0001593984
2018-01-01
2018-06-30
0001593984
2018-06-30
0001593984
2017-12-31
0001593984
2018-04-01
2018-06-30
0001593984
ifrs-full:IssuedCapitalMember
2017-12-31
0001593984
ifrs-full:SharePremiumMember
2017-12-31
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2017-12-31
0001593984
ifrs-full:RetainedEarningsMember
2017-12-31
0001593984
ifrs-full:IssuedCapitalMember
2018-01-01
2018-06-30
0001593984
ifrs-full:IssuedCapitalMember
2018-06-30
0001593984
ifrs-full:SharePremiumMember
2018-01-01
2018-06-30
0001593984
ifrs-full:SharePremiumMember
2018-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-01-01
2018-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-06-30
0001593984
ifrs-full:RetainedEarningsMember
2018-01-01
2018-06-30
0001593984
ifrs-full:RetainedEarningsMember
2018-06-30
0001593984
ifrs-full:IssuedCapitalMember
2018-04-01
2018-06-30
0001593984
ifrs-full:IssuedCapitalMember
2018-03-31
0001593984
ifrs-full:SharePremiumMember
2018-04-01
2018-06-30
0001593984
ifrs-full:SharePremiumMember
2018-03-31
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-04-01
2018-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-03-31
0001593984
ifrs-full:RetainedEarningsMember
2018-04-01
2018-06-30
0001593984
ifrs-full:RetainedEarningsMember
2018-03-31
0001593984
2018-03-31
0001593984
2019-06-30
0001593984
2018-12-31
0001593984
2019-01-01
2019-06-30
0001593984
2019-04-01
2019-06-30
0001593984
2018-01-01
2018-12-31
0001593984
2019-03-31
0001593984
ifrs-full:IssuedCapitalMember
2019-01-01
2019-06-30
0001593984
ifrs-full:IssuedCapitalMember
2019-04-01
2019-06-30
0001593984
ifrs-full:IssuedCapitalMember
2018-01-01
2018-12-31
0001593984
ifrs-full:IssuedCapitalMember
2018-12-31
0001593984
ifrs-full:IssuedCapitalMember
2019-06-30
0001593984
ifrs-full:IssuedCapitalMember
2019-03-31
0001593984
ifrs-full:SharePremiumMember
2019-01-01
2019-06-30
0001593984
ifrs-full:SharePremiumMember
2019-04-01
2019-06-30
0001593984
ifrs-full:SharePremiumMember
2018-01-01
2018-12-31
0001593984
ifrs-full:SharePremiumMember
2018-12-31
0001593984
ifrs-full:SharePremiumMember
2019-06-30
0001593984
ifrs-full:SharePremiumMember
2019-03-31
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2019-01-01
2019-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2019-04-01
2019-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-01-01
2018-12-31
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2018-12-31
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2019-06-30
0001593984
ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember
2019-03-31
0001593984
ifrs-full:RetainedEarningsMember
2019-01-01
2019-06-30
0001593984
ifrs-full:RetainedEarningsMember
2019-04-01
2019-06-30
0001593984
ifrs-full:RetainedEarningsMember
2018-01-01
2018-12-31
0001593984
ifrs-full:RetainedEarningsMember
2018-12-31
0001593984
ifrs-full:RetainedEarningsMember
2019-06-30
0001593984
ifrs-full:RetainedEarningsMember
2019-03-31
0001593984
mdwd:PolyHealLtdMember
2019-01-01
2019-06-30
0001593984
mdwd:NexoBridMember
2018-09-01
2018-09-28
0001593984
srt:MinimumMember
2019-01-01
2019-06-30
0001593984
srt:MaximumMember
2019-01-01
2019-06-30
0001593984
mdwd:TevaMember
2019-06-30
0001593984
mdwd:NexoBridMember
2018-12-25
2019-01-02
0001593984
mdwd:TevaMember
2018-01-01
2018-12-31
0001593984
mdwd:TevaMember
2014-09-15
0001593984
mdwd:TevaMember
2019-01-01
2019-06-30
0001593984
mdwd:ChiefExecutiveOfficersMember
2019-03-01
2019-03-24
0001593984
mdwd:ChiefExecutiveOfficersMember
2019-03-24
0001593984
mdwd:RestrictedSharesUnitsMember
2019-03-01
2019-03-24
0001593984
mdwd:EquityIncentivePlanMember
mdwd:RestrictedSharesUnitsMember
2019-03-01
2019-03-24
0001593984
mdwd:StockOptionsMember
2019-03-01
2019-03-24
0001593984
mdwd:VericelMember
2019-05-01
2019-05-06
0001593984
mdwd:NexoBridMember
2019-05-01
2019-05-31
0001593984
mdwd:BiomedicalAdvancedResearchAndDevelopmentAuthorityMember
2019-05-01
2019-05-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
iso4217:ILS
xbrli:shares
MediWound Ltd.
