NovoCure Limited (NVCR) 10-Q 26 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 19, 2018
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	NVCR
Entity Registrant Name	Novocure Ltd
Entity Central Index Key	1,645,113
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		90,699,068

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 111,603	$ 78,592
Short-term investments	104,712	104,719
Restricted cash	2,158	2,126
Trade receivables	34,044	29,567
Receivables and prepaid expenses	9,939	8,105
Inventories	20,386	22,025
Total current assets	282,842	245,134
LONG-TERM ASSETS:
Property and equipment, net	8,902	9,031
Field equipment, net	9,020	9,036
Severance pay fund	113	111
Other long-term assets	2,602	1,986
Total long-term assets	20,637	20,164
TOTAL ASSETS	303,479	265,298
CURRENT LIABILITIES:
Trade payables	19,419	17,206
Other payables and accrued expenses	25,340	32,996
Total current liabilities	44,759	50,202
LONG-TERM LIABILITIES:
Long-term loan, net of discount and issuance costs	149,160	97,342
Employee benefit liabilities	2,522	2,453
Other long-term liabilities	920	1,737
Total long-term liabilities	152,602	101,532
TOTAL LIABILITIES	197,361	151,734
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' EQUITY:
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 90,398,901 shares and 89,478,032 shares at March 31, 2018 (unaudited) and December 31, 2017, respectively	0	0
Additional paid-in capital	708,266	697,165
Accumulated other comprehensive loss	(1,328)	(1,343)
Accumulated deficit	(600,820)	(582,258)
Total shareholders' equity	106,118	113,564
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 303,479	$ 265,298

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	90,398,901	89,478,032
Common stock, shares outstanding	90,398,901	89,478,032

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Statement [Abstract]
Net revenues	$ 52,125	$ 34,880	$ 177,026
Cost of revenues	18,238	11,664	55,609
Gross profit	33,887	23,216	121,417
Operating costs and expenses:
Research, development and clinical trials	11,104	9,411	38,103
Sales and marketing	18,135	14,756	63,528
General and administrative	17,325	12,422	59,114
Total operating costs and expenses	46,564	36,589	160,745
Operating loss	(12,677)	(13,373)	(39,328)
Financial expenses, net	4,853	2,446	9,169
Loss before income taxes	(17,530)	(15,819)	(48,497)
Income taxes	3,194	2,226	13,165
Net loss	$ (20,724)	$ (18,045)	$ (61,662)
Basic and diluted net loss per ordinary share	$ (0.23)	$ (0.21)	$ (0.70)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share	89,985,612	87,452,983	88,546,719

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (20,724)	$ (18,045)	$ (61,662)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	10	11	8
Pension benefit plan	5	(49)	532
Total comprehensive loss	$ (20,709)	$ (18,083)	$ (61,122)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands		Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance at Dec. 31, 2017		$ 113,564		$ 697,165	$ (1,343)	$ (582,258)
Balance (in shares) at Dec. 31, 2017			89,478,032
Share-based compensation to employees		8,520		8,520
Exercise of options and warrants		2,581		2,581
Exercise of options and warrants (in shares)			920,869
Cumulative effect adjustment on retained earnings	[1]	2,162				2,162
Other comprehensive income, net of tax benefit of $5		15			15
Net loss		(20,724)				(20,724)
Balance at Mar. 31, 2018		$ 106,118		$ 708,266	$ (1,328)	$ (600,820)
Balance (in shares) at Mar. 31, 2018			90,398,901
[1]	Resulting from the adoption of ASC 606.

