6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16

OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2016

Commission file number: 001-36621

FOAMIX PHARMACEUTICALS LTD.

(Translation of registrant's name into English)

2 Holzman Street, Weizmann Science Park

Rehovot, Israel (Address of principal executive office)

_____________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.   

Form 20-F S           Form 40-F £

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): £

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): £

CONTENTS

This report on Form 6-K of the registrant consists of (i) a press release issued by the registrant on August 10, 2016, announcing the registrant’s second quarter financial results for the three and six months ended June 30, 2016, and (ii) the registrant’s Condensed Consolidated Financial Statements as of June 30, 2016, each of which is attached hereto as an exhibit and incorporated by reference herein.

The information contained in this Form 6-K is incorporated by reference into (i) the registration statement on Form S-8 (number 333-199486) of the registrant, filed with the Securities and Exchange Commission (the "SEC"), as amended by the post-effective registration statement on Form S-8 POS filed February 5, 2016, (ii) the registration statement on Form S-8 (number 333-209403) of the registrant, filed with the SEC, and (iii) the registration statement on Form F-3 (333-207543) of the registrant, filed with the SEC, in each case to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

Exhibits

99.1	Press release: Foamix Reports Second Quarter 2016 Financial Results and Provides Business Update.
99.2	Condensed Consolidated Financial Statements as of June 30, 2016.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FOAMIX PHARMACEUTICALS  LTD. (Registrant)
By:	/s/ Ilan Hadar
	Name: Ilan Hadar
	Title:   Chief Financial Officer

Date: August 10, 2016

2

EX-99.1

Exhibit 99.1

News Release  

August 10, 2016

Foamix Reports Second Quarter 2016 Financial Results and Provides Business Update

Conference Call and Webcast on Wednesday, August 10, 2016 at 8:30am Eastern / 5:30am Pacific

Rehovot, Israel August 10, 2016 – Foamix Pharmaceuticals Ltd. (NASDAQ: FOMX) (“Foamix Pharmaceuticals” or the “Company”), a clinical stage specialty pharmaceutical company focused on developing and commercializing proprietary topical foams to address unmet needs in dermatology, announced today financial results for the three and six months ended June 30, 2016.

Clinical, business and corporate developments for the three month ended June 30, 2016 and to date:

· The Phase 3 trial for lead drug candidate FMX101 in patients with moderate-to-severe acne which commenced in May 2016, is progressing as expected. The Company expects to release topline results during the first half of 2017.

· Completed enrollment, ahead of schedule, in the Phase 2 clinical trial of FMX103 for the treatment of papulopustular rosacea. This is a double-blind, randomized placebo-controlled trial with 233 patients enrolled in 18 sites in Germany. The Company expects to release topline results of this trial before year end.

· The Company intends to conduct a phototoxicity study later this year in support of the clinical development program for FMX102, a minocycline foam for the treatment of impetigo.

· For FDX104 (doxycycline foam 4% for the treatment of acneiform rash associated with use of EGFRIs in cancer patients), the Company is continuing to develop the protocol and endpoints for future clinical trials as well as the pharmacology and toxicology protocols and manufacturing processes.

· U.S. Sales of Finacea^® Foam, azelaic acid 15% for the treatment of rosacea, continue to grow. The royalty payment from Bayer HealthCare AG for Finacea^® Foam for Q2, 2016 was $752,000, up 10% from the first quarter of 2016.  Finacea® Foam was developed as part of a research and development collaboration between Foamix and Bayer, utilizing Foamix's proprietary foam technology platform. The drug was launched by Bayer in the USA in September, 2015.

Financial highlights for the three months ended June 30, 2016:

· Total revenues were $752,000 compared with $109,000 for the three months ended June 30, 2015. The revenues in the quarter included royalty payments from Bayer HealthCare AG for the sales of Finacea^® Foam.

· Research and development expenses were $6.7 million, compared with $2.8 million in the three months ended June 30, 2015. This increase resulted primarily from an increase in costs relating to the FMX101 and FMX103 clinical trials as well as an increase in payroll and related expenses due to an increase in the number of R&D employees.

· Selling, general and administrative expenses were $2.1 million, compared with $2.0 million in the three months ended June 30, 2015. The increase in selling, general and administrative expenses resulted primarily from increases in travel expenses and market research costs, offset by decreases in payroll and other payroll-related expenses and insurance expenses.

· Operating expenses totaled $8.9 million, compared with $4.8 million in the three months ended June 30, 2015.

· Net loss was $8.2 million or $0.27 per share, basic and diluted, compared with a loss of $4.6 million or $0.18 per share, basic and diluted, for the three months ended June 30, 2015.

· Cash, cash equivalents, short and long-term investments as of June 30, 2016 totaled $90.9 million, compared with approximately $103.8 million as of December 31, 2015.

Financial Highlights for the Six Months Ended June 30, 2016:

· Total revenues were $1.5 million compared with $557,000 for the six months ended June 30, 2015. Revenues for the six months ended June 30, 2016 included mostly royalty payments, in the amount of $1.4 million, from Bayer HealthCare AG for the sales of Finacea^® Foam.

· Research and development expenses were $10.3 million, compared with $4.9 million in the six months ended June 30, 2015. The increase in research and development expenses relates to the Company’s Phase 3 clinical trials for FMX101, its lead product candidate for treatment of moderate-to-severe acne, and FMX103, the Company’s lead product candidate for treatment of papulopustular rosacea, as well as an increase in payroll and related expenses due to an increase in the number of R&D employees.

· Selling, general and administrative expenses were $3.8 million, compared with $3.4 million in the six months ended June 30, 2015. The increase in selling, general and administrative expenses resulted primarily from an increase in payroll, payroll-related expenses and travel expenses.

· Operating expenses totaled $14.1 million, compared with $8.3 million in the six months ended June 30, 2015.

· Net loss was $12.7 million or $0.41 per share, basic and diluted, compared with a loss of $7.7 million or $0.30 per share, basic and diluted, for the six months ended June 30, 2015.

Management Overview

During the second quarter of 2016 we continued to progress the development of our lead clinical-stage product candidates, FMX101 for the treatment of moderate-to-severe acne, and FMX103 for the treatment of papulopustlar rosacea.

Regarding FMX101, in early May 2016 we commenced our Phase 3 clinical trials for the treatment of moderate-to-severe acne vulgaris.

The Phase 3 program consists of two multi-center trials, each enrolling 450 patients with moderate-to-severe acne.  Patients enrolled are being randomized on a 2:1 basis (active vs vehicle), initially into a 12-week double-blind, vehicle-controlled phase where patients will be treated once daily with either 4% minocycline foam or vehicle.  The double-blind portion of the studies will be followed by 9 months of open-label treatment with the active 4% foam to evaluate the safety of intermittent use of FMX101.

The two co-primary efficacy endpoints are (1) the absolute change from baseline in inflammatory lesion counts in each treatment group at week 12; and (2) the proportion of patients achieving success at week 12 as defined by an Investigator’s Global Assessment (IGA) score of “clear” or “almost clear” (score of 0 or 1) and at least a 2 -grade improvement (decrease) from baseline at week 12. Safety evaluation will include reported adverse events, assessments of tolerability, clinical laboratory tests and vital signs.

Patient enrollment for both Phase 3 trials is progressing as planned. We expect to report top-line results from the blinded portion of these studies in the first half of 2017.

FMX101 has the potential to be the first clinically-viable topical formulation of minocycline. This product candidate is being developed in the U.S. under the FDA’s abbreviated 505(b)(2) pathway.

FMX103, for the treatment of moderate-to-severe papulopustular rosacea, has the same active ingredient, minocycline, as our lead candidate, FMX101, for acne. Based on the positive clinical data we have generated in acne and the dermatological similarities between papulopustular rosacea lesions and inflammatory acne lesions, we believe FMX103 can be a safe and effective topical treatment for rosacea. FMX103 has the potential to offer significant advantages over the current standard of care.

During April 2016, we announced the completion of patient enrollment in our Phase 2 trial of FMX103. This is a double-blind, randomized, vehicle-controlled study in which 233 patients have been enrolled in 18 sites throughout Germany. Patients were randomized to receive FMX103 (3% minocycline foam), FMX103 (1.5% minocycline foam) or vehicle foam, once daily over 12 weeks, followed up by a 4-week post-treatment evaluation. The primary endpoints are safety, tolerability and efficacy. We expect to report top-line results of this study later this year.

We are also pursuing the development of FMX103 in the U.S. under the FDA’s 505(b)(2) regulatory pathway.

With respect to the clinical development plan of FMX102 for the treatment of impetigo, we plan to conduct a phototoxicity study later this year. Upon completion of the study, we intend to submit these results to the FDA and continue discussions regarding additional steps in the clinical development of this program.

