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SHARE CAPITAL AND STOCK OPTIONS
 6 Months Ended
Dec. 31, 2011
SHARE CAPITAL AND STOCK OPTIONS [Abstract]  
SHARE CAPITAL AND STOCK OPTIONS
NOTE 6: - SHARE CAPITAL AND STOCK OPTIONS
 
 
a.
The Company's authorized common stock consists of 100,000,000 shares with a par value of $0.00001 per share.  All shares have equal voting rights and are entitled to one vote per share in all matters to be voted upon by stockholders. The shares have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Board of Directors out of funds legally available.
 
The Company's authorized preferred stock consists of 10,000,000 shares of preferred stock, par value $0.00001 per share, with series, rights, preferences, privileges and restrictions as may be designated from time to time by the Company's Board of Directors.  No shares of preferred stock have been issued.
 
 
b.
In July till December 2011, a total of 156,122 warrants were exercised via a "cashless" exercise, resulting in the issuance of 77,166 shares of common stock to investors of the Company. In addition 206,100 warrants were exercised and resulted in the issuance of 206,100 shares of common stock by investors of the Company. The aggregate cash consideration received was $371.
 
 
c.
On October 26, 2011, the Company issued 500,000 shares as an advance payment to Biopharmax as part of the agreement for building the new Company facility.

 
d.
Options, warrants, restricted stock and restricted stock units to employees, directors and consultants:
 
The Company has approved two incentive option plans from 2003 and from 2005 (the "2003 Plan" and the "2005 Plan", and collectively, the "Plans").  Under these Plans, options, restricted stock and restricted stock units (the "Awards") may be granted to the Company's officers, directors, employees and consultants.  Any Awards that are cancelled or forfeited before expiration become available for future grants.
 
As of December 31, 2011, the number of shares of common stock authorized for issuance under the 2005 Plan amounted to 10,505,995.  1,131,281 shares are still available for future grant under the 2005 Plan as of December 31, 2011.  Under the 2003 Plan 20,500 options are authorized for issuance, and 15,296 options are still available for future grant as of December 31, 2011.
 
 
a.  Options to employees and directors:
 
The Company accounted for its options to employees and directors under the fair value method in accordance with ASC 718, "Compensation - Stock Compensation". A summary of the Company's share option activity for options granted to employees and directors under the Plans is as follows:
 
   
Six months ended December 31, 2011
  
   
Number
    
Weighted Average Exercise Price
    
Weighted Average Remaining Contractual Terms (in years)
    
Aggregate Intrinsic Value Price
  
Options outstanding at beginning of period
     2,200,616     $ 3.84              
Options exercised
     (18,000 )     0.62              
Options forfeited
     (64,046 )     3.65              
Options outstanding at end of the period
     2,118,570     $ 3.88       5.39     $ 981  
Options exercisable at the end of the period
     2,118,570     $ 3.88       5.39     $ 981  
Options vested and expected to vest
     2,118,570     $ 3.88       5.39     $ 981  
 
Intrinsic value of exercisable options (the difference between the Company's closing stock price on the last trading day in the period and the exercise price, multiplied by the number of in-the-money options) represents the amount that would have been received by the employees and directors option holders had all option holders exercised their options on December 31, 2011. This amount changes based on the fair market value of the Company's common stock.
 
Compensation expenses related to options granted to employees and directors were recorded as follows:
 
   
Six months ended December 31,
    
Three months ended December 31,
  
   
2011
    
2010
    
2011
    
2010
  
Research and development expenses
   $ -     $ 3     $ -     $ 1  
General and administrative expenses
     -       4       -       -  
    $ -     $ 7     $ -     $ 1  
 
 
 
b. Options and warrants to non-employees:
 
 
On December 21, 2011, the Company's Compensation Committee approved a grant of a total of 12,000 options to the Company's consultants

A summary of the Company's activity related to options and warrants to consultants is as follows:

   
Six months ended December 31, 2011
  
   
Number
    
Weighted Average Exercise Price
    
Weighted Average Remaining Contractual Terms (in years)
    
Aggregate Intrinsic Value Price
  
Options and warrants outstanding at beginning of period
     425,000     $ 3.65              
Options and warrants granted
     12,000       -              
Options and warrants exercised
     (5,000 )     0.62              
Options and warrants outstanding at end of the period
     432,000     $ 3.58       4.61     $ 469  
                                 
Options and warrants exercisable at the end of the period
     411,000     $ 3.77       4.35     $ 417  
                                 
Options and warrants vested and expected to vest
     432,000     $ 3.58       4.61     $ 469  
 
