Enzymotec (ENZY) 20-F 16 Mar 17 2016 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2016shares
Document And Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Entity Registrant Name	Enzymotec Ltd.
Entity Central Index Key	1,578,809
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding	22,852,544

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 7,581	$ 21,987
Short-term bank deposits	15,340	17,042
Marketable securities	19,594	6,009
Accounts receivable, net:
Trade	10,038	14,956
Other	2,027	2,358
Inventories	26,331	21,815
TOTAL CURRENT ASSETS	80,911	84,167
NON-CURRENT ASSETS:
Investment in equity investee	1,715	1,499
Marketable securities	33,152	31,360
Funds in respect of retirement benefits obligation	1,136	1,076
Intangibles, long-term deposits and other	1,027	1,116
PROPERTY, PLANT AND EQUIPMENT:
Cost	42,673	40,796
Less - accumulated depreciation and amortization	13,665	11,088
Net	29,008	29,708
TOTAL ASSETS	146,949	148,926
Accounts payable and accruals:
Trade	5,126	5,529
Other	3,803	5,427
TOTAL CURRENT LIABILITIES	8,929	10,956
LONG TERM LIABILITY -
Retirement benefits obligation	1,420	1,253
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL LIABILITIES	10,349	12,209
SHAREHOLDERS' EQUITY:
Ordinary shares	58	58
Additional paid-in capital	127,014	124,243
Accumulated other comprehensive loss	(436)	(471)
Retained earnings	9,964	12,887
TOTAL SHAREHOLDERS' EQUITY	136,600	136,717
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 146,949	$ 148,926

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
NET REVENUES	$ 47,696	$ 50,391	$ 47,103
COST OF REVENUES	(17,709)	(19,635)	(18,316)
GROSS PROFIT	29,987	30,756	28,787
OPERATING EXPENSES:
Research and development - net	(7,369)	(6,149)	(5,986)
Selling and marketing	(17,761)	(11,425)	(8,034)
General and administrative	(7,971)	(7,008)	(7,475)
TOTAL OPERATING EXPENSES	(33,101)	(24,582)	(21,495)
OPERATING INCOME (LOSS)	(3,114)	6,174	7,292
FINANCIAL INCOME - net	257	471	499
INCOME (LOSS) BEFORE TAXES ON INCOME	(2,857)	6,645	7,791
TAXES ON INCOME	(458)	(407)	(406)
SHARE IN PROFITS OF EQUITY INVESTEES	392	445	453
NET INCOME (LOSS)	(2,923)	6,683	7,838
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized loss on marketable securities	(181)	(159)	(125)
Currency translation adjustments on equity investees	(111)	(98)	(202)
Changes in unrealized gains (losses) in respect of derivative instruments designated for cash flow hedge	327	(150)	328
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (2,888)	$ 6,276	$ 7,839
EARNINGS (LOSS) PER SHARE:
Basic	$ (0.13)	$ 0.30	$ 0.36
Diluted	$ (0.13)	$ 0.29	$ 0.34
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS (LOSS) PER SHARE:
Basic	22,739,181	22,506,955	21,902,057
Diluted	22,739,181	23,282,865	23,210,573

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Ordinary shares [Member]		Additional paid-in capital [Member]	Accumulated other comprehensive income (loss) [Member]	Retained earnings (accumulated deficit) [Member]	Total
Balance at Dec. 31, 2013		$ 55		$ 119,547	$ (65)	$ (1,634)	$ 117,903
Balance, shares at Dec. 31, 2013		21,564,820
Comprehensive income (loss)					1	7,838	7,839
Exercise of options		$ 2		1,754			$ 1,756
Exercise of options, shares		908,169					908,169
Issuance of restricted shares	[1]
Issuance of restricted shares, shares		9,520
Share issuance costs				(78)			(78)
Share-based compensation				852			852
Balance at Dec. 31, 2014		$ 57		122,075	(64)	6,204	128,272
Balance, shares at Dec. 31, 2014		22,482,509
Comprehensive income (loss)					(407)	6,683	6,276
Exercise of options		$ 1		535			$ 536
Exercise of options, shares		175,482					175,482
Issuance of restricted shares	[1]
Issuance of restricted shares, shares		60,344
Share-based compensation				1,633			1,633
Balance at Dec. 31, 2015		$ 58		124,243	(471)	12,887	136,717
Balance, shares at Dec. 31, 2015		22,718,335
Comprehensive income (loss)					35	(2,923)	(2,888)
Exercise of options			[1]	191			$ 191
Exercise of options, shares		51,746					51,746
Issuance of restricted shares	[1]
Issuance of restricted shares, shares		82,463
Share-based compensation				2,580			2,580
Balance at Dec. 31, 2016		$ 58		$ 127,014	$ (436)	$ 9,964	$ 136,600
Balance, shares at Dec. 31, 2016		22,852,544
[1]	Represents an amount of less than $1,000.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (2,923)	$ 6,683	$ 7,838
Adjustments required to reflect cash flows from operations:
Depreciation and amortization	2,727	2,327	2,308
Share in profits of equity investee	(392)	(445)	(453)
Share-based compensation expense	2,580	1,633	852
Loss on sale of property, plant and equipment		37
Change in inventories	(4,516)	(243)	(9,629)
Change in accounts receivable	5,597	(881)	5,304
Change in accounts payable and accruals	(1,890)	2,300	(3,868)
Change in other non-current assets	65	(304)	(141)
Change in retirement benefits obligation	137	91	(246)
Net cash provided by operating activities	1,385	11,198	1,965
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment and intangible assets	(2,114)	(2,869)	(6,361)
Change in bank and other deposits, net	1,858	2,995	(20,009)
Investment in marketable securities	(32,448)	(9,428)	(42,499)
Investment in equity investee			(92)
Proceeds from liquidation of an equity investee	64
Proceeds from sale of marketable securities	16,688	9,299	5,285
Proceeds from sale of property, plant and equipment		11
Change in funds in respect of retirement benefits obligation	(30)	(70)	118
Net cash used in investing activities	(15,982)	(62)	(63,558)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term bank loan			(4,200)
Proceeds from exercise of options	191	536	1,756
Share issuance costs			(78)
Net cash provided by (used in) financing activities	191	536	(2,522)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(14,406)	11,672	(64,115)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	21,987	10,315	74,430
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR	7,581	21,987	10,315
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid			187
Income taxes paid, net of refunds	308	268	691
Supplementary information on financing and investing activities not involving cash flows
Amount included in trade payables in respect of acquisition of property, plant and equipment	$ 313	$ 450	$ 622

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in United States of America ("U.S. GAAP"). The significant accounting policies were applied on a consistent basis, as follows: a. General Enzymotec Ltd. (the "Company") is The Company's sales are made to companies that market dietary supplements, to distributors related to those companies, to nutrition companies that provide balanced nutrition to babies and to pharmaceutical companies. In the VAYA Pharma segment, the majority of the products are sold directly to customers in the U.S. through wholesalers and through an online pharmacy which is operated by a third-party vendor. As to sales by geographic locations and major customers, see Note 5. In June 2007, the Company entered into a joint collaboration agreement with a Swedish vegetable oil company (the "Partner" or "AAK") for the manufacture, marketing and sale of products to the infant food industry and established Advance Lipids AB, a Swedish company jointly owned by both parties in equal proportions ("Advanced Lipids") for this purpose, see also Note 4. b. Use of estimates in preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to contingencies, derivatives, allowance for doubtful debts and inventory levels. c. Functional currency The U.S. dollar ("dollar") is the currency of the primary economic environment in which the operations of the Company are conducted. The majority of the Company's sales are denominated in dollars; the majority of the Company’s expenses are incurred in dollars; and the majority of the Company’s financing has been provided in dollars. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the consolidated statements of operations and comprehensive income (loss) (indicated below), the following exchange rates are used: (i) for transactions - exchange rates at transaction dates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) - historical exchange rates. Currency transaction gains and losses are recorded in financial income or expenses, as appropriate. The functional currency of the Company's equity investee, Advanced Lipids, is the Swedish Krona, which is the currency of the primary economic environment in which the operations of Advanced Lipids are conducted. Currency translation adjustments are presented within other comprehensive income (loss). d . Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been fully eliminated. Profits from intercompany sales have also been eliminated. e. Investment in equity investees The Company’s investment in equity investees, which is a less-than-majority-owned entity in which the Company exercises significant influence over operating and financial policies, is accounted for using the equity method of accounting. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed profits or losses of such company. The Company’s profits from equity investees have been reflected as "share in profits of equity investee" in the consolidated statements of operations and comprehensive income (loss). f. Cash equivalents The Company considers all highly liquid investments, which include short-term bank deposits (up to three months from date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents. g. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or market. The inventories are determined as follows: Raw materials and supplies - on the "first-in, first-out" basis; Products in process and finished products: the raw and packaging materials on the "first-in, first-out" basis; the capitalized production cost – on an average basis over the production period. h. Investment in securities Investment in securities consists of debt securities classified as available-for-sale and recorded at fair value. The fair value of quoted securities is based on current market value. Unrealized gains (losses) of available-for-sale securities, net of taxes, are reflected in other comprehensive income (loss). Unrealized losses considered to be temporary are reflected in other comprehensive income (loss); unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for debt securities are included in financial income (expenses) - net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment are charged to income included in financial income (expenses) - net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss). i. Intangible assets Intangible assets represent licenses to sell in certain territories (see also Note 8e (1)) and are shown at historical cost. Licenses have a finite useful life and are carried at cost, net of accumulated amortization. Amortization is calculated using the straight-line method over the estimated useful life of the license. j. Property, plant and equipment These assets are stated at cost, net of accumulated depreciation and amortization. The assets are depreciated by the straight-line method on the basis of their estimated useful lives. Annual rates of depreciation are as follows: % Computers nd software 33 Buildings 2 Vehicles 15 Manufacturing equipment 7-10 Laboratory equipment 7-20 (Mainly 15%) Furniture and office equipment 6-15 Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements. k. Impairment of long-lived assets The Company tests long-lived assets (including intangible assets) for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value of expected future cash flows (discounted cash flows), or some other fair value measure. l. Revenue recognition The Company recognizes revenue from sales of its products to customers, including distributors, when persuasive evidence of sales arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. See also Note 4 for timing of revenue recognition related to the Company's joint collaboration agreement. The Company provides a right of return to its U.S. distributors upon expiry of the medical food products sold in the VAYA Pharma segment. Accordingly, the Company records a reserve for estimated sales returns based on historical experience as well as specific factors, such as levels of inventory in the distribution channel, product dating and expiration. Returns to date have been immaterial. Revenues from product sales are also recorded net of cash discounts and distribution fees, which can be reasonably estimated. m. Research and development expenses Research and development expenses are charged to income as incurred. Participation from government departments and from research foundations for development of approved projects is recognized as a reduction of expense as the related costs are incurred. The main components of the research and development expenses are salaries and related expenses, laboratory, clinical research and regulatory related expenses. n. Contingencies Certain conditions may exist as of the balance sheet date, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. Management assesses such contingent liabilities and the potential exposure involved relative to insurance coverage, if any, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in Accounting Standards Codification ("ASC") 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantees are disclosed. o. Income taxes Deferred income taxes are determined by the asset and liability method based on the estimated future tax effects of differences between the financial accounting and the tax bases of assets and liabilities under the applicable tax law. Deferred tax balances are computed using the tax rates expected to be in effect at the time when these differences reverse. Valuation allowances in respect of the deferred tax assets are provided when it is more likely than not that all or a portion of the deferred income tax assets will not be realized. See Note 10g for additional information regarding deferred taxes. The Company assesses its valuation allowance considering different indicators, including profitability of the different entities in the different tax jurisdictions, the ability to utilize the deferred tax assets in subsequent years, etc. Upon the distribution of dividends from the tax-exempt income of an "Approved Enterprise" or "Benefitted Enterprise" (see also Note 10a (3)), the amount distributed is subject to tax at the rate that would have been applicable had the Company not been exempted from payment thereof. The Company intends to permanently reinvest the amounts of tax exempt income and it does not intend to distribute such dividends. Therefore, no deferred income taxes have been provided in respect of such tax-exempt income. The Company may incur an additional tax liability in the event of an inter-company dividend distribution from foreign subsidiaries; no additional deferred income taxes have been provided, since it is the Company’s policy not to distribute dividends in the foreseeable future that may result in additional tax liability. Taxes that would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing deferred income taxes, as it is the Company’s intent and ability to hold these investments. Tax benefits recognized in the consolidated financial statements are those that management deems at least more likely than not to be sustained, based on technical merits. The amount of benefits recorded for these tax benefits is measured as the largest benefit management deems more likely than not to be sustained. p. Share-based compensation The Company accounts for employees and directors share-based compensation awards classified as equity awards using the grant-date fair value method. The fair value of share-based compensation transactions is recognized as an expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. Performance-based awards are expensed over the requisite service period when the achievement of performance criteria is probable. The Company elected to recognize compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method based on the multiple-option award approach. When options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted is measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method. q. Shipping and handling costs Shipping and handling costs on sales are classified as a component of cost of revenues. r. Advertising Costs related to advertising and promotion of products, are charged to selling and marketing expense as incurred. s. Earnings (loss) per share Basic earnings (loss) per share are computed by dividing net income or loss applicable to ordinary shareholders by the weighted average number of shares of the Company's ordinary shares outstanding for each period. Diluted earnings (loss) per share are calculated by dividing net income or loss applicable to ordinary shareholders by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares are comprised of: incremental ordinary shares issuable upon the exercise of share options, restricted shares or warrants, using the treasury stock method. For the Company's performance-vested share awards, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all awards granted. t. Derivatives The Company purchases foreign exchange derivative financial instruments (mainly forward exchange contracts, and written and purchased currency options). The transactions are designed to hedge the Company’s currency exposure. Derivatives that do not qualify for hedge accounting are recognized in the balance sheet at their fair value, with changes in the fair value recognized as a component of “financial income (expenses) - net” in the consolidated statements of operations and comprehensive income (loss). Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of other comprehensive income or loss and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings. For derivatives that do not qualify for hedge accounting, the cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. u. Fair value measurement The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. v. Concentration of credit risks, trade receivables and suppliers Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and trade receivables. The Company deposits cash and cash equivalents with highly rated financial institutions, mainly Israeli and U.S. banks. Deposits in U.S. banks are federally insured up to $250,000 per account. The Company has experienced from time to time credit losses in accounts receivables and believes it has appropriate allowance with respect to credit risk on these instruments. The Company performs ongoing credit evaluations to estimate the need for maintaining reserves for potential credit losses. An allowance for doubtful accounts is recognized on a specific basis with respect to those amounts that the Company has determined to be doubtful of collection. Following are the changes in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014. Year ended December 31 2016 2015 2014 U.S. dollars in thousands Balance at beginning of year $ - $ 245 $ - Charged to cost and expenses 935 * - 245 Released from doubtful accounts - (245 ) - Balance at end of year $ 935 $ - $ 245 * . At December 31, 2016, no customers accounted for more than 10% of net accounts receivable. At December 31, 2015, two customers accounted for more than 10% of net accounts receivable with balances of $1,929,000 and $1,658,000. The Company is dependent on third parties to supply krill meal, an essential raw material for the production of krill oil, which accounted for 23.2%, 35.3% and 40.6% of total net revenues in the years ended December 31, 2016, 2015 and 2014, respectively. The Company currently purchases krill meal from a limited number of suppliers. T either or both of w. Recently issued accounting pronouncements In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ( ASU ) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. A financial instrument is defined as cash, evidence of ownership interest in a company or other entity, or a contract that both: (i) imposes on one entity a contractual obligation either to deliver cash or another financial instrument to a second entity or to other financial instruments on potentially unfavorable terms with the second entity and (ii) conveys to that second entity a contractual right either to receive cash or another financial instruments from the first entity or to exchange other financial instruments on potentially favorable terms with the first entity. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2017 (January 1, 2018 for the Company) and interim periods within those annual periods with earlier application permitted as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of the pending adoption of this guidance on its consolidated financial statements and related disclosures. In February 2016, the FASB issued No. 2016-02, Leases (Topic 842) which revise accounting guidance. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all leases, other than leases that meet the definition of a short-term lease (i.e., leases with terms under 12 months). Consistent with current generally accepted accounting principles, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU requires additional disclosures. The new standard is effective for fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition approach. has not yet determined whether it will elect early adoption and is currently in the initial stage of evaluating the potential impact of the pending adoption of this guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) , which simplifies certain aspects of the accounting for share-based payments, including accounting for income taxes, classification of awards as either equity or liabilities, on the statement of cash flows as well as allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The standard also requires that shares withheld to satisfy tax withholding obligations associated with the vesting of restricted stock awarded to employees to be presented as a financing activity in the statement of cash flows. The ASU is effective for annual reporting periods (including interim periods within those annual reporting periods) beginning after December 15, 2016 and all amendments in the ASU that apply must be adopted in the same period. The Company plans to adopt this ASU in the first quarter of 2017. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures . In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory , which provides guidance on current accounting for inventory measurement. The new guidance requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is defined by the guidance as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016. The Company adopted the new guidance and it had an immaterial the Company's and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In 2016, the FASB issued four amendments to ASU 2014-09. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017 (January 1, 2018 for the Company) (early adoption is permitted for the interim and annual periods beginning on or after December 15, 2016, January 1, 2017 for the Company). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is expected to adopt this standard using the modified retrospective method in the first quarter of 2018. has not yet determined whether it will elect early adoption and currently evaluating of the pending adoption of

