Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ReWalk Robotics Ltd. | |
Entity Central Index Key | 1,607,962 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,482,160 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 15,686 | $ 17,869 |
Trade receivable, net of allowance for doubtful accounts of $186 and $144 as of June 30, 2016 and December 31, 2015, respectively | 1,187 | 2,146 |
Prepaid expenses and other current assets | 1,792 | 1,227 |
Inventory | 3,415 | 2,534 |
Total current assets | 22,080 | 23,776 |
LONG-TERM ASSETS | ||
Other long term assets | 1,107 | 470 |
Property and equipment, net | 1,451 | 1,328 |
Total long-term assets | 2,558 | 1,798 |
Total assets | 24,638 | 25,574 |
CURRENT LIABILITIES: | ||
Current maturities of long term loan | 3,963 | 0 |
Trade payables | 4,239 | 2,474 |
Employees and payroll accruals | 869 | 1,221 |
Deferred revenues and customers advances | 253 | 199 |
Other current liabilities | 511 | 449 |
Total current liabilities | 9,835 | 4,343 |
LONG-TERM LIABILITIES | ||
Long term loan, net of current maturities | 6,344 | 0 |
Deferred revenues | 225 | 171 |
Other long-term liabilities | 184 | 140 |
Total long-term liabilities | 6,753 | 311 |
Total liabilities | 16,588 | 4,654 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Share capital | ||
Ordinary shares, par value NIS 0.01 per share-Authorized: 250,000,000 shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 12,481,978 and 12,222,583 shares at June 30, 2016 and December 31, 2015, respectively | 33 | 33 |
Additional paid-in capital | 98,045 | 94,876 |
Accumulated deficit | (90,028) | (73,989) |
Total shareholders’ equity | 8,050 | 20,920 |
Total liabilities and shareholders’ equity | $ 24,638 | $ 25,574 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Jun. 30, 2016USD ($)shares | Jun. 30, 2016₪ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015₪ / shares |
Statement of Financial Position [Abstract] | ||||
Trade receivable, allowance for doubtful accounts | $ | $ 186 | $ 144 | ||
Ordinary shares, par value (in ILS per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized (in shares) | 250,000,000 | 250,000,000 | ||
Ordinary shares, shares Issued (in shares) | 12,481,978 | 12,222,583 | ||
Ordinary shares, shares outstanding (in shares) | 12,481,978 | 12,222,583 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 817 | $ 610 | $ 2,878 | $ 1,245 |
Cost of revenues | 732 | 550 | 2,300 | 1,152 |
Gross profit | 85 | 60 | 578 | 93 |
Operating expenses: | ||||
Research and development | 3,074 | 1,450 | 4,769 | 2,987 |
Sales and marketing | 3,504 | 2,996 | 6,803 | 5,514 |
General and administrative | 2,095 | 1,457 | 4,009 | 2,956 |
Total operating expenses | 8,673 | 5,903 | 15,581 | 11,457 |
Operating loss | (8,588) | (5,843) | (15,003) | (11,364) |
Financial income (expenses), net | (517) | 50 | (1,006) | (119) |
Loss before income taxes | (9,105) | (5,793) | (16,009) | (11,483) |
Income taxes | 12 | 15 | 30 | 31 |
Net loss | $ (9,117) | $ (5,808) | $ (16,039) | $ (11,514) |
Net loss per ordinary share, basic and diluted (in USD per share) | $ (0.74) | $ (0.48) | $ (1.30) | $ (0.95) |
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted (in shares) | 12,403,541 | 12,125,563 | 12,363,698 | 12,066,945 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary Share | Additional paid-in capital | Accumulated deficit | |
Balance at Dec. 31, 2014 | $ 43,853 | $ 32 | $ 92,395 | $ (48,574) | |
Balance (in shares) at Dec. 31, 2014 | 11,978,554 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation to employees and non-employees | 2,345 | 2,345 | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non employees | 137 | $ 1 | 136 | ||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employee and non employees (in shares) | 194,345 | ||||
Cashless exercise of warrants into ordinary shares (in shares) | 49,684 | ||||
Net loss | (25,415) | (25,415) | |||
Balance at Dec. 31, 2015 | 20,920 | $ 33 | 94,876 | (73,989) | |
Balance (in shares) at Dec. 31, 2015 | 12,222,583 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation to employees and non-employees | 1,543 | ||||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $333 | [1] | 437 | 437 | ||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $333 (in shares) | [1] | 100,075 | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non employees | $ 28 | 28 | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employee and non employees (in shares) | 114,204 | 114,204 | |||
Cashless exercise of warrants into ordinary shares (in shares) | 45,116 | ||||
Issuance of warrants to purchase ordinary shares | [2] | $ 1,161 | 1,161 | ||
Net loss | (16,039) | (16,039) | |||
Balance at Jun. 30, 2016 | $ 8,050 | $ 33 | $ 98,045 | $ (90,028) | |
Balance (in shares) at Jun. 30, 2016 | 12,481,978 | ||||
[1] | See Note 8e to the condensed consolidated financial statements. | ||||
[2] | See note 6 to the condensed consolidated financial statements |
CONDENSED STATEMENTS OF CHANGE6
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Ordinary Share | |
Issuance costs | $ 333 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Cash flows from operating activities: | |||
Net loss | $ (16,039) | $ (11,514) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 327 | 124 | |
Share-based compensation to employees and non- employees | 1,543 | 1,171 | |
Deferred taxes | (59) | (27) | |
Financial expenses related to long term loan | 322 | 0 | |
Changes in assets and liabilities: | |||
Trade receivables, net | 959 | 438 | |
Prepaid expenses and other current assets | (1,003) | (813) | |
Inventories | (936) | (3,105) | |
Trade payables | 1,511 | 2,055 | |
Employees and payroll accruals | (352) | 356 | |
Deferred revenues and advances from customers | 108 | 57 | |
Other liabilities | 106 | (781) | |
Net cash used in operating activities | (13,513) | (12,039) | |
Cash flows from investing activities: | |||
Maturities of short-term deposits | 0 | 1,667 | |
Purchase of property and equipment | (395) | (351) | |
Net cash provided by (used in) investing activities | (395) | 1,316 | |
Cash flows from financing activities: | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares by employees and non employees | 28 | 66 | |
Proceeds from long term loan | 12,000 | 0 | |
Debt issuance cost | (441) | 0 | |
Proceeds from long term loan | (553) | 0 | |
Issuance of ordinary shares in at-the-market offering, net of issuance expenses paid in the amount of $79 | [1] | 691 | 0 |
Net cash provided by financing activities | 11,725 | 66 | |
Decrease in cash and cash equivalents | (2,183) | (10,657) | |
Cash and cash equivalents at beginning of period | 17,869 | 41,829 | |
Cash and cash equivalents at end of period | 15,686 | 31,172 | |
Supplemental disclosures of non-cash flow information | |||
At-the-market offering expenses not yet paid | 254 | 0 | |
Classification of inventory to property and equipment, net | $ 55 | $ 360 | |
[1] | See Note 8e to the condensed consolidated financial statements. |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |
