FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

In estimating the warrants' fair value, the Company used the following assumptions:

	March 31, 2018

Risk-free interest rate (1)		1.93	%
Expected volatility (2)		77.69	%
Expected life (in years) (3)		0.48
Expected dividend yield (4)		0	%

Fair value per warrant	$	0.0004

(1)

Risk-free interest rate - based on yield rates of non-index linked U.S. Federal Reserve treasury bonds.

(2)

Expected volatility - was calculated based on actual historical stock price movements of the Company together with companies in the same industry over a term that is equivalent to the expected term of the option.

(3)

Expected life - the expected life was based on the expiration date of the warrants.

(4)

Expected dividend yield - was based on the fact that the Company has not paid dividends to its shareholders in the past and does not expect to pay dividends to its shareholders in the future.

(5)

The changes in Level 3 liabilities associated with the warrants are measured at fair value on a recurring basis. The following tabular presentation reflects the components of the liability associated with such warrants as of March 31, 2018:

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tabular presentation reflects the components of the liability associated with such warrants as of March 31, 2018:

	Fair value of liability related to warrants

Balance on December 31, 2017	$	1
Change in fair value of warrants during the period		(1)

Balance at March 31, 2018 (unaudited)	$	*) -

*) Represents an amount lower than $1.