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Statement Of Stockholders Equity [Abstract]
Other comprehensive income (loss), tax benefit	$ 5

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (20,724)	$ (18,045)	$ (61,662)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,203	1,660	7,677
Asset write-downs and impairment of field equipment	49	75	241
Share-based compensation to employees	8,520	4,561	27,116
Increase in trade receivables	(1,672)	(5,486)	(23,228)
Amortization of discount	2,427	106	252
Decrease (increase) in receivables and prepaid expenses	(1,834)	(4,815)	1,979
Decrease (increase) in inventories	1,638	(400)	3,524
Increase in other long-term assets	(620)	(256)	(554)
Increase (decrease) in trade payables	2,213	(3,557)	(1,150)
Increase (decrease) in other payables and accrued expenses	(8,300)	(1,410)	14,460
Increase in employee benefit liabilities, net	76	109	440
Increase (decrease) in other long-term liabilities	(800)	550	(2,229)
Net cash used in operating activities	(16,824)	(26,908)	(33,134)
Cash flows from investing activities:
Purchase of property and equipment	(737)	(1,031)	(2,459)
Purchase of field equipment	(1,370)	(1,402)	(4,907)
Proceeds from maturity of short-term investments	45,000	60,000	120,000
Purchase of short-term investments	(44,750)	(44,654)	(104,006)
Net cash provided by (used in) investing activities	(1,857)	12,913	8,628
Cash flows from financing activities:
Proceeds from issuance of shares, net			1,540
Proceeds from long-term loan, net	149,150
Proceeds from other long-term loans			19
Repayment of long-term loan	(100,000)
Repayment of other long-term loan	(17)	(18)	(76)
Exercise of options and warrants	2,581	77	3,685
Net cash provided by financing activities	51,714	59	5,168
Effect of exchange rate changes on cash and cash equivalents	10	11	8
Increase (decrease) in cash, cash equivalents and restricted cash	33,043	(13,925)	(19,330)
Cash, cash equivalents and restricted cash at beginning of period	80,718	100,048	100,048
Cash, cash equivalents and restricted cash at the end of the period	113,761	86,123	80,718
Cash paid during the period for:
Income taxes	3,758	3,402	10,286
Interest	$ 3,009	$ 2,508	$ 10,162

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization . NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune, its first Tumor Treating Fields delivery system, to treat adult patients with glioblastoma (“GBM”). Financial statement preparation . The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries, and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (the “2017 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2018. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2017 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements . In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), an updated standard on revenue recognition and issued subsequent amendments to the initial guidance in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08, 2016-10, 2016-12 and 2016-20, respectively (collectively, “ASC 606”). The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods and services to patients in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. In addition, the new standard requires expanded disclosures . The Company has adopted the standard effective January 1, 2018 using the modified retrospective method for all contracts. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the guidance of ASC 605, (ASC 605). The amount of revenue recognized in 2018 reflects the consideration to which the Company expects to be entitled to receive in exchange for Optune. In preparation for adoption of the standard, the Company has implemented internal controls and key system functionality to enable the preparation of financial information, including the assessment of the impact of the standard. The Company uses the portfolio approach to apply the standard to portfolios of contracts with similar characteristics. Adoption of the standard resulted in an increase to trade receivables of $2,807, deferred revenues of $645 and a cumulative impact to the Company's accumulated deficit as of January 1, 2018 of $2,162. Optune is comprised of two main components: (1) an electric field generator and (2) transducer arrays and related accessories. We retain title to the electric field generator, and the patient is provided replacement transducer arrays and technical support for the device during the term of treatment. The electric field generator and transducer arrays are always supplied and function together and are not sold on a standalone basis. To recognize revenue under ASC 606, the Company applies the following five steps: 1. Identify the contract with a patient. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. In accordance with ASC 606, the impact of our adoption of ASC 606 on our condensed consolidated statements of income for the three months ended March 31, 2018 was a decrease in net revenues of $3,538, a decrease in tax expenses of $202, an increase in net loss of $3,336 and a decrease in our basic and diluted net loss per ordinary share of $0.04. The impact of our adoption of Topic 606 on our balance sheet as of March 31, 2018 was a decrease in trade receivables of $1,172, an increase to other payables and accrued expenses (deferred revenues net of tax provision) of $884 and an accumulated deficit as of March 31, 2018 of $1,174. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The Company adopted the standard effective as of January 1, 2018, and t In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2017. The Company adopted the standard retrospectively to all periods presented effective as of January 1, 2018. Recent Accounting Pronouncements. In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2020. The amendments in this update are effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements, footnote disclosures and employee benefit plans’ accounting.

