Member] \| 2006 Employee Stock Incentive Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares					$ 4.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					160,000
Employee Stock Option [Member] \| Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares				$ 2.00
Employee Stock Option [Member] \| Chief Financial Officer [Member] \| 2006 Employee Stock Incentive Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares				$ 2.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				80,000
Restricted Stock Units [Member] \| Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of Restricted Stock Units that will be granted, contingent upon certain conditions \| $				$ 100,000

CONVERTIBLE NOTES (Schedule of Interest Expense Recognized) (Details) - 2018 Notes [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Contractual interest expense	$ 139	$ 501
Amortization of debt issuance costs and debt discount	15	71
Gain from early redemption	(32)
Total	$ 122	$ 572

CONVERTIBLE NOTES (Fair Value Income Approach) (Details) - 2021 Notes [Member] - Fair Value, Inputs, Level 3 [Member]	12 Months Ended
	Dec. 31, 2019
Expected term	1 year 10 months 17 days
Risk free rate	1.57%
Volatility	90.74%
Yield	11.02%

CONVERTIBLE NOTES (Schedule Of Debt Interest Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loss on extinguishment	$ 0	$ 0	$ 1,325
Change in fair value of convertible note embedded derivative	0	0	(38,061)
Notes 2021 [Member]
Contractual interest expense	4,344	4,359	4,434
Debt discount amortization	2,991	2,587	2,309
Change in fair value of convertible note embedded derivative			38,061
Interest payment in connection with conversions		234	3,918
Loss (income) in connection with conversions		245	(1,643)
Total	$ 7,335	$ 7,425	47,079
Notes 2022 [Member]
Contractual interest expense			55
Debt discount amortization			(46)
Loss on extinguishment			1,325
Total			$ 1,334

CONVERTIBLE NOTES - Additional information (Details) - USD ($)		1 Months Ended		12 Months Ended
	Dec. 07, 2016	Jun. 30, 2018	Jul. 24, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 02, 2016	Sep. 18, 2013
Net proceeds from issuance of convertible notes			$ 9,500,000			$ 9,542,000
Debt Conversion, Converted Instrument, Shares Issued	2,384,673				1,123,964
Repayments of Convertible Debt				$ 0	$ 4,752,000	10,961,000
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net				$ 0	$ 0	$ (38,061,000)
Convertible Notes Payable [Member]
Principal amount								$ 69,000,000
2021 Notes [Member]
Principal amount			$ 10,000,000				$ 22,500,000
Number of shares for basis conversion						117.64706
Interest rate				7.50%			7.50%
Conversion price per share				$ 8.50
Base value for conversion rate				$ 1,000
Minimum Cash Balance required to be maintained				7,500,000
Maximum Debt Instrument Convertible Conversion Share Number						178.7310
Debt Instrument Maturity Year			2021
4.5% Convertible Notes [Member]
Principal amount		$ 3,423,000	$ 9,000,000			$ 54,100,000
Debt Conversion Converted Instrument Amount, Cash		$ 2,230,000
Debt Conversion, Converted Instrument, Shares Issued		261,363
Repayments of Convertible Debt		$ 2,530,000
Convertible Notes Due Two Thousand Twenty One [Member]
Principal amount	$ 40,186,000
Convertible Notes 2013 [Member]
Interest rate								4.50%
2021 Notes [Member]
Debt Instrument, Redemption, Description					Prior to the maturity date, the Company may redeem in cash:any or all of the 2021 Notes if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days exceeds 150% of the conversion price on each applicable trading day, orall of the 2021 Notes then outstanding if the aggregate principal amount of the 2021 Notes then outstanding is less than 15% of the aggregate principal amount of the notes issued.
Debt Conversion, Converted Instrument, Shares Issued					153,742
Repayments of Convertible Debt					$ 15,887
Long-term Debt, Gross				$ 57,900,000
Debt Conversion, Original Debt, Amount					$ 1,150,000
Four Point Five Percentage Convertible Notes 2022 [Member]
Principal amount			$ 8,550,000
Maturity						Nov. 15, 2021
Interest rate			4.50%
Repayments of Convertible Debt			$ 275,000
Debt Instrument Maturity Year			2022
Four Point Five Percentage Convertible Notes 2018 [Member]
Principal amount			$ 9,000,000

FAIR VALUE MEASUREMENT - The liability component was valued based on the Income Approach (Details) - 2021 Notes [Member] - Fair Value, Inputs, Level 3 [Member]	12 Months Ended
	Dec. 31, 2019 $ / shares
Stock price (USD)	$ 3.28
Expected term	1 year 10 months 17 days
Risk free rate	1.57%
Volatility	90.74%
Yield	11.02%