Issuance expenses | $ 79 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL a. ReWalk Robotics Ltd. (“RRL”, and together with its subsidiaries, the “Company”) was incorporated under the laws of the State of Israel on June 20, 2001 and commenced operations on the same date. b. RRL has two wholly-owned subsidiaries: (i) ReWalk Robotics Inc., incorporated under the laws of Delaware on February 15, 2012, and (ii) Argo Medical Technologies GmbH, incorporated under the laws of Germany on January 14, 2013. c. The Company depends on one contract manufacturer. Reliance on this vendor makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields and costs. This vendor accounted for 20% and 24% of the Company's total trade payables as of June 30, 2016 and December 31, 2015 , respectively. d. On May 16, 2016 the Company has entered into a Research Collaboration Agreement and an Exclusive License Agreement with the President and Fellows of Harvard College ("Harvard"). See also Note 7 below for more information about these agreements with Harvard. e. During May and June 2016, the Company issued and sold 100,075 ordinary shares at an average price of $ 7.69 per share under its ATM Offering Program. The gross proceeds to the Company were $ 770 thousand, and the net proceeds after deducting commissions, fees and offering expenses in the amount of $ 333 thousand were $ 437 thousand . The Company can raise up to $ 25 million under its ATM Offering Program. See Note 8e below for more information about the Company’s ATM Offering Program. f. The Company has incurred losses in the amount of $ 16 million during the six month period ended June 30, 2016 . The Company has an accumulated deficit in the total amount of $90 million as of June 30, 2016 and negative cash flow from operating activities is in the amount of $ 13.5 million for the six-month period ended June 30, 2016. As of June 30, 2016, the Company had cash and cash equivalents of $ 15.7 million . The Company expects to fund future capital requirements from its cash and cash equivalents, cash flow generated from its operations, borrowings under the Loan Agreement with Kreos Capital V (Expert Fund) Limited, issuances under the Company's ATM Offering Program or, other future issuances of equity and debt securities, or through a combination of the foregoing to meet the Company's anticipated cash requirements for the next 12 months. See Note 6 below for information about the Company’s Loan Agreement. |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's (i)consolidated financial position as of June 30, 2016 , (ii) consolidated results of operations for the three and six months ended June 30, 2016 and (iii) consolidated cash flows for the six month ended June 30, 2016 . The results for the three and six month periods ended June 30, 2016 , as applicable, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES a. The significant accounting policies applied in the audited consolidated financial statements of the Company as disclosed in the Company's annual report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 29, 2016, as amended on Form 10-K/A filed with the SEC on May 5, 2016 (the “2015 Form 10-K”), are applied consistently in these unaudited interim condensed consolidated financial statements. b. New Accounting Pronouncements: i. In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation-Stock Compensation (Topic 718) . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. ii. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 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 standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. The ASU requires adoption based upon a modified retrospective transition approach. Early adoption is permitted. The Company has not yet selected a transition method or determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. iii. In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In 2016, the FASB issued four amendments to ASU 2014-09. The standard is effective for public companies for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company has not yet selected an implementation approach or determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. c. Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. One customer represented 10% and 21% of the Company's trade receivable, net balance as of June 30, 2016 and December 31, 2015, respectively. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY The components of inventory are as follows (in thousands): June 30, December 31, 2016 2015 Raw materials $ 975 $ 450 Finished products 2,440 2,084 $ 3,415 $ 2,534 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES a. Purchase commitments: The Company has contractual obligations to purchase goods from its contract manufacturer- Sanmina Corporation, as further discussed in "Part I Item 1. Business" and "Part I, Item 1A. Risk Factors" of the 2015 Form 10-K. Purchase obligations do not include contracts that may be canceled without penalty. As of June 30, 2016, non-cancelable outstanding obligations amounted to approximately $ 2.7 million. b. Liens: As described in Note 6 below, in connection with the loan agreement, dated as of December 30, 2015, between Kreos Capital V (Expert) Fund Limited (Kreos) and the Company (the Loan Agreement), the Company granted Kreos a first priority security interest over all of its assets, including intellectual property and equity interests in its subsidiaries, subject to certain permitted security interests. The Company's other long-term assets subject to liens include a bank deposit in the amount of $ 746 thousand, which was pledged as security in respect of guaranties made in favor of a third party on April 29, 2015 and on January 6, 2016. Such deposit cannot be pledged to others or withdrawn without the consent of such third party. |
LOAN AND WARRANT TO PURCHASE OR
LOAN AND WARRANT TO PURCHASE ORDINARY SHARES LOAN AND WARRANT TO PURCHASE ORDINARY SHARES | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
LOANS AND WARRANT TO PURCHASE ORDINARY SHARES | LOAN AND WARRANT TO PURCHASE ORDINARY SHARES On December 30, 2015, the Company entered into the Loan Agreement pursuant to which Kreos extended a line of credit to the Company in the amount of $ 20.0 million (the “Loan”). Pursuant to the Loan Agreement, the Company granted Kreos a first priority security interest over all of its assets, including intellectual property and equity interests in its subsidiaries, subject to certain permitted security interests. The Loan has a maturity of 36 months and bears annual interest of 10.75% , which is to be paid monthly. The principal of the Loan is to be paid in 24 monthly payments, beginning in January 2017, except for the last loan payment, which was paid in advance on the Draw Down Date (as defined below). The repayment period will be extended to 36 months if the Company raises $ 20.0 million or more in connection with the issuance of shares of its capital stock (including debt securities convertible into shares of the Company’s capital stock) prior to the expiration of the initial 24 -month period. In the event that prior to December 31, 2016, the Company raises $ 10.0 million or more in connection with the issuance of shares of the Company’s capital stock (including debt securities convertible into shares of the Company’s capital