NovoCure Limited (NVCR) 10-Q/A 2 Oct 20 2020 Q1 Quarterly report (amended) Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2020	Apr. 23, 2020
Cover [Abstract]
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-37565
Entity Registrant Name	NovoCure Limited
Entity Incorporation, State or Country Code	Y9
Entity Tax Identification Number	98-1057807
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, Country	JE
Entity Address, Postal Zip Code	JE2 4UF
City Area Code	44 (0) 15
Local Phone Number	3475 6700
Title of 12(b) Security	Ordinary Shares, no par value
Trading Symbol	NVCR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		100,440,295
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001645113
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 181,919	$ 177,321
Short-term investments	149,349	148,769
Restricted cash	786	2,095
Trade receivables	65,139	58,859
Receivables and prepaid expenses	42,483	29,202
Inventories	22,502	23,701
Total current assets	462,178	439,947
LONG-TERM ASSETS:
Property and equipment, net	9,778	9,342
Field equipment, net	8,467	7,684
Right-of-use assets, net	17,201	17,571
Other long-term assets	4,824	4,904
Total long-term assets	40,270	39,501
TOTAL ASSETS	502,448	479,448
CURRENT LIABILITIES:
Trade payables	40,408	36,925
Other payables, lease liabilities and accrued expenses	43,795	49,386
Total current liabilities	84,203	86,311
LONG-TERM LIABILITIES:
Long-term loan, net of discount and issuance costs	149,465	149,424
Deferred revenue	8,772	7,807
Long-term leases	13,274	14,140
Employee benefits	4,519	3,754
Other long-term liabilities	267	222
Total long-term liabilities	176,297	175,347
TOTAL LIABILITIES	260,500	261,658
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 100,362,973 shares and 99,528,435 shares at March 31, 2020 (unaudited) and December 31, 2019, respectively	0	0
Additional paid-in capital	892,510	871,442
Accumulated other comprehensive income (loss)	(3,629)	(2,767)
Retained earnings (accumulated deficit)	(646,933)	(650,885)
TOTAL SHAREHOLDERS' EQUITY	241,948	217,790
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 502,448	$ 479,448

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, shares issued	100,362,973	99,528,435
Common stock, shares outstanding	100,362,973	99,528,435

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Statement [Abstract]
Net revenues	$ 101,828	$ 73,309	$ 351,318
Cost of revenues	24,496	19,814	88,606
Gross profit	77,332	53,495	262,712
Operating costs and expenses:
Research, development and clinical trials	25,271	17,042	79,003
Sales and marketing	28,834	22,333	96,675
General and administrative	26,608	20,238	87,948
Total operating costs and expenses	80,713	59,613	263,626
Operating income (loss)	(3,381)	(6,118)	(914)
Financial expenses (income), net	2,432	2,371	7,910
Income (loss) before income tax	(5,813)	(8,489)	(8,824)
Income tax	(9,765)	3,661	(1,594)
Net income (loss)	$ 3,952	$ (12,150)	$ (7,230)
Basic net income (loss) per ordinary share (in usd per share)	$ 0.04	$ (0.13)	$ (0.07)
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares)	99,877,567	94,811,282	97,237,549
Diluted net income (loss) per ordinary share (in usd per share)	$ 0.04	$ (0.13)	$ (0.07)
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares)	108,100,623	94,811,282	97,237,549

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,952	$ (12,150)	$ (7,230)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(200)	(261)	(304)
Pension benefit plan	(662)	(81)	(1,063)
Total comprehensive income (loss)	$ 3,090	$ (12,492)	$ (8,597)

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)
Beginning balance at Dec. 31, 2018	$ 112,259		$ 757,314	$ (1,400)	$ (643,655)
Beginning balance (in shares) at Dec. 31, 2018		93,254,185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation to employees	9,649		9,649
Exercise of options 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)
Ending balance at Mar. 31, 2019	126,394		783,941	(1,742)	(655,805)
Ending balance (in shares) at Mar. 31, 2019		95,692,797
Beginning balance at Dec. 31, 2018	112,259		757,314	(1,400)	(643,655)
Beginning balance (in shares) at Dec. 31, 2018		93,254,185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,230)
Ending balance at Dec. 31, 2019	217,790		871,442	(2,767)	(650,885)
Ending balance (in shares) at Dec. 31, 2019		99,528,435
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation to employees	16,557		16,557
Exercise of options and vested RSUs	4,511		4,511
Exercise of options and warrants and vested RSUs (in shares)		834,538
Other comprehensive income (loss), net of tax benefit	(862)			(862)
Net income (loss)	3,952				3,952
Ending balance at Mar. 31, 2020	$ 241,948		$ 892,510	$ (3,629)	$ (646,933)
Ending balance (in shares) at Mar. 31, 2020		100,362,973

