NovoCure Limited (NVCR) 10-Q 25 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 18, 2019
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	NVCR
Entity Registrant Name	Novocure Ltd
Entity Central Index Key	0001645113
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		98,176,183
Entity File Number	001-37565
Entity Tax Identification Number	981057807
Entity Address, Address Line One	No. 4 The Forum
Entity Address, Address Line Two	Grenville Street
Entity Address, City or Town	St. Helier
Entity Address, State or Province	Jersey
Entity Address, Postal Zip Code	JE2 4UF
City Area Code	44 (0) 15
Local Phone Number	3475 6700

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 180,073	$ 140,622
Short-term investments	104,511	105,256
Restricted cash	2,110	2,134
Trade receivables	42,533	36,523
Receivables and prepaid expenses	15,302	14,279
Inventories	25,454	22,555
Total current assets	369,983	321,369
LONG-TERM ASSETS:
Property and equipment, net	8,399	8,442
Field equipment, net	7,466	6,924
Right-of-use assets, net	14,659	0
Other long-term assets	5,682	3,058
Total long-term assets	36,206	18,424
TOTAL ASSETS	406,189	339,793
CURRENT LIABILITIES:
Trade payables	30,069	26,708
Other payables, lease liabilities and accrued expenses	43,498	37,852
Total current liabilities	73,567	64,560
LONG-TERM LIABILITIES:
Long-term loan, net of discount and issuance costs	149,344	149,268
Deferred revenue	8,874	9,929
Employee benefit liabilities	3,610	2,683
Long-term lease liabilities	11,582	0
Other long-term liabilities	306	1,094
Total long-term liabilities	173,716	162,974
TOTAL LIABILITIES	247,283	227,534
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' EQUITY:
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 97,858,876 shares and 93,254,185 shares at June 30, 2019 (unaudited) and December 31, 2018, respectively	0	0
Additional paid-in capital	818,338	757,314
Accumulated other comprehensive income (loss)	(2,357)	(1,400)
Retained earnings (accumulated deficit)	(657,075)	(643,655)
Total shareholders' equity	158,906	112,259
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 406,189	$ 339,793

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	97,858,876	93,254,185
Common stock, shares outstanding	97,858,876	93,254,185

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Statement [Abstract]
Net revenues	$ 86,713	$ 61,514	$ 160,022	$ 113,639	$ 248,069
Cost of revenues	21,106	19,833	40,920	38,071	80,048
Gross profit	65,607	41,681	119,102	75,568	168,021
Operating costs and expenses:
Research, development and clinical trials	19,454	11,362	36,496	22,466	50,574
Sales and marketing	23,708	19,196	46,041	37,331	77,663
General and administrative	21,249	18,208	41,487	35,533	73,456
Total operating costs and expenses	64,411	48,766	124,024	95,330	201,693
Operating income (loss)	1,196	(7,085)	(4,922)	(19,762)	(33,672)
Financial expenses (income), net	1,239	2,860	3,610	7,713	12,270
Income (loss) before income taxes	(43)	(9,945)	(8,532)	(27,475)	(45,942)
Income taxes	1,227	5,565	4,888	8,759	17,617
Net income (loss)	$ (1,270)	$ (15,510)	$ (13,420)	$ (36,234)	$ (63,559)
Basic and diluted net income (loss) per ordinary share	$ (0.01)	$ (0.17)	$ (0.14)	$ (0.40)	$ (0.69)
Weighted average number of ordinary shares used in computing basic and diluted net income (loss) per share	96,356,317	91,331,862	95,583,802	90,658,735	91,828,043

