NOTE 7: EQUITY INCENTIVE PLANS

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

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 grants. RSUs granted under the 2015 Plan vest in equal installments over a three-year period. As of March 31, 2018, 10,706,475 ordinary shares were available for grant under the 2015 Plan.

A summary of the status of the Company’s option plans as of March 31, 2018 and changes during the period then ended is presented below:

	Three months ended March 31, 2018
	Unaudited
	Number of options			Weighted average exercise price
Outstanding at beginning of year		14,806,027		$	10.64
Granted		1,904,634			21.15
Exercised		(500,166	)		5.27
Forfeited and cancelled		(71,307	)		11.86
Outstanding as of March 31, 2018		16,139,188		$	12.04

Exercisable options		7,375,692		$	9.31

A summary of the status of the Company’s RSUs as of March 31, 2018 and changes during the period then ended is presented below:

	Three months ended March 31, 2018
	Unaudited
	Number of RSUs			Weighted average grant date fair value price
Unvested at beginning of year		1,651,219		$	9.66
Granted		427,518			21.15
Vested		(256,578	)		7.15
Forfeited and cancelled		(7,669	)		8.49
Unvested as of March 31, 2018		1,814,490		$	12.73

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 began its offerings under the ESPP on August 1, 2016. As of March 31, 2018, 2,277,705 ordinary shares were available to be purchased by eligible employees under the ESPP and 259,281 shares had been issued under the ESPP.

The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions:

	Three months ended March 31,						Year ended December 31,
	2018			2017			2017
	Unaudited						Audited
Stock Option Plans
Expected term (years)	6.25			6.25			5.5-6.25
Expected volatility		55.04	%		59.15	%	56.74%-59.45%
Risk-free interest rate		2.77	%		2.23	%	1.97%-2.23%
Dividend yield	0.00%			0.00%			0.00%
ESPP
Expected term (years)	0.50			0.50			0.50
Expected volatility		52.58	%	82.00%			76.37%-82.00%
Risk-free interest rate		1.61	%	0.62%			0.62%-1.13%
Dividend yield	0.00%			0.00%			0.00%

The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2018 and 2017 and the year ended December 31, 2017 was:

	Three months ended March 31,				Year ended December 31,
	2018		2017		2017
	Unaudited				Audited
Cost of revenues	$	164	$	143	$	467
Research, development and clinical trials		906		862		3,587
Sales and marketing		1,436		655		3,784
General and administrative		6,014		2,901		19,278
Total share-based compensation expense	$	8,520	$	4,561	$	27,116