0001593984
2019-06-30
false
--12-31
Q2
2019
1030000
9620000
75000
138992000
-38000
-129409000
75000
139359000
-30000
-138374000
75000
139210000
-48000
-134209000
5028000
18179000
8972000
5141000
75000
75000
75000
139637000
140236000
139912000
-25000
-23000
-21000
-130715000
-122109000
-134825000
0.01
0.01
0.01
37244508
37244508
37244508
27178839
27178839
27178839
27178839
27178839
27178839
1551000
1031000
21207000
20746000
3401000
10200000
50000
4608000
4608000
-8716000
-4165000
-8716000
-4165000
8606000
12716000
-1057000
8606000
12716000
-1057000
-8708000
-4147000
8000
-8716000
18000
-4165000
8608000
12714000
-1044000
2000
-2000
13000
8606000
12716000
-1057000
8000
18000
8000
18000
2000
-2000
13000
2000
-2000
13000
367000
149000
367000
149000
599000
324000
645000
599000
324000
645000
<div style="font: 10pt Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000"><tr style="font: 10pt Times New Roman, Times, Serif"><td style="width: 63pt; vertical-align: top; font: bold 10pt Times New Roman, Times, Serif; text-align: justify">NOTE 2:</td>
<td style="width: auto; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: bold 10pt Times New Roman, Times, Serif">SIGNIFICANT ACCOUNTING POLICIES</div>
</td>
</tr>
</table>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 63pt">The following accounting policies have been applied consistently in the financial statements for all periods presented unless otherwise stated.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 61pt; font: 10pt Times New Roman, Times, Serif"><br />
</td>
<td style="width: 38pt; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">a.</td>
<td style="width: auto; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">Basis of presentation of financial statements:</div>
</td>
</tr>
</table>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board
("IASB").</div></div>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 61pt; font: 10pt Times New Roman, Times, Serif"><br />
</td>
<td style="width: 38pt; vertical-align: top; font: 10pt Times New Roman, Times, Serif">b.</td>
<td style="width: auto; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">Basis of preparation of the interim consolidated financial statements:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">The interim condensed consolidated financial statements for the six months ended June 30, 2019 have been prepared in accordance with IAS 34 "Interim Financial Reporting".</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in
conjunction with the Company's annual financial statements as of December 31, 2018 that were included in the Annual Report on Form 20-F filed on March 25, 2019.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the
Company’s annual consolidated financial statements for the year ended December 31, 2018 that were included in the Annual Report on Form 20-F filed on March 25, 2019, except than the changes discussed below.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 61pt; font: 10pt Times New Roman, Times, Serif"><br />
</td>
<td style="width: 38pt; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">c.</td>
<td style="width: auto; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">Changes in significant accounting policies:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">IFRS 16, "Leases" ("the new Standard") replaces IAS 17, Leases and its related interpretations. The standard's instructions supersede IAS 17 requirement from lessees to
classify leases as operating or finance leases. The new standard presents a unified model for the accounting treatment of all leases according to which the lessee has to recognize a right-of-use asset and a lease liability in its financial
statements.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt; text-align: justify"> </div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">On the inception date of the lease, the Company determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of
an identified asset for a period of time in exchange for consideration. </div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">In the event of change in variable lease payments that are CPI-linked, lessees are required to re-measure the lease liability and record the effect of the re-measurement as an
adjustment to the carrying amount of the right-of-use asset.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will exercise
or not exercise the option, respectively.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">The right-of-use asset is subsequently depreciated in a similar way to other assets such as tangible assets, i.e. typically in a straight-line basis over the shorter of the
lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the lease.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt; text-align: justify"> </div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">Commencing January 1, 2019, the Company implements the Modified retrospective approach of the Standard. As for the measurement of the right-of-use asset, the Company chose to
apply the alternative of recognize the asset in an amount equal to the lease liability, with certain adjustments.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">At the initial application
date, the Company recognized a lease liability in the amount of about $2,522 under Long term debt and current maturity,
according to the present value of the future lease payments discounted using the Company's incremental interest
rate at that date, and concurrently recognized a right-of-use asset in the same amount with certain adjustments. The
Company's incremental interest rates used for measuring the lease liability are in the range of 0.1% to 6.7%.