INITIAL PUBLIC OFFERING (IPO) A

INITIAL PUBLIC OFFERING (IPO) AND SECONDARY OFFERING	12 Months Ended
	Dec. 31, 2016
INITIAL PUBLIC OFFERING ('IPO') AND SECONDARY OFFERING [Abstract]
INITIAL PUBLIC OFFERING (IPO) AND SECONDARY OFFERING	NOTE 2 - INITIAL PUBLIC OFFERING ("IPO") AND SECONDARY OFFERING On October 2, 2013, the Company closed its IPO in the United States with respect to the sale of 5,073,800 ordinary shares. In connection with the IPO, the Company’s ordinary shares were listed on the NASDAQ Global Select Market. The IPO price was $14 per share. After deducting the underwriting discount and the offering expenses, the net proceeds to the Company from the offering amounted to $62,838,000. The number of shares offered included the underwriters’ option to purchase an additional 661,800 ordinary shares at the IPO price that was exercised in full prior to closing. On March 5, 2014, the Company closed a registered public offering by certain selling shareholders of 5,403,685 ordinary shares at $28.00 per share, which included 704,828 shares purchased pursuant to the full exercise of the underwriters' option to purchase additional shares. The Company did not receive any proceeds from the sale of these shares. The Company recognized in the statement of operations and comprehensive income (loss) $0.4 million of expenses in respect of such offering.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT	NOTE 3 - PROPERTY, PLANT AND EQUIPMENT Composition of property and equipment grouped by major classifications is as follows: December 31 2016 2015 U.S. dollars in thousands Manufacturing equipment $ 24,647 $ 23,613 Buildings 10,754 10,605 Laboratory equipment 3,853 3,613 Land* 951 951 Furniture, office equipment and computers 2,291 1,837 Leasehold improvements 161 161 Vehicles 16 16 42,673 40,796 Less: accumulated depreciation and amortization 13,665 11,088 $ 29,008 $ 29,708 * Land includes long-term leasehold rights in Israel with useful lives of 98 years. Depreciation and amortization expense totaled $2,577,000, $2,215,000 and $1,941,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

JOINT COLLABORATION AGREEMENT

JOINT COLLABORATION AGREEMENT	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
JOINT COLLABORATION AGREEMENT	NOTE 4 - JOINT COLLABORATION AGREEMENT As described in Note 1, the Company has entered into a joint collaboration agreement with a Swedish vegetable oil company. The joint collaboration agreement's initial term ended on December 31, 2016. Thereafter the agreement is automatically extended for consecutive periods of three years, unless terminated by a notice of either party at least 12 months prior to its expiration. As neither party gave termination notice by December 31, 2015, the agreement was automatically extended through December 31, 2019. Under the joint collaboration agreement and two related supply agreements entered into between the parties, the activities of the joint operations are allocated as follows: The Company has the responsibility for production of the enzyme, research and development, marketing and business development activities. The Partner has responsibility for the supply chain (purchase and procurement of raw materials, managing stock, delivery and collection). Advanced Lipids operates as a low risk distributor of the joint collaboration. The Company recognizes revenues from its sales of enzymes to the Partner only upon the sale of InFat (as described in Note 5a) by Advanced Lipids to its customers. As described in Note 1e, the Company accounts for its investment in Advanced Lipids using the equity method of accounting and recognizes its 50% proportionate share of the profit or loss of Advanced Lipids. For the years ended December 31, 2016, 2015 and 2014, sales of enzymes by the Company to the Partner amounted to $15,139,000, $13,950,000 and $13,280,000, respectively. At December 31, 2016 and 2015, the receivable balance was $3,527,000 and $3,706,000, respectively. In May 2014, AAK submitted a request for arbitration against the Company seeking a determination of the arbitrators that the Company’s disclosure of information in connection with the Company’s initial public offering was an intentional, material breach of the joint venture agreement, as well as a declaration regarding the correct interpretation of certain provisions of the joint venture agreement. The Company submitted its answer to AAK’s arbitration request rejecting AAK's allegations and including also a counter claim, in which the company is seeking monetary damages from AAK due to various breaches of the joint venture agreement by AAK. The arbitration hearing took place in June 2015. On February 2, 2016, the arbitrators rendered their decision, rejecting, in their entirety, AAK's requests for declaratory relief in connection with alleged breaches by the Company of the joint venture agreement's non-disclosure obligations. Additionally, the arbitrators found that, as the Company maintained, the joint venture agreement should be interpreted such that the only exit the parties have from the agreement is via a buy-sell process which must end in one party buying out the other and not, as AAK had claimed, simply through the expiration of the joint venture agreement. With respect to the Company's counterclaims, the arbitrators denied all relief requested by the Company. On March 9, 2016, AAK submitted a request for an additional award, under which it requested that the International Chamber of Commerce tribunal determine whether the Company breached its non-disclosure obligations, irrespective as to whether such breach was material or intentional. The Company objected to the request for an additional award. On May 9, 2016, the arbitrators rendered their decision and found that it had addressed all matters submitted to it in its February award and that accordingly there were no grounds for an additional award for AAK. The tribunal also awarded certain costs to the Company in connection with this latest request of AAK.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 5 - SEGMENT INFORMATION: a. Segment information: The Chief Executive Officer ("CEO") is the Company’s chief operating decision-maker ("CODM"). Management has determined that there are two operating segments, based on the Company's organizational structure, its business activities and information reviewed by the CODM for the purposes of allocating resources and assessing performance. Nutrition. The Nutrition Segment includes the results of Advanced Lipids and other activities performed at the Company level. For accounting purposes, the results of Advanced Lipids are recorded using the equity method of accounting. For management purposes, the results of Advanced Lipids are analyzed based on proportionate consolidation, which represents the Company's share (50%) of the gross results of Advanced Lipids. VAYA Pharma The CODM assesses the performance based on a measure of "Adjusted EBITDA" (earnings before financial expenses, tax, depreciation and amortization and excluding share-based compensation expenses and other unusual income or expenses). The measure of assets has not been disclosed for each segment as it is not provided to the CODM. Segment data for the year ended December 31, 2016 is as follows: Nutrition VAYA Pharma Total Elimination*** Consolidated U.S. dollars in thousands Net revenues from external customers $ 49,658 $ 11,214 $ 60,872 $ (13,176 ) $ 47,696 Cost of revenues* 27,847 2,382 30,229 (12,660 ) 17,569 Gross profit* 21,811 8,832 30,643 (516 ) 30,127 Operating expenses** 11,581 17,591 29,172 29,172 Depreciation and amortization 2,237 490 2,727 Adjusted EBITDA $ 12,467 $ (8,269 ) Share-based compensation expense 2,580 Business development related expenses 554 Provision for bad debt related to payment intermediator 935 Operating loss $ (3,114 ) Financial income - net 257 Loss before taxes on income $ (2,857 ) * Including depreciation and amortization but excluding share-based compensation expense. ** Including depreciation and amortization but excluding share-based compensation expense, business development related expenses . *** Representing the change from proportionate consolidation to the equity method of accounting. Segment data for the year ended December 31, 2015 is as follows: Nutrition VAYA Pharma Total Elimination** Consolidated U.S. dollars in thousands Net revenues from external customers $ 54,163 $ 8,471 $ 62,634 $ (12,243 ) $ 50,391 Cost of revenues* 29,686 1,506 31,192 (11,665 ) 19,527 Gross profit* 24,477 6,965 31,442 (578 ) 30,864 Operating expenses* 12,704 10,356 23,060 (3 ) 23,057 Depreciation and amortization 2,127 200 2,327 Adjusted EBITDA $ 13,900 $ (3,191 ) Share-based compensation expense 1,633 Operating Income $ 6,174 Financial income - net 471 Income before taxes on income $ 6,645 * Including depreciation and amortization but excluding share-based compensation expense. ** Representing the change from proportionate consolidation to the equity method of accounting. Segment data for the year ended December 31, 2014 is as follows: Nutrition VAYA Pharma Total Elimination*** Consolidated U.S. dollars in thousands Net revenues from external customers $ 55,815 $ 5,641 $ 61,456 $ (14,353 ) $ 47,103 Cost of revenues* 30,605 1,435 32,040 (13,775 ) 18,265 Gross profit* 25,210 4,206 29,416 (578 ) 28,838 Operating expenses** 13,347 6,957 20,304 (3 ) 20,301 Depreciation and amortization 2,112 196 2,308 Adjusted EBITDA $ 13,975 $ (2,555 ) Secondary offering expenses 393 Share-based compensation expense 852 Operating Income $ 7,292 Financial expenses - net 499 Income before taxes on income $ 7,791 * Including depreciation and amortization but excluding share-based compensation expense. ** Including depreciation and amortization but excluding share-based compensation expense and Secondary offering expenses. *** Representing the change from proportionate consolidation to the equity method of accounting. b. Entity wide information: 1) Net revenues by geographic location were as follows: Year ended December 31 2016 2015 2014 U.S. dollars in thousands America (*) $ 25,267 $ 29,635 $ 25,810 Europe 10,146 10,071 10,395 Australia 3,285 2,188 2,388 Asia (**) 7,749 7,173 7,019 Israel 1,249 1,324 1,491 Total revenues $ 47,696 $ 50,391 $ 47,103 (*) including net revenues to the United States of America of $22,789,ooo, $25,826,000 and $20,614,000 for the years ended December 31, 2016, 2015 and 2014, respectively. (**) including net revenues to China of $5,911,000, $5,480,000 and $4,860,000 for the years ended December 31, 2016, 2015 and 2014, respectively. 2) Substantially all of the Company's long lived assets are located in Israel. 3) Revenues from sales of four products, which exceed 10% of total revenues, are as follows: Year ended December 31 2016 2015 2014 U.S. dollars in thousands Krill oil (Nutrition Segment) $ 11,058 $ 17,776 $ 19,131 Enzyme for the production of InFat (Nutrition Segment), see Note 4 $ 15,139 $ 13,950 $ 13,280 Vayarin (VAYA Pharma Segment) $ 9,030 $ 6,395 $ 4,203 Line of PS products (Nutrition Segment) $ 10,015 $ 9,999 $ 8,385 4) Net revenues from single customers out of the Nutrition Segment that exceed 10% of total net revenues in the relevant year: Year ended December 31 2016 2015 2014 U.S. dollars in thousands Customer A $ 1,344 $ 5,528 $ 4,173

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6 - INVENTORIES: December 31 2016 2015 U.S. dollars in thousands Raw materials and supplies $ 11,929 $ 12,927 In-process inventories 11,428 6,379 Finished goods 2,974 2,509 $ 26,331 $ 21,815 The Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated market value, based on various product sales projections. This reserve is calculated based on age, historical trends and forecasted sales. There is inherent professional judgment and subjectivity made by both production and quality assurance members of management in determining the estimated obsolescence reserve. The Company recorded raw material and in-process inventory obsolescence reserves of $2,897,000 and $972,000 for the years ended December 31, 2016 and 2015, respectively. Based on the Company's estimates of the timing of forecasted sales, approximately $12.1 million of raw materials and in-process inventory as of December 31, 2016 may not be sold during the next twelve months.

