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EVENTS DURING THE REPORTED PERIOD
 9 Months Ended
Sep. 30, 2012
EVENTS DURING THE REPORTED PERIOD [Abstract]  
EVENTS DURING THE REPORTED PERIOD
NOTE 3
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EVENTS DURING THE REPORTED PERIOD

1.
On March 12, 2012, the Company granted to Company employees options to purchase 17,500 shares of company's Common Stock at an exercise price of US$6.25 per share. All options were granted in accordance with and subject to the terms of the Company's 2010 incentive Compensation Plan.


The fair value of options granted in March 2012, was estimated at the dates of grant using the Black-Scholes option pricing model. The following are the data and assumptions used:

Dividend yield (%)
0
Expected volatility (%) (*)
50
Risk free interest rate (%)
2
Expected term of options (years) (**)
6
Exercise price (US dollars)
6.25
Share price (US dollars) (***)
6.25
Fair value (US dollars)
3.08


(*)
Due to the fact that the Company has a very limited history as a public entity, the expected volatility is based on the historic volatility of public companies which operate in the same industry sector.


(**)
Due to the fact that the Company does not have historical exercise data, the expected term was determined based on the "simplified method" in accordance with Staff Accounting Bulletin No. 110.


(***)
The fair value of the share was based on the most recent share prices, as applicable to each grant.


The total non-cash compensation of this grant was approximately US$ 50 thousand.


2.
During the reported period, the down-round protection period of the warrants that were issued to the placement agent in connection with the Company's prior private placement completed in July 2011 (the "Previous Private Placement") lapsed. Such warrants included a limited period (until September 1, 2012) down-round protection under which, if the Company issued additional shares of its common stock during such period for a price of less than $6.25 per share, the strike price of the warrants would be adjusted down from $6.25 per share to the price per share at which such additional shares of Company common stock (if any) were issued. The warrants were classified as a liability and measured at fair value through earnings until the down-round protection period ended and their exercise price became fixed, at which date such warrants were reclassified to equity.