TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of the Components of Loss before Income Taxes

	Year ended			6 month period ended			Year ended June 30,
	December 31, 2014			December 31, 2013			2013			2012
	($ in thousands)
Profit (loss) before taxes on income:
InspireMD, Inc.	$	(11,671	)	$	(2,632	)	$	(19,613	)	$	(11,078	)
Subsidiaries		(13,412	)		(6,694	)		(9,637	)		(6,515	)
	$	(25,083	)	$	(9,326	)	$	(29,250	)	$	(17,583	)

Schedule of Current Taxes on Income

	Year ended			6 month period ended			Year ended June 30,
	December 31, 2014			December 31, 2013			2013			2012
	($ in thousands)

Loss before taxes on income, as reported in the statements of operations	$	25,083		$	9,326		$	29,250		$	17,583

Theoretical tax benefit		(8,529	)		(3,171	)		(9,945	)		(5,984	)
Increase in tax benefit resulting from permanent differences		390			164			1,613			1,448
Increase (decrease) in taxes on income resulting from the computation of deferred taxes at a rate which is different from the theoretical rate, and other		2,038			(171	)		205			(75	)
Increase (decrease) in uncertain tax positions - net		-			-			-			(71	)
Difference between income reported for tax purposes and income for financial reporting purposes — net		1,100
Decrease in theoretical tax benefit resulting from subsidiaries different tax rate		(73	)		(14	)		(61	)		1,408
Change in corporate tax rates		-			(121	)		-			(245	)
Change in valuation allowance		5,086			3,323			8,196			3,533
	$	12		$	10		$	8		$	14

Schedule of the Changes in the Valuation Allowance

	Year ended December 31,		6 month period ended December 31,		Year ended June 30,
	2014		2013		2013		2012
	($ in thousands)
Balance at the beginning of the year	$	19,569	$	16,246	$	8,050	$	4,517
Changes during the year	$	5,086		3,323		8,196		3,533
Balance at the end of the year	$	24,655	$	19,569	$	16,246	$	8,050

Reconciliation of Unrecognized Tax Benefits

	Year ended June 30, 2012
	($ in thousands)
Balance at beginning of period		$	71
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior year			(71	)
Balance at end of period		$	-

Schedule of Open Tax Years

Jurisdiction		Years
U.S.		2009-2014
Israel		2011-2014
Germany		2009-2014
United Kingdom		2014

Schedule of Deferred Tax Assets and Liabilities

	December 31,
	2014			2013
	($ in thousands)
Short-term:
Allowance for doubtful accounts	$	89		$	107
Provision for vacation and recreation pay		59			85
		148			192
Long-term:
R&D expenses		1,738			1,085
Share-based compensation		2,990			2,137
Carry forward tax losses		19,729			16,111
Accrued severance pay, net		50			44
		24,507			19,377
Less-valuation allowance		(24,655	)		(19,569	)
	$	-		$	-

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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