DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
DOCUMENT AND ENTITY INFORMATION [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Entity Registrant Name | Foamix Pharmaceuticals Ltd. | |
Entity Central Index Key | 1,606,645 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,777,760 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 11,702 | $ 15,956 |
Restricted cash | 250 | 250 |
Short term bank deposits | 19,632 | 19,443 |
Investment in marketable securities (Note 4) | 22,831 | 31,797 |
Restricted investment in marketable securities (Note 4) | 275 | 290 |
Accounts receivable: | ||
Trade | 975 | 996 |
Other | 491 | 772 |
TOTAL CURRENT ASSETS | 56,156 | 69,504 |
NON-CURRENT ASSETS: | ||
Investment in marketable securities (Note 4) | 1,572 | 8,533 |
Restricted investment in marketable securities (Note 4) | 136 | 143 |
Property and equipment, net | 2,166 | 2,042 |
Other | 44 | 32 |
TOTAL NON-CURRENT ASSETS | 3,918 | 10,750 |
TOTAL ASSETS | 60,074 | 80,254 |
Accounts payable and accruals: | ||
Trade | 12,357 | 6,436 |
Deferred revenues | 62 | |
Other | 2,729 | 3,730 |
TOTAL CURRENT LIABILITIES | 15,086 | 10,228 |
LONG-TERM LIABILITIES: | ||
Liability for employee severance benefits | 377 | 437 |
Other liabilities | 714 | 988 |
TOTAL LONG-TERM LIABILITIES | 1,091 | 1,425 |
TOTAL LIABILITIES | 16,177 | 11,653 |
COMMITMENTS (Note 6) | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary Shares, NIS 0.16 par value - authorized: 90,000,000 Ordinary Shares as of June 30, 2018 and December 31, 2017; issued and outstanding: 40,693,479 and 37,498,128 Ordinary Shares as of June 30, 2018 and December 31, 2017, respectively | 1,721 | 1,576 |
Additional paid-in capital | 228,154 | 208,364 |
Accumulated deficit | (185,851) | (141,281) |
Accumulated other comprehensive loss | (127) | (58) |
TOTAL SHAREHOLDERS' EQUITY | 43,897 | 68,601 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 60,074 | $ 80,254 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - ₪ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in NIS per share) | ₪ 0.16 | ₪ 0.16 |
Ordinary shares, shares authorized | 90,000,000 | 90,000,000 |
Ordinary shares, shares issued | 40,693,479 | 37,498,128 |
Ordinary shares, shares outstanding | 40,693,479 | 37,498,128 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
REVENUES (Note 7) | $ 964 | $ 798 | $ 1,870 | $ 1,725 |
OPERATING EXPENSES: | ||||
Research and development | 16,842 | 13,940 | 39,667 | 26,615 |
Selling, general and administrative | 2,909 | 3,451 | 6,710 | 6,273 |
TOTAL OPERATING EXPENSES | 19,751 | 17,391 | 46,377 | 32,888 |
OPERATING LOSS | 18,787 | 16,593 | 44,507 | 31,163 |
FINANCE INCOME, net | (279) | (287) | (352) | (544) |
LOSS BEFORE INCOME TAX | 18,508 | 16,306 | 44,155 | 30,619 |
INCOME TAX | 120 | 81 | 450 | 152 |
NET LOSS FOR THE PERIOD | $ 18,628 | $ 16,387 | $ 44,605 | $ 30,771 |
LOSS PER SHARE BASIC AND DILUTED | $ 0.46 | $ 0.44 | $ 1.15 | $ 0.82 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE IN THOUSANDS | 40,102 | 37,420 | 38,821 | 37,304 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ 18,628 | $ 16,387 | $ 44,605 | $ 30,771 |
OTHER COMPREHENSIVE LOSS (INCOME): | ||||
Net unrealized gains from marketable securities | (25) | (36) | (10) | (42) |
Losses on marketable securities reclassified into net loss | (1) | (2) | ||
Net unrealized losses (gains) on derivative financial instruments | 67 | (29) | 81 | (104) |
Gains (losses) on derivative financial instruments reclassified into net loss | (41) | 48 | (35) | 88 |
TOTAL OTHER COMPREHENSIVE LOSS (INCOME) | (17) | 34 | (58) | |
TOTAL COMPREHENSIVE LOSS | $ 18,628 | $ 16,370 | $ 44,639 | $ 30,713 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ 44,605 | $ 30,771 | |
Adjustments required to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 166 | 91 | |
Loss from disposal of fixed assets | 37 | 105 | |
Changes in marketable securities and bank deposits, net | 133 | 132 | |
Changes in accrued liability for employee severance benefits, net of retirement fund profit | (59) | 54 | |
Share-based compensation | 2,954 | 1,487 | |
Non-cash finance expenses (income), net | 24 | (62) | |
Changes in operating asset and liabilities: | |||
Decrease in trade and other receivables | 291 | 2,369 | |
Increase in other non-current assets | (13) | ||
Increase in accounts payable and accruals | 4,550 | 5,812 | |
Net cash used in operating activities | (36,522) | (20,783) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (328) | (774) | |
Investment in bank deposits | (27,500) | (8,000) | |
Investment in marketable securities | (1,012) | (2,913) | |
Proceeds from sale and maturity of marketable securities and bank deposits | 44,151 | 46,922 | |
Net cash provided by investing activities | 15,311 | 35,235 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercise of options | 10 | 145 | |
Proceeds from exercise of warrants | 840 | ||
Proceeds from issuance of shares, net of $39 issuance costs | 16,131 | ||
Payments in respect of bank borrowings | (16) | ||
Net cash provided by financing activities | 16,981 | 129 | |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (4,230) | 14,581 | |
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (24) | 56 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD | 16,206 | 31,440 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD | 11,952 | 46,077 | |
Cash and cash equivalents | 11,702 | 45,827 | |
Restricted cash | 250 | 250 | |
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH SHOWN IN STATEMENT OF CASH FLOWS | 11,952 | 46,077 | |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS | |||
Property and equipment purchases included in accounts payable and accruals | 8 | ||
Cashless exercise of warrants and RSUs | 4 | 9 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for taxes | 454 | 337 | |
