SHARE CAPITAL (Tables)

Below is a table summarizing all of the options and restricted stock grants to employees for each year of the three-year period ended December 31, 2014:

Year of grant		No. of options or restricted stock granted		Exercise price range		Vesting period		Fair value at grant (U.S. dollars in thousands)		Expiration period
	2012		400,000		n/a		3 years	$	2,288		n/a
	2012		1,100,000		n/a		4 years	$	6,292		n/a
	2014		900,000	$	2.37		4 years	$	1,007		10 years
			2,400,000

Options granted to employees:

	Year ended December 31,
	2012				2013				2014
			Weighted				Weighted				Weighted
	Number		average		Number		average		Number		average
	of		exercise		of		exercise		of		exercise
	options		price		options		price		options		price
Outstanding at beginning of year		6,141,030	$	3.563		5,253,579	$	3.923		5,153,898	$	3.951
Changes during the year:
Granted										900,000		2.370
Forfeited and Expired		25,858		4.372		20,558		6.603		44,201		6.833
Exercised (*)		861,593		1.346		79,123		1.418		139,388		0.446
Outstanding at end of year		5,253,579	$	3.923		5,153,898	$	3.951		5,870,309	$	3.770
Exercisable at end of year		4,258,441	$	3.201		4,614,148	$	3.591		4,905,559	$	3.933

(*)	The total intrinsic value of options exercised during the years ended December 31, 2012, 2013 and 2014, was approximately $4.8 million, $306,000 and $447,000, respectively.

Restricted stock granted to employees:

	Year ended December 31,
	2012		2013		2014
	Number of Restricted Shares
Outstanding at beginning of year		-		1,394,708		970,208
Changes during the year:
Granted		1,500,000
Vested		102,084		406,666		398,375
Forfeited		3,208		17,834		185,709
Outstanding at end of year		1,394,708		970,208		386,124

Options and restricted stocks granted to consultants, directors, and other service providers:

	Year ended December 31,
	2012				2013				2014
			Weighted				Weighted				Weighted
	Number		average		Number		average		Number		average
	of		exercise		of		exercise		of		exercise
	options		price		options		price		options		price
Outstanding at beginning of year		1,238,692	$	5.385		912,425	$	7.259		912,425	$	7.259
Changes during the year-
Granted										296,167		2.678
Exercised (*)		326,267		0.12
Outstanding at end of year		912,425	$	7.259		912,425	$	7.259		1,208,592		6.136
Exercisable at end of year		912,425	$	7.259		912,425	$	7.259		912,425	$	7.259

(*)	The total intrinsic value of options exercised during the year ended December 31, 2012 was approximately $2.3 million.

The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2014:

December 31, 2014
Options and restricted stock outstanding						Options exercisable
Exercise prices		Number of options and restricted stock outstanding at end of year		Weighted average remaining contractual life		Number of options exercisable		Weighted average remaining contractual life
	n/a (Restricted Stock)		490,624		n/a		n/a		n/a
$	0.001		719,207		0.54		719,207		0.54
$	0.120		308,801		2.00		308,801		2.00
$	0.972		995,853		1.44		995,853		1.44
$	2.350		40,000		3.82		40,000		3.82
$	2.370		900,000		9.75		56,250		9.75
$	2.650		345,082		3.49		345,082		3.49
$	3.020		50,000		3.10		50,000		3.10
$	3.370		150,000		9.56		-		9.56
$	5.000		1,708,000		2.66		1,708,000		2.66
$	6.810		150,000		5.10		150,000		5.10
$	6.900		991,916		4.32		829,249		4.32
$	7.550		160,000		5.66		160,000		5.66
$	9.660		68,000		5.83		68,000		5.83
$	16.700		387,542		1.99		387,542		1.99
			7,465,025				5,817,984

The following table illustrates the effect of share-based compensation on the statement of operations:

	Year ended December 31,
(U.S. dollars in thousands)	2012		2013		2014
Cost of revenues	$	220
Research and development expenses		4,756	$	2,655	$	936
Marketing, General and administrative expenses		2,775		1,434		306
	$	7,751	$	4,089	$	1,242