Depreciation is calculated on a straight-line basis over the remaining contractual lease period.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<br />
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">In the first six months of 2019, the Company recognized depreciation expenses in the amount of $280 in respect of amortization of the right-of-use asset and $68 finance
expenses in respect of the lease liability, in place of the lease expenses in the amount of $312 which would have been recorded according to the previous standard.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 61pt; font: 10pt Times New Roman, Times, Serif"><br />
</td>
<td style="width: 38pt; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">d.</td>
<td style="width: auto; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">Reclassification:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt">Certain amounts previously reported in the consolidated financial statements have been reclassified to conform to current year presentation. Such reclassifications did not
affect net loss, shareholders’ equity or cash flows.</div>
6-K
-249000
-249000
-249000
-249000
0.08
7537000
7537000
<div style="font: 10pt Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif"><font style="font-weight: bold">NOTE 4:</font>          <font style="font-weight: bold">EQUITY</font></div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 63pt">On March 24, 2019, the Company granted to its incoming CEO and chairman of the board 60,000 options to purchase ordinary shares, for an exercise price of $ 4.92 per share, and
40,000 RSU's, under the "2014 Share Incentive Plan". The options are exercisable in accordance with the terms of the plan and will vest over three-four years. The fair value of the options and RSU's granted, as of the grant date, was estimated at
approximately $164 and $156, respectively.</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 63pt"> <br />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 63pt">On May 2, 2019, the general meeting of the Company approved the abovementioned grants.</div></div></div></div>
0.001
0.067
280000
68000
60000
40000
156
164
three-four years
30047000
20838000
21407000
336000
338000
348000
2522000
6003000
6003000
6003000
14737000
4412000
6330000
7793000
6919000
7568000
1178000
1144000
1158000
5666000
10858000
4897000
1825000
5889000
2036000
3327000
4073000
2715000
514000
896000
146000
36743000
49875000
35276000
2644000
4979000
2563000
528000
462000
495000
2315000
2051000
2183000
2020000
65000
19000
48000
34099000
44896000
32713000
4445000
4079000
6840000
1871000
1535000
1680000
779000
570000
560000
21254000
13870000
16828000
91000
175000
89000
75000
75000
75000
139359000
140236000
139637000
-30000
-23000
-25000
-138374000
-122109000
-130715000
36743000
49875000
35276000
27050
27052
27179
27179
27114
-0.32
-0.15
0.32
0.47
-0.04
0.17
-0.32
-0.15
0.32
0.47
-0.21
-8000
-18000
-2000
2000
-13000
-8716000
-4165000
8556000
12716000
-5665000
1898000
994000
1956000
1314000
2117000
182000
115000
153000
92000
412000
-7000000
-3286000
10359000
13938000
-3960000
7541000
3688000
7060000
3327000
5273000
1831000
842000
2574000
1242000
3799000
2319000
1248000
2134000
1101000
4188000
2729000
1536000
1451000
172000
4072000
-6298000
-3451000
-4624000
-1721000
-13843000
9027000
4987000
6075000
1893000
17915000
541000
402000
17419000
17265000
1313000
1010000
629000
3788000
3481000
2088000
312000
157000
-21489000
1472000
2588000
232000
-17040000
-21165000
1680000
2977000
412000
-16612000
2000
2000
44000
14000
106000
13000
13000
12000
313000
197000
433000
194000
522000
-8818000
-5687000
15419000
17265000
-12154000
50000
-8818000
-5687000
15369000
17265000
-12154000
-2240000
-2593000
4767000
3255000
-1008000
-336000
-507000
529000
77000
-161000
74000
-51000
1357000
1076000
-536000
-1572000
-1690000
2744000
2482000
-306000
15000
149000
146000
-62000
206000
-421000
-494000
-9000
-318000
-211000
2138000
1071000
1996000
1294000
-10089000
-126000
-85000
70000
-60000
-182000
182000
115000
149000
87000
412000
6000
-5000
-10000
13000
19000
-194000
-91000
-7537000
1112000
569000
1322000
1081000
758000
-404000
-218000
392000
466000
-287000
367000
149000
599000
324000
645000
305000
170000
552000
278000
577000
-30410000
-4332000
17901000
17533000
-29353000
50000
5659000
36069000
9991000
24667000
6716000
7134000
30000
193000
248000
46000
30000
-119000
91000
46000
-133000
-117000
63000
-55000
-205000
1466000
988000
1309000
895000
3225000
85000
43000
17597000
17550000
176000
662000
62000
901000
812000
751000
4000000
1475000
10200000
17500000
7500000
125000000
12000000
77000000
16475000
31000000
10000000
21000000
50000000
34255000
9371000
75000
138992000
-38000
-129658000
17500000
<div><div><div><div style="text-align: justify; line-height: 1.25"><div><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000"><tr>
<td style="width: 28.5pt"> </td><td style="width: 34pt; vertical-align: top; text-align: justify">a.</td>
<td style="vertical-align: top; text-align: justify">