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Other comprehensive income (loss), tax benefit	$ 0	$ 11

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 3,952	$ (12,150)	$ (7,230)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	1,888	1,929	8,460
Asset write-downs and impairment of field equipment	6	75	398
Share-based compensation	16,557	9,649	52,416
Foreign currency remeasurement loss (gain)	(7)	0	(917)
Decrease (increase) in accounts receivables	(19,718)	(2,036)	(36,496)
Amortization of discount (premium)	(539)	(578)	(2,176)
Decrease (increase) in inventories	1,147	(1,583)	(1,159)
Decrease (increase) in other long-term assets	1,235	(86)	3,446
Increase (decrease) in accounts payables and accrued expenses	(2,339)	2,246	16,883
Increase (decrease) in other long-term liabilities	(225)	(1,781)	(7,006)
Net cash provided by (used in) operating activities	1,957	(4,315)	26,620
Cash flows from investing activities:
Purchase of property, equipment and field equipment	(3,112)	(2,325)	(10,485)
Proceeds from maturity of short-term investments	0	105,661	420,661
Purchase of short-term investments	0	(104,325)	(461,843)
Net cash provided by (used in) investing activities	(3,112)	(989)	(51,667)
Cash flows from financing activities:
Proceeds from issuance of shares, net	0	0	2,467
Repayment of long-term loan	(8)	(8)	(31)
Exercise of options and warrants	4,511	16,978	59,245
Net cash provided by (used in) financing activities	4,503	16,970	61,681
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(59)	(261)	26
Increase (decrease) in cash, cash equivalents and restricted cash	3,289	11,405	36,660
Cash, cash equivalents and restricted cash at the beginning of the period	179,416	142,756	142,756
Cash, cash equivalents and restricted cash at the end of the period	182,705	154,161	179,416
Cash paid during the period for:
Income taxes	2,209	3,033	11,241
Interest	3,415	3,379	13,699
Non-cash activities in accordance with of ASC-842:
Right-of-use assets obtained in exchange for lease obligations	$ 783	$ 15,733	$ 22,943

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	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 Optune Lua, 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 (“PMA") pathway and regulatory approvals and clearances in certain other countries for Optune to treat adult patients with glioblastoma multiforme (“GBM”). The Company also has received FDA approval under the Humanitarian Device Exemption pathway to market Optune Lua for unresectable, locally advanced or metastatic malignant pleural mesothelioma (“MPM”) in combination with standard chemotherapies. Financial statement preparation . The accompanying unaudited 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, 2019 (the “2019 10-K”) filed with the Securities and Exchange Commission on February 27, 2020. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2019 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). 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 Company adopted the standard effective as of January 1, 2020, and the adoption of this standard did not have an impact on the Company's consolidated financial statements. In August 2018, FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of income as the costs related to the hosting fees. The Company adopted the standard effective as of January 1, 2020, and the adoption of this standard did not have an impact on the Company's consolidated financial statements.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	3 Months Ended
	Mar. 31, 2020
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash, Cash Equivalents and Short-Term investments	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. March 31, December 31, Unaudited Audited Cash $ 8,192 $ 18,377 Money market funds 173,727 158,944 Total cash and cash equivalents $ 181,919 $ 177,321 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. March 31, December 31, Unaudited Audited Short-term investments $ 149,349 $ 148,769 Quoted market prices were applied to determine the fair value of cash equivalents and short-term investments, therefore they are categorized as Level 1 in accordance with Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” The estimated fair value of the Company’s short-term investments as of March 31, 2020 and December 31, 2019 was $149,951 and $148,738, respectively.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2020 and December 31, 2019, the Company’s inventories were composed of: March 31, December 31, Unaudited Audited Raw materials $ 3,889 $ 3,912 Work in progress 7,498 6,482 Finished products 11,115 13,308 Total $ 22,502 $ 23,701

Commitments and Contingent Liab

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	COMMITMENTS AND CONTINGENT LIABILITIES Operating Leases. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2030. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2023. Pledged deposits and bank guarantees. As of March 31, 2020 and December 31, 2019, the Company pledged bank deposits of $1,612 and $1,557, 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 $1,387 and $1,390, respectively .

