Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Summary of the status of the 2011 share incentive plan

	Years ended December 31,
	2 0 1 7					2 0 1 6					2 0 1 5
	Number			Weighted average exercise price		Number			Weighted average exercise price		Number			Weighted average exercise price

Options outstanding at beginning of year		875,500		$	1.60		710,300		$	2.51		851,600		$	2.63
Changes during year:
Granted (a)		90,000		$	0.65		344,000		$	0.003		116,800		$	1.66
Exercised		(46,000	)	$	1.15		(59,000	)	$	1.45		(92,100	)	$	1.85
Forfeited		(78,400	)	$	1.41		(117,800	)	$	2.49		(166,000	)	$	2.88
Expired		(28,000	)	$	2.95		(2,000	)	$	2.16		-			-
Options outstanding at end of year		813,100		$	1.49		875,500		$	1.60		710,300		$	2.51

Options exercisable at end of year		303,000		$	2.90		246,500		$	2.87		51,000		$	1.98
Vested and expected to vest at end of year		731,517		$	1.72

Weighted average grant date fair value of options granted during the year (b)				$	1.30				$	1.46				$	0.94

(a)

In the year ended December 31, 2017 the options were granted with an exercise price equal to the average closing price per share of the Company’s ordinary shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to par value of NIS 0.01.

(b)

The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions:

Summary of fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model

	Years ended December 31,
	2 0 1 7			2 0 1 6			2 0 1 5

Dividend yield		11	%		11	%		10	%

Expected volatility*		35	%		35	%		48	%

Average risk-free interest rate		1.9	%		2.0	%		1.5	%

Expected average term - in years		3.88			3.88			3.88

Volatility is based on historical volatility of the Company’s share price for periods matching the expected term of the option until exercise.

Summary of information about options outstanding and exercisable

	Options Outstanding						Options Exercisable
Range of exercise prices	Number outstanding at December 31, 2 0 1 7		Weighted average remaining contractual life		Weighted average exercise price		Number exercisable at December 31, 2 0 1 7		Weighted average remaining contractual life		Weighted average exercise price
			Years						Years
$ 0.003 – 2.160		409,600		3.73	$	0.10		18,000		0.18	$	2.16
$ 2.425 – 2.947		403,500		2.01	$	2.91		285,000		1.85	$	2.94
		813,100		2.88	$	1.49		303,000		1.75	$	2.90