<div>Basis of presentation of financial statements:</div>
</td>
</tr>
</table>
</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board
("IASB").</div></div></div></div>
<div style="line-height: 1.25"><div style="text-align: justify; line-height: 1.25"><div><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000"><tr>
<td style="width: 28.5pt"> </td><td style="width: 34pt; vertical-align: top; text-align: justify">d.</td>
<td style="vertical-align: top; text-align: justify">
<div>
<div style="line-height: 1.25">Reclassification:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">Certain amounts previously reported in the consolidated financial statements have been reclassified to conform to current year presentation. Such reclassifications did not
affect net loss, shareholders’ equity or cash flows.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><div style="font: 10pt/1.25 Times New Roman, Times, Serif"><div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 28.5pt"> </td><td style="width: 34pt; vertical-align: top; font: 10pt Times New Roman, Times, Serif">b.</td>
<td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<div style="font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">Basis of preparation of the interim consolidated financial statements:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">The interim condensed consolidated financial statements for the six months ended June 30, 2019 have been prepared in accordance with IAS 34 "Interim Financial Reporting".</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in
conjunction with the Company's annual financial statements as of December 31, 2018 that were included in the Annual Report on Form 20-F filed on March 25, 2019.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the
Company’s annual consolidated financial statements for the year ended December 31, 2018 that were included in the Annual Report on Form 20-F filed on March 25, 2019, except than the changes discussed below.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif"><div style="font: 10pt Times New Roman, Times, Serif"><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; text-align: left; color: #000000"><tr style="font: 10pt Times New Roman, Times, Serif">
<td style="width: 28.5pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 34pt; vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">c.</td>
<td style="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt Times New Roman, Times, Serif">
<div style="font: 10pt/1.25 Times New Roman, Times, Serif">Changes in significant accounting policies:</div>
</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">IFRS 16, "Leases" ("the new Standard") replaces IAS 17, Leases and its related interpretations. The standard's instructions supersede IAS 17 requirement from lessees to
classify leases as operating or finance leases. The new standard presents a unified model for the accounting treatment of all leases according to which the lessee has to recognize a right-of-use asset and a lease liability in its financial
statements.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt; text-align: justify"> </div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">On the inception date of the lease, the Company determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of
an identified asset for a period of time in exchange for consideration. </div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">In the event of change in variable lease payments that are CPI-linked, lessees are required to re-measure the lease liability and record the effect of the re-measurement as an
adjustment to the carrying amount of the right-of-use asset.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will exercise
or not exercise the option, respectively.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">The right-of-use asset is subsequently depreciated in a similar way to other assets such as tangible assets, i.e. typically in a straight-line basis over the shorter of the
lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the lease.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 99pt; text-align: justify"> </div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">Commencing January 1, 2019, the Company implements the Modified retrospective approach of the Standard. As for the measurement of the right-of-use asset, the Company chose to
apply the alternative of recognize the asset in an amount equal to the lease liability, with certain adjustments.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">At the initial application
date, the Company recognized a lease liability in the amount of about $2,522 under Long term debt and current maturity,
according to the present value of the future lease payments discounted using the Company's incremental interest
rate at that date, and concurrently recognized a right-of-use asset in the same amount with certain adjustments. The
Company's incremental interest rates used for measuring the lease liability are in the range of 0.1% to 6.7%.
