SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

NOTE 12:-SHAREHOLDERS' EQUITY

a.Company's shares:

As of December 31, 2020, the Company's authorized share capital consists of NIS 20,000,000 divided into 200,000,000 Ordinary Shares, par value NIS 0.1 per share. Ordinary Shares confer on their holders the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company, and the right to receive dividends if declared.

b.Stock option plan:

A summary of the Company's stock option activity, pertaining to its option plans for employees and related information is as follows:

	Year ended December 31,
	2020					2019					2018
	Number of shares upon exercise			Weighted average exercise price		Number of shares upon exercise			Weighted average exercise price		Number of shares upon exercise			Weighted average exercise price

Outstanding at beginning of year		1,453,741		$	7.59		1,736,143		$	7.26		2,189,297		$	7.63
Granted		-		$	-		-		$	-		62,200		$	5.91
Forfeited		(28,657	)	$	17.47		(59,107	)	$	10.05		(414,617	)	$	9.79
Exercised		(290,828	)	$	6.25		(223,295	)	$	4.36		(100,737	)	$	4.07

Outstanding at end of year		1,134,256		$	7.68		1,453,741		$	7.59		1,736,143		$	7.26

Exercisable at end of year		1,065,498		$	7.83		1,240,005		$	8.01		1,281,665		$	8.02

Vested and expected to vest		1,132,007		$	7.68		1,442,990		$	7.61		1,464,802		$	7.65

The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal years 2020, 2019 and 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders exercised their options on December 31, 2020, 2019 and 2018, respectively. This amount may change based on the fair market value of the Company's stock. The total intrinsic value of options outstanding at December 31, 2020, 2019 and 2018, were $ 4,578, $ 3,510 and $ 1,518, respectively.

F - 37

ALLOT LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands, except share and per share data

NOTE 12:-SHAREHOLDERS' EQUITY (Cont.)

The total intrinsic value of exercisable options at December 31, 2020, 2019 and 2018, were approximately $ 4,226, $ 2,791 and $ 1,058, respectively. The total intrinsic value of options vested and expected to vest at December 31, 2020, 2019 and 2018, were approximately $ 4,568, $ 3,399 and $ 1,246, respectively.

The total intrinsic value (the difference between the Company's closing stock price on the exercise date and the exercise price) of options exercised during the years ended December 31, 2020, 2019 and 2018 were approximately $ 1,437, $ 769 and $ 201, respectively. The weighted-average grant-date fair value of the options granted during the year ended on December 31, 2018 was $ 2.89. No options were granted during 2020 and 2019. The number of options vested during the year ended December 31, 2020 was 116,321. The weighted-average remaining contractual life of the outstanding options as of December 31, 2020 is 2.67 years. The weighted-average remaining contractual life of exercisable options as of December 31, 2020 is 2.58 years.

The options outstanding as of December 31, 2020, have been classified by exercise price, as follows:

Exercise price		Shares upon exercise of options outstanding as of December 31, 2020		Weighted average remaining contractual life		Shares upon exercise of options exercisable as of December 31, 2020
				Years

$	23.31-27.58		49,500		1.66		49,500
$	15.2-17.07		46,936		1.02		46,936
$	10.0 -14.68		140,150		2.74		140,150
$	5.01-9.7		360,605		2.27		319,253
$	0.1-4.95		537,065		3.16		509,659

			1,134,256				1,065,498

The following provides a summary of the restricted stock unit activity for the Company for the two years ended December 31, 2020:

	Year ended December 31,
	2020					2019
	Number of shares upon exercise			Weighted average share price		Number of shares upon exercise			Weighted average share price

Outstanding at beginning of year		1,652,060		$	6.53		1,252,031		$	5.45
Granted		869,250		$	10.96		1,001,000		$	7.53
Vested		(570,000	)	$	10.69		(401,904	)	$	7.53
Forfeited		(188,293	)	$	10.01		(199,067	)	$	7.61

Unvested at end of year		1,763,017		$	8.63		1,652,060		$	6.53

As of December 31, 2020, $ 120 and $ 13,091 unrecognized compensation cost related to stock options and RSUs respectively is expected to be recognized over a weighted average vesting period of 2.33 years.

F - 38

ALLOT LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands, except share and per share data

NOTE 12:-SHAREHOLDERS' EQUITY (Cont.)

Under the terms of the above option plans, options may be granted to employees, officers, directors and various service providers of the Company and its subsidiaries. The options vest over a four-year period, subject to the continued employment of the employee. The options generally expire no later than ten years from the date of the grant. The exercise price of the options at the date of grant under the plans may not be less than the nominal value of the shares into which such options are exercised, any options, which are forfeited or cancelled before expiration, become available for future grants. As of December 31, 2020, 72,373 Ordinary shares are available for future issuance under the option plans.

In addition to granting stock options, the Company granted 869,250 and 1,001,000 RSUs in 2020 and 2019, respectively under the 2016 option plan. RSUs vest over a period of between three to four years, subject to the continued employment of the employee. RSUs that are cancelled or forfeited become available for future grants.