EMPLOYEE RIGHTS UPON RETIREMENT

EMPLOYEE RIGHTS UPON RETIREMENT	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE RIGHTS UPON RETIREMENT	NOTE 7 - EMPLOYEE RIGHTS UPON RETIREMENT The Company is required to make severance payments with respect to its Israeli employees upon dismissal of an employee or upon termination of employment in certain circumstances. In accordance with the current employment agreements with most of its Israeli employees, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s retirement benefit obligation. The Company is fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company’s consolidated balance sheets, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plan”). With regard to the employees without a Contribution Plan, the liability is funded in part by the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. These policies are the Company's assets. The severance payment liability to the employees (based upon length of service and the latest monthly salary - one month’s salary for each year of employment) is recorded in the Company's balance sheets under “retirement benefits obligation”. The liability is recorded as if it was payable at each balance sheet date on an undiscounted basis. In the years ended December 31, 2016, 2015 and 2014, the Company deposited $117,000, $114,000 and $147,000, respectively, with insurance companies and pension funds in connection with its severance payment obligations. The amounts of severance payment expenses were $544,000, $449,000 and $392,000 for the years ended December 31, 2016, 2015 and 2014, respectively, of which $320,000, $314,000 and $312,000 in the years ended December 31, 2016, 2015 and 2014, respectively, were in respect of the Contribution Plan and funded accordingly. Gains (losses) on the amounts funded in insurance companies and pension funds, in respect of retirement benefit obligation totaled $30,000, $12,000 and ($78,000) for the years ended December 31, 2016, 2015 and 2014, respectively. The Company expects to contribute approximately $440,000 in the year ending December 31, 2017 to insurance companies in connection with its severance liabilities for its operations for that year, $330,000 of which will be contributed to a Contribution Plan.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 - COMMITMENTS AND CONTINGENCIES: a. Operating leases As of December 31, 2016, minimum future rentals under operating leases of office space, machinery and equipment and vehicles for periods in excess of one year amounted to $1,292,000 and were to be paid as follows: 2017 - $525,000; 2018 - $434,000; 2019 – $275,000; 2020 - $58,000. The lease expenses in each of the years ended December 31, 2016, 2015 and 2014 were $2,295,000, $1,420,000 and $868,000, respectively. b. Marketing and distribution agreements The Company has entered into marketing and distribution agreements with commercial entities with respect to its products. Under the terms of the agreements, the distributors have received rights to distribute the products in a defined territory and for various periods. c. Toll manufacturing agreement The Company has entered in 2014 into a 10-year toll manufacturing agreement with respect to one of its products. Under the terms of the agreement, the Company has committed for minimum purchasing through the term of the agreement. The Company can terminate the agreement with a 90-day notice, subject to payment of termination payment which is based on a fixed amount of up to $500,000 reduced by actual purchasing before termination. d. Royalties: 1) The Company is committed to pay royalties to the Innovation Center (Formerly: the Office of the Chief Scientist) of the Israeli Ministry of Economy and Industry (the "Innovation Center"); the royalties are computed based on the Company's net revenues arising from know-how in the research and development in which the Innovation Center participated by way of grants. Under the terms of the Company’s funding from the Innovation Center, royalties of 3%-5% are payable on sales of products developed from a project so funded, up to 100% of the amount of the grant received by the Company (dollar linked with the addition of annual interest at LIBOR rate). At the time the grants were received, successful development of the related projects was not assured. In the case of failure of a project that was partly financed by royalty-bearing Government grants, the Company is not obligated to pay any such royalties to the Israeli Government. At December 31, 2016, the maximum royalty amount payable (including interest) by the Company is approximately $3.0 million. 2) In 2001, the Company and a third party (the "U.S. Partner") entered into an agreement for the development, manufacture and supply of a new product. The development of this product was funded by BIRD – Israel-U.S. Binational Industrial Research and Development Foundation (the "BIRD Foundation"). The Company is committed to pay royalties to the BIRD Foundation which are computed based on the Company's net revenues from sale of products in the development of which the BIRD Foundation participated. The U.S. Partner has terminated the research project and the BIRD Foundation gave its consent to the termination as above. Therefore, the Company is not expected to derive any revenues from the said research; however, in case such revenues shall arise to the Company, the maximum royalty amount payable by the Company is $ 370,000 as of December 31, 2016. 3) Royalty expenses for the years ended December 31, 2016, 2015 and 2014 were recorded in cost of revenues and amounted to $340,000, $194,000 and $115,000, respectively. e. Litigation: 1) The Company was a party to a number of actions initiated by Neptune Technologies & Bioressources Inc., ("Neptune"), in which Neptune claimed that the Company's krill oil products infringed certain of its patents, namely U.S. Patent Nos. 8,030,348, 8,278,351 and 8,383,675, (the "348 patent", the "351 patent" and the "675 patent", respectively). Additionally, in April 2013, the Company received a notice of an investigation by the United States International Trade Commission, ("ITC"), regarding complaints filed before the ITC by Neptune and its subsidiary, Acasi Pharma Inc., stating that our alleged patent infringement violated the Tariff Act of 1930. On April 27, 2014, the Company signed a settlement agreement with Neptune (the "Settlement Agreement"). Pursuant to the Settlement Agreement, the Neptune patent litigations were dismissed with prejudice on May 2, 2014 and the ITC action was terminated on June 12, 2014. Under the Settlement Agreement, the Company received a worldwide non-exclusive license to the entire "348 patent family" for as long as any patent in that family exists, for all of the Company's relevant current products and future anticipated products under development in consideration of a one-time upfront payment to Neptune. This payment was recorded as intangible asset, which is being amortized over the life of the "348 patent family". Any further payments to Neptune depend upon the outcome of (1) Inter Partes Review (“IPR”) proceedings in the U.S. Patent Office (“USPTO”) of certain agreed claims of the "351 Patent" and (2) a potential Australian post-grant reexamination of certain agreed claims of Neptune’s Australian Patent AU2002322233. With respect to the "351 patent", in March 2014, the USPTO issued a decision instituting an IPR of the agreed claims of the "351 patent" filed by Aker BioMarine AS (“Aker”), concluding that there is reasonable likelihood that Aker will prevail in demonstrating unpatentability of those claims. On July 9, 2014, the USPTO issued a decision instituting the Company’s IPR of the agreed claims of the "351 patent" and granted the Company’s motion to join the Company’s IPR with Aker’s IPR. On March 23, 2015, the USPTO issued a decision finding 26 of the 28 Agreed Claims unpatentable. On April 22, 2015, Aker and the Company filed a petition for hearing with the USPTO with respect to the two remaining claims. The rehearing request was denied on July 8, 2015. The Company has appealed the March 23, 2015 USPTO decision to the U.S. Court of Appeals for the Federal Circuit. Management believes it is more likely than not that the USPTO decision of patentability with respect to those two claims will be reversed on appeal. Accordingly, at this stage, management does not believe that it is probable that the Company will incur a loss and therefore, the Company has not included any provision in its financial statements for these claims. Under the terms of the Settlement Agreement, the Company submitted its post-grant reexamination to the Australian Patent Office ("APO") on December 12, 2014. On January 28, 2015, the APO issued a reexamination report, finding that all the agreed claims lack novelty Following a second reexamination report for which the Company requested further reexamination, the APO issued a re-examination report on September 4, 2015 finding in favor of Neptune. On November 9, 2015, the Company filed a further reexamination request. On November 2, 2016, Neptune provided the Company with a Notice of Default and Termination in respect of the Settlement Agreement based on what it characterized as material breaches. The Company believes there have not been any material breaches of the Settlement Agreement and intends to vigorously defend its rights under the Settlement Agreement. Management believes it is more likely than not that the APO decision of patentability with respect to those agreed claims will be reversed on reexamination. Accordingly, at this stage, management does not believe that it is probable that the Company will incur a loss and therefore, the Company has not recorded any provision in its financial statements for these claims. 2) On September 5, 2014 and September 30, 2014, two stockholders filed class action complaints in the United States District Court for the District of New Jersey purportedly on behalf of all persons who acquired the Company's securities in its IPO or between September 27, 2013 and August 4, 2014. The lawsuits named as defendants the Company, its directors, certain of its officers and the underwriters of its IPO and assert claims under the United States federal securities laws. Under the underwriting agreement, the Company is obligated to provide indemnification to the underwriters in connection with legal proceedings, as defined in the agreement. On February 11, 2015, the Court consolidated the cases as In re Enzymotec Ltd. Securities Litigation, Master File No. 14-CV-05556 and appointed a lead plaintiff. The lead plaintiff filed an amended complaint on May 18, 2015 asserting essentially the same claims as the claims asserted in the initial class action complaints. The amended complaint, however, does not name the underwriters of the IPO as defendants as the underwriters and lead plaintiff entered into a tolling agreement. The Company filed a motion to dismiss on July 17, 2015, lead plaintiffs filed an opposition to the motion on September 15, 2015 and the Company filed a reply on October 30, 2015. The Court dismissed the claims related to the Company's krill oil business but did not dismiss the claims related to the infant formula business in China. The Company answered the amended complaint on February 19, 2016 Subsequently, the parties participated in a mediation where they reached an agreement in principle to settle the securities class action lawsuits. Under the proposed class action settlement, the claims against the Company and its officers and directors will be dismissed with prejudice and released in exchange for a cash payment of $6.5 million to be funded by the Company’s insurers. The proposed settlement remains subject to the satisfaction of various conditions, including negotiation and execution of a final stipulation of settlement Under the underwriting agreement, the Company is obligated to provide indemnification to the underwriters in connection with legal proceedings, as defined in the agreement. However, as discussed above, the underwriters are no longer named defendants. f. As to indemnification provided to several customers and distributors and underwriters in connection with legal proceedings, see e(1) and e(2) above.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 9 - SHAREHOLDERS' EQUITY: a. Option plans In 2001, 2003 and 2013 the Company's Board of Directors approved option plans for employees, directors and service providers (the "Plans"). Through December 31, 2016, the Company granted as part of the Plans 5,250,983 options, 165,580 restricted shares and 668,074 restricted share units (see b. below) to employees, directors and service providers. Each option is exercisable into one ordinary share of NIS 0.01 par value. On December 31, 2016, 307,756 shares were available for issuance upon grants of options or restricted shares or restricted share units under the Plans. From the effective date of grant options generally vest over a 4-year period 25% each year. In addition, at December 31, 2016, there are 62,782 outstanding options, which The fair value of options granted during the years ended December 31, 2016, 2015 and 2014 was $3.95 $2.75 and $3.57, respectively. The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: Year ended December 31 2016 2015 2014 Dividend yield 0 % 0 % 0 % Expected volatility 63 % 64 % 71 % Risk-free interest rate 2.19 % 2.07 % 2.44 % Contractual term 10 years 10 years 10 years Early exercise multiple 191%-215 % 178%-203 % 178%-203 % The expected volatility is based on the historical volatility of the Company's shares and of comparable companies. The risk-free interest rate assumption is derived from the interest curve for U.S. government bonds for periods corresponding to the life term of the option on the grant date. The early exercise multiple was based on data of comparable companies. The total unrecognized compensation cost of options granted to employees, directors and service providers (not including compensation cost in respect of restricted share units, see b. below) at December 31, 2016 is $2,136,000 which is expected to be recognized over a period of 3 years. A summary of share option plans (excluding restricted share units information, see b. below), and related information, under all of the Company's equity incentive plans for the years ended December 31, 2016, 2015 and 2014 are as follows: Options granted to employees, directors and service providers: Year ended December 31 2016 2015 2014 Number of shares upon exercise Weighted average exercise price* Number of shares upon exercise Weighted average exercise price* Number of shares upon exercise Weighted average exercise price* Outstanding at the beginning of the year 1,672,684 6.87 1,587,612 6.64 1,967,784 2.51 Granted 412,059 9.80 347,563 7.38 554,433 13.76 Exercised (51,746 ) 3.69 (175,482 ) 3.04 (908,169 ) 1.94 Forfeited (257,738 ) 11.96 (87,009 ) 12.55 (26,436 ) 9.73 Outstanding at the end of the year 1,775,259 6.90 1,672,684 6.87 1,587,612 6.64 Exercisable at the end of the year 1,061,474 4.91 987,568 4.22 1,039,011 2.87 The following table summarizes information concerning outstanding and exercisable options as of December 31, 2016: Options outstanding Options exercisable Shares Shares upon Aggregate upon Aggregate exercise of Weighted intrinsic exercise of Weighted intrinsic options average value options average value outstanding remaining (U.S. outstanding remaining (U.S. Exercise at end of contractual dollars in at end of contractual dollars in prices * year life thousands) year life thousands) 0.0001 47,600 0.79 312 47,600 0.79 312 1.47 193,800 1.61 984 193,800 1.61 984 3.12 485,316 3.80 1,665 485,316 3.80 1,665 5.34 79,578 6.26 96 79,578 6.26 96 6.97 185,820 8.02 - 48,038 8.06 - 7.84 110,831 8.01 - 27,706 8.01 - 8.35 3,750 8.58 - 3,750 8.58 - 8.49 33,750 9.65 - - - 9.92 310,123 9.01 - - - 13.76 311,091 7.61 - 165,486 7.61 - 14 13,600 6.75 - 10,200 6.75 - 1,775,259 6.02 3,057 1,061,474 4.39 3,057 * In dollars per share. The aggregate intrinsic value in the above table represents the total pre-tax intrinsic value, based on the Company's closing share price of $6.55 on December 31, 2016, less the exercise price. This represents the potential amount receivable by the option holders had all option holders exercised their options as of such date. b. Restricted shares and restricted share units In August 2013, the Company's Board of Directors approved a grant of 156,060 restricted shares to the current Chairman of the Board of Directors. The restricted shares are subject to vesting over four years commencing on March 31, 2013 and to other vesting milestones as follows: (i) the vesting of 104,040 restricted shares is subject to the occurrence of a change of control event, as defined; and (ii) the vesting of 52,020 restricted shares is subject to: (a) the occurrence of a change of control event, as defined and (b) the achievement of a market cap milestone, as defined. Following the closing of the IPO, the change in control event occurred and accordingly, the 104,040 restricted shares will vest according to their vesting schedule. In addition, the market cap milestone was met in the year ended December 31, 2014 and the 52,020 restricted shares will vest according to their vesting schedule. The fair value of the restricted shares is estimated based on the market value of the Company's stock on the date of grant. The Company recorded an expense of $545,000, $412,000 and $412,000 for the years ended December 31 2016, 2015 and 2014, respectively in respect of such restricted shares. The total unrecognized compensation expense in respect of such restricted shares at December 31 2016 is $120,000, which is expected to be recognized in the first quarter of 2017. In August 2014, the Company's Board of Directors approved a grant of 277,249 restricted share units to the Company's employees. The restricted share units are subject to vesting over four years commencing on August 15, 2014. The fair value of these restricted share units is estimated based on the market value of the Company's stock on the date of award. The Company recorded an expense of $430,000, $397,000 and $170,000 for the years ended December 31, 2016, 2015 and 2014, respectively, in respect of such restricted share units. In January and February 2015, the Company granted 160,398 restricted share units to the Company's employees of which 129,007 are subject to vesting over four years commencing on January 1, 2015 and 31,391 are also subject to performance conditions that were not met as of December 31, 2016. The fair value of the 129,007 restricted share units is estimated based on the market value of the Company's stock on the date of award. The Company recorded an expense of $145,000 and $153,000 for the years ended December 31, 2016 and 2015, respectively, in respect of such restricted share units. In February and July 2015, the Company granted 7,500 restricted share units to two of its directors. The restricted share units vested in August 2016. The fair value of these restricted share units was estimated based on the market value of the Company's stock on the date of award. The Company recorded an expense of $20,000 and $24,000 for the years ended December 31, 2016 and 2015, respectively in respect of such restricted share units. In January 2016, the Company granted an aggregate of 189,177 restricted share units to the Company's employees. The restricted share units are subject to vesting over four years commencing on January 1, 2016. The fair value of these restricted share units is estimated based on the market value of the Company's stock on the date of award. The Company recorded an expense of $301,000 in the year ended December 31, 2016 in respect of such restricted share units. In August 2016, the Company granted an aggregate of 33,750 restricted share units to its directors. The restricted share units will vest as of the date of the Company's annual meeting of shareholders in 2017. The fair value of these restricted share units is estimated based on the market value of the Company's stock on the date of award. The Company recorded an expense of $98,000 in the year ended December 31, 2016 in respect of such restricted share units. Restricted share units granted to employees and directors: Number of restricted share units upon exercise 2016 2015 2014 Outstanding at the beginning of the year 333,274 269,231 - Granted 222,927 167,898 277,249 Vested (82,463 ) (60,344 ) Forfeited (101,661 ) (43,511 ) (8,018 ) Outstanding at the end of the year 372,077 333,274 269,231 c. Share based compensation expense The following table illustrates the effect of share-based compensation (including restricted shares and restricted share units information) expense on the consolidated statement of operations and comprehensive income (loss): Year ended December 31 2016 2015 2014 U.S. dollars in thousands Cost of revenues $ 140 $ 108 $ 51 Research and development expenses -net 358 255 103 Selling and marketing expenses 811 362 146 General and administrative expenses 1,271 908 552 $ 2,580 $ 1,633 $ 852 d. Accumulated other comprehensive loss: December 31 2016 2015 2014 U.S. dollars in thousands Unrealized loss on marketable securities* $ (465 ) $ (284 ) $ (125 ) Currency translation adjustment (386 ) (275 ) (177 ) Unrealized gain from cash flow hedge** 415 88 238 $ (436 ) $ (471 ) $ (64 ) * In the years ended December 31, 2016 and 2015, an amount of $95,000 and $108,000, respectively, in respect of unrealized loss from marketable securities was reclassified from accumulated other comprehensive income (loss) into financial expenses. ** In the year ended December 31, 2016, amounts of $65,000 and $(12,000) in respect of unrealized gain (loss) from cash flow hedge were reclassified from accumulated other comprehensive income (loss) into financial income and revenues, respectively. In the year ended December 31, 2015, an amount of $939,000 in respect of unrealized gain from cash flow hedge was reclassified from accumulated other comprehensive income (loss) into revenues. In the year ended December 31, 2014, amounts of $60,000 and $470,000 in respect of unrealized gain (loss) from cash flow hedge were reclassified from accumulated other comprehensive income (loss) into financial income and revenues, respectively.