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (1,270)	$ (15,510)	$ (13,420)	$ (36,234)	$ (63,559)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	47	11	(214)	21	27
Pension benefit plan	(662)	44	(743)	49	(84)
Total comprehensive income (loss)	$ (1,885)	$ (15,455)	$ (14,377)	$ (36,164)	$ (63,616)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (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 and vested RSUs		2,581		2,581
Exercise of options and warrants and vested RSUs (in shares)			920,869
Cumulative effect adjustment on retained earnings (*)	[1]	2,162				2,162
Other comprehensive income (loss), net of tax benefit		15			15
Net income (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
Balance at Dec. 31, 2017		113,564		697,165	(1,343)	(582,258)
Balance (in shares) at Dec. 31, 2017			89,478,032
Net income (loss)		(36,234)
Balance at Jun. 30, 2018		112,081		729,684	(1,273)	(616,330)
Balance (in shares) at Jun. 30, 2018			92,503,273
Balance at Dec. 31, 2017		113,564		697,165	(1,343)	(582,258)
Balance (in shares) at Dec. 31, 2017			89,478,032
Net income (loss)		(63,559)
Balance at Dec. 31, 2018		112,259		757,314	(1,400)	(643,655)
Balance (in shares) at Dec. 31, 2018			93,254,185
Balance at Mar. 31, 2018		106,118		708,266	(1,328)	(600,820)
Balance (in shares) at Mar. 31, 2018			90,398,901
Share-based compensation to employees		10,206		10,206
Proceeds from issuance of shares		938		938
Proceeds from issuance of shares (in shares)			54,386
Exercise of options and warrants and vested RSUs		10,274		10,274
Exercise of options and warrants and vested RSUs (in shares)			2,049,986
Other comprehensive income (loss), net of tax benefit		55			55
Net income (loss)		(15,510)				(15,510)
Balance at Jun. 30, 2018		112,081		729,684	(1,273)	(616,330)
Balance (in shares) at Jun. 30, 2018			92,503,273
Balance at Dec. 31, 2018		112,259		757,314	(1,400)	(643,655)
Balance (in shares) at Dec. 31, 2018			93,254,185
Share-based compensation to employees		9,649		9,649
Exercise of options and warrants and vested RSUs		16,978		16,978
Exercise of options and warrants and vested RSUs (in shares)			2,438,612
Other comprehensive income (loss), net of tax benefit		(342)			(342)
Net income (loss)		(12,150)				(12,150)
Balance at Mar. 31, 2019		126,394		783,941	(1,742)	(655,805)
Balance (in shares) at Mar. 31, 2019			95,692,797
Balance at Dec. 31, 2018		112,259		757,314	(1,400)	(643,655)
Balance (in shares) at Dec. 31, 2018			93,254,185
Net income (loss)		(13,420)
Balance at Jun. 30, 2019		158,906		818,338	(2,357)	(657,075)
Balance (in shares) at Jun. 30, 2019			97,858,876
Balance at Mar. 31, 2019		126,394		783,941	(1,742)	(655,805)
Balance (in shares) at Mar. 31, 2019			95,692,797
Share-based compensation to employees		13,732		13,732
Proceeds from issuance of shares		1,208		1,208
Proceeds from issuance of shares (in shares)			43,421
Exercise of options and warrants and vested RSUs		19,457		19,457
Exercise of options and warrants and vested RSUs (in shares)			2,122,658
Other comprehensive income (loss), net of tax benefit		(615)			(615)
Net income (loss)		(1,270)				(1,270)
Balance at Jun. 30, 2019		$ 158,906		$ 818,338	$ (2,357)	$ (657,075)
Balance (in shares) at Jun. 30, 2019			97,858,876
[1]	Resulting from the adoption of ASC 606.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement Of Stockholders Equity [Abstract]
Other comprehensive income (loss), tax benefit	$ 69	$ 11	$ 3	$ 5