Interest received | 505 | 728 | |
Interest paid | [1] | ||
[1] | Represents an amount less than $1. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Statement of Cash Flows [Abstract] | |
Issuance costs | $ 39 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION: | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION: | NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: a. Nature of operations Foamix Pharmaceuticals Ltd. (hereinafter “Foamix”) is an Israeli company incorporated in 2003. Foamix is a clinical-stage specialty pharmaceutical company operating in one segment - the development and commercialization of foam-based formulations, using its proprietary technology, which includes its foam platforms. Foamix develops its own product candidates, mainly for the treatment of moderate-to-severe acne and other skin conditions. It also licenses its technology under development and licensing agreements to various pharmaceutical companies for development of certain products combining Foamix's foam technology with the licensee’s proprietary drugs. Since incorporation through June 30, 2018, Foamix and its subsidiary (hereinafter “the Company”) incurred losses and negative cash flows from operations mainly attributable to its development efforts and has an accumulated deficit of $185,851. The Company has financed its operations mainly through the issuance of shares through private and public financing rounds, convertible loans and payments received under development and licensing agreements. The Company's cash and investments as of the issuance date of these financial statements, will allow the Company to fund its operating plan through at least the next 12 months. However, the Company expects to continue to incur significant research and development and other expenses related to its ongoing operations and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable. If the Company is unable to obtain such funding it will need to curtail or cease operations. b. Basis of presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2018, the consolidated results of operations and comprehensive loss for the six and three-month periods ended June 30, 2018 and 2017 and cash flows for the six-month periods ended June 30, 2018 and 2017. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual financial statements for the year ended December 31, 2017. The condensed consolidated balance sheet data as of June 30, 2018 was derived from the audited consolidated financial statements for the year ended December 31, 2017, included in Form 10K/A, but does not include all disclosures required by U.S. GAAP for annual financial statements. The results for the six and three-month periods ended June 30, 2018 are not necessarily indicative of the results expected for the year ending December 31, 2018. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES: | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES: | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Principles of consolidation The consolidated financial statements include the accounts of Foamix and its subsidiary. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. b. Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described 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 or active market data of similar or identical assets or liabilities. 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. c. Loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the year divided by the weighted average number of Ordinary shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of Ordinary shares and of Ordinary share equivalents outstanding when dilutive. Ordinary share equivalents include outstanding share options and warrants which are included under the treasury share method when dilutive. The following share options, restricted share units (“RSUs”) and warrants were excluded from the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the periods presented (share data): Six and three months ended June 30, 2018 2017 Outstanding share options and RSUs 4,911,985 3,382,102 Warrants - 1,394,558 d. Newly issued and recently adopted accounting pronouncements: Accounting pronouncements adopted in period: 1) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process that requires companies to exercise more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The Company generates revenue primarily from its development and licensing agreements. The consideration the Company is eligible to receive under its agreements typically include upfront payments, reimbursement for research and development costs, contingent payments, royalties and other contingent payments for the achievement of certain sales targets. The Company adopted the guidance as of January 1, 2018, under the modified retrospective method, however, as the current revenue of the Company is driven primarily from royalties and contingent payments as mentioned above, the Company’s adoption of the new standard did not have a material effect on its consolidated financial statements. 2) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amended guidance requires changes in the fair value of equity investments to be recognized through net income, rather than other comprehensive income. Adoption of the standard will be applied through a cumulative one-time adjustment to retained earnings. This standard was adopted on January 1, 2018 and its accumulative adjustment had no material impact on the Company’s consolidated financial statements. In addition, in February 2018, the FASB issued ASU No. 2018-03 which includes technical corrections and improvements to clarify the guidance in ASU No. 2016-01. This standard, adopted as of January 1, 2018, had no material impact on the Company’s consolidated financial statements. 