FDX104 (4% doxycycline foam) is our novel topical foam formulation of doxycycline for the management of the acne-like rash that afflicts cancer patients taking epidermal growth factor receptor inhibitors (EGFRI) such as Erbitux^® and Vectibix^®. A Phase 2 trial with FDX104 in cancer patients was successfully completed last year. There are currently no drugs approved for this indication and no FDA guidance regarding the clinical and regulatory pathway for such indication. Accordingly, we are continuing to develop the protocol and endpoints for future clinical trials as well as the pharmacology and toxicology protocols and manufacturing processes.

In addition to our internal drug development pipeline, we have development and license agreements relating to our proprietary foam technology with other pharmaceutical companies, including Bayer Healthcare, Merz, Allergan and Prestium, which was recently acquired by Mylan, in various stages of development and commercialization. Our agreements with these licensees entitle us to development fees, milestone payments and royalties upon commercialization.

In September 2015, Bayer Healthcare began selling Finacea^® Foam (azelaic acid 15% for the treatment of rosacea) in the U.S.  Finacea® foam is a prescription foam product which was developed as part of a research and development collaboration between Foamix and Bayer, utilizing Foamix's proprietary foam technology platform. According to our license agreement with Bayer, we are entitled to royalties and certain milestone payments upon commercialization of Finacea Foam. For the three months ended June 30, 2016, we were entitled to royalties from Bayer Healthcare in an amount of $752,000, up 10% from the first quarter of 2016, based on Bayer’s net sales of Finacea^® Foam during such period. We continue to see quarter over quarter growth in the royalties from Bayer.

Financial Results for the Three Months Ended June 30, 2016

Revenues

Total revenues for the three months ended June 30, 2016 were $752,000 compared with $109,000 for the three months ended June 30, 2015. Revenues for the three months ended June 30, 2016, included royalty payments from Bayer HealthCare AG for the sales of Finacea^® Foam. Revenues for the three months ended June 30, 2015 included payments for development projects with other customers.

Operating Expenses

Our operating expenses for the three months ended June 30, 2016 and 2015 were as follows:

Research and Development Expenses

Research and development expenses increased by $3.9 million, or 139%, from $2.8 million in the three months ended June 30, 2015 to $6.7 million in the three months ended June 30, 2016. The increase in research and development expenses resulted primarily from an increase of $3.3 million in costs relating to the FMX101 and FMX103 clinical trials and an increase of $556,000 in payroll and payroll related expenses due to an increase in the number of R&D employees (including bonuses and stock based compensation).

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $105,000, or 5%, from $2.0 million in the three months ended June 30, 2015 to $2.1 million in the three months ended June 30, 2016. The increase in selling, general and administrative expenses resulted primarily from an increase of $149,000 in travel expenses and a $92,000 increase in market research costs, offset by a decrease of $66,000 in payroll and other payroll-related expenses (including bonus and stock based compensation) and a $52,000 decrease in insurance expenses;

Finance Income (expenses), Net

For the three months ended June 30, 2016 we recorded financial expenses of $14,000 as opposed to financial income of $83,000 recorded for the three months ended June 30, 2015. The financial expenses in the three months ended June 30, 2016 resulted mostly from expenses on the loan received from the Binational Industrial Research and Development (“BIRD”) Fund, offset by interest and financial gains from our cash investments, whereas the financial income in the three months ended June 30, 2015 resulted from interest and financial gains from our cash investments.

Net Loss

For the three months ended June 30, 2016 we recorded a loss of $8.2 million or $0.27 per share, basic and diluted, compared with a loss of $4.6 million or $0.18 per share, basic and diluted, for the three months ended June 30, 2015.

Financial Results for the Six Months Ended June 30, 2016

Revenues

Total revenues for the six months ended June 30, 2016 were $1.5 million compared with $557,000 for the six months ended June 30, 2015. Revenues for the six months ended June 30, 2016, included mostly royalty payments, in the amount of $1.4 million from Bayer HealthCare AG for the sales of Finacea^® Foam. Revenues for the six months ended June 30, 2015 included payments for development projects with other customers.

Operating Expenses

Our operating expenses for the six months ended June 30, 2016 and 2015 were as follows:

Research and Development Expenses

Research and development expenses increased by $5.4 million, or 110%, from $4.9 million in the six months ended June 30, 2015 to $10.3 million in the six months ended June 30, 2016. The increase in research and development expenses resulted primarily from an increase of $4.3 million in costs relating to the FMX101 and FMX103 clinical trials; an increase of $814,000 in payroll and payroll related expenses (including bonuses and stock based compensation) due to an increase in the number of R&D employees; and an increase of $277,000 in advisory and consulting expenses.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $443,000, or 13%, from $3.4 million in the six months ended June 30, 2015 to $3.8 million in the six months ended June 30, 2016. The increase in selling, general and administrative expenses resulted primarily from an increase of $234,000 in payroll and other payroll-related expenses (including bonus and stock based compensation); and an increase of $166,000 in travel expenses;

Finance Income, net

For the six months ended June 30, 2016 we recorded financial income of $160,000 compared to $66,000 recorded for the six months ended June 30, 2015. The increase in financial income resulted from an increase in interest and financial gains from our cash investments, partially offset by expenses on the loan received from BIRD.

Net Loss

For the six months ended June 30, 2016 we recorded a loss of $12.7 million or $0.41 per share, basic and diluted, compared with a loss of $7.7 million or $0.30 per share, basic and diluted, for the six months ended June 30, 2015.

Liquidity and Capital Resources

As of June 30, 2016 we had cash, cash equivalents, short and long-term investments of $90.9 million, compared with $103.8 million as of December 31, 2015. The decrease was mostly due to operating expenses primarily relating to the clinical trials. During the six months ended June 30, 2016 we used $12.1 million in cash in our operations compared to $5.8 million used in operating activities in the six months ended June 30, 2015.

Conference Call

Management will host an investment community conference call on August 10, 2016 at 8:30 a.m. Eastern / 5:30 a.m. Pacific / 3:30 p.m. Israel to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing Domestic: 888-397-5352; International: 719-325-2329, Conference ID: 9558347.  Webcast: http://public.viavid.com/index.php?id=120292

A replay of the call will be accessible two hours after its completion through August 24, 2016 by dialing Domestic: 877-870-5176; International: 858-384-5517; Passcode: 9558347. The call will also be archived for 90 days at www.streetevents.com and www.foamixpharma.com.

About Foamix

Foamix is a specialty pharmaceutical company focused on the development and commercialization of proprietary, innovative and differentiated topical drugs for dermatological therapy. Our clinical stage product candidates include FMX101, our novel minocycline foam for the treatment of moderate-to-severe acne, FMX102 for the treatment of impetigo, FMX 103 for the treatment of rosacea and FDX104, our doxycycline foam for the management of acne-like rash induced by EGFRI anticancer drugs.

In addition, we have development and license agreements relating to our technology with various pharmaceutical companies including Bayer HealthCare, Merz, Allergan and Mylan.

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that are not historical facts, such as statements regarding assumptions, expectations, forecasts, beliefs or intentions related to financial results, commercial results, timing and results of clinical trials and U.S. FDA and other regulatory agencies authorizations.  Forward-looking statements are based on our current knowledge and our present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions.  Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of various factors including, but not limited to, unexpected delays, excess costs or unfavorable results of clinical trials, delays or denial in the U.S. FDA approval process, additional competition in the acne market, denial of reimbursement by third party payors or inability to raise additional capital. We discuss many of these risks in greater detail under the heading “Risk Factors” in our most recent Annual Report on Form 20-F (File No. 161477078) filed on March 7, 2016, and elsewhere in that Annual Report. Although we believe these forward-looking statements are reasonable, they speak only as of the date of this announcement and Foamix undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law. Given these risks and uncertainties, you should not rely upon forward-looking statements as predictions of future events.

Erbitux^® is a registered trademark of Eli Lilly and Company. Vectibix^® is a registered trademark of Amgen Inc. Finacea^® is a registered trademark of Bayer Healthcare.