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (1,270)	$ (15,510)	$ (13,420)	$ (36,234)	$ (63,559)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,132	2,287	4,061	4,490	9,006
Asset write-downs and impairment of field equipment	86	93	161	142	407
Share-based compensation to employees	13,732	10,206	23,381	18,726	39,846
Decrease (increase) in trade receivables	(3,313)	(3,599)	(6,010)	(5,271)	(4,151)
Amortization of discount (premium)	(587)	(370)	(1,165)	2,057	1,022
Decrease (increase) in receivables and prepaid expenses	(1,685)	(1,277)	(1,024)	(3,111)	(6,174)
Decrease (increase) in inventories	(1,316)	482	(2,899)	2,120	(529)
Decrease (increase) in other long-term assets	(632)	(278)	(2,531)	(898)	(949)
Decrease (increase) in right of use assets, net	800		2,613
Increase (decrease) in trade payables	126	1,016	3,361	3,229	9,503
Increase (decrease) in other payables and accrued expenses	2,097	(528)	1,108	(8,828)	4,210
Increase (decrease) in employee benefit liabilities, net	50	1	93	77	133
Increase (decrease) in long-term lease liability	(575)		(1,152)
Increase (decrease) in other long-term liabilities	(579)	(16)	(1,826)	(816)	9,370
Net cash provided by (used in) operating activities	9,066	(7,493)	4,751	(24,317)	(1,865)
Cash flows from investing activities:
Purchase of property and equipment	(892)	(854)	(1,752)	(1,591)	(2,916)
Purchase of field equipment	(1,505)	(604)	(2,970)	(1,974)	(3,795)
Proceeds from maturity of short-term investments	105,000	60,000	210,661	105,000	255,000
Purchase of short-term investments	(104,351)	(59,384)	(208,676)	(104,134)	(253,782)
Net cash provided by (used in) investing activities	(1,748)	(842)	(2,737)	(2,699)	(5,493)
Cash flows from financing activities:
Proceeds from issuance of shares, net	1,208	938	1,208	938	1,835
Proceeds from long-term loan, net				149,150	149,150
Repayment of long-term loan				(100,000)	(100,000)
Repayment of other long-term loan	(8)	(24)	(16)	(41)	(84)
Exercise of options and warrants	19,457	10,274	36,435	12,855	18,468
Net cash provided by (used in) financing activities	20,657	11,188	37,627	62,902	69,369
Effect of exchange rate changes on cash and cash equivalents	47	11	(214)	21	27
Increase (decrease) in cash, cash equivalents and restricted cash	28,022	2,864	39,427	35,907	62,038
Cash, cash equivalents and restricted cash at beginning of period	154,161	113,761	142,756	80,718	80,718
Cash, cash equivalents and restricted cash at the end of the period	182,183	116,625	182,183	116,625	142,756
Cash paid during the period for:
Income taxes	4,358	8,256	7,391	12,014	20,350
Interest	3,415	$ 3,416	6,794	$ 6,425	$ 13,334
Non-cash activities upon implementation of ASC-842:
Right of use assets obtained in exchange for lease obligations	$ 1,539		$ 17,273

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2019
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 delivery systems, including Optune and NovoTTF-100L , for the treatment of solid tumors. The Company has received regulatory approval from the U.S. Food and Drug Administration (“FDA”) under the Premarket Approval pathway and regulatory approvals and clearances in certain other countries for Optune to treat adult patients with GBM. The Company also has received FDA approval under the Humanitarian Device Exemption pathway to market NovoTTF-100L for unresectable, locally advanced or metastatic MPM in combination with standard chemotherapies. Financial statement preparation . The accompanying consolidated financial statements include the accounts of the Company 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 for the periods presented. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles 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, 2018 (the “2018 10-K”) filed with the Securities and Exchange Commission on February 28, 2019. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2018 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, not to separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: 1. The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. 2. The lease component, if accounted for separately, would be classified as an operating lease. As the non-lease component(s) associated with the lease component is the predominant component of the combined component, the Company accounts for the combined component in accordance with Topic 606. The consolidated financial statements for the three and six months ended June 30, 2019 are presented under the new standard, while comparative year and other periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	6 Months Ended
	Jun. 30, 2019
Cash Cash Equivalents And Short Term Investments [Abstract]
Cash, Cash equivalents and Short-Term investments	NOTE 2: CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. June 30, December 31, 2019 2018 Unaudited Audited Cash $ 8,896 $ 9,197 Money market funds 171,177 131,425 Total cash and cash equivalents $ 180,073 $ 140,622 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. June 30, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,511 $ 105,256 The estimated fair value of the Company’s short-term investments as of June 30, 2019 and December 31, 2018 was $ 104,564 105,266 We use quoted market prices to determine the fair value of cash equivalents and short-term investments, therefore they are categorized as level 1.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE 3: INVENTORIES Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of June 30, 2019 and December 31, 2018, the Company’s inventories were composed of: June 30, December 31, 2019 2018 Unaudited Audited Raw materials $ 3,431 $ 870 Work in progress 9,116 8,667 Finished products 12,907 13,018 Total $ 25,454 $ 22,555