3) In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 are applied prospectively to an award modified on or after the adoption date. This standard, adopted as of January 1, 2018, had no material impact on the Company’s consolidated financial statements. 4) In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740), to insert the Securities and Exchange Commission's interpretive guidance from Staff Accounting Bulletin No. 118 into the income tax accounting codification under U.S. GAAP. The ASU permits companies to use provisional amounts for certain income tax effects of the Tax Act during a one-year measurement period. The provisional accounting impacts for the Company may change in future reporting periods until the accounting analysis is finalized, however the Company anticipates that the adoption of the new standard will not have material effect on its consolidated financial statements. Accounting pronouncements that are not yet effective and have not been early adopted by the Company: 5) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. Subsequently, the FASB issued ASU No. 2017-13, in September 2017 and ASU No. 2018-01, in January 2018, which amends and clarifies ASU 2016-02. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2018. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently reviewing its lease contracts and began analyzing the standard and identify potential differences and changes which would result from applying the requirements of the new standard. The Company currently anticipates that the adoption will result an increase in assets and liabilities on our consolidated balance sheet and will not have a material impact on our consolidated statement of operation or consolidated statement of cash flows. 6) In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. 7) In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This new standard amends the amortization period for certain purchased callable debt securities held at a premium by shortening the amortization period for the premium to the earliest call date. The new standard will be effective for interim and annual reporting periods beginning after December 15, 2018. The Company anticipates that the adoption of the new standard will not have a material effect on its consolidated financial statements. 8) In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities. This new standard aims to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The updated standard will be effective for interim and annual reporting periods beginning after December 15, 2018 and must be applied using a modified retrospective approach; however, early adoption of the ASU is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. 9) In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-based Payments. This ASU was issued to simplify the accounting for share-based transactions by expanding the scope of Topic 718 from only being applicable to share-based payments to employees to also include share-based payment transactions for acquiring goods and services from nonemployees. As a result, nonemployee share-based transactions will be measured by estimating the fair value of the equity instruments at the grant date, taking into consideration the probability of satisfying performance conditions. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements, although the impact is currently expected to be immaterial. |
FAIR VALUE PRESENTATION
FAIR VALUE PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE PRESENTATION | NOTE 3 - FAIR VALUE PRESENTATION The Company’s assets and liabilities that are measured at fair value as of June 30, 2018 and December 31, 2017 are classified in the tables below in one of the three categories described in note 2b above: June 30, 2018 Level 1 Level 2 Total Marketable securities $ 971 $ 23,843 $ 24,814 Currency options designated as hedging instruments (current liabilities) - $ (35 ) $ (35 ) December 31, 2017 Level 1 Level 2 Total Marketable securities $ 987 $ 39,776 $ 40,763 Currency options designated as hedging instruments (current assets) - $ 11 $ 11 The Company’s corporate debt securities are traded in markets that are not considered to be active, but are valued based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Accordingly, these assets are categorized as Level 2. Foreign exchange risk management The Company purchases and writes non-functional currency options in order to hedge the currency exposure on the Company’s cash flow. The currency hedged items are denominated in New Israeli Shekels (NIS). The purchasing and writing of options is part of a comprehensive currency hedging strategy with respect to salary and rent expenses denominated in NIS. These transactions are at zero cost for periods of up to one year. The counterparties to the derivatives are major banks in Israel. As of June 30, 2018, the total hedged amount was NIS 11.2 million. The derivative liability, in the amount of $35 as of June 30, 2018, qualifies as hedge accounting. As of June 30, 2018, the Company has a lien in the amount of $275 on the Company’s marketable securities and a lien in the amount $250 on the Company’s checking account, in respect of bank guarantees granted in order to secure the hedging transactions. