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Share incentive plan
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
10.
Share incentive plan
 
In December 2013, the Company adopted the 2013 Incentive Option Plan (the “2013 Plan”), which provided for the grant of incentive Ordinary share options and nonqualified Ordinary share options to employees, directors, and nonemployees of the Company. As of December 31, 2016, the Company granted a total of 3,345,960 options to purchase Ordinary shares. Option awards generally expire 10 years from the grant date and generally vest over four years, but vesting conditions can vary at the discretion of the Company’s board of directors (the “Board”). As of December 31, 2016, 694,179 shares of Ordinary shares remain available for future grants under the 2013 Plan.
 
The fair value of each Ordinary share option issued was estimated at the date of grant using the following weighted-average assumptions:
 
 
 
Year ended December 31,
 
 
 
2016
 
2015
 
2014
 
Risk-free interest rate
 
 
1.18%-2.06%
 
 
1.30% -1.90%
 
 
1.55%-2.21%
 
Expected option term (years)
 
 
5.00-7.00
 
 
5.12-7.00
 
 
5.12-7.00
 
Expected price volatility
 
 
79.34%-90.65%
 
 
70.40%-83.74%
 
 
69.49%-84.63%
 
Dividend yield
 
 
0%
 
 
0%
 
 
0%
 
 
A summary of option activity as of December 31, 2016, and the year then ended is presented below:
 
 
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Weighted-
 
 
Remaining
 
 
Aggregate
 
 
 
Number of
 
 
Average
 
 
Contractual
 
 
Intrinsic
 
 
 
Stock Options
 
 
Exercise Price
 
 
Term (Years)
 
 
Value
 
Outstanding, January 1, 2016
 
 
2,103,502
 
 
$
5.81
 
 
 
8.52
 
 
$
1,584,753
 
Exercised
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Granted
 
 
1,658,416
 
 
$
2.21
 
 
 
 
 
 
 
 
 
Forfeited/Expired
 
 
(1,110,137)
 
 
$
6.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 31, 2016
 
 
2,651,781
 
 
$
3.41
 
 
 
7.74
 
 
$
419,840
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable, December 31, 2016
 
 
1,300,224
 
 
$
4.47
 
 
 
6.00
 
 
$
419,696
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and expected to vest, December 31, 2016
 
 
2,651,781
 
 
$
3.41
 
 
 
7.74
 
 
$
419,840
 
 
The weighted-average grant date per-share fair value of Ordinary shares options granted during 2016, 2015, and 2014 were $1.56, $4.16, and $4.10, respectively. At December 31, 2016, there was $1,309 thousands of unrecognized compensation cost related to Ordinary share options, which is expected to be recognized over a weighted-average period of 3.0 years.
 
Share-based compensation expense is classified in the consolidated statements of operations as follows:
 
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
2014
 
 
 
U.S. dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
Research and development expenses
 
$
531
 
 
$
381
 
 
$
83
 
Pre-commercialization expenses
 
 
(147)
 
 
 
159
 
 
 
-
 
General and administrative expenses
 
 
316
 
 
 
2,083
 
 
 
653
 
 
 
$
700
 
 
$
2,623
 
 
$
736
 
 
During 2016, and primarily as result of the workforce reductions discussed in Note 13, 1,110,137 Ordinary share options were forfeited. As a result of said forfeitures $1,424 thousands of previously recognized share-based compensation expenses were reversed, of which $130 thousands, $287 thousands and $1,007 thousands, were recorded in the research and development expenses, pre-commercialization expenses and general and administrative expenses, respectively.
 
During 2016, the Company modified the terms of certain outstanding Ordinary shares options by extending exercisability of the options through the first anniversary of termination of employment. In addition, during 2015, the Company modified terms of certain outstanding Ordinary shares options by (a) extending exercisability of the options through the first anniversary of termination of employment, and (b) accelerating the vesting of Ordinary shares options upon termination of employment. The incremental compensation expense, resulting from comparing the fair value of Ordinary shares options immediately before and immediately after the modifications, for the year ended December 31, 2015 totaled $46 thousands There was no incremental compensation related to the 2016 modification. The incremental compensation expenses for the year ended December 31, 2015 were classified as general and administrative expense in the accompanying consolidated financial statements.