NOTE 5 - SHARE CAPITAL:

Authorized shares

On April 10, 2019, the Company’s shareholders approved an increase of the Company’s authorized Ordinary Shares from 90,000,000 shares previously approved to 135,000,000 shares, NIS 0.16 per share.

Share based compensation

Equity incentive plan:

On April 10, 2019, the Company's shareholders approved a new equity incentive plan (the "Plan") replacing the previous plans approved in 2015 and 2009. The Plan included a pool of 6,027,990 Ordinary Shares for grant to Company employees, consultants, directors and other service providers. As of June 30, 2019, 5,525,416 shares remain available for grant under the Plan.

Employee Share Purchase Plan:

On April 10, 2019 the Company’s shareholders approved an employee share purchase plan (“ESPP”) pursuant to which qualified employees (as defined in the ESPP) may elect to purchase designated shares of the Company’s Ordinary Shares at a price equal to 85% of the lesser of the fair market value of Ordinary Shares at the beginning or end of each semi-annual share purchase period (“Purchase Period”). Employees are permitted to purchase the number of shares purchasable with up to 15% of the earnings paid (as such term is defined in the ESPP) to each of the participating employees during the Purchase Period, subject to certain limitations under Section 423 of the US Internal Revenue Code.

The number of Ordinary Shares initially reserved for purchase under the ESPP was 5,400,000 Ordinary Shares. As of June 30, 2019, the Company has not issued any shares pursuant to the ESPP.

In the six months ended June 30, 2019 and 2018, the Company granted options and RSUs as follows:

	Six months ended June 30, 2019
	Award amount	Exercise price range	Vesting period	Expiration
Employees:
Options	1,030,236	$2.66-$3.81	4 years	10 years
RSUs	274,628	-	4 years	-

Directors:
Options	247,060	$2.66	1 years	10 years
RSUs	140,976	-	1 years	-

	Six months ended June 30, 2018
	Award amount	Exercise price range	Vesting period	Expiration
Employees:
Options	571,530	$5.06-$6.40	4 years	10 years
RSUs	126,844	-	4 years	-

Directors:
Options	174,373	$5.02-$5.06	1 years	10 years
RSUs	14,829	-	3 years	-

The fair value of options and RSUs granted to employees during the six months ended June 30, 2019, and the six months ended June 30, 2018 was $3,687 and $3,287, respectively.

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

The fair value of options granted was computed, as of the grant date, 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
	2019			2018
Value of ordinary share	$	2.66-$3.83		$	5.12-$5.99
Dividend yield		0	%		0	%
Expected volatility		60.40%-61.40	%		62.10%-62.60	%
Risk-free interest rate		2.20%-2.62	%		2.75%-2.84	%
Expected term	6 years			6 years

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
	2019		2018		2019		2018
Research and development expenses	$	738	$	1,303	$	384	$	412
Selling, general and administrative		1,599		1,651		1,004		788
	$	2,337	$	2,954	$	1,388	$	1,200