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4 - MARKETABLE SECURITIES Marketable securities as of June 30, 2018, and December 31, 2017 consist mainly of debt and equity securities. The debt securities are classified as available-for-sale and are recorded at fair value. Changes in fair value, net of taxes (if applicable), are reflected in other comprehensive loss. Realized gains and losses on sales of the securities, as well as premium or discount amortization, are included in the consolidated statement of operations as finance income or expenses. As of January 1, 2018, following the adoption of ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), equity securities with readily determinable fair value are measured at fair value. The changes in the fair value of equity investments are recognized through net income. Adoption of the standard was applied through a cumulative one-time adjustment to the accumulated deficit. The following table sets forth the Company’s marketable securities: June 30, 2018 December 31, 2017 Israeli mutual funds $ 971 $ 987 Certificates of deposit 8,279 17,206 Government and agency bonds 15,564 22,570 Total $ 24,814 $ 40,763 As of June 30, 2018 and December 31, 2017 the fair value, cost and gross unrealized holding gains and losses of the debt securities owned by the Company were as follows: June 30, 2018 Fair value Cost or amortized cost Gross unrealized holding losses Gross unrealized holding gains Certificates of deposit $ 8,279 $ 8,314 $ 35 $ - Government and agency bonds 15,564 15,621 57 - Total $ 23,843 $ 23,935 $ 92 $ - December 31, 2017 Fair value Cost or amortized cost Gross unrealized holding losses Gross unrealized holding gains Certificates of deposit $ 17,206 $ 17,243 $ 38 $ 1 Government and agency bonds 22,570 22,638 68 - Total $ 39,776 $ 39,881 $ 106 $ 1 As of June 30, 2018, the unrealized losses attributed to the Company’s debt marketable securities were primarily due to credit spreads and interest rate movements. The Company has considered factors regarding other than temporary impaired securities and determined that there are no securities with impairment that is other than temporary as of June 30, 2018 and December 31, 2017. As of June 30, 2018, and December 31, 2017 the Company’s debt securities had the following maturity dates: Market Value June 30, 2018 December 31, 2017 Due within one year $ 22,271 $ 31,244 1 to 2 years 1,572 8,380 2 to 3 years - 152 Total $ 23,843 $ 39,776 During the six months ended June 30, 2018 and June 30, 2017 the Company received proceeds of $16,944 and $21,922 upon sale and maturity of marketable securities. $411 and $433 of the Company’s marketable securities were restricted as of June 30, 2018, and December 31, 2017, respectively, due to a lien in respect of bank guarantees granted to secure hedging transaction and the Company’s rent agreement. For more information refer to notes 3 and 6. |
SHARE CAPITAL
SHARE CAPITAL | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL | NOTE 5 - SHARE CAPITAL: a. Securities Purchase Agreement On April 13, 2018, the Company entered into a Securities Purchase Agreement with an existing investor pursuant to which the Company agreed to issue and sell, in a registered offering, an aggregate of 2,940,000 Ordinary Shares at a purchase price of $5.50 per share. The net proceeds from the offering were $16,131 after deducting transaction expenses. b. Warrants During the six months ended June 30, 2018, 1,394,558 warrants were exercised into 178,468 ordinary shares. As of June 30, 2018, there are no warrants outstanding. As of June 30, 2017, the total amount of warrants outstanding was 1,394,558. c. Share-based compensation In May 2015, the Company’s board of directors approved a new option plan (the “Plan”) replacing the previous plan approved in 2009. The Plan included a pool of 2,690,694 ordinary shares for grant to Company employees, consultants, directors and other service providers. During the years ended December 31, 2016 and December 31, 2017, the Board of Directors approved an accumulated increase of 2,900,000 ordinary shares to the plan. As of June 30, 2018, 1,317,322 shares remain available for grant under the Plan. In the six months ended June 30, 2018 and 2017, the Company granted options to employees, directors and non-employees as follows: Six months ended June 30, 2018 Award amount Exercise price range Vesting period Expiration Employees: Options 571,530 $5.06-$6.40 4 years 10 years RSUs 126,844 - 4 years - Directors: Options 174,373 $5.02-$5.06 1 years 10 years RSUs 14,829 - 3 years - Six months ended June 30, 2017 Award amount Exercise price range Vesting period Expiration Employees: Options 578,133 $10.218-$10.31 4 years 10 years RSUs 192,713 - 4 years - The fair value of options and RSUs granted to employees and directors during the six months ended June 30, 2018 and June 30, 2017 was $3,287 and $5,229 respectively. The fair value of RSUs granted to employees is based on the share price on grant date. The fair value of options granted to employees and directors on the date of grant was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows: Six months ended June 30 2018 2017 Value of ordinary share $5.12-$5.99 $10.12 Dividend yield 0% 0% Expected volatility 62.1%-62.6% 59.7% Risk-free interest rate 2.75%-2.84% 2.09% Expected term 6 years 6 years On January 1, 2018, the Company and Dr. Dov Tamarkin agreed to terminate the consulting agreement signed in June 2017. Pursuant to the termination, the Board of Directors resolved that all options and RSUs previously granted to Dr. Tamarkin shall continue to vest and may be exercised until their expiration date. The retention of the options and RSUs was considered a Type III modification for share-based compensation, and, as a result, on January 1, 2018 the Company remeasured the fair value of all outstanding options and RSUs granted to Dr. Tamarkin and recognized the residual amount of the fair value as an immediate expense. The compensation expenses recorded on January 1, 2018, were $239. In addition, following changes in circumstances, including Mr. Meir Eini’s resignation from his position as an observer to the Board of Directors, the Company reassessed the