Contact:	U.S. Investor Relations
Ilan Hadar, CFO	Michael Rice
Foamix Pharmaceuticals Ltd.	LifeSci Advisors, LLC
+972-8-9316233	646-597-6979
ilan.hadar@foamixpharma.com	mrice@lifesciadvisors.com

EX-99.2

Exhibit 99.2

FOAMIX PHARMACEUTICALS LTD.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2016

FOAMIX PHARMACEUTICALS LTD.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2016

INDEX

	Page
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
Balance sheets	2-3
Statements of operations	4
Statements of comprehensive loss	5
Statements of changes in shareholders' equity	6
Statements of cash flows	7
Notes to financial statements	8-17

The amounts are stated in US dollars in thousands (except for share data)

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

(Unaudited)

	June 30,		December 31,
	2016		2015
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents	$	20,006	$	18,795
Short term bank deposits		28,123		13,107
Investment in marketable securities (Note 4)		27,203		23,693
Restricted investment in marketable securities (Notes 3,6)		954		769
Accounts receivable:
Trade		754		314
Other		373		471
TOTAL  CURRENT ASSETS		77,413		57,149
NON-CURRENT ASSETS:
Investment in marketable securities (Note 4)		14,600		32,285
Investment in long term bank deposits		-		15,130
Property and equipment, net		796		646
Other		35		35
TOTAL  NON-CURRENT ASSETS		15,431		48,096
TOTAL  ASSETS	$	92,844	$	105,245

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

(Unaudited)

	June 30,			December 31,
	2016			2015
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Current maturities of bank borrowing	$	32		$	31
Accounts payable and accruals:
Trade		1,342			1,353
Deferred revenues		-			29
Other		1,571			2,169
Loan from the BIRD foundation		-			476
TOTAL  CURRENT LIABILITIES		2,945			4,058
LONG-TERM LIABILITIES:
Bank borrowing		4			20
Liability for employee severance benefits		379			365
TOTAL  LONG-TERM LIABILITIES		383			385
TOTAL  LIABILITIES		3,328			4,443
COMMITMENTS (Note 6)
SHAREHOLDERS' EQUITY:
Ordinary Shares, NIS 0.16 par value - authorized: 50,000,000  Ordinary Shares as of June 30, 2016   and December 31, 2015; issued and outstanding: 30,661,632 and 30,639,134 Ordinary Shares   as of June 30, 2016 and December 31, 2015, respectively		1,285			1,284
Additional paid-in capital		147,107			145,878
Accumulated deficit		(58,931	)		(46,230	)
Accumulated other comprehensive income (loss)		55			(130	)
TOTAL  SHAREHOLDERS' EQUITY		89,516			100,802
TOTAL  LIABILITIES AND SHAREHOLDERS’ EQUITY	$	92,844		$	105,245

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

 (U.S. dollars in thousands, except per share data)

(Unaudited)

	Six months ended June 30						Three months ended June 30
	2016			2015			2016		2015
REVENUES (Note 8)	$	1,497		$	557		$	752	$	109
COST OF REVENUES		43			36			12		13
GROSS PROFIT		1,454			521			740		96
OPERATING EXPENSES:
Research and development		10,300			4,915			6,734		2,795
Selling, general and administrative		3,838			3,395			2,128		2,023
TOTAL OPERATING EXPENSES		14,138			8,310			8,862		4,818
OPERATING LOSS		12,684			7,789			8,122		4,722
FINANCE EXPENSES (INCOME), net		(160	)		(66	)		14		(83	)
LOSS BEFORE INCOME TAX		12,524			7,723			8,136		4,639
INCOME TAX		177			9			57		8
NET LOSS FOR THE PERIOD	$	12,701		$	7,732		$	8,193	$	4,647
LOSS PER SHARE BASIC AND DILUTED	$	0.41		$	0.30		$	0.27	$	0.18
WEIGHTED AVERAGE NUMBER OF SHARES   OUTSTANDING USED IN COMPUTATION OF   BASIC AND DILUTED LOSS PER SHARE IN THOUSANDS		30,658			25,837			30,661		25,917

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 (U.S. dollars in thousands)

(Unaudited)

	Six months ended June 30						Three months ended June 30
	2016			2015			2016			2015
NET LOSS	$	12,701		$	7,732		$	8,193		$	4,647
OTHER COMPREHENSIVE INCOME:
Net unrealized gains from marketable securities		(167	)		(18	)		(11	)		-
Gains (losses) on marketable securities reclassified  into net loss		4			(67	)		2			-
Net unrealized losses (gains) on derivative financial instruments		(26	)		(58	)		52			(73	)
Gains on derivative financial instruments reclassified into net loss		4			-			-			-
TOTAL OTHER COMPREHENSIVE LOSS (INCOME)		(185	)		(143	)		43			(73	)
TOTAL  COMPREHENSIVE LOSS	$	12,516		$	7,589		$	8,236		$	4,574

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

5

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(U.S. dollars in thousands, except share data)

(Unaudited)

	Ordinary shares				Additional paid-incapital			Accumulated deficit			Accumulated other comprehensive income (loss)			Total
	Number of shares		Amounts		Amounts
BALANCE AS OF JANUARY 1, 2015		22,443,934	$	954	$	77,600		$	(29,713	)	$	(79	)	$	48,762
CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2015:
Comprehensive loss									(7,732	)		143			(7,589	)
Issuance of Ordinary Shares through a public offering, net of $4,818 issuance costs (Note 5a)		7,419,353		298		63,904									64,202
Exercise of warrants		515,634		21		2,109									2,130
Exercise of options		163,850		7		308									315
Share-based compensation (Note 5c)						859									859
BALANCE AT JUNE 30, 2015		30,542,771	$	1,280	$	144,780		$	(37,445	)	$	64		$	108,679
BALANCE AS OF JANUARY 1, 2016		30,639,134	$	1,284	$	145,878		$	(46,230	)	$	(130	)	$	100,802
CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2016:
Comprehensive loss									(12,701	)		185			(12,516	)
Exercise of restricted share units		22,498		1		(1	)
Share-based compensation (Note 5c)						1,230									1,230
BALANCE AT JUNE 30, 2016		30,661,632	$	1,285	$	147,107		$	(58,931	)	$	55		$	89,516

6

FOAMIX PHARMACEUTICALS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)

(Unaudited)

	Six months ended June 30
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	12,701		$	7,732
Adjustments required to reconcile loss to net cash used in operating activities:
Depreciation and amortization		66			77
Changes in marketable securities and bank deposits, net		242			67
Changes in accrued liability for employee severance benefits, net of retirement fund profit		14			28
Share-based compensation		1,230			859
Non cash finance income, net		(2	)		(43	)
Changes in operating asset and liabilities:
Decrease (increase) in trade and other receivable		(342	)		191
Increase (decrease) in accounts payable and accruals		(616	)		771
Net cash used in operating activities		(12,109	)		(5,782	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets		(216	)		(149	)
Investment in bank deposits		(13,000	)		(28,025	)
Investment in marketable securities		(700	)		(46,762	)
Proceeds from sale and maturity of marketable securities and bank deposits		27,725			6,028
Net cash provided by (used in) investing activities		13,809			(68,908	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares through a public offering, net of issuance costs		-			64,202
Proceeds from exercise of warrants		-			2,130
Proceeds from exercise of options		-			315
Payments in respect of BIRD loan		(476	)		-
Payments in respect of bank borrowings		(16	)		(16	)
Net cash provided by (used in) financing activities		(492	)		66,631
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,208			(8,059	)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS		3			7
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD		18,795			43,008
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	$	20,006		$	34,956
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS
Cashless exercise of warrants		-			4
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for taxes		119			-
Interest received		641			-
Interest paid		239			-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION:

a. Nature of operations

Foamix Pharmaceuticals Ltd. (hereinafter “Foamix”) is an Israeli company incorporated in 2003. Foamix is a clinical-stage specialty pharmaceutical company operating in one segment - the development and commercialization of foam-based formulations, using its proprietary technology, which includes its foam platforms. Foamix develops its own product candidates, mainly for the treatment of moderate-to-severe acne and other skin conditions. It also licenses its technology under development and licensing agreements to various pharmaceutical companies for development of certain products combining Foamix's foam technology with the licensee’s proprietary drugs.

Since incorporation through June 30, 2016, Foamix and its subsidiary (hereinafter “the Company”) incurred losses and negative cash flows from operations mainly attributable to its development efforts and has an accumulated deficit of $58,931. The Company has financed its operations mainly through the issuance of shares through private and public financing rounds, convertible loans and payments received under development and licensing agreements. The Company's cash, cash equivalents, deposits and marketable securities as of June 30, 2016, will allow the Company to fund its operating plan through at least the next 12 months. However, the Company expects to continue to incur significant research and development and other expenses related to its ongoing operations and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable. If the Company is unable to obtain such funding it will need to curtail or cease operations.

b. Basis of presentation

The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2016, the consolidated results of operations and comprehensive loss for the three and six-month periods ended June 30, 2016 and 2015, the consolidated changes in shareholders’ equity and cash flows for the six-month periods ended June 30, 2016 and 2015.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual financial statements for the year ended December 31, 2015. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements for the year ended December 31, 2015, but does not include all disclosures required by U.S. GAAP.

The results for the three and six-month periods ended June 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016.

