NOTE 7:- SHAREHOLDERS’ EQUITY (DEFICIT)

a.On March 1, 2015, the Company affected a 7.75 for 1 forward split of its Ordinary Shares, by way of issuance and distribution of bonus shares without a change in nominal value of the Company’s outstanding Ordinary Shares.

For accounting purposes, this transaction was recorded as a share split and accordingly, all Shares, warrants to purchase Convertible Preferred Shares, options to purchase Ordinary Shares and loss per share amounts have been adjusted to give retroactive effect to this Share Split for all periods presented in these consolidated financial statements. Any fractional shares resulting from the Share Split will be rounded up to the nearest whole share.

b.On January 24, 2015, the Company signed an addendum to the Series E Preferred Share purchase agreement to raise additional funds of $11,406, net of fees and expenses. Under the addendum, the Company issued 1,445,966 Series E Convertible Preferred Shares to its existing and new investors for a price of $8.49 per share.

c.As described in Note 1c, on March 19, 2015, the Company completed its IPO by raising gross consideration of $40 million for issuance of 4,700,000 Ordinary Shares for a price of $8.50 per share. The issuance costs in respect of the IPO transaction amounted to $5.2 million.

d.Stock based compensation:

On June 18, 2009, a Stock Option Plan (the “2009 Plan”) was adopted by the Board of Directors of the Company, under which options to purchase up to 55,971 Ordinary Shares have been reserved. Such pool was increased over the years and as of December 31, 2014, options to purchase up to 978,655 Ordinary Shares were authorized. The 2009 Plan was adopted in accordance with the amended sections 102 and 3(i) of Israel’s Income Tax Ordinance. Under the 2009 Plan, options to purchase Ordinary Shares of the Company may be granted to employees, advisors, directors, consultants and service providers of the Company or any subsidiary or affiliate. The default vesting schedule is up to three years, subject to the continuation of employment or service. Each option may be exercised into Ordinary Shares during a period of seven years from the date of grant, unless a different term is provided in the option agreement. On April 30, 2013, the 2013 Stock Incentive Sub Plan (the “2013 Sub Plan”) was adopted by the Board of Directors of the Company, which set forth the terms for the grant of stock awards to Inc.’s employees or US non employees. On January 25, 2015, the Board of Directors reserved an additional 1,072,879 Ordinary Shares out of its authorized and unissued share capital for future option grants under the 2009 Plan. On January 24, 2015, the Company’s Board of Directors approved grants to employees of 248,798 options to purchase ordinary shares at an exercise price of $5.84 per share. At March 31, 2015, the Company has 882,597 Ordinary Shares available for future grant under the 2009 Plan.

On February 20, 2015, the Board of Directors approved the replacement of the 2009 Plan and 2013 Sub Plan by adopting the Amended and Restated 2009 Stock Incentive Plan. This action was approved the shareholders on March 1, 2015.

Transactions related to the grant of options to employees under the Amended and Restated 2009 Stock Incentive Plan during the three months ended March 31, 2015 (unaudited), were as follows:

	Number of		Weighted average exercise price	Weighted average remaining contractual life	Aggregate intrinsic value
	options		$	(years)	$
Options outstanding at January 1, 2015	919,744		3.54	5.67	2,183
Options granted during quarter	248,798		5.84
Options exercised during quarter	(51,716	)	2.86
Options outstanding at end of quarter	1,116,826		4.06	5.72	4,880
Options vested and expected to be vested at end of quarter	1,089,656		4.81	5.76	4,806
Exercisable at end of quarter	404,884		5.47	4.74	2,005

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the deemed fair value of the Company’s ordinary shares on the last day of the quarter ending March 31, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2015. This amount is impacted by the changes in the fair market value of the Company’s shares.

The weighted average grant date fair value of options granted during the three months ended March 31, 201.5 was $2.86

As of March 31, 2015, the total unrecognized estimated compensation cost related to non-vested stock options granted prior to that date was $1,281, which is expected to be recognized over a weighted average period of approximately 3.29 years.

On July 7, 2014, the Company’s Board of Directors approved to reduce the exercise price of all outstanding options which were previously granted to certain employees at an exercise price which exceeded $3.61 per share down to $3.61 per share, representing the underlying fair value of the Ordinary Share at that date. The Company accounted for the reduction of the options’ exercise price pursuant to ASC 718 as a modification. Accordingly, additional compensation of $49 was calculated as the fair value of the modified award in excess of the fair value of the original award measured immediately before its terms have been modified based on current circumstances and recorded incremental fair value as an immediate or future expense based on the vesting schedule of the relevant options. During the year ended December 31, 2014, the Company recorded out of the aforementioned amount compensation cost of $44 as result of the above modification. During the three months ended March 31, 2015, the Company recorded additional $ 2.5 as result of the above modification.

The total compensation cost related to all of the Company’s equity-based awards, recognized during the three months ended March 31, 2015 and 2014 (unaudited) was comprised as follows:

	Three months ended March 31,
	2015		2014
Research and development	$	24	$	—
Marketing	4		—
General and administrative	63		2

	$	91	$	2