stock), the Company will be able to draw down up to an additional $ 8.0 million in separate tranches until December 31, 2016, with a minimum required drawdown of $ 2.0 million each. On January 4, 2016 (the “Draw Down Date”), the Company drew down $ 12.0 million , net of $ 415 thousand in loan transaction fees and $ 660 thousand as advance payment. Additional loan transaction fees in the amount of $ 26 thousand were paid after the Draw Down Date. Out of the $ 441 thousand in total loan transaction fees, $ 140 thousand are deferred, and presented within “Other long term assets”, as they are allocated to the remaining $ 8.0 million available for drawdown by the Company under the Loan Agreement in separate tranches until December 31, 2016, (assuming proceeds of at least $ 10.0 million prior to December 31, 2016 in connection with the issuance of shares of the Company's capital stock). Repayment of the Loan and payment of all other amounts owed to Kreos are to be made in U.S. dollars. The Company recorded interest expense in the amount of $ 967 thousand during the six months ended June 30, 2016. In connection with the Loan Agreement, on December 30, 2015, the Company also granted Kreos a warrant to purchase 119,295 ordinary shares of the Company at an exercise price of $ 9.64 per share (the “Warrant”). The Warrant is exercisable, in whole or in part, at any time prior to the earliest of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly-owned subsidiary of the Company, excluding any transaction in which shareholders of the Company prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. On December 30, 2015, the Company calculated the value of its freestanding Warrant to purchase its ordinary shares in the amount of $ 1 million (net of $ 42 thousand issuance expenses), by using the relative fair value method and utilizing an option pricing method. The Company has recorded the value of the Warrant, together with the Loan's issuance costs, as debt discount which is being accreted as interest expense using the effective-interest method over the remaining term of the Loan. The following assumptions were used to estimate the value of the Warrant on December 30, 2015: December 30, 2015 Expected volatility 60 % Risk-free rate 2.52 % Dividend yield — % Expected term (in years) 10 |
RESEARCH COLLABORATION AND LICE
RESEARCH COLLABORATION AND LICENSE AGREEMENT | 6 Months Ended |
Jun. 30, 2016 | |
Research and Development [Abstract] | |
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT | RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT On May 16, 2016, the Company entered into a Research Collaboration Agreement (“Collaboration Agreement”) and an Exclusive License Agreement (“License Agreement”) with Harvard. Under the Collaboration Agreement, Harvard and the Company have agreed to collaborate on research regarding the development of lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, which are intended to treat stroke, multiple sclerosis, mobility limitations for the elderly and other medical applications. The Company has committed to pay in quarterly installments for the funding of this research, subject to a minimum funding commitment under applicable circumstances. The Collaboration Agreement will expire on May 16, 2021. Under the License Agreement, Harvard has granted the Company an exclusive, worldwide royalty-bearing license under certain patents of Harvard relating to lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, a royalty-free license under certain related know-how and the option to obtain a license under certain inventions conceived under the joint research collaboration. The License Agreement requires the Company to pay Harvard an upfront fee, reimbursements for expenses that Harvard incurred in connection with the licensed patents, royalties on net sales and several milestone payments contingent upon the achievement of certain product development and commercialization milestones. The License Agreement will continue in full force and effect until the expiration of the last-to-expire valid claim of the licensed patents. As of June 30, 2016, the Company did not achieve any of these milestones, and given the early stage of the License Agreement, the Company cannot anticipate the likelihood that the milestones will be achieved. Moreover, s ince such royalties are dependent on future product sales which are neither determinable nor reasonably estimable, these royalty payments are not recorded on our consolidated condensed balance sheet as of June 30, 2016. The Company's total payment obligation under the Collaboration Agreement and of the License Agreement is $ 6.3 million , some of it is subject to a minimum funding commitment under applicable circumstances as indicated above. see “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Obligations and Commercial Commitments”. The Company has recorded cost in the amount of $ 1.1 million , which is part of the total payment obligation indicated above, as research and development expenses related to the License Agreement and to the Collaboration Agreement for the three and six months ended June 30, 2016. For further discussion of the terms of the Collaboration Agreement and the License Agreement, see “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Overview-Collaboration Agreement and License Agreement with Harvard”. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY a. Share option plans: As of June 30, 2016 , and December 31, 2015 , the Company had reserved 393,903 a nd 420,469 ordinary shares, respectively, for issuance to the Company’s and its affiliates’ respective employees, directors, officers and consultants under the Company's 2014 Incentive Compensation Plan (the “2014 Plan”). Options to purchase ordinary shares generally vest over four years, with certain options granted to non-employee directors during the six months ended June 30, 2016, vesting over one year. Any option that is forfeited or canceled before expiration becomes available for future grants under the 2014 Plan. The fair value for options granted during the six months ended June 30, 2016 and June 30, 2015 was estimated at the date of the grant using a Black-Scholes-Merton option pricing model with the following assumptions: Six Months Ended June 30, 2016 2015 Expected volatility 53%-60% 60% Risk-free rate 1.28%-1.60% 1.60%-1.77% Dividend yield —% —% Expected term (in years) 5.31-6.11 6.11 Share price $8.48 - $11.88 $19.61- $20.97 The fair value of restricted stock units (RSUs) granted is determined based on the price of the Company's ordinary shares on the date of grant. A summary of employee options to purchase ordinary shares and RSUs during the six months ended June 30, 2016 is as follows: Six Months Ended June 30, 2016 Number Average exercise price Average remaining contractual life (in years) (1) Aggregate intrinsic value (in thousands) Options and RSUs outstanding at the beginning of the period 1,853,369 $ 6.12 8.37 $ 17,048 Options granted 381,835 9.32 RSUs granted 172,528 — Options exercised (2) (101,543 ) 1.28 RSUs vested (2) (21,571 ) — RSUs forfeited (228 ) — Options forfeited (22,084 ) 10.20 Options and RSUs outstanding at the end of the period 