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 10 - TAXES ON INCOME: a. The Company The Company is taxed according to Israeli tax laws: 1) Measurement of results for tax purposes ASC 740-10-25, "Income Taxes", prohibits the recognition of deferred tax liabilities or assets that arise from differences between the financial reporting and tax bases of assets and liabilities that are premeasured from the local currency into dollars using historical exchange rates, and that result from changes in exchange rates or indexing for tax purposes. Consequently, the abovementioned differences were not reflected in the computation of deferred tax assets and liabilities. Starting in the year ended December 31, 2014, the Company elected to compute its taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in dollars. Applying these regulations reduces the effect of dollar-NIS exchange rate on the Company’s Israeli taxable income. 2) Tax rates The income of the Company (other than income from "Approved Enterprise" or "Benefited Enterprise", see 3. below) is taxed at the regular corporate tax rate. On December 6, 2011, the "Tax Burden Distribution Law" Legislation Amendments (2011) was published. Under this law, the corporate tax rate was set at 25% as from 2012 and thereafter. On August 5, 2013, the Law for Change of National Priorities (Legislative Amendments for Achieving the Budgetary Goals for 2013-2014), 2013 was published. Under this law, the corporate tax rate was raised to 26.5% beginning in 2014 and thereafter. In January 2016, the Law for the Amendment of the Income Tax Ordinance (No. 216) was published, enacting a reduction of corporate tax rate in 2016 and thereafter, from 26.5% to 25%. In December 2016, the Economic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the 2017 and 2018 Budget Year), 2016 was published, introducing a gradual reduction in corporate tax rate from 25% to 23%. However, the law also included a temporary provision setting the corporate tax rate in 2017 at 24%. As a result, the corporate tax rate will be 24% in 2017 and 23% in 2018 and thereafter . 3) Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the "Investment Law") Under the Investment Law, including Amendment No. 60 to the Investment Law that was published in April 2005, by virtue of the Approved Enterprise or Benefited Enterprise status granted to certain of its production facilities the Company is entitled to various tax benefits. The main benefit arising from such status is the reduction in tax rates on income derived from an Approved Enterprise. Income derived from Approved or Benefited Enterprises is tax exempt for a period of up to ten years period of benefits. The period of tax benefits, as described above, is subject to limitations of the earlier of 12 years from the commencement of production, or 14 years from the date of approval. As of December 31, 2016, the period of benefits has not yet commenced. In the event of distribution of cash dividends from income which was tax exempt as above, the amount distributed will be subject to the tax rate it was exempted from. The Company is entitled to claim accelerated depreciation in respect of equipment used by the Approved or Benefited Enterprises during five tax years. Entitlement to the above benefits is conditioned upon the Company fulfilling the conditions stipulated by the Investment Law and regulations published thereunder, and in the certificate of approval for the specific investments in Approved Enterprises. In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, with the addition of linkage differences to the Israeli consumer price index and interest. 4) Amendment of the Investment Law Under an amendment 68 to the Investment Law (“Amendment 68”), a uniform corporate tax rate will apply to all qualifying industrial income of such company The benefits are granted to companies that qualify under criteria set forth in the Investment Law; for the most part, those criteria are similar to the criteria that have existed in the Investment Law prior to its amendment and the benefit period is unlimited in time. Under the transitional provisions of the Investment Law, a company is allowed to continue to enjoy the tax benefits available under the Investment Law prior to its amendment until the end of the period of benefits, as defined in the Investment Law. In each year during the period of benefits of its Approved or Benefitted Enterprises, the Company will be able to opt for application of the Amendment, thereby making available to itself the tax rates as above. The Company's election to apply the Amendment is irrevocable. As of December 31, 2016, the Company decided not to adopt the application of Amendment 68. 5) Losses for tax purposes, carried forward to future years Carryforward tax losses of the Company at December 31, 2016, approximated $7 million and can be carried forward without expiration. b. Non-Israeli Subsidiaries Subsidiaries that are incorporated outside of Israel are assessed for tax under the tax laws in their countries of residence. The principal tax rates (Federal and State) applicable to the subsidiaries incorporated in the U.S. is approximately 40%. c. Tax assessments The Company and its subsidiaries have not been assessed since incorporation. In accordance with the Israeli Income Tax Ordinance, tax assessments of the Company through tax year 2012 are considered final. d. Income (loss) before income taxes is composed of the following: Year ended December 31 2016 2015 2014 U.S. dollars In thousands Israel $ (3,935 ) $ 5,742 $ 7,138 Non-Israeli subsidiaries 1,078 903 653 $ (2,857 ) $ 6,645 $ 7,791 e. Taxes on income non-Israeli subsidiaries $ 458 $ 407 $ 406 f. Uncertain tax positions As of December 31, 2016 and 2015, the Company had not accrued a provision for uncertain tax positions. g. Deferred income taxes Deferred taxes are computed using the tax rates expected to be in effect when those differences reverse. Since the Company is entitled to a tax exemption for a period of ten years, the tax rate used in computation of deferred taxes on its carry forward losses and timing differences is zero. h. Reconciliation of theoretical tax expense to actual tax expense: Year ended December 31 2016 2015 2014 U.S. dollars in thousands Income (loss) before taxes on income $ (2,857 ) $ 6,645 $ 7,791 Theoretical tax expenses (benefit) at the statutory rate (2014 and 2015– 26.5%; 2016-25%) (714 ) 1,761 2,065 Increase (decrease) in taxes on income due to: Computation of deferred taxes at a rate, which is different than statutory rate 245 (1,194 ) (1,314 ) Difference between income reported for tax purposes and income for financial reporting purposes – mainly dollar – NIS differences (738 ) (675 ) Non-deductible expenses- mainly share-based compensation expense 655 452 256 Different effective tax rates and taxable income applicable to the subsidiaries 272 126 74 Taxes on income $ 458 $ 407 $ 406

SUPPLEMENTARY FINANCIAL STATEME

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION	12 Months Ended
	Dec. 31, 2016
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION	NOTE 11 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION: December 31 2016 2015 U.S. dollars a. Accounts receivable - other: Advance to supplier $ 97 $ 71 Institutions 700 1,291 Innovation Center (See Note 8d(1)) 78 54 Fair value of derivatives 601 423 Prepaid expenses and sundry 551 519 $ 2,027 $ 2,358 b. Accounts payable and accruals - other Employees and payroll related institutions $ 777 $ 1,541 Provision for vacation and recreation pay 482 468 Royalties payable 135 106 Fair value of derivatives 59 45 Accrued expenses and sundry 2,350 3,267 $ 3,803 $ 5,427 Year ended December 31 2016 2015 2014 U.S. dollars in thousands c. Research and development expenses - net: Total expenses $ 7,601 $ 6,275 $ 6,131 Less - participation and grants 232 126 145 $ 7,369 $ 6,149 $ 5,986 d. Financial income (expenses) - net: Interest expenses and other bank charges $ (169 ) $ (152 ) $ (139 ) Interest income 674 601 332 Foreign exchange gain (losses) – net (310 ) (311 ) 276 Gain in respect of derivatives – net 62 333 30 $ 257 $ 471 $ 499

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 12 - FAIR VALUE MEASUREMENT Financial items carried at fair value as of December 31, 2016 and 2015 are classified in the tables below in one of the three categories described in Note 1u: December 31, 2016 U.S. dollars in thousands Level 1 Level 2 Cash and cash equivalents - cash deposits $ 7,581 Marketable securities - debt securities 52,746 Derivatives: Forward contracts and currency options (current liabilities) designated as hedging instruments $ (59 ) Forward contracts and currency options (current assets) designated as hedging instruments 600 Currency options (current assets) 1 $ 60,327 $ 542 December 31, 2015 U.S. dollars in thousands Level 1 Level 2 Cash and cash equivalents - cash deposits $ 21,987 Marketable securities - debt securities 37,369 Derivatives: Forward contracts and currency options (current liabilities) designated as hedging instruments $ (42 ) Currency options (current liabilities) (3 ) Forward contracts and currency options (current assets) designated as hedging instruments 417 Currency options (current assets) 6 $ 59,356 $ 378 Foreign exchange risk management As of December 31, 2016 and 2015, the Company has entered into forward exchange contracts in respect of forecasted sales transactions at a notional amount of €5.3 million and €8.5 million, respectively (approximately $5.6 million and $9.2 million at December 31, 2016 and 2015, respectively). Such transactions were entered into to reduce the exposure from sales denominated in euros. These transactions qualify for cash flow hedge accounting. As of December 31, 2016 and 2015 the Company has entered into collar deal contracts in respect of forecasted operating expenses at a notional amount of NIS 7.3 million and NIS 33 million, respectively (approximately $1.9 million and $8.7 million at December 31, 2016 and 2015, respectively).