Short-Term Investments

Short-Term Investments	3 Months Ended
	Mar. 31, 2018
Marketable Securities Current [Abstract]
Short-Term Investments	NOTE 2: SHORT-TERM INVESTMENTS The Company invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments in the amount of $104,712 and $104,719 as of March 31, 2018 and December 31, 2017, respectively, and their estimated fair value as of March 31, 2018 and December 31, 2017 was $104,658 and $104,655, respectively.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	NOTE 3: INVENTORIES Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of March 31, 2018 and December 31, 2017, the Company’s inventories were composed of: March 31, December 31, 2018 2017 Unaudited Audited Raw materials $ 3,705 $ 4,276 Work in progress 6,161 8,435 Finished products 10,520 9,314 Total $ 20,386 $ 22,025

Commitments and Contingent Liab

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	NOTE 4: COMMITMENTS AND CONTINGENT LIABILITIES The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2024. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2021. As of March 31, 2018 and December 31, 2017, the Company pledged bank deposits of $1,043 and $1,038, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Company’s lease and other contractual commitments of $1,208 and $1,202, respectively. In the first quarter of 2018, the Company made a milestone payment of $5.5 million (the “Milestone Payment”) to the Technion Research and Development Foundation (“Technion”) pursuant to the settlement agreement dated February 10, 2015 (the “Settlement Agreement”). Pursuant to the Settlement Agreement, and in exchange for a release of potential disputes regarding intellectual property developed by our founder and previously assigned to us,

Long Term Loan

Long Term Loan	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Long Term Loan	NOTE 5: LONG TERM LOAN On February 7, 2018, the Company and certain of its subsidiaries entered into a Loan and Security Agreement (“2018 Loan Agreement”) with BioPharma Credit PLC pursuant to which such lender made a term loan to the Company in the principal amount of $150 million (the “2018 Credit Facility”). The term loan, which was drawn in full upon execution of the 2018 Loan Agreement, bears interest at 9.0% per annum, payable quarterly in arrears. The Company used a portion of the proceeds of the 2018 Credit Facility to repay in full the Company’s obligations under its existing term loan credit facility and will use the remaining proceeds to fund general corporate purposes. The 2018 Credit Facility will mature on February 7, 2023, at which time any unpaid principal and accrued unpaid interest in respect of the term loan will be due and payable. The Company may prepay the term loan, in full, at any time. The Company must prepay the term loan (i) in full or in part upon the entry into certain licensing arrangements and (ii) in full in the event of a change of control. In each case, any prepayment (whether permitted or mandatory) is subject to a prepayment premium and/or make-whole payment. The pre-payment fee if the Company prepays outstanding loan amounts prior to February 7, 2021 is 2.0% and is 1.0% if made after the February 7, 2021 but prior to February 7, 2022. All obligations under the 2018 Credit Facility are guaranteed by the Company’s current and future direct and indirect subsidiaries. In addition, the obligations under the 2018 Credit Facility are secured by a first-priority security interest in substantially all of the property and assets of, as well as the equity interests owned by, the Company and certain of the other guarantors. The 2018 Credit Facility contains other customary covenants. Total issuance costs of the 2018 Credit Facility, which were $840 as of March 31, 2018, are presented net of the 2018 Credit Facility proceeds and are amortized to interest expense over the five year term of the loan using the effective interest method. On February 7, 2018, the Company’s 2015 term loan credit facility

Share Capital

Share Capital	3 Months Ended
	Mar. 31, 2018
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Share Capital	NOTE 6: SHARE CAPITAL For the three months ended March 31, 2018, warrants to purchase 201,692 ordinary shares with an exercise price of $3.59 per share were cashlessly exercised, resulting in the issuance of 167,212 ordinary shares. Also, warrants to purchase 1,549 ordinary shares with an exercise price of $3.59 per share were exercised for cash. For the three months ended March 31, 2018, options to purchase 500,166 ordinary shares were exercised, resulting in the issuance of 495,530 ordinary shares.