2,262,306 $ 6.42 8.30 $ 5,558 Options and RSUs vested and expected to vest 2,209,859 $ 6.42 8.28 $ 5,444 Options exercisable at the end of the period 704,032 $ 4.11 6.79 $ 1,669 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. (2) During the six month period ended June 30, 2016 , the aggregate number of ordinary shares that were issued pursuant to RSUs that became vested and options that were exercised on a net basis was 114,204 ordinary shares. The weighted average grant date fair value of options granted during the six month periods ended June 30, 2016 , and June 30, 2015 was $4.79 , and $11.19 , respectively. The weighted average grant date fair value of RSUs granted during the six month period ended June 30, 2016 and June 30, 2015 was $9.36 and $ 20.97 , respectively. The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders that hold options with positive intrinsic value exercised their options on the last date of the exercise period. Total intrinsic value of options exercised for each of the six month periods ended June 30, 2016 and June 30, 2015 was $830 thousand and $ 1.8 million, respectively. As of June 30, 2016 , there were $9.6 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's 2012 Equity Incentive Plan and its 2014 Plan. This cost is expected to be recognized over a period of approximately 2.9 years. The number of options and RSUs outstanding as of June 30, 2016 is set forth below, with options separated by range of exercise price. Range of exercise price Options and RSUs outstanding as of June 30, 2016 Weighted average remaining contractual life (years) (1) Options exercisable as of June 30, 2016 Weighted average remaining contractual life (years) (1) RSUs only 238,990 — — — $0.82 34,377 4.54 34,377 4.54 $1.32 343,390 5.95 332,811 5.92 $1.48 406,832 7.53 230,772 7.53 $7.30- $8.99 755,211 9.42 6,965 9.34 $9.22- $10.98 223,056 9.86 — 0 $19.62-$20.97 260,450 8.48 99,107 8.48 2,262,306 8.30 704,032 6.79 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. b. Share-based awards to non-employee consultants: The Company granted options to a non-employee consultant (the "Advisor") on March 12, 2007. As of June 30, 2016 , the outstanding options granted to such Advisor were as follows: Issuance date Options for shares of ordinary share Exercise price per share Options exercisable Exercisable through (number) (number) March 12, 2007 3,454 $— 3,454 March 12, 2017 On May 28, 2016, the Company entered into an agreement (the “Consulting Agreement”) with a separate non-employee consultant (the “Consultant”), under which the Consultant agreed to assist the Company in commercially promoting and expanding insurance coverage of the Company’s ReWalk devices. Compensation under the Consulting Agreement is due and payable only if the Consultant is successful, and will consist of agreed amounts in cash or ordinary shares and a percentage of certain sales resulting from the Consultant’s efforts. Additionally, the Company has agreed to pay the Consultant 10 percent of the increase in the Company’s market capitalization following the dates when coverage becomes active under national insurance policies that the Consultant secures for the Company. The increase in the Company’s market capitalization will be determined based on the increase between the average closing price over the ten days before disclosure of a relevant coverage decision and the average closing price over the ten days commencing 80 days after such disclosure. These variable payments, which will be made only for the first five national insurance policies the Consultant attains for the Company, (1) may be made in cash or stock at the Company’s choice and (2) may not exceed (i) $ 6 million for the date that the first national coverage policy takes effect, (ii) $ 5 million for the date that the second national coverage policy takes effect and (iii) $ 2 million for each of the dates that the next three national coverage policies take effect. The Company may need to seek shareholder approval pursuant to the rules of The NASDAQ Stock Market LLC should the Company elect to make such payments in stock. The Consulting Agreement has a term of 12 months, which will extend to 18 months if the Consultant secures a national coverage policy with certain insurers in the first 12 months and to 24 months if the Consultant secures at least two more national coverage policies within the first 18 months. Due to the fact that the compensation under the Consulting Agreement is based on achievement, the Company had not made any cash payments or issued any ordinary shares to the Consultant under the Consulting Agreement as of June 30, 2016. c. Warrants to purchase ordinary shares: During the six-months ended June 30, 2016 , a total of 138,702 warrants were exercised on a cashless basis into 45,116 ordinary shares. The following table summarizes information about warrants outstanding and exercisable as of June 30, 2016 : Issuance date Warrants outstanding Exercise Warrants Contractual term (number) (number) July 14, 2014 403,804 $ 10.08 403,804 July 13, 2018 December 30, 2015 119,295 $ 9.64 119,295 Until the earlier of (i) December 30, 2025 or (ii) a merger, consolidation, or reorganization of the Company. 523,099 523,099 d. Share-based compensation expense for employees and non-employees: The Company recognized non-cash share-based compensation expense for both employees and non-employees in the consolidated statements of operations for the periods shown below as follows (in thousands): Six Months Ended June 30, 2016 2015 Cost of revenues $ 48 $ 32 Research and development, net 249 201 Sales and marketing, net 376 265 General and administrative 870 673 Total $ 1,543 $ 1,171 e. At-the-market offering program: On May 10, 2016, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Piper Jaffray, pursuant to which it may offer and sell, from time to time, ordinary shares having an aggregate offering price of up to $ 25 million , through Piper Jaffray acting as its agent. Subject to the terms and conditions of the Equity Distribution Agreement, Piper Jaffray will use its commercially reasonable efforts to sell on the Company’s behalf all of the ordinary shares requested to be sold by the Company, consistent with its normal trading and sales practices. Piper Jaffray may also act as principal in the sale of ordinary shares under the Equity Distribution Agreement. Sales may be made under the Company's registration statement on Form S-3, which was declared effective on May 9, 2016 (the “Form S-3”), in what may be deemed “at-the-market” equity offerings as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “ATM Offering Program”). Sales may be made directly on or through the NASDAQ Global Market, the existing trading market for the Company's ordinary shares, to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or any other method permitted by law, including in privately negotiated transactions. Piper Jaffray is entitled to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold through it as agent under the Equity Distribution Agreement. Where Piper Jaffray acts as principal in the sale of ordinary shares under the Equity Distribution Agreement, such rate of compensation will not apply, but in no event will the total compensation of Piper Jaffray, when combined with the reimbursement of Piper Jaffray for the out-of-pocket fees and disbursements of its legal counsel, exceed 8.0% of the gross proceeds received from the sale of the ordinary shares. The Company is not required to sell any of its ordinary shares at any time. As of August 2, 2016, the Company had sold 100,075 ordinary shares under the ATM Offering Program for net proceeds to the Company of $ 437 thousand (after commissions, fees and expenses). Additionally, as of that date, the Company had paid Piper Jaffray compensation of $ 23 thousand and had incurred total expenses of approximately $ 333 thousand in connection with the ATM Offering Program. |