8

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

a. Principles of consolidation

The consolidated financial statements include the accounts of Foamix and its subsidiary. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

b. Bank depositsBank deposits with original maturity dates of more than three months but less than one year are included in short-term deposits. Bank deposits with maturity of more than one year are considered long-term. The interest rates on the Company’s deposits range between 1.32%-1.6%. The fair value of bank depositsapproximates the carrying value since they bear interest at rates closeto the prevailing market rates.

c. Marketable securities The Company invests in debt and equity securities classified as available for sale in accordance with ASC 320, Investments - Debt and Equity Securities.

Management determines the appropriate classification of its investments in securities at the time of purchase and reevaluates such determinations at each balance sheet date. Classifications of debt securities in the balance sheet are determined based on the maturity date of the securities.

Unrealized gains of available for sale securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for both debt and equity securities are included in financial expense, net.

For equity securities, the Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income or loss.

d. Derivatives

The Company purchases foreign exchange derivative financial instruments (written and purchased currency options). The transactions are designed to hedge the Company’s currency exposure.

The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheet at their fair value. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of other comprehensive income or loss and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings.

9

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued):

For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging.

e. Newly issued and recently adopted accounting pronouncements:

1) In May 2014, the FASB issued ASU No. 2014-09,Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity’s revenue recognition. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April and May 2016, the FASB issued ASU No. 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensingand ASU 2016-12,Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

2) In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10)." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. It is effective for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements.

3) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

10

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued):

4) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

5) In June 2016, the FASB issued ASU No. 2016-13,“Measurement of Credit Losses on Financial Instruments.”This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

11

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 3 - FAIR VALUE PRESENTATION

Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.

The Company’s assets and liabilities that are measured at fair value as of June 30, 2016 and December 31, 2015 are classified in the tables below in one of the three categories described above:

	June 30, 2016
	Level 1			Level 2				Total
Marketable securities		$	954		$	41,803			$	42,757
Currency options designated as hedging instruments			-		$	17			$	17
	December 31, 2015
	Level 1			Level 2				Total
Marketable securities		$	1,977		$	54,770			$	56,747
Currency options designated as hedging instruments (current liability)			-		$	(5	)		$	(5	)

Foreign exchange risk management

The Company purchases and writes non-functional currency options in order to hedge the currency exposure on the Company’s cash flow. The currency hedged items are denominated in New Israeli Shekel (NIS). The purchasing and writing of options is part of a comprehensive currency hedging strategy. These transactions are at zero cost for periods of up to one year. The counterparties to the derivatives are major banks in Israel.

During February 2015, the Company began purchasing and writing options in respect of salary, rent and other expenses dominated in NIS for a period of up to a year ahead. These transactions qualify for cash flow hedge accounting. During the six months ended June 30, 2016 the Company recorded income in the amount of $4 in operating expenses relating to hedge transaction.

As of June 30, 2016 the total hedged amount was NIS 12.3 million.

As of June 30, 2016, the Company has a lien in the amount of $761 on the Company’s marketable securities in respect of bank guarantees granted in order to secure the hedging transactions.

12

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 4 - MARKETABLE SECURITIES

Marketable securities as of June 30, 2016 consist mainly of debt and equity securities. These securities are classified as available-for-sale and are recorded at fair value. Changes in fair value, net of taxes (if applicable), are reflected in other comprehensive loss. Realized gains and losses on sales of the securities, as well as premium or discount amortization, are included in the consolidated statement of operations as finance income or expenses.

The following table sets forth the Company’s marketable securities:

	June 30,		December 31,
	2016		2015
Israeli mutual funds	$	954	$	1,977
Certificates of deposit		28,126		35,627
Municipal and agency bonds		13,677		19,143
Total	$	42,757	$	56,747

As at June 30, 2016 and December 31, 2015 the fair value, cost and gross unrealized holding gains of the securities owned by the Company were as follows:

	June 30, 2016
	Fair value		Cost or Amortized cost		Gross unrealized holding losses		Gross unrealized holding gains
Israeli mutual funds	$	954	$	952		-	$	2
Certificates of deposit		28,126		28,096		4		34
Municipal and agency bonds		13,677		13,671		2		8
Total	$	42,757	$	42,719	$	6	$	44

	December 31, 2015
	Fair value		Cost or Amortized cost		Gross unrealized holding losses		Gross unrealized holding gains
Israeli mutual funds	$	1,977	$	1,978	$	3	$	2
Certificates of deposit		35,627		35,703		79		3
Municipal and agency bonds		19,143		19,191		49		1
Total	$	56,747	$	56,872	$	131	$	6

As of June 30, 2016 the unrealized losses attributed to the Company’s marketable securities were primarily due to credit spreads and interest rate movements. The Company has considered factors regarding other than temporary impaired securities and determined that there are no securities with impairment that is other than temporary as of June 30, 2016 and December 31, 2015.

As of June 30, 2016, and December 31, 2015 the Company’s debt securities had the following maturity dates:

	Market value
	June 30, 2016		December 31, 2015
Due within one year	$	27,203	$	22,485
1 to 2 years		12,288		27,046
2 to 3 years		2,312		5,239
Total	$	41,803	$	54,770

Refer to note 3 and note 6 regarding the liens on the Company’s marketable securities.

13

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 5 - SHARE CAPITAL:

a. Public offering

On April 20, 2015 the Company completed a follow-on public offering. A total of 7,419,353 ordinary shares were sold at a price of $9.30 per share. Prior to closing, the underwriters fully exercised their option to purchase 967,741 additional ordinary shares. The net proceeds from the sale of shares, after deducting underwriting discounts, commissions and other offering expenses, were approximately $64.2 million.

b. Warrants

No warrants have been exercised during the six-months ending June 30, 2016. As of June 30 2016, the total amount of warrants outstanding was 2,064,937.

c. Share-based compensation

In May 2015, the Company's board of directors approved a new option plan (the "Plan") replacing the previous plan approved in 2009. The Plan included a pool of 2,690,694 ordinary shares for grant to Company employees, consultants, directors and other service providers. As of June 30 2016, 989,858 shares remain available for grant under the Plan.

In the six months ended June 30, 2016 and 2015, the Company granted options to employees and non-employees as follows:

	Six month ended June 30,
	2016
	Award amount		Exercise price range		Vesting period	Expiration
Employees:
Options		615,310	$	6.04-$6.66	4 years	10 years
RSUs		5,000		-	4 years		-
Consultants -
options		4,800	$	6.34	4 years	10 years

	Six month ended June 30,
	2015
	Award amount		Exercise price range		Vesting period	Expiration
Employees -
options		153,000	$	6.77	4 years	10 years
RSUs		189,000		-	4 years		-
Directors-
options		24,000	$	11.87	3 years	10 years
Consultants -
RSUs		83,000		-	4 years		-

14

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 5 - SHARE CAPITAL (continued):

The fair value of options and RSUs granted to employees and directors during the six months ended June 30, 2016 and 2015 was $2,049 and $3,422 respectively. The fair value of options granted to consultants during the six months ended June 30, 2016 was $23.

The fair value of RSUs granted to employees is based on the share price on grant date.

The fair value of options granted to employees and directors on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	Six months ended June 30
	2016			2015
Value of ordinary share	$	5.90-$6.84		$	7.53-$11.99
Dividend yield		0	%		0	%
Expected volatility*		60.3%-60.5	%		63.4%-64.9	%
Risk-free interest rate		1.36%-1.52	%		1.38%-1.98	%
Expected term	6 years			6 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

The fair value of options granted to consultants as of June 30, 2016 was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	June 30, 2016
Value of ordinary share	$	6.52
Dividend yield		0	%
Expected volatility*		69.2	%
Risk-free interest rate		1.78	%
Expected term	10 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

    The following table illustrates the effect of share-based compensation on the statements of operations:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Cost of revenues	$	3	$	1	$	1	$	-
Research and development expenses		464		263		252		232
Selling, general and administrative		763		595		444		475
	$	1,230	$	859	$	697	$	707

15

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 6 - COMMITMENTS

Lease agreement

The Company leases office space for its headquarters and research and development facilities in Israel and the United States of America under several lease agreements. The lease agreements for the facilities in Israel are linked to the Israeli CPI and expire between December 2016 and December 2020. The lease agreement in the United States is due to expire during August 2017.

Rental expenses for the three and six months ended June 30, 2016 and 2015, are as follows:

		Six months ended June 30				Three months ended June 30
		2016		2015		2016		2015
Rental expenses	$	174	$	176	$	73	$	87

Future minimum lease commitments under non-cancelable operating lease agreements are as follows:

2016	$	155
2017		613
2018		554
2019 and thereafter		1,112
Total	$	2,434

The Company has a lien in the amount of $193 on the Company’s marketable securities in respect of bank guarantees granted in order to secure the lease agreements.

NOTE 7 - RELATED PARTIES - TRANSACTIONS AND BALANCES:

a. Transactions with related parties

Related parties include the Chairman of the Board of Directors and the Chief Executive Officers of the Company.

