NOVOCURE LTD, 10-K filed on 3/1/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Feb. 26, 2016
Jun. 30, 2015
Document Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
NVCR 
 
 
Entity Registrant Name
Novocure Ltd 
 
 
Entity Central Index Key
0001645113 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Non-accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
84,426,720 
 
Entity Public Float
 
 
$ 0 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current Assets:
 
 
Cash and cash equivalents
$ 119,423 
$ 57,613 
Short-term investments
150,001 
44,999 
Restricted cash
87 
61 
Receivables and prepaid expenses
10,799 
5,711 
Inventories
13,594 
3,446 
Total current assets
293,904 
111,830 
Long-term Assets:
 
 
Property and equipment, net
6,552 
3,732 
Field equipment, net
6,029 
2,017 
Severance pay fund
79 
70 
Other long-term assets
772 
227 
Total long-term assets
13,432 
6,046 
Total Assets
307,336 
117,876 
Current Liabilities:
 
 
Trade payables
16,755 
10,033 
Other payables and accrued expenses
11,872 
7,636 
Total current liabilities
28,627 
17,669 
Long-term Liabilities:
 
 
Long-term loan, net of discount and issuance costs
23,097 
Employee benefit liabilities
2,057 
246 
Other long-term liabilities
2,735 
2,086 
Total long-term liabilities
27,889 
2,332 
Total Liabilities
56,516 
20,001 
Commitments and Contingencies
Shareholders’ Equity:
 
 
Ordinary shares - No par value, Unlimited shares authorized; Issued and outstanding: 83,778,581 shares and 13,431,414 shares at December 31, 2015 and December 31, 2014 respectively;
Preferred shares - No par value, Unlimited shares authorized; Issued and outstanding: Zero shares and 58,676,017 shares at December 31, 2015 and December 31, 2014 respectively;
Additional paid-in capital
640,406 
374,375 
Accumulated other comprehensive loss
(1,505)
Accumulated deficit
(388,081)
(276,500)
Total shareholders’ equity
250,820 
97,875 
Total Liabilities and Shareholders’ Equity
$ 307,336 
$ 117,876 
Consolidated Balance Sheets (Parenthetical)(USD ($))
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Statement Of Financial Position [Abstract]
 
 
Common stock, par value
$ 0 
$ 0 
Common stock, shares authorized
Unlimited 
Unlimited 
Common stock, shares issued
83,778,581 
13,431,414 
Common stock, shares outstanding
83,778,581 
13,431,414 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
Unlimited 
Unlimited 
Preferred stock, shares issued
58,676,017 
Preferred stock, shares outstanding
58,676,017 
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement [Abstract]
 
 
 
Net revenues
$ 33,087 
$ 15,490 
$ 10,359 
Cost of revenues
20,610 
10,036 
7,013 
Gross profit
12,477 
5,454 
3,346 
Operating costs and expenses:
 
 
 
Research, development and clinical trials
43,748 
40,381 
34,797 
Sales and marketing
38,861 
21,177 
16,406 
General and administrative
33,864 
24,052 
16,602 
Total operating costs and expenses
116,473 
85,610 
67,805 
Operating loss
(103,996)
(80,156)
(64,459)
Financial expenses, net
(3,151)
(144)
(12,558)
Loss before income taxes
(107,147)
(80,300)
(77,017)
Income taxes
4,434 
382 
353 
Net loss
$ (111,581)
$ (80,682)
$ (77,370)
Basic and diluted net loss per ordinary share
$ (3.67)
$ (6.46)
$ (6.73)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
30,401,603 
12,490,017 
11,498,392 
Consolidated Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net loss
$ (111,581)
$ (80,682)
$ (77,370)
Other comprehensive loss, net of tax :
 
 
 
Pension benefit plan, net of tax
(1,505)
 
 
Total comprehensive loss
$ (113,086)
$ (80,682)
$ (77,370)
Statements of Changes in Shareholders' Equity (USD $)
In Thousands, except Share data
Total
USD ($)
Over-Allotment
USD ($)
Series I Preferred Stock
USD ($)
Series J Preferred Stock
USD ($)
Ordinary Shares
Ordinary Shares
Over-Allotment
Preferred Shares
Preferred Shares
Series I Preferred Stock
Preferred Shares
Series J Preferred Stock
Additional Paid-in Capital
USD ($)
Additional Paid-in Capital
Over-Allotment
USD ($)
Additional Paid-in Capital
Series I Preferred Stock
USD ($)
Additional Paid-in Capital
Series J Preferred Stock
USD ($)
Accumulated Other Comprehensive Loss
USD ($)
Accumulated Deficit
USD ($)
Balance at Dec. 31, 2012
$ 49,425 
 
 
 
 
 
 
 
 
$ 167,873 
 
 
 
 
$ (118,448)
Balance (in shares) at Dec. 31, 2012
 
 
 
 
11,419,786 
 
45,315,765 
 
 
 
 
 
 
 
 
Share-based compensation to employees
5,120 
 
 
 
 
 
 
 
 
5,120 
 
 
 
 
 
Exercise of options and warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise of options and warrants (in shares)
 
 
 
 
471,635 
 
 
 
 
 
 
 
 
 
 
Issuance of shares, net1
 
 
191,738 
 
 
 
 
 
 
 
 
191,738 
 
 
 
Issuance of shares, net (in shares)
 
 
 
 
 
 
 
13,360,252 
 
 
 
 
 
 
 
Issuance of warrants, net2
2,864 
 
 
 
 
 
 
 
 
2,864 
 
 
 
 
 
Net loss
(77,370)
 
 
 
 
 
 
 
 
 
 
 
 
 
(77,370)
Balance at Dec. 31, 2013
171,779 
 
 
 
 
 
 
 
 
367,597 
 
 
 
 
(195,818)
Balance (in shares) at Dec. 31, 2013
 
 
 
 
11,891,421 
 
58,676,017 
 
 
 
 
 
 
 
 
Share-based compensation to employees
4,624 
 
 
 
 
 
 
 
 
4,624 
 
 
 
 
 
Exercise of options and warrants
2,154 
 
 
 
 
 
 
 
 
2,154 
 
 
 
 
 
Exercise of options and warrants (in shares)
 
 
 
 
1,539,993 
 
 
 
 
 
 
 
 
 
 
Net loss
(80,682)
 
 
 
 
 
 
 
 
 
 
 
 
 
(80,682)
Balance at Dec. 31, 2014
97,875 
 
 
 
 
 
 
 
 
374,375 
 
 
 
 
(276,500)
Balance (in shares) at Dec. 31, 2014
 
 
 
 
13,431,414 
 
58,676,017 
 
 
 
 
 
 
 
 
Share-based compensation to employees
11,860 
 
 
 
 
 
 
 
 
11,860 
 
 
 
 
 
Exercise of options and warrants
2,038 
 
 
 
 
 
 
 
 
2,038 
 
 
 
 
 
Exercise of options and warrants (in shares)
 
 
 
 
731,665 
 
 
 
 
 
 
 
 
 
 
Issuance of shares, net
 
157,534 3
 
94,599 4
 
 
 
 
 
 
157,534 3
 
94,599 4
 
 
Issuance of shares, net (in shares)
 
 
 
 
 
7,876,195 
 
 
4,068,500 
 
 
 
 
 
 
Issuance of shares and options in respect of settlement, net of fair value of shares provided as indemnification (in shares)
 
 
 
 
(1,005,210)
 
 
 
 
 
 
 
 
 
 
Conversion of preferred shares to ordinary shares
 
 
 
 
62,744,517 
 
(62,744,517)
 
 
 
 
 
 
 
 
Other comprehensive loss, net of tax benefit of $165
(1,505)
 
 
 
 
 
 
 
 
 
 
 
 
(1,505)
 
Net loss
(111,581)
 
 
 
 
 
 
 
 
 
 
 
 
 
(111,581)
Balance at Dec. 31, 2015
$ 250,820 
 
 
 
 
 
 
 
 
$ 640,406 
 
 
 
$ (1,505)
$ (388,081)
Balance (in shares) at Dec. 31, 2015
 
 
 
 
83,778,581 
 
 
 
 
 
 
 
 
 
 
Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Other comprehensive loss, tax benefit
$ 165 
Over-Allotment
 
Share issuance expenses
15,742 
Warrant
 
Share issuance expenses
115 
Series I Preferred Stock
 
Share issuance expenses
2,440 
Series J Preferred Stock
 
Share issuance expenses
$ 319 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities:
 
 
 
Net loss
$ (111,581)
$ (80,682)
$ (77,370)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
3,153 
1,962 
1,216 
Asset write-downs and impairment
46 
23 
19 
Accrued interest expense
672 
 
6,070 
Share-based compensation to employees
11,860 
4,624 
5,120 
Amortization of discount (premium)
329 
(19)
5,432 
Increase in receivables and prepaid expenses
(5,088)
(1,192)
(3,611)
Decrease (increase) in inventories
(10,148)
(1,554)
1,479 
Increase in other long-term assets
(381)
(44)
(44)
Increase (decrease) in trade payables
6,961 
(492)
5,695 
Increase in other payables and accrued expenses
3,579 
2,324 
2,955 
Increase in employee benefit liabilities, net
133 
42 
20 
Increase in other long-term liabilities
581 
764 
302 
Net cash used in operating activities
(99,884)
(74,244)
(52,717)
Cash flows from investing activities:
 
 
 
Purchase of property and equipment
(4,667)
(849)
(2,201)
Purchase of field equipment
(5,604)
(1,470)
(1,426)
Decrease (increase) in restricted cash
(26)
1,117 
(1,019)
Proceeds from maturity of short-term investments
104,000 
93,000 
15,048 
Purchase of short-term investments
(208,998)
(137,980)
 
Net cash provided by (used in) investing activities
(115,295)
(46,182)
10,402 
Cash flows from financing activities:
 
 
 
Proceeds from issuance of shares, net
252,133 
 
191,738 
Proceeds from long-term loan, net
22,886 
 
49,432 
Repayment of long-term loans
 
 
(58,047)
Proceeds from issuance of other long-term loans
 
54 
193 
Repayment of other long-term loans
(63)
(63)
 
Exercise of options and warrants
2,038 
2,154 
Purchase of shares in respect of settlement
(5)
 
 
Net cash provided by financing activities
276,989 
2,145 
183,318 
Increase (decrease) in cash and cash equivalents
61,810 
(118,281)
141,003 
Cash and cash equivalents at the beginning of the year
57,613 
175,894 
34,891 
Cash and cash equivalents at the end of the year
119,423 
57,613 
175,894 
Cash paid during the year for:
 
 
 
Income taxes
1,489 
282 
689 
Interest
1,688 
25 
7,131 
Non-cash investing and financing activities:
 
 
 
Purchase of property and equipment
 
$ 239 
$ 585 
Organization and Basis of Presentation
Organization and Basis of Presentation

Note 1: Organization and Basis of Presentation

 

a. NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in Jersey and is principally engaged in the development, manufacture and commercialization of tumor treating fields (“TTFields”) for the treatment of solid tumors. Since inception, the Company has devoted substantially all of its efforts to developing a family of products to deliver TTFields for a variety of solid tumor indications, raising capital and recruiting personnel. The Company commenced selling and marketing activities in the United States at the end of 2011, in certain countries in Europe in 2014 and in Japan in 2015.

 

b. On October 7, 2015, the Company completed its initial public offering (the “IPO”) by issuing 7,876,195 ordinary shares (including exercise of overallotments) and raising net proceeds of $157,534. In September 2015, the Company’s shareholders approved the restructuring of the Company’s share capital by converting the Company’s ordinary and preferred shares to no par value shares and by effecting a sub division of the issued and outstanding share capital of the Company based on a proportion of 1: 5.913 (“Share Split Ratio”), such that each ordinary and preferred share nominal value of £0.01 of the Company, was divided into 5.913 shares of such applicable class of shares of the Company each with no par value. It was also resolved to apply the Split Ratio to the Company’s outstanding options and warrants, in accordance with their terms. All share and per share information included in these consolidated financial statements has been retroactively adjusted to reflect the conversion to no par value shares and the Share Split Ratio.

Significant Accounting Policies
Significant Accounting Policies

Note 2: Significant accounting policies

The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”).

a. Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, tax liabilities, useful-life of field equipment and share-based compensation costs. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates.

b. Financial statements in U.S. dollars:

The accompanying financial statements have been prepared in U.S. dollars in thousands.

The Company finances its operations in U.S. dollars and a substantial portion of its costs and revenues from its primary markets is incurred in U.S. dollars. As such, the Company’s management believes that the dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar.

Transactions and balances denominated in U.S. dollars are presented at their original amounts. Monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standards Codification No. 830-10, “Foreign Currency Matters.” All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate.

c. Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

d. Cash equivalents:

Cash equivalents are short-term, highly liquid investments that are readily convertible into cash with an original maturity of three months or less at the date acquired.

e. Short-term investments and restricted cash:

1. Short-term investments:

The Company accounts for investments in debt securities in accordance with ASC 320, “Investments-Debt and Equity Securities.” Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. For the years ended December 31, 2015 and 2014, all securities are classified as held-to-maturity since the Company has the intent and ability to hold the securities to maturity and, accordingly, debt securities are stated at amortized cost.

The amortized cost of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity and any other than temporary impairment losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate.

For the three years ended December 31, 2015, no impairment losses other than temporary impairment losses have been identified.

2. Restricted cash:

The Company has restricted cash  used as security for bank guarantees related to the use of Company credit cards.

f. Inventories:

Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. The Company regularly evaluates the ability to realize the value of inventory. If actual demand for the Company’s delivery systems deteriorates, or market conditions are less favorable than those projected, inventory write-offs may be required.

