1. The Company and Basis of Presentation Anchiano Therapeutics Ltd. is an early-stage preclinical biopharmaceutical company committed to discovering and developing new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies. The Company is developing small-molecule pan-mutant RAS inhibitors and inhibitors of PDE10 and the -catenin pathway. In November 2019, the Company discontinued clinical development of inodiftagene vixteplasmid. After a thorough evaluation of the available data, the Company determined there was a low probability of surpassing the pre-defined futility threshold at the planned interim analysis of its Phase 2 Codex study, which was evaluating inodiftagene vixteplasmid in patients with BCG-unresponsive non-muscle-invasive bladder cancer (NMIBC), and announced the discontinuation of the study. In January 2020, the Board of Directors of the Company approved managements recommendation to close the Companys office and laboratories located in Israel. Following the closure of the Israeli facilities, the Companys sole remaining office will be located in Cambridge, Massachusetts (for details, see Note 4 below). During the last two years, there has been a significant increase in the Companys activities in the United States, resulting from the Companys managements strategic decision to shift its development, financing and ongoing operations from Israel to the United States. On July 2, 2020, the Company's Chief Executive Officer Dr. Frank Haluska sent a letter to the Company's Chairman outlining Dr. Haluska's belief that events had occurred that were sufficient to trigger his ability to resign for "Good Reason" under his employment agreement. The Board informed Dr. Haluska that it disagreed with the letter's assertions regarding "Good Reason" and treated the letter as a constructive resignation effective as of July 2, 2020. Until a new CEO is identified and appointed, the Board will handle all matters related to CEO duties. On July 12, 2020, Dr. Frank Haluska tendered his written resignation from the Company's Board of Directors, effective immediately. Dr. Haluska referenced the matters articulated in his letter of July 2, 2020, and the Company's response and actions following receipt of the letter as the basis for his resignation from the Board. With regards to the resignation of Dr. Frank Haluska the Company has a potential maximum exposure of up to $0.4 million relating to claims of "Good Reason" resignation. It is the Company's position that the CEO resigned without Good Reason, is not entitled to severance, and the Company will contest any and all claims for severance. In light of business circumstances, and in order to conserve cash and preserve optionality while alternatives are being identified and assessed, the Company made a decision during July 2020 to undertake reductions in headcount and other cost saving measures. These include plans to temporarily pause its internal and external research and development work on the Company's pan-RAS-inhibitor program until there is greater clarity regarding Anchiano's ability to fund the program. In the third quarter of 2020 the Company anticipates taking a restructuring charge associated with severance, discontinuation of clinical development activities, and vacating the Company's Cambridge facility. The Company is currently in the process of determining the amount of the restructuring charge. The Company is incorporated and registered in Israel. The Companys American Depositary Shares ("ADSs"), each representing five ordinary shares of the Company with no par value (the "ordinary shares"), began trading on the Nasdaq Capital Market (Nasdaq) in February 2019 under the symbol "ANCN". The Companys ordinary shares traded on the Tel Aviv Stock Exchange (TASE) between August 2006 and June 2019, at which time the Company voluntarily delisted from the TASE. The Company wholly owns a subsidiary, Anchiano Therapeutics Israel Ltd., which itself wholly owns a Delaware-incorporated subsidiary, Anchiano Therapeutics, Inc. Liquidity The condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company has incurred losses and cash flow deficits from operations since inception, resulting in an accumulated deficit at June 30, 2020 of $112.4 million. The Company has financed operations to date primarily through public and private placements of equity securities. The Company anticipates that it will continue to incur net losses for the foreseeable future. The Company believes that its existing cash and cash equivalents will only be sufficient to fund its projected cash needs into the first quarter of 2021. Accordingly, these factors, among others, raise substantial doubt about the Companys ability to continue as a going concern. To meet future capital needs, the Company would need to raise additional capital through equity or debt financing or other strategic transactions. However, any such financing may not be on favorable terms or may not be available to the Company on any terms. The failure of the Company to obtain sufficient funds on commercially-acceptable terms when needed, would have a material adverse effect on the Companys business, results of operations and financial condition. The forecast of cash resources is forward-looking information that involves risks and uncertainties, and the actual amount of the Companys expenses could vary materially and adversely as a result of a number of factors. The Company has based its estimates on assumptions that may prove to be wrong, and the Companys expenses could prove to be significantly higher than it currently anticipates. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Unaudited Interim Financial Information The interim condensed consolidated financial statements included in this quarterly report are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and applicable rules and regulations of the SEC regarding interim financial reporting and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Companys financial position as of June 30, 2020, and its results of operations for the three and six months ended June 30, 2020 and 2019, changes in shareholders equity for the three and six months ended June 30, 2020 and 2019, and cash flows for the six months ended June 30, 2020 and 2019. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The December 31, 2019 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These financial statements should be read in conjunction with the audited financial statements included in the Companys Form 10-K for the year ended December 31, 2019 as filed with the SEC. The Companys significant accounting policies are disclosed in the audited financial statements for the year ended December 31, 2019 included in the Companys Form 10-K. Since the date of such financial statements, there have been no changes to the Companys significant accounting policies.