SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Options and Restricted Stocks Granted

Below is a table summarizing all of the options and restricted stock grants to employees for each year of the three-year period ended December 31, 2015:

							Fair value
							at grant
							(U.S.
Year of	No. of options		Exercise				dollars in		Expiration
grant	granted		price		Vesting period		thousands)		period
2014		900,000	$	2.37		4 years	$	1,007		10 years
2015		1,909,000	$	1.72		4 years	$	1,900		10 years
		2,809,000

Summary of Stock Option Activity - Options Granted to Employees

Options granted to employees:

	Year ended December 31,
	2013				2014				2015
			Weighted				Weighted				Weighted
	Number		average		Number		average		Number		average
	of		exercise		of		exercise		of		exercise
	options		price		options		price		options		price
Outstanding at beginning of year		5,253,579	$	3.923		5,153,898	$	3.951		5,870,309	$	3.770
Changes during the year:
Granted						900,000		2.370		1,909,000		1.72
Forfeited and expired		20,558		6.603		44,201		6.833		277,016		5.395
Exercised (*)		79,123		1.418		139,388		0.446		550,000		0.972
Outstanding at end of year		5,153,898	$	3.951		5,870,309	$	3.770		6,952,293	$	3.363
Exercisable at end of year		4,614,148	$	3.591		4,905,559	$	3.933		4,477,043	$	4.182

(*) The total intrinsic value of options exercised during the years ended December 31, 2013, 2014 and 2015, was approximately $306,000, $447,000 and $675,000, respectively.

Summary of Restricted Stock Activity - Options Granted to Employees

Restricted stock granted to employees:

	Year ended December 31,
	2013		2014		2015
	Number of Restricted Shares
Outstanding at beginning of year		1,394,708		970,208		386,124
Changes during the year:
Granted
Vested		406,666		398,375		255,749
Forfeited		17,834		185,709		2,501
Outstanding at end of year		970,208		386,124		127,874

Schedule of Options Granted to Service Providers

Options and restricted stocks granted to consultants, directors, and other service providers:

	Year ended December 31,
	2013				2014				2015
	Number				Number				Number
	of		Weighted		of		Weighted		of		Weighted
	Options/		average		options/		average		options/		average
	restricted		exercise		restricted		exercise		restricted		exercise
	stock		price		stock		price		stock		price
Outstanding at beginning of year		912,425	$	7.259		912,425	$	7.259		1,208,592	$	6.136
Changes during the year-
Granted						296,167		2.678
Expired										466,883		0.001
Vested restricted stock										104,500		-
Outstanding at end of year		912,425	$	7.259		1,208,592		6.136		637,209		11.638
Exercisable at end of year		912,425	$	7.259		912,425	$	7.259		549,709	$	12.954

Schedule of Information about Share Options Outstanding

The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2015:

December 31, 2015
Options and restricted stock
outstanding						Options exercisable
		Number of
		options and		Weighted				Weighted
		restricted stock		average				average
		outstanding		remaining		Number of		remaining
Exercise		at end of		contractual		options		contractual
prices		year		life		exercisable		life
	n/a (*)		127,874		n/a		n/a		n/a
$	0.001		252,324		0.53		252,324		0.53
$	0.120		308,801		1.00		308,801		1.00
$	0.972		445,853		0.47		445,853		0.47
$	1.720		1,856,500		9.22		—		—
$	2.350		40,000		2.82		40,000		2.82
$	2.370		900,000		8.75		281,250		8.75
$	2.650		336,482		2.47		336,482		2.47
$	3.020		50,000		2.10		50,000		2.10
$	3.370		150,000		8.56		62,500		8.56
$	5.000		1,658,000		1.65		1,658,000		1.65
$	6.900		976,000		3.31		976,000		3.31
$	7.550		160,000		4.66		160,000		4.66
$	9.660		68,000		4.83		68,000		4.83
$	16.700		387,542		0.99		387,542		0.99
			7,717,376				5,026,752

(*) Represents restricted stock.

Schedule of Stock-Based Compensation Expense in Statement of Operations

The following table illustrates the effect of share-based compensation on the statement of operations:

	Year ended December 31,
(U.S. dollars in thousands)	2013		2014		2015
Research and development expenses	$	2,655	$	936	$	904
Marketing, general and administrative expenses		1,434		306		898
	$	4,089	$	1,242	$	1,802