MAZOR ROBOTICS LTD. (ifrs-full:DisclosureOfFinancialInstrumentsExplanatory)

Note 26 - Financial Instruments

A.	Credit Risk

(1)

Exposure to credit risk

The maximum exposure to credit risk for cash and cash equivalents, deposits, short-term investments, trade receivables and long-term investments at the reporting date by type of counterparty was:

	December 31
	2017		2016
	Carrying		Carrying
	amount		amount
	USD thousands
Cash and cash equivalents		46,376		14,954
Mutual funds		15		13
Short-term investments - bank deposits		56,693		37,849
Trade receivables		6,056		8,225
Other current assets		271		171
Long-term investments - bank deposits		5,171		9,017

		114,582		70,229

The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was as follows:

	December 31
	2017		2016
	USD thousands
Israel		819		29
United States		4,644		7,503
Asia Pacific		75		497
Rest of the world		518		196

		6,056		8,225

(2)

Aging of debts and impairment losses

The aging of trade receivables at the reporting date was:

	December 31
	2017		2016
	USD thousands
Not past due		5,610		7,986
Past due 0-30 days		417		215
Past due 31-60 days		19		24
Past due 61-90 days		5		-
Past due over 90 days		5		-
		6,056		8,225

As of December 31, 2017 and 2016, the Company did not have an allowance for doubtful accounts.

B.	Liquidity risk

All outstanding liabilities at December 31, 2017 and 2016 are to be paid within 6 months.

C.	Market risk

(1)

Linkage and foreign currency risks

The Group’s exposure to linkage and foreign currency risk was as follows based on notional amounts:

	December 31, 2017
	New Israeli Shekels
	Unlinked CPI		Linked CPI		US dollar		Euro		Non - monetary		Total
	USD thousands
Current Assets
Cash and cash equivalents		9,977		-		35,812		587		-		46,376
Short-term investments		15		-		56,693		-		-		56,708
Trade receivables		223		-		4,719		518		-		5,460
Other current assets		974		-		422		-		658		2,054
Inventory		-		-		-		-		7,864		7,864
Total current assets		11,189		-		97,646		1,105		8,522		118,462

Other non-current assets		-		132		-		-		387		519
Trade receivables		596		-		-		-		-		596
Property and equipment, net		-		-		-		-		4,323		4,323
Intangible assets, net		-		-		-		-		1,925		1,925
Long-term investments		-		-		5,171		-		-		5,171
Total assets		11,785		132		102,817		1,105		15,157		130,996

Current Liabilities
Trade payables		1,275		-		2,199		-		-		3,474
Deferred revenue		-		-		-		-		3,471		3,471
Other current liabilities		3,560		-		6,028		24		262		9,874
Total current liabilities		4,835		-		8,227		24		3,733		16,819

Employee benefits		-		-		-		-		414		414
Total liabilities		4,835		-		8,227		24		4,147		17,233
Total balance, net		6,950		132		94,590		1,081		11,010		113,763

	December 31, 2016
	New Israeli Shekels
	Unlinked CPI			Linked CPI		US dollar		Euro		Non-monetary		Total
Current Assets	USD thousands
Cash and cash equivalents		2,300			-		11,923		731		-		14,954
Short-term investments		287			-		37,575		-		-		37,862
Trade receivables		29			-		8,000		196		-		8,225
Other current assets		977			-		231		-		520		1,728
Inventory		-			-		-		-		4,715		4,715
Total current assets		3,593			-		57,729		927		5,235		67,484

Other non-current assets		-			93		-		-		258		351
Property and equipment, net		-			-		-		-		3,615		3,615
Intangible assets, net		-			-		-		-		2,258		2,258
Long-term investments		-			-		9,017		-		-		9,017
Total assets		3,593			93		66,746		927		11,366		82,725

Current Liabilities
Trade payables		1,615			-		3,264		139		-		5,018
Deferred revenue		-			-		-		-		4,031		4,031
Other current liabilities		2,676			-		5,440		18		328		8,462
Total current liabilities		4,291			-		8,704		157		4,359		17,511

Employee benefits		-			-		-		-		325		325
Total liabilities		4,291			-		8,704		157		4,684		17,836
Total balance, net		(698	)		93		58,042		770		6,682		64,889

Information regarding the CPI and significant exchange rates:

	For the year ended December 31,								For the year ended December 31,
	2017		2016			2015			2017		2016		2015
	% of change								Spot price of 1 USD at the reporting date
1 NIS		10.9		1.5			(0.3	)		0.2884		0.2601		0.2563
1 Euro		13.9		(3.4	)		(10.4	)		1.1978		1.0517		1.0884
CPI in points *		0.4		(0.2	)		(1.0	)		113.05		112.60		112.82

* According to an average basis of 2008 =100.

The Group’s exposure to linkage and foreign currency risk in respect of derivatives is as follows:

Currency/

linkage

Amount

Date of

receivable

payable

receivable

payable

Expiration

Fair value

NIS thousands

USD thousands

December 31, 2017

Instruments not accounted for as hedging:

Buy put options

NIS

USD

1,500

435

Jan-March 2018

3.6

Sell call options

NIS

USD

1,500

414

Jan-March 2018

(0.4

)

3.2

December 31, 2016

Instruments not accounted for as hedging:

Forward

NIS

USD

4,000

(1,039

)

Jan-March 2017

(2)

Interest rate risk

At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was as follows:

	December 31
	2017		2016
	Carrying		Carrying
	amount		amount
	USD thousands		USD thousands
Fixed rate instruments
Deposits held at financial institutions, with original maturity periods of up to three months		15,304		170
Short-term investments		56,693		37,849
Long-term investments		5,171		9,017
		77,168		47,036

Variable rate instruments
Mutual funds		15		13
		15		13

D.	Fair value

Fair value hierarchy

As of December 31, 2017, and 2016, the marketable securities in the amount of USD 15 thousand and USD 13 thousand, respectively held for trading are presented at fair value through profit or loss. The fair value is determined on the basis of quoted prices (unadjusted) in active markets for identical instruments (level 1).

As of December 31, 2017, derivative financial instruments classified as an asset in the amount of USD 3 thousand (As of December 31, 2016 - an asset of USD 2 thousand) are presented at fair value and changes recognized in the profit or loss statement. The fair value was valued utilizing market observable inputs (level 2). The fair value of these derivative financial instruments is measured based on observable market data, such as spot rate, yield curves and exchange rate volatility, as of the fair value calculation date.

MAZOR ROBOTICS LTD. | CIK:0001566844 |

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