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 13 - MARKETABLE SECURITIES: a. Available-for-sale securities Available-for-sale securities are comprised of debt securities. As of December 31, 2016 and 2015 the fair value, amortized cost and gross unrealized holding gains and losses of such securities are as follows: Fair value Amortized cost Unrealized holding gains Unrealized holding losses U.S. dollars in thousands December 31, 2016 $ 52,746 $ 53,084 $ 8 $ 346 December 31, 2015 $ 37,369 $ 37,653 $ 69 $ 353 Investments in marketable securities are classified based on the remaining period until maturity. b. Contractual maturities The contractual maturities of debt securities at December 31, 2016 are as follows: U.S. dollars 2017 $ 19,594 2018 10,458 2019 9,084 2020 and thereafter 13,610 $ 52,746

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 14 - RELATED PARTIES: Year ended December 31 2016 2015 2014 U.S. dollars in thousands Directors' fees $ 449 $ 375 $ 246 At December 31, 2016, there were 202,504 options outstanding with an average exercise price of $5.28 that were granted to directors. At December 31, 2016, 165,354 out of these options were exercisable. As to restricted shares and restricted share units granted to the directors, see Note 9b.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS (LOSS) PER SHARE:
EARNINGS (LOSS) PER SHARE	NOTE 15 - EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per share for the years indicated (in thousands, except per share amounts): Year ended December 31 2016 2015 2014 Basic earnings (loss) per share: Net income (loss) $ (2,923 ) $ 6,683 $ 7,838 Net income (loss) applicable to ordinary shareholders –basic $ (2,923 ) $ 6,683 $ 7,838 Weighted average ordinary shares outstanding 22,739,181 22,506,955 21,902,057 Basic earnings (loss) per share $ (0.13 ) $ 0.30 $ 0.36 Diluted earnings (loss) per share: Net income (loss) applicable to ordinary shareholders – diluted $ (2,923 ) $ 6,683 $ 7,838 Weighted average number of shares used in the computation of basic earnings per share 22,739,181 22,506,955 21,902,057 Add - additional shares from the assumed exercise of employee options, restricted shares and restricted share units vesting - 775,910 1,308,516 Weighted average number of shares used in the computation of diluted earnings per share 22,739,181 23,282,865 23,210,573 Diluted earnings (loss) per share $ (0.13 ) $ 0.29 $ 0.34 The computation of diluted loss per share for the year ended December 31, 2016 excluded 1,732,658 options, 48,775 restricted shares and 250,484 restricted share units to employees and directors on a dilutive weighted average basis, because their inclusion would have had an anti-dilutive effect on the diluted loss per share. For the year ended December 31, 2015, 881,733 options, 77,996 restricted shares and 31,391 restricted share units to employees and directors were excluded from the calculation of the diluted earnings per share for the year since their effect was anti-dilutive or certain performance conditions were not satisfied at the end of the year. For the year ended December 31, 2014, 552,001 options to employees were excluded from the calculation of the diluted earnings per share for the year since their effect was anti-dilutive

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
General	a. General Enzymotec Ltd. (the "Company") is an Israeli company, which, together with its subsidiaries, develops, manufactures, markets and sells innovative bio-functional lipid ingredients, as well as final products, based on sophisticated proprietary processes and technologies. The Company's sales are made to companies that market dietary supplements, to distributors related to those companies, to nutrition companies that provide balanced nutrition to babies and to pharmaceutical companies. In the VAYA Pharma segment, the majority of the products are sold directly to customers in the U.S. through wholesalers and through an online pharmacy which is operated by a third-party vendor. As to sales by geographic locations and major customers, see Note 5. In June 2007, the Company entered into a joint collaboration agreement with a Swedish vegetable oil company (the "Partner" or "AAK") for the manufacture, marketing and sale of products to the infant food industry and established Advance Lipids AB, a Swedish company jointly owned by both parties in equal proportions ("Advanced Lipids") for this purpose, see also Note 4.
Use of estimates in preparation of financial statements	b. Use of estimates in preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to contingencies, derivatives, allowance for doubtful debts and inventory levels.
Functional currency	c. Functional currency The U.S. dollar ("dollar") is the currency of the primary economic environment in which the operations of the Company are conducted. The majority of the Company's sales are denominated in dollars; the majority of the Company’s expenses are incurred in dollars; and the majority of the Company’s financing has been provided in dollars. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the consolidated statements of operations and comprehensive income (loss) (indicated below), the following exchange rates are used: (i) for transactions - exchange rates at transaction dates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) - historical exchange rates. Currency transaction gains and losses are recorded in financial income or expenses, as appropriate. The functional currency of the Company's equity investee, Advanced Lipids, is the Swedish Krona, which is the currency of the primary economic environment in which the operations of Advanced Lipids are conducted. Currency translation adjustments are presented within other comprehensive income (loss).
Principles of consolidation	d . Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been fully eliminated. Profits from intercompany sales have also been eliminated.
Investment in equity investees	e. Investment in equity investees The Company’s investment in equity investees, which is a less-than-majority-owned entity in which the Company exercises significant influence over operating and financial policies, is accounted for using the equity method of accounting. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed profits or losses of such company. The Company’s profits from equity investees have been reflected as "share in profits of equity investee" in the consolidated statements of operations and comprehensive income (loss).
Cash equivalents	f. Cash equivalents The Company considers all highly liquid investments, which include short-term bank deposits (up to three months from date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents.
Inventories	g. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or market. The inventories are determined as follows: Raw materials and supplies - on the "first-in, first-out" basis; Products in process and finished products: the raw and packaging materials on the "first-in, first-out" basis; the capitalized production cost – on an average basis over the production period.
Investment in securities	h. Investment in securities Investment in securities consists of debt securities classified as available-for-sale and recorded at fair value. The fair value of quoted securities is based on current market value. Unrealized gains (losses) of available-for-sale securities, net of taxes, are reflected in other comprehensive income (loss). Unrealized losses considered to be temporary are reflected in other comprehensive income (loss); unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for debt securities are included in financial income (expenses) - net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment are charged to income included in financial income (expenses) - net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss).
Intangible assets	i. Intangible assets Intangible assets represent licenses to sell in certain territories (see also Note 8e (1)) and are shown at historical cost. Licenses have a finite useful life and are carried at cost, net of accumulated amortization. Amortization is calculated using the straight-line method over the estimated useful life of the license.
Property, plant and equipment	j. Property, plant and equipment These assets are stated at cost, net of accumulated depreciation and amortization. The assets are depreciated by the straight-line method on the basis of their estimated useful lives. Annual rates of depreciation are as follows: % Computers nd software 33 Buildings 2 Vehicles 15 Manufacturing equipment 7-10 Laboratory equipment 7-20 (Mainly 15%) Furniture and office equipment 6-15 Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements.
Impairment of long-lived assets	k. Impairment of long-lived assets The Company tests long-lived assets (including intangible assets) for impairment whenever events or circumstances present an indication of impairment. If the sum of expected future cash flows (undiscounted and without interest charges) of the assets is less than the carrying amount of such assets, an impairment loss would be recognized. The assets would be written down to their estimated fair values, calculated based on the present value of expected future cash flows (discounted cash flows), or some other fair value measure.
Revenue recognition	l. Revenue recognition The Company recognizes revenue from sales of its products to customers, including distributors, when persuasive evidence of sales arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. See also Note 4 for timing of revenue recognition related to the Company's joint collaboration agreement. The Company provides a right of return to its U.S. distributors upon expiry of the medical food products sold in the VAYA Pharma segment. Accordingly, the Company records a reserve for estimated sales returns based on historical experience as well as specific factors, such as levels of inventory in the distribution channel, product dating and expiration. Returns to date have been immaterial. Revenues from product sales are also recorded net of cash discounts and distribution fees, which can be reasonably estimated.
Research and development expenses	m. Research and development expenses Research and development expenses are charged to income as incurred. Participation from government departments and from research foundations for development of approved projects is recognized as a reduction of expense as the related costs are incurred. The main components of the research and development expenses are salaries and related expenses, laboratory, clinical research and regulatory related expenses.
Contingencies	n. Contingencies Certain conditions may exist as of the balance sheet date, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. Management assesses such contingent liabilities and the potential exposure involved relative to insurance coverage, if any, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in Accounting Standards Codification ("ASC") 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantees are disclosed.
Income taxes	o. Income taxes Deferred income taxes are determined by the asset and liability method based on the estimated future tax effects of differences between the financial accounting and the tax bases of assets and liabilities under the applicable tax law. Deferred tax balances are computed using the tax rates expected to be in effect at the time when these differences reverse. Valuation allowances in respect of the deferred tax assets are provided when it is more likely than not that all or a portion of the deferred income tax assets will not be realized. See Note 10g for additional information regarding deferred taxes. The Company assesses its valuation allowance considering different indicators, including profitability of the different entities in the different tax jurisdictions, the ability to utilize the deferred tax assets in subsequent years, etc. Upon the distribution of dividends from the tax-exempt income of an "Approved Enterprise" or "Benefitted Enterprise" (see also Note 10a (3)), the amount distributed is subject to tax at the rate that would have been applicable had the Company not been exempted from payment thereof. The Company intends to permanently reinvest the amounts of tax exempt income and it does not intend to distribute such dividends. Therefore, no deferred income taxes have been provided in respect of such tax-exempt income. The Company may incur an additional tax liability in the event of an inter-company dividend distribution from foreign subsidiaries; no additional deferred income taxes have been provided, since it is the Company’s policy not to distribute dividends in the foreseeable future that may result in additional tax liability. Taxes that would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing deferred income taxes, as it is the Company’s intent and ability to hold these investments. Tax benefits recognized in the consolidated financial statements are those that management deems at least more likely than not to be sustained, based on technical merits. The amount of benefits recorded for these tax benefits is measured as the largest benefit management deems more likely than not to be sustained.
Share-based compensation	p. Share-based compensation The Company accounts for employees and directors share-based compensation awards classified as equity awards using the grant-date fair value method. The fair value of share-based compensation transactions is recognized as an expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. Performance-based awards are expensed over the requisite service period when the achievement of performance criteria is probable. The Company elected to recognize compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method based on the multiple-option award approach. When options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted is measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method.
Shipping and handling costs	q. Shipping and handling costs Shipping and handling costs on sales are classified as a component of cost of revenues.
Advertising	r. Advertising Costs related to advertising and promotion of products, are charged to selling and marketing expense as incurred.
Earnings per share	s. Earnings (loss) per share Basic earnings (loss) per share are computed by dividing net income or loss applicable to ordinary shareholders by the weighted average number of shares of the Company's ordinary shares outstanding for each period. Diluted earnings (loss) per share are calculated by dividing net income or loss applicable to ordinary shareholders by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares are comprised of: incremental ordinary shares issuable upon the exercise of share options, restricted shares or warrants, using the treasury stock method. For the Company's performance-vested share awards, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all awards granted.
Derivatives	t. Derivatives The Company purchases foreign exchange derivative financial instruments (mainly forward exchange contracts, and written and purchased currency options). The transactions are designed to hedge the Company’s currency exposure. Derivatives that do not qualify for hedge accounting are recognized in the balance sheet at their fair value, with changes in the fair value recognized as a component of “financial income (expenses) - net” in the consolidated statements of operations and comprehensive income (loss). Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of other comprehensive income or loss and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings. For derivatives that do not qualify for hedge accounting, the cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging.
Fair value measurement	u. Fair value measurement The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
Concentration of credit risks, trade receivables and suppliers	v. Concentration of credit risks, trade receivables and suppliers Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and trade receivables. The Company deposits cash and cash equivalents with highly rated financial institutions, mainly Israeli and U.S. banks. Deposits in U.S. banks are federally insured up to $250,000 per account. The Company has experienced from time to time credit losses in accounts receivables and believes it has appropriate allowance with respect to credit risk on these instruments. The Company performs ongoing credit evaluations to estimate the need for maintaining reserves for potential credit losses. An allowance for doubtful accounts is recognized on a specific basis with respect to those amounts that the Company has determined to be doubtful of collection. Following are the changes in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014. Year ended December 31 2016 2015 2014 U.S. dollars in thousands Balance at beginning of year $ - $ 245 $ - Charged to cost and expenses 935 * - 245 Released from doubtful accounts - (245 ) - Balance at end of year $ 935 $ - $ 245 * . At December 31, 2016, no customers accounted for more than 10% of net accounts receivable. At December 31, 2015, two customers accounted for more than 10% of net accounts receivable with balances of $1,929,000 and $1,658,000. The Company is dependent on third parties to supply krill meal, an essential raw material for the production of krill oil, which accounted for 23.2%, 35.3% and 40.6% of total net revenues in the years ended December 31, 2016, 2015 and 2014, respectively. The Company currently purchases krill meal from a limited number of suppliers. There is only a limited number of vessels capable of producing krill meal onboard. In 2014, the Company also purchased frozen krill, which, while more expensive to process into krill meal onshore compared to krill from vessels that process krill meal onboard, is more readily obtainable. The Company also signed a toll processing agreement in 2014 with a toll processor for processing the frozen krill into krill meal. The Company intends to meet its krill meal needs in the future by sourcing krill meal from either or both of vessels that process krill meal onboard and suppliers of frozen krill. However, if the Company, for any reason, is no longer able to obtain the krill meal from a supplier on terms reasonable to it, or at all, this would have a material adverse effect on its results of operations and financial condition.
Recently issued accounting pronouncements	w. Recently issued accounting pronouncements In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ( ASU ) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. A financial instrument is defined as cash, evidence of ownership interest in a company or other entity, or a contract that both: (i) imposes on one entity a contractual obligation either to deliver cash or another financial instrument to a second entity or to other financial instruments on potentially unfavorable terms with the second entity and (ii) conveys to that second entity a contractual right either to receive cash or another financial instruments from the first entity or to exchange other financial instruments on potentially favorable terms with the first entity. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2017 (January 1, 2018 for the Company) and interim periods within those annual periods with earlier application permitted as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of the pending adoption of this guidance on its consolidated financial statements and related disclosures. In February 2016, the FASB issued No. 2016-02, Leases (Topic 842) which revise accounting guidance. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all leases, other than leases that meet the definition of a short-term lease (i.e., leases with terms under 12 months). Consistent with current generally accepted accounting principles, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU requires additional disclosures. The new standard is effective for fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition approach. has not yet determined whether it will elect early adoption and is currently in the initial stage of evaluating the potential impact of the pending adoption of this guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) , which simplifies certain aspects of the accounting for share-based payments, including accounting for income taxes, classification of awards as either equity or liabilities, on the statement of cash flows as well as allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The standard also requires that shares withheld to satisfy tax withholding obligations associated with the vesting of restricted stock awarded to employees to be presented as a financing activity in the statement of cash flows. The ASU is effective for annual reporting periods (including interim periods within those annual reporting periods) beginning after December 15, 2016 and all amendments in the ASU that apply must be adopted in the same period. The Company plans to adopt this ASU in the first quarter of 2017. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures . In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory , which provides guidance on current accounting for inventory measurement. The new guidance requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is defined by the guidance as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016. The Company adopted the new guidance and it had an immaterial the Company's and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In 2016, the FASB issued four amendments to ASU 2014-09. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017 (January 1, 2018 for the Company) (early adoption is permitted for the interim and annual periods beginning on or after December 15, 2016, January 1, 2017 for the Company). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is expected to adopt this standard using the modified retrospective method in the first quarter of 2018. has not yet determined whether it will elect early adoption and currently evaluating of the pending adoption of

SIGNIFICANT ACCOUNTING POLICI22

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Annual Rates of Depreciation	% Computers nd software 33 Buildings 2 Vehicles 15 Manufacturing equipment 7-10 Laboratory equipment 7-20 (Mainly 15%) Furniture and office equipment 6-15
Schedule of changes in the allowance for doubtful accounts	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Balance at beginning of year $ - $ 245 $ - Charged to cost and expenses 935 * - 245 Released from doubtful accounts - (245 ) - Balance at end of year $ 935 $ - $ 245