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plans	NOTE 7: EQUITY INCENTIVE PLANS In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted stock units (“RSUs”), performance units, long-term cash awards and other share-based awards. Options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan vest in equal installments over a three-year period. As of March 31, 2018, 10,706,475 ordinary shares were available for grant under the 2015 Plan. A summary of the status of the Company’s option plans as of March 31, 2018 and changes during the period then ended is presented below: Three months ended March 31, 2018 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,806,027 $ 10.64 Granted 1,904,634 21.15 Exercised (500,166 ) 5.27 Forfeited and cancelled (71,307 ) 11.86 Outstanding as of March 31, 2018 16,139,188 $ 12.04 Exercisable options 7,375,692 $ 9.31 A summary of the status of the Company’s RSUs as of March 31, 2018 and changes during the period then ended is presented below: Three months ended March 31, 2018 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,651,219 $ 9.66 Granted 427,518 21.15 Vested (256,578 ) 7.15 Forfeited and cancelled (7,669 ) 8.49 Unvested as of March 31, 2018 1,814,490 $ 12.73 In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company began its offerings under the ESPP on August 1, 2016. As of March 31, 2018, 2,277,705 ordinary shares were available to be purchased by eligible employees under the ESPP and 259,281 shares had been issued under the ESPP. The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited Stock Option Plans Expected term (years) 6.25 6.25 5.5-6.25 Expected volatility 55.04 % 59.15 % 56.74%-59.45% Risk-free interest rate 2.77 % 2.23 % 1.97%-2.23% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 52.58 % 82.00% 76.37%-82.00% Risk-free interest rate 1.61 % 0.62% 0.62%-1.13% Dividend yield 0.00% 0.00% 0.00% The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2018 and 2017 and the year ended December 31, 2017 was: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited Cost of revenues $ 164 $ 143 $ 467 Research, development and clinical trials 906 862 3,587 Sales and marketing 1,436 655 3,784 General and administrative 6,014 2,901 19,278 Total share-based compensation expense $ 8,520 $ 4,561 $ 27,116

Supplemental Information

Supplemental Information	3 Months Ended
	Mar. 31, 2018
Geographic Areas Long Lived Assets [Abstract]
Supplemental Information	NOTE 8: SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: March 31, December 31, 2018 2017 Unaudited Audited United States $ 9,950 $ 10,372 Switzerland 5,178 5,114 Israel 2,112 2,081 Others 682 500 Total $ 17,922 $ 18,067 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited United States $ 37,802 $ 29,160 $ 134,688 EMEA (*) 13,874 5,667 42,035 Japan 449 53 303 Total $ 52,125 $ 34,880 $ 177,026 (*) including Germany $ 13,358 $ 5,400 $ 40,215

Organization and Basis of Pre17

Organization and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements . In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), an updated standard on revenue recognition and issued subsequent amendments to the initial guidance in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08, 2016-10, 2016-12 and 2016-20, respectively (collectively, “ASC 606”). The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods and services to patients in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. In addition, the new standard requires expanded disclosures . The Company has adopted the standard effective January 1, 2018 using the modified retrospective method for all contracts. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the guidance of ASC 605, (ASC 605). The amount of revenue recognized in 2018 reflects the consideration to which the Company expects to be entitled to receive in exchange for Optune. In preparation for adoption of the standard, the Company has implemented internal controls and key system functionality to enable the preparation of financial information, including the assessment of the impact of the standard. The Company uses the portfolio approach to apply the standard to portfolios of contracts with similar characteristics. Adoption of the standard resulted in an increase to trade receivables of $2,807, deferred revenues of $645 and a cumulative impact to the Company's accumulated deficit as of January 1, 2018 of $2,162. Optune is comprised of two main components: (1) an electric field generator and (2) transducer arrays and related accessories. We retain title to the electric field generator, and the patient is provided replacement transducer arrays and technical support for the device during the term of treatment. The electric field generator and transducer arrays are always supplied and function together and are not sold on a standalone basis. To recognize revenue under ASC 606, the Company applies the following five steps: 1. Identify the contract with a patient. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. In accordance with ASC 606, the impact of our adoption of ASC 606 on our condensed consolidated statements of income for the three months ended March 31, 2018 was a decrease in net revenues of $3,538, a decrease in tax expenses of $202, an increase in net loss of $3,336 and a decrease in our basic and diluted net loss per ordinary share of $0.04. The impact of our adoption of Topic 606 on our balance sheet as of March 31, 2018 was a decrease in trade receivables of $1,172, an increase to other payables and accrued expenses (deferred revenues net of tax provision) of $884 and an accumulated deficit as of March 31, 2018 of $1,174. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The Company adopted the standard effective as of January 1, 2018, and t In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2017. The Company adopted the standard retrospectively to all periods presented effective as of January 1, 2018. Recent Accounting Pronouncements. In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2020. The amendments in this update are effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements, footnote disclosures and employee benefit plans’ accounting.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of March 31, 2018 and December 31, 2017, the Company’s inventories were composed of: March 31, December 31, 2018 2017 Unaudited Audited Raw materials $ 3,705 $ 4,276 Work in progress 6,161 8,435 Finished products 10,520 9,314 Total $ 20,386 $ 22,025

