Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

NOTE 8: STOCK-BASED COMPENSATION:

The Company accounts for stock-based compensation to employees in accordance with FASB ASC Topic 718, “Stock Compensation”. The Company measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires that the Company make several estimates, including the option’s expected life and the price volatility of the underlying stock.

A summary of the Company’s share option activity to employees, service providers and directors, and related information is as follows:

	Nine months ended September 30,
	2015					2014
	Unaudited					Unaudited
				Weighted					Weighted
				average					average
	Number			exercise		Number			exercise
	of options			price		of options			price
				$					$

Outstanding at the beginning of the year		28,603,000			0.18		12,915,261			0.27
Granted*		7,530,000			0.50		17,660,000			0.11
Exercised		(150,000	)		0.10		(10,000	)		0.10
Forfeited		(2,050,815	)		0.25		(753,333	)		0.10
Expired		(2,395,852	)		0.09		(722,261	)		0.51

Outstanding as of September 30, 2015		31,536,333			0.26		29,089,667			0.17
Options exercisable at the end of the half year		17,876,833			0.11		12,013,833			0.10

*	The fair value of each option granted is estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yield of 0% for all years; expected volatility - 85%; risk-free interest rate - 1.0%; expected life 5 years.