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT:
Schedule of Property and Equipment	December 31 2016 2015 U.S. dollars in thousands Manufacturing equipment $ 24,647 $ 23,613 Buildings 10,754 10,605 Laboratory equipment 3,853 3,613 Land* 951 951 Furniture, office equipment and computers 2,291 1,837 Leasehold improvements 161 161 Vehicles 16 16 42,673 40,796 Less: accumulated depreciation and amortization 13,665 11,088 $ 29,008 $ 29,708 * Land includes long-term leasehold rights in Israel with useful lives of 98 years.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Operating Segments	Segment data for the year ended December 31, 2016 is as follows: Nutrition VAYA Pharma Total Elimination*** Consolidated U.S. dollars in thousands Net revenues from external customers $ 49,658 $ 11,214 $ 60,872 $ (13,176 ) $ 47,696 Cost of revenues* 27,847 2,382 30,229 (12,660 ) 17,569 Gross profit* 21,811 8,832 30,643 (516 ) 30,127 Operating expenses** 11,581 17,591 29,172 29,172 Depreciation and amortization 2,237 490 2,727 Adjusted EBITDA $ 12,467 $ (8,269 ) Share-based compensation expense 2,580 Business development related expenses 554 Provision for bad debt related to payment intermediator 935 Operating loss $ (3,114 ) Financial income - net 257 Loss before taxes on income $ (2,857 ) * Including depreciation and amortization but excluding share-based compensation expense. ** Including depreciation and amortization but excluding share-based compensation expense, business development related expenses . *** Representing the change from proportionate consolidation to the equity method of accounting. Segment data for the year ended December 31, 2015 is as follows: Nutrition VAYA Pharma Total Elimination** Consolidated U.S. dollars in thousands Net revenues from external customers $ 54,163 $ 8,471 $ 62,634 $ (12,243 ) $ 50,391 Cost of revenues* 29,686 1,506 31,192 (11,665 ) 19,527 Gross profit* 24,477 6,965 31,442 (578 ) 30,864 Operating expenses* 12,704 10,356 23,060 (3 ) 23,057 Depreciation and amortization 2,127 200 2,327 Adjusted EBITDA $ 13,900 $ (3,191 ) Share-based compensation expense 1,633 Operating Income $ 6,174 Financial income - net 471 Income before taxes on income $ 6,645 * Including depreciation and amortization but excluding share-based compensation expense. ** Representing the change from proportionate consolidation to the equity method of accounting. Segment data for the year ended December 31, 2014 is as follows: Nutrition VAYA Pharma Total Elimination*** Consolidated U.S. dollars in thousands Net revenues from external customers $ 55,815 $ 5,641 $ 61,456 $ (14,353 ) $ 47,103 Cost of revenues* 30,605 1,435 32,040 (13,775 ) 18,265 Gross profit* 25,210 4,206 29,416 (578 ) 28,838 Operating expenses** 13,347 6,957 20,304 (3 ) 20,301 Depreciation and amortization 2,112 196 2,308 Adjusted EBITDA $ 13,975 $ (2,555 ) Secondary offering expenses 393 Share-based compensation expense 852 Operating Income $ 7,292 Financial expenses - net 499 Income before taxes on income $ 7,791 * Including depreciation and amortization but excluding share-based compensation expense. ** Including depreciation and amortization but excluding share-based compensation expense and Secondary offering expenses. *** Representing the change from proportionate consolidation to the equity method of accounting.
Schedule of Revenues by Geographic Area	Year ended December 31 2016 2015 2014 U.S. dollars in thousands America (*) $ 25,267 $ 29,635 $ 25,810 Europe 10,146 10,071 10,395 Australia 3,285 2,188 2,388 Asia (**) 7,749 7,173 7,019 Israel 1,249 1,324 1,491 Total revenues $ 47,696 $ 50,391 $ 47,103 (*) including net revenues to the United States of America of $22,789,ooo, $25,826,000 and $20,614,000 for the years ended December 31, 2016, 2015 and 2014, respectively. (**) including net revenues to China of $5,911,000, $5,480,000 and $4,860,000 for the years ended December 31, 2016, 2015 and 2014, respectively.
Schedule of Revenue from Sales by Major Products	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Krill oil (Nutrition Segment) $ 11,058 $ 17,776 $ 19,131 Enzyme for the production of InFat (Nutrition Segment), see Note 4 $ 15,139 $ 13,950 $ 13,280 Vayarin (VAYA Pharma Segment) $ 9,030 $ 6,395 $ 4,203 Line of PS products (Nutrition Segment) $ 10,015 $ 9,999 $ 8,385
Schedule of Revenues of Principal Customers	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Customer A $ 1,344 $ 5,528 $ 4,173

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	December 31 2016 2015 U.S. dollars in thousands Raw materials and supplies $ 11,929 $ 12,927 In-process inventories 11,428 6,379 Finished goods 2,974 2,509 $ 26,331 $ 21,815

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Schedule of Assumptions Used to Value Options Granted	Year ended December 31 2016 2015 2014 Dividend yield 0 % 0 % 0 % Expected volatility 63 % 64 % 71 % Risk-free interest rate 2.19 % 2.07 % 2.44 % Contractual term 10 years 10 years 10 years Early exercise multiple 191%-215 % 178%-203 % 178%-203 %
Schedule of Share Option Activity	Year ended December 31 2016 2015 2014 Number of shares upon exercise Weighted average exercise price* Number of shares upon exercise Weighted average exercise price* Number of shares upon exercise Weighted average exercise price* Outstanding at the beginning of the year 1,672,684 6.87 1,587,612 6.64 1,967,784 2.51 Granted 412,059 9.80 347,563 7.38 554,433 13.76 Exercised (51,746 ) 3.69 (175,482 ) 3.04 (908,169 ) 1.94 Forfeited (257,738 ) 11.96 (87,009 ) 12.55 (26,436 ) 9.73 Outstanding at the end of the year 1,775,259 6.90 1,672,684 6.87 1,587,612 6.64 Exercisable at the end of the year 1,061,474 4.91 987,568 4.22 1,039,011 2.87
Schedule of Stock Options Outstanding by Exercise Price Range	Options outstanding Options exercisable Shares Shares upon Aggregate upon Aggregate exercise of Weighted intrinsic exercise of Weighted intrinsic options average value options average value outstanding remaining (U.S. outstanding remaining (U.S. Exercise at end of contractual dollars in at end of contractual dollars in prices * year life thousands) year life thousands) 0.0001 47,600 0.79 312 47,600 0.79 312 1.47 193,800 1.61 984 193,800 1.61 984 3.12 485,316 3.80 1,665 485,316 3.80 1,665 5.34 79,578 6.26 96 79,578 6.26 96 6.97 185,820 8.02 - 48,038 8.06 - 7.84 110,831 8.01 - 27,706 8.01 - 8.35 3,750 8.58 - 3,750 8.58 - 8.49 33,750 9.65 - - - 9.92 310,123 9.01 - - - 13.76 311,091 7.61 - 165,486 7.61 - 14 13,600 6.75 - 10,200 6.75 - 1,775,259 6.02 3,057 1,061,474 4.39 3,057 * In dollars per share.
Summary of restricted share units	Number of restricted share units upon exercise 2016 2015 2014 Outstanding at the beginning of the year 333,274 269,231 - Granted 222,927 167,898 277,249 Vested (82,463 ) (60,344 ) Forfeited (101,661 ) (43,511 ) (8,018 ) Outstanding at the end of the year 372,077 333,274 269,231
Schedule of Stock-Based Compensation Expense	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Cost of revenues $ 140 $ 108 $ 51 Research and development expenses -net 358 255 103 Selling and marketing expenses 811 362 146 General and administrative expenses 1,271 908 552 $ 2,580 $ 1,633 $ 852
Schedule of Accumulated Other Comprehensive Loss	December 31 2016 2015 2014 U.S. dollars in thousands Unrealized loss on marketable securities* $ (465 ) $ (284 ) $ (125 ) Currency translation adjustment (386 ) (275 ) (177 ) Unrealized gain from cash flow hedge** 415 88 238 $ (436 ) $ (471 ) $ (64 ) * In the years ended December 31 2016 and 2015, an amount of $95,000 and $108,000, respectively, in respect of unrealized loss from marketable securities was reclassified from accumulated other comprehensive income (loss) into financial expenses. ** In the year ended December 31, 2016, amounts of $65,000 and $(12,000) in respect of unrealized gain (loss) from cash flow hedge were reclassified from accumulated other comprehensive income (loss) into financial income and revenues, respectively.

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Before Income Taxes	Year ended December 31 2016 2015 2014 U.S. dollars In thousands Israel $ (3,935 ) $ 5,742 $ 7,138 Non-Israeli subsidiaries 1,078 903 653 $ (2,857 ) $ 6,645 $ 7,791 e. Taxes on income non-Israeli subsidiaries $ 458 $ 407 $ 406
Reconciliation of Theoretical Tax Expense to Actual Tax Expense	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Income (loss) before taxes on income $ (2,857 ) $ 6,645 $ 7,791 Theoretical tax expenses (benefit) at the statutory rate (2014 and 2015– 26.5%; 2016-25%) (714 ) 1,761 2,065 Increase (decrease) in taxes on income due to: Computation of deferred taxes at a rate, which is different than statutory rate 245 (1,194 ) (1,314 ) Difference between income reported for tax purposes and income for financial reporting purposes – mainly dollar – NIS differences (738 ) (675 ) Non-deductible expenses- mainly share-based compensation expense 655 452 256 Different effective tax rates and taxable income applicable to the subsidiaries 272 126 74 Taxes on income $ 458 $ 407 $ 406

SUPPLEMENTARY FINANCIAL STATE28

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
Schedule of Accounts Receivable	December 31 2016 2015 U.S. dollars a. Accounts receivable - other: Advance to supplier $ 97 $ 71 Institutions 700 1,291 Innovation Center (See Note 8d(1)) 78 54 Fair value of derivatives 601 423 Prepaid expenses and sundry 551 519 $ 2,027 $ 2,358
Schedule of Accounts Payable and Accruals	b. Accounts payable and accruals - other Employees and payroll related institutions $ 777 $ 1,541 Provision for vacation and recreation pay 482 468 Royalties payable 135 106 Fair value of derivatives 59 45 Accrued expenses and sundry 2,350 3,267 $ 3,803 $ 5,427
Schedule of Research and Development Expenses	Year ended December 31 2016 2015 2014 U.S. dollars in thousands c. Research and development expenses - net: Total expenses $ 7,601 $ 6,275 $ 6,131 Less - participation and grants 232 126 145 $ 7,369 $ 6,149 $ 5,986
Schedule of Financial income (expenses), Net	d. Financial income (expenses) - net: Interest expenses and other bank charges $ (169 ) $ (152 ) $ (139 ) Interest income 674 601 332 Foreign exchange gain (losses) – net (310 ) (311 ) 276 Gain in respect of derivatives – net 62 333 30 $ 257 $ 471 $ 499

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value	December 31, 2016 U.S. dollars in thousands Level 1 Level 2 Cash and cash equivalents - cash deposits $ 7,581 Marketable securities - debt securities 52,746 Derivatives: Forward contracts and currency options (current liabilities) designated as hedging instruments $ (59 ) Forward contracts and currency options (current assets) designated as hedging instruments 600 Currency options (current assets) 1 $ 60,327 $ 542 December 31, 2015 U.S. dollars in thousands Level 1 Level 2 Cash and cash equivalents - cash deposits $ 21,987 Marketable securities - debt securities 37,369 Derivatives: Forward contracts and currency options (current liabilities) designated as hedging instruments $ (42 ) Currency options (current liabilities) (3 ) Forward contracts and currency options (current assets) designated as hedging instruments 417 Currency options (current assets) 6 $ 59,356 $ 378

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of fair value, amortized cost and gross unrealized holding gains of available-for-sale securities	Fair value Amortized cost Unrealized holding gains Unrealized holding losses U.S. dollars in thousands December 31, 2016 $ 52,746 $ 53,084 $ 8 $ 346 December 31, 2015 $ 37,369 $ 37,653 $ 69 $ 353
Schedule of contractual maturities of debt securities	U.S. dollars 2017 $ 19,594 2018 10,458 2019 9,084 2020 and thereafter 13,610 $ 52,746

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Balances and Transactions	Year ended December 31 2016 2015 2014 U.S. dollars in thousands Directors' fees $ 449 $ 375 $ 246

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
EARNINGS (LOSS) PER SHARE:
Schedule of Basic and Diluted Earnings (Loss) Per Share	Year ended December 31 2016 2015 2014 Basic earnings (loss) per share: Net income (loss) $ (2,923 ) $ 6,683 $ 7,838 Net income (loss) applicable to ordinary shareholders –basic $ (2,923 ) $ 6,683 $ 7,838 Weighted average ordinary shares outstanding 22,739,181 22,506,955 21,902,057 Basic earnings (loss) per share $ (0.13 ) $ 0.30 $ 0.36 Diluted earnings (loss) per share: Net income (loss) applicable to ordinary shareholders – diluted $ (2,923 ) $ 6,683 $ 7,838 Weighted average number of shares used in the computation of basic earnings per share 22,739,181 22,506,955 21,902,057 Add - additional shares from the assumed exercise of employee options, restricted shares and restricted share units vesting - 775,910 1,308,516 Weighted average number of shares used in the computation of diluted earnings per share 22,739,181 23,282,865 23,210,573 Diluted earnings (loss) per share $ (0.13 ) $ 0.29 $ 0.34

SIGNIFICANT ACCOUNTING POLICI33

SIGNIFICANT ACCOUNTING POLICIES (Depreciation Rates for Property, Plant and Equipment) (Details)	12 Months Ended
	Dec. 31, 2016
Computers and software [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	33.00%
Buildings [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	2.00%
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	15.00%
Manufacturing equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	7.00%
Manufacturing equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	10.00%
Laboratory equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	Mainly 15%
Laboratory equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	7.00%
Laboratory equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	20.00%
Furniture and office equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	6.00%
Furniture and office equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	15.00%

SIGNIFICANT ACCOUNTING POLICI34

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Changes in the allowance for doubtful accounts
Balance at beginning of year			$ 245
Charged to cost and expenses	935	[1]		245
Released from doubtful accounts			(245)
Balance at end of year	$ 935			$ 245
[1]	Provision for bad debt related to payment intermediator.