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock Option Plans	A summary of the status of the Company’s option plans as of March 31, 2018 and changes during the period then ended is presented below: Three months ended March 31, 2018 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,806,027 $ 10.64 Granted 1,904,634 21.15 Exercised (500,166 ) 5.27 Forfeited and cancelled (71,307 ) 11.86 Outstanding as of March 31, 2018 16,139,188 $ 12.04 Exercisable options 7,375,692 $ 9.31
Schedule of RSU's	A summary of the status of the Company’s RSUs as of March 31, 2018 and changes during the period then ended is presented below: Three months ended March 31, 2018 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,651,219 $ 9.66 Granted 427,518 21.15 Vested (256,578 ) 7.15 Forfeited and cancelled (7,669 ) 8.49 Unvested as of March 31, 2018 1,814,490 $ 12.73
Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model	The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited Stock Option Plans Expected term (years) 6.25 6.25 5.5-6.25 Expected volatility 55.04 % 59.15 % 56.74%-59.45% Risk-free interest rate 2.77 % 2.23 % 1.97%-2.23% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 52.58 % 82.00% 76.37%-82.00% Risk-free interest rate 1.61 % 0.62% 0.62%-1.13% Dividend yield 0.00% 0.00% 0.00%
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards	The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2018 and 2017 and the year ended December 31, 2017 was: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited Cost of revenues $ 164 $ 143 $ 467 Research, development and clinical trials 906 862 3,587 Sales and marketing 1,436 655 3,784 General and administrative 6,014 2,901 19,278 Total share-based compensation expense $ 8,520 $ 4,561 $ 27,116

Supplemental Information (Table

Supplemental Information (Tables)	3 Months Ended
	Mar. 31, 2018
Geographic Areas Long Lived Assets [Abstract]
Schedule of Long-Lived Assets by Location	The following table presents long-lived assets by location: March 31, December 31, 2018 2017 Unaudited Audited United States $ 9,950 $ 10,372 Switzerland 5,178 5,114 Israel 2,112 2,081 Others 682 500 Total $ 17,922 $ 18,067
Schedule of Revenues by Geographic Region	The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2018 2017 2017 Unaudited Audited United States $ 37,802 $ 29,160 $ 134,688 EMEA (*) 13,874 5,667 42,035 Japan 449 53 303 Total $ 52,125 $ 34,880 $ 177,026 (*) including Germany $ 13,358 $ 5,400 $ 40,215