Commitments Rights of Use and C

Commitments Rights of Use and Contingent Liabilities	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments, Rights of Use and Contingent Liabilities	NOTE 4: COMMITMENTS, RIGHTS OF USE AND CONTINGENT LIABILITIES Operating Leases and Rights of Use. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2022. Under ASU No. 2016-02, “Leases (Topic 842), all leases with durations greater than 12 months, including non-cancelable operating leases, are now recognized on the balance sheet. The aggregated present value of lease agreements, net of deferred rent, are recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between other payables within current liabilities and long-term lease liabilities within long-term liabilities. The lease liabilities are presented without consideration for deferred rent. Upon implementation of ASC-842, effective January 1, 2019, the Company recorded an increase in right-of-use assets obtained in exchange for lease obligations of $15,733 on our opening balance sheet. Lease and rental payments for the six months ended June 30, 2019, totaled $2,374. Future minimum lease payments under non-cancelable operating leases as of June 30, 2019, are as follows: June 30, 2019 Unaudited Future minimum lease payments: 2019 (excluding the six months ended June 30, 2019) $ 2,265 2020 4,116 2021 3,826 2022 2,927 2023 1,899 Thereafter 3,695 Total future minimum lease payments $ 18,728 Less imputed interest (3,198 ) Net present value of future minimum lease payments $ 15,530 Presented as of June 30, 2019: Short-term lease liabilities $ 3,948 Long-term lease liabilities 11,582 Net present value of future minimum lease payments $ 15,530 Weighted average of remaining operating lease term 5.24 Weighted average of operating lease discount rate 7.44 % The right-of-use assets are presented net of $684 in deferred rents. Pledged deposits and bank guarantees. As of June 30, 2019 and December 31, 2018, the Company pledged bank deposits of $ 1,143 and $ 1,143 , 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 $ 1,307 and $ 1,299 , respectively

Share Capital

Share Capital	6 Months Ended
	Jun. 30, 2019
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Share Capital	NOTE 5: SHARE CAPITAL 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 generally vest over a three-year period. RSUs granted under the 2015 Plan that are cancelled before expiration become available for future grants. As of June 30, 2019, 11,986,679 ordinary shares were available for grant under the 2015 Plan. A summary of the status of the Company’s option plans as of June 30, 2019 and changes during the period then ended is presented below: Six months ended June 30, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 1,411,781 47.40 Exercised (3,837,716 ) 9.91 Forfeited and cancelled (86,223 ) 16.87 Outstanding as of June 30, 2019 11,926,057 $ 18.72 Exercisable options 4,348,026 $ 13.82 For the six months, ended June 30, 2019, options to purchase 3,837,716 3,837,716 A summary of the status of the Company’s RSUs as of June 30, 2019 and changes during the period then ended is presented below: Six months ended June 30, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 540,294 47.26 Vested (723,554 ) 12.99 Forfeited and cancelled (9,427 ) 29.18 Unvested as of June 30, 2019 1,420,510 $ 27.11 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 June 30, 2019 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: Six months ended June 30, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 5.50-6.50 5.50-6.25 5.50-6.25 Expected volatility 55%-57% 52%-55% 52%-55% Risk-free interest rate 2.21%-2.40% 2.70%-2.89% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% 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 and six months ended June 30, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended June 30, Six months ended June 30, Year ended December 31, 2019 2018 2019 2018 2018 Unaudited Unaudited Audited Cost of revenues $ 595 $ 263 $ 1,021 $ 428 $ 1,261 Research, development and clinical trials 1,813 1,286 3,001 2,192 4,709 Sales and marketing 3,255 1,893 5,217 3,329 7,393 General and administrative 8,069 6,764 14,142 12,777 26,483 Total share-based compensation expense $ 13,732 $ 10,206 $ 23,381 $ 18,726 $ 39,846