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Expenses:
Payroll expenses	$	271	$	641	$	218	$	316
Directors fee	$	155	$	172	$	87	$	74

b. Balances with related parties -

	June 30,		December 31,
	2016		2015
Accounts payable and accruals	$	174	$	636

As of June 30, 2016 there were 600,875 outstanding options and RSUs granted to related parties, with an average exercise price of $4.3. See note 5c.

16

FOAMIX PHARMACEUTICALS LTD.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(continued)

(U.S. dollars in thousands, except share and per share amounts)

NOTE 8 - ENTITY-WIDE DISCLOSURE:

a. Net revenues by geographic area were as follows:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
United States	$	14	$	557		-	$	109
Germany		1,434		-		752		-
France		49		-		-		-
Total revenues	$	1,497	$	557	$	752	$	109

b. Revenues from principal customers - revenues from single customers that exceed 10% of total revenues in the relevant period:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Customer A		-	$	72		-	$	22
Customer B		14		350		-		86
Customer C		-		135		-		1
Customer D		1,434		-		752		-

c. Net revenues by type of payment:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Development service payments	$	63	$	557		-	$	109
Royalties		1,434		-		752		-
Total revenues	$	1,497	$	557	$	752	$	109

17

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	Foamix Pharmaceuticals Ltd.
Entity Central Index Key	0001606645
Document Type	6-K
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 20,006	$ 18,795
Short term bank deposits	28,123	13,107
Investment in marketable securities (Note 4)	27,203	23,693
Restricted investment in marketable securities (Notes 3,6)	954	769
Accounts receivable:
Trade	754	314
Other	373	471
TOTAL CURRENT ASSETS	77,413	57,149
NON-CURRENT ASSETS:
Investment in marketable securities (Note 4)	14,600	32,285
Investment in long term bank deposits		15,130
Property and equipment, net	796	646
Other	35	35
TOTAL NON-CURRENT ASSETS	15,431	48,096
TOTAL ASSETS	92,844	105,245
CURRENT LIABILITIES:
Current maturities of bank borrowing	32	31
Accounts payable and accruals:
Trade	1,342	1,353
Deferred revenues		29
Other	1,571	2,169
Loan from the BIRD foundation		476
TOTAL CURRENT LIABILITIES	2,945	4,058
LONG-TERM LIABILITIES:
Bank borrowing	4	20
Liability for employee severance benefits	379	365
TOTAL LONG-TERM LIABILITIES	383	385
TOTAL LIABILITIES	3,328	4,443
COMMITMENTS (Note 6)
SHAREHOLDERS' EQUITY:
Ordinary Shares, NIS 0.16 par value - authorized: 50,000,000 Ordinary Shares as of June 30, 2016 and December 31, 2015; issued and outstanding: 30,661,632 and 30,639,134 Ordinary Shares as of June 30, 2016 and December 31, 2015, respectively	1,285	1,284
Additional paid-in capital	147,107	145,878
Accumulated deficit	(58,931)	(46,230)
Accumulated other comprehensive income (loss)	55	(130)
TOTAL SHAREHOLDERS' EQUITY	89,516	100,802
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 92,844	$ 105,245

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Ordinary shares, par value (in NIS per share)	₪ 0.16	₪ 0.16
Ordinary shares, shares authorized	50,000,000	50,000,000
Ordinary shares, shares issued	30,661,632	30,639,134
Ordinary shares, shares outstanding	30,661,632	30,639,134

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
REVENUES (Note 8)	$ 752	$ 109	$ 1,497	$ 557
COST OF REVENUES	12	13	43	36
GROSS PROFIT	740	96	1,454	521
OPERATING EXPENSES:
Research and development	6,734	2,795	10,300	4,915
Selling, general and administrative	2,128	2,023	3,838	3,395
TOTAL OPERATING EXPENSES	8,862	4,818	14,138	8,310
OPERATING LOSS	8,122	4,722	12,684	7,789
FINANCE EXPENSES (INCOME), net	14	(83)	(160)	(66)
LOSS BEFORE INCOME TAX	8,136	4,639	12,524	7,723
INCOME TAX	57	8	177	9
NET LOSS FOR THE PERIOD	$ 8,193	$ 4,647	$ 12,701	$ 7,732
LOSS PER SHARE BASIC AND DILUTED	$ 0.27	$ 0.18	$ 0.41	$ 0.30
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE IN THOUSANDS	30,661	25,917	30,658	25,837

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
NET LOSS	$ 8,193	$ 4,647	$ 12,701	$ 7,732
OTHER COMPREHENSIVE INCOME:
Net unrealized gains from marketable securities	(11)		(167)	(18)
Gains (losses) on marketable securities reclassified into net loss	2		4	(67)
Net unrealized losses (gains) on derivative financial instruments	52	(73)	(26)	(58)
Gains on derivative financial instruments reclassified into net loss			4
TOTAL OTHER COMPREHENSIVE LOSS (INCOME)	43	(73)	(185)	(143)
TOTAL COMPREHENSIVE LOSS	$ 8,236	$ 4,574	$ 12,516	$ 7,589

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary shares [Member]	Additional paid-in capital [Member]	Accumulated deficit [Member]	Accumulated other comprehensive income (loss) [Member]	Total
Balance at Dec. 31, 2014	$ 954	$ 77,600	$ (29,713)	$ (79)	$ 48,762
Balance (shares) at Dec. 31, 2014	22,443,934				22,443,934
Comprehensive loss			(7,732)	143	$ (7,589)
Issuance of Ordinary Shares through a public offering , net of $4,818 issuance costs (Note 5a)	$ 298	63,904			64,202
Issuance of Ordinary Shares through a public offering , net of $4,818 issuance costs (shares) (Note 5a)	7,419,353
Exercise of warrants	$ 21	2,109			2,130
Exercise of warrants (shares)	515,634
Exercise of options	$ 7	308			315
Exercise of options (shares)	163,850
Share-based compensation (Note 5c)		859			859
Balance at Jun. 30, 2015	$ 1,280	144,780	(37,445)	64	$ 108,679
Balance (shares) at Jun. 30, 2015	30,542,771				30,542,771
Balance at Dec. 31, 2015	$ 1,284	145,878	(46,230)	(130)	$ 100,802
Balance (shares) at Dec. 31, 2015	30,639,134				30,639,134
Comprehensive loss			(12,701)	185	$ (12,516)
Exercise of restricted share units	$ 1	(1)
Exercise of restricted share units (shares)	22,498
Share-based compensation (Note 5c)		1,230			1,230
Balance at Jun. 30, 2016	$ 1,285	$ 147,107	$ (58,931)	$ 55	$ 89,516
Balance (shares) at Jun. 30, 2016	30,661,632				30,661,632

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2015 USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 4,818

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS	$ 12,701	$ 7,732
Adjustments required to reconcile loss to net cash used in operating activities:
Depreciation and amortization	66	77
Changes in marketable securities and bank deposits, net	242	67
Changes in accrued liability for employee severance benefits, net of retirement fund profit	14	28
Share-based compensation	1,230	859
Non cash finance income, net	(2)	(43)
Changes in operating asset and liabilities:
Decrease (increase) in trade and other receivable	(342)	191
Increase (decrease) in accounts payable and accruals	(616)	771
Net cash used in operating activities	(12,109)	(5,782)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(216)	(149)
Investment in bank deposits	(13,000)	(28,025)
Investment in marketable securities	(700)	(46,762)
Proceeds from sale and maturity of marketable securities and bank deposits	27,725	6,028
Net cash provided by (used in) investing activities	13,809	(68,908)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares through a public offering, net of issuance costs		64,202
Proceeds from exercise of warrants		2,130
Proceeds from exercise of options		315
Payments in respect of BIRD loan	(476)
Payments in respect of bank borrowings	(16)	(16)
Net cash provided by (used in) financing activities	(492)	66,631
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,208	(8,059)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS	3	7
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	18,795	43,008
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	20,006	34,956
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS
Cashless exercise of warrants		4
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for taxes	119
Interest received	641
Interest paid	$ 239

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NATURE OF OPERATIONS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION:

a. Nature of operations

Foamix Pharmaceuticals Ltd. (hereinafter “Foamix”) is an Israeli company incorporated in 2003. Foamix is a clinical-stage specialty pharmaceutical company operating in one segment - the development and commercialization of foam-based formulations, using its proprietary technology, which includes its foam platforms. Foamix develops its own product candidates, mainly for the treatment of moderate-to-severe acne and other skin conditions. It also licenses its technology under development and licensing agreements to various pharmaceutical companies for development of certain products combining Foamix's foam technology with the licensee’s proprietary drugs.