FINANCIAL EXPENSES, NET
FINANCIAL EXPENSES, NET | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
FINANCIAL EXPENSES, NET | FINANCIAL EXPENSES, NET The components of financial expenses, net were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Foreign currency transactions and other $ 24 $ (55 ) $ 43 $ 106 Financial expenses related to loan agreement with Kreos 488 — 967 — Bank commissions 14 13 23 21 Income related to hedging transactions (9 ) (8 ) (27 ) (8 ) $ 517 $ (50 ) $ 1,006 $ 119 |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Summary information about geographic areas : ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing the enterprise’s performance. The Company manages its business on the basis of one reportable segment, and derives revenues from selling systems and services (see Note 1 above and “Part I, Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this quarterly report for a brief description of the Company’s business). The following is a summary of revenues within geographic areas (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues based on customer’s location : Israel $ — $ — $ — $ — United States 527 376 2,266 950 Europe 244 162 504 219 Asia-Pacific 46 72 108 76 Total revenues $ 817 $ 610 $ 2,878 $ 1,245 June 30, December 31, 2016 2015 Long-lived assets by geographic region (*): Israel $ 557 $ 605 United States 693 483 Germany 201 240 $ 1,451 $ 1,328 (*) Long-lived assets are comprised of property and equipment, net. Major customer data as a percentage of total revenues (in thousands): June 30, December 31, 2016 2015 Customer A *) 15 % *) Less than 10% |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's (i)consolidated financial position as of June 30, 2016 , (ii) consolidated results of operations for the three and six months ended June 30, 2016 and (iii) consolidated cash flows for the six month ended June 30, 2016 . The results for the three and six month periods ended June 30, 2016 , as applicable, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
New Accounting Pronouncements | New Accounting Pronouncements: i. In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation-Stock Compensation (Topic 718) . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. ii. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 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 standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. The ASU requires adoption based upon a modified retrospective transition approach. Early adoption is permitted. The Company has not yet selected a transition method or determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. iii. In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In 2016, the FASB issued four amendments to ASU 2014-09. The standard is effective for public companies for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company has not yet selected an implementation approach or determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. |
Concentrations of Credit Risks | Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. One customer represented 10% and 21% of the Company's trade receivable, net balance as of June 30, 2016 and December 31, 2015, respectively. |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventory are as follows (in thousands): June 30, December 31, 2016 2015 Raw materials $ 975 $ 450 Finished products 2,440 2,084 $ 3,415 $ 2,534 |
LOAN AND WARRANT TO PURCHASE 21
LOAN AND WARRANT TO PURCHASE ORDINARY SHARES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of assumptions used to estimate the value of the warrants | The following assumptions were used to estimate the value of the Warrant on December 30, 2015: December 30, 2015 Expected volatility 60 % Risk-free rate 2.52 % Dividend yield — % Expected term (in years) 10 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option valuation assumptions | The fair value for options granted during the six months ended June 30, 2016 and June 30, 2015 was estimated at the date of the grant using a Black-Scholes-Merton option pricing model with the following assumptions: Six Months Ended June 30, 2016 2015 Expected volatility 53%-60% 60% Risk-free rate 1.28%-1.60% 1.60%-1.77% Dividend yield —% —% Expected term (in years) 5.31-6.11 6.11 Share price $8.48 - $11.88 $19.61- $20.97 |
Summary of stock option and RSU activity | A summary of employee options to purchase ordinary shares and RSUs during the six months ended June 30, 2016 is as follows: Six Months Ended June 30, 2016 Number Average exercise price Average remaining contractual life (in years) (1) Aggregate intrinsic value (in thousands) Options and RSUs outstanding at the beginning of the period 1,853,369 $ 6.12 8.37 $ 17,048 Options granted 381,835 9.32 RSUs granted 172,528 — Options exercised (2) (101,543 ) 1.28 RSUs vested (2) (21,571 ) — RSUs forfeited (228 ) — Options forfeited (22,084 ) 10.20 Options and RSUs outstanding at the end of the period 2,262,306 $ 6.42 8.30 $ 5,558 Options and RSUs vested and expected to vest 2,209,859 $ 6.42 8.28 $ 5,444 Options exercisable at the end of the period 704,032 $ 4.11 6.79 $ 1,669 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. (2) During the six month period ended June 30, 2016 , the aggregate number of ordinary shares that were issued pursuant to RSUs that became vested and options that were exercised on a net basis was 114,204 ordinary shares. |
Schedule of options and RSUs outstanding which have been separated into ranges of exercise price | The number of options and RSUs outstanding as of June 30, 2016 is set forth below, with options separated by range of exercise price. Range of exercise price Options and RSUs outstanding as of June 30, 2016 Weighted average remaining contractual life (years) (1) Options exercisable as of June 30, 2016 Weighted average remaining contractual life (years) (1) RSUs only 238,990 — — — $0.82 34,377 4.54 34,377 4.54 $1.32 343,390 5.95 332,811 5.92 $1.48 406,832 7.53 230,772 7.53 $7.30- $8.99 755,211 9.42 6,965 9.34 $9.22- $10.98 223,056 9.86 — 0 $19.62-$20.97 260,450 8.48 99,107 8.48 2,262,306 8.30 704,032 6.79 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
Schedule of outstanding options granted to non-employees | The Company granted options to a non-employee consultant (the "Advisor") on March 12, 2007. As of June 30, 2016 , the outstanding options granted to such Advisor were as follows: Issuance date Options for shares of ordinary share Exercise price per share Options exercisable Exercisable through (number) (number) March 12, 2007 3,454 $— 3,454 March 12, 2017 |
