Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 115

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 115
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protect against a portion of our NIS-denominated expenses (primarily compensation) in relation to the dollar.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in conformity with IFRS, as issued
by the IASB. In preparing our consolidated financial statements, we make judgements, estimates and assumptions about the application of
our accounting policies which affect the reported amounts of assets, liabilities, revenue and expenses. Our critical accounting judgements
and sources of estimation uncertainty are described in Note 4 to our consolidated financial statements, which are included elsewhere in
this Annual Report on Form 20-F.

Revenue Recognition

We account for contract revenues in accordance with International
Financial Reporting Standards No. 15, or IFRS 15. IFRS 15, “ Revenue from Contracts with Customers”.

IFRS 15 introduces a five-step model for recognizing revenue from
contracts with customers, as follows:

  identify the contract with a customer;  

  identify the performance obligations in the contract;  

  determine the transaction price;  

  allocate the transaction price to the performance obligations in the contract; and  

  recognize revenue when (or as) the entity satisfies a performance obligation.  

Accrued Expenses

We are required to estimate accrued expenses as part of our process
of preparing financial statements. This process involves estimating the level of service performed on our behalf and the associated cost
incurred in instances where we have not been invoiced or otherwise notified of actual costs. Examples of areas in which subjective judgments
may be required include costs associated with services provided by contract organizations for commercialization, clinical trials, and
preclinical development. We account for expenses associated with these external services by determining the total cost of a given study
based on the terms of the related contract. We accrue for costs incurred as the services are being provided by monitoring the status of
the trials and the invoices received from our external service providers. In the case of clinical trials, the estimated cost normally
relates to the projected costs of treating the patients in our trials, which we recognize over the estimated term of the trial according
to the number of patients enrolled in the trial on an ongoing basis, beginning with patient enrollment. As actual costs become known to
us, we adjust our accruals.

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Investments in Financial Assets

The primary objective of our investment activities is to preserve
principal while maximizing the income that we receive from our investments without significantly increasing risk and loss. Our investments
are exposed to market risk