Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 116

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 116
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 due to fluctuations in interest rates, which may affect our interest income and the fair market value of our
investments. We manage this exposure by performing ongoing evaluations of our investments. Due to the short-term maturities of our investments
to date, their carrying value has always approximated their fair value.

A financial asset is classified in this category if our management
has designated it as a financial asset upon initial recognition, because it is managed, and its performance is evaluated, on a fair-value
basis in accordance with a documented risk management or investment strategy. Our investment policy with regard to excess cash, as adopted
by our board of directors, is composed of the following objectives: (i) preserving investment principal; (ii) providing liquidity; and
(iii) providing optimum yields pursuant to the policy guidelines and market conditions. The policy provides detailed guidelines as to
the securities and other financial instruments in which we are allowed to invest. In addition, in order to maintain liquidity, investments
are structured to provide flexibility to liquidate at least 50% of all investments within 15 business days. Information about these assets,
including details of the portfolio and income earned, is provided internally on a quarterly basis to our key management personnel and
on a semi-annual basis to the Investment Monitoring Committee of our board of directors. Any divergence from this investment policy requires
approval from our board of directors.

Share-based Compensation

We account for share-based compensation arrangements in accordance
with the provisions of IFRS 2. IFRS 2 requires companies to recognize share compensation expense for awards of equity instruments based
on the grant-date fair value of those awards (with limited exceptions). The cost is recognized as compensation expense over the life of
the instruments, based upon the grant-date fair value of the equity or liability instruments issued. The fair value of our share-based
compensation grants is computed as of the grant date based on the Black-Scholes model, using the standard parameters established in that
model including estimates relating to volatility of our shares/ADSs, risk-free interest rates, estimated life of the equity instruments
issued and the market price of our shares/ADSs. As our ordinary shares/ADSs are publicly traded on the TASE or Nasdaq, we do not need
to estimate their fair market value. Rather, we use the actual closing market price of our ordinary shares/ADSs on the date of grant,
as reported by the TASE or Nasdaq.

Warrants

In connection with a loan