Share Option Plan and ESPP

Share Option Plan and ESPP	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract]
Share Option Plan and ESPP	SHARE OPTION PLAN AND ESPPIn 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 share units (“RSUs”), performance-based share units (“PSUs”), long-term cash awards and other share-based awards. Options granted under the 2015 Plan generally have a four three three six A summary of the status of the Company’s option plans as of March 31, 2020 and changes during the period then ended is presented below: Three months ended March 31, 2020 Unaudited Number Weighted Outstanding at beginning of year 10,350,810 $ 20.40 Granted 671,530 69.37 Exercised (291,088) 15.52 Forfeited and canceled (6,025) 41.39 Outstanding as of March 31, 2020 10,725,227 $ 23.58 Exercisable options 4,572,967 $ 16.17 For the three months, ended March 31, 2020, options to purchase 291,088 ordinary shares were exercised, resulting in the issuance of 291,088 ordinary shares. A summary of the status of the Company’s RSUs and PSUs as of March 31, 2020 and changes during the period then ended is presented below. Three months ended March 31, 2020 Unaudited Number Weighted Unvested at beginning of year 1,474,395 $ 30.26 Granted (1) 3,747,545 54.07 Vested (543,450) 22.10 Forfeited and cancelled (3,194) 52.84 Unvested as of March 31, 2020 4,675,296 50.28 (1) Represents RSUs and PSUs granted on March 3, 2020 as follows: (a) 527,041 RSUs that are expensed based on their grant date fair value of $69.37 per RSU over the service period of three years; (b) 408,539 PSUs that have a mix of service and clinical milestone vesting conditions, cliff-vest in pre-determined increments, and that have been deemed probable to vest and are therefore expensed beginning in the first quarter of 2020 based on their grant date fair value of $69.37 per PSU; (c) 108,113 PSUs that have a mix of service and clinical milestone vesting conditions, cliff-vest in pre-determined increments, and that will begin to be expensed at $69.37 per PSU when it becomes probable that the milestones will be achieved, and (d) 2,703,852 PSUs that have a mix of service, market and other milestone performance vesting conditions (including but not limited to new FDA approved indications), cliff-vest in pre-determined increments, and that will begin to be expensed at $48.16 per PSU when it becomes probable that the milestones will be achieved. The PSUs vest no earlier than three years from the date of grant and no later than six years from the date of grant. The grant date fair value of PSUs with market vesting conditions were obtained by using Monte Carlo simulations. All RSUs and PSUs are expensed in accordance with ASC 718. 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 are construed in a manner consistent with the requirements of such section. As of March 31, 2020, 4,050,089 ordinary shares were available to be purchased by eligible employees under the ESPP and 414,559 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. We assessed fair value using the following underlying assumptions: Three months ended March 31, Year ended December 31, 2020 2019 Unaudited Audited Stock Option Plans Expected term (years) 6.25 6.23 5.50-6.5 Expected volatility 54% 55% 55%-61% Risk-free interest rate 0.86% 2.40% 1.73%-2.40% Dividend yield 0.00 % 0.00 % 0.00 % ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 47% 62% 44%-62% Risk-free interest rate 1.57% 2.51% 2.10%-2.51% 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, 2020 and 2019 and the year ended December 31, 2019 was: Three months ended March 31, Year ended December 31, 2020 2019 Unaudited Audited Cost of revenues $ 590 $ 426 $ 2,231 Research, development and clinical trials 3,394 1,188 7,570 Sales and marketing 3,616 1,962 11,897 General and administrative 8,957 6,073 30,718 Total share-based compensation expense $ 16,557 $ 9,649 $ 52,416

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE Basic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus potential dilutive shares considered outstanding during the period, in accordance with ASC 260-10, as determined under the treasury stock method. Basic and diluted net loss per ordinary share was the same for each period presented, except for the three months ended March 31, 2020, as the inclusion of all potential dilutive shares (deriving from options, RSUs and the ESPP) outstanding would be anti-dilutive. The calculation of diluted earnings per share includes the weighted average of potentially dilutive securities, which consists of ordinary shares underlying outstanding share options, RSUs, performance share units and the ESPP. The effect of these dilutive securities under the treasury stock method was approximately 8,223,056 shares for the three months ended March 31, 2020. The Company excluded 352,291 share options under the treasury stock method from the computation of dilutive net income per share for the three months ended March 31, 2020 because including them would had have an anti-dilutive effect.

