NOTE 5: - SHAREHOLDERS’ EQUITY

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 were 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. 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. 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 February 20, 2015, the Company’s Board of Directors approved the replacement of the 2009 Plan and 2013 Sub Plan by adopting the Amended and Restated 2009 Stock Incentive Plan (the “Amended 2009 Plan”). This action was approved by the shareholders on March 1, 2015. Under the Amended 2009 Plan, each option may be exercised into Ordinary Shares during a period of ten years from the date of grant, unless a different term is provided in the option agreement.

Transactions related to the grant of options to employees and directors under the Amended 2009 Stock Plan during the nine months ended September 30, 2017 (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, 2017	1,689,555		4.02	6.06	(*	)
Options granted	113,107		4.60
Options exercised	(32,910	)	3.61
Options forfeited	(5,178	)	3.96


Options outstanding at end of the period	1,764,574		4.06	5.65	214


Options vested at end of the period	1,220,705		4.17	4.39	80

(*) Represent amount less than $1.

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 nine months period ended September 30, 2017 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 September 30, 2017. This amount is impacted by the changes in the fair market value of the Company’s shares.

As of September 30, 2017, the Company has 1,002,882 Ordinary Shares available for future grant under the Amended 2009 Plan.

As of September 30, 2017, the total unrecognized estimated compensation cost related to non-vested stock options granted prior to that date was $1,178, which is expected to be recognized over a weighted average period of approximately 1.83 years.

The total compensation cost related to all of the Company’s equity-based awards, recognized during the nine months period ended September 30, 2017 and 2016 (unaudited) was comprised as follows:

The following table presents the assumptions used to estimate the fair values of the options granted in the period presented:

	Nine months ended
	September 30, 2017

Risk-free interest rate	2.07	%
Volatility	86.4	%
Expected life (in years)	5.87
Dividend yield	0	%

	Nine months ended September 30,
	2017		2016
	Unaudited

Research and development	$	153	$	90
Sales and marketing	48		5
General and administrative	519		504

	$	720	$	599