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SHAREHOLDERS' EQUITY | 12 Months Ended
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Dec. 31, 2019
Stockholders' Equity Note [Abstract] |
SHAREHOLDERS' EQUITY | NOTE 11:-SHAREHOLDERS' EQUITY a.Composition of shares capital of the Company:
| December 31, 2018 |  | December 31, 2019
| Authorized |  | Issued and outstanding |  | Authorized |  | Issued and outstanding
| Number of shares
| 500,000,000 |  | 49,269,626 |  | 500,000,000 |  | 51,525,919
b.Ordinary shares: The ordinary shares of the Company confer on the holders thereof voting rights, rights to receive dividends and rights to participate in distribution of assets upon liquidation. c.Share based payment: In April 2007, the Company's Board of Directors adopted an Employee Shares Incentive Plan (the "2007 Plan"). Under the 2007 Plan, options may be granted to employees, officers, non-employees consultants and directors of the Company and its Subsidiaries. The 2007 plan was terminated on October 15, 2013, although option awards outstanding as of that date will continue in full force in accordance with the terms under which they were granted. In October 2013, the Company's Board of Directors adopted a new Employee Shares Incentive Plan (the "2013 Plan"). The 2013 Plan provides for the grant of options, restricted shares, RSUs, share appreciation rights, cash-based awards, dividend equivalents and other share-based awards to directors, employees, officers, consultants of the Company and its subsidiaries. Under the Plans, as of December 31, 2019, an aggregate of 827,783 shares were still available for future grant. Each option granted under the Plan expires no later than ten years from the date of grant. The vesting period of the options is generally four years, unless the Board of Directors or the Board's Compensation Committee determines otherwise. Any option which is forfeited or cancelled before expiration becomes available for future grants. F - 44 WIX.COM LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data) NOTE 11:-SHAREHOLDERS' EQUITY (Cont.) The total share-based compensation expense related to all of the Company's equity-based awards, which include options, RSUs and employee stock purchase rights issued pursuant to the Company's Employee Share Purchase Plan (“ESPP”) and recognized for the years ended December 31, 2017, 2018 and 2019 was comprised as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Cost of revenues |  | $ | 2,930 |  |  | $ | 4,418 |  |  | $ | 5,854 |
Research and development |  |  | 26,227 |  |  |  | 39,417 |  |  |  | 56,161 |
Sales and marketing |  |  | 6,585 |  |  |  | 9,770 |  |  |  | 18,458 |
General and administrative |  |  | 11,958 |  |  |  | 18,725 |  |  |  | 28,864 |
Total share-based compensation expense |  | $ | 47,700 |  |  | $ | 72,330 |  |  | $ | 109,337 |
Total unrecognized compensation cost amounted to $256,390 as of December 31, 2019, and is expected to be recognized over a weighted average period of approximately 2.82 years. d.Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2019 is as follows:
|  | Number of options |  |  | Weighted average exercise price |  |  | Weighted Average remaining contractual term (in years) |  |  | Aggregate intrinsic value |
Balance at December 31, 2018 |  |  | 7,663,313 |  |  | $ | 25.81 |  |  |  | 5.91 |  |  | $ | 496,978 |
Granted |  |  | 1,068,589 |  |  | $ | 105.46 |  |  |  |  |  |  |  |  |
Exercised |  |  | (1,225,170) |  |  | $ | 22.18 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (68,613) |  |  | $ | 60.35 |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 |  |  | 7,438,119 |  |  | $ | 37.53 |  |  |  | 5.49 |  |  | $ | 631,994 |
Exercisable at December 31, 2019 |  |  | 5,295,987 |  |  | $ | 20.22 |  |  |  | 4.31 |  |  | $ | 541,129 |
Vested and expected to vest at December 31, 2019 |  |  | 7,322,566 |  |  | $ | 36.83 |  |  |  | 5.44 |  |  | $ | 627,224 |
F - 45 WIX.COM LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data) NOTE 11:-SHAREHOLDERS' EQUITY (Cont.) The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; For restricted stock units the fair value is based on the closing market value of the underlying shares at the date of grant. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2017, 2018 and 2019:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Expected volatility |  |  | 45.46%-48.04 |  |  |  | 45.19%-46.64% |  |  |  | 42.60%-45.24% |