Supplemental Information

Supplemental Information	6 Months Ended
	Jun. 30, 2019
Geographic Areas Long Lived Assets [Abstract]
Supplemental Information	NOTE 6: SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: June 30, December 31, 2019 2018 Unaudited Audited United States $ 8,152 $ 8,289 Switzerland 2,852 2,513 Israel 2,473 2,236 Germany 871 1,054 Others 1,517 1,274 Total $ 15,865 $ 15,366 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended June 30, Six months ended June 30, Year ended December 31, 2019 2018 2019 2018 2018 Unaudited Unaudited Audited United States $ 58,934 $ 41,935 $ 105,538 $ 79,738 $ 168,414 EMEA (*) 22,505 18,522 45,025 32,396 72,485 Japan 4,185 1,057 7,555 1,505 6,351 Greater China (1) 1,089 - 1,904 - 819 Total $ 86,713 $ 61,514 $ 160,022 $ 113,639 $ 248,069 (*) including Germany $ 22,139 $ 17,651 $ 42,377 $ 31,009 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (referred to in this table as “Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, not to separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: 1. The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. 2. The lease component, if accounted for separately, would be classified as an operating lease. As the non-lease component(s) associated with the lease component is the predominant component of the combined component, the Company accounts for the combined component in accordance with Topic 606. The consolidated financial statements for the three and six months ended June 30, 2019 are presented under the new standard, while comparative year and other periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases.

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	6 Months Ended
	Jun. 30, 2019
Cash Cash Equivalents And Short Term Investments [Abstract]
Summary of Cash and Cash Equivalents	Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. June 30, December 31, 2019 2018 Unaudited Audited Cash $ 8,896 $ 9,197 Money market funds 171,177 131,425 Total cash and cash equivalents $ 180,073 $ 140,622
Summary of Amortized Cost and Recorded Basis of T-bills in 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. June 30, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,511 $ 105,256

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of June 30, 2019 and December 31, 2018, the Company’s inventories were composed of: June 30, December 31, 2019 2018 Unaudited Audited Raw materials $ 3,431 $ 870 Work in progress 9,116 8,667 Finished products 12,907 13,018 Total $ 25,454 $ 22,555

Commitments Rights of Use and_2

Commitments Rights of Use and Contingent Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease	Future minimum lease payments under non-cancelable operating leases as of June 30, 2019, are as follows: June 30, 2019 Unaudited Future minimum lease payments: 2019 (excluding the six months ended June 30, 2019) $ 2,265 2020 4,116 2021 3,826 2022 2,927 2023 1,899 Thereafter 3,695 Total future minimum lease payments $ 18,728 Less imputed interest (3,198 ) Net present value of future minimum lease payments $ 15,530 Presented as of June 30, 2019: Short-term lease liabilities $ 3,948 Long-term lease liabilities 11,582 Net present value of future minimum lease payments $ 15,530 Weighted average of remaining operating lease term 5.24 Weighted average of operating lease discount rate 7.44 %

Share Capital (Tables)

Share Capital (Tables)	6 Months Ended
	Jun. 30, 2019
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Schedule of Stock Option Plans	A summary of the status of the Company’s option plans as of June 30, 2019 and changes during the period then ended is presented below: Six months ended June 30, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 1,411,781 47.40 Exercised (3,837,716 ) 9.91 Forfeited and cancelled (86,223 ) 16.87 Outstanding as of June 30, 2019 11,926,057 $ 18.72 Exercisable options 4,348,026 $ 13.82
Schedule of RSU's	A summary of the status of the Company’s RSUs as of June 30, 2019 and changes during the period then ended is presented below: Six months ended June 30, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 540,294 47.26 Vested (723,554 ) 12.99 Forfeited and cancelled (9,427 ) 29.18 Unvested as of June 30, 2019 1,420,510 $ 27.11
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: Six months ended June 30, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 5.50-6.50 5.50-6.25 5.50-6.25 Expected volatility 55%-57% 52%-55% 52%-55% Risk-free interest rate 2.21%-2.40% 2.70%-2.89% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% 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 and six months ended June 30, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended June 30, Six months ended June 30, Year ended December 31, 2019 2018 2019 2018 2018 Unaudited Unaudited Audited Cost of revenues $ 595 $ 263 $ 1,021 $ 428 $ 1,261 Research, development and clinical trials 1,813 1,286 3,001 2,192 4,709 Sales and marketing 3,255 1,893 5,217 3,329 7,393 General and administrative 8,069 6,764 14,142 12,777 26,483 Total share-based compensation expense $ 13,732 $ 10,206 $ 23,381 $ 18,726 $ 39,846

