Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET

v3.21.1
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2020
Disclosure Of Detailed Information About Property Plant And Equipment And Intangible Assets [Abstract]  
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET [Text Block]

NOTE 11:- PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET

a. Property, Plant and equipment, net:

    Buildings and
improvements		     Greenhouse
production
equipment 		    Greenhouse
structure		     Computer,
software
and
equipment		     Motor
vehicles		     Total  
Cost:                                    
                                     
Balance at January 1, 2019 $ 78   $ 820   $ 683   $ 5   $ 18   $ 1,604  
Additions during the year   577     679     174     167     —     1,597  
Additions from business combination   1,074     —     —     —     —     1,074  
Foreign currency translation   (54 )   35     27     2     1     11  
                                     
Balance, December 31, 2019   1,675     1,534     884     174     19     4,286  
Additions during the year   705     1,123     648     95     44     2,615  
Foreign currency translation   97     104     63     10     2     276  
                                     
Balance December 31, 2020   2,477     2,761     1,595     279     65     7,177  
                                     
Accumulated depreciation:                                    
                                     
Balance at January 1, 2019   2     338     186     1     4     531  
Depreciation during the year   44     181     87     25     3     340  
Foreign currency translation   —     15     7     —     1     23  
                                     
Balance, December 31, 2019   46     534     280     26     8     894  
Depreciation during the year   132     350     147     52     9     690  
Foreign currency translation   6     35     17     3     —     61  
                                     
Balance, December 31, 2020   184     919     444     81     17     1,645  
                                     
Net book value:                                    
                                     
December 31, 2020 $ 2,293   $ 1,842   $ 1,151   $ 198   $ 48   $ 5,532  
                                     
December 31, 2019 $ 1,629   $ 1,000   $ 604   $ 148   $ 11   $ 3,392  

 

b. Intangible assets, net:

    Licenses*)     Other     Total  
                   
Cost:                  
Balance as of January 1, 2019   —     —     —  
Initially consolidated company (see Note 6)   811     183     994  
Disposals   —     —     —  
Adjustments arising from translating financial statements from functional currency to presentation currency   20     —     20  
                   
Balance as of December 31, 2019   831     183     1,014  
Purchases   —     93     93  
Disposals   —     —     —  
Fair value adjustment derived from final purchase price allocation   110     —     110  
Adjustments arising from translating financial statements from functional currency to presentation currency   26     6     32  
                   
Balance as of December 31, 2020   967     282     1,249  
Accumulated amortization and impairment:                  
Balance as of January 1, 2019   —     —     —  
Amortization recognized in the year   125     —     125  
                   
Adjustments arising from translating financial statements from functional currency to presentation currency   —     —     —  
Balance as of December 31, 2019   125     —     125  
Amortization recognized in the year   —     31     31  
Adjustments arising from translating financial statements from functional currency to presentation currency   —     1     1  
                   
Balance as of December 31, 2020   125     32     157  
                   
Amortized cost at December 31, 2019   706     183     889  
Amortized cost at December 31, 2020   842     250     1,092  
 

*) The licenses consist of GMP and GDP licenses. The GMP and GDP licenses have indefinite life. 

c. Impairment of goodwill and intangible assets:

The recoverable amount of the intangible assets and the goodwill was determined based on the value in use which is calculated at the expected estimated future cash flows from Adjupharm, as determined according to the budget for the next three years and approved by the Company's management. The pre-tax discount rate of the cash flows is 12.15%. The projected cash flows for the period exceeding three years was estimated using a fixed growth rate of 2%, representing the long-term average growth rate as customary in Adjupharm's business.

Sensitivity analysis of changes in assumptions:

With respect to the assumptions used in determining the value in use of Adjupharm, management believes that there are no potential changes in the key assumptions which might lead to a significant increase in the carrying amount of Adjupharm over its recoverable amount.