There were no inventory write-offs for the years ended December 31, 2015, 2014 and 2013.

g. Property and equipment:

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following rates:

 

 

 

%

Computers and laboratory equipment

 

15 - 33

Office furniture

 

6 - 33

Production equipment

 

20

Leasehold improvements

 

Over the shorter of the term of the lease or its useful life

 

h. Field equipment under operating leases:

Field equipment is stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the field equipment which was determined to be two years. Field equipment consists of equipment being utilized under rental agreements accounted for in accordance with ASC 840 on a monthly basis as an operating lease, as well as “service pool” equipment. Service pool equipment is equipment owned and maintained by the Company that is swapped for equipment that needs repairs or maintenance by the Company while being rented by a patient. The Company records a provision for any excess, lost or damaged equipment when warranted based on an assessment of the equipment. Write-downs for equipment are included in cost of revenues. During the years ended December 31, 2015, 2014 and 2013, write downs for $36, $12 and $19, respectively, had been identified.

i. Impairment of long-lived assets:

The Company’s long-lived assets are reviewed for impairment in accordance with ASC 360-10, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During the three years ended December 31, 2015, no impairment losses have been identified.

j. Other long-term assets:

Long term lease deposits in respect of office rent and vehicles under operating leases and restricted deposits are presented in other long-term assets.

k. Revenue recognition:

The TTFields delivery system (“System”) for GBM, Optune, is comprised of two main components: (1) an Electric Field Generator (the “device”) and (2) Transducer Arrays and related accessories that are disposable supplies to the device (“disposables”). Title is retained by the Company for the device and the patient is provided replacement disposables and technical support for the device during the rental period. The device and disposables are always supplied and functioning together and are not sold on a standalone basis.

Revenues are recognized when persuasive evidence of an arrangement exists, delivery of the system has occurred, the price is fixed or determinable and collectability is reasonably assured. The evidence of an arrangement generally consists of a prescription, a patient service agreement and the verification of eligibility and insurance with the patient’s third-party insurance company (“payer”). The Company generally bills third-party payers a monthly fee for use of the System by patients. As such, the Company takes assignment of benefits and risk of collection from the third-party payer. Patients have out-of-pocket costs for the amount not covered by their payer and the Company bills the patient directly for the amounts of their co-pays and deductible, subject to the Company’s patient assistance programs.

For the reported periods, all revenues are recognized when cash is collected assuming that all other revenue recognition criteria have been met, as the price is not fixed or determinable and the collectability cannot be reasonably assured. The price is not fixed or determinable since the Company does not have sufficient history with payers to reliably estimate their individual payment patterns and as such cannot reliably estimate the amount that would be ultimately collected. Once sufficient history is established and the Company can reliably estimate the amounts that would be ultimately collected per payer/payer group and the above criteria are met, the Company will recognize revenues from the use of the System on an accrual basis ratably over the lease term.

Revenues are presented net of indirect taxes, which include excise tax of $1,457 , $1,010, and $584 for the years ended December 31, 2015, 2014 and 2013, respectively, and other indirect tax of $818, $266 and $300 for the years ended December 31, 2015, 2014 and 2013, respectively.

l. Charitable care:

The Company provides Optune to patients who meet certain criteria under its charitable care policy without charge.  Because the Company does not pursue collection of amounts determined to qualify as charity, they are not reported as revenue. The Company's costs of care provided under charitable care were: $1,376, $836 and $254 for the years ended December 31, 2015, 2014 and 2013, respectively. These estimates were determined by applying a ratio of costs to gross charges multiplied by the Company's gross charitable care charges.

m. Research, development and clinical trials:

Research, development and clinical trials, including direct and allocated expenses are expensed as incurred.

n. Shipping and handling costs:

The Company does not bill its customers for shipping and handling costs associated with shipping its delivery systems to its customers. These direct shipping and handling costs of $1,385, $553 and $431 for the years ended December 31, 2015, 2014 and 2013, respectively are included in selling and marketing costs.

o. Accounting for share-based payments:

The Company accounts for share-based compensation in accordance with ASC 718, “Compensation—Stock Compensation.” ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations.

The Company recognizes compensation costs net of a forfeiture rate only for those shares expected to vest using the accelerated method over the requisite service period of the award, which is generally the option vesting term of four years. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company selected the Black-Scholes option-pricing model as the most appropriate fair value method for its option awards. The option-pricing model requires a number of assumptions, of which the most significant are the share price expected, expected volatility and the expected option term.

Prior to the IPO, the fair value of ordinary shares underlying the options was historically determined by management and the board of directors. Because there was no public market for the Company’s ordinary shares, the board of directors determined fair value of an ordinary share at the time of grant of the option by considering a number of objective and subjective factors including operating and financial performance, the lack of liquidity of share capital, general and industry specific economic outlook and valuations performed amongst other factors. For the period from January 1, 2015 through the IPO and for the two years ended December 31, 2014, the Company’s board of directors determined the fair value of ordinary shares for the reported periods, among other factors, based on valuations performed using the hybrid method, which is the hybrid between the probability weighted expected return method (PWERM) and the option pricing method, as the Company began to consider IPO activities commencing in January 2012.

The computation of expected volatility is based on actual historical share price volatility of comparable companies. Expected term of options granted is calculated using the average between the vesting period and the contractual term to the expected term of the options in effect at the time of grant. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The risk-free interest rate is based on the yield of U.S. treasury bonds with equivalent terms.

p. Fair value of financial instruments:

The carrying amounts of cash and cash equivalents, short-term investments, restricted cash, receivables and prepaid expenses, trade payables and other accounts payable and accrued expenses approximate their fair value due to the short-term maturity of such instruments. Based upon the borrowing terms and conditions currently available to the Company, the carrying values of the long-term loans approximate fair value.

The Company accounts for certain assets and liabilities at fair value under ASC 820, “Fair Value Measurements and Disclosures.” Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and

Level 3 - Unobservable inputs which are supported by little or no market activity.

The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instrument are categorized as Level 3.

 

q. Basic and diluted net loss per share:

The Company applies the two class method as required by ASC 260-10, “Earnings Per Share.” ASC 260-10 requires the income or loss per share for each class of shares (ordinary and preferred shares) to be calculated assuming 100% of the Company’s earnings are distributed as dividends to each class of shares based on their contractual rights. No dividends were declared or paid during the reported periods.

According to the provisions of ASC 260-10, the Company’s preferred shares are not participating securities in losses and, therefore, are not included in the computation of net loss per share.

Basic and diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per ordinary share was the same for each period presented as the inclusion of all potential ordinary shares (all preferred shares, options and warrants) outstanding was anti-dilutive.

 

r. Income taxes:

The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes.” ASC 740-10 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, to reduce deferred tax assets to their estimated realizable value, if needed.

The Company established reserves for uncertain tax positions based on the evaluation of whether or not the Company’s uncertain tax position is “more likely than not” to be sustained upon examination. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense.

s. Concentration of risks:

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, restricted cash and short-term investments.

Cash and cash equivalents and restricted cash are invested in major banks or financial institutions in Jersey, the United States, Israel, Luxemburg, Switzerland, Japan and Germany. Such investments may be in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk.

The Company has no off-balance sheet concentrations of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.

In 2015, two payers represented $5,595 and $2,512 or 17% and 8% of net revenues, respectively. In 2014, the same two payers represented $2,372 and $2,014 or 15% and 12% of net revenues, respectively and in 2013, the same two payers represented $2,056 and $1,160 or 18% and 10% of net revenues, respectively.

t. Severance pay:

The majority of the Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees covered by this section are entitled to monthly deposits at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s consolidated balance sheet.

With regard to employees in Israel that are not subject to Section 14, the Company’s liability for severance pay is calculated pursuant to Israeli Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s liability for these employees is fully provided for through monthly deposits to the employees’ pension and management insurance policies and an accrual. The value of these deposits is recorded as an asset on the Company’s consolidated balance sheet.

The carrying value of the deposited funds is based on the cash surrender value and includes profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law. Severance pay expense for the years ended December 31, 2015, 2014 and 2013 amounted to $356, $307 and $288, respectively.

u. Retirement and pension plans:

The Company has a 401(k) retirement savings plan for its U.S. employees. Each eligible employee may elect to contribute a portion of the employee’s compensation to the plan. The Company does not make any matching contributions to the plan.

The Company has a defined benefit plan with a pension fund for its Swiss employees, whereby the employee and the Company contribute to the pension fund. The Company accounts for its obligation, in accordance with ASC 715, "Compensation – Retirement Benefits" (see note 9).

The pension expense for the years ended December 31, 2015, 2014 and, 2013 was $404, $205 and $70, respectively.

v. Contingent liabilities:

The Company accounts for its contingent liabilities in accordance with ASC 450, “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015 and 2014, the Company was not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.

w. Other comprehensive loss:

The Company accounts for comprehensive loss in accordance with ASC 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive loss and its components. Comprehensive loss generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The accumulated other comprehensive loss, net of taxes, at December 31, 2015 relates to a pension liability.

x. Recently issued accounting pronouncements:

In November 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update for income taxes, which requires deferred tax assets and liabilities to be classified as noncurrent on the consolidated balance sheets. The new accounting guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods therein. Early adoption is permitted for all entities as of the beginning of interim or annual reporting periods. The Company early adopted the new guidance for the year ended December 31, 2015 and has applied the amendment on a prospective basis.

In April 2015, the FASB amended the existing accounting standards for imputation of interest. The amendments require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. The Company is required to adopt the guidance in the first quarter of fiscal 2017. Early adoption is permitted. The amendments should be applied retrospectively with the adjusted balance sheet of each individual period presented, in order to reflect the period-specific effects of applying the new guidance. The Company early adopted the new guidance for the year ended December 31, 2015.The adoption of this standard resulted in a reclassification of the debt issuance costs of $1.4 million for the year ended December 31, 2015, from Other long-term assets to Long-term loan, net of discount and issuance costs on the consolidated balance sheet. There was no impact to the consolidated statements of operations, comprehensive loss or cash flows.

In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date, with an option of applying the standard on the original effective date, which for the Company is the first quarter of fiscal 2017. In accordance with this deferral, the Company is required to adopt these amendments no later than the first quarter of fiscal 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is continuing to evaluate the impact of these amendments and the transition alternatives on its consolidated financial statements.

 

Cash and Cash Equivalents and Short Term Investments
Cash and Cash equivalents and Short-term investments

Note 3: Cash and Cash equivalents and Short-term investments

 

a.

Cash and cash equivalents:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Cash

 

$

75,421

 

 

$

47,614

 

Money market funds

 

 

44,002

 

 

 

-

 

U.S. treasury bills

 

 

-

 

 

 

9,999

 

Total cash and cash equivalents

 

$

119,423

 

 

$

57,613

 

 

 

b.

Short-term investments

The Company invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments in the amount of $150,001 and $44,999, as of December 31, 2015 and 2014, respectively and their estimated fair value as of December 31, 2015 and 2014 was $149,978 and $44,999, respectively.

 

Receivables and Prepaid Expenses
Receivables and Prepaid Expenses

Note 4: Receivables and prepaid expenses

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Advances and receivables from suppliers

 

$

7,323

 

 

$

4,262

 

Government authorities

 

 

1,955

 

 

 

501

 

Prepaid expenses

 

 

1,290

 

 

 

853

 

Others

 

 

231

 

 

 

95

 

 

 

$

10,799

 

 

$

5,711

 

 

Inventories
Inventories

Note 5: Inventories

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Raw materials

 

$

3,518

 

 

$

526

 

Work in process

 

 

4,618

 

 

 

1,280

 

Finished goods

 

 

5,458

 

 

 

1,640

 

 

 

$

13,594

 

 

$

3,446

 

 

Property and Equipment, Net
Property and Equipment, Net

Note 6: Property and equipment, net

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Cost:

 

 

 

 

 

 

 

 

Computers and laboratory equipment

 

$

6,734

 

 

$

3,745

 

Office furniture

 

 

1,245

 

 

 

995

 

Production equipment

 

 

857

 

 

 

-

 

Leasehold improvements

 

 

1,653

 

 

 

1,343

 

Total cost

 

$

10,489

 

 

$

6,083

 

Accumulated depreciation and amortization

 

 

(3,937

)

 

 

(2,351

)

Depreciated cost

 

$

6,552

 

 

$

3,732

 

 

Depreciation expense was $1,348, $886 and $520 for the years ended December 31, 2015, 2014 and 2013, respectively.

In 2015, the Company implemented a new ERP system and capitalized costs incurred related to the system according to FASB ASC 350-40, "Accounting for the costs of Computer Software Developed or Obtained for Internal Use". As of December 31, 2015, the Company capitalized an accumulated amount of $2,803. Amortization for the year ended December 31, 2015 was $250.

 

Field Equipment, Net
Field Equipment, Net

Note 7: Field equipment, net

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Field equipment

 

$

9,226

 

 

$

3,942

 

Less: accumulated depreciation

 

 

(3,197

)

 

 

(1,925

)

Field equipment, net

 

$

6,029

 

 

$

2,017

 

 

Depreciation expense was $1,555, $1,076 and 696 for the years ended December 31, 2015, 2014 and 2013, respectively.