Schedule of warrants outstanding and exercisable | The following table summarizes information about warrants outstanding and exercisable as of June 30, 2016 : Issuance date Warrants outstanding Exercise Warrants Contractual term (number) (number) July 14, 2014 403,804 $ 10.08 403,804 July 13, 2018 December 30, 2015 119,295 $ 9.64 119,295 Until the earlier of (i) December 30, 2025 or (ii) a merger, consolidation, or reorganization of the Company. 523,099 523,099 |
Schedule of non-cash share-based compensation expense | The Company recognized non-cash share-based compensation expense for both employees and non-employees in the consolidated statements of operations for the periods shown below as follows (in thousands): Six Months Ended June 30, 2016 2015 Cost of revenues $ 48 $ 32 Research and development, net 249 201 Sales and marketing, net 376 265 General and administrative 870 673 Total $ 1,543 $ 1,171 |
FINANCIAL EXPENSES, NET (Tables
FINANCIAL EXPENSES, NET (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of financial expenses (income), net | The components of financial expenses, net were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Foreign currency transactions and other $ 24 $ (55 ) $ 43 $ 106 Financial expenses related to loan agreement with Kreos 488 — 967 — Bank commissions 14 13 23 21 Income related to hedging transactions (9 ) (8 ) (27 ) (8 ) $ 517 $ (50 ) $ 1,006 $ 119 |
GEOGRAPHIC INFORMATION AND MA24
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenues within geographic areas | The following is a summary of revenues within geographic areas (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues based on customer’s location : Israel $ — $ — $ — $ — United States 527 376 2,266 950 Europe 244 162 504 219 Asia-Pacific 46 72 108 76 Total revenues $ 817 $ 610 $ 2,878 $ 1,245 |
Schedule of long-lived assets by geographic region | June 30, December 31, 2016 2015 Long-lived assets by geographic region (*): Israel $ 557 $ 605 United States 693 483 Germany 201 240 $ 1,451 $ 1,328 (*) Long-lived assets are comprised of property and equipment, net. |
Schedule of major customer data as a percentage of total revenues | Major customer data as a percentage of total revenues (in thousands): June 30, December 31, 2016 2015 Customer A *) 15 % *) Less than 10% |
GENERAL (Details)
GENERAL (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)subsidiary | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of wholly-owned subsidiaries | subsidiary | 2 | |||||
Net loss | $ 9,117 | $ 5,808 | $ 16,039 | $ 11,514 | $ 25,415 | |
Accumulated deficit | 90,028 | 90,028 | 73,989 | |||
Cash flow from operating activity | 13,513 | 12,039 | ||||
Cash and cash equivalents | $ 15,686 | $ 31,172 | $ 15,686 | $ 31,172 | $ 17,869 | $ 41,829 |
GENERAL - Concentration Risk (D
GENERAL - Concentration Risk (Details) - Vendor concentration - Trade payables - manufacturer | Jun. 30, 2016 | Dec. 31, 2015 |
Concentration Risk [Line Items] | ||
Number of contract manufacturers | 1 | 1 |
Concentration risk (as a percent) | 20.00% | 24.00% |
GENERAL - ATM Offering Program
GENERAL - ATM Offering Program (Details) - USD ($) | 2 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | May 10, 2016 | ||
Class of Stock [Line Items] | ||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | [1] | $ 437,000 | ||
Maximum amount which can be raised under ATM offering program | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |
ATM Offering Program | ||||
Class of Stock [Line Items] | ||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses (in shares) | 100,075 | |||
Gross proceeds from shares issued under the ATM offering program | $ 770,000 | |||
Underwriter commission and offering expenses | 333,000 | |||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 437,000 | |||
ATM Offering Program | Weighted Average | ||||
Class of Stock [Line Items] | ||||
Price per share of shares sold under ATM offering program (in USD per share) | $ 7.69 | $ 7.69 | ||
[1] | See Note 8e to the condensed consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Concentrations of Credit Risks) (Details) - Trade Receivable - Customer concentration - customer | Jun. 30, 2016 | Dec. 31, 2015 |
Concentration Risk [Line Items] | ||
Number of customers | 1 | 1 |
Concentration risk (as a percent) | 10.00% | 21.00% |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 975 | $ 450 |
Finished products | 2,440 | 2,084 |
Inventories | $ 3,415 | $ 2,534 |
COMMITMENTS AND CONTINGENT LI30
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase orders | $ 2,700 |
Collateral pledged | $ 746 |
LOAN AND WARRANT TO PURCHASE 31
LOAN AND WARRANT TO PURCHASE ORDINARY SHARES Term Loan (Details) - USD ($) | Jan. 04, 2016 | Dec. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||||||||
Number of monthly payments | 24 months | |||||||
Minimum amount required to be raised in order to drawn down remaining credit facility | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||
Payment of loan transaction fee | 441,000 | $ 0 | ||||||
Financial expenses related to loan agreement with Kreos | 488,000 | $ 0 | 967,000 | $ 0 | ||||
Term Loan | 10.75% Term Loan Due January 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||
Loan term | 36 months | |||||||
Annual interest rate (as a percent) | 10.75% | |||||||
Number of monthly payments | 24 months | |||||||
Minimum amount to be raised by issuance of capital stock for extended loan term | $ 20,000,000 | |||||||
Minimum amount required to be raised in order to drawn down remaining credit facility | 10,000,000 | |||||||
Remaining borrowing capacity under loan agreement | 8,000,000 | 8,000,000 | 8,000,000 | 8,000,000 | 8,000,000 | |||
Minimum draw down amount | $ 2,000,000 | |||||||
Loan proceeds | $ 12,000,000 | |||||||
Payment of loan transaction fee | 415,000 | 441,000 | 26,000 | |||||
Advance payment | $ 660,000 | |||||||
Deferred loan transaction fees | $ 140,000 | 140,000 | $ 140,000 | $ 140,000 | ||||
Financial expenses related to loan agreement with Kreos | $ 967,000 |
LOAN AND WARRANT TO PURCHASE 32
LOAN AND WARRANT TO PURCHASE ORDINARY SHARES Warrants (Details) $ / shares in Units, $ in Thousands | Dec. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2016USD ($)shares | |
Class of Warrant or Right [Line Items] | |||
Fair value of warrants | [1] | $ 1,161 | |
Ordinary Share | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants issued (in shares) | shares | 119,295 | 138,702 | |
Exercise price (in USD per share) | $ / shares | $ 9.64 | ||
Minimum percentage in acquired company required to prevent warrants from becoming exercisable | 0.5 | ||
Fair value of warrants | $ 1,000 | ||
Transaction fee expenses | $ 42 | ||
[1] | See note 6 to the condensed consolidated financial statements |
LOAN AND WARRANT TO PURCHASE 33
LOAN AND WARRANT TO PURCHASE ORDINARY SHARES Warrants Fair Value Assumptions (Details) - Ordinary Share | Dec. 30, 2015 |
Class of Warrant or Right [Line Items] | |
Expected volatility (as a percent) | 60.00% |
Risk-free rate (as a percent) | 2.52% |