Since incorporation through June 30, 2016, Foamix and its subsidiary (hereinafter “the Company”) incurred losses and negative cash flows from operations mainly attributable to its development efforts and has an accumulated deficit of $58,931. The Company has financed its operations mainly through the issuance of shares through private and public financing rounds, convertible loans and payments received under development and licensing agreements. The Company's cash, cash equivalents, deposits and marketable securities as of June 30, 2016, will allow the Company to fund its operating plan through at least the next 12 months. However, the Company expects to continue to incur significant research and development and other expenses related to its ongoing operations and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable. If the Company is unable to obtain such funding it will need to curtail or cease operations.

b. Basis of presentation

The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2016, the consolidated results of operations and comprehensive loss for the three and six-month periods ended June 30, 2016 and 2015, the consolidated changes in shareholders’ equity and cash flows for the six-month periods ended June 30, 2016 and 2015.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual financial statements for the year ended December 31, 2015. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements for the year ended December 31, 2015, but does not include all disclosures required by U.S. GAAP.

The results for the three and six-month periods ended June 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

a. Principles of consolidation

The consolidated financial statements include the accounts of Foamix and its subsidiary. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

b. Bank depositsBank deposits with original maturity dates of more than three months but less than one year are included in short-term deposits. Bank deposits with maturity of more than one year are considered long-term. The interest rates on the Company’s deposits range between 1.32%-1.6%. The fair value of bank depositsapproximates the carrying value since they bear interest at rates closeto the prevailing market rates.

c. Marketable securitiesThe Company invests in debt and equity securities classified as available for sale in accordance with ASC 320, Investments - Debt and Equity Securities.

Management determines the appropriate classification of its investments in securities at the time of purchase and reevaluates such determinations at each balance sheet date. Classifications of debt securities in the balance sheet are determined based on the maturity date of the securities.

Unrealized gains of available for sale securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for both debt and equity securities are included in financial expense, net.

For equity securities, the Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income or loss.

d. Derivatives

The Company purchases foreign exchange derivative financial instruments (written and purchased currency options). The transactions are designed to hedge the Company’s currency exposure.

The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheet at their fair value. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of other comprehensive income or loss and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings.

For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging.

e. Newly issued and recently adopted accounting pronouncements:

1) In May 2014, the FASB issued ASU No. 2014-09,Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity’s revenue recognition. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April and May 2016, the FASB issued ASU No. 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensingand ASU 2016-12,Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

2) In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10)." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. It is effective for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements.

3) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

4) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

5) In June 2016, the FASB issued ASU No. 2016-13,“Measurement of Credit Losses on Financial Instruments.”This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

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FAIR VALUE PRESENTATION

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE PRESENTATION

NOTE 3 - FAIR VALUE PRESENTATION

Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.

The Company’s assets and liabilities that are measured at fair value as of June 30, 2016 and December 31, 2015 are classified in the tables below in one of the three categories described above:

	June 30, 2016
	Level 1			Level 2				Total
Marketable securities		$	954		$	41,803			$	42,757
Currency options designated as hedging instruments			-		$	17			$	17
	December 31, 2015
	Level 1			Level 2				Total
Marketable securities		$	1,977		$	54,770			$	56,747
Currency options designated as hedging instruments (current liability)			-		$	(5	)		$	(5	)

Foreign exchange risk management

The Company purchases and writes non-functional currency options in order to hedge the currency exposure on the Company’s cash flow. The currency hedged items are denominated in New Israeli Shekel (NIS). The purchasing and writing of options is part of a comprehensive currency hedging strategy. These transactions are at zero cost for periods of up to one year. The counterparties to the derivatives are major banks in Israel.

During February 2015, the Company began purchasing and writing options in respect of salary, rent and other expenses dominated in NIS for a period of up to a year ahead. These transactions qualify for cash flow hedge accounting. During the six months ended June 30, 2016 the Company recorded income in the amount of $4 in operating expenses relating to hedge transaction.

As of June 30, 2016 the total hedged amount was NIS 12.3 million.

As of June 30, 2016, the Company has a lien in the amount of $761 on the Company’s marketable securities in respect of bank guarantees granted in order to secure the hedging transactions.

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MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

NOTE 4 - MARKETABLE SECURITIES

Marketable securities as of June 30, 2016 consist mainly of debt and equity securities. These securities are classified as available-for-sale and are recorded at fair value. Changes in fair value, net of taxes (if applicable), are reflected in other comprehensive loss. Realized gains and losses on sales of the securities, as well as premium or discount amortization, are included in the consolidated statement of operations as finance income or expenses.

The following table sets forth the Company’s marketable securities:

	June 30,		December 31,
	2016		2015
Israeli mutual funds	$	954	$	1,977
Certificates of deposit		28,126		35,627
Municipal and agency bonds		13,677		19,143
Total	$	42,757	$	56,747

As at June 30, 2016 and December 31, 2015 the fair value, cost and gross unrealized holding gains of the securities owned by the Company were as follows:

	June 30, 2016
	Fairvalue		Cost or Amortized cost		Gross unrealizedholding losses		Gross unrealizedholding gains
Israeli mutual funds	$	954	$	952		-	$	2
Certificates of deposit		28,126		28,096		4		34
Municipal and agency bonds		13,677		13,671		2		8
Total	$	42,757	$	42,719	$	6	$	44

	December 31, 2015
	Fairvalue		Cost or Amortized cost		Gross unrealizedholding losses		Gross unrealizedholding gains
Israeli mutual funds	$	1,977	$	1,978	$	3	$	2
Certificates of deposit		35,627		35,703		79		3
Municipal and agency bonds		19,143		19,191		49		1
Total	$	56,747	$	56,872	$	131	$	6

As of June 30, 2016 the unrealized losses attributed to the Company’s marketable securities were primarily due to credit spreads and interest rate movements. The Company has considered factors regarding other than temporary impaired securities and determined that there are no securities with impairment that is other than temporary as of June 30, 2016 and December 31, 2015.

As of June 30, 2016, and December 31, 2015 the Company’s debt securities had the following maturity dates:

	Market value
	June 30, 2016		December 31, 2015
Due within one year	$	27,203	$	22,485
1 to 2 years		12,288		27,046
2 to 3 years		2,312		5,239
Total	$	41,803	$	54,770

Refer to note 3 and note 6 regarding the liens on the Company’s marketable securities.

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SHARE CAPITAL

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

SHARE CAPITAL

NOTE 5 - SHARE CAPITAL:

a. Public offering

On April 20, 2015 the Company completed a follow-on public offering. A total of 7,419,353 ordinary shares were sold at a price of $9.30 per share. Prior to closing, the underwriters fully exercised their option to purchase 967,741 additional ordinary shares. The net proceeds from the sale of shares, after deducting underwriting discounts, commissions and other offering expenses, were approximately $64.2 million.

b. Warrants

No warrants have been exercised during the six-months ending June 30, 2016. As of June 30 2016, the total amount of warrants outstanding was 2,064,937.

c. Share-based compensation

In May 2015, the Company's board of directors approved a new option plan (the "Plan") replacing the previous plan approved in 2009. The Plan included a pool of 2,690,694 ordinary shares for grant to Company employees, consultants, directors and other service providers. As of June 30 2016, 989,858 shares remain available for grant under the Plan.

In the six months ended June 30, 2016 and 2015, the Company granted options to employees and non-employees as follows:

	Six month ended June 30,
	2016
	Award amount		Exercise price range		Vesting period	Expiration
Employees:
Options		615,310	$	6.04-$6.66	4 years	10 years
RSUs		5,000		-	4 years		-
Consultants -
options		4,800	$	6.34	4 years	10 years

	Six month ended June 30,
	2015
	Award amount		Exercise price range		Vesting period	Expiration
Employees -
options		153,000	$	6.77	4 years	10 years
RSUs		189,000		-	4 years		-
Directors-
options		24,000	$	11.87	3 years	10 years
Consultants -
RSUs		83,000		-	4 years		-

The fair value of options and RSUs granted to employees and directors during the six months ended June 30, 2016 and 2015 was $2,049 and $3,422 respectively. The fair value of options granted to consultants during the six months ended June 30, 2016 was $23.

The fair value of RSUs granted to employees is based on the share price on grant date.

