Equity Incentive Plan

6 Months Ended

Jun. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plan

NOTE 6: EQUITY INCENTIVE PLAN

In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). The 2015 Plan replaced the 2013 Share Option Plan.  Under the 2015 Plan, the Company can issue various types of equity compensation awards such as restricted shares, performance shares, restricted stock units, performance units, long-term cash award and other share-based awards.  

The options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grant.

As of June 30, 2016, 12,898,636 ordinary shares were available for grant under the 2015 Plan.  

A summary of the status of the Company’s option plans as of June 30, 2016 and changes during the period then ended is presented below:

	Six months ended June 30, 2016
	Unaudited
	Number of options			Weighted average exercise price
Outstanding at beginning of year		10,134,829		$	8.20
Granted		2,127,275			13.86
Exercised		(825,240	)		0.21
Forfeited and cancelled		(78,243	)		17.86
Outstanding as of June 30, 2016		11,358,621			9.77
Exercisable options		5,586,108			4.86
Vested and expected to vest		11,157,637		$	9.71

The fair value of share-based awards was estimated using the Black-Scholes option-pricing model for all grants with the following underlying assumptions: 

	Six months ended June 30,			Year ended December 31,
	2016	2015		2015
	Unaudited			Audited
Expected term (years)	6.25		6.25	6.25
Expected volatility	59.80%-61.65%	62.5% - 65.8%		59.00%-65.80%
Risk-free interest rate	1.23%-1.88%	1.75% - 1.9%		1.74%-2.05%
Dividend yield	0%	0%		0%

The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and six months ended June 30, 2016 and 2015 and the year ended December 31, 2015 was:

	Three months ended June 30,				Six months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited				Unaudited				Audited
Cost of revenues	$	170	$	6	$	311	$	19	$	174
Research, development and clinical trials		839		628		1,602		1,049		2,529
Sales and marketing		1,349		571		2,639		979		2,496
General and administrative		3,279		1,427		6,541		2,397		6,661
Total share-based compensation expense	$	5,637	$	2,632	$	11,093	$	4,444	$	11,860

In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company intends to begin offerings under the ESPP on August 1, 2016.  As of June 30, 2016, 1,667,785 ordinary shares were available to be purchased by eligible employees under the ESPP and no shares have been offered under the ESPP.