Organization and Basis of Pre21

Organization and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Organization and Basis of Presentation [Line Items]
Increase (decrease) in trade receivables	$ 1,672	$ 5,486	$ 23,228
Decrease in net revenue	52,125	34,880	177,026
Decrease in tax expenses	3,194	2,226	13,165
Net loss	$ (20,724)	$ (18,045)	$ (61,662)
Decrease in basic and diluted net loss per ordinary share	$ (0.23)	$ (0.21)	$ (0.70)
Increase in other payables and accrued expenses	$ (8,300)	$ (1,410)	$ 14,460
Accounting Standards Update 2014-09 [Member]
Organization and Basis of Presentation [Line Items]
Increase (decrease) in trade receivables	(1,172)		2,807
Increase in deferred revenue			645
Cumulative deficit effect adjustment resulting from ASU 2014-09 adoption	(1,174)		$ (2,162)
Decrease in net revenue	(3,538)
Decrease in tax expenses	(202)
Net loss	$ (3,336)
Decrease in basic and diluted net loss per ordinary share	$ (0.04)
Increase in other payables and accrued expenses	$ 884
Accounting Standards Update 2014-09 [Member] | First Generation Optune System Field Equipment [Member]
Organization and Basis of Presentation [Line Items]
Identify the contract with patient	Identify the contract with a patient. A contract with a patient exists when (i) the Company enters into an enforceable contract with a patient that defines each party’s rights regarding delivery of and payment for Optune, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for Optune is probable based on the payer’s intent and ability to pay the promised consideration. The evidence of a contract generally consists of a prescription, a patient service agreement and the verification of the assigned payer (“Payer”) for the contract and intention to collect.
Identify the performance obligations in the contract, description	Optune contracts include the lease of the device, the supply obligation of disposable transducer arrays and technical support for the term of treatment. To the extent a contract includes multiple promised products and/or services, the Company must apply judgment to determine whether those products and/or services are capable of being distinct in the context of the contract. If these criteria are not met the promised products and/or services are accounted for as a combined performance obligation. In the Company’s case, Optune’s device, support, and disposables are provided as one inseparable package of monthly treatment for a single monthly fee
Determine the transaction price, description	The transaction price is determined based on the consideration to which the Company will be entitled in exchange for providing Optune to the patient.
Allocate the transaction price to performance obligations in the contract, description	If a contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. As discussed above, there is one performance obligation under the Company’s contracts and, therefore, the monthly transaction price determined for the performance obligation will be recognized over time ratably over the monthly term of the treatment.
Recognize revenue when or as the company satisfies a performance obligation, description	The Company satisfies performance obligations over time as discussed above. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a patient. The patient consumes the benefits of Optune treatment on a daily basis over the monthly term. As this criterion is met, the revenues will be recognized over the monthly term.

Short-Term Investments - Additi

Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]
Short-term investments	$ 104,712	$ 104,719
Estimated fair value of short-term investments	$ 104,658	$ 104,655

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 3,705	$ 4,276
Work in progress	6,161	8,435
Finished products	10,520	9,314
Total	$ 20,386	$ 22,025

Commitments and Contingent Li24

Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Operating lease expiration description	The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2024.
Pledged bank deposits	$ 1,043	$ 1,038
Operating lease and other contractual commitments	$ 1,208	$ 1,202
Settlement agreement date	February 10, 2015
Settlement Agreement
Loss Contingencies [Line Items]
Settlement expense	$ 5,500
Net sales milestone	$ 250,000
Motor Vehicles
Loss Contingencies [Line Items]
Operating lease expiration description	The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2021.
Maximum
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2,024
Maximum | Motor Vehicles
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2,021

Long Term Loan - Additional Inf

Long Term Loan - Additional Information (Details) - USD ($) $ in Thousands	Feb. 07, 2018	Mar. 31, 2018
2018 Credit Facility
Line Of Credit Facility [Line Items]
Term loan, principal amount	$ 150,000
Interest on term loan credit facility	9.00%
Interest, frequency of payment	quarterly
Term loan credit facility, expiation date	Feb. 7, 2023
Debt issuance costs		$ 840
Term loan credit facility, maturity term		5 years
2018 Credit Facility | Prior to February 7, 2021
Line Of Credit Facility [Line Items]
Pre-payment fee, percentage	2.00%
2018 Credit Facility | February 7, 2021 to February 7, 2022
Line Of Credit Facility [Line Items]
Pre-payment fee, percentage	1.00%
Term Loan
Line Of Credit Facility [Line Items]
Debt issuance costs	$ 1,399
Debt instrument, un-amortized discount	$ 1,160