Other Payables and Accrued Expenses
Other Payables and Accrued Expenses

Note 8: Other payables and accrued expenses

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Employees and payroll accruals

 

$

8,258

 

 

$

5,846

 

Taxes payable and others

 

 

2,850

 

 

 

693

 

Provision for settlement

 

 

-

 

 

 

1,000

 

Other

 

 

764

 

 

 

97

 

 

 

$

11,872

 

 

$

7,636

 

 

Employee benefit obligations
Employee Benefit Obligations

Note 9: Employee benefit obligations

The Company sponsors a defined benefit plan (the “Swiss Plan”) for all its employees in Switzerland for retirement benefits, as well as benefits on death or long-term disability. The liability in respect of the Swiss Plan is the projected benefit obligation calculated using the projected unit credit method. The projected benefit obligation as of December 31, 2015 represents the actuarial present value of the estimated future payments required to settle the obligation that is attributable to employee service rendered before that date. Swiss Plan assets are recorded at fair value.  Pension expense is presented in the payroll expenses in the various functions in which the employees are engaged. Actuarial gains and losses arising from differences between the actual and the expected return on the Swiss Plan assets are recognized in accumulated other comprehensive income (loss) and amortized over the requisite service period. The plan is part of a collective pension foundation run by an insurance company. The Company and the employees pay retirement contributions, which are defined as a percentage of the employees’ covered salaries. The foundation, in turn, has all its risks (disability, death, longevity) and future benefits managed and guaranteed by the insurance company. Interest is credited to the employees’ account at the minimum rate provided in the Swiss Plan, payment which is guaranteed by the insurance contract, which represents the Swiss Plan’s primary asset. The targeted allocation for these funds is as follows:

 

Asset Allocation by Category as of December 31, 2015:

 

 

 

 

Asset Category:

 

Asset

allocation (%)

 

Debt Securities

 

 

75

 

Real Estate

 

 

16

 

Equity Securities

 

 

3

 

Others

 

 

6

 

Total

 

 

100

 

 

The following table sets forth the Swiss Plan’s funded status and amounts recognized in the consolidated financial statements for the year ended December 31, 2015:

 

 

 

December 31,

 

 

 

2015

 

Change in Benefit Obligation

 

 

 

 

Projected benefit obligation at beginning of year

 

$

-

 

Interest cost

 

 

47

 

Company service cost

 

 

312

 

Employee contributions

 

 

189

 

Prior service cost

 

 

158

 

Benefits paid

 

 

4,023

 

Actuarial loss

 

 

1,494

 

Projected benefit obligation at end of year

 

$

6,223

 

Change in Plan Assets

 

 

 

 

Fair value of plan assets at beginning of year

 

$

-

 

Actual return on plan assets

 

 

(63

)

Employer contributions

 

 

284

 

Employee contributions

 

 

189

 

Benefits paid

 

 

4,023

 

Fair value of plan assets at end of year

 

$

4,433

 

 

 

 

 

 

Funded Status at End of year

 

 

 

 

Excess of obligation over assets

 

$

(1,790

)

 

 

 

 

 

Change in Accrued Benefit Liability

 

 

 

 

Accrued benefit asset/(liability) at beginning of year

 

$

-

 

Company contributions made during year

 

 

284

 

Net periodic benefit cost for year

 

 

(404

)

Net decrease in accumulated other comprehensive loss

 

 

(1,670

)

Accrued benefit liability at end of year

 

$

(1,790

)

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

Non - current plan assets

 

$

4,433

 

Non - current liability

 

 

6,223

 

Accrued benefit liability at end of year

 

$

(1,790

)

Projected Benefit Payments

 

 

 

 

2016

 

$

8

 

2017

 

 

13

 

2018

 

 

19

 

2019

 

 

25

 

2020

 

 

32

 

2021 - 2024

 

$

264

 

 

The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2015. The level of inputs used to measure fair value was Level 2.

 

 

 

Year ended

December 31,

 

 

 

2015

 

Net Periodic Benefit Cost

 

 

 

 

Service cost

 

$

312

 

Interest cost

 

 

47

 

Expected return on plan assets

 

 

(38

)

Amortization of prior service costs

 

 

14

 

Amortization of transition obligation

 

 

69

 

Total net periodic benefit cost

 

$

404

 

 

 

 

 

 

Weighted average assumptions:

 

 

 

 

Discount rate as of December 31

 

 

1.00%

 

Expected long-term rate of return on assets

 

 

1.00%

 

Rate of compensation increase

 

 

1.00%

 

Mortality and disability assumptions   (*)

 

BVG 2010 GT

 

 

(*) Mortality data used for actuarial calculation.

Long - Term Loan, Net of Discount and Issuance Costs
Long - Term Loan, Net of Discount and Issuance Costs

Note 10: Long-term loan, net of discount and issuance costs

In January 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with the lenders named therein (the “Lenders”) for a three-year term (the “Credit Facility”). Upon the closing of the Credit Agreement in January 2013, the Company withdrew the full $52,000 and issued the Lenders 975,644 warrants to purchase preferred H shares (converted to Ordinary shares as described in note 14a) at an exercise price of $18.77 per share. The Credit Facility accrued an 11% per year payment-in-kind interest charge, capitalized as additional principal quarterly, and a quarterly cash coupon of 3-month US$ LIBOR, subject to a LIBOR floor of 0.5% plus 1.5% per annum. The Company recorded the relative fair value of the warrants of $2,864 as shareholder’s equity and as a discount to the related loan outstanding. The total discount of $4,927 (including an original issue discount of $2,000) and additional deferred issuance costs of $500 in respect of the loan are amortized to interest expense over the three-year term using the effective interest method.

In December 2013, the Company repaid the entire outstanding Credit Facility of $58,000 of principal and accrued interest. Upon repayment of the Credit Facility, the discount and the deferred issuance costs were recorded immediately as interest expense. Financial expenses related to the Credit Facility for the year ended December 31, 2013 were $12,577.

In January 2015, the Company entered into a five-year term loan agreement (the “Loan Agreement”) with a lender to draw up to $100,000. In January 2015, the Company drew $25,000 from the lender. The Company may draw the remaining $75,000 at its option at any time through June 30, 2016. Interest on the outstanding loan is 10% annually, payable quarterly in arrears. In addition, there is a 1.5% funding fee payable on the amount drawn on the funding date, a 0.75% pay-down fee on all principal amount repayments to be paid on the date such payments of principal are made and a pre-payment fee of 3.0%, 2.0% or 1.0% if the Company prepays outstanding loan amounts prior to the first, second or third year, respectively, from the initial funding date. The entire outstanding principal loan is due on January 2020. The loan is secured by a first priority security interest in substantially all assets of the Company. The Loan Agreement sets forth certain affirmative and negative covenants with which the Company must comply on a quarterly basis commencing March 31, 2015 through the term of loan. As of December 31, 2015, the Company complies with its debt covenants.

The total discount of $491 and additional issuance costs of $1,739 are presented net of the loan and are amortized to interest expense over the five year term of the loan using the effective interest method.

Other Long-term Liabilities
Other Long-term Liabilities

Note 11: Other long-term liabilities

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Deferred rent liability

 

$

785

 

 

$

590

 

Leasehold improvements financing and other

   (see a and b below)

 

 

254

 

 

 

321

 

Unrecognized tax benefits (Note 13e)

 

 

1,565

 

 

 

308

 

Provision for settlement (Note 14c)

 

 

-

 

 

 

867

 

Other

 

 

131

 

 

 

-

 

 

 

$

2,735

 

 

$

2,086

 

 

a. In July 2013, the Company entered into a loan agreement with the landlord of its facility in Switzerland whereby the landlord will offer a loan of up to CHF 400 for the purpose of financing leasehold improvements in the facility. As of December 31, 2015 and 2014, the Company received  CHF 220 ($232) of this financing. The principal and interest is due in monthly payments from January 1, 2014 through December 31, 2018 and bears an annual interest of 5%.

b. In May 2013 and January 2014, the Company entered into an agreement with the landlord of one of its facilities in the U.S. and an agreement with a leasing company of $226 for the purpose of financing leasehold improvements in the facility and a lease of machinery, respectively. The loan and interest is due in monthly payments from June 1, 2013 through May 1, 2023 and bears an annual interest of 7%.

The above principal leasehold improvement financing repayments as of December 31, 2015 are as follows:

 

2016

 

$

63

 

2017

 

 

69

 

2018

 

 

73

 

2019

 

 

23

 

2020

 

 

24

 

Thereafter

 

 

65

 

 

 

 

317

 

Less: current portion of long-term loans

 

 

(63

)

Long-term loans, net of current portion

 

$

254

 

 

Commitments and Contingent Liabilities
Commitments and Contingent Liabilities

Note 12: Commitments and contingent liabilities

a. The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2023. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2018.

Future minimum lease payments under non-cancelable operating leases as of December 31, 2015, are as follows:

 

2016

$

2,320

 

2017

 

2,171

 

2018

 

1,152

 

2019

 

987

 

2020

 

591

 

Thereafter

 

1,261

 

 

$

8,482

 

 

Lease and rental expense for the years ended December 31, 2015, 2014 and 2013 was $2,194, $1,794, and $1,356, respectively.

As of December 31, 2015 and 2014 the Company pledged bank deposits of $133 and $130, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained guarantees by the bank for the fulfillment of the Company’s lease commitments of $283 and $281, respectively.

b. For an additional commitment, see note 14c.

Income Taxes
Income Taxes

Note 13: Income taxes

a. The provision (benefit) for income taxes is comprised of:

Loss before income taxes:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

United States (U.S.)

 

$

(55,087

)

 

$

(22,015

)

 

$

(15,698

)

Non-U.S.

 

 

(52,060

)

 

 

(58,285

)

 

 

(61,319

)

 

 

$

(107,147

)

 

$

(80,300

)

 

$

(77,017

)

 

Income tax expense (benefit):

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

891

 

 

$

65

 

 

$

(18

)

Non-U.S.

 

 

3,678

 

 

 

324

 

 

 

308

 

Total current

 

 

4,569

 

 

 

389

 

 

 

290

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Non-U.S.

 

 

(135

)

 

 

(7

)

 

 

63

 

Total deferred

 

$

(135

)

 

$

(7

)

 

$

63

 

 

 

$

4,434

 

 

$

382

 

 

$

353

 

 

b. The Company is a resident taxpayer in Jersey and as such is not generally subject to Jersey tax on remitted foreign earnings. Therefore, the Company has chosen to present the note below using the notional U.S. federal income tax rate of 35% when presenting the Company's reconciliation of the income tax provision.    A reconciliation of the provision for income taxes compared with the amounts at the notional federal statutory rate was:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Loss before income taxes

 

$

(107,147

)

 

$

(80,300

)

 

$

(77,017

)

Statutory tax rate

 

 

35

%

 

 

35

%

 

 

35

%

Notional U.S. federal income taxes at statutory rate

 

$

(37,501

)

 

$

(28,105

)

 

$

(26,956

)

Non-deductible expenses

 

 

2,621

 

 

 

1,242

 

 

 

1,411

 

Foreign tax rate differential

 

 

18,573

 

 

 

20,261

 

 

 

20,965

 

Change in valuation allowance

 

 

19,550

 

 

 

7,226

 

 

 

4,727

 

Unrecognized tax expense (benefit)

 

 

1,257

 

 

 

(242

)

 

 

206

 

Other

 

 

(66

)

 

 

-

 

 

 

-

 

Income tax expenses

 

$

4,434

 

 

$

382

 

 

$

353

 

Effective tax rate

 

 

-4.14

%

 

 

-0.48

%

 

 

-0.46

%

 

The Company's tax rate is affected by the tax rates in the jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction, jurisdictions with a statutory tax rate less than the U.S. tax rate of 35% and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance.

c. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

$

11,504

 

 

$

4,001

 

Revenue recognition (timing differences)

 

 

21,972

 

 

 

9,042

 

Net operating loss carryforwards

 

347

 

 

850

 

Other temporary differences

 

952

 

 

482

 

Total gross deferred tax assets

 

$

34,775

 

 

$

14,375

 

Less: valuation allowance

 

 

(33,476

)

 

 

(13,926

)

Total deferred tax assets

 

$

1,299

 

 

$

449

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

1,008

 

 

 

442

 

Total gross deferred tax liabilities

 

$

1,008

 

 

$

442

 

Net deferred tax assets

 

$

291

 

 

$

7

 

 

d. Carryforward loss:

As of December 31, 2015, the Company's Luxembourg subsidiary has $1.2 million of net operating loss carry forwards (NOLs) available for utilization in future years.  

e. Accounting for uncertainty in income taxes (“ASC 740”):

A reconciliation of the beginning and ending balances of uncertain tax benefits is as follows:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Balance at beginning of the year

 

$

308

 

 

$

549

 

Additions for tax positions related current year

 

 

848

 

 

 

79

 

Additions for tax positions related to prior years

 

 

409

 

 

 

-

 

Reduction related to lapse of applicable statute of limitations

 

 

-

 

 

 

(320

)

Balance at the end of the year

 

$

1,565

 

 

$

308

 

 

The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2015, 2014 and 2013, the Company accrued $26, $2 and $20, respectively, for interest and penalties expenses related to uncertain tax positions.

f. The Company's Israeli subsidiary is currently under an income tax audit for the tax years 2011 through 2013.  There are no other ongoing income tax audits.

Share Capital
Share Capital

Note 14: Share capital

Share capital is composed as follows:

 

 

 

Issued and outstanding

 

 

 

Number of shares

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Ordinary shares no par value

 

 

83,778,581

 

 

 

13,431,414

 

Series A Convertible Preferred shares no par value

 

 

-

 

 

 

4,177,235

 

Series B Convertible Preferred shares no par value

 

 

-

 

 

 

4,590,439

 

Series C Convertible Preferred shares no par value

 

 

-

 

 

 

2,261,666

 

Series D Convertible Preferred shares no par value

 

 

-

 

 

 

4,451,913

 

Series E Convertible Preferred shares no par value

 

 

-

 

 

 

7,790,861

 

Series F Convertible Preferred shares no par value

 

 

-

 

 

 

12,864,362

 

Series G Convertible Preferred shares no par value

 

 

-

 

 

 

5,106,269

 

Series H Convertible Preferred shares no par value

 

 

-

 

 

 

4,073,020

 

Series I Convertible Preferred shares no par value

 

 

-

 

 

 

13,360,252

 

Total

 

 

-

 

 

 

58,676,017

 

 

a. Investment rounds:

1) Series I Convertible Preferred shares:

In 2013, the Company sold to investors 13,360,252 Series I Convertible Preferred shares at a purchase price of $14.53 per share, for total consideration of $191,738, net of issuance expenses. Prior to conversion of the Series I Convertible Preferred shares into ordinary shares as a result of the IPO, Series I Convertible Preferred shares were senior to the other series of preferred shares on payment of the liquidation preference ($14.53 per share), but otherwise had similar participating preferred rights, dividend rights and voting rights to the other series of preferred shares.