Supplemental Information

Supplemental Information	3 Months Ended
	Mar. 31, 2020
Geographic Areas, Long-Lived Assets [Abstract]
Supplemental Information	SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: March 31, December 31, Unaudited Audited United States $ 9,562 $ 8,896 Switzerland 2,472 3,067 Israel 3,366 2,753 Germany 711 729 Others 2,134 1,581 Total long-term assets $ 18,245 $ 17,026 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, 2020 2019 Unaudited Audited United States $ 69,259 $ 46,604 $ 232,805 EMEA: Germany 21,802 20,238 86,564 Other EMEA 2,674 2,282 8,782 Japan 6,451 3,370 17,912 Greater China (1) 1,642 815 5,255 Total net revenues $ 101,828 $ 73,309 $ 351,318 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement (the "Zai 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”) and also includes $90 recognized during the three months ended March 31, 2020 from reaching a clinical trial milestone during the period. The full amount of the milestone payable is $2,000 that will be recognized over the remainder of the Zai performance period ending in September 2024. For additional information, see Note 12 to the Consolidated Financial Statements in our 2019 10-K.

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Tax	INCOME TAX In accordance with the changes to the U.S. tax code enacted in response to the economic impacts of COVID-19 signed into legislation on March 27, 2020 the Company recorded a net tax benefit of $11,269 in the first quarter of 2020. The benefit results from net operating loss carry-backs in the U.S.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). 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 Company adopted the standard effective as of January 1, 2020, and the adoption of this standard did not have an impact on the Company's consolidated financial statements. In August 2018, FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of income as the costs related to the hosting fees. The Company adopted the standard effective as of January 1, 2020, and the adoption of this standard did not have an impact on the Company's consolidated financial statements.

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2020
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. March 31, December 31, Unaudited Audited Cash $ 8,192 $ 18,377 Money market funds 173,727 158,944 Total cash and cash equivalents $ 181,919 $ 177,321
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. March 31, December 31, Unaudited Audited Short-term investments $ 149,349 $ 148,769

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, the Company’s inventories were composed of: March 31, December 31, Unaudited Audited Raw materials $ 3,889 $ 3,912 Work in progress 7,498 6,482 Finished products 11,115 13,308 Total $ 22,502 $ 23,701

Share Option Plan and ESPP (Tab

Share Option Plan and ESPP (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract]
Schedule of Stock Option Plans	A summary of the status of the Company’s option plans as of March 31, 2020 and changes during the period then ended is presented below: Three months ended March 31, 2020 Unaudited Number Weighted Outstanding at beginning of year 10,350,810 $ 20.40 Granted 671,530 69.37 Exercised (291,088) 15.52 Forfeited and canceled (6,025) 41.39 Outstanding as of March 31, 2020 10,725,227 $ 23.58 Exercisable options 4,572,967 $ 16.17
Schedule of RSUs and PSUs	A summary of the status of the Company’s RSUs and PSUs as of March 31, 2020 and changes during the period then ended is presented below. Three months ended March 31, 2020 Unaudited Number Weighted Unvested at beginning of year 1,474,395 $ 30.26 Granted (1) 3,747,545 54.07 Vested (543,450) 22.10 Forfeited and cancelled (3,194) 52.84 Unvested as of March 31, 2020 4,675,296 50.28
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. We assessed fair value using the following underlying assumptions: Three months ended March 31, Year ended December 31, 2020 2019 Unaudited Audited Stock Option Plans Expected term (years) 6.25 6.23 5.50-6.5 Expected volatility 54% 55% 55%-61% Risk-free interest rate 0.86% 2.40% 1.73%-2.40% Dividend yield 0.00 % 0.00 % 0.00 % ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 47% 62% 44%-62% Risk-free interest rate 1.57% 2.51% 2.10%-2.51% 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, 2020 and 2019 and the year ended December 31, 2019 was: Three months ended March 31, Year ended December 31, 2020 2019 Unaudited Audited Cost of revenues $ 590 $ 426 $ 2,231 Research, development and clinical trials 3,394 1,188 7,570 Sales and marketing 3,616 1,962 11,897 General and administrative 8,957 6,073 30,718 Total share-based compensation expense $ 16,557 $ 9,649 $ 52,416