Depreciation is calculated on a straight-line basis over the remaining contractual lease period.</div>
<div style="font: 10pt/1.25 Times New Roman, Times, Serif"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; font: 10pt/1.25 Times New Roman, Times, Serif; margin-left: 62pt">In the first six months of 2019, the Company recognized depreciation expenses in the amount of $280 in respect of amortization of the right-of-use asset and $68 finance
expenses in respect of the lease liability, in place of the lease expenses in the amount of $312 which would have been recorded according to the previous standard.</div>
312000
5
2022000
<div><div><div><div style="line-height: 1.25"><div><table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 63pt; vertical-align: top; font-weight: bold">NOTE 1:</td>
<td style="width: auto; vertical-align: top">
<div style="font-weight: bold"> GENERAL</div>
</td>
</tr>
</table>
</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="background-color: #FFFFFF; line-height: 1.25">
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 28.35pt"><br />
</td>
<td style="width: 34pt; vertical-align: top; font: 9pt Times New Roman,serif">a.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>General description of the Company and its operations:</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25">
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="margin-left: 63pt; text-align: justify">MediWound Ltd. (the "Company" or "MediWound"), is a fully integrated biopharmaceutical company focused on developing, manufacturing and commercializing novel products to address unmet needs in
the fields of severe burns, chronic and other hard to heal wounds, connective tissue disorders and other indications.</div>
</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25"> <br />
</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25; margin-left: 63pt; text-align: justify">The Company's innovative biopharmaceutical product, NexoBrid, received marketing authorization from the European Medicines Agency ("EMA")
as well as the Israeli, Argentinean, South-Korean, Russian and Peruvian Ministries of Health, for removal of dead or damaged tissue, known as eschar, in adults with deep partial and full thickness thermal burns. The Company sells NexoBrid in
Europe and in Israel through its commercial organizations and in other territories throughout local distributers.</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25"> <br />
</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25">
<div style="background-color: #FFFFFF; line-height: 1.25">
<div style="text-align: justify; line-height: 1.25; font-family: Times New Roman,Times,serif; margin-left: 63pt">On May 6, 2019, the Company entered into exclusive license and supply agreements with Vericel Corporation (“Vericel”) to
commercialize NexoBrid in North America (see also Note 3d).</div>
</div>
</div>
<div style="background-color: rgb(255, 255, 255); line-height: 1.25">
<div style="margin-left: 63pt; text-align: justify"><br />
</div>
</div>
<div style="line-height: 1.25; margin-left: 63pt; text-align: justify">The Company second investigational innovative product, EscharEx, is a topical biological drug being developed for debridement of chronic and other hard-to-heal wounds.</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="line-height: 1.25; margin-left: 63pt; text-align: justify">The Company's securities are listed for trading on NASDAQ since March 2014.</div>
<div style="background-color: #FFFFFF; line-height: 1.25">
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 28.35pt"><br />
</td>
<td style="width: 34pt; vertical-align: top; text-align: justify">b.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>The Company has two wholly owned subsidiaries: MediWound Germany GmbH, acting as Europe (“EU”) marketing authorization holder and EU sales and marketing arm and MediWound UK Limited, an inactive company. In addition, the Company
owns approximately 8% of PolyHeal Ltd., a private life sciences company ("PolyHeal").</div>
</td>
</tr>
</table>
</div>
</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 28.35pt"><br />
</td>
<td style="width: 34pt; vertical-align: top; text-align: justify">c.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>The Company awarded two contracts with the U.S. Biomedical Advanced Research and Development Authority ("BARDA"),  for the advancement of the development and manufacturing, as well as the procurement of NexoBrid, as a medical
countermeasure as part of BARDA preparedness for mass casualty events (see also Note 3c).</div>
</td>
