| SUBSEQUENT EVENTS |
NOTE 7 – SUBSEQUENT EVENTS
| | A. | On July 28, 2021, the Company entered into a Securities Purchase Agreement with institutional investors, all of the Company’s directors and certain executive officers for the sale of an aggregate of 3,750,000 shares of the Company’s common stock and warrants to purchase an aggregate of 2,812,501 shares of the Company’s Common Stock in a registered direct offering, for gross proceeds of $15,000 before deducting placement agent fees and offering expenses and assuming that none of the warrants are exercised. The securities were sold at price of $4.00 per share and an accompanying warrant to purchase 0.75 of a share of the Company’s Common Stock at an exercise price of $5.00 per share. The warrants will be exercisable six months after the date of issuance and will expire five years from the date such warrant first becomes exercisable. The securities were offered pursuant to an effective registration statement on Form S-3 (File No. 333-251151) and a related prospectus supplement. The proceeds were received. |
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| | B. | On August 16, 2021, the Company entered into a loan and security agreement with Hercules Capital, Inc. (“Hercules”), with respect to a venture debt facility (“Loan”) in an aggregate principal amount of up to $30,000, which is available to the Company in three tranches subject to certain terms and conditions. The first tranche of $15,000 would be funded promptly after closing of the Loan transaction (“Closing”). Upon satisfaction of certain milestones, the second tranche would be available under the Loan which allows the Company to borrow an additional amount of $10,000 through December 31, 2022. Upon satisfaction of certain milestones, the third tranche would be available under the Loan which allows the Company to borrow an additional amount of $5,000 through September 30, 2023. The Loan will be for a term of 48 months from the Closing, which term may be extended to up to 60 months upon satisfaction of certain milestones. The interest rate on the Loan will be the greater of (i) the Prime Rate minus 3.25% and (ii) 8.95%. During the first 18 months from the Closing, the Company is expected to pay only interest and not principle, which 18 months term may be extended to up to 30 months upon satisfaction of certain milestones. The Loan includes affirmative and negative covenants and events of default applicable to the Company. |
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| | C. | In August 2021, the IIA approved an application for an aggregate budget of NIS 5,737 (approximately $1,778). The IIA committed to fund 50% of the approved budget, i.e., NIS 2,869 (approximately $889). The program is for the period beginning July 2021 through June 2022. The program does not bear royalties. |
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