SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

NOTE 14:-SHAREHOLDERS' EQUITY

The ordinary shares of the Company are traded on the Nasdaq Global Select Market, under the symbol "CRNT".

a.General:

The ordinary shares entitle their holders to receive notice to participate and vote in general meetings of the Company, the right to share in distributions upon liquidation of the Company, and to receive dividends, if declared.

b.Stock options plans:

1.In 2003, the Company adopted a share option plan (the "Plan"). Under the Plan, options and Restricted Share Units ("RSUs") may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years. The options expire between six to ten years from the date of grant. In December 2012, the Company extended the term of the Plan for an additional period of ten years.

Upon adoption of the Plan, the Company reserved for issuance 8,639,000 ordinary shares in accordance with the respective terms thereof. From the adoption of the plan until December 31, 2020 the board of the company approved to reserve an additional amount of 16,256,688 ordinary shares. Any options or RSU's, which are canceled or forfeited before the expiration date, become available for future grants. As of December 31, 2020, the Company has 1,133,883 Ordinary shares available for future grant under the Plan.

2.On September 6, 2010, the Company's board of directors amended the Plan so as to enable to grant RSUs pursuant to such Plan.

3.The following table summarizes the activities for the Company’s stock options for the year ended December 31, 2020:

	Year ended December 31, 2020
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at beginning of year		7,075,600		$	3.64		3.30	$	1,366
Granted		1,241,930			2.32
Exercised		(851,958	)		1.44
Forfeited or expired		(1,226,843	)		4.36

Outstanding at end of the year		6,238,729		$	3.52		3.17	$	2,654

Options exercisable at end of the year		4,017,763		$	4.05		2.19	$	1,938

Vested and expected to vest		5,806,504		$	3.59		3.02	$	2,502

F - 37

CERAGON NETWORKS LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share data)

NOTE 14:-SHAREHOLDERS' EQUITY (Cont.)

The weighted average fair value of options granted during 2018, 2019 and 2020 was $1.79, $1.39 and $1.06, respectively.

The intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 was $4,617, $626 and $770, respectively.

The following table summarizes the activities for the Company’s RSUs for the year ended December 31, 2020:

	Year ended December 31, 2020
	Number of RSUs			Aggregate intrinsic value

Unvested at beginning of year		373,623		$	785
Granted		160,100
Vested		(188,603	)
Forfeited		(35,134	)

Unvested at end of the year		309,986			862

Vested and expected to vest		231,013		$	642

The weighted average fair value at grant date of RSUs granted during 2018, 2019 and 2020 was $3.23 $2.79 and $2.11, respectively.

As of December 31, 2020, the total unrecognized estimated compensation cost related to non-vested stock options and RSU`s granted prior to that date was $ 1,730, which is expected to be recognized over a weighted average period of approximately one year.

The following is a summary of the Company's stock options and RSUs granted separated into ranges of exercise price:

Exercise price (range)	Options and RSUs outstanding as of December 31, 2020		Weighted average remaining contractual life (years) for outstanding options		Weighted average exercise price		Options and RSUs exercisable as of December 31, 2020		Weighted average remaining contractual life (years) for exercisable options		Weighted average exercise price
$					$						$

RSUs 0.0		309,986		-		0.00		-		-		0.00
0.01-2.00		883,864		0.87		1.24		853,245		0.74		1.22
2.01-4.00		4,291,793		4.11		2.62		2,155,157		3.26		2.70
4.01-6.00		302,654		2.69		4.59		248,943		2.37		4.67
6.01-8.00		15,000		1.75		6.21		15,000		1.75		6.21
8.01-10.00		365,668		1.31		8.92		365,668		1.31		8.92
10.01-13.04		379,750		0.14		12.80		379,750		0.14		12.80

		6,548,715						4,017,763

F - 38

CERAGON NETWORKS LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share data)

NOTE 14:-SHAREHOLDERS' EQUITY (Cont.)

The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2018, 2019 and 2020, was comprised as follows:

	Year ended December 31,
	2018		2019		2020

Cost of revenues	$	42	$	71	$	110
Research and development		313		366		243
Selling and marketing		640		708		545
General and administrative		985		908		764

Total share-based compensation expenses	$	1,980	$	2,053	$	1,662

c.Dividends:

In the event that cash dividends are declared in the future, such dividends will be paid in NIS or in foreign currency subject to any statutory limitations. The Company does not intend to pay cash dividends in the foreseeable future.