</tr>
</table>
</div></div></div></div></div>
<div><div><div><div style="background-color: #FFFFFF; line-height: 1.25"></div>
<div style="text-align: justify; line-height: 1.25"><font style="font-weight: bold">NOTE </font>3<font style="font-weight: bold">:</font>          <font style="font-weight: bold">CONTINGENT LIABILITIES AND COMMITMENTS</font></div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 61pt"><br />
</td>
<td style="width: 38pt; vertical-align: top">a.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>On September 15, 2014, a Statement of Claim was filed against the Company by some shareholders of Polyheal (the "Plaintiffs"). The Plaintiffs allege that the Company is obligated to pay them a total amount of $1,475 in exchange for
their respective portion of PolyHeal's shares, following the commencement of a feasibility study for the next generation of the PolyHeal Product in November 15, 2012, which constituted a milestone under a buyout option agreement
between the Company, PolyHeal and its shareholders.</div>
</td>
</tr>
</table>
</div>
</div>
<div style="text-align: justify; margin-left: 85.05pt; line-height: 1.25"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">On March 24, 2019, the Company entered into a settlement agreement and mutual general release with the Plaintiffs (the "Polyheal Settlement Agreement"), which settles any and
all debts, obligations or liabilities that the Plaintiffs and MediWound had, has or may have to the other party in connection with the agreements among MediWound, Teva, PolyHeal, the Plaintiffs and other shareholders of PolyHeal.</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">Pursuant to the terms of Polyheal Settlement Agreement, the Plaintiffs repaid to MediWound a portion of the amount that was ruled in their favor under the Tel Aviv District
Court Ruling, and it resulted in the acceptance of the Company’s appeal that was filed on December, 2017, and the cancellation of the 2017 Ruling that was issued by the District Court against MediWound.</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 61pt"><br />
</td>
<td style="width: 38pt; vertical-align: top; text-align: justify">b.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>Beginning in 2007, the Company entered into a number of agreements with Teva Pharmaceutical Industries Limited (“Teva”) related to collaboration in the development, manufacturing and commercialization of solutions for the burn and
chronic wound care markets. In consideration for these agreements, Teva made investments in the Company's ordinary shares and agreed to fund certain research and development expenses and manufacturing costs and perform all marketing
activities for both NexoBrid, under the 2007 Teva Agreement, and the PolyHeal Product, under the 2010 PolyHeal Agreements. As of December 31, 2012, all of these agreements were terminated.</div>
</td>
</tr>
</table>
</div>
</div>
<div style="text-align: justify; margin-left: 85.05pt; line-height: 1.25"> </div>
<div style="text-align: justify; margin-left: 85.05pt; line-height: 1.25"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; font-family: Times New Roman,Times,serif; margin-left: 99pt">On March 24, 2019, the Company entered into a settlement agreement and mutual general release with Teva (the “Teva Settlement
Agreement”), which settles any and all debts, obligations or liabilities that each party or any of its controlled affiliates had or has to the other party or any of its controlled affiliates under, in connection with or arising out of certain
transactions and agreements entered into between Teva and the Company from 2007 to 2012 (collectively, the “Collaboration Agreements”), which have terminated effective as of December 31, 2012 and September 2, 2013, as applicable, and which
related to the Company's product, NexoBrid, and to PolyHeal Ltd. product, PolyHeal.</div>
<div style="text-align: justify; line-height: 1.25"> </div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">During the recent years, the Company has been engaged in discussions with Teva regarding payments the Company believes Teva was obligated to make to the Company pursuant to
these Collaboration Agreements.</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">Pursuant to the terms of the Teva Settlement Agreement, Teva has agreed to pay the Company $4,000 in cash, and to reduce the contingent consideration that is payable to Teva
pursuant to the Company's repurchase of its shares from Teva in 2013, so that the Company will be obligated to pay Teva annual payments at a reduced rate of 15% of its recognized revenues from the sale or license of NexoBrid after January 1,