Compensation expenses related to options and warrants granted to consultants were recorded as follows:
 
   
Six months ended 
December 31,
    
Three months ended
December 31,
  
   
2011
    
2010
    
2011
    
2010
  
Research and development expenses
   $ 19     $ 17     $ 9     $ 7  
General and administrative expenses
     15       1       7       -  
    $ 34     $ 18     $ 16     $ 7  
 
Future expenses related to options and warrants granted to consultants for an average time of almost two years is $40.
 
c.  Restricted stock and restricted stock units to employees and directors:
 
On December 21, 2011, the Company's Compensation Committee approved a grant of a total of 1,547,250 restricted stock units to the Company's employees and directors.
 
The following table summarizes the activities for unvested restricted stock units and restricted stock granted to employees and directors for the six months ended December 31, 2011:
 
   
Number
  
Unvested at the beginning of period
     2,138,955  
Granted
     1,573,638  
Forfeited
     (10,623 )
Vested
     (814,160 )
Unvested at the end of the period
      2,887,810  
Expected to vest after December 31, 2011
     2,838,670  
 
Compensation expenses related to restricted stock and restricted stock units granted to employees and directors were recorded as follows:
 
   
Six months ended 
December 31,
    
Three months ended
December 31,
  
   
2011
    
2010
    
2011
    
2010
  
   Research and development expenses
   $ 483     $ 417     $ 230     $ 282  
   General and administrative expenses
     1,290       821       612       588  
    $ 1,773     $ 1,238     $ 842     $ 870  

Future expenses related to restricted stock and restricted stock units granted to employees and directors for an average time of almost two years is $4,975.
 
d. Restricted stock and restricted stock units to consultants:
 
During the six months ended December 31, 2011, the Company granted to several consultants and service providers restricted stock.
 
The following table summarizes the activities for unvested restricted stock units and restricted stock granted to consultants for the six months ended December 31, 2011:
 
   
Number
  
Unvested at the beginning of period
     149,998  
         
Granted
     433  
         
Vested
     (53,431 )
Unvested at the end of the period
     97,000  
Expected to vest after December 31, 2011
     97,000  
 
Compensation expenses related to restricted stock and restricted stock units granted to consultants were recorded as follows:
 
   
Six months ended 
December 31,
    
Three months ended
December 31,
  
   
2011
    
2010
    
2011
    
2010
  
Research and development expenses
   $ 112     $ 74     $ 53     $ 50  
General and administrative expenses
     1       127       1       74  
    $ 113     $ 201     $ 54     $ 124  
 
Future expenses related to restricted stock and restricted stock units granted to consultants for an average time of almost two years is $58.
 
f.     Summary of warrants and options:
 
A summary of all the warrants and options outstanding as of December 31, 2011 is presented in this table:
 
 
Warrants / Options
  
Exercise Price per Share
    
Options and Warrants for Common Stock
    
Options and Warrants Exercisable
    
Weighted Average Remaining Contractual Terms(in years)
  
                                 
Warrants:
   $ 1.00       2,014,518       2,014,518       1.92  
    $ 1.12       114,794       114,794       0.32  
    $ 1.20       12,500       12,500       0.80  
    $ 1.25 - 1.28       762,642       762,642       0.99  
    $ 1.40 - $ 1.50       1,768,040       1,768,040       2.83  
    $ 1.60       181,221       181,221       3.28  
    $ 1.80 - $ 1.96       3,721,445       3,721,445       2.46  
    $ 2.50       81,298       81,298       0.46  
    $ 4.20       5,060,000       5,060,000       4.59  
    $ 5.00       2,394,585       2,394,585       0.49  
Total warrants
             16,111,043       16,111,043          
                                 
Options:
   $ 0.00       110,000       89,000       8.01  
    $ 0.62       471,612       471,612       6.74  
    $ 1.04-$ 1.45       145,006       145,006       3.62  
    $ 2.97       20,000       20,000       6.36  
    $ 3.50       982,938       982,938       4.92  
    $ 3.72 - $ 3.80       31,550       31,550       4.94  
    $ 4.00       42,500       42,500       4.80  
    $ 4.38 - $ 4.40       464,304       464,304       5.34  
    $ 6.80       36,250       36,250       5.87  
    $ 8.20       46,670       46,670       4.04  
    $ 20.00       142,500       142,500       4.48  
Total options
             2,493,330       2,472,330          
                                 
Total warrants and options
             18,604,373       18,583,373          
 
This summary does not include 2,984,810 restricted stock units that are not vested as of December 31, 2011.