2) Series J Preferred shares:

In June 2015, the Company sold to investors 4,068,500 Series J Convertible Preferred shares at a price per share of $23.33, for a total consideration of $94,599 (net of issuance expenses of $319). Prior to conversion of the Series J Convertible Preferred shares into ordinary shares as a result of the IPO, such shares

were senior to the other series of preferred shares on payment of the liquidation preference (equal to $23.33 per share), but otherwise had similar participating preferred rights, dividend rights and voting rights of the other series of preferred shares.

b. Rights, preferences and restrictions:

On October 7, 2015, the Company completed the IPO of its ordinary shares by issuing 7,876,195 ordinary shares (including exercise of overallotments) and raising net proceeds of $157,534, at which time the Series A through J Convertible Preferred shares converted into ordinary shares and ceased to exist.  The rights, preferences and restrictions of the Series A through J Convertible Preferred shares were, and the rights, preferences and restrictions of ordinary shares are, as follows:

Conversion — Each Convertible Preferred share was convertible into ordinary shares (i) at any time at the holder’s option or (ii) automatically upon a qualified initial public offering, which is defined in the Company’s articles of association in effect prior to the IPO as an offering in which the aggregate gross proceeds received by the Company are (1) at least $50,000 if the equity securities of the Company that are sold in such offering are listed or traded on the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotations (NASDAQ) or (2) at least $100,000 if the equity securities of the Company that are sold in such offering are listed or traded on any other public stock exchange. The IPO constituted a qualified initial public offering and, therefore, triggered conversion of the Series A through J Convertible Preferred shares.

Each of the Series A, B, C, D, E, F, G, H, I and J Convertible Preferred shares converted to ordinary shares on a 1-for-1 ratio, following adjustment for any recapitalizations, splits, ordinary share dividends and similar standard anti-dilution events.

Dividend rights — The holders of Series A through J Convertible Preferred shares were entitled to receive on a pari passu basis, prior and in preference to the declaration or payment of any dividend or distribution to the holders of ordinary shares on an as-converted basis when, as and if any dividend or distribution is declared by the Company’s board of directors in respect of ordinary shares, up to an amount equal to the applicable original issue price for such preferred shares.

Liquidation preference — The holders of Series A through J Convertible Preferred shares have a liquidation preference equal to $1.52, $1.09, $1.77, $1.80, $1.80, $2.23, $8.64, $13.5, $14.53, and $23.33 per share, respectively, plus any declared but unpaid dividends.

Preferred shareholders were entitled to their liquidation preferences based on their seniority. Series J Convertible Preferred shareholders would have been the first to receive their liquidation preferences and they would have been followed by the holders of Series I, H, G, F, E, D, C, B and A Convertible Preferred shares in turn.

Voting rights — Each holder of ordinary shares is and, prior to conversion into ordinary shares as a result of the IPO, each holder of Series A, B, C, D, E, F, G, H, I or J Convertible Preferred shares was, entitled to one vote.

c. Settlement agreement:

In February 2015, the Company entered into a settlement agreement (the “Settlement Agreement”) with a third party to resolve certain potential disputes regarding intellectual property developed by the Company’s founder and previously assigned to the Company. In exchange for a release of potential disputes from the third party, the Company paid $1,000 on execution of the Settlement Agreement and agreed to pay an additional $1,000 (the “Additional Payment”) at the earliest of (i) 18 months after signing of the Agreement, (ii) an IPO or (iii) the earlier of consummation of a merger/acquisition (“M&A”) or achievement of a Cumulative Net Sales milestone of $250,000 (as defined pursuant to the Agreement). The Company also agreed to pay an additional $5,500 on the earlier of (i) achievement of the Cumulative Net Sales milestone per above or (ii) consummation of a merger or acquisition transaction. In addition, the Company agreed to issue 1,005,210 ordinary shares (the “Settlement Shares”) to the third party and to grant to the third party options to purchase 1,005,210 ordinary shares (the “Settlement Options”) that are fully vested and at no cost. The Settlement Options terminate at the earlier of (i) 12 months subsequent to an IPO or (ii) immediately prior to a merger or acquisition transaction.

In February 2015, the Company contemporaneously entered into a Letter of Agreement (“Letter of Agreement”) with a Company founder and a related party of the founder (together, the “Founder”) pursuant to which the Founder indemnified the Company for compensation incurred to the third party by providing 2,010,420 ordinary shares which were redeemed and cancelled (the “Redeemed Shares”) in March 2015 to the Company at par value.  The Founder also may be obligated to pay an additional $2,000 in cash to the Company upon its request out of the net proceeds from the sale of any ordinary shares by the Founder in a private transaction or following the consummation of a qualified initial public offering (as defined above in Note 14a—Conversion) in an open market transaction if the closing price of the ordinary shares is at least 80% of the price per share for which the ordinary shares were sold in the IPO (after deducting underwriting discounts and commissions and offering expenses). In March 2015, the Company provided the Settlement Shares and Settlement Options to the third party. On October 7, 2015, the Company completed the IPO of its ordinary shares and the Additional Payment was paid in October 2015.

Accordingly, for the year ended December 31, 2014, in accordance with ASC 450, the Company recorded a provision for a net settlement expense of $1,867 in general and administrative expense, reflecting the present value of the cash obligation of $2,000 and the fair value of the Settlement Shares issued and Settlement Options granted to the third party, net of the fair value of the Redeemed Shares provided by the Founder as consideration, which amounted to nil as presented in the statement of shareholder’s equity, in connection with the indemnification provided and the Letter of Agreement.

d. Warrants:

As part of the Series B, C, D and E Convertible Preferred share investment agreements, the investors received warrants to purchase ordinary shares. The Company accounted for these warrants as equity instruments based on the guidance of ASC 815, “Derivatives and Hedging”, ASC 480-10, “Distinguishing Liabilities from Equity”, its related FASB staff positions, ASC 815-40 “Contracts in Entity’s Own Stock” and the AICPA Technical Practice Aid for accounting for preferred shares and warrants, including the roadmap for accounting for freestanding financial instruments indexed to, and potentially settled in, a company’s own stock.

Significant terms of the warrants to purchase ordinary shares that were issued to purchasers of the Series B, C, D and E Convertible Preferred shares are as follows as of December 31, 2015 and 2014:

 

 

 

Warrants for ordinary shares

 

 

Exercise price

per share

 

Expiration date

 

2015

 

 

2014

 

 

 

 

 

October 11, 2015 (1)

 

 

-

 

 

 

565,411

 

 

 

3.54

 

May 8, 2016 (1)

 

 

1,108,050

 

 

 

1,112,983

 

 

 

3.59

 

July 31, 2017

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

January 22, 2018

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

July 21, 2018

 

 

834,355

 

 

 

834,355

 

 

 

3.59

 

 

 

 

3,055,761

 

 

 

3,626,105

 

 

 

 

 

 

 

(1)

Warrants to purchase 570,344 ordinary shares were exercised in 2015, resulting in the issuance of 570,344 ordinary shares.

Pursuant to the Credit Agreement (see Note 10), the Company issued the Lenders 975,644 warrants to purchase Series H Convertible Preferred shares at an exercise price of $18.77 per share. The warrants were exercised on a cashless basis in January 2016.

e. Share option plans:

In 2003, the Company and its shareholders approved and adopted the 2003 Share Option Plan (the “2003 Plan”), which provided for the grant of options to the Company’s officers, directors, employees and advisors. The options granted generally have a four-year vesting period and expire ten years after the date of grant. Since March 2013, when the 2003 Plan expired, the Company has made grants pursuant to the 2013 Share Option Plan (as described below) and, following completion of the IPO in October 2015, all future equity grants will be made under the 2015 Omnibus Incentive Plan (as described below); however, any awards granted under the 2003 Plan that were outstanding as of the IPO continue to be subject to the terms and conditions of the 2003 Plan and the applicable option award agreement.

In 2013, the Company and its shareholders approved and adopted the 2013 Equity Incentive Share Option Plan (the “2013 Plan”), which provided for the grant of options to the Company’s officers, directors, advisors, management and other key employees. The options granted generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2013 Plan that are cancelled or forfeited before expiration become available for future grant.  

In February and March 2015, the Company’s board of directors and its shareholders approved an increase in the number of ordinary shares reserved for grant of options pursuant to the 2013 Plan by 2,956,500 ordinary shares to 13,198,224 ordinary shares.  Following completion of the IPO in October 2015, all future equity grants will be made under the 2015 Omnibus Incentive Plan (as described below); accordingly, as of December 31, 2015, there are  no options available for future grants under the 2013 Plan. Any awards granted under the 2013 Plan that were outstanding as of the IPO continue to be subject to the terms and conditions of the 2013 Plan and the applicable option award agreement.

In August 2015, the Company’s board of directors adopted and established the 2015 Omnibus Incentive Plan (the “2015 Plan”). The Company’s shareholders approved the 2015 Plan in September 2015. 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 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.

On December 31, 2015, in accordance with the terms of the 2015 Plan, the number of shares available for issuance under the 2015 Plan automatically increased by 4% of the Company’s outstanding ordinary shares as of December 30, 2015.  As a result, the number of shares available for issuance under the 2015 Plan increased from 12,900,000 shares to 16,251,143 shares. As of December 31, 2015, 14,947,667 ordinary shares are available for grant under the 2015 Plan.

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

 

 

 

Year ended December 31,

 

 

 

2015

 

2014

 

 

2013

 

Expected term (years)

 

6.25

 

 

6.25

 

 

 

6.25

 

Expected volatility

 

59%-65.8%

 

73.1%-75.3%

 

 

70.4%-75.9%

 

Risk-free interest rate

 

1.74%-2.05%

 

1.9%-2.3%

 

 

1.4%-2.0%

 

Dividend yield

 

0%

 

0%

 

 

0%

 

 

A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2015 and changes during the year ended on that date is presented below:

 

 

 

Year ended December 31, 2015

 

 

 

Number of

options

 

 

Weighted

average

exercise

price

 

 

Aggregate

intrinsic

value

 

Outstanding at beginning of year

 

 

7,426,159

 

 

 

3.98

 

 

 

 

 

Granted

 

 

3,108,393

 

 

 

18.01

 

 

 

 

 

Exercised

 

 

(183,911

)

 

 

3.08

 

 

 

 

 

Forfeited and cancelled

 

 

(215,812

)

 

 

8.81

 

 

 

 

 

Outstanding at end of year

 

 

10,134,829

 

 

 

8.20

 

 

 

144,776

 

Exercisable options

 

 

5,521,406

 

 

 

3.04

 

 

 

106,684

 

Vested and expected to vest

 

 

10,007,130

 

 

 

8.11

 

 

 

143,835

 

 

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2015, 2014 and 2013, was comprised as follows:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Cost of revenues

 

$

174

 

 

$

32

 

 

$

52

 

Research, development and clinical trials

 

 

2,529

 

 

 

820

 

 

 

1,137

 

Sales and marketing

 

 

2,496

 

 

 

1,104

 

 

 

791

 

General and administrative

 

 

6,661

 

 

 

2,668

 

 

 

3,140

 

Total share-based compensation expense

 

$

11,860

 

 

$

4,624

 

 

$

5,120

 

 

As of December 31, 2015, there were unrecognized compensation costs of $25,008, which are expected to be recognized over a weighted average period of approximately 3.39 years.

The weighted average grant date fair values of the Company’s options granted during the years ended December 31, 2015, 2014 and 2013 were $10.64, $5.08 and $4.59 per share, respectively. The weighted average grant date fair values of the Company’s unvested options for the years ended December 31, 2015,2014 and 2013 were $8.66, $4.26 and $3.42 per share, respectively, and the unvested options for the years ended December 31, 2015,2014 and 2013 were 4,613,423, 2,934,974 and 3,125,543, respectively.

The weighted average grant date fair values of the Company’s vested options during the years ended December 31, 2015, 2014 and 2013 were $3.66, $2.89 and $2.26, respectively, and the vested options for the years ended December 31, 2015,2014 and 2013 were 1,235,880, 1,166,974 and 1,030,933, respectively. The weighted average grant date fair values of the Company’s options forfeited and cancelled during the years ended December 31, 2015, 2014 and 2013 were $ 5.73, $3.59 and $1.84, respectively.

The aggregate intrinsic values for the options exercised during the years ended December 31, 2015, 2014 and 2013 were $3,546, $3,339 and $3,431, respectively. The aggregate intrinsic value is calculated as the difference between the per share exercise price and the deemed fair value of the Company’s ordinary shares for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. The Company deemed the fair value of the Company’s ordinary shares to be $22.36, $7.73 and $7.28 per share as of December 31, 2015, 2014, and 2013, respectively.

 

 

The options outstanding as of December 31, 2015 are as follows:

 

Exercise price

 

 

Number

of options

outstanding

as of

December 31, 2015

 

 

Weighted

average

remaining

contractual

term

 

 

Number

of options

exercisable

as of

December 31, 2015

 

 

Weighted

average

remaining

contractual term

 

$

 

 

 

 

 

 

(years)

 

 

 

 

 

 

(years)

 

 

0.17

 

 

 

1,402,757

 

 

 

0.71

 

 

 

1,402,757

 

 

 

0.71

 

 

0.23

 

 

 

440,531

 

 

 

3.42

 

 

 

440,531

 

 

 

3.42

 

 

0.38

 

 

 

488,331

 

 

 

4.78

 

 

 

488,331

 

 

 

4.78

 

 

3.44

 

 

 

1,779,072

 

 

 

5.88

 

 

 

1,728,710

 

 

 

5.89

 

 

6.72

 

 

 

850,401

 

 

 

6.67

 

 

 

642,321

 

 

 

6.66

 

 

6.83

 

 

 

92,227

 

 

 

6.95

 

 

 

69,308

 

 

 

6.95

 

 

7.03

 

 

 

613,174

 

 

 

7.14

 

 

 

307,309

 

 

 

7.14

 

 

7.04

 

 

 

135,992

 

 

 

7.46

 

 

 

67,982

 

 

 

7.46

 

 

7.28

 

 

 

167,921

 

 

 

7.65

 

 

 

83,946

 

 

 

7.65

 

 

7.48

 

 

 

504,365

 

 

 

8.14

 

 

 

130,509

 

 

 

8.13

 

 

7.52

 

 

 

110,560

 

 

 

8.24

 

 

 

29,925

 

 

 

8.23

 

 

7.58

 

 

 

52,032

 

 

 

8.49

 

 

 

13,006

 

 

 

8.49

 

 

7.73

 

 

 

431,053

 

 

 

8.77

 

 

 

107,755

 

 

 

8.77

 

 

14.37

 

 

 

1,616,011

 

 

 

9.16

 

 

 

9,016

 

 

 

8.84

 

 

15.60

 

 

 

146,926

 

 

 

9.32

 

 

 

-

 

 

 

-

 

 

20.20

 

 

 

140,466

 

 

 

9.81

 

 

 

-

 

 

 

-

 

 

22.00

 

 

 

913,210

 

 

 

9.76

 

 

 

-

 

 

 

-

 

 

27.50

 

 

 

249,800

 

 

 

9.97

 

 

 

-

 

 

 

-

 

 

 

 

 

 

10,134,829

 

 

 

6.56

 

 

 

5,521,406

 

 

 

4.63

 

 

In August, 2015, the Company’s board of directors adopted an employee share purchase plan (“ESPP”) subject to shareholder approval, which was obtained in September, 2015. The Company adopted the 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. The ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the 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 at a future date determined by the compensation committee, in its sole discretion. As of December 31, 2015 no shares have been offered under the ESPP.