2019, up to a reduced aggregate amount of $10,200. As a result of Teva Settlement Agreement, a one-time net income from settlement agreement of $7,537 was recorded as other income and a one-time income of $4,608 was recorded within the profit
from discontinued operation in the fourth quarter and the year ending December 31, 2018.</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">In addition, the Company also agreed to indemnify, defend and hold harmless Teva and its directors, officers, agents and employees from and against claims relating to a certain
milestone related to PolyHeal under an agreement associated with the Collaboration Agreements, up to an amount of $10,200, if a notice of such claim has been received by the Company prior to December 31, 2023.</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 61pt"><br />
</td>
<td style="width: 38pt; vertical-align: top; text-align: justify">c.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>On September 30, 2015 BARDA has awarded MediWound a contract, which was modified in July 2017,  for the advancement of the development and manufacturing, as well as the procurement of NexoBrid, as a medical countermeasure as part
of BARDA preparedness for mass casualty events.  In May 2019, BARDA upsized the contract, providing additional funding of $21,000 to support additional activities towards Biologics License Application (BLA) approval, including the new
NexoBrid expended access treatment protocol (NEXT).  The modified contract includes $77,000 of funding to support development activities to complete the U.S. Food and Drug Administration (FDA) approval process for NexoBrid for use in
thermal burn injuries, as well as $16,475 for procurement of NexoBrid, which is contingent upon FDA Emergency Use Authorization (EUA) and/or FDA marketing authorization for NexoBrid. In addition, the contract includes options for
further funding of up to $10,000 for expanding NexoBrid’s indications and of up to $50,000 for additional procurement of NexoBrid.</div>
</td>
</tr>
</table>
</div>
</div>
<div style="text-align: justify; text-indent: -28.35pt; margin-left: 85.05pt; line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">On September 28, 2018, BARDA has awarded MediWound an additional contract to develop NexoBrid for the treatment of Sulfur Mustard injuries.</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">The contract provides $12,000 of funding to support research and development activities up to pivotal studies in animals under the U.S. Food and Drug Administration (FDA)
Animal Rule. The contract also contains options for additional funding of up to $31,000 for additional development activities, animal pivotal studies, and the FDA BLA submission for approval of NexoBrid for the treatment of Sulfur Mustard
injuries.</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">As of June 30, 2019 the Company recorded $ 34,255 in funding from BARDA under the contracts.</div>
<div><br />
</div>
<div style="clear: both; margin-top: 10pt; margin-bottom: 10pt">
</div>
<div style="line-height: 1.25">
<div style="text-align: justify; line-height: 1.25">
<div>
<table class="DSPFListTable" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, serif; width: 100%; text-align: left; color: #000000">
<tr>
<td style="width: 61pt"><br />
</td>
<td style="width: 38pt; vertical-align: top">d.</td>
<td style="width: auto; vertical-align: top; text-align: justify">
<div>
<div style="line-height: 1.25">On May 6, 2019, the Company entered into exclusive license and supply agreements with Vericel to commercialize NexoBrid in North America (the “Collaboration Agreements”).</div>
</div>
</td>
</tr>
</table>
</div>
</div>
<br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">
<div style="line-height: 1.25; font-family: Times New Roman,Times,serif">Pursuant to the Collaboration Agreements, Vericel will obtain the authority over and control of the development, regulatory approval and commercialization of licensed
products in the North America territory. MediWound will be responsible for the development of the product through BLA approval, supported and funded by BARDA, as well as the manufacture and supply of NexoBrid. In addition, MediWound retains the
commercial rights to NexoBrid in non-North American territory.</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">
<div style="line-height: 1.25; font-family: Times New Roman,Times,serif">Under the terms of the license agreement, Vericel has made an upfront payment to MediWound of $17,500 and agreed to make an additional $7,500 payment contingent upon BLA