Supplemental Information (Table

Supplemental Information (Tables)	6 Months Ended
	Jun. 30, 2019
Geographic Areas Long Lived Assets [Abstract]
Schedule of Long-Lived Assets by Location	The following table presents long-lived assets by location: June 30, December 31, 2019 2018 Unaudited Audited United States $ 8,152 $ 8,289 Switzerland 2,852 2,513 Israel 2,473 2,236 Germany 871 1,054 Others 1,517 1,274 Total $ 15,865 $ 15,366
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 June 30, Six months ended June 30, Year ended December 31, 2019 2018 2019 2018 2018 Unaudited Unaudited Audited United States $ 58,934 $ 41,935 $ 105,538 $ 79,738 $ 168,414 EMEA (*) 22,505 18,522 45,025 32,396 72,485 Japan 4,185 1,057 7,555 1,505 6,351 Greater China (1) 1,089 - 1,904 - 819 Total $ 86,713 $ 61,514 $ 160,022 $ 113,639 $ 248,069 (*) including Germany $ 22,139 $ 17,651 $ 42,377 $ 31,009 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (referred to in this table as “Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K.

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash	$ 8,896	$ 9,197
Money market funds	171,177	131,425
Total cash and cash equivalents	$ 180,073	$ 140,622

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short-Term Investments - Summary of Amortized Cost And Recorded Basis of T-bills in Short Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Short-term investments	$ 104,511	$ 105,256

Cash, Cash Equivalents and Sh_5

Cash, Cash Equivalents and Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Estimated fair value of short-term investments	$ 104,564	$ 105,266

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 3,431	$ 870
Work in progress	9,116	8,667
Finished products	12,907	13,018
Total	$ 25,454	$ 22,555

Commitments, Rights of Use and

Commitments, Rights of Use and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Operating lease expiration description			The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029.
Operating lease, extistence of option to extend			true
Increase in right-of-use assets obtained in exchange for lease obligations	$ 15,733	$ 1,539	$ 17,273
Lease and rental payments			2,374
Deferred rent		684	684
Pledged bank deposits		1,143	1,143	$ 1,143
Operating lease and other contractual commitments		$ 1,307	$ 1,307	$ 1,299
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 2022.
Maximum
Loss Contingencies [Line Items]
Operating lease agreements, expiration year			2029
Maximum | Motor Vehicles
Loss Contingencies [Line Items]
Operating lease agreements, expiration year			2022

Commitments, Rights of Use an_2

Commitments, Rights of Use and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Future minimum lease payments:
2019 (excluding the six months ended June 30, 2019)	$ 2,265
2020	4,116
2021	3,826
2022	2,927
2023	1,899
Thereafter	3,695
Total future minimum lease payments	18,728
Less imputed interest	(3,198)
Net present value of future minimum lease payments	15,530
Short-term lease liabilities	3,948
Long-term lease liabilities	11,582	$ 0
Net present value of future minimum lease payments	$ 15,530
Weighted average of remaining operating lease term	5 years 2 months 26 days
Weighted average of operating lease discount rate	7.44%

Share Capital - Additional Info

Share Capital - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019shares
Share Capital [Line Items]
Options exercised	3,837,716
Ordinary shares issued upon option exercise	3,837,716
ESPP
Share Capital [Line Items]
Ordinary shares available for grants	3,078,989
Shares issued under plan	390,614
2015 Plan
Share Capital [Line Items]
Ordinary shares available for grants	11,986,679
2015 Plan | Option
Share Capital [Line Items]
Stock awards granted, vesting period	4 years
Stock awards granted, expiration period	10 years
2015 Plan | RSUs
Share Capital [Line Items]
Stock awards granted, vesting period	3 years