Dividend yield (as a percent) | 0.00% |
Expected term (in years) | 10 years |
RESEARCH COLLABORATION AGREEMEN
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Research and development | $ 3,074 | $ 1,450 | $ 4,769 | $ 2,987 |
Collaboration and Licensing Agreement | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Total payment obligation | 6,300 | 6,300 | ||
Research and development | $ 1,100 | $ 1,100 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative - Share Option Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Shareholders' equity (deficiency) [Line Items] | |||
Unrecognized compensation cost | $ 9,600 | ||
Period of recognition of unrecognized compensation cost | 2 years 10 months 24 days | ||
Options | |||
Shareholders' equity (deficiency) [Line Items] | |||
Shares reserved for future issuance (in shares) | 393,903 | 420,469 | |
Award vesting period | 4 years | ||
Weighted average grant date fair values, options (in USD per share) | $ 4.79 | $ 11.19 | |
Total intrinsic value of options exercised | $ 830 | $ 1,800 | |
RSU | |||
Shareholders' equity (deficiency) [Line Items] | |||
Weighted average grant date fair values, RSUs (in USD per share) | $ 9.36 | $ 20.97 | |
Non-employee Director | Options | |||
Shareholders' equity (deficiency) [Line Items] | |||
Award vesting period | 1 year |
SHAREHOLDERS' EQUITY (Option Va
SHAREHOLDERS' EQUITY (Option Valuation Assumptions) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum (as a percent) | 53.00% | |
Expected volatility, maximum (as a percent) | 60.00% | |
Expected volatility (as a percent) | 60.00% | |
Risk-free rate, minimum (as a percent) | 1.28% | 1.60% |
Risk-free rate, maximum (as a percent) | 1.60% | 1.77% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Expected term (in years) | 6 years 1 month 10 days | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 3 months 22 days | |
Share price (in USD per share) | $ 8.48 | $ 19.61 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 10 days | |
Share price (in USD per share) | $ 11.88 | $ 20.97 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Employee Share Option and RSU Activity ) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Aggregate intrinsic value (in thousands) | ||
Issuance of ordinary share upon exercise of stock options and vesting of RSUs (in shares) | 114,204 | |
Stock Options and RSUs | ||
Number | ||
Options and RSU's outstanding at the beginning of the period (in shares) | 1,853,369 | |
Options and RSU's outstanding at the end of the period (in shares) | 2,262,306 | |
Options and RSUs vested and expected to vest (in shares) | 2,209,859 | |
Average exercise price | ||
Options and RSUs outstanding at the beginning of the period (in USD per share) | $ 6.12 | |
Options and RSUs outstanding at the end of the period (in USD per share) | 6.42 | |
Options and RSUs vested and expected to vest (in USD per share) | $ 6.42 | |
Average remaining contractual life (years) | ||
Options and RSUs outstanding | 8 years 3 months 18 days | 8 years 4 months 13 days |
Options and RSUs vested and expected to vest | 8 years 3 months 11 days | |
Aggregate intrinsic value (in thousands) | ||
Options and RSUs outstanding at beginning of the period | $ 17,048 | |
Options and RSUs outstanding at the end of the period | 5,558 | |
Options and RSUs vested and expected to vest | $ 5,444 | |
Options | ||
Number | ||
Options granted (in shares) | 381,835 | |
Options exercised (in shares) | (101,543) | |
Options forfeited (in shares) | (22,084) | |
Options exercisable at the end of the period (in shares) | 704,032 | |
Average exercise price | ||
Options granted (in USD per share) | $ 9.32 | |
Options exercised (in USD per share) | 1.28 | |
Options forfeited (in USD per share) | 10.20 | |
Options exercisable at the end of the period (in USD per share) | $ 4.11 | |
Average remaining contractual life (years) | ||
Options exercisable at the end of the period | 6 years 9 months 15 days | |
Aggregate intrinsic value (in thousands) | ||
Options exercisable at the end of the period | $ 1,669 | |
RSU | ||
Number | ||
RSUs granted (in shares) | 172,528 | |
RSUs vested (in shares) | (21,571) | |
RSUs forfeited (in shares) | (228) |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Options and RSUs Outstanding Which have been Separated into Ranges of Exercise Price) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
RSU | ||
Ranges of Exercise Price [Line Items] | ||
RSUs outstanding (in shares) | 238,990 | |
Options | ||
Ranges of Exercise Price [Line Items] | ||
Options exercisable (in shares) | 704,032 | |
Options exercisable weighted average remaining contractual life (years) | 6 years 9 months 15 days | |
Stock Options and RSUs | ||
Ranges of Exercise Price [Line Items] | ||
Options outstanding weighted average remaining contractual life (years) | 8 years 3 months 18 days | |
Options and RSU's outstanding (in shares) | 2,262,306 | 1,853,369 |
$0.82 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 0.82 | |
Range of exercise price, maximum (in USD per share) | $ 0.82 | |
Options outstanding (in shares) | 34,377 | |
Options outstanding weighted average remaining contractual life (years) | 4 years 6 months 15 days | |
Options exercisable (in shares) | 34,377 | |
Options exercisable weighted average remaining contractual life (years) | 4 years 6 months 15 days | |
$1.32 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 1.32 | |
Range of exercise price, maximum (in USD per share) | $ 1.32 | |
Options outstanding (in shares) | 343,390 | |
Options outstanding weighted average remaining contractual life (years) | 5 years 11 months 12 days | |
Options exercisable (in shares) | 332,811 | |
Options exercisable weighted average remaining contractual life (years) | 5 years 11 months 1 day | |
$1.48 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 1.48 | |
Range of exercise price, maximum (in USD per share) | $ 1.48 | |
Options outstanding (in shares) | 406,832 | |
Options outstanding weighted average remaining contractual life (years) | 7 years 6 months 11 days | |
Options exercisable (in shares) | 230,772 | |
Options exercisable weighted average remaining contractual life (years) | 7 years 6 months 11 days | |
$7.30- $8.99 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 7.30 | |
Range of exercise price, maximum (in USD per share) | $ 8.99 | |
Options outstanding (in shares) | 755,211 | |
Options outstanding weighted average remaining contractual life (years) | 9 years 5 months 1 day | |
Options exercisable (in shares) | 6,965 | |
Options exercisable weighted average remaining contractual life (years) | 9 years 4 months 2 days | |
$9.22- $10.98 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 9.22 | |
Range of exercise price, maximum (in USD per share) | $ 10.98 | |
Options outstanding (in shares) | 223,056 | |
Options outstanding weighted average remaining contractual life (years) | 9 years 10 months 10 days | |
Options exercisable (in shares) | 0 | |
Options exercisable weighted average remaining contractual life (years) | 0 days | |
$19.62-$20.97 | Options | ||
Ranges of Exercise Price [Line Items] | ||
Range of exercise price- minimum (in USD per share) | $ 19.62 | |