Under the ESPP, initially an aggregate of 830,000 ordinary shares could be purchased by eligible employees who become participants in the ESPP; which amount shall be automatically increased on December 31 of each year during the term of the ESPP to an amount equal to 1% of the total number of ordinary shares outstanding on December 30 of such year unless otherwise determined by the board of directors.  On December 31, 2015, the number of shares available for issuance under the ESPP increased from 837,785 shares to 1,667,785 shares. As of December 31, 2015, 1,667,785 ordinary shares are available for grant under the ESPP.

Financial Expenses, Net
Financial Expenses, Net

Note 15: Financial expenses, net

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Financial expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(2,373

)

 

$

(41

)

 

$

(7,158

)

Amortization of credit facility costs

 

 

(329

)

 

 

-

 

 

 

(5,432

)

Foreign currency transaction losses

 

 

(356

)

 

 

(104

)

 

 

(157

)

Others

 

 

(177

)

 

 

(142

)

 

 

(78

)

 

 

$

(3,235

)

 

$

(287

)

 

$

(12,825

)

Financial income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

84

 

 

$

143

 

 

$

267

 

Total financial expenses, net

 

$

(3,151

)

 

$

(144

)

 

$

(12,558

)

 

Basic and Diluted Net Loss Per Share
Basic and Diluted Net Loss Per Share

Note 16: Basic and diluted net loss per share

The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Net loss attributable to ordinary shares as reported

 

$

(111,581

)

 

$

(80,682

)

 

$

(77,370

)

Shares used in computing net loss per ordinary

   share, basic and diluted

 

 

30,401,603

 

 

 

12,490,017

 

 

 

11,498,392

 

Net loss per ordinary share, basic and diluted

 

$

(3.67

)

 

$

(6.46

)

 

$

(6.73

)

 

For the years ended December 31, 2015, 2014 and 2013, all outstanding preferred shares, options and warrants have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive.

Subcontractor
Subcontractor

Note 17: Subcontractor

The Company is dependent upon sole source suppliers for certain key components used in its delivery systems. The Company’s management believes that in most cases other suppliers could provide similar components at comparable terms. A change of suppliers which requires FDA or other regulatory approval, however, could cause a material delay in manufacturing and a possible loss of sales, which could adversely affect the Company’s operating results and financial position.

Supplemental Information
Supplemental Information

Note 18: Supplemental information

The following table presents long-lived assets by location:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

United States

 

 

6,600

 

 

 

3,468

 

Switzerland

 

 

4,204

 

 

 

1,259

 

Israel

 

$

1,376

 

 

$

1,009

 

Others

 

 

401

 

 

 

13

 

 

 

$

12,581

 

 

$

5,749

 

 

The Company’s net revenues by geographic region, based on the patient’s location are summarized as follows:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

United States

 

 

30,961

 

 

 

14,951

 

 

 

10,330

 

Europe, Israel and Japan

 

 

2,126

 

 

$

539

 

 

$

29

 

 

 

$

33,087

 

 

$

15,490

 

 

$

10,359

 

 

Significant Accounting Policies (Policies)

a. Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, tax liabilities, useful-life of field equipment and share-based compensation costs. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates.

b. Financial statements in U.S. dollars:

The accompanying financial statements have been prepared in U.S. dollars in thousands.

The Company finances its operations in U.S. dollars and a substantial portion of its costs and revenues from its primary markets is incurred in U.S. dollars. As such, the Company’s management believes that the dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar.

Transactions and balances denominated in U.S. dollars are presented at their original amounts. Monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standards Codification No. 830-10, “Foreign Currency Matters.” All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate.

c. Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

d. Cash equivalents:

Cash equivalents are short-term, highly liquid investments that are readily convertible into cash with an original maturity of three months or less at the date acquired.

e. Short-term investments and restricted cash:

1. Short-term investments:

The Company accounts for investments in debt securities in accordance with ASC 320, “Investments-Debt and Equity Securities.” Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. For the years ended December 31, 2015 and 2014, all securities are classified as held-to-maturity since the Company has the intent and ability to hold the securities to maturity and, accordingly, debt securities are stated at amortized cost.

The amortized cost of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity and any other than temporary impairment losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate.

For the three years ended December 31, 2015, no impairment losses other than temporary impairment losses have been identified.

2. Restricted cash:

The Company has restricted cash  used as security for bank guarantees related to the use of Company credit cards.

f. Inventories:

Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. The Company regularly evaluates the ability to realize the value of inventory. If actual demand for the Company’s delivery systems deteriorates, or market conditions are less favorable than those projected, inventory write-offs may be required.

There were no inventory write-offs for the years ended December 31, 2015, 2014 and 2013.

g. Property and equipment:

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following rates:

 

 

 

%

Computers and laboratory equipment

 

15 - 33

Office furniture

 

6 - 33

Production equipment

 

20

Leasehold improvements

 

Over the shorter of the term of the lease or its useful life

 

i. Impairment of long-lived assets:

The Company’s long-lived assets are reviewed for impairment in accordance with ASC 360-10, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During the three years ended December 31, 2015, no impairment losses have been identified.

j. Other long-term assets:

Long term lease deposits in respect of office rent and vehicles under operating leases and restricted deposits are presented in other long-term assets.

k. Revenue recognition:

The TTFields delivery system (“System”) for GBM, Optune, is comprised of two main components: (1) an Electric Field Generator (the “device”) and (2) Transducer Arrays and related accessories that are disposable supplies to the device (“disposables”). Title is retained by the Company for the device and the patient is provided replacement disposables and technical support for the device during the rental period. The device and disposables are always supplied and functioning together and are not sold on a standalone basis.

Revenues are recognized when persuasive evidence of an arrangement exists, delivery of the system has occurred, the price is fixed or determinable and collectability is reasonably assured. The evidence of an arrangement generally consists of a prescription, a patient service agreement and the verification of eligibility and insurance with the patient’s third-party insurance company (“payer”). The Company generally bills third-party payers a monthly fee for use of the System by patients. As such, the Company takes assignment of benefits and risk of collection from the third-party payer. Patients have out-of-pocket costs for the amount not covered by their payer and the Company bills the patient directly for the amounts of their co-pays and deductible, subject to the Company’s patient assistance programs.

For the reported periods, all revenues are recognized when cash is collected assuming that all other revenue recognition criteria have been met, as the price is not fixed or determinable and the collectability cannot be reasonably assured. The price is not fixed or determinable since the Company does not have sufficient history with payers to reliably estimate their individual payment patterns and as such cannot reliably estimate the amount that would be ultimately collected. Once sufficient history is established and the Company can reliably estimate the amounts that would be ultimately collected per payer/payer group and the above criteria are met, the Company will recognize revenues from the use of the System on an accrual basis ratably over the lease term.

Revenues are presented net of indirect taxes, which include excise tax of $1,457 , $1,010, and $584 for the years ended December 31, 2015, 2014 and 2013, respectively, and other indirect tax of $818, $266 and $300 for the years ended December 31, 2015, 2014 and 2013, respectively.

l. Charitable care:

The Company provides Optune to patients who meet certain criteria under its charitable care policy without charge.  Because the Company does not pursue collection of amounts determined to qualify as charity, they are not reported as revenue. The Company's costs of care provided under charitable care were: $1,376, $836 and $254 for the years ended December 31, 2015, 2014 and 2013, respectively. These estimates were determined by applying a ratio of costs to gross charges multiplied by the Company's gross charitable care charges.

m. Research, development and clinical trials:

Research, development and clinical trials, including direct and allocated expenses are expensed as incurred.

n. Shipping and handling costs:

The Company does not bill its customers for shipping and handling costs associated with shipping its delivery systems to its customers. These direct shipping and handling costs of $1,385, $553 and $431 for the years ended December 31, 2015, 2014 and 2013, respectively are included in selling and marketing costs.

o. Accounting for share-based payments:

The Company accounts for share-based compensation in accordance with ASC 718, “Compensation—Stock Compensation.” ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations.

The Company recognizes compensation costs net of a forfeiture rate only for those shares expected to vest using the accelerated method over the requisite service period of the award, which is generally the option vesting term of four years. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company selected the Black-Scholes option-pricing model as the most appropriate fair value method for its option awards. The option-pricing model requires a number of assumptions, of which the most significant are the share price expected, expected volatility and the expected option term.

Prior to the IPO, the fair value of ordinary shares underlying the options was historically determined by management and the board of directors. Because there was no public market for the Company’s ordinary shares, the board of directors determined fair value of an ordinary share at the time of grant of the option by considering a number of objective and subjective factors including operating and financial performance, the lack of liquidity of share capital, general and industry specific economic outlook and valuations performed amongst other factors. For the period from January 1, 2015 through the IPO and for the two years ended December 31, 2014, the Company’s board of directors determined the fair value of ordinary shares for the reported periods, among other factors, based on valuations performed using the hybrid method, which is the hybrid between the probability weighted expected return method (PWERM) and the option pricing method, as the Company began to consider IPO activities commencing in January 2012.

The computation of expected volatility is based on actual historical share price volatility of comparable companies. Expected term of options granted is calculated using the average between the vesting period and the contractual term to the expected term of the options in effect at the time of grant. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The risk-free interest rate is based on the yield of U.S. treasury bonds with equivalent terms.

p. Fair value of financial instruments:

The carrying amounts of cash and cash equivalents, short-term investments, restricted cash, receivables and prepaid expenses, trade payables and other accounts payable and accrued expenses approximate their fair value due to the short-term maturity of such instruments. Based upon the borrowing terms and conditions currently available to the Company, the carrying values of the long-term loans approximate fair value.

The Company accounts for certain assets and liabilities at fair value under ASC 820, “Fair Value Measurements and Disclosures.” Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and

Level 3 - Unobservable inputs which are supported by little or no market activity.

The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instrument are categorized as Level 3.

 

q. Basic and diluted net loss per share:

The Company applies the two class method as required by ASC 260-10, “Earnings Per Share.” ASC 260-10 requires the income or loss per share for each class of shares (ordinary and preferred shares) to be calculated assuming 100% of the Company’s earnings are distributed as dividends to each class of shares based on their contractual rights. No dividends were declared or paid during the reported periods.

According to the provisions of ASC 260-10, the Company’s preferred shares are not participating securities in losses and, therefore, are not included in the computation of net loss per share.

Basic and diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per ordinary share was the same for each period presented as the inclusion of all potential ordinary shares (all preferred shares, options and warrants) outstanding was anti-dilutive.

 

r. Income taxes:

The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes.” ASC 740-10 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, to reduce deferred tax assets to their estimated realizable value, if needed.

The Company established reserves for uncertain tax positions based on the evaluation of whether or not the Company’s uncertain tax position is “more likely than not” to be sustained upon examination. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense.

s. Concentration of risks:

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, restricted cash and short-term investments.

Cash and cash equivalents and restricted cash are invested in major banks or financial institutions in Jersey, the United States, Israel, Luxemburg, Switzerland, Japan and Germany. Such investments may be in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk.

The Company has no off-balance sheet concentrations of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.

In 2015, two payers represented $5,595 and $2,512 or 17% and 8% of net revenues, respectively. In 2014, the same two payers represented $2,372 and $2,014 or 15% and 12% of net revenues, respectively and in 2013, the same two payers represented $2,056 and $1,160 or 18% and 10% of net revenues, respectively.

t. Severance pay:

The majority of the Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees covered by this section are entitled to monthly deposits at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s consolidated balance sheet.

With regard to employees in Israel that are not subject to Section 14, the Company’s liability for severance pay is calculated pursuant to Israeli Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s liability for these employees is fully provided for through monthly deposits to the employees’ pension and management insurance policies and an accrual. The value of these deposits is recorded as an asset on the Company’s consolidated balance sheet.

The carrying value of the deposited funds is based on the cash surrender value and includes profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law. Severance pay expense for the years ended December 31, 2015, 2014 and 2013 amounted to $356, $307 and $288, respectively.

u. Retirement and pension plans:

The Company has a 401(k) retirement savings plan for its U.S. employees. Each eligible employee may elect to contribute a portion of the employee’s compensation to the plan. The Company does not make any matching contributions to the plan.

The Company has a defined benefit plan with a pension fund for its Swiss employees, whereby the employee and the Company contribute to the pension fund. The Company accounts for its obligation, in accordance with ASC 715, "Compensation – Retirement Benefits" (see note 9).

The pension expense for the years ended December 31, 2015, 2014 and, 2013 was $404, $205 and $70, respectively.

v. Contingent liabilities:

The Company accounts for its contingent liabilities in accordance with ASC 450, “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015 and 2014, the Company was not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.

w. Other comprehensive loss:

The Company accounts for comprehensive loss in accordance with ASC 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive loss and its components. Comprehensive loss generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The accumulated other comprehensive loss, net of taxes, at December 31, 2015 relates to a pension liability.

x. Recently issued accounting pronouncements:

In November 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update for income taxes, which requires deferred tax assets and liabilities to be classified as noncurrent on the consolidated balance sheets. The new accounting guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods therein. Early adoption is permitted for all entities as of the beginning of interim or annual reporting periods. The Company early adopted the new guidance for the year ended December 31, 2015 and has applied the amendment on a prospective basis.

