SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2016

SHARE CAPITAL [Abstract]

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 two-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,
	2014				2015				2016
			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		5,153,898	$	3.951		5,870,309	$	3.770		6,952,293	$	3.363
Changes during the year:
Granted		900,000		2.370		1,909,000		1.72
Forfeited and Expired		44,201		6.833		277,016		5.395		1,514,957		3.748
Exercised (*)		139,388		0.446		550,000		0.972		553,125		0.067
Outstanding at end of year		5,870,309	$	3.770		6,952,293	$	3.363		4,884,211	$	3.617
Exercisable at end of year		4,905,559	$	3.933		4,477,043	$	4.182		3,498,492	$	4.296

(*) The total intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016, was approximately $447,000, $675,000 and $213,000, respectively.

Summary of Restricted Stock Activity - Options Granted to Employees

Restricted stock granted to employees:

	Year ended December 31,
	2014		2015		2016
	Number of Restricted Shares
Outstanding at beginning of year		970,208		386,124		127,874
Changes during the year:
Vested		398,375		255,749		127,874
Forfeited		185,709		2,501
Outstanding at end of year		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,
	2014				2015				2016
	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		1,208,592	$	6.136		637,209	$	11.638
Changes during the year:
Granted		296,167		2.678
Expired						466,883		0.001		429,209		15.748
Vested restricted stock						104,500
Outstanding at end of year		1,208,592		6.136		637,209		11.638		208,000		3.156
Exercisable at end of year		912,425	$	7.259		549,709	$	12.954		170,500	$	3.109

Schedule of Information about Share Options Outstanding

The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2016:

December 31, 2016
Options
outstanding						Options exercisable
		Number of		Weighted				Weighted
		options		average				average
		outstanding		remaining		Number of		remaining
Exercise		at end of		contractual		options		contractual
prices		year		life		exercisable		life
$	0.001		8,000		0.86		8,000		0.86
$	1.720		1,784,279		8.22		792,310		8.22
$	2.350		40,000		1.81		40,000		1.81
$	2.370		900,000		7.74		506,250		7.74
$	2.650		212,682		2.15		212,682		2.15
$	3.020		50,000		1.10		50,000		1.10
$	3.370		150,000		7.56		112,500		7.56
$	5.000		1,009,250		1.10		1,009,250		1.10
$	6.900		710,000		3.15		710,000		3.15
$	7.550		160,000		3.65		160,000		3.65
$	9.660		68,000		3.83		68,000		3.83
			5,092,211				3,668,992

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)	2014		2015		2016
Research and development expenses	$	936	$	904	$	571
Marketing, general and administrative expenses		306		898		417
	$	1,242	$	1,802	$	988