FAIR VALUE MEASUREMENT - Additional Information (Details) - Fair Value, Inputs, Level 3 [Member] - Seven Point Five Percentage Convertible Notes [Member] $ in Millions	Dec. 31, 2019 USD ($)
Convertible Debt, Fair Value Disclosures	$ 60.9
Long-term Debt, Gross	$ 57.9

TAXES ON INCOME (Deferred Income Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
In respect of:
Research and development expenses	$ 9,247	$ 6,188
Other timing differences	25	(11)
Net operating loss carry forwards	50,236	49,436
Valuation allowance	(59,508)	(55,613)
Deferred Tax Assets, Net of Valuation Allowance, Total	$ 0	$ 0

TAXES ON INCOME (Open Tax Years) (Details)	12 Months Ended
TAXES ON INCOME (Open Tax Years) (Details)	Dec. 31, 2019
ISRAEL [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open tax year	2015
ISRAEL [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open tax year	2019
UNITED STATES \| Minimum [Member]
Income Tax Contingency [Line Items]
Open tax year	2015
UNITED STATES \| Maximum [Member]
Income Tax Contingency [Line Items]
Open tax year	2019

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Line Items]
Statutory income tax rate	21.00%	35.00%
Net operating loss carry forwards	$ 213.1
Effective Income Tax Rate Reconciliation, Limitation of Net Operating Lost Deduction	80.00%
Effective Income Tax Rate Reconciliation, The Maximum Percentage of Interest	30.00%
Restricted Amount [Member]
Income Tax Disclosure [Line Items]
Net operating loss carry forwards	$ 29.0	$ 26.0
Protalix Ltd. [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate	23.00%
Net operating loss carry forwards	$ 184.1	$ 185.0
Protalix Ltd. [Member] \| Scenario, Plan [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate	23.00%
Protalix Ltd. [Member] \| Law for Amending the Israel Income Tax Ordinance, Tax Thereafter [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate		23.00%	24.00%
Minimum [Member] \| Protalix Ltd. [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate		23.00%
Maximum [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate	27.00%
Maximum [Member] \| Protalix Ltd. [Member]
Income Tax Disclosure [Line Items]
Statutory income tax rate			25.00%

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Other Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other assets:
Institutions	$ 604	$ 574
State of Israel (see note 6a)	26	190
Restricted deposit	820	561
Prepaid expenses	314	453
Sundry	68	99
Other assets	$ 1,832	$ 1,877

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Accounts Payable and Accruals, Other) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts payable and accruals - other:
Payroll and related expenses	$ 1,381	$ 1,099
Interest payable	555	555
Provision for vacation	1,754	1,658
Accrued expenses	7,360	6,368
Royalties payable	757	369
Property and equipment suppliers	98	225
Accounts Payable, Current	$ 11,905	$ 10,274

RELATED PARTY TRANSACTIONS (Compensation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Compensation To The Non -executiveDirectors [Member]
Related Party Transaction [Line Items]
Compensation (including share based compensation) to the non-executive directors	$ 444	$ 467	$ 499

SELECTED QUARTERLY FINANCIAL DATA (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues									$ 54,693	$ 34,240	$ 21,078
Operating (loss) profit	$ 2,200	$ (1,544)	$ (5,839)	$ (5,534)	$ (3,672)	$ (3,741)	$ (6,744)	$ (5,151)	(10,717)	(19,308)	(34,517)
Net (loss) profit for the period	$ 291	$ (3,560)	$ (7,743)	$ (7,264)	$ (5,434)	$ (5,322)	$ (8,462)	$ (7,239)	$ (18,276)	$ (26,457)	$ (83,440)
Net basic and diluted income (loss) per share of common stock	$ 0.02	$ (0.2)	$ (0.5)	$ (0.5)	$ (0.4)	$ (0.4)	$ (0.6)	$ (0.5)	$ (1.23)	$ (1.80)	$ (6.37)
Goods [Member]
Revenues	$ 3,780	$ 5,126	$ 3,430	$ 3,530	$ 1,756	$ 663	$ 2,006	$ 4,553	$ 15,866	$ 8,978	$ 19,242
License and R&D Services [Member]
Revenues	$ 13,979	$ 9,122	$ 8,817	$ 6,909	$ 8,597	$ 11,672	$ 2,832	$ 2,161	$ 38,827	$ 25,262	$ 1,836

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Mar. 12, 2020 USD ($) $ / shares shares
Subsequent Event [Line Items]
Proceeds from Issuance of Private Placement \| $	$ 43.7
Common Stock [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares	1
Private Placement [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 2.36
Private Placement [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues \| shares	17,600,000
Shares Issued, Price Per Share \| $ / shares	$ 2.485