In April 2015, the FASB amended the existing accounting standards for imputation of interest. The amendments require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. The Company is required to adopt the guidance in the first quarter of fiscal 2017. Early adoption is permitted. The amendments should be applied retrospectively with the adjusted balance sheet of each individual period presented, in order to reflect the period-specific effects of applying the new guidance. The Company early adopted the new guidance for the year ended December 31, 2015.The adoption of this standard resulted in a reclassification of the debt issuance costs of $1.4 million for the year ended December 31, 2015, from Other long-term assets to Long-term loan, net of discount and issuance costs on the consolidated balance sheet. There was no impact to the consolidated statements of operations, comprehensive loss or cash flows.

In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date, with an option of applying the standard on the original effective date, which for the Company is the first quarter of fiscal 2017. In accordance with this deferral, the Company is required to adopt these amendments no later than the first quarter of fiscal 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is continuing to evaluate the impact of these amendments and the transition alternatives on its consolidated financial statements.

h. Field equipment under operating leases:

Field equipment is stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the field equipment which was determined to be two years. Field equipment consists of equipment being utilized under rental agreements accounted for in accordance with ASC 840 on a monthly basis as an operating lease, as well as “service pool” equipment. Service pool equipment is equipment owned and maintained by the Company that is swapped for equipment that needs repairs or maintenance by the Company while being rented by a patient. The Company records a provision for any excess, lost or damaged equipment when warranted based on an assessment of the equipment. Write-downs for equipment are included in cost of revenues. During the years ended December 31, 2015, 2014 and 2013, write downs for $36, $12 and $19, respectively, had been identified.

Significant Accounting Policies (Tables)
Property and Equipment at Cost Using Straight-Line Method

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following rates:

 

 

 

%

Computers and laboratory equipment

 

15 - 33

Office furniture

 

6 - 33

Production equipment

 

20

Leasehold improvements

 

Over the shorter of the term of the lease or its useful life

 

Cash and Cash Equivalents and Short Term Investments (Tables)
Summary of Cash and Cash Equivalents

 

a.

Cash and cash equivalents:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Cash

 

$

75,421

 

 

$

47,614

 

Money market funds

 

 

44,002

 

 

 

-

 

U.S. treasury bills

 

 

-

 

 

 

9,999

 

Total cash and cash equivalents

 

$

119,423

 

 

$

57,613

 

 

Receivables and Prepaid Expenses (Tables)
Schedule of Receivables and Prepaid Expenses

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Advances and receivables from suppliers

 

$

7,323

 

 

$

4,262

 

Government authorities

 

 

1,955

 

 

 

501

 

Prepaid expenses

 

 

1,290

 

 

 

853

 

Others

 

 

231

 

 

 

95

 

 

 

$

10,799

 

 

$

5,711

 

 

Inventories (Tables)
Schedule of Inventories

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Raw materials

 

$

3,518

 

 

$

526

 

Work in process

 

 

4,618

 

 

 

1,280

 

Finished goods

 

 

5,458

 

 

 

1,640

 

 

 

$

13,594

 

 

$

3,446

 

 

Property and Equipment, Net (Tables)
Schedule of Property and Equipment Net

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Cost:

 

 

 

 

 

 

 

 

Computers and laboratory equipment

 

$

6,734

 

 

$

3,745

 

Office furniture

 

 

1,245

 

 

 

995

 

Production equipment

 

 

857

 

 

 

-

 

Leasehold improvements

 

 

1,653

 

 

 

1,343

 

Total cost

 

$

10,489

 

 

$

6,083

 

Accumulated depreciation and amortization

 

 

(3,937

)

 

 

(2,351

)

Depreciated cost

 

$

6,552

 

 

$

3,732

 

 

Field Equipment, Net (Tables)
Schedule of Field Equipment, Net

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Field equipment

 

$

9,226

 

 

$

3,942

 

Less: accumulated depreciation

 

 

(3,197

)

 

 

(1,925

)

Field equipment, net

 

$

6,029

 

 

$

2,017

 

 

Other Payables and Accrued Expenses (Tables)
Schedule of Other Payables and Accrued Expenses

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Employees and payroll accruals

 

$

8,258

 

 

$

5,846

 

Taxes payable and others

 

 

2,850

 

 

 

693

 

Provision for settlement

 

 

-

 

 

 

1,000

 

Other

 

 

764

 

 

 

97

 

 

 

$

11,872

 

 

$

7,636

 

 

Employee benefit obligations (Tables)

The targeted allocation for these funds is as follows:

 

Asset Allocation by Category as of December 31, 2015:

 

 

 

 

Asset Category:

 

Asset

allocation (%)

 

Debt Securities

 

 

75

 

Real Estate

 

 

16

 

Equity Securities

 

 

3

 

Others

 

 

6

 

Total

 

 

100

 

 

The following table sets forth the Swiss Plan’s funded status and amounts recognized in the consolidated financial statements for the year ended December 31, 2015:

 

 

 

December 31,

 

 

 

2015

 

Change in Benefit Obligation

 

 

 

 

Projected benefit obligation at beginning of year

 

$

-

 

Interest cost

 

 

47

 

Company service cost

 

 

312

 

Employee contributions

 

 

189

 

Prior service cost

 

 

158

 

Benefits paid

 

 

4,023

 

Actuarial loss

 

 

1,494

 

Projected benefit obligation at end of year

 

$

6,223

 

Change in Plan Assets

 

 

 

 

Fair value of plan assets at beginning of year

 

$

-

 

Actual return on plan assets

 

 

(63

)

Employer contributions

 

 

284

 

Employee contributions

 

 

189

 

Benefits paid

 

 

4,023

 

Fair value of plan assets at end of year

 

$

4,433

 

 

 

 

 

 

Funded Status at End of year

 

 

 

 

Excess of obligation over assets

 

$

(1,790

)

 

 

 

 

 

Change in Accrued Benefit Liability

 

 

 

 

Accrued benefit asset/(liability) at beginning of year

 

$

-

 

Company contributions made during year

 

 

284

 

Net periodic benefit cost for year

 

 

(404

)

Net decrease in accumulated other comprehensive loss

 

 

(1,670

)

Accrued benefit liability at end of year

 

$

(1,790

)

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

Non - current plan assets

 

$

4,433

 

Non - current liability

 

 

6,223

 

Accrued benefit liability at end of year

 

$

(1,790

)

Projected Benefit Payments

 

 

 

 

2016

 

$

8

 

2017

 

 

13

 

2018

 

 

19

 

2019

 

 

25

 

2020

 

 

32

 

2021 - 2024

 

$

264

 

 

The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2015. The level of inputs used to measure fair value was Level 2.

 

 

 

Year ended

December 31,

 

 

 

2015

 

Net Periodic Benefit Cost

 

 

 

 

Service cost

 

$

312

 

Interest cost

 

 

47

 

Expected return on plan assets

 

 

(38

)

Amortization of prior service costs

 

 

14

 

Amortization of transition obligation

 

 

69

 

Total net periodic benefit cost

 

$

404

 

 

 

 

 

 

Weighted average assumptions:

 

 

 

 

Discount rate as of December 31

 

 

1.00%

 

Expected long-term rate of return on assets

 

 

1.00%

 

Rate of compensation increase

 

 

1.00%

 

Mortality and disability assumptions   (*)

 

BVG 2010 GT

 

 

(*) Mortality data used for actuarial calculation.

Other Long-term Liabilities (Tables)

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Deferred rent liability

 

$

785

 

 

$

590

 

Leasehold improvements financing and other

   (see a and b below)

 

 

254

 

 

 

321

 

Unrecognized tax benefits (Note 13e)

 

 

1,565

 

 

 

308

 

Provision for settlement (Note 14c)

 

 

-

 

 

 

867

 

Other

 

 

131

 

 

 

-

 

 

 

$

2,735

 

 

$

2,086

 

 

The above principal leasehold improvement financing repayments as of December 31, 2015 are as follows:

 

2016

 

$

63

 

2017

 

 

69

 

2018

 

 

73

 

2019

 

 

23

 

2020

 

 

24

 

Thereafter

 

 

65

 

 

 

 

317

 

Less: current portion of long-term loans

 

 

(63

)

Long-term loans, net of current portion

 

$

254

 

 

Commitments and Contingent Liabilities (Tables)
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2015, are as follows:

 

2016

$

2,320

 

2017

 

2,171

 

2018

 

1,152

 

2019

 

987

 

2020

 

591

 

Thereafter

 

1,261

 

 

$

8,482

 

 

Income Taxes (Tables)

a. The provision (benefit) for income taxes is comprised of:

Loss before income taxes:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

United States (U.S.)

 

$

(55,087

)

 

$

(22,015

)

 

$

(15,698

)

Non-U.S.

 

 

(52,060

)

 

 

(58,285

)

 

 

(61,319

)

 

 

$

(107,147

)

 

$

(80,300

)

 

$

(77,017

)

 

a. The provision (benefit) for income taxes is comprised of:

Income tax expense (benefit):

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

891

 

 

$

65

 

 

$

(18

)

Non-U.S.

 

 

3,678

 

 

 

324

 

 

 

308

 

Total current

 

 

4,569

 

 

 

389

 

 

 

290

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Non-U.S.

 

 

(135

)

 

 

(7

)

 

 

63

 

Total deferred

 

$

(135

)

 

$

(7

)

 

$

63

 

 

 

$

4,434

 

 

$

382

 

 

$

353

 

 

A reconciliation of the provision for income taxes compared with the amounts at the notional federal statutory rate was:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Loss before income taxes

 

$

(107,147

)

 

$

(80,300

)

 

$

(77,017

)

Statutory tax rate

 

 

35

%

 

 

35

%

 

 

35

%

Notional U.S. federal income taxes at statutory rate

 

$

(37,501

)

 

$

(28,105

)

 

$

(26,956

)

Non-deductible expenses

 

 

2,621

 

 

 

1,242

 

 

 

1,411

 

Foreign tax rate differential

 

 

18,573

 

 

 

20,261

 

 

 

20,965

 

Change in valuation allowance

 

 

19,550

 

 

 

7,226

 

 

 

4,727

 

Unrecognized tax expense (benefit)

 

 

1,257

 

 

 

(242

)

 

 

206

 

Other

 

 

(66

)

 

 

-

 

 

 

-

 

Income tax expenses

 

$

4,434

 

 

$

382

 

 

$

353

 

Effective tax rate

 

 

-4.14

%

 

 

-0.48

%

 

 

-0.46

%

 

Significant components of the Company’s deferred tax assets and liabilities are as follows:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

$

11,504

 

 

$

4,001

 

Revenue recognition (timing differences)

 

 

21,972

 

 

 

9,042

 

Net operating loss carryforwards

 

347

 

 

850

 

Other temporary differences

 

952

 

 

482

 

Total gross deferred tax assets

 

$

34,775

 

 

$

14,375

 

Less: valuation allowance

 

 

(33,476

)

 

 

(13,926

)

Total deferred tax assets

 

$

1,299

 

 

$

449

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

1,008

 

 

 

442

 

Total gross deferred tax liabilities

 

$

1,008

 

 

$

442

 

Net deferred tax assets

 

$

291

 

 

$

7

 

 

A reconciliation of the beginning and ending balances of uncertain tax benefits is as follows:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Balance at beginning of the year

 

$

308

 

 

$

549

 

Additions for tax positions related current year

 

 

848

 

 

 

79

 

Additions for tax positions related to prior years

 

 

409

 

 

 

-

 

Reduction related to lapse of applicable statute of limitations

 

 

-

 

 

 

(320

)

Balance at the end of the year

 

$

1,565

 

 

$

308

 

 

Share Capital (Tables)

Share capital is composed as follows:

 

 

 

Issued and outstanding

 

 

 

Number of shares

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Ordinary shares no par value

 

 

83,778,581

 

 

 

13,431,414

 

Series A Convertible Preferred shares no par value

 

 

-

 

 

 

4,177,235

 

Series B Convertible Preferred shares no par value

 

 

-

 

 

 

4,590,439

 

Series C Convertible Preferred shares no par value

 

 

-

 

 

 

2,261,666

 

Series D Convertible Preferred shares no par value

 

 

-

 

 

 

4,451,913

 

Series E Convertible Preferred shares no par value

 

 

-

 

 

 

7,790,861

 

Series F Convertible Preferred shares no par value

 

 

-

 

 

 

12,864,362

 

Series G Convertible Preferred shares no par value

 

 

-

 

 

 

5,106,269

 

Series H Convertible Preferred shares no par value

 

 

-

 

 

 

4,073,020

 

Series I Convertible Preferred shares no par value

 

 

-

 

 

 

13,360,252

 

Total

 

 

-

 

 

 

58,676,017

 

 

Significant terms of the warrants to purchase ordinary shares that were issued to purchasers of the Series B, C, D and E Convertible Preferred shares are as follows as of December 31, 2015 and 2014:

 

 

Warrants for ordinary shares

 

 

Exercise price

per share

 

Expiration date

 

2015

 

 

2014

 

 

 

 

 

October 11, 2015 (1)

 

 

-

 

 

 

565,411

 

 

 

3.54

 

May 8, 2016 (1)

 

 

1,108,050

 

 

 

1,112,983

 

 

 

3.59

 

July 31, 2017

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

January 22, 2018

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

July 21, 2018

 

 

834,355

 

 

 

834,355

 

 

 

3.59

 

 

 

 

3,055,761

 

 

 

3,626,105

 

 

 

 

 

 

 

(1)

Warrants to purchase 570,344 ordinary shares were exercised in 2015, resulting in the issuance of 570,344 ordinary shares.

