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STOCK CAPITAL

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

NOTE 16:-

STOCK CAPITAL

Composition of common stock capital of the Company:

	Number of shares
	Authorized as of December 31,						Issued and outstanding as of December 31,
	2018		2017		2016		2018		2017		2016

Stock of $0.0001 par value:
Common stock		125,000,000		125,000,000		125,000,000		46,052,802		43,812,601		41,259,391

Common stock rights:

Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes; to share equally, on a per share basis, in bonuses, profits, or distributions out of fund legally available therefor; and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company.

Stock option plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs, and other share-based awards to directors, employees, officers, and consultants of the Company and its Subsidiaries. As of December 31, 2018, a total of 8,080,717 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”).

The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan, commencing on January 1st of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that the Company’s board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31st.

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000. As of December 31, 2018, an aggregate of 8,946,316 options are still available for future grant under the 2015 Plan.

A summary of the activity in the share options granted to employees and members of the board of directors for the year ended December 31, 2018 and related information follows:

						Weighted
						average
				Weighted		remaining
	Number			average		contractual		Aggregate
	of			exercise		term		intrinsic
	options			price		in years		Value

Outstanding as of December 31, 2017		3,524,310			7.40		6.35		106,251
Granted		180,983			38.05
Exercised		(1,280,057	)		4.89
Forfeited or expired		(23,343	)		8.35
Outstanding as of December 31, 2018		2,401,893			11.04		6.19		58,323

Vested and expected to vest as of December 31, 2018		2,359,484			10.94		6.17		57,520

Exercisable as of December 31, 2018		1,843,014			7.93		5.64		50,173

The aggregate intrinsic value in the tables above represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period.

The total intrinsic value of options exercised during the years ended December 31, 2018, December 31, 2017, the six months ended December 31, 2016 and the year ended June 30, 2016, was $58,601, $44,625, $1,790, and $30,670, respectively.

The weighted average grant date fair values of options granted to employees and executive directors during the years ended December 31, 2018, December 31, 2017, the six months ended December 31, 2016 and the year ended June 30, 2016, were $20.83, $7.94, $8.86, and $13.27, respectively.

The options outstanding as of December 31, 2018, have been separated into exercise price ranges as follows:

	Options		Weighted		Options		Weighted
	outstanding		average		exercisable		average
Range of	as of		remaining		as of		remaining
exercise	December 31,		contractual		December 31,		contractual
price	2018		Life in years		2018		Life in years
$0.87 – $1.50		22,236		0.57		22,236		0.57
$2.01 – $2.46		331,482		2.56		331,482		2.56
$3.03 – $5.01		1,080,892		5.86		1,043,120		5.86
$9.36		10,546		6.08		10,098		6.08
$13.70 – $14.85		426,181		8.14		180,479		8.14
$15.34 – $17.14		183,623		7.66		100,571		7.66
$20.81 – $25.09		165,950		6.68		121,100		6.68
$38.05		180,983		9.01		33,928		9.01

		2,401,893		6.19		1,843,014		5.64

A summary of the activity in the RSUs granted to employees and members of the board of directors for the year ended December 31, 2018, is as follows:

	No. of RSUs			Weighted average grant date fair value
Unvested as of January 1, 2018		2,087,992			24.33
Granted		1,744,621			41.45
Vested		(811,376	)		24.97
Forfeited		(214,005	)		29.36
Unvested as of December 31, 2018		2,807,232			34.40

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2018, 2017, the six months ended December 31, 2016 and the year ended June 30, 2016, was $41.45, $27.30, $15.74 and $24.77, respectively.

Options and RSUs issued to non-employee consultants:

The Company has granted options and RSU’s to purchase common shares to non-employee consultants as of December 31, 2018 as follows:

	Options & RSU’s
	outstanding		Range		Exercisable
	as of		of		as of
Issuance	December 31,		Exercise		December 31,		Exercisable
Date	2018		price		2018		Through

2014		6,478		$3.51 - $5.01		4,923	October 29, 2024
2015		5,918		$0		-
2016		7,126		$0 - $15.34		-	September 21, 2026
2017		18,626		$0 - $13.70		-	March 15, 2027
2018		20,783		$0		-

		58,931				4,923

In connection with the grant of stock options to non-employee consultants, the Company recorded stock compensation expenses in the years ended December 31, 2018, December 31, 2017, the six months ended December 31, 2016 and the year ended June 30, 2016, in the amounts of $1,299, $986, $66, and $524, respectively.

Employee Stock Purchase Plan (“ESPP”):

The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of December 31, 2018, total of 1,739,280 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares.

However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of December 31, 2018, 385,646 common stock shares had been purchased under the ESPP.

As of December 31, 2018, 1,353,634 common stock shares were available for future issuance under the ESPP.

In accordance with ASC No. 718, the ESPP is compensatory and, as such, results in recognition of compensation cost.

Stock-based compensation expense for employees and non-employee consultants:

The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and non-employee consultants and ESPP in the consolidated statement of operations for the years ended December 31, 2018, and December 31, 2017, the six months ended December 31, 2016, and the year ended June 30, 2016, as follows:

	Year ended December 31,				Six months ended December 31,		Year ended June 30,
	2018		2017		2016		2016

Cost of revenues	$	4,343	$	2,250	$	871	$	945
Research and development, net		11,205		5,703		2,061		2,364
Selling and marketing		9,111		5,387		1,852		2,915
General and administrative		5,959		4,224		1,816		2,820

Total stock-based compensation expense	$	30,618	$	17,564	$	6,600	$	9,044

As of December 31, 2018, there were total unrecognized compensation expenses of $98,826 related to non-vested equity-based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from January 1, 2019 through February 28, 2023.