services provided by Mr. Eini and concluded they are not substantive in comparison to the value of the equity awards he received. Therefore, in January 2018, all expenses related to the awards previously granted to Mr. Eini were measured and the unrecognized amount of the fair value was fully recognized. The compensation expenses recorded in January 2018, were $494. The following table illustrates the effect of share-based compensation on the statements of operations: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Research and development expenses $ 1,303 $ 575 $ 412 $ 155 Selling, general and administrative 1,651 912 788 566 Total $ 2,954 $ 1,487 $ 1,200 $ 721 |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 6 - COMMITMENTS Lease agreement The Company leases office space for its headquarters and research and development facilities in Israel and the United States under several lease agreements. The lease agreements for the facilities in Israel are linked to the Israeli CPI and expire in December 2020. The lease agreement in the United States is due to expire during March 2019. In July 2017, the Company has entered into operating lease agreements in connection with a number of vehicles. The lease periods are generally for three years and the payments are linked to the Israeli CPI. To secure the terms of the lease agreements, the Company has made certain prepayments to the leasing company, representing approximately three months of lease payments. These amounts have been recorded as other non-current assets. Operating lease expenses for the three and six months ended June 30, 2018 and June 30, 2017, are as follows: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Rental expenses $ 390 $ 277 $ 195 $ 168 Vehicles lease expenses $ 50 $ - $ 28 $ - Future minimum lease commitments under non-cancelable operating lease agreements are as follows: 2018 $ 404 2019 699 2020 and thereafter 651 Total $ 1,754 The Company has a lien in the amount of $136 on the Company’s marketable securities in respect of bank guarantees granted in order to secure the lease agreements. |
ENTITY-WIDE DISCLOSURE_
ENTITY-WIDE DISCLOSURE: | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
ENTITY-WIDE DISCLOSURE: | NOTE 7 - ENTITY-WIDE DISCLOSURE: a. Net revenues by geographic area were as follows: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 United States $ 62 $ - $ - $ - Germany 1,808 1,725 964 798 Total revenues $ 1,870 $ 1,725 $ 964 $ 798 b. Customers exceeding 10% of revenues: During the three and six months ended June 30, 2018 and June 30, 2017 the Company had one customer exceeding over 10% of total revenues. Revenues from the customer were $1,808 and $1,725 during the six months ending June 30, 2018 and June 30, 2017, respectively. Revenues from the customer were $964 and $798 during the three months ending June 30, 2018 and June 30, 2017, respectively. c. Net revenues by type of payment: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Development service payments $ 62 $ - $ - $ - Royalties 1,808 1,725 964 798 Total revenues $ 1,870 $ 1,725 $ 964 $ 798 |
SIGNIFICANT ACCOUNTING POLICI15
SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | a. Principles of consolidation The consolidated financial statements include the accounts of Foamix and its subsidiary. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. |
Fair value measurement | b. Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described 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 or active market data of similar or identical assets or liabilities. 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. |
Loss per share | c. Loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the year divided by the weighted average number of Ordinary shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of Ordinary shares and of Ordinary share equivalents outstanding when dilutive. Ordinary share equivalents include outstanding share options and warrants which are included under the treasury share method when dilutive. The following share options, restricted share units (“RSUs”) and warrants were excluded from the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the periods presented (share data): Six and three months ended June 30, 2018 2017 Outstanding share options and RSUs 4,911,985 3,382,102 Warrants - 1,394,558 |
Newly issued and recently adopted accounting pronouncements: | d. Newly issued and recently adopted accounting pronouncements: Accounting pronouncements adopted in period: 1) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process that requires companies to exercise more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The Company generates revenue primarily from its development and licensing agreements. The consideration the Company is eligible to receive under its agreements typically include upfront payments, reimbursement for research and development costs, contingent payments, royalties and other contingent payments for the achievement of certain sales targets. The Company adopted the guidance as of January 1, 2018, under the modified retrospective method, however, as the current revenue of the Company is driven primarily from royalties and contingent payments as mentioned above, the Company’s adoption of the new standard did not have a material effect on its consolidated financial statements. 2) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amended guidance requires changes in the fair value of equity investments to be recognized through net income, rather than other comprehensive income. Adoption of the standard will be applied through a cumulative one-time adjustment to retained earnings. This standard was adopted on January 1, 2018 and its accumulative adjustment had no material impact on the Company’s consolidated financial statements. In addition, in February 2018, the FASB issued ASU No. 2018-03 which includes technical corrections and improvements to clarify the guidance in ASU No. 2016-01. This standard, adopted as of January 1, 2018, had no material impact on the Company’s consolidated financial statements. 