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

 

 

 

Year ended December 31,

 

 

 

2015

 

2014

 

 

2013

 

Expected term (years)

 

6.25

 

 

6.25

 

 

 

6.25

 

Expected volatility

 

59%-65.8%

 

73.1%-75.3%

 

 

70.4%-75.9%

 

Risk-free interest rate

 

1.74%-2.05%

 

1.9%-2.3%

 

 

1.4%-2.0%

 

Dividend yield

 

0%

 

0%

 

 

0%

 

 

A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2015 and changes during the year ended on that date is presented below:

 

 

 

Year ended December 31, 2015

 

 

 

Number of

options

 

 

Weighted

average

exercise

price

 

 

Aggregate

intrinsic

value

 

Outstanding at beginning of year

 

 

7,426,159

 

 

 

3.98

 

 

 

 

 

Granted

 

 

3,108,393

 

 

 

18.01

 

 

 

 

 

Exercised

 

 

(183,911

)

 

 

3.08

 

 

 

 

 

Forfeited and cancelled

 

 

(215,812

)

 

 

8.81

 

 

 

 

 

Outstanding at end of year

 

 

10,134,829

 

 

 

8.20

 

 

 

144,776

 

Exercisable options

 

 

5,521,406

 

 

 

3.04

 

 

 

106,684

 

Vested and expected to vest

 

 

10,007,130

 

 

 

8.11

 

 

 

143,835

 

 

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2015, 2014 and 2013, was comprised as follows:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Cost of revenues

 

$

174

 

 

$

32

 

 

$

52

 

Research, development and clinical trials

 

 

2,529

 

 

 

820

 

 

 

1,137

 

Sales and marketing

 

 

2,496

 

 

 

1,104

 

 

 

791

 

General and administrative

 

 

6,661

 

 

 

2,668

 

 

 

3,140

 

Total share-based compensation expense

 

$

11,860

 

 

$

4,624

 

 

$

5,120

 

 

The options outstanding as of December 31, 2015 are as follows:

 

Exercise price

 

 

Number

of options

outstanding

as of

December 31, 2015

 

 

Weighted

average

remaining

contractual

term

 

 

Number

of options

exercisable

as of

December 31, 2015

 

 

Weighted

average

remaining

contractual term

 

$

 

 

 

 

 

 

(years)

 

 

 

 

 

 

(years)

 

 

0.17

 

 

 

1,402,757

 

 

 

0.71

 

 

 

1,402,757

 

 

 

0.71

 

 

0.23

 

 

 

440,531

 

 

 

3.42

 

 

 

440,531

 

 

 

3.42

 

 

0.38

 

 

 

488,331

 

 

 

4.78

 

 

 

488,331

 

 

 

4.78

 

 

3.44

 

 

 

1,779,072

 

 

 

5.88

 

 

 

1,728,710

 

 

 

5.89

 

 

6.72

 

 

 

850,401

 

 

 

6.67

 

 

 

642,321

 

 

 

6.66

 

 

6.83

 

 

 

92,227

 

 

 

6.95

 

 

 

69,308

 

 

 

6.95

 

 

7.03

 

 

 

613,174

 

 

 

7.14

 

 

 

307,309

 

 

 

7.14

 

 

7.04

 

 

 

135,992

 

 

 

7.46

 

 

 

67,982

 

 

 

7.46

 

 

7.28

 

 

 

167,921

 

 

 

7.65

 

 

 

83,946

 

 

 

7.65

 

 

7.48

 

 

 

504,365

 

 

 

8.14

 

 

 

130,509

 

 

 

8.13

 

 

7.52

 

 

 

110,560

 

 

 

8.24

 

 

 

29,925

 

 

 

8.23

 

 

7.58

 

 

 

52,032

 

 

 

8.49

 

 

 

13,006

 

 

 

8.49

 

 

7.73

 

 

 

431,053

 

 

 

8.77

 

 

 

107,755

 

 

 

8.77

 

 

14.37

 

 

 

1,616,011

 

 

 

9.16

 

 

 

9,016

 

 

 

8.84

 

 

15.60

 

 

 

146,926

 

 

 

9.32

 

 

 

-

 

 

 

-

 

 

20.20

 

 

 

140,466

 

 

 

9.81

 

 

 

-

 

 

 

-

 

 

22.00

 

 

 

913,210

 

 

 

9.76

 

 

 

-

 

 

 

-

 

 

27.50

 

 

 

249,800

 

 

 

9.97

 

 

 

-

 

 

 

-

 

 

 

 

 

 

10,134,829

 

 

 

6.56

 

 

 

5,521,406

 

 

 

4.63

 

 

Financial Expenses, Net (Tables)
Schedule of Financial Expenses, Net

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Financial expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(2,373

)

 

$

(41

)

 

$

(7,158

)

Amortization of credit facility costs

 

 

(329

)

 

 

-

 

 

 

(5,432

)

Foreign currency transaction losses

 

 

(356

)

 

 

(104

)

 

 

(157

)

Others

 

 

(177

)

 

 

(142

)

 

 

(78

)

 

 

$

(3,235

)

 

$

(287

)

 

$

(12,825

)

Financial income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

84

 

 

$

143

 

 

$

267

 

Total financial expenses, net

 

$

(3,151

)

 

$

(144

)

 

$

(12,558

)

 

Basic and Diluted Net Loss Per Share (Tables)
Schedule of Basic and Diluted Net Loss Per Ordinary Share

The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Net loss attributable to ordinary shares as reported

 

$

(111,581

)

 

$

(80,682

)

 

$

(77,370

)

Shares used in computing net loss per ordinary

   share, basic and diluted

 

 

30,401,603

 

 

 

12,490,017

 

 

 

11,498,392

 

Net loss per ordinary share, basic and diluted

 

$

(3.67

)

 

$

(6.46

)

 

$

(6.73

)

 

Supplemental Information (Tables)

The following table presents long-lived assets by location:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

United States

 

 

6,600

 

 

 

3,468

 

Switzerland

 

 

4,204

 

 

 

1,259

 

Israel

 

$

1,376

 

 

$

1,009

 

Others

 

 

401

 

 

 

13

 

 

 

$

12,581

 

 

$

5,749

 

 

The Company’s net revenues by geographic region, based on the patient’s location are summarized as follows:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

United States

 

 

30,961

 

 

 

14,951

 

 

 

10,330

 

Europe, Israel and Japan

 

 

2,126

 

 

$

539

 

 

$

29

 

 

 

$

33,087

 

 

$

15,490

 

 

$

10,359

 

 

Organization and Basis of Presentation - Additional Information (Detail)
In Thousands, except Share data, unless otherwise specified
1 Months Ended 0 Months Ended
Sep. 30, 2015
USD ($)
Sep. 30, 2015
GBP (£)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Oct. 7, 2015
Ordinary Shares
IPO
USD ($)
Organization And Basis Of Presentation [Line Items]
 
 
 
 
 
Issuance of shares, net (in shares)
 
 
 
 
7,876,195 
Proceeds from issuance of ordinary shares
 
 
 
 
$ 157,534 
Ordinary shares no par value
   
 
 
 
 
preferred shares no par value
   
 
 
 
 
Share split ratio
5.913 
5.913 
 
 
 
Preferred stock, par value
 
£ 0.01 
$ 0 
$ 0 
 
Common stock, par value
 
£ 0.01 
$ 0 
$ 0 
 
Significant Accounting Policies - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Significant Accounting Policies [Line Items]
 
 
 
Other than temporary impairment losses on short-term investments
$ 0 
 
 
Inventory write-offs
Impairment of long-lived assets
 
 
Excise taxes
1,457,000 
1,010,000 
584,000 
Other indirect taxes
818,000 
266,000 
300,000 
Cost related to charitable care
1,376,000 
836,000 
254,000 
Shipping and handling costs
1,385,000 
553,000 
431,000 
Expected dividend yield
0.00% 
0.00% 
0.00% 
Dividends declared
 
 
Dividends paid
 
 
Net revenues
33,087,000 
15,490,000 
10,359,000 
Monthly salary contribution rate by employer
8.33% 
 
 
Severance costs
356,000 
307,000 
288,000 
Pension expense
404,000 
205,000 
70,000 
Recent accounting pronouncement resulted in reclassification of debt issuance cost
1,400 
 
 
Sales Revenue Net |
Customer One |
Customer Concentration Risk
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Net revenues
5,595,000 
2,372,000 
2,056,000 
Concentration risk percentage
17.00% 
15.00% 
18.00% 
Sales Revenue Net |
Customer Two |
Customer Concentration Risk
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Net revenues
2,512,000 
2,014,000 
1,160,000 
Concentration risk percentage
8.00% 
12.00% 
10.00% 
Employee Stock Option
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Share-based award requisite service period
4 years 
 
 
Expected dividend yield
0.00% 
 
 
Field Equipment Under Operating Leases
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Property and equipment useful life
2 years 
 
 
Equipment write-downs included in cost of revenue
$ 36,000 
$ 12,000 
$ 19,000 
Property and Equipment at Cost Using Straight-Line Method (Details)
12 Months Ended
Dec. 31, 2015
Computers and laboratory equipment |
Minimum
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation rate
15.00% 
Computers and laboratory equipment |
Maximum
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation rate
33.00% 
Office furniture |
Minimum
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation rate
6.00% 
Office furniture |
Maximum
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation rate
33.00% 
Production equipment
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation rate
20.00% 
Leasehold improvements
 
Property Plant And Equipment [Line Items]
 
Straight line depreciation useful life
Over the shorter of the term of the lease or its useful life 
Cash and Cash Equivalents and Short Term Investments - Summary of Cash and Cash Equivalents (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
$ 119,423 
$ 57,613 
$ 175,894 
$ 34,891 
Cash
 
 
 
 
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
75,421 
47,614 
 
 
Money market funds
 
 
 
 
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
44,002 
 
 
 
U.S. treasury bills
 
 
 
 
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
 
$ 9,999 
 
 
Cash and Cash Equivalents and Short Term Investments - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
 
 
Short-term investments
$ 150,001 
$ 44,999 
Estimated fair value of short-term investments
$ 149,978 
$ 44,999 
Receivables and Prepaid Expenses - Schedule of Receivables and Prepaid Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Receivables And Prepaid Expenses [Abstract]
 
 
Advances and receivables from suppliers
$ 7,323 
$ 4,262 
Government authorities
1,955 
501 
Prepaid expenses
1,290 
853 
Others
231 
95 
Receivables and prepaid expenses
$ 10,799 
$ 5,711 
Inventories - Schedule of Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 3,518 
$ 526 
Work in process
4,618 
1,280 
Finished goods
5,458 
1,640 
Total
$ 13,594 
$ 3,446 
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 10,489 
$ 6,083 
Accumulated depreciation and amortization
(3,937)
(2,351)
Depreciated cost
6,552 
3,732 
Computers and laboratory equipment
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
6,734 
3,745 
Office furniture
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
1,245 
995 
Production equipment
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
857 
 
Leasehold improvements
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 1,653 
$ 1,343 
Property and Equipment, Net - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Property Plant And Equipment [Line Items]
 
 
 
Accumulated computer software amortization
$ 2,803 
 
 
Computer software amortization
250 
 
 
Property and Equipment
 
 
 
Property Plant And Equipment [Line Items]
 
 
 
Depreciation expense
$ 1,348 
$ 886 
$ 520 
Field Equipment, Net - Schedule of Field Equipment, Net (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Field Equipment [Abstract]
 
 
Field equipment
$ 9,226 
$ 3,942 
Less: accumulated depreciation
(3,197)
(1,925)
Field equipment, net
$ 6,029 
$ 2,017 
Field Equipment, Net - Additional Information (Details) (Field equipment, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Field equipment
 
 
 
Field Equipment [Line Items]
 
 
 
Depreciation
$ 1,555 
$ 1,076 
$ 696 
Other Payables and Accrued Expenses - Schedule of Other Payables and Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Payables And Accruals [Abstract]
 
 
Employees and payroll accruals
$ 8,258 
$ 5,846 
Taxes payable and others
2,850 
693 
Provision for settlement
 
1,000 
Other
764 
97 
Other payables and accrued expenses
$ 11,872 
$ 7,636 
Employee benefit obligations - Schedule of Asset Allocation by Category (Details)
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
100.00% 
Debt Securities
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
75.00% 
Real Estate
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
16.00% 
Equity Securities
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
3.00% 
Others
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
6.00% 
Employee benefit obligations - Net Funded Status (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Change in Benefit Obligation
 
Interest cost
$ 47 
Company service cost
312 
Employee contributions
189 
Prior service cost
158 
Benefits paid
4,023 
Actuarial loss
1,494 
Projected benefit obligation at end of year
6,223 
Change in Plan Assets
 
Actual return on plan assets
(63)
Employer contributions
284 
Employee contributions
189 
Benefits paid
4,023 
Fair value of plan assets at end of year
4,433 
Funded Status at End of year
 
Excess of obligation over assets
(1,790)
Change in Accrued Benefit Liability
 
Company contributions made during year
284 
Net periodic benefit cost for year
(404)
Net decrease in accumulated other comprehensive loss
(1,670)
Accrued benefit liability at end of year
(1,790)
Non - current plan assets
4,433 
Non - current liability
6,223 
Accrued benefit liability at end of year
(1,790)
Projected Benefit Payments
 
2016
2017
13 
2018
19 
2019
25 
2020
32 
2021 - 2024
$ 264 
Employee benefit obligations - Net Periodic Benefit Cost (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Net Periodic Benefit Cost
 
Company service cost
$ 312 
Interest cost
47 
Expected return on plan assets
(38)
Amortization of prior service costs
14 
Amortization of transition obligation
69 
Total net periodic benefit cost
$ 404 
Weighted average assumptions:
 
Discount rate as of December 31
1.00% 
Expected long-term rate of return on assets
1.00% 
Rate of compensation increase
1.00% 
Mortality and disability assumptions
BVG 2010 GT 
Long - Term Loan, Net of Discount and Issuance Costs - Additional Information (Details) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Credit Agreement
Dec. 31, 2013
Credit Agreement
Jan. 31, 2013
Credit Agreement
Jan. 31, 2013
Credit Agreement
Credit Facility
Dec. 31, 2015
Credit Agreement
Credit Facility
Dec. 31, 2015
Credit Agreement
LIBOR
Dec. 31, 2015
Credit Agreement
LIBOR
Floor rate
Jan. 31, 2013
Credit Agreement
Preferred H Shares
Jan. 31, 2015
Term Loan
Dec. 31, 2015
Term Loan
Dec. 31, 2015
Term Loan
Other Long-term Assets
Dec. 31, 2015
Term Loan
First Year
Dec. 31, 2015
Term Loan
Second Year
Dec. 31, 2015
Term Loan
Third Year
Line Of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt agreement, maturity period
 
 
 
 
 
 
3 years 
 
 
 
 
5 years 
 
 
 
 
 
Line of credit facility, current borrowing capacity
 
 
 
 
 
