Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 114

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 114
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 Any failure or delay in completing clinical trials,
or in obtaining regulatory approvals, could cause a delay in generating product revenue and cause our research and development expenses
to increase and, in turn, have a material adverse effect on our operations. Due to the factors set forth above, we are not able to estimate
with any certainty when we would recognize any net cash inflows from our projects.

Sales and Marketing Expenses

Sales and marketing expenses consist primarily of compensation
for employees in commercialization, marketing and business development functions. Other signiﬁcant costs include marketing and
communication materials, market access activities, professional fees for outside market research and consulting, and legal services related
to compliance and to potential business development transactions.

We expect our sales and marketing expenses to be reduced significantly
following the license agreement with Ayrmid and the termination of our commercialization activities in the U. S., and to be primarily related
to business development

General and Administrative Expenses

General and administrative expenses consist primarily of compensation
for employees in executive and operational functions, including accounting, finance, legal, investor relations, information technology
and human resources. Other significant general and administration costs include facilities costs, professional fees for outside accounting
and legal services, travel costs, insurance premiums and depreciation.

63

Non-Operating Expense and Income

Non-operating expense and income includes fair-value adjustments
of liabilities on account of the warrants issued in equity financings we carried out in February 2019, September 2022 April 2024, November
2024 and January 2025. These fair-value adjustments are highly influenced by our share price at each period end (revaluation date). Non-operating
expense and income also includes issuance expenses under the “at-the-market” offering agreement, or ATM Agreement, between
us and HCW entered into in September 2021, and the pro-rata share of issuance expenses from the placements related to the warrants. Sales-based
royalties from the license agreement with Perrigo have also been included as part of non-operating income, as the out-licensed product
is not an integral part of our strategy, and the amounts are not material.

Financial Expense and Income

Financial expense and income consist of interest earned on our
cash, cash equivalents and short-term bank deposits; interest expense related to our loans from BlackRock, bank fees and other transactional
costs. In addition, it may also include gains/losses on foreign exchange hedging transactions, which we carry out from time to time to