3) In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 are applied prospectively to an award modified on or after the adoption date. This standard, adopted as of January 1, 2018, had no material impact on the Company’s consolidated financial statements. 4) In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740), to insert the Securities and Exchange Commission's interpretive guidance from Staff Accounting Bulletin No. 118 into the income tax accounting codification under U.S. GAAP. The ASU permits companies to use provisional amounts for certain income tax effects of the Tax Act during a one-year measurement period. The provisional accounting impacts for the Company may change in future reporting periods until the accounting analysis is finalized, however the Company anticipates that the adoption of the new standard will not have material effect on its consolidated financial statements. Accounting pronouncements that are not yet effective and have not been early adopted by the Company: 5) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. Subsequently, the FASB issued ASU No. 2017-13, in September 2017 and ASU No. 2018-01, in January 2018, which amends and clarifies ASU 2016-02. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2018. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently reviewing its lease contracts and began analyzing the standard and identify potential differences and changes which would result from applying the requirements of the new standard. The Company currently anticipates that the adoption will result an increase in assets and liabilities on our consolidated balance sheet and will not have a material impact on our consolidated statement of operation or consolidated statement of cash flows. 6) In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. 7) In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This new standard amends the amortization period for certain purchased callable debt securities held at a premium by shortening the amortization period for the premium to the earliest call date. The new standard will be effective for interim and annual reporting periods beginning after December 15, 2018. The Company anticipates that the adoption of the new standard will not have a material effect on its consolidated financial statements. 8) In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities. This new standard aims to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The updated standard will be effective for interim and annual reporting periods beginning after December 15, 2018 and must be applied using a modified retrospective approach; however, early adoption of the ASU is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. 9) In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-based Payments. This ASU was issued to simplify the accounting for share-based transactions by expanding the scope of Topic 718 from only being applicable to share-based payments to employees to also include share-based payment transactions for acquiring goods and services from nonemployees. As a result, nonemployee share-based transactions will be measured by estimating the fair value of the equity instruments at the grant date, taking into consideration the probability of satisfying performance conditions. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements, although the impact is currently expected to be immaterial. |
SIGNIFICANT ACCOUNTING POLICI16
SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of anti-dilutive securities | The following share options, restricted share units (“RSUs”) and warrants were excluded from the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the periods presented (share data): Six and three months ended June 30, 2018 2017 Outstanding share options and RSUs 4,911,985 3,382,102 Warrants - 1,394,558 |
FAIR VALUE PRESENTATION (Tables
FAIR VALUE PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value | The Company’s assets and liabilities that are measured at fair value as of June 30, 2018 and December 31, 2017 are classified in the tables below in one of the three categories described in note 2b above: June 30, 2018 Level 1 Level 2 Total Marketable securities $ 971 $ 23,843 $ 24,814 Currency options designated as hedging instruments (current liabilities) - $ (35 ) $ (35 ) December 31, 2017 Level 1 Level 2 Total Marketable securities $ 987 $ 39,776 $ 40,763 Currency options designated as hedging instruments (current assets) - $ 11 $ 11 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable securities | The following table sets forth the Company’s marketable securities: June 30, 2018 December 31, 2017 Israeli mutual funds $ 971 $ 987 Certificates of deposit 8,279 17,206 Government and agency bonds 15,564 22,570 Total $ 24,814 $ 40,763 |
Schedule of the fair value, cost and gross unrealized holding gains of the securities owned | As of June 30, 2018 and December 31, 2017 the fair value, cost and gross unrealized holding gains and losses of the debt securities owned by the Company were as follows: June 30, 2018 Fair value Cost or amortized cost Gross unrealized holding losses Gross unrealized holding gains Certificates of deposit $ 8,279 $ 8,314 $ 35 $ - Government and agency bonds 15,564 15,621 57 - Total $ 23,843 $ 23,935 $ 92 $ - December 31, 2017 Fair value Cost or amortized cost Gross unrealized holding losses Gross unrealized holding gains Certificates of deposit $ 17,206 $ 17,243 $ 38 $ 1 Government and agency bonds 22,570 22,638 68 - Total $ 39,776 $ 39,881 $ 106 $ 1 |
