Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Note 9:   Related Party Transactions:

	December 31, 2014		December 31, 2013
Due from related party (included in the accompanying balance sheets)	$	3,828	$	6,406
Due to related parties (included in the accompanying balance sheets)	$	4,842	$	146

Related party balances are with Tower and are mainly for purchases and payments on behalf of the other party, tools sale, tools lease and service charges. In addition, as described in Note 5 above, the Company issued to its 2014 Participating Holders and Purchasers an aggregate of approximately $58.3 million of Notes, which are convertible into an aggregate of up to approximately 5.8 million ordinary shares of Tower at a conversion price of $10.07 per share. In accordance with fair market value calculations, based on the net present value model of the equity component of the 2014 Notes and the dilution caused to Tower's shareholders, the value was determined to be approximately $4.5 for each Tower share underlying the 2014 Notes ("Underlying Value"). This value was given by Tower to the Company, enabling the Company to execute the Exchange Agreement with its 2014 Participating Holders which in return agreed to extend the maturity of the Company's outstanding debt  from June 2015 to December 2018. This value is settled through a monetary deposit advance payment on account of future conversions. The advance will mature in one year and may be extended annually for additional one year periods, up to four (4) years, while bearing an interest rate equal to the applicable federal short-term-rate interest published by the Internal Revenue Service. In the event and to the extent of conversion of any 2014 Notes into Tower's shares, the obligation of Tower to repay the advance payment balance shall be reduced. To date, the Company had deposited majority of such Underlying Value, against which it will apply any amounts for which the Company may become obligated to Tower as a result of any actual conversions of the 2014 Notes.