Press release

HACKENSACK, N.J. and PETACH TIKVAH, Israel ·

BrainStorm Announces First Quarter 2017 Financial Results and Provides Corporate Update

BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a leading developer of adult stem cell technologies for neurodegenerative diseases, announced financial results for the first quarter ending March 31, 2017.

"The NurOwn® Phase 3 amyotrophic lateral sclerosis (ALS) clinical program, designed to support a Biologics License Application (BLA), is in the final stages of preparation," said Chaim Lebovits, President and Chief Executive Officer of BrainStorm. "We are working closely with selected clinical trial sites in the U.S. and Israel and are coordinating the production of clinical trial supplies. We believe that NurOwn has the potential to modify the course of ALS and to address a significant unmet medical need for ALS patients and their families."

First Quarter 2017 and Recent Corporate Highlights

First Quarter 2017 Financial Results

Research and development expenses, net for the three months ended March 31, 2017 and 2016 were $941,000 and $986,000, respectively, representing a decrease of $45,000. This decrease is due to a decrease of $222,000 for costs of activities related to the U.S. ALS Clinical Trial, offset by an increase of $177,000 for costs associated with the clinical trial, planned to be conducted in Israel, payroll and a net increase of other research and development expenses.

General and administrative expenses for the three months ended March 31, 2017 and 2016 were $829,000 and $826,000, respectively. The increase in general and administrative expenses of $3,000 is primarily due to: a decrease of $ 160,000 in stock-based compensation expenses offset by a net increase of $163,000 of other costs.

Net loss for the three months ended on March 31, 2017 was $1.8 million, or ($0.10) per share, as compared to a net loss of $1.8 million or ($0.10) per share for the three months ended March 31, 2016.

At March 31, 2017, Brainstorm had net working capital of $7.9 million including cash, cash equivalents and short-term bank deposits amounting to $8.3 million. This compares to cash, cash equivalents, and short-term deposits of approximately $10.0 million at December 31, 2016.

About BrainStorm Cell Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) U.S. dollars in thousands (Except share data) Three months ended March 31,
2017 U.S. $ in thousands2017 U.S. $ in thousands2017 U.S. $ in thousands2016 U.S. $ in thousands2016 U.S. $ in thousands2016 U.S. $ in thousands
Operating expenses:Operating expenses:
Research and development, netResearch and development, net$ 941$ 941$ 941$ 986$ 986
General and administrativeGeneral and administrative829829829826826
Operating lossOperating loss(1,770)(1,770)(1,770)(1,812)(1,812)
Financial expenses (income), netFinancial expenses (income), net151515(22)(22)
Net lossNet loss$ (1,785)$ (1,785)$ (1,785)$ (1,790)$ (1,790)
Basic and diluted net loss per share from continuing operationsBasic and diluted net loss per share from continuing operations$ (0.10)$ (0.10)$ (0.10)$ (0.10)$ (0.10)
Weighted average number of shares outstanding used in computing basic and diluted net loss per shareWeighted average number of shares outstanding used in computing basic and diluted net loss per share18,688,37718,688,37718,688,37718,653,80418,653,804
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Except share data)
March 31, 2017 U.S. $ in thousandsDecember 31, 2016 U.S. $ in thousands
ASSETSUnauditedAudited
Current Assets:
Cash and cash equivalents$ 604$ 547
Short-term deposit (Note 4)7,7439,443
Account receivable202306
Prepaid expenses and other current assets176148
Total current assets8,72510,444
Long-Term Assets:
Prepaid expenses and other long-term assets2625
Property and Equipment, Net281297
Total Long-Term Assets307322
Total assets$ 9,032$ 10,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payables$ 362$ 345
Accrued expenses90152
Other accounts payable337367
Total current liabilities789864
Stockholders' Equity:
Stock capital: (Note 5)1111
Common stock of $0.00005 par value - Authorized: 100,000,000 shares at March 31, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,699,665 and 18,687,987 shares at March 31, 2017 and December 31, 2016 respectively.
Additional paid-in-capital85,14085,014
Accumulated deficit(76,908)(75,123)
Total stockholders' equity8,2439,902
Total liabilities and stockholders' equity$ 9,032$ 10,766

BrainStorm Cell Therapeutics Inc. is a biotechnology company engaged in the development of first-of-its-kind adult stem cell therapies derived from autologous bone marrow cells for the treatment of neurodegenerative diseases. Brainstorm holds the rights to develop and commercialize its NurOwn technology through an exclusive, worldwide licensing agreement with Ramot, the technology transfer company of Tel Aviv University. NurOwn has been administered to approximately 75 patients with ALS in clinical trials conducted in the United States and Israel. In a randomized, double-blind, placebo-controlled clinical trial conducted in the U.S., a clinically meaningful benefit was demonstrated by higher response to NurOwn compared with a placebo. For more information, visit Brainstorm's website at www.brainstorm-cell.com.

Safe-Harbor Statement

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", "goals", "targets", "hopes", "anticipates", "intends", "projects", "continues", 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. The forward-looking statements contained in this press release 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 Media: Uri Yablonka Brainstorm Cell Therapeutics Inc. Phone: (646) 666-3188 uri@brainstorm-cell.com

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

U.S. dollars in thousands

(Except share data)

Three months ended

March 31,

U.S. $ in thousands

Operating expenses:

Research and development, net

$ 941

$ 986

General and administrative

829

826

Operating loss

(1,770)

(1,812)

Financial expenses (income), net

(22)

Net loss

$ (1,785)

$ (1,790)

Basic and diluted net loss per share from continuing operations

$ (0.10)

$ (0.10)

Weighted average number of shares outstanding used in computing basic and diluted net loss per share

18,688,377

18,653,804

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

(Except share data)

March 31,

December 31,

U.S. $ in thousands

ASSETS

Unaudited

Audited

Current Assets:

Cash and cash equivalents

$ 604

$ 547

Short-term deposit (Note 4)

7,743

9,443

Account receivable

202

306

Prepaid expenses and other current assets

176

148

Total current assets

8,725

10,444

Long-Term Assets:

Prepaid expenses and other long-term assets

Property and Equipment, Net

281

297

Total Long-Term Assets

307

322

Total assets

$ 9,032

$ 10,766

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payables

$ 362

$ 345

Accrued expenses

152

Other accounts payable

337

367

Total current liabilities

789

864

Stockholders' Equity:

Stock capital: (Note 5)

Common stock of $0.00005 par value - Authorized: 100,000,000 shares at March 31, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,699,665 and 18,687,987 shares at March 31, 2017 and December 31, 2016 respectively.

Additional paid-in-capital

85,140

85,014

Accumulated deficit

(76,908)

(75,123)

Total stockholders' equity

8,243

9,902

Total liabilities and stockholders' equity

$ 9,032

$ 10,766

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/brainstorm-announces-first-quarter-2017-financial-results-and-provides-corporate-update-300457360.html

Contacts

Media:

Uri Yablonka

Brainstorm Cell Therapeutics Inc.

Phone: (646) 666-3188

uri@brainstorm-cell.com

Investors:

Michael Rice

LifeSci Advisors, LLC

Phone: 646-597-6979

mrice@lifesciadvisors.com

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

U.S. dollars in thousands

(Except share data)

Three months ended

March 31,

2017

2016

U.S. $ in thousands

Operating expenses:

Research and development, net

$       941

$       986

General and administrative

829