BrainStorm Cell Therapeutics Reports Third Quarter 2015 Financial Results And Provides Corporate Update

Forward-looking statements

Statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially from those stated or implied by such forward-looking statements. Terms and phrases such as "may", "should", "would", "could", "will", "expect", "likely", "believe", "plan", "estimate", "predict", "potential", and similar terms and phrases are intended to identify these forward-looking statements. The potential risks and uncertainties include, without limitation, risks associated with BrainStorm's limited operating history, history of losses; minimal working capital, dependence on its license to Ramot's technology; ability to adequately protect the technology; dependence on key executives and on its scientific consultants; ability to obtain required regulatory approvals; and other factors detailed in BrainStorm's annual report on Form 10-K and quarterly reports on Form 10-Q available at http://www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on BrainStorm's forward-looking statements. These forward-looking statements are based on the beliefs, expectations and opinions of management as of the date of this press release. We do not assume any obligation to update forward-looking statements to reflect actual results or assumptions if circumstances or management's beliefs, expectations or opinions should change, unless otherwise required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. CONTACTS Uri Yablonka Michael Rice Chief Operating Officer LIFESCI ADVISORS, LLC BRAINSTORM CELL THERAPEUTICS INC. Phone: (646) 597-6979 201-488-0460 mrice@lifesciadvisors.com uri@brainstorm-cell.com BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Except share data and exercise prices) September 30, December 31, 2 0 1 5 2 0 1 4 Unaudited Audited ASSETS Current Assets: Cash and cash equivalents 710 4,251 Short-term deposit 16,441 4,290 Account receivable 823 1,005 Prepaid expenses 117 Total current assets 18,091 9,598 Property and Equipment, Net 268 313 Total Assets 18,359 9,911 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payables 335 1,542 Accrued expenses 2,308 1,347 Other accounts payable 195 224 Total Current Liabilities 2,838 3,113 Long-Term-Liabilities: Warrants issued to investors 123 Total Long-Term Liabilities 123 Total Liabilities 2,838 3,236 Stockholders' Equity: Stock capital: Common stock of $0.00005 par value - Authorized: 100,000,000 and 800,000,000 shares at September 30, 2015 and December 31, 2014 respectively; Issued and outstanding: 18,480,957 and 15,281,497shares at September 30, 2015 and December 31, 2014 respectively. Additional paid-in-capital 84,265 68,317 Accumulated deficit (68,757) (61,653) Total Stockholders' Equity 15,521 6,675 Total Liabilities and Stockholders' Equity 18,359 9,911 BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (Except share data and exercise prices) Nine months ended Three months ended September 30, September 30, 2 0 1 5 2 0 1 4 Unaudited Unaudited Operating costs and expenses: Research and development, net 4,123 3,129 1,503 1,572 General and administrative 3,016 1,626 1,068 858 Operating loss (7,139) (4,755) (2,571) (2,430) Financial (income) expenses, net (35) 1,761 (9) Net loss (7,104) (6,516) (2,603) (2,421) Basic and diluted net loss per share from continuing operations (0.39) (0.50) (0.14) (0.16) Weighted average number of shares outstanding used in computing basic and diluted net loss per share 18,354,580 13,122,133 18,480,957 15,158,411 BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands (Except share data and exercise prices) Nine months ended Three months ended September 30, September 30, 2 0 1 5 2 0 1 4 Unaudited Unaudited Cash flows from operating activities: Net loss (7,104) (6,516) (2,603) (2,421) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of deferred charges Expenses related to shares and options granted to service providers 108 186 Amortization of deferred stock-based compensation related to options granted to employees and directors 955 578 287 280 Decrease (increase) in accounts receivable and prepaid expenses 119 405 (552) 341 Increase (decrease) in trade payables (1,207) 1,076 (420) 547 Increase (decrease) in other accounts payable and accrued expenses 932 (13) 732 Revaluation of warrants 1,724 (38) Total net cash used in operating activities (6,117) (2,480) (2,530) (1,119) BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) U.S. dollars in thousands (Except share data and exercise prices) Nine months ended Three months ended September 30, September 30, 2 0 1 5 2 0 1 4 Unaudited Unaudited Cash flows from investing activities: Purchase of property and equipment (28) (94) (12) Changes in short-term deposit (12,151) (1,600) 1,953 (1,600) Investment in lease deposit (2) (2) (6) Total net cash used in investing activities (12,181) (1,693) 1,939 (1,606) Cash flows from financing activities: Proceeds from issuances of common stock through equity warrants and options exercises 2,348 685 470 Proceeds from issuance of Common stock, net 9,554 (104) Proceeds from equity offering through issuances of equity warrants and common stock through the exercise of previously issued equity warrants 12,409 Redemption of warrants in cash (600) Total net cash provided by financing activities 14,757 9,639 366 Increase (decrease) in cash and cash equivalents (3,541) 5,466 (591) (2,359) Cash and cash equivalents at the beginning of the period 4,251 3,503 1,301 11,328 Cash and cash equivalents at end of the period 710 8,969 710 8,969 Non-cash financing activities: Stock issued for warrants exchange 1,633 Warrants liability classified as equity 130 Total non-cash financing activities 130 1,675 To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/brainstorm-cell-therapeutics-reports-third-quarter-2015-financial-results-and-provides-corporate-update-300179438.html