Expected dividends |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
Expected term (in years) |  |  | 5.03 -7.07 |  |  |  | 5.17 -7.53 |  |  |  | 4.94 -4.99 |
Risk free rate |  |  | 1.82%-2.27% |  |  |  | 2.59%-3.03% |  |  |  | 1.51%-2.47% |
The following table set forth the parameters used in computation of the employee stock purchase plan for the years ended December 31, 2017, 2018 and 2019:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Expected volatility |  |  | 33.6%-43.4% |  |  |  | 39.9%-41.2% |  |  |  | 31.88%-54.49% |
Expected dividends |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
Expected term (in years) |  |  | 0.5 |  |  |  | 0.5 |  |  |  | 0.5 |
Risk free rate |  |  | 0.47%-0.79% |  |  |  | 1.85%-2.28% |  |  |  | 1.89%-2.52% |
F - 46 WIX.COM LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data) NOTE 11:-SHAREHOLDERS' EQUITY (Cont.) A summary of options data for the years ended December 31, 2017, 2018 and 2019, is as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Weighted-average grant date fair value of options granted |  | $ | 27.50 |  |  | $ | 34.93 |  |  | $ | 53.67 |
Total intrinsic value of the options exercised |  | $ | 75,763 |  |  | $ | 137,448 |  |  | $ | 128,003 |
Total fair value of shares vested |  | $ | 20,780 |  |  | $ | 27,629 |  |  | $ | 33,316 |
The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the deemed fair value of the Company's ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2019:
Exercise price (range) |  |  | Options outstanding as of December 31, 2019 |  |  | Weighted average remaining contractual term |  |  | Options exercisable as of December 31, 2019 |  |  | Weighted average remaining contractual term |
|  |  |  |  |  | (years) |  |  |  |  |  | (years) |
| 0.001-0.17 |  |  |  | 1,064,706 |  |  |  | 3.69 |  |  |  | 1,052,071 |  |  |  | 3.63 |
| 0.18-0.5 |  |  |  | 1,253,657 |  |  |  | 0.99 |  |  |  | 1,253,657 |  |  |  | 0.99 |
| 0.51-18.08 |  |  |  | 636,191 |  |  |  | 3.21 |  |  |  | 635,878 |  |  |  | 3.21 |
| 18.09-20.94 |  |  |  | 462,216 |  |  |  | 4.92 |  |  |  | 459,216 |  |  |  | 4.92 |
| 20.95-26.84 |  |  |  | 685,352 |  |  |  | 5.89 |  |  |  | 622,121 |  |  |  | 5.86 |
| 26.85-52.2 |  |  |  | 897,441 |  |  |  | 7.04 |  |  |  | 563,317 |  |  |  | 7.01 |
| 52.21-61.75 |  |  |  | 955,157 |  |  |  | 8.11 |  |  |  | 396,739 |  |  |  | 8.11 |
| 61.76-101.67 |  |  |  | 494,974 |  |  |  | 8.46 |  |  |  | 190,942 |  |  |  | 8.20 |
| 101.68-102.67 |  |  |  | 739,341 |  |  |  | 9.12 |  |  |  | 86,948 |  |  |  | 9.12 |
| 102.68-143.79 |  |  |  | 249,084 |  |  |  | 9.29 |  |  |  | 35,098 |  |  |  | 8.94 |
|  |  |  |  | 7,438,119 |  |  |  | 5.49 |  |  |  | 5,295,987 |  |  |  | 4.31 |
F - 47 WIX.COM LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data) NOTE 11:-SHAREHOLDERS' EQUITY (Cont.) e.Options granted to non-employees consultants: The following table summarizes information about the Company's outstanding and exercisable options to purchase ordinary shares granted to non-employees consultants as of December 31, 2019:
Grant Date |  | Options outstanding as of December 31, 2019 |  |  | Exercise price |  |  | Exercisable as of December 31, 2019 |  | Exercisable through
|  |  |  |  | $ |  |  |  |  |
January 25, 2011 |  |  | 6,000 |  |  |  | 0.67 |  |  |  | 6,000 |  | January 25, 2021
January 9, 2013 |  |  | 3,400 |  |  |  | 2.34 |  |  |  | 3,400 |  | January 9, 2023
|  |  | 9,400 |  |  |  |  |  |  |  | 9,400 |  |
No options were granted to non-employees during the years ended December 31, 2019, 2018 and 2017. f.A summary of RSU activity for the year ended December 31, 2019, is as follows:
|  | Number of shares |  |  | Weighted average grant date fair value per share |
|  |  |  |  | $ |
Unvested as of December 31, 2018 |  |  | 2,090,512 |  |  | $ | 66.53 |
Granted |  |  | 1,182,364 |  |  | $ | 125.47 |
Vested |  |  | (952,715) |  |  | $ | 65.50 |
Forfeited |  |  | (195,731) |  |  | $ | 80.88 |
Unvested as of December 31, 2019 |  |  | 2,124,430 |  |  | $ | 98.50 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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