Share Capital - Additional Info

Share Capital - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Share Capital [Line Items]
The Number of ordinary shares that originally could be purchased by exercise of warrants	201,692
Warrants exercise price | $ / shares	$ 3.59
Options exercised	500,166
Ordinary shares issued upon option exercise	495,530
Warrant
Share Capital [Line Items]
The Number of ordinary shares that originally could be purchased by exercise of warrants in cash	1,549
Warrant | Warrants Not Settleable in Cash
Share Capital [Line Items]
Number of shares issued upon the exercise of warrants	167,212

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares available for grants	2,277,705
Shares issued under plan	259,281
2015 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares available for grants		10,706,475
2015 Plan | Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock awards granted, vesting period	4 years
Stock awards granted, expiration period	10 years
2015 Plan | RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock awards granted, vesting period	3 years

Equity Incentive Plans - Schedu

Equity Incentive Plans - Schedule of Stock Option Plan (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of options
Number of options, Outstanding at beginning of year | shares	14,806,027
Number of options, Granted | shares	1,904,634
Number of options, Exercised | shares	(500,166)
Number of options, Forfeited and cancelled | shares	(71,307)
Number of options, Outstanding at ending of year | shares	16,139,188
Number of options, Exercisable options | shares	7,375,692
Weighted average exercise price
Weighted average exercise price, Outstanding at beginning of year | $ / shares	$ 10.64
Weighted average exercise price, Granted | $ / shares	21.15
Weighted average exercise price, Exercised | $ / shares	5.27
Weighted average exercise price, Forfeited and cancelled | $ / shares	11.86
Weighted average exercise price, Outstanding at end of year | $ / shares	12.04
Weighted average exercise price, Exercisable options | $ / shares	$ 9.31

Equity Incentive Plans - Sche29

Equity Incentive Plans - Schedule of RSU's (Details) - RSUs	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of RSUs
Number of RSUs, unvested at beginning of year | shares	1,651,219
Number of RSUs, granted | shares	427,518
Number of RSUs, vested | shares	(256,578)
Number of RSUs, forfeited and cancelled | shares	(7,669)
Number of RSUs, unvested at ending of year | shares	1,814,490
Weighted average grant date fair value price
Weighted average grant date date fair value price, unvested at beginning of year | $ / shares	$ 9.66
Weighted average grant date date fair value price, granted | $ / shares	21.15
Weighted average grant date date fair value price, vested | $ / shares	7.15
Weighted average grant date date fair value price, forfeited and cancelled | $ / shares	8.49
Weighted average grant date date fair value price, unvested at ending of year | $ / shares	$ 12.73

Equity Incentive Plans - Sche30

Equity Incentive Plans - Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stock Option Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 2 months 30 days	6 years 2 months 30 days
Expected volatility	55.04%	59.15%
Expected volatility, minimum			56.74%
Expected volatility, maximum			59.45%
Risk-free interest rate	2.77%	2.23%
Risk-free interest rate, minimum			1.97%
Risk-free interest rate, maximum			2.23%
Dividend yield	0.00%	0.00%	0.00%
Stock Option Plans | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)			5 years 6 months
Stock Option Plans | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)			6 years 2 months 30 days
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 months	6 months	6 months
Expected volatility	52.58%	82.00%
Expected volatility, minimum			76.37%
Expected volatility, maximum			82.00%
Risk-free interest rate	1.61%	0.62%
Risk-free interest rate, minimum			0.62%
Risk-free interest rate, maximum			1.13%
Dividend yield	0.00%	0.00%	0.00%

Equity Incentive Plans - Sche31

Equity Incentive Plans - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 8,520	$ 4,561	$ 27,116
Cost of Revenues
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	164	143	467
Research, Development and Clinical Trials
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	906	862	3,587
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	1,436	655	3,784
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 6,014	$ 2,901	$ 19,278

Supplemental Information - Sche

Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 17,922	$ 18,067
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	9,950	10,372
Switzerland
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	5,178	5,114
Israel
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	2,112	2,081
Others
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 682	$ 500

Supplemental Information - Sc33

Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 52,125	$ 34,880	$ 177,026
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	37,802	29,160	134,688
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	13,874	5,667	42,035
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 449	$ 53	$ 303

Supplemental Information - Sc34

Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 52,125	$ 34,880	$ 177,026
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 13,358	$ 5,400	$ 40,215