SIGNIFICANT ACCOUNTING POLICI35

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)Item	Dec. 31, 2014USD ($)
Concentration Risk [Line Items]
FDIC insured limit	$ 250,000	$ 250,000	$ 250,000
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of major customers | Item		2
Accounts Receivable [Member] | Major Customer One [Member]
Concentration Risk [Line Items]
Gross accounts receivable		$ 1,929,000
Accounts Receivable [Member] | Major Customer Two [Member]
Concentration Risk [Line Items]
Gross accounts receivable		$ 1,658,000
Net Revenue [Member] | Krill Oil [Member]
Concentration Risk [Line Items]
Concentration risk percentage	23.20%	35.30%	40.60%

INITIAL PUBLIC OFFERING (IPO)36

INITIAL PUBLIC OFFERING (IPO) AND SECONDARY OFFERING (Details) - USD ($)	Mar. 05, 2014	Oct. 02, 2013
Initial Public Offering [Line Items]
Stock issuance cost of secondary offering	$ 400,000
Ordinary shares [Member]
Initial Public Offering [Line Items]
Issuance of ordinary shares in secondary registered public offering, shares	5,403,685
Secondary registered public offering, price per share	$ 28
Issuance of ordinary shares to underwriter's options in a secondary registered public offering	704,828
IPO [Member]
Initial Public Offering [Line Items]
Ordinary shares issued in the IPO (including the underwriters' option to purchase additional shares), shares		5,073,800
Proceeds from initial public offering, net of issuance costs		$ 62,838,000
IPO price per share		$ 14
IPO option to purchase an additional shares, number of shares		661,800

PROPERTY, PLANT AND EQUIPMENT37

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Cost		$ 42,673	$ 40,796
Less: accumulated depreciation and amortization		13,665	11,088
Net		29,008	29,708
Depreciation and amortization expense		$ 2,577,000	2,215,000	$ 1,941,000
Useful life of long-term leasehold rights		98 years
Manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Cost		$ 24,647	23,613
Buildings [Member]
Property, Plant and Equipment [Line Items]
Cost		10,754	10,605
Laboratory equipment [Member]
Property, Plant and Equipment [Line Items]
Cost		3,853	3,613
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	[1]	951	951
Furniture, office equipment and computers [Member]
Property, Plant and Equipment [Line Items]
Cost		2,291	1,837
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Cost		161	161
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Cost		$ 16	$ 16
[1]	Land includes long-term leasehold rights in Israel with useful lives of 98 years.

JOINT COLLABORATION AGREEMENT (

JOINT COLLABORATION AGREEMENT (Details) - Equity Method Investee Advanced Lipids [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Ownership percentage of joint collaboration	50.00%	50.00%	50.00%
Sales of enzyme to AAK	$ 15,139	$ 13,950	$ 13,280
Receivable balance from AAK	$ 3,527	$ 3,706
Agreement terms	The joint collaboration agreement's initial term ends on December 31, 2016. Thereafter the agreement will be automatically extended for consecutive periods of three years, unless terminated by a notice of either party at least 12 months prior to its expiration.

SEGMENT INFORMATION (Narrative)

SEGMENT INFORMATION (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net revenues	$ 47,696	$ 50,391	$ 47,103
United States of America [Member]
Segment Reporting Information [Line Items]
Net revenues	22,789	25,826	20,614
China [Member]
Segment Reporting Information [Line Items]
Net revenues	$ 5,911	$ 5,480	$ 4,860
Equity Method Investee Advanced Lipids [Member]
Segment Reporting Information [Line Items]
Ownership percentage of joint collaboration	50.00%	50.00%	50.00%

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Reportable Operating Segments) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenues		$ 47,696		$ 50,391		$ 47,103
Cost of revenues	[1]	17,569		19,527		18,265
Gross profit	[1]	30,127		30,864		28,838
Operating expenses		29,172	[2]	23,057	[1]	20,301	[3]
Depreciation and amortization		2,727		2,327		2,308
Secondary offering expenses						393
Share-based compensation expense		2,580		1,633		852
Business development related expenses		554
Provision for bad debt related to payment intermediator		935	[4]			245
Operating Income (Loss)		(3,114)		6,174		7,292
Financial income - net		257		471		499
INCOME (LOSS) BEFORE TAXES ON INCOME		(2,857)		6,645		7,791
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenues		60,872		62,634		61,456
Cost of revenues	[1]	30,229		31,192		32,040
Gross profit	[1]	30,643		31,442		29,416
Operating expenses		29,172	[2]	23,060	[1]	20,304	[3]
Depreciation and amortization		2,727		2,327		2,308
Intersegment Eliminations [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenues	[5]	(13,176)		(12,243)		(14,353)
Cost of revenues	[1],[5]	(12,660)		(11,665)		(13,775)
Gross profit	[1],[5]	(516)		(578)		(578)
Operating expenses	[5]			(3)	[1]	(3)	[3]
Nutrition [Member] | Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenues		49,658		54,163		55,815
Cost of revenues	[1]	27,847		29,686		30,605
Gross profit	[1]	21,811		24,477		25,210
Operating expenses		11,581	[2]	12,704	[1]	13,347	[3]
Depreciation and amortization		2,237		2,127		2,112
Adjusted EBITDA		12,467		13,900		13,975
VAYA Pharma [Member] | Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenues		11,214		8,471		5,641
Cost of revenues	[1]	2,382		1,506		1,435
Gross profit	[1]	8,832		6,965		4,206
Operating expenses		17,591	[2]	10,356	[1]	6,957	[3]
Depreciation and amortization		490		200		196
Adjusted EBITDA		$ (8,269)		$ (3,191)		$ (2,555)
[1]	Including depreciation and amortization but excluding share-based compensation expense.
[2]	Including depreciation and amortization but excluding share-based compensation expense, business development related expenses and a provision for bad debt related to payment intermediator.
[3]	Including depreciation and amortization, but excluding share-based compensation and Secondary offering expenses.
[4]	Provision for bad debt related to payment intermediator.
[5]	Representing the change from proportionate consolidation to the equity method of accounting.

SEGMENT INFORMATION (Schedule41

SEGMENT INFORMATION (Schedule of Geographic Information) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues		$ 47,696	$ 50,391	$ 47,103
America [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	[1]	25,267	29,635	25,810
Europe [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues		10,146	10,071	10,395
Australia [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues		3,285	2,188	2,388
Asia [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	[2]	7,749	7,173	7,019
Israel [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues		$ 1,249	$ 1,324	$ 1,491
[1]	including net revenues to the United States of America of $22,789,ooo, $25,826,000 and $20,614,000 for the years ended December 31, 2016, 2015 and 2014, respectively.
[2]	including net revenues to the China of $5,911,000, $5,480,000 and $4,860,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

SEGMENT INFORMATION (Schedule42

SEGMENT INFORMATION (Schedule of Sales by Product) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue from External Customer [Line Items]
Net revenues	$ 47,696	$ 50,391	$ 47,103
Krill Oil [Member] | Nutrition [Member]
Revenue from External Customer [Line Items]
Net revenues	11,058	17,776	19,131
Enzymes for the production of InFat [Member] | Nutrition [Member]
Revenue from External Customer [Line Items]
Net revenues	15,139	13,950	13,280
Vayarin [Member] | VAYA Pharma [Member]
Revenue from External Customer [Line Items]
Net revenues	9,030	6,395	4,203
Line of PS products [Member] | Nutrition [Member]
Revenue from External Customer [Line Items]
Net revenues	$ 10,015	$ 5,884	$ 5,505

SEGMENT INFORMATION (Schedule43

SEGMENT INFORMATION (Schedule of Sale by Customer) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue, Major Customer [Line Items]
Net revenues	$ 47,696	$ 50,391	$ 47,103
Customer A [Member] | Nutrition [Member]
Revenue, Major Customer [Line Items]
Net revenues	$ 1,344	$ 5,528	$ 4,173

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 11,929	$ 12,927
In-process inventories	11,428	6,379
Finished goods	2,974	2,509
Total	$ 26,331	$ 21,815

INVENTORIES (Narrative) (Detail

INVENTORIES (Narrative) (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Raw material and in-process inventory obsolescence reserve		$ 2,897,000	$ 972,000
Sales Forecast [Member]
Inventory which may not be sold during the next twelve months	$ 12,100,000

EMPLOYEE RIGHTS UPON RETIREME46

EMPLOYEE RIGHTS UPON RETIREMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Contributions made to pension plan and other post retirement obligations	$ 117	$ 114	$ 147
Severance payment expenses	544	449	392
Contribution plan funding	320	314	312
Gain (loss) on pension and other post retirement benefit plans	30	$ 12	$ (78)
Expected insurance contribution, year ending December 31, 2017	440
Expected insurance contribution attributable to contribution plan	$ 330

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Operating Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Lease
2,017	$ 525
2,018	434
2,019	275
2,020	58
Total operating lease expense	1,292
Lease expense	$ 2,295	$ 1,420	$ 868

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands	Mar. 23, 2015Item	Sep. 30, 2014Item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Apr. 22, 2015Item
Loss Contingencies [Line Items]
Royalty expenses			$ 340	$ 194	$ 115
Claim Dismissed released in exchange of cash payment funded by the insurers			6,500
Chief Scientist [Member] | Royalties [Member]
Loss Contingencies [Line Items]
Accrued royalties			$ 3,000
Royalty terms			Under the terms of the Company’s funding from the Innovation Center, royalties of 3%-5% are payable on sales of products developed from a project so funded, up to 100% of the amount of the grant received by the Company (dollar linked with the addition of annual interest at LIBOR rate).
Chief Scientist [Member] | Royalties [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Percentage rate of royalty owed			3.00%
Chief Scientist [Member] | Royalties [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Percentage rate of royalty owed			5.00%
Royalties [Member] | The U.S. Partner [Member]
Loss Contingencies [Line Items]
Accrued royalties			$ 370
Litigation [Member]
Loss Contingencies [Line Items]
Number of claims unpatentable | Item	26
Number of agreed claims | Item	28
Number of remaining claims | Item						2
Litigation [Member] | Stockholders [Member]
Loss Contingencies [Line Items]
Number of stockholders, who filed lawsuits | Item		2
Toll manufacturing agreement [Member]
Loss Contingencies [Line Items]
Period of agreement			10 years
Period of termination of agreement			90 days
Toll manufacturing agreement [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Long term Purchase Commitment Agreement Termination Payment Amount			$ 500

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands		1 Months Ended				2 Months Ended	6 Months Ended	12 Months Ended			24 Months Ended	36 Months Ended
		Aug. 31, 2016shares	Jan. 31, 2016shares	Aug. 31, 2014shares	Aug. 31, 2013shares	Feb. 28, 2015shares	Jul. 31, 2015shares	Dec. 31, 2016USD ($)Item$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2016₪ / shares	Dec. 31, 2013$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total options granted								412,059	347,563	554,433
Outstanding options								1,775,259	1,672,684	1,587,612	1,775,259	1,775,259		1,967,784
Exercise price | $ / shares	[1]							$ 6.90	$ 6.87	$ 6.64	$ 6.90	$ 6.90		$ 2.51
Share-based compensation expense | $								$ 2,580	$ 1,633	$ 852
Closing share price | $ / shares								$ 6.55			$ 6.55	$ 6.55
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total options granted								5,250,983
Ordinary shares, par value per share | ₪ / shares													₪ 0.01
Shares available for issuance								307,756			307,756	307,756
Vesting period								4 years
Options, contractual term								10 years
Options, contractual term from termination								3 months
Weighted average fair value of options granted | $ / shares								$ 3.95	$ 2.75	$ 3.57
Period over which compensation expense will be recognized								3 years
Unrecognized compensation cost related to stock options | $								$ 2,136			$ 2,136	$ 2,136
Stock Option [Member] | Stock Options Subject To Performance Conditions That Were Not Met [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options								62,782			62,782	62,782
Stock Option [Member] | Vesting in Year One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								25.00%
Stock Option [Member] | Vesting in Year Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								25.00%
Stock Option [Member] | Vesting in Year Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								25.00%
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Period over which compensation expense will be recognized					1 year 3 months
Unrecognized compensation cost related to stock options | $								$ 120			$ 120	$ 120
Restricted shares, granted					156,060
Vesting milestones								(i) the vesting of 104,040 restricted shares is subject to the occurrence of a change of control event, as defined; and (ii) the vesting of 52,020 restricted shares is subject to: (a) the occurrence of a change of control event, as defined and (b) the achievement of a market cap milestone, as defined.
Restricted shares that will vest subject to the occurrence of a change of control event					104,040
Restricted shares that will vest after meeting market cap milestone					52,020
Restricted shares which will vest according to their vesting schedule, change in control event								104,040
Restricted shares which will vest according to their vesting schedule, market cap milestone								52,020
Share-based compensation expense | $								$ 545	$ 412	$ 412
Awards granted												165,580
Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted								222,927	167,898	277,249		668,074
Restricted Share Units [Member] | RSUs awarded in August 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Period over which compensation expense will be recognized								1 year 7 months 6 days
Share-based compensation expense | $								$ 430	$ 397	$ 170
Awards granted				277,249
Total unrecognized compensation expense | $								$ 677			677	$ 677
Restricted Share Units [Member] | RSUs awarded in January and February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period over which compensation expense will be recognized								2 years
Share-based compensation expense | $								$ 145	153
Awards granted						160,398
Total unrecognized compensation expense | $								$ 314			314	314
Restricted Share Units [Member] | RSUs awarded in February and July 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Individuals To Whom Awards Granted | Item								2
Share-based compensation expense | $								$ 20	$ 24
Awards granted							7,500
Restricted Share Units [Member] | RSUs awarded in January 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Period over which compensation expense will be recognized								3 years
Share-based compensation expense | $								$ 301
Awards granted			189,177
Total unrecognized compensation expense | $								$ 905			905	905
Restricted Share Units [Member] | RSUs awarded in August 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period over which compensation expense will be recognized								1 year
Share-based compensation expense | $								$ 98
Awards granted		33,750
Total unrecognized compensation expense | $								$ 138			$ 138	$ 138
Restricted Stock Units RSU Subject To Performance Conditions That Were Not Met [Member] | RSUs awarded in January and February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted											31,391
Restricted Stock Units RSU Subject To Vesting Conditions [Member] | RSUs awarded in January and February 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Awards granted						129,007
[1]	In dollars per share.

