Equity | 9 Months Ended |
Sep. 30, 2014 |
Equity [Abstract] | ' |
Equity | ' |
Note 9 – Equity |
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A. | Stock option plans | | | | | | | | | | | | | | | | | | | | | | | |
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| On June 17, 2014, the Company's Board of Directors approved a further increase of 750,000 options to be reserved under the Company's share option plan. | | | | | | | | | | | | | | | | | | | | | | | |
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| During the Nine months ended September 30, 2014 and September 30, 2013, 1,056,667 and 415,000 options were granted, respectively. The vesting period for the options ranges from immediate vesting to vesting over a three year period. The exercise price of options under the plan is at varying prices. Those options expire up to five years after the date of the grant. Any options which are forfeited or cancelled before expiration become available for future grants. | | | | | | | | | | | | | | | | | | | | | | | |
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| The fair value of each option granted to employees and non-employee during the nine months ended September 30, 2014 and during the nine months ended September 30, 2013, for which the exercise price was greater than par value, was estimated on the date of grant, using the Black-Scholes model and the following assumptions: | | | | | | | | | | | | | | | | | | | | | | | |
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| 1 | Dividend yield of zero percent for all periods. | | | | | | | | | | | | | | | | | | | | | | |
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| 2 | Risk-free interest rate of 0.79%-1.05% and 0.57%-0.59% for grants during the nine months ended September 30, 2014 and September 30, 2013, respectively, based on U.S. Treasury yield curve in effect at the time of grant. | | | | | | | | | | | | | | | | | | | | | | |
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| 3 | Estimated expected lives of 2.85-3.75 and 3.5 for grants during the nine months ended September 30, 2014 and September 30, 2013, respectively. | | | | | | | | | | | | | | | | | | | | | | |
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| 4 | Expected average volatility of 65%-67% and 59%- 70% for grants during the nine months ended September 30, 2014 and September 30, 2013,respectively, which represent a weighted average standard deviation rate for the price of the Company's Ordinary Shares in the NASDAQ Global Market. | | | | | | | | | | | | | | | | | | | | | | |
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The Company's options activity (including options to non-employees) and options outstanding and options exercisable as of December 31, 2013 and September 30, 2014, are summarized in the following table: |
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| | Number of | | | Weighted | | | | | | | | | | | | | | | | | |
| | options | | | average exercise | | | | | | | | | | | | | | | | | |
| | outstanding | | | price per share | | | | | | | | | | | | | | | | | |
Outstanding – December 31, 2013 | | | 1,789,616 | | | | 1.65 | | | | | | | | | | | | | | | | | |
Options granted | | | 1,056,667 | | | | 2.34 | | | | | | | | | | | | | | | | | |
Options expired or forfeited | | | (201,500 | ) | | | 1.1 | | | | | | | | | | | | | | | | | |
Options exercised | | | (561,333 | ) | | | 1.57 | | | | | | | | | | | | | | | | | |
Outstanding – September 30, 2014 | | | 2,083,450 | | | | 2.05 | | | | | | | | | | | | | | | | | |
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Exercisable as of: | | | | | | | | | | | | | | | | | | | | | | | | |
31-Dec-13 | | | 800,616 | | | $ | 1.53 | | | | | | | | | | | | | | | | | |
30-Sep-14 | | | 495,784 | | | $ | 1.53 | | | | | | | | | | | | | | | | | |
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| The weighted average fair value of options granted during the nine months ended September 30, 2014 and during the year ended December 31, 2013 is $1.09 and $1.26, respectively per option. The aggregate intrinsic value of outstanding options at September 30, 2014 and December 31, 2013 is approximately $1,599 and $2,774, respectively. The aggregate intrinsic value of exercisable options at September 30, 2014 and December 31, 2013 is approximately $636 and $1,391, respectively. | | | | | | | | | | | | | | | | | | | | | | | |
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The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of September 30, 2014: |
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A. | Stock option plans (cont'd) | | | | | | | | | | | | | | | | | | | | | | | |
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| | Options outstanding | | | Options Exercisable | |
| | Number | | | Weighted | | | | | | Number | | | Weighted | | | | |
| | outstanding | | | average | | | Weighted | | | Outstanding | | | average | | | Weighted | |
| | as of | | | remaining | | | Average | | | As of | | | remaining | | | Average | |
Range of | | September 30, | | | contractual | | | Exercise | | | September 30, | | | contractual | | | Exercise | |
exercise price | | 2014 | | | life (years) | | | Price | | | 2014 | | | life (years) | | | Price | |
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$0.03 | | | 60,116 | | | | 1.9 | | | $ | 0.03 | | | | 60,116 | | | | 1.9 | | | $ | 0.03 | |
0.9 | | | 231,000 | | | | 4.27 | | | | 0.9 | | | | 120,333 | | | | 4.11 | | | | 0.9 | |
1.08-1.45 | | | 138,000 | | | | 2.71 | | | | 1.09 | | | | 23,000 | | | | 2.68 | | | | 1.08 | |
1.46 | | | 175,000 | | | | 4.14 | | | | 1.46 | | | | 18,333 | | | | 4.06 | | | | 1.46 | |
1.67-2.08 | | | 69,500 | | | | 2.27 | | | | 1.73 | | | | 49,500 | | | | 2.13 | | | | 1.73 | |
2.24-2.58 | | | 1,159,834 | | | | 4.21 | | | | 2.36 | | | | 224,502 | | | | 2.88 | | | | 2.35 | |
3.18-3.23 | | | 250,000 | | | | 4.46 | | | | 3.21 | | | | - | | | | - | | | | - | |
| | | 2,083,450 | | | | 4.01 | | | | | | | | 495,784 | | | | 3.02 | | | | | |
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As of September 30, 2014, there was approximately $1,600 of total unrecognized compensation cost related to non-vested share based compensation arrangements. That cost is expected to be recognized over a weighted-average period of approximately 2.25 years. |
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During the nine months ended September 30, 2014 and September 30, 2013, the Company recorded share-based compensation expenses in the amount of $642 and $259, respectively, in accordance with ASC 718. |
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B. | Warrants | | | | | | | | | | | | | | | | | | | | | | | |
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The following table summarizes information about warrants outstanding and exercisable as of September 30, 2014: |
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| | Warrants outstanding | | | Warrants Exercisable | |
| | Number | | | Weighted | | | | | | Number | | | Weighted | | | | |
| | outstanding | | | average | | | Weighted | | | Outstanding | | | average | | | Weighted | |
| | as of | | | remaining | | | Average | | | As of | | | remaining | | | Average | |
Range of | | September 30, | | | contractual | | | Exercise | | | September 30, | | | contractual | | | Exercise | |
exercise price | | 2014 | | | life (years) | | | Price | | | 2014 | | | life (years) | | | Price | |
$0.03 | | | 110,861 | | | | 2.35 | | | $ | 0.03 | | | | 56,644 | | | | 2.18 | | | $ | 0.03 | |
$3.75 | | | 260,869 | | | | 1.35 | | | | 3.75 | | | | 260,869 | | | | 1.35 | | | | 3.75 | |
| | | 371,730 | | | | 1.65 | | | | | | | | 317,513 | | | | 1.51 | | | | | |
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