NOTE 6:-

STOCK CAPITAL

Common Stock:

Authorized

Issued and outstanding

Number of shares

June 30,

2018

December 31,

2017

June 30,

2018

December 31,

2017

(unaudited)

Stock of $0.0001 par value:

Common stock

125,000,000

45,498,414

43,812,601

Stock Incentive plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. On March 31, 2015, once the Company completed its Initial Public Offering (“IPO”), the 2007 Plan has been terminated and no further awards will be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan.

The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers and consultants of the Company and its Subsidiaries. As of June 30, 2018 (unaudited), a total of 8,080,717 (unaudited) shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”).

The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan commencing on January 1st of the year following the year in which the 2015 Plan becomes effective in an amount equal to five percent (5%) of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that our board of directors may provide that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than five percent (5%) of the shares of capital stock outstanding on the preceding December 31st.

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is ten million (10,000,000).

As of June 30, 2018 (unaudited), an aggregate of 3,611,297 shares of common stock are still available for future grant under the 2015 Plan.

Options granted to employees and members of the board of directors:

A summary of the activity in the share options granted to employees and members of the board of directors for the six months ended June 30, 2018 (unaudited) and related information follows:

						Weighted
						average
				Weighted		remaining
	Number			average		contractual		Aggregate
	of			exercise		term		intrinsic
	Options			price		in years		Value

Outstanding as of December 31, 2017		3,524,310			7.40		6.35		106,251
Granted		180,983			38.05
Exercised		(1,219,007	)		4.86
Forfeited or expired		(22,677	)		8.46
Outstanding as of June 30, 2018		2,463,609			10.90		6.68		91,022

Vested and expected to vest as of June 30, 2018		2,395,526			10.81		6.66		88,724

Exercisable as of June 30, 2018		1,564,382			7.12		5.93		63,722

The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period. The total intrinsic value of options exercised during the six months ended on June 30, 2018 (unaudited) was $56,071.

The weighted average grant date fair values of options granted to employees and executive directors during the six months ended June 30, 2018 (unaudited) was $20.83.

A summary of the activity in the RSUs granted to employees and members of the board of directors for the six months ended June 30, 2018 (unaudited) is as follows:

	No. of RSUs			Weighted average grant date fair value
Unvested as of December 31, 2017		2,087,992			24.33
Granted		531,729			48.15
Vested		(393,939	)		21.16
Forfeited		(125,989	)		6.62
Unvested as of June 30, 2018		2,099,793			30.71

e. Options and RSUs issued to non-employee consultants:

The Company has granted options and RSUs to purchase common shares to non-employee consultants as of June 30, 2018 (unaudited) as follows:

	Outstanding				Exercisable
	as of				as of
	June 30,		Exercise		June 30,		Exercisable
Issuance Date	2018		price		2018		Through

January 27, 2014		225		3.51		31	January 27, 2024
May 1, 2014		1,205		3.51		1,205	May 1, 2024
September 17, 2014		3,936		3.96		3,831	September 17, 2024
October 29, 2014		2,139		5.01		361	October 29, 2024
August 19, 2015		6,981		0.00		-	-
November 8, 2015		928		0.00		-	-
April 18, 2016		834		0.00		-	-
July 11, 2016		1,167		0.00		-	-
September 21, 2016		2,500		15.34		250	September 21, 2026
September 21, 2016		3,938		0.00		-	-
March 15, 2017		6,000		0.00		-	-
March 15, 2017		6,500		13.70		500	March 15, 2027
March 27, 2017		3,000		0.00		-	-
November 20, 2017		5,250		0.00		-	-
January 2, 2018		6,160		0.00		-	-

		50,763				6,178

The Company had accounted for its options and RSUs granted to non-employee consultants under the fair value method of ASC 505-50.

In connection with the grant of stock options and RSUs to non‑employee consultants, the Company recorded stock compensation expenses in the six months ended June 30, 2018 (unaudited) and 2017 (unaudited) in the amounts $835 and $294, respectively.

Employee Stock Purchase Plan (“ESPP”):

The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of June 30, 2018 (unaudited), a total of 1,739,280 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of June 30, 2018 (unaudited), 323,342 common stock shares had been purchased under the ESPP.

As of June 30, 2018 (unaudited), 1,415,938 common stock shares were available for future issuance under the ESPP.

In accordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost.

Stock-based compensation expense for employees and consultants:

The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and non-employees and ESPP in the condensed consolidated statement of operations for the six months ended on June 30, 2018 (unaudited) and 2017 (unaudited), as follows:

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017

Cost of revenues	$	968	$	517	$	1,892	$	1,010
Research and development		2,605		1,280		4,987		2,485
Selling and marketing		2,094		1,204		4,298		2,234
General and administrative		1,461		1,033		2,800		1,917

Total stock-based compensation expense	$	7,128	$	4,034	$	13,977	$	7,646

As of June 30, 2018 (unaudited), there was a total unrecognized compensation expense of $70,363 related to non‑vested equity‑based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from July 1, 2018 through May 31, 2022.