Supplemental Information (Table

Supplemental Information (Tables)	3 Months Ended
	Mar. 31, 2020
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, Unaudited Audited United States $ 9,562 $ 8,896 Switzerland 2,472 3,067 Israel 3,366 2,753 Germany 711 729 Others 2,134 1,581 Total long-term assets $ 18,245 $ 17,026
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, 2020 2019 Unaudited Audited United States $ 69,259 $ 46,604 $ 232,805 EMEA: Germany 21,802 20,238 86,564 Other EMEA 2,674 2,282 8,782 Japan 6,451 3,370 17,912 Greater China (1) 1,642 815 5,255 Total net revenues $ 101,828 $ 73,309 $ 351,318 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement (the "Zai 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”) and also includes $90 recognized during the three months ended March 31, 2020 from reaching a clinical trial milestone during the period. The full amount of the milestone payable is $2,000 that will be recognized over the remainder of the Zai performance period ending in September 2024. For additional information, see Note 12 to the Consolidated Financial Statements in our 2019 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	Mar. 31, 2020	Dec. 31, 2019
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash	$ 8,192	$ 18,377
Money market funds	173,727	158,944
Total cash and cash equivalents	$ 181,919	$ 177,321

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	Mar. 31, 2020	Dec. 31, 2019
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Short-term investments	$ 149,349	$ 148,769

Cash, Cash Equivalents and Sh_5

Cash, Cash Equivalents and Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Estimated fair value of short-term investments	$ 149,951	$ 148,738

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,889	$ 3,912
Work in progress	7,498	6,482
Finished products	11,115	13,308
Total	$ 22,502	$ 23,701

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Pledged bank deposits	$ 1,612	$ 1,557
Operating lease and other contractual commitments	$ 1,387	$ 1,390

Share Option Plan and ESPP - Ad

Share Option Plan and ESPP - Additional Information (Details) - shares	Mar. 03, 2020	Mar. 31, 2020
Share Capital [Line Items]
Options exercised (in shares)		291,088
Ordinary shares issued upon option exercise (in shares)		291,088
ESPP
Share Capital [Line Items]
Ordinary shares available for grants (in shares)		4,050,089
Shares issued under plan (in shares)		414,559
RSUs
Share Capital [Line Items]
Stock awards granted, vesting period (years)	3 years
PSUs | Minimum
Share Capital [Line Items]
Stock awards granted, vesting period (years)		3 years
PSUs | Maximum
Share Capital [Line Items]
Stock awards granted, vesting period (years)		6 years
2015 Plan
Share Capital [Line Items]
Ordinary shares available for grants (in shares)		11,430,386
2015 Plan | Option
Share Capital [Line Items]
Stock awards granted, vesting period (years)		4 years
Stock awards granted, expiration period (years)		10 years
2015 Plan | RSUs
Share Capital [Line Items]
Stock awards granted, vesting period (years)		3 years
2015 Plan | PSUs | Minimum
Share Capital [Line Items]
Stock awards granted, vesting period (years)		3 years
2015 Plan | PSUs | Maximum
Share Capital [Line Items]
Stock awards granted, vesting period (years)		6 years

Share Option Plan and ESPP - Sc

Share Option Plan and ESPP - Schedule of Stock Option Plan (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Number of options
Number of options, beginning outstanding (in shares) | shares	10,350,810
Number of options, granted (in shares) | shares	671,530
Number of options, exercised (in shares) | shares	(291,088)
Number of options, forfeited and canceled (in shares) | shares	(6,025)
Number of options, ending outstanding (in shares) | shares	10,725,227
Number of options, exercisable options (in shares) | shares	4,572,967
Weighted average exercise price
Weighted average exercise price, beginning outstanding (in usd per share) | $ / shares	$ 20.40
Weighted average exercise price, granted (in usd per share) | $ / shares	69.37
Weighted average exercise price, exercised (in usd per share) | $ / shares	15.52
Weighted average exercise price, forfeited and canceled (in usd per share) | $ / shares	41.39
Weighted average exercise price, ending outstanding (in usd per share) | $ / shares	23.58
Weighted average exercise price, exercisable options (in usd per share) | $ / shares	$ 16.17