approval and up to $125,000 in payments contingent upon meeting certain annual sales milestones. Vericel has also agreed to pay MediWound tiered royalties on net sales ranging from high single-digit to low double-digit percentages, a split of
gross profit on committed BARDA procurement orders and a double-digits royalty on any additional future BARDA purchases of NexoBrid. Under the terms of the supply agreement, Vericel will procure NexoBrid from MediWound at a transfer price of
cost plus a fixed margin percentage.</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">According to IFRS 15, the Collaboration Agreements transaction price should be allocated to each distinct performance obligation and recognized as revenue when, or as, the
performance obligation is satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer.</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="line-height: 1.25; margin-left: 99pt; text-align: justify">
<div style="line-height: 1.25; font-family: Times New Roman,Times,serif">The Collaboration Agreements have multiple performance obligations, due to the contract covering multiple phases of the product lifecycle. The Company identified three
distinct performance obligations: (i) license rights (ii) development services for BLA approval and (iii) manufacturing and supply of NexoBrid.</div>
</div>
<div style="line-height: 1.25"><br style="line-height: 1.25" />
</div>
<div style="line-height: 1.25; margin-left: 99pt; text-align: justify">
<div style="line-height: 1.25; font-family: Times New Roman,Times,serif">The Company allocated the Collaboration Agreements transaction price to each performance obligation using the best estimate of the standalone selling price of each
distinct good or service in the contract<font style="font-weight: bold">. </font></div>
</div>
<div style="line-height: 1.25; margin-left: 99pt"> <br />
</div>
<div style="text-align: justify; line-height: 1.25; margin-left: 99pt">The Company determined the license to the Intellectual Property ("IP") to be a right to use the IP, which has significant standalone functionality. Since Vericel has sublicensing rights and also entitled to generate revenues from BARDA procurement prior to BLA approval, the license is a distinct performance obligation and as
such revenues are recognized at the point in time that control of the license is transferred to the customer. Since the manufacturing and development services
are at market value, then the upfront payment was fully attributed to the license performance obligation. Consequently, as of June 30, 2019, the Company has recognized revenues in the amount of $17,500.
<div> <br />
</div>
<div>Future milestone payments are considered variable consideration and are subject to the variable consideration constraint (i.e. will be recognized once concluded that it is “probable” that a significant reversal of the cumulative revenues
recognized under the contract will not occur in future periods when the uncertainty related to the variable considerations are resolved). Therefore, as the
milestone payments are not probable, revenues were not recognized in respect to such milestone payments.
<div><br />
</div>
</div>
</div>
<div style="line-height: 1.25">
<div style="clear: both; margin-top: 10pt; margin-bottom: 10pt">
</div>
<div style="text-align: justify; line-height: 1.25; font-family: Times New Roman,Times,serif; margin-left: 99pt">Sales related royalties to be received in exchange for license are recognized at the later of when (i) the subsequent sale occurs
or (ii) the performance obligation to which some or all of the sales royalty has been allocated is satisfied (in whole or in part). As royalties are payable based on future commercial sales, as defined in the agreement, which did not occur as
of the financial statements date, the Company did not recognize any revenues from royalties.</div>
<div style="line-height: 1.25; margin-left: 99pt"> </div>
<div style="text-align: justify; line-height: 1.25; font-family: Times New Roman,Times,serif; margin-left: 99pt">Revenues from the sale of products to Vericel will be recognized when all the significant risks and rewards of ownership of the
products have passed to the buyer and the seller no longer retains continuing managerial involvement. The delivery date of the products is usually the date of which ownership passes.</div></div></div></div></div>
2301000
2301000
988000
614000
917000
617000
2017000
2169000
2169000
22000
15000
702000
695000
71000
Represents an amount lower than $0.01.
Represents less than $ 1.