XML 30 R18.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Share-Based Payment
 12 Months Ended
Dec. 31, 2023
Share-Based Payment [Abstract]  
SHARE-BASED PAYMENT
NOTE 12:SHARE-BASED PAYMENT

 

On August 29, 2011, the Company’s Board of Directors approved the adoption of an employee share option plan for the grant of options exercisable into shares of the Company, in accordance with section 102 to the Israeli Tax Ordinance (the “2011 Plan”) which ended after 10 years, and the holding of up to 10,000,000 shares in the framework of the 2011 Plan, for option allocation to Company employees, directors and consultants. The terms of the options, which will be granted according to the 2011 Plan, including the option period, exercise price, vesting period and exercise period shall be determined by the Company’s Board of Directors on the date of the actual allocation. On January 29, 2020, it was decided to increase the reserve by 10 million and on May 19, 2020 it was decided to increase the reserve by another 10 million options. The total reserve after these increases is 30 million.

 

As of December 31, 2023, the remaining number of options available for grant under the 2011 Plan is 17,450,000 options.

 

On March 2, 2023, the Company’s shareholders approved the grant of options exercisable into 150,000 of the Company’s ordinary shares to one of Company’s directors for an exercise price of NIS 0.0495 per share (USD 0.014 per share, respectively, based on the exchange rate reported by the Bank of Israel on the same day). The options were fully vested on the day of grant.

 

On March 14, 2023, Company’s Board of directors approved retroactively to extend the expire date of the 2011 plan by additional 5 years to August 29, 2026.

 

Regarding options granted subsequent to balance sheet date and the extension of exercise period for certain directors, refer to Note 19.

 

Movements in the number of share options and their related weighted average exercise prices (in dollars) during the years ended December 31, 2023, 2022 and 2021 are as follows:

 

   Year ended December 31, 
   2023   2022   2021 
   Number of
options		   Weighted
average
exercise
price (USD)		   Number of
options		   Weighted
average
exercise
price		   Number of
options		   Weighted
average
exercise
price		 
                         
Outstanding at beginning of year   12,400,000    0.05    12,400,000    0.05    16,200,000    0.07 
Granted   150,000    0.01    -    -    -    - 
Exercised   -    -    -    -    -    - 
Expired   -    -    -    -    (3,433,331)   0.16 
Forfeited   -    -    -    -    (366,669)   0.08 
                               
Outstanding at end of year   12,550,000    0.05    12,400,000    0.05    12,400,000    0.05 
                               
Exercisable at end of year   12,550,000    0.05    10,733,330    0.05    7,399,998    0.07 

 

Below is information about the exercise price (in dollars) and the remaining contractual life (in years) for options outstanding at end of year:

 

December 31, 
2023   2022 
Options
outstanding at
end of year		   Range of
exercise prices
(USD)		   Weighted
average
remaining
contractual life		   Options
outstanding at
end of year		   Range of
exercise prices
(USD)		   Weighted
average
remaining
contractual life		 
                      
 10,900,000    0.03 - 0.14    6.07    10,900,000    0.03 - 0.14    6.94 
 1,500,000    0.17    1.66    1,500,000    0.17    2.66 
 150,000    0.01    9.17    -    -    - 
                            
 12,550,000              12,400,000           

 

December 31, 2021 
Options
outstanding at
end of year		   Range of
exercise prices
(USD)		   Weighted
average
remaining
contractual life		 
          
 10,900,000    0.03 - 0.14    7.94 
 1,500,000    0.17    3.66 
             
 12,400,000           

 

Share based expenses recognized in the Company’s statements of comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021 for grant of options to employees and service providers were $3, $14 and $37 thousand, respectively.

 

The table below summarizes the outstanding options as of December 31, 2023 that have been granted to the Company’s executives, directors and consultants –

 

Options
 outstanding		   Position 

Grant

date (*)

  Exercise
price in
NIS		  

Fair value

USD in
thousands

   Vesting schedule
                   
 750,000   Four Directors  December 30, 2014   0.4325-0.4915    46   33.33% of the stock options vest following the lapse of 12 months from the grant date, and the remaining 66.67% vest in 8 equal portions each quarter over a period of 2 years from the first
 150,000   One Director  March 25, 2015   0.40    24   33.33% of the stock options vest following the lapse of 12 months from the grant date, and the remaining 66.67% vest in 8 equal portions each quarter over a period of 2 years from the first
 1,500,000   Chairman of Board  March 31, 2016   0.6    63   12 equal portions each quarter over a period of 3 years from the date of grant
 10,000,000   Chief Executive Officer  July 7, 2020   0.09    103   12 equal portions each quarter over a period of 3 years from the grant date
 150,000   Director  March 2, 2023   0.0495    1   Fully vested on date of grant
                      
 12,550,000                    

 

(*)Date of the Company's Board of Directors’ decision (or shareholders, if required). As of December 31, 2023, all options are vested and therefore there is no unrecognized compensation cost.

The fair value for options granted in 2023 is estimated at the date of grant using a Black-Scholes model with the following weighted average assumptions:

 

   March 2, 2023 
     
Dividend yield   0%
Expected volatility   67.5%
Risk-free interest   4.08%
Expected life (years)   10 

 

We have calculated the volatility based on the Company's historical volatility. The share price was set according to the Company's share market value.

 

No options were granted in 2022 and 2021.