The fair value of options granted to employees and directors on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	Six months ended June 30
	2016			2015
Value of ordinary share	$	5.90-$6.84		$	7.53-$11.99
Dividend yield		0	%		0	%
Expected volatility*		60.3%-60.5	%		63.4%-64.9	%
Risk-free interest rate		1.36%-1.52	%		1.38%-1.98	%
Expected term	6 years			6 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

The fair value of options granted to consultants as of June 30, 2016 was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	June 30, 2016
Value of ordinary share	$	6.52
Dividend yield		0	%
Expected volatility*		69.2	%
Risk-free interest rate		1.78	%
Expected term	10 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

    The following table illustrates the effect of share-based compensation on the statements of operations:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Cost of revenues	$	3	$	1	$	1	$	-
Research and development expenses		464		263		252		232
Selling, general and administrative		763		595		444		475
	$	1,230	$	859	$	697	$	707

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COMMITMENTS

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

NOTE 6 - COMMITMENTS

Lease agreement

The Company leases office space for its headquarters and research and development facilities in Israel and the United States of America under several lease agreements. The lease agreements for the facilities in Israel are linked to the Israeli CPI and expire between December 2016 and December 2020. The lease agreement in the United States is due to expire during August 2017.

Rental expenses for the three and six months ended June 30, 2016 and 2015, are as follows:

		Six months ended June 30				Three months ended June 30
		2016		2015		2016		2015
Rental expenses	$	174	$	176	$	73	$	87

Future minimum lease commitments under non-cancelable operating lease agreements are as follows:

2016	$	155
2017		613
2018		554
2019 and thereafter		1,112
Total	$	2,434

The Company has a lien in the amount of $193 on the Company’s marketable securities in respect of bank guarantees granted in order to secure the lease agreements.

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RELATED PARTIES - TRANSACTIONS AND BALANCES

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

RELATED PARTIES - TRANSACTIONS AND BALANCES:

NOTE 7 - RELATED PARTIES - TRANSACTIONS AND BALANCES:

a. Transactions with related parties

Related parties include the Chairman of the Board of Directors and the Chief Executive Officers of the Company.

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Expenses:
Payroll expenses	$	271	$	641	$	218	$	316
Directors fee	$	155	$	172	$	87	$	74

b. Balances with related parties -

	June 30,		December 31,
	2016		2015
Accounts payable and accruals	$	174	$	636

As of June 30, 2016 there were 600,875 outstanding options and RSUs granted to related parties, with an average exercise price of $4.3. See note 5c.

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ENTITY-WIDE DISCLOSURE

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

ENTITY-WIDE DISCLOSURE

NOTE 8 - ENTITY-WIDE DISCLOSURE:

a. Net revenues by geographic area were as follows:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
United States	$	14	$	557		-	$	109
Germany		1,434		-		752		-
France		49		-		-		-
Total revenues	$	1,497	$	557	$	752	$	109

b. Revenues from principal customers - revenues from single customers that exceed 10% of total revenues in the relevant period:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Customer A		-	$	72		-	$	22
Customer B		14		350		-		86
Customer C		-		135		-		1
Customer D		1,434		-		752		-

c. Net revenues by type of payment:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Development service payments	$	63	$	557		-	$	109
Royalties		1,434		-		752		-
Total revenues	$	1,497	$	557	$	752	$	109

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Principles of consolidation

a. Principles of consolidation

The consolidated financial statements include the accounts of Foamix and its subsidiary. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

Bank deposits

b. Bank depositsBank deposits with original maturity dates of more than three months but less than one year are included in short-term deposits. Bank deposits with maturity of more than one year are considered long-term. The interest rates on the Company’s deposits range between 1.32%-1.6%. The fair value of bank depositsapproximates the carrying value since they bear interest at rates closeto the prevailing market rates.

Marketable securities

c. Marketable securitiesThe Company invests in debt and equity securities classified as available for sale in accordance with ASC 320, Investments - Debt and Equity Securities.

Management determines the appropriate classification of its investments in securities at the time of purchase and reevaluates such determinations at each balance sheet date. Classifications of debt securities in the balance sheet are determined based on the maturity date of the securities.

Unrealized gains of available for sale securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for both debt and equity securities are included in financial expense, net.

For equity securities, the Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income or loss.

Derivatives

d. Derivatives

The Company purchases foreign exchange derivative financial instruments (written and purchased currency options). The transactions are designed to hedge the Company’s currency exposure.

The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheet at their fair value. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of other comprehensive income or loss and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings.

For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging.

Newly issued and recently adopted accounting pronouncements

e. Newly issued and recently adopted accounting pronouncements:

1) In May 2014, the FASB issued ASU No. 2014-09,Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity’s revenue recognition. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April and May 2016, the FASB issued ASU No. 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensingand ASU 2016-12,Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

2) In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10)." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. It is effective for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements.

3) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

4) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

5) In June 2016, the FASB issued ASU No. 2016-13,“Measurement of Credit Losses on Financial Instruments.”This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements.

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FAIR VALUE PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

The Company’s assets and liabilities that are measured at fair value as of June 30, 2016 and December 31, 2015 are classified in the tables below in one of the three categories described above:

	June 30, 2016
	Level 1			Level 2				Total
Marketable securities		$	954		$	41,803			$	42,757
Currency options designated as hedging instruments			-		$	17			$	17
	December 31, 2015
	Level 1			Level 2				Total
Marketable securities		$	1,977		$	54,770			$	56,747
Currency options designated as hedging instruments (current liability)			-		$	(5	)		$	(5	)

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MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

The following table sets forth the Company’s marketable securities:

	June 30,		December 31,
	2016		2015
Israeli mutual funds	$	954	$	1,977
Certificates of deposit		28,126		35,627
Municipal and agency bonds		13,677		19,143
Total	$	42,757	$	56,747

Schedule of the fair value, cost and gross unrealized holding gains of the securities owned

As at June 30, 2016 and December 31, 2015 the fair value, cost and gross unrealized holding gains of the securities owned by the Company were as follows:

	June 30, 2016
	Fairvalue		Cost or Amortized cost		Gross unrealizedholding losses		Gross unrealizedholding gains
Israeli mutual funds	$	954	$	952		-	$	2
Certificates of deposit		28,126		28,096		4		34
Municipal and agency bonds		13,677		13,671		2		8
Total	$	42,757	$	42,719	$	6	$	44

	December 31, 2015
	Fairvalue		Cost or Amortized cost		Gross unrealizedholding losses		Gross unrealizedholding gains
Israeli mutual funds	$	1,977	$	1,978	$	3	$	2
Certificates of deposit		35,627		35,703		79		3
Municipal and agency bonds		19,143		19,191		49		1
Total	$	56,747	$	56,872	$	131	$	6

Schedule of maturity dates of debt securities

As of June 30, 2016, and December 31, 2015 the Company’s debt securities had the following maturity dates:

	Market value
	June 30, 2016		December 31, 2015
Due within one year	$	27,203	$	22,485
1 to 2 years		12,288		27,046
2 to 3 years		2,312		5,239
Total	$	41,803	$	54,770

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SHARE CAPITAL (Tables)

6 Months Ended

Jun. 30, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of options granted to employees and non-employees

In the six months ended June 30, 2016 and 2015, the Company granted options to employees and non-employees as follows:

	Six month ended June 30,
	2016
	Award amount		Exercise price range		Vesting period	Expiration
Employees:
Options		615,310	$	6.04-$6.66	4 years	10 years
RSUs		5,000		-	4 years		-
Consultants -
options		4,800	$	6.34	4 years	10 years

	Six month ended June 30,
	2015
	Award amount		Exercise price range		Vesting period	Expiration
Employees -
options		153,000	$	6.77	4 years	10 years
RSUs		189,000		-	4 years		-
Directors-
options		24,000	$	11.87	3 years	10 years
Consultants -
RSUs		83,000		-	4 years		-

Schedule of Share-based Compensation

    The following table illustrates the effect of share-based compensation on the statements of operations:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Cost of revenues	$	3	$	1	$	1	$	-
Research and development expenses		464		263		252		232
Selling, general and administrative		763		595		444		475
	$	1,230	$	859	$	697	$	707

Consultants and Other Service Providers [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Underlying Data Used for Computing the Fair Value of the Options

The fair value of options granted to consultants as of June 30, 2016 was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	June 30, 2016
Value of ordinary share	$	6.52
Dividend yield		0	%
Expected volatility*		69.2	%
Risk-free interest rate		1.78	%
Expected term	10 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

Employees and Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Underlying Data Used for Computing the Fair Value of the Options

The fair value of options granted to employees and directors on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:

	Six months ended June 30
	2016			2015
Value of ordinary share	$	5.90-$6.84		$	7.53-$11.99
Dividend yield		0	%		0	%
Expected volatility*		60.3%-60.5	%		63.4%-64.9	%
Risk-free interest rate		1.36%-1.52	%		1.38%-1.98	%
Expected term	6 years			6 years

* The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

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COMMITMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Rent Expense

Rental expenses for the three and six months ended June 30, 2016 and 2015, are as follows:

		Six months ended June 30				Three months ended June 30
		2016		2015		2016		2015
Rental expenses	$	174	$	176	$	73	$	87

Schedule of Future Minimum Lease Commitments

Future minimum lease commitments under non-cancelable operating lease agreements are as follows:

