SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2024

SHARE CAPITAL

Summary of Stock Option Activity

a) Options granted to employees and directors:

	Year ended December 31, 2024
		Weighted
	Number	average
	of	exercise
	options	price
Outstanding at beginning of year	6,965,601	$	2.13
Changes during the year:
Granted	1,015,725		1.10
Forfeited	(326,969)		1.36
Expired	(252,062)		3.60
Outstanding at end of year	7,402,295	$	1.98
Exercisable at end of year	4,247,896	$	2.49

Summary of Restricted Stock Activity

Restricted stock granted to employees:

	Year Ended December 31, 2024
			Weighted
	Number of		average
	Restricted		of fair value
	Stock		at grant date
Outstanding at beginning of year	1,173,670	$	2.16
Changes during the year:
Granted	704,869		1.24
Forfeited	(23,410)		1.99
Vested	(992,313)	$	1.91
Non vested at end of year	862,816	$	1.70

Summary of Share Options Outstanding and Exercisable

The following table summarizes information concerning outstanding and exercisable options as of December 31, 2024:

	December 31, 2024
	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
$1.03-$2.00	5,899,166	7.94	2,744,767	6.95
$3.55-$3.73	994,679	4.61	994,679	4.61
$4.69-$5.60	435,500	3.88	435,500	3.88
$17.20	72,950	0.21	72,950	0.21
	7,402,295		4,247,896

Schedule of Stock Option Valuation Assumptions

The fair value of each option granted during 2022, 2023 and 2024 for both employees and directors is estimated at the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were applied in determining the options’ fair value on their grant date:

	Year Ended December 31,
	2022		2023		2024
Weighted average grants date fair value (USD)	1.03		1.84		1.10
Exercise price (USD)	1.03		1.84		1.10
Risk free rate	3.32	%	4.44	%	3.55	%
Volatility	85.94	%	79.41	%	79.29	%
Dividend yield	0	%	0	%	0	%
Expected life (Years)	6		5.75		5.75

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)	2022		2023		2024
Cost of goods sold	$	135	$	596	$	631
Research and development expenses		518		777		589
Selling, general and administrative expenses		1,432		2,075		2,033
	$	2,085	$	3,448	$	3,253