Share Option Plan and ESPP - _2

Share Option Plan and ESPP - Schedule of RSUs and PSUs (Details) - $ / shares	Mar. 03, 2020	Mar. 31, 2020
Number of RSU/PSUs
Number of RSUs, beginning unvested (in shares)		1,474,395
Number of RSUs, granted (in shares)		3,747,545
Number of RSUs, vested (in shares)		(543,450)
Number of RSUs, forfeited and cancelled (in shares)		(3,194)
Number of RSUs, ending unvested (in shares)		4,675,296
Weighted average grant date fair value
Weighted average grant date fair value price, beginning unvested (in usd per share)		$ 30.26
Weighted average grant date fair value price, granted (in usd per share)		54.07
Weighted average grant date fair value price, vested (in usd per share)		22.10
Weighted average grant date fair value price, forfeited and cancelled (in usd per share)		52.84
Weighted average grant date fair value price, ending unvested (in usd per share)		$ 50.28
RSUs
Number of RSU/PSUs
Number of RSUs, granted (in shares)	527,041
Weighted average grant date fair value
Weighted average grant date fair value price, granted (in usd per share)	$ 69.37
Stock awards granted, vesting period (years)	3 years
PSUs | Minimum
Weighted average grant date fair value
Stock awards granted, vesting period (years)		3 years
PSUs | Maximum
Weighted average grant date fair value
Stock awards granted, vesting period (years)		6 years
PSUs | Share-based Compensation Award, Tranche One
Number of RSU/PSUs
Number of RSUs, granted (in shares)	408,539
Weighted average grant date fair value
Weighted average grant date fair value price, granted (in usd per share)	$ 69.37
PSUs | Share-based Compensation Award, Tranche Two
Number of RSU/PSUs
Number of RSUs, granted (in shares)	108,113
Weighted average grant date fair value
Weighted average grant date fair value price, granted (in usd per share)	$ 69.37
PSUs | Share-based Compensation Award, Tranche Three
Number of RSU/PSUs
Number of RSUs, granted (in shares)	2,703,852
Weighted average grant date fair value
Weighted average grant date fair value price, granted (in usd per share)	$ 48.16

Share Option Plan and ESPP - _3

Share Option Plan and ESPP - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 months	6 months	6 months
Expected volatility	4700.00%	6200.00%
Expected volatility, minimum			44.00%
Expected volatility, maximum			62.00%
Risk-free interest rate	157.00%	251.00%
Risk-free interest rate, minimum			2.10%
Risk-free interest rate, maximum			2.51%
Dividend yield	0.00%	0.00%	0.00%
Stock Option Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years 3 months	6 years 2 months 23 days
Expected volatility	5400.00%	5500.00%
Expected volatility, minimum			55.00%
Expected volatility, maximum			61.00%
Risk-free interest rate	86.00%	240.00%
Risk-free interest rate, minimum			1.73%
Risk-free interest rate, maximum			2.40%
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
Stock Option Plans | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)			6 years 6 months

Share Option Plan and ESPP - _4

Share Option Plan and ESPP - 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, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 16,557	$ 9,649	$ 52,416
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	590	426	2,231
Research, development and clinical trials
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	3,394	1,188	7,570
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	3,616	1,962	11,897
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 8,957	$ 6,073	$ 30,718

Earnings Per Share (Details) -

Earnings Per Share (Details) - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive shares (in shares)	8,223,056
Stock Option Plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive share options (in shares)	352,291

Supplemental Information - Sche

Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	$ 18,245	$ 17,026
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	9,562	8,896
Switzerland
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	2,472	3,067
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	3,366	2,753
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	711	729
Others
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-term assets	$ 2,134	$ 1,581

Supplemental Information - Sc_2

Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 101,828	$ 73,309	$ 351,318
Zai License and Collaboration Agreement
Revenues from External Customers and Long-Lived Assets [Line Items]
Regulatory and commercial milestone payable	2,000
Zai License and Collaboration Agreement | License | Accounting Standards Update 2014-09
Revenues from External Customers and Long-Lived Assets [Line Items]
Liability, revenue recognized	90
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	69,259	46,604	232,805
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	21,802	20,238	86,564
Other EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	2,674	2,282	8,782
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	6,451	3,370	17,912
Greater China
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 1,642	$ 815	$ 5,255

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Unusual or Infrequent Item, or Both [Line Items]
Net tax benefit	$ (9,765)	$ 3,661	$ (1,594)
Natural Disasters and Other Casualty Events
Unusual or Infrequent Item, or Both [Line Items]
Net tax benefit	$ (11,269)