Range of exercise price, maximum (in USD per share) | $ 20.97 | |
Options outstanding (in shares) | 260,450 | |
Options outstanding weighted average remaining contractual life (years) | 8 years 5 months 23 days | |
Options exercisable (in shares) | 99,107 | |
Options exercisable weighted average remaining contractual life (years) | 8 years 5 months 23 days |
SHAREHOLDERS' EQUITY (Schedul39
SHAREHOLDERS' EQUITY (Schedule of Outstanding Options Granted to Non-employees) (Details) - Nonemployee Stock Option - March 12, 2007 | Jun. 30, 2016$ / sharesshares |
Shareholders' equity (deficiency) [Line Items] | |
Options for shares of ordinary share (in shares) | 3,454 |
Exercise price per share (in USD per shares) | $ / shares | $ 0 |
Options exercisable (in shares) | 3,454 |
SHAREHOLDERS' EQUITY SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDER'S EQUITY (Share-based Awards to Non-Employee Consultants) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)national_insurance_policy | May 28, 2016 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Consultant fee as a percentage of the increase in market capitalization | 10.00% | |
Measurement period of increase in market capitalization following achievement of milestone | 10 days | |
Disclosure period following achievement of milestone | 80 days | |
Number of national insurance policies required | national_insurance_policy | 5 | |
Agreement term | 12 months | |
One Active National Insurance Policy | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Payments due in cash or stock | $ 6 | |
Agreement term | 18 months | |
Number of national insurance policies required to increase term | national_insurance_policy | 2 | |
Two Active National Insurance Policies | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Payments due in cash or stock | $ 5 | |
Three Active National Insurance Policies | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Agreement term | 24 months | |
Three, Four, or Five Active National Insurance Policies | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Payments due in cash or stock | $ 2 |
SHAREHOLDER'S EQUITY (Schedule
SHAREHOLDER'S EQUITY (Schedule of Warrants) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 30, 2015 | |
Ordinary Share | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised into ordinary shares (in shares) | 138,702 | 119,295 |
Ordinary shares issued upon exercise of warrants (in shares) | 45,116 | |
Warrants outstanding (in shares) | 523,099 | |
Exercise price (in USD per share) | $ 9.64 | |
Warrants exercisable (in shares) | 523,099 | |
Warrants to Purchase Ordinary Shares Issued on July 14, 2014 | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 403,804 | |
Exercise price (in USD per share) | $ 10.08 | |
Warrants exercisable (in shares) | 403,804 | |
Warrants to Purchase Ordinary Shares Issued on December 30, 2015 | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 119,295 | |
Exercise price (in USD per share) | $ 9.64 | |
Warrants exercisable (in shares) | 119,295 |
SHAREHOLDERS' EQUITY (Schedul42
SHAREHOLDERS' EQUITY (Schedule of Non-cash Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Non-cash share-based compensation expense [Line Items] | ||
Non-cash share-based compensation expense | $ 1,543 | $ 1,171 |
Cost of revenues | ||
Non-cash share-based compensation expense [Line Items] | ||
Non-cash share-based compensation expense | 48 | 32 |
Research and development, net | ||
Non-cash share-based compensation expense [Line Items] | ||
Non-cash share-based compensation expense | 249 | 201 |
Sales and marketing, net | ||
Non-cash share-based compensation expense [Line Items] | ||
Non-cash share-based compensation expense | 376 | 265 |
General and administrative | ||
Non-cash share-based compensation expense [Line Items] | ||
Non-cash share-based compensation expense | $ 870 | $ 673 |
SHAREHOLDER'S EQUITY (Narrative
SHAREHOLDER'S EQUITY (Narrative- Share-based Compensation Expense for employees and non-employees) (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Aug. 02, 2016 | Jun. 30, 2016 | May 10, 2016 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Maximum amount which can be raised under ATM offering program | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||||
Stock issuance costs under equity distribution agreement as a percent of gross proceeds | 3.00% | ||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | [1] | 437,000 | |||
Issuance expenses | $ 79,000 | ||||
ATM Offering Program | |||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses (in shares) | 100,075 | ||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 437,000 | ||||
Maximum | |||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||||
Stock issuance costs under equity distribution agreement as a percent of gross proceeds | 8.00% | ||||
Subsequent Event | ATM Offering Program | |||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses (in shares) | 100,075 | ||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 437,000 | ||||
Total expenses incurred under ATM program | 333,000 | ||||
Subsequent Event | Piper Jaffray | ATM Offering Program | |||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||||
Issuance expenses | $ 23,000 | ||||
[1] | See Note 8e to the condensed consolidated financial statements. |
FINANCIAL EXPENSES, NET (Detail
FINANCIAL EXPENSES, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transactions and other | $ 24 | $ (55) | $ 43 | $ 106 |
Financial expenses related to loan agreement with Kreos | 488 | 0 | 967 | 0 |
Bank commissions | 14 | 13 | 23 | 21 |
Income related to hedging transactions | (9) | (8) | (27) | (8) |
Financial expenses (income), net | $ 517 | $ (50) | $ 1,006 | $ 119 |
GEOGRAPHIC INFORMATION AND MA45
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Additional Information (Details) | 6 Months Ended |
Jun. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
GEOGRAPHIC INFORMATION AND MA46
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Schedule of revenues and long-lived assets by geographic region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Revenues | $ 817 | $ 610 | $ 2,878 | $ 1,245 | |
Long-lived assets | 1,451 | 1,451 | $ 1,328 | ||
Israel | |||||
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Long-lived assets | 557 | 557 | 605 | ||
United States | |||||
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Revenues | 527 | 376 | 2,266 | 950 | |
Long-lived assets | 693 | 693 | 483 | ||
Europe | |||||
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Revenues | 244 | 162 | 504 | 219 | |
Asia-Pacific | |||||
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Revenues | 46 | $ 72 | 108 | $ 76 | |
Germany | |||||
Summary of revenues and long-lived assets by geographic region [Line items] | |||||
Long-lived assets | $ 201 | $ 201 | $ 240 |
GEOGRAPHIC INFORMATION AND MA47
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Schedule of major customer data as a percentage of total revenues) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Revenue | Customer concentration | Customer A | |||
Major customer data as a percentage of total revenues [Line items] | |||
Concentration risk (as a percent) | 0.00% | [1] | 15.00% |
[1] | *) Less than 10% |