NOTE 6:—WARRANTS TO PURCHASE ORDINARY SHARES

The Company accounted for the warrants, described in note 9, according to the provisions of ASC 480 "Distinguishing Liabilities from Equity" and ASC 815-40, "Derivatives and Hedging—Contracts in Entity's Own Equity" and due to certain terms and conditions, the warrants are classified as a liability. The warrants are measured using the following assumptions of the Monte Carlo option pricing model. On May 25, 2017, 1,351,766 warrants, that were issued on August 2016, were exercised into ordinary shares for cash proceeds of $4,866 and the fair value of the warrants in the amount of $5,177 were reclassified from liability to equity.

Warrants issued on August 2016:

	December 31, 2017	May 25, 2017	December 31, 2016
Risk-free interest rate(1)	1.30% - 2.05%	1.65%	1.5% - 1.84%
Expected volatility(2)	57.1% - 77.6%	65.6% - 85%	65.5% - 85.5%
Expected life (in years)(3)	3.59	4.19	3.14 - 4.59
Expected dividend yield(4)	0%	0%	0%
Fair value per warrant:	1.60	3.83	1.08

Warrants issued on April 2017:

	December 31, 2017	April 25, 2017
Risk-free interest rate(1)	1.68% - 2.12%	1.82% - 1.87%
Expected volatility(2)	76.3% - 82.4%	65.7% - 80.7%
Expected life (in years)(3)	4.32	4.73 - 5
Expected dividend yield(4)	0%	0%
Fair value per warrant:	1.20	2.78


(1)	Risk free interest rate based on yield rates of non-index linked U.S. Federal Reserve treasury bonds.
(2)	Expected volatility was calculated based on actual historical share price movements of companies in the same industry over a term that is equivalent to the expected term of the warrants.
(3)	Expected life was based on the contractual term of the warrants.
(4)	Expected dividend yield was based on the fact that the Company has not paid dividends to its shareholders in the past and does not expect to pay dividends to its shareholders in the future.

The Company re-measured these warrants at fair value as of the exercise date, May 25, 2017 and as of December 31, 2017 and consequently, during the year ended December 31, 2017, the Company recorded $2,448 as a financial expense as a result of increase in the warrants' fair value. Total fair value of the liability related to warrants as of December 31, 2017, is $11,343.