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Assumptions used in Fair Value of Option Granted) (Details) - Stock Option [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	63.00%	64.00%	71.00%
Risk-free interest rate	2.19%	2.07%	2.44%
Contractual term	10 years	10 years	10 years
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Early exercise multiple	191.00%	178.00%	178.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Early exercise multiple	215.00%	203.00%	203.00%

SHAREHOLDERS' EQUITY (Schedul51

SHAREHOLDERS' EQUITY (Schedule of Stock Options Outstanding) (Details) - $ / shares		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of shares issuable upon exercise
Outstanding at beginning of year		1,672,684	1,587,612	1,967,784
Granted		412,059	347,563	554,433
Exercised		(51,746)	(175,482)	(908,169)
Forfeited		(257,738)	(87,009)	(26,436)
Outstanding at end of year		1,775,259	1,672,684	1,587,612
Exercisable at end of year		1,061,474	987,568	1,039,011
Weighted average exercise price
Outstanding at beginning of year	[1]	$ 6.87	$ 6.64	$ 2.51
Granted	[1]	9.80	7.38	13.76
Exercised	[1]	3.69	3.04	1.94
Forfeited	[1]	11.96	12.55	9.73
Outstanding at end of year	[1]	6.90	6.87	6.64
Exercisable at end of year	[1]	$ 4.91	$ 4.22	$ 2.87
[1]	In dollars per share.

SHAREHOLDERS' EQUITY (Schedul52

SHAREHOLDERS' EQUITY (Schedule of Stock Options Outstanding by Exercise Price Range) (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Options outstanding
Shares upon exercise of options outstanding at end of year		1,775,259
Weighted average remaining contractual life		6 years 7 days
Aggregate intrinsic Value		$ 3,057
Exercise price	[1]	$ 6.90	$ 6.87	$ 6.64	$ 2.51
Options exercisable
Shares upon exercise of options outstanding at end of year		1,061,474
Weighted average remaining contractual life		4 years 4 months 21 days
Aggregate intrinsic value		$ 3,057
Exercise price	[1]	$ 4.91	$ 4.22	$ 2.87
0.0001 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		47,600
Weighted average remaining contractual life		9 months 15 days
Aggregate intrinsic Value		$ 312
Exercise price	[1]	$ 0.0001
Options exercisable
Shares upon exercise of options outstanding at end of year		47,600
Weighted average remaining contractual life		9 months 15 days
Aggregate intrinsic value		$ 312
1.47 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		193,800
Weighted average remaining contractual life		1 year 7 months 10 days
Aggregate intrinsic Value		$ 984
Exercise price	[1]	$ 1.47
Options exercisable
Shares upon exercise of options outstanding at end of year		193,800
Weighted average remaining contractual life		1 year 7 months 10 days
Aggregate intrinsic value		$ 984
3.12 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		485,316
Weighted average remaining contractual life		3 years 9 months 18 days
Aggregate intrinsic Value		$ 1,665
Exercise price	[1]	$ 3.12
Options exercisable
Shares upon exercise of options outstanding at end of year		485,316
Weighted average remaining contractual life		3 years 9 months 18 days
Aggregate intrinsic value		$ 1,665
5.34 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		79,578
Weighted average remaining contractual life		6 years 3 months 4 days
Aggregate intrinsic Value		$ 96
Exercise price	[1]	$ 5.34
Options exercisable
Shares upon exercise of options outstanding at end of year		79,578
Weighted average remaining contractual life		6 years 3 months 4 days
Aggregate intrinsic value		$ 96
6.97 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		185,820
Weighted average remaining contractual life		8 years 7 days
Aggregate intrinsic Value
Exercise price	[1]	$ 6.97
Options exercisable
Shares upon exercise of options outstanding at end of year		48,038
Weighted average remaining contractual life		8 years 22 days
Aggregate intrinsic value
7.84 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		110,831
Weighted average remaining contractual life		8 years 4 days
Aggregate intrinsic Value
Exercise price	[1]	$ 7.84
Options exercisable
Shares upon exercise of options outstanding at end of year		27,706
Weighted average remaining contractual life		8 years 4 days
Aggregate intrinsic value
8.35 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		3,750
Weighted average remaining contractual life		8 years 6 months 29 days
Aggregate intrinsic Value
Exercise price	[1]	$ 8.35
Options exercisable
Shares upon exercise of options outstanding at end of year		3,750
Weighted average remaining contractual life		8 years 6 months 29 days
Aggregate intrinsic value
8.49 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		33,750
Weighted average remaining contractual life		9 years 7 months 24 days
Aggregate intrinsic Value
Exercise price	[1]	$ 8.49
Options exercisable
Shares upon exercise of options outstanding at end of year
Aggregate intrinsic value
9.92 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		310,123
Weighted average remaining contractual life		9 years 4 days
Aggregate intrinsic Value
Exercise price	[1]	$ 9.92
Options exercisable
Shares upon exercise of options outstanding at end of year
Aggregate intrinsic value
13.76 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		311,091
Weighted average remaining contractual life		7 years 7 months 10 days
Aggregate intrinsic Value
Exercise price	[1]	$ 13.76
Options exercisable
Shares upon exercise of options outstanding at end of year		165,486
Weighted average remaining contractual life		7 years 7 months 10 days
Aggregate intrinsic value
14 [Member]
Options outstanding
Shares upon exercise of options outstanding at end of year		13,600
Weighted average remaining contractual life		6 years 9 months
Aggregate intrinsic Value
Exercise price	[1]	$ 14
Options exercisable
Shares upon exercise of options outstanding at end of year		10,200
Weighted average remaining contractual life		6 years 9 months
Aggregate intrinsic value
[1]	In dollars per share.

SHAREHOLDERS' EQUITY (Summary o

SHAREHOLDERS' EQUITY (Summary of Restricted Share Units) (Details) - Restricted Share Units [Member] - shares	12 Months Ended			24 Months Ended	36 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2016
Number of restricted share units upon exercise
Outstanding at the beginning of the year	333,274	269,231		269,231
Granted	222,927	167,898	277,249		668,074
Vested	(82,463)	(60,344)
Forfeited	(101,661)	(43,511)	(8,018)
Outstanding at the end of the year	372,077	333,274	269,231	372,077	372,077

SHAREHOLDERS' EQUITY (Allocatio

SHAREHOLDERS' EQUITY (Allocation of Share-Based Compensation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expenses	$ 2,580	$ 1,633	$ 852
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expenses	140	108	51
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expenses	358	255	103
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expenses	811	362	146
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expenses	$ 1,271	$ 908	$ 552

SHAREHOLDERS' EQUITY (Schedul55

SHAREHOLDERS' EQUITY (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Unrealized loss on marketable securities	[1]	$ (465)	$ (284)	$ (125)
Currency translation adjustment		(386)	(275)	(177)
Unrealized gain (loss) from cash flow hedge	[2]	415	88	238
Accumulated other comprehensive loss		$ (436)	$ (471)	$ (64)
[1]	In the years ended December 31 2016 and 2015, an amount of $95,000 and $108,000, respectively, in respect of unrealized loss from marketable securities was reclassified from accumulated other comprehensive income (loss) into financial expenses.
[2]	In the year ended December 31, 2016, amounts of $65,000 and $(12,000) in respect of unrealized gain (loss) from cash flow hedge were reclassified from accumulated other comprehensive income (loss) into financial income and revenues, respectively.

SHAREHOLDERS' EQUITY (Schedul56

SHAREHOLDERS' EQUITY (Schedule of Accumulated Other Comprehensive Loss) (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net revenues	$ 47,696,000	$ 50,391,000	$ 47,103,000
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gain (loss) from cash flow hedge	95,000	108,000
Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial Income and Revenues [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gain (loss) from cash flow hedge	65,000	$ 939,000	60,000
Net revenues	$ (12,000)		$ 470,000

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Line Items]
Income tax rate	25.00%	26.50%	26.50%	25.00%
Net operating loss carry forwards	$ 7,000
Income tax rate 2017	24.00%
Income tax rate 2018 and thereafter	23.00%
Tax benefit terms	The period of tax benefits, as described above, is subject to limitations of the earlier of 12 years from the commencement of production, or 14 years from the date of approval.
Tax exempt period	10 years
Areas in Israel designated as Development Zone A [Member]
Income Tax Disclosure [Line Items]
Income tax rate	9.00%
U.S Federal and State [Member]
Income Tax Disclosure [Line Items]
Income tax rate	40.00%

TAXES ON INCOME (Schedule of In

TAXES ON INCOME (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Israel	$ (3,935)	$ 5,742	$ 7,138
Non-Israeli Subsidiaries	1,078	903	653
INCOME (LOSS) BEFORE TAXES ON INCOME	$ (2,857)	$ 6,645	$ 7,791

TAXES ON INCOME (Schedule of Ta

TAXES ON INCOME (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Non-Israeli Subsidiaries	$ 458	$ 407	$ 406

TAXES ON INCOME (Reconciliation

TAXES ON INCOME (Reconciliation of Theoretical Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income (loss) before taxes on income	$ (2,857)	$ 6,645	$ 7,791
Theoretical tax expenses (benefit) at the statutory rate	(714)	1,761	2,065
Increase (decrease) in taxes on income due to:
Computation of deferred taxes at a rate, which is different than statutory rate	245	(1,194)	(1,314)
Difference between income reported for tax purposes and income for financial reporting purposes - mainly dollar - NIS differences		(738)	(675)
Non-deductible expenses- mainly share-based compensation expense	655	452	256
Different effective tax rates applicable to the subsidiaries	272	126	74
TAXES ON INCOME	$ 458	$ 407	$ 406
Statutory tax rate	25.00%	26.50%	26.50%	25.00%

SUPPLEMENTARY FINANCIAL STATE61

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Accounts Receivable Other) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
Advance to supplier	$ 97	$ 71
Institutions	700	1,291
Innovation Center (See Note 8d(1))	78	54
Fair value of derivatives	601	423
Prepaid expenses and sundry	551	519
Accounts receivable - other, total	$ 2,027	$ 2,358

SUPPLEMENTARY FINANCIAL STATE62

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Accounts Payable and Accruals Other) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
Employees and payroll related institutions	$ 777	$ 1,541
Provision for vacation and recreation pay	482	468
Royalties payable	135	106
Fair value of derivatives	59	45
Accrued expenses and sundry	2,350	3,267
Accounts payable and accruals, total	$ 3,803	$ 5,427

SUPPLEMENTARY FINANCIAL STATE63

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Research and Development Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
Total expenses	$ 7,601	$ 6,275	$ 6,131
Less - participation and grants	232	126	145
Research and development - net	$ 7,369	$ 6,149	$ 5,986

SUPPLEMENTARY FINANCIAL STATE64

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Schedule of Financial income (expenses)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]
Interest expenses and other bank charges	$ (169)	$ (152)	$ (139)
Interest income	674	601	332
Foreign exchange gain (losses) - net	(310)	(311)	276
Gain in respect of derivatives - net	62	333	30
FINANCIAL INCOME (EXPENSES) - net	$ 257	$ 471	$ 499

FAIR VALUE MEASUREMENT (Schedul

FAIR VALUE MEASUREMENT (Schedule of Assets and Liabilities) (Details) ₪ in Thousands, $ in Thousands, € in Millions	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Dec. 31, 2016ILS (₪)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Dec. 31, 2015ILS (₪)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents - cash deposits	$ 7,581			$ 21,987
Marketable securities - debt securities	52,746			37,369
Forward contracts and currency options (current liabilities) designated as hedging instruments
Currency options (current liabilities)
Total fair value of assets, net of fair value liabilities	60,327			59,356
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Forward contracts and currency options (current liabilities) designated as hedging instruments	(59)			(42)
Currency options (current liabilities)				(3)
Forward contracts and currency options (current assets) designated as hedging instruments	600			417
Currency options (current assets)	1			6
Total fair value of assets, net of fair value liabilities	542			378
Forward exchange contracts [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Forward exchange contracts, notional amount	5,600			9,200
Forward exchange contracts [Member] | Euro [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Forward exchange contracts, notional amount | €		€ 5.3			€ 8.5
Collar deal contracts [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Forward exchange contracts, notional amount	$ 1,900			$ 8,700
Collar deal contracts [Member] | NIS [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Forward exchange contracts, notional amount | ₪			₪ 7,300			₪ 33,000

MARKETABLE SECURITIES (Schedule

MARKETABLE SECURITIES (Schedule of Fair Value, Amortized Cost and Gross Unrealized Holding Gains of Available-for-sale Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Fair value	$ 52,746	$ 37,369
Amortized cost	53,084	37,653
Unrealized holding gains	8	69
Unrealized holding losses	$ 346	$ 353

MARKETABLE SECURITIES (Schedu67

MARKETABLE SECURITIES (Schedule of Contractual Maturities of Debt Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Contractual maturities of debt securities
2,017	$ 19,594
2,018	10,458
2,019	9,084
2020 and thereafter	13,610
Total	$ 52,746	$ 37,369

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Directors' fees		$ 449	$ 375	$ 246
Outstanding options		1,775,259	1,672,684	1,587,612	1,967,784
Stock options granted, exercise price	[1]	$ 6.90	$ 6.87	$ 6.64	$ 2.51
Options exercisable		1,061,474	987,568	1,039,011
Board of Directors [Member]
Related Party Transaction [Line Items]
Outstanding options		202,504
Stock options granted, exercise price		$ 5.28
Options exercisable		165,354
[1]	In dollars per share.

EARNINGS (LOSS) PER SHARE (Narr

EARNINGS (LOSS) PER SHARE (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted earnings per share calculation	1,732,658	881,733	552,001
Restricted Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted earnings per share calculation	48,775	77,996
Restricted Share Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted earnings per share calculation	250,484	31,391

EARNINGS (LOSS) PER SHARE (Sche

EARNINGS (LOSS) PER SHARE (Schedule of Basic Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EARNINGS (LOSS) PER SHARE:
Net income (loss)	$ (2,923)	$ 6,683	$ 7,838
Net income (loss) applicable to ordinary shareholders -basic	$ (2,923)	$ 6,683	$ 7,838
Weighted average ordinary shares outstanding	22,739,181	22,506,955	21,902,057
Basic earnings (loss) per share	$ (0.13)	$ 0.30	$ 0.36

EARNINGS (LOSS) PER SHARE (Sc71

EARNINGS (LOSS) PER SHARE (Schedule of Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EARNINGS (LOSS) PER SHARE:
Net income (loss) applicable to ordinary shareholders - diluted	$ (2,923)	$ 6,683	$ 7,838
Weighted average number of shares used in the computation of basic earnings per share	22,739,181	22,506,955	21,902,057
Add- additional shares from the assumed exercise of employee options, restricted shares and restricted share units vesting		775,910	1,308,516
Weighted average number of shares used in the computation of diluted earnings per share	22,739,181	23,282,865	23,210,573
Diluted earnings (loss) per share	$ (0.13)	$ 0.29	$ 0.34