Share Capital - Schedule of Sto

Share Capital - Schedule of Stock Option Plan (Details)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of options
Number of options, Outstanding at beginning of year | shares	14,438,215
Number of options, Granted | shares	1,411,781
Number of options, Exercised | shares	(3,837,716)
Number of options, Forfeited and cancelled | shares	(86,223)
Number of options, Outstanding at ending of year | shares	11,926,057
Number of options, Exercisable options | shares	4,348,026
Weighted average exercise price
Weighted average exercise price, Outstanding at beginning of year | $ / shares	$ 13.56
Weighted average exercise price, Granted | $ / shares	47.40
Weighted average exercise price, Exercised | $ / shares	9.91
Weighted average exercise price, Forfeited and cancelled | $ / shares	16.87
Weighted average exercise price, Outstanding at end of year | $ / shares	18.72
Weighted average exercise price, Exercisable options | $ / shares	$ 13.82

Share Capital - Schedule of RSU

Share Capital - Schedule of RSU's (Details) - RSUs	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of RSUs
Number of RSUs, unvested at beginning of year | shares	1,613,197
Number of RSUs, granted | shares	540,294
Number of RSUs, vested | shares	(723,554)
Number of RSUs, forfeited and cancelled | shares	(9,427)
Number of RSUs, unvested at ending of year | shares	1,420,510
Weighted average grant date fair value price
Weighted average grant date fair value price, unvested at beginning of year | $ / shares	$ 14.04
Weighted average grant date fair value price, granted | $ / shares	47.26
Weighted average grant date fair value price, vested | $ / shares	12.99
Weighted average grant date fair value price, forfeited and cancelled | $ / shares	29.18
Weighted average grant date fair value price, unvested at ending of year | $ / shares	$ 27.11

Share Capital - Schedule of Fai

Share Capital - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Stock Option Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, minimum	55.00%	52.00%	52.00%
Expected volatility, maximum	57.00%	55.00%	55.00%
Risk-free interest rate, minimum	2.21%	2.70%	2.70%
Risk-free interest rate, maximum	2.40%	2.89%	2.99%
Dividend yield	0.00%	0.00%	0.00%
Stock Option Plans | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	5 years 6 months	5 years 6 months	5 years 6 months
Stock Option Plans | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 6 months	6 years 3 months	6 years 3 months
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 months	6 months	6 months
Expected volatility	62.00%	53.00%
Expected volatility, minimum			45.00%
Expected volatility, maximum			53.00%
Risk-free interest rate	2.51%	1.61%
Risk-free interest rate, minimum			1.61%
Risk-free interest rate, maximum			2.14%
Dividend yield	0.00%	0.00%	0.00%

Share Capital - Schedule of Non

Share Capital - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 13,732	$ 10,206	$ 23,381	$ 18,726	$ 39,846
Cost of Revenues
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	595	263	1,021	428	1,261
Research, Development and Clinical Trials
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	1,813	1,286	3,001	2,192	4,709
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	3,255	1,893	5,217	3,329	7,393
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 8,069	$ 6,764	$ 14,142	$ 12,777	$ 26,483

Supplemental Information - Sche

Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 15,865	$ 15,366
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	8,152	8,289
Switzerland
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	2,852	2,513
Israel
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	2,473	2,236
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	871	1,054
Others
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 1,517	$ 1,274

Supplemental Information - Sc_2

Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 86,713	$ 61,514	$ 160,022	$ 113,639	$ 248,069
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	58,934	41,935	105,538	79,738	168,414
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	22,505	18,522	45,025	32,396	72,485
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	4,185	$ 1,057	7,555	$ 1,505	6,351
Greater China
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 1,089		$ 1,904		$ 819

Supplemental Information - Sc_3

Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 86,713	$ 61,514	$ 160,022	$ 113,639	$ 248,069
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 22,139	$ 17,651	$ 42,377	$ 31,009	$ 67,849