Schedule of maturity dates of debt securities | As of June 30, 2018, and December 31, 2017 the Company’s debt securities had the following maturity dates: Market Value June 30, 2018 December 31, 2017 Due within one year $ 22,271 $ 31,244 1 to 2 years 1,572 8,380 2 to 3 years - 152 Total $ 23,843 $ 39,776 |
SHARE CAPITAL_ (Tables)
SHARE CAPITAL: (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of options granted to employees, directors and non-employees | In the six months ended June 30, 2018 and 2017, the Company granted options to employees, directors and non-employees as follows: Six months ended June 30, 2018 Award amount Exercise price range Vesting period Expiration Employees: Options 571,530 $5.06-$6.40 4 years 10 years RSUs 126,844 - 4 years - Directors: Options 174,373 $5.02-$5.06 1 years 10 years RSUs 14,829 - 3 years - Six months ended June 30, 2017 Award amount Exercise price range Vesting period Expiration Employees: Options 578,133 $10.218-$10.31 4 years 10 years RSUs 192,713 - 4 years |
Schedule of underlying data used for computing the fair value of the options | The underlying data used for computing the fair value of the options are as follows: Six months ended June 30 2018 2017 Value of ordinary share $5.12-$5.99 $10.12 Dividend yield 0% 0% Expected volatility 62.1%-62.6% 59.7% Risk-free interest rate 2.75%-2.84% 2.09% Expected term 6 years 6 years |
Schedule of share-based compensation | The following table illustrates the effect of share-based compensation on the statements of operations: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Research and development expenses $ 1,303 $ 575 $ 412 $ 155 Selling, general and administrative 1,651 912 788 566 Total $ 2,954 $ 1,487 $ 1,200 $ 721 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating lease expense | Operating lease expenses for the three and six months ended June 30, 2018 and June 30, 2017, are as follows: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Rental expenses $ 390 $ 277 $ 195 $ 168 Vehicles lease expenses $ 50 $ - $ 28 $ - |
Schedule of Future Minimum Lease Commitments | Future minimum lease commitments under non-cancelable operating lease agreements are as follows: 2018 $ 404 2019 699 2020 and thereafter 651 Total $ 1,754 |
ENTITY-WIDE DISCLOSURE_ (Tables
ENTITY-WIDE DISCLOSURE: (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of net revenues by geographic area | Net revenues by geographic area were as follows: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 United States $ 62 $ - $ - $ - Germany 1,808 1,725 964 798 Total revenues $ 1,870 $ 1,725 $ 964 $ 798 |
Schedule of Net Revenues by Payment Type | Net revenues by type of payment: Six months ended June 30, Three months ended June 30, 2018 2017 2018 2017 Development service payments $ 62 $ - $ - $ - Royalties 1,808 1,725 964 798 Total revenues $ 1,870 $ 1,725 $ 964 $ 798 |
NATURE OF OPERATIONS AND BASI22
NATURE OF OPERATIONS AND BASIS OF PRESENTATION: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 141,281 | $ 185,851 |
Minimum period for which Company's cash and cash equivalents and available for sale securities will allow to fund its operating plan | 12 months |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Anti-Dilutive Securities) (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share options and RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation of diluted net loss per share, because the effect of their inclusion in the computation would be anti-dilutive | 4,911,985 | 3,382,102 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation of diluted net loss per share, because the effect of their inclusion in the computation would be anti-dilutive | 1,394,558 |
FAIR VALUE PRESENTATION (Schedu
FAIR VALUE PRESENTATION (Schedule of Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 24,814 | $ 40,763 |
Currency options designated as hedging instruments (current liabilities) | (35) | |
Currency options designated as hedging instruments (current assets) | 11 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 971 | 987 |
Currency options designated as hedging instruments (current liabilities) | ||
Currency options designated as hedging instruments (current assets) | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 23,843 | 39,776 |
Currency options designated as hedging instruments (current liabilities) | $ (35) | |
Currency options designated as hedging instruments (current assets) | $ 11 |
FAIR VALUE PRESENTATION (Narrat
FAIR VALUE PRESENTATION (Narrative) (Details) - 6 months ended Jun. 30, 2018 ₪ in Thousands, $ in Thousands | USD ($) | ILS (₪) |
FAIR VALUE MEASURMENTS [Abstract] | ||
Currency hedging transactions, maximum term | 1 year | |
Total hedged amount | ₪ | ₪ 11,200 | |
Derivative liability | $ 35 | |
Foreign exchange risk lien on marketable securities for bank guarantees granted to secure hedging transactions | 275 | |
Foreign exchange risk lien on checking account for bank guarantees granted to secure hedging transactions | $ 250 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 24,814 | $ 40,763 |
Israeli mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 971 | 987 |
Certificates of deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 8,279 | 17,206 |
Government and agency bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 15,564 | $ 22,570 |
MARKETABLE SECURITIES (Schedu27
MARKETABLE SECURITIES (Schedule of Fair Value, Cost and Gross Unrealized Holding Gains of Securities Owned) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 24,814 | $ 40,763 |
Cost or amortized cost | 23,935 | 39,881 |
Gross unrealized holding losses | 92 | 106 |
Gross unrealized holding gains | 1 | |