2016	$	155
2017		613
2018		554
2019 and thereafter		1,112
Total	$	2,434

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RELATED PARTIES - TRANSACTIONS AND BALANCES: (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Schedule of Transactions with Related Parties

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Expenses:
Payroll expenses	$	271	$	641	$	218	$	316
Directors fee	$	155	$	172	$	87	$	74

Schedule of Balances with Related Parties

	June 30,		December 31,
	2016		2015
Accounts payable and accruals	$	174	$	636

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ENTITY-WIDE DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Schedule of Net Revenues by Geographic Area

Net revenues by geographic area were as follows:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
United States	$	14	$	557		-	$	109
Germany		1,434		-		752		-
France		49		-		-		-
Total revenues	$	1,497	$	557	$	752	$	109

Schedule of Revenues from Principal Customers

Revenues from principal customers - revenues from single customers that exceed 10% of total revenues in the relevant period:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Customer A		-	$	72		-	$	22
Customer B		14		350		-		86
Customer C		-		135		-		1
Customer D		1,434		-		752		-

Schedule of Net Revenues by Payment Type

Net revenues by type of payment:

	Six months ended June 30				Three months ended June 30
	2016		2015		2016		2015
Development service payments	$	63	$	557		-	$	109
Royalties		1,434		-		752		-
Total revenues	$	1,497	$	557	$	752	$	109

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NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 58,931	$ 46,230
Minimum period for which Company's cash, cash equivalents, bank deposits and marketable securities will allow to fund its operating plan	12 months

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SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016
Deposits [Abstract]
Bank deposits interest rate, minimum	1.32%
Bank deposits interest rate, maximum	1.60%

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FAIR VALUE MEASURMENTS (Schedule of Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 42,757	$ 56,747
Currency options designated as hedging instruments (current liability)	17	(5)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	954	1,977
Currency options designated as hedging instruments (current liability)
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	41,803	54,770
Currency options designated as hedging instruments (current liability)	$ 17	$ (5)

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FAIR VALUE MEASURMENTS (Narrative) (Details) - 6 months ended Jun. 30, 2016 $ in Thousands, ₪ in Millions	USD ($)	ILS (₪)
Fair Value Disclosures [Abstract]
Currency hedging transactions, maximum term	1 year
Foreign exchange risk lien	$ 761
Total hedged amount | ₪		₪ 12.3
Amount recognized in income relating to cash flow hedge transaction	$ 4

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MARKETABLE SECURITIES (Schedule of Marketable Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fair value	$ 42,757	$ 56,747
Israeli mutual funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	954	1,977
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	28,126	35,627
Municipal and agency bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	$ 13,677	$ 19,143

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MARKETABLE SECURITIES (Schedule of Fair Value, Cost or Amortized Cost, and Gross Unrealized Holding Gains and Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fair value	$ 42,757	$ 56,747
Gross unrealized holding losses	6	131
Gross unrealized holding gains	44	6
Cost or Amortized cost	42,719	56,872
Israeli mutual funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	954	1,977
Gross unrealized holding losses		3
Gross unrealized holding gains	2	2
Cost or Amortized cost	952	1,978
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	28,126	35,627
Gross unrealized holding losses	4	79
Gross unrealized holding gains	34	3
Cost or Amortized cost	28,096	35,703
Municipal and agency bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value	13,677	19,143
Gross unrealized holding losses	2	49
Gross unrealized holding gains	8	1
Cost or Amortized cost	$ 13,671	$ 19,191

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MARKETABLE SECURITIES (Schedule of Maturity Dates of Debt Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Due within one year	$ 27,203	$ 22,485
1 to 2 years	12,288	27,046
2 to 3 years	2,312	5,239
Total	$ 41,803	$ 54,770

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SHARE CAPITAL (Narrative - Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		6 Months Ended		12 Months Ended
	Apr. 20, 2015	Apr. 19, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Class of Stock [Line Items]
Proceeds from issuance from secondary offering				$ 64,202	$ 64,202
Warrant [Member]
Class of Stock [Line Items]
Warrants outstanding			2,064,937
Warrants exercised
Secondary Offering [Member] | Ordinary shares [Member]
Class of Stock [Line Items]
Number of shares issued	7,419,353	967,741
Share price	$ 9.30

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SHARE CAPITAL (Narrative - Share-based Compensation ) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	May 31, 2015
New option plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	989,858
Number of shares authorized under the plan			2,690,694
Share Options [Member] | Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options and RSUs granted	$ 2,049	$ 3,422
Share Options [Member] | Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options and RSUs granted	$ 23

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SHARE CAPITAL (Schedule of Options Granted to Employees and Non-employees) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share Options [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	615,310	153,000
Exercise price range, minimum	$ 6.04
Exercise price range, maximum	$ 6.66	$ 6.77
Vesting period	4 years	4 years
Exercisable period	10 years	10 years
Share Options [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount		24,000
Exercise price range, maximum		$ 11.87
Vesting period		3 years
Exercisable period		10 years
Share Options [Member] | Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	4,800
Exercise price range, maximum	$ 6.34
Vesting period	4 years
Exercisable period	10 years
RSUs [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	5,000	189,000
Vesting period	4 years	4 years
RSUs [Member] | Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount		83,000
Vesting period		4 years

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SHARE CAPITAL (Schedule of Underlying Data Used for Computing the Fair Value of the Options) (Details) - Share Options [Member] - Employees and Directors [Member] - $ / shares		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		0.00%	0.00%
Expected volatility, minimum	[1]	60.30%	63.40%
Expected volatility, maximum	[1]	60.50%	64.90%
Risk-free interest rate, minimum		1.36%	1.38%
Risk-free interest rate, maximum		1.52%	1.98%
Expected term		6 years	6 years
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of ordinary share		$ 5.90	$ 7.53
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of ordinary share		$ 6.84	$ 11.99

[1] The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

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SHARE CAPITAL (Schedule of Underlying Data Used for Computing the Fair Value of the Options for consultant) (Details) - Share Options [Member] - Consultants [Member]	6 Months Ended
	Jun. 30, 2016 $ / shares
Value of ordinary share	$ 6.52
Dividend yield	0.00%
Expected volatility	69.20%	[1]
Risk-free interest rate	1.78%
Expected term	10 years

[1] The volatility is based on historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model.

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SHARE CAPITAL (Schedule of Share-based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 697	$ 707	$ 1,230	$ 859
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	1		3	1
Research and development expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	252	232	464	263
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 444	$ 475	$ 763	$ 595

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COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rental expenses	$ 73	$ 87	$ 174	$ 176
Lien amount in respect of bank guarantees granted in order to secure the lease agreements	$ 193		$ 193

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COMMITMENTS (Schedule of Future Minimum Lease Commitments) (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016	$ 155
2017	613
2018	554
2019 and thereafter	1,112
Total	$ 2,434

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RELATED PARTIES - TRANSACTIONS AND BALANCES: (Narrative) (Details) - Stock Options and RSUs [Member]	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Outstanding options and RSUs | shares	600,875
Average exercise price | $ / shares	$ 4.30

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RELATED PARTIES - TRANSACTIONS AND BALANCES: (Schedule of Transactions with Related Parties) (Details) - Board of Directors and the Chief Executive Officer [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Payroll expenses	$ 218	$ 316	$ 271	$ 641
Director fee	$ 87	$ 74	$ 155	$ 172

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RELATED PARTIES - TRANSACTIONS AND BALANCES: (Schedule of Balances with Related Parties) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Accounts payable and accruals	$ 174	$ 636

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ENTITY-WIDE DISCLOSURE (Schedule of Net Revenues by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 752	$ 109	$ 1,497	$ 557
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues		109	14	557
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	752		1,434
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues			$ 49

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ENTITY-WIDE DISCLOSURE (Schedule of Revenues From Principal Customers) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Major Customer [Line Items]
Total revenues	$ 752	$ 109	$ 1,497	$ 557
Revenue [Member] | Customers [Member] | Customer A [Member]
Revenue, Major Customer [Line Items]
Total revenues		22		72
Revenue [Member] | Customers [Member] | Customer B [Member]
Revenue, Major Customer [Line Items]
Total revenues		86	14	350
Revenue [Member] | Customers [Member] | Customer C [Member]
Revenue, Major Customer [Line Items]
Total revenues		1		135
Revenue [Member] | Customers [Member] | Customer D [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 752		$ 1,434

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ENTITY-WIDE DISCLOSURE (Schedule of Net Revenues by Payment Type) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Major Customer [Line Items]
Total revenues	$ 752	$ 109	$ 1,497	$ 557
Revenue [Member] | Development service payments [Member]
Revenue, Major Customer [Line Items]
Total revenues		109	63	557
Revenue [Member] | Royalties [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 752		$ 1,434