INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2017

NOTE 16

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INCOME (LOSS) PER SHARE

The loss and the weighted average number of shares used in computing basic and diluted loss per share for the years ended December 31, 2017, 2016 and 2015, are as follows:

	US dollars
	Year ended December 31,
	2017			2016			2015

Income (loss) for the year		(10,328,806	)		(5,409,737	)		(5,842,172	)
Cash dividend on Series A Preferred Stock		(14,950	)		(18,229	)		(57,061	)
Stock dividend on Series B Preferred Stock		(854,647	)		(647,215	)		(390,219	)
Stock dividend on Series C Preferred Stock		(566,033	)		(152,480	)		-
Income (loss) for the period attributable to common stockholders		(11,764,436	)		(6,227,661	)		(6,289,452	)

	Number of shares
	Year ended December 31,
	2017		2016		2015

Common shares used in computing Basic income (loss) per share		6,285,324		5,788,842		5,476,870
Common shares used in computing Diluted income (loss) per share (*)		6,285,324		5,788,842		5,476,870
Total weighted average number of Common shares related to outstanding convertible Preferred Stock, options and warrants excluded from the calculations of diluted income (loss) per share (**)		21,300,975		12,745,874		9,431,728

(*)

In applying the treasury method, the average market price of Common Stock was based on management estimate. For December 31, 2017, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series D Units. For December 31, 2016 and 2015, management estimation considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series C Units and Series B Units (See Note 10C).

(**)

The Company excludes from the calculation of diluted income (loss) per share, shares that will be issued upon the exercise of options and warrants with exercise prices, that are greater than the estimated average market value of the Company’s Common Stock and shares issuable upon conversion of Preferred Stock because their effect would be anti-dilutive. Outstanding shares that will be issued upon conversion or exercise, as applicable, of all convertible Preferred Stock, stock options and warrants, have been excluded from the calculation of the diluted net loss per share for all the reported periods for which net loss was reported because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.