Certificates of deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 8,279 | 17,206 |
Cost or amortized cost | 8,314 | 17,243 |
Gross unrealized holding losses | 35 | 38 |
Gross unrealized holding gains | 1 | |
Government and agency bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 15,564 | 22,570 |
Cost or amortized cost | 15,621 | 22,638 |
Gross unrealized holding losses | 57 | 68 |
Gross unrealized holding gains |
MARKETABLE SECURITIES (Schedu28
MARKETABLE SECURITIES (Schedule of Maturity Dates of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year | $ 22,271 | $ 31,244 |
1 to 2 years | 1,572 | 8,380 |
2 to 3 years | 152 | |
Total | $ 23,843 | $ 39,776 |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Marketable Securities Narrative | |||
Proceeds from sale and maturity of marketable securities | $ 16,944 | $ 21,922 | |
Marketable securities restricted | $ 411 | $ 433 |
SHARE CAPITAL_ (Narrative) (Det
SHARE CAPITAL: (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 13, 2018 | Jan. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | May 31, 2015 |
Ordinary shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 178,468 | |||||
Ordinary shares issued | 2,940,000 | |||||
Ordinary price per share | $ 5.50 | |||||
Net procceds from offering | $ 16,131 | |||||
Warrants [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Warrants exercised | 1,394,558 | |||||
Warrants outstanding | 1,394,558 | |||||
Employees and directors [Member] | Share options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of options granted | $ 3,287 | $ 5,229 | ||||
Dr. Tamarkin [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense amount | $ 239 | |||||
Mr. Meir Eini's [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense amount | $ 494 | |||||
New option plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 1,317,322 | |||||
Number of shares authorized under the plan | 2,690,694 | |||||
New option plan [Member] | Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized under the plan | 2,900,000 |
SHARE CAPITAL_ (Schedule of Opt
SHARE CAPITAL: (Schedule of Options Granted to Employees and Non-employees) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share options [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award amount | 571,530 | 578,133 |
Exercise price range, minimum | $ 5.06 | $ 10.218 |
Exercise price range, maximum | $ 6.40 | $ 10.31 |
Vesting period | 4 years | 4 years |
Expiration period | 10 years | 10 years |
Share options [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award amount | 174,373 | |
Exercise price range, minimum | $ 5.02 | |
Exercise price range, maximum | $ 5.06 | |
Vesting period | 1 year | |
Expiration period | 10 years | |
RSUs [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award amount | 126,844 | 192,713 |
Exercise price range, minimum | ||
Exercise price range, maximum | ||
Vesting period | 4 years | 4 years |
RSUs [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award amount | 14,829 | |
Exercise price range, minimum | ||
Exercise price range, maximum | ||
Vesting period | 3 years |
SHARE CAPITAL_ (Schedule of Und
SHARE CAPITAL: (Schedule of Underlying Data Used for Computing the Fair Value of the Options) (Details) - Share options [Member] - Employees and directors [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of ordinary share | $ 10.12 | |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 59.70% | |
Expected volatility, minimum | 62.10% | |
Expected volatility, maximum | 62.60% | |
Risk-free interest rate | 2.09% | |
Risk-free interest rate, minimum | 2.75% | |
Risk-free interest rate, maximum | 2.84% | |
Expected term | 6 years | 6 years |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of ordinary share | $ 5.12 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of ordinary share | $ 5.99 |
SHARE CAPITAL_ (Schedule of Sha
SHARE CAPITAL: (Schedule of Share-based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | $ 1,200 | $ 721 | $ 2,954 | $ 1,487 |
Research and development expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | 412 | 155 | 1,303 | 575 |
Selling, general and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | $ 788 | $ 566 | $ 1,651 | $ 912 |
COMMITMENTS (Schedule of Operat
COMMITMENTS (Schedule of Operating lease expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expenses | $ 195 | $ 168 | $ 390 | $ 277 |
Vehicles lease expenses | $ 28 | $ 50 |
COMMITMENTS (Schedule of Future
COMMITMENTS (Schedule of Future Minimum Lease Commitments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease commitments under non-cancelable operating lease agreements, 2018 | $ 404 |
Future minimum lease commitments under non-cancelable operating lease agreements, 2019 | 699 |
Future minimum lease commitments under non-cancelable operating lease agreements, 2020 and thereafter | 651 |
Future minimum lease commitments under non-cancelable operating lease agreements, Total | 1,754 |
Lien amount in respect of bank guarantees granted in order to secure the lease agreements | $ 136 |
ENTITY-WIDE DISCLOSURE_ (Schedu
ENTITY-WIDE DISCLOSURE: (Schedule of Net Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 964 | $ 798 | $ 1,870 | $ 1,725 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 62 | |||
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 964 | $ 798 | $ 1,808 | $ 1,725 |
ENTITY-WIDE DISCLOSURE_ (Sche37
ENTITY-WIDE DISCLOSURE: (Schedule of Net Revenues by Payment Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 964 | $ 798 | $ 1,870 | $ 1,725 |
Revenue [Member] | Development Service Payments [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 62 | |||
Revenue [Member] | Royalties [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 964 | $ 798 | $ 1,808 | $ 1,725 |