Share Capital

9 Months Ended

Sep. 30, 2015

Share Capital [Abstract]

SHARE CAPITAL

NOTE 7 - SHARE CAPITAL:

1.	In March 2015, several investors exercised 7,605,469 warrants into shares of common stock, for which the Company received $733 thousand in cash. As an incentive to exercise the warrants being held by such investors , the Company issued those investors 15,210,938 fully vested warrants (for no additional consideration) at an exercise price of $0.19078 per share, for a period of 5 years commencing 6 months after the date of the issuance of the warrants. At the date these warrants were issued, the total fair value of the warrants amounted to $1.2 million, measured by using the Black-Scholes model and applying the following assumptions: expected life period of 5 years, share price of $0.15, interest risk free rate of 1.65%, and volatility rate of 70%. By applying the rationale from ASC 470-20-40: Recognition Of Expense Upon Conversion, the $1.2 million fair value of the issued warrants was recorded as financing expense against additional paid in capital.
2.	In March 2015, the Company entered into a securities purchase agreement with an investor pursuant to which the Company issued to the investor 262,082 shares of common stock of the Company at a price of $0.19078 per share.
3.	In April 2015, the Company repaid $108 thousand plus interest of the February 2014 loans. In addition, $364 thousand of the February 2014 loans were converted into 1,040,586 of shares of common stock. Additionally, $800 thousand of the February 2014 loans were extended for an additional 6 months to be repaid with interest in August 2015; $300 thousand of the extended February 2014 loans were repaid in September 2015, and the remaining $500 thousand in loans were extended for an additional 6 months, to be repaid with interest in February 2016. The remaining $1.391 million in loans were extended for one additional year in consideration of the issuance of additional 1,285,714 warrants at an exercise price of $0.35 per share. Furthermore, the Company granted 7,530,000 options to employees, board members and consultants in accordance to the terms and conditions of the 2004 Global Share Option Plan and entered into a securities purchase agreement with an investor pursuant to which the Company issued to the investor 3,794,947 shares of common stock and 1,138,484 warrants at an exercise price of $0.19078 per share for consideration of $724 thousand.
4.	In June 2015, the Company entered into a securities purchase agreement with 2 investors pursuant to which the Company issued to these investors 1,179,370 shares of common and 353,811 warrants at an exercise price of $0. 19078 per share for a consideration of $225 thousand.