$ 52,000,000 
 
 
 
 
 
$ 25,000,000 
 
 
 
 
 
Warrants issued to purchase of preferred shares
975,644 
 
 
 
 
 
 
 
 
 
975,644 
 
 
 
 
 
 
Exercise price per share
$ 18.77 
 
 
 
 
 
 
 
 
 
$ 18.77 
 
 
 
 
 
 
Accrued interest charge, capitalized as additional principal
 
 
 
 
 
 
 
11.00% 
 
 
 
 
 
 
 
 
 
Interest on the outstanding loan
 
 
 
 
 
 
 
 
 
0.50% 
 
 
10.00% 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
1.50% 
 
 
 
 
 
 
 
 
Fair value of warrants converted to shareholders equity
 
 
 
2,864,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total discount amount
 
 
 
4,927,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original issuance discount amount
 
 
 
2,000,000 
 
 
 
 
 
 
 
 
 
491,000 
 
 
 
Amortization of deferred issuance costs
 
 
 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of outstanding borrowing capacity
 
 
 
 
58,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Financial expenses, net
3,151,000 
144,000 
12,558,000 
 
12,577,000 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
75,000,000 
 
 
 
 
Funding fees payable
 
 
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
 
 
Prepayment fee percent
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
 
3.00% 
2.00% 
1.00% 
Due date of outstanding principal loan
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 31, 2020 
 
 
 
 
Frequency of payments
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly 
 
 
 
 
Additional issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,739,000 
 
 
 
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Liabilities Disclosure [Abstract]
 
 
 
Deferred rent liability
$ 785 
$ 590 
 
Leasehold improvements financing and other (see a and b below)
254 
321 
 
Unrecognized tax benefits
1,565 
308 
549 
Provision for settlement
 
867 
 
Other
131 
 
 
Other long-term liabilities
$ 2,735 
$ 2,086 
 
Other Long-term Liabilities - Additional Information (Details)
12 Months Ended 12 Months Ended
Dec. 31, 2015
Facility in Switzerland
Dec. 31, 2015
Facility in Switzerland
CHF
Dec. 31, 2014
Facility in Switzerland
USD ($)
Jul. 31, 2013
Facility in Switzerland
CHF
Dec. 31, 2015
Facility in the U.S.
Jan. 31, 2014
Facility in the U.S.
USD ($)
May 31, 2013
Facility in the U.S.
USD ($)
Schedule Of Other Long Term Liabilities [Line Items]
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 400,000 
 
 
 
Line of credit
 
 220,000 
$ 232,000 
 
 
$ 226,000 
$ 226,000 
Principal and interest payment, start date
Jan. 01, 2014 
Jan. 01, 2014 
 
 
Jun. 01, 2013 
 
 
Principal and interest payment, end date
Dec. 31, 2018 
Dec. 31, 2018 
 
 
May 01, 2023 
 
 
Line of credit facility, Interest rate
5.00% 
5.00% 
 
 
7.00% 
 
 
Other Long-term Liabilities - Schedule of Leasehold Improvement Financing Repayments (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
 
 
2016
$ 63 
 
2017
69 
 
2018
73 
 
2019
23 
 
2020
24 
 
Thereafter
65 
 
Long-term debt
317 
 
Less: current portion of long-term loans
(63)
 
Long-term loans, net of current portion
$ 254 
$ 321 
Commitments and Contingent Liabilities - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Loss Contingencies [Line Items]
 
 
 
Operating lease expiration description
The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2023. 
 
 
Lease and rental expense
$ 2,194 
$ 1,794 
$ 1,356 
Pledged bank deposits
133 
130 
 
Operating Lease Commitments
$ 283 
$ 281 
 
Motor Vehicles
 
 
 
Loss Contingencies [Line Items]
 
 
 
Operating lease expiration description
The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2018 
 
 
Maximum
 
 
 
Loss Contingencies [Line Items]
 
 
 
Operating lease agreements, expiration year
2023 
 
 
Maximum |
Motor Vehicles
 
 
 
Loss Contingencies [Line Items]
 
 
 
Operating lease agreements, expiration year
2018 
 
 
Commitments and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
 
2016
$ 2,320 
2017
2,171 
2018
1,152 
2019
987 
2020
591 
Thereafter
1,261 
Total minimum lease payments
$ 8,482 
Income Taxes - Schedule of Components of Loss before Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
United States (U.S.)
$ (55,087)
$ (22,015)
$ (15,698)
Non-U.S.
(52,060)
(58,285)
(61,319)
Loss before income taxes
$ (107,147)
$ (80,300)
$ (77,017)
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current:
 
 
 
United States
$ 891 
$ 65 
$ (18)
Non-U.S.
3,678 
324 
308 
Total current
4,569 
389 
290 
Deferred:
 
 
 
Non-U.S.
(135)
(7)
63 
Total deferred
(135)
(7)
63 
Income tax expenses
$ 4,434 
$ 382 
$ 353 
Income Taxes - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Taxes [Line Items]
 
 
 
Statutory tax rate
35.00% 
35.00% 
35.00% 
Tax benefit or expense recognized due to valuation allowance
$ 0 
 
 
Uncertain tax positions, interest and penalties recognized
26,000 
2,000 
20,000 
Luxemburg
 
 
 
Income Taxes [Line Items]
 
 
 
Net operating losses carryforward
$ 1,200,000 
 
 
Income Taxes - Reconciliation of Provision for Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Loss before income taxes
$ (107,147)
$ (80,300)
$ (77,017)
Statutory tax rate
35.00% 
35.00% 
35.00% 
Notional U.S. federal income taxes at statutory rate
(37,501)
(28,105)
(26,956)
Non-deductible expenses
2,621 
1,242 
1,411 
Foreign tax rate differential
18,573 
20,261 
20,965 
Change in valuation allowance
19,550 
7,226 
4,727 
Unrecognized tax expense (benefit)
1,257 
(242)
206 
Other
(66)
 
 
Income tax expenses
$ 4,434 
$ 382 
$ 353 
Effective tax rate
(4.14%)
(0.48%)
(0.46%)
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets:
 
 
Allowance for doubtful accounts
$ 11,504 
$ 4,001 
Revenue recognition (timing differences)
21,972 
9,042 
Net operating loss carryforwards
347 
850 
Other temporary differences
952 
482 
Total gross deferred tax assets
34,775 
14,375 
Less: valuation allowance
(33,476)
(13,926)
Total deferred tax assets
1,299 
449 
Deferred tax liabilities:
 
 
Fixed assets
1,008 
442 
Total gross deferred tax liabilities
1,008 
442 
Net deferred tax assets
$ 291 
$ 7 
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
Balance at beginning of the year
$ 308 
$ 549 
Additions for tax positions related current year
848 
79 
Additions for tax positions related to prior years
409 
 
Reduction related to lapse of applicable statute of limitations
 
(320)
Balance at the end of the year
$ 1,565 
$ 308 
Share Capital - Schedule of Share Capital (Details)
Dec. 31, 2015
Dec. 31, 2014
Share Capital [Line Items]
 
 
Common stock, shares issued
83,778,581 
13,431,414 
Common stock, shares outstanding
83,778,581 
13,431,414 
Preferred stock, shares issued
58,676,017 
Preferred stock, shares outstanding
58,676,017 
Series A Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
4,177,235 
Preferred stock, shares outstanding
 
4,177,235 
Series B Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
4,590,439 
Preferred stock, shares outstanding
 
4,590,439 
Series C Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
2,261,666 
Preferred stock, shares outstanding
 
2,261,666 
Series D Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
4,451,913 
Preferred stock, shares outstanding
 
4,451,913 
Series E Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
7,790,861 
Preferred stock, shares outstanding
 
7,790,861 
Series F Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
12,864,362 
Preferred stock, shares outstanding
 
12,864,362 
Series G Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
5,106,269 
Preferred stock, shares outstanding
 
5,106,269 
Series H Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
4,073,020 
Preferred stock, shares outstanding
 
4,073,020 
Series I Convertible Preferred shares
 
 
Share Capital [Line Items]
 
 
Preferred stock, shares issued
 
13,360,252 
Preferred stock, shares outstanding
 
13,360,252 
Share Capital - Schedule of Share Capital (Parenthetical) (Details)
Dec. 31, 2015
USD ($)
Sep. 30, 2015
GBP (£)
Dec. 31, 2014
USD ($)
Dec. 31, 2015
Series A Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series A Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series B Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series B Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series C Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series C Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series D Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series D Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series E Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series E Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series F Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series F Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series G Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series G Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series H Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series H Convertible Preferred shares
USD ($)
Dec. 31, 2015
Series I Convertible Preferred shares
USD ($)
Dec. 31, 2014
Series I Convertible Preferred shares
USD ($)
Share Capital [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
$ 0 
£ 0.01 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, par value
$ 0 
£ 0.01 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
Share Capital - Additional Information (Details) (USD $)
1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Feb. 28, 2015
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
2003 Plan
Dec. 31, 2015
2013 Plan
Mar. 31, 2015
2013 Plan
Feb. 28, 2015
2013 Plan
Dec. 31, 2015
2015 Plan
Dec. 31, 2015
2015 Plan
Aug. 31, 2015
2015 Plan
Dec. 31, 2015
Condition One
Dec. 31, 2015
Condition Two
Mar. 31, 2015
Settlement Agreement
Feb. 28, 2015
Settlement Agreement
Dec. 31, 2014
Settlement Agreement
Dec. 31, 2014
Settlement Agreement
General and Administrative
Feb. 28, 2015
Settlement Agreement
Condition One
Feb. 28, 2015
Settlement Agreement
Condition Two
Dec. 31, 2015
Minimum
Mar. 31, 2015
Minimum
Settlement Agreement
Dec. 31, 2015
ESPP
Dec. 31, 2015
ESPP
Minimum
Dec. 31, 2015
ESPP
Maximum
Oct. 7, 2015
Ordinary Shares
IPO
Dec. 31, 2015
Series I Convertible Preferred shares
Dec. 31, 2015
Series J Convertible Preferred shares
Dec. 31, 2015
Series A Convertible Preferred shares
Dec. 31, 2015
Series B Convertible Preferred shares
Dec. 31, 2015
Series C Convertible Preferred shares
Dec. 31, 2015
Series D Convertible Preferred shares
Dec. 31, 2015
Series E Convertible Preferred shares
Dec. 31, 2015
Series F Convertible Preferred shares
Dec. 31, 2015
Series G Convertible Preferred shares
Dec. 31, 2015
Series H Convertible Preferred shares
Share Capital [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,360,252 
4,068,500 
 
 
 
 
 
 
 
 
Shares issued, price per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 14.53 
$ 23.33 
 
 
 
 
 
 
 
 
Proceeds from issuance of preferred shares, net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 191,738,000 
$ 94,599,000 
 
 
 
 
 
 
 
 
Liquidation preference per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 14.53 
$ 23.33 
$ 1.52 
$ 1.09 
$ 1.77 
$ 1.80 
$ 1.80 
$ 2.23 
$ 8.64 
$ 13.5 
Share issuance expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
319,000 
 
 
 
 
 
 
 
 
Sale of ordinary shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,876,195 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of ordinary shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
157,534,000 
 
 
 
 
 
 
 
 
 
 
Entity listing value of share requirement for qualifying IPO in NYSE or NASDAQ
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Entity listing value of share requirement for qualifying IPO in other public stock exchange.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible preferred shares conversion ratio
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Voting rights of ordinary shareholder
 
one 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement agreement date
 
February 2015 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement agreement terms
 
 
 
 
 
 
 
 
 
 
 
(i) 18 months after signing of the Agreement, (ii) an IPO or (iii) the earlier of consummation of a merger/acquisition (“M&A”) or achievement of a Cumulative Net Sales milestone of $250,000 (as defined pursuant to the Agreement). 
(i) achievement of the Cumulative Net Sales milestone per above or (ii) consummation of a merger or acquisition transaction 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,867,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement additional payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
5,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement additional amount paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earlier Payment period after agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales milestone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares issued
 
83,778,581 
13,431,414 
 
 
 
 
 
 
 
 
 
 
 
1,005,210 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares granted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,005,210 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earlier Period for Option Termination
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock redeemed or called during period, shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,010,420 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of closing price per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants issued to purchase of preferred shares
 
975,644 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise price per share
 
$ 18.77 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class of Warrant or Right, Date from which Warrants or Rights Exercisable
 
Jan. 31, 2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option granted vesting period
 
 
 
 
4 years 
4 years 
 
 
 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option granted expiration period
 
 
 
 
10 years 
10 years 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in shares authorized for issuance available for grants
 
 
 
 
 
 
13,198,224 
2,956,500 
16,251,143 
16,251,143 
12,900,000 
 
 
 
 
 
 
 
 
 
 
830,000 
837,785 
1,667,785 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares available for grants
 
 
 
 
 
 
 
14,947,667 
14,947,667 
 
 
 
 
 
 
 
 
 
 
 
1,667,785 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage increase in number of shares available for issuance
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
 
25,008,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost expected recognition weighted average period
 
3 years 4 months 21 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options granted
 
$ 10.64 
$ 5.08 
$ 4.59 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options unvested
 
$ 8.66 
$ 4.26 
$ 3.42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options unvested amount
 
4,613,423 
2,934,974 
3,125,543 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options vested
 
$ 3.66 
$ 2.89 
$ 2.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options vested amount
 
1,235,880 
1,166,974 
1,030,933 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options forfeited and cancelled
 
$ 5.73 
$ 3.59 
$ 1.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate intrinsic values options exercised
 
$ 3,546,000 
$ 3,339,000 
$ 3,431,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of ordinary shares
 
$ 22.36 
$ 7.73 
$ 7.28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of increase in shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Capital - Schedule of Warrants to Purchase Ordinary Shares that were Issued to Purchase of Convertible Preferred Shares (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Class Of Warrant Or Right [Line Items]
 
 
Warrants for ordinary shares
3,055,761 
3,626,105 
Exercise price per share
$ 18.77 
 
October 11, 2015
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
Oct. 11, 2015 
 
Warrants for ordinary shares
 
565,411 
Exercise price per share
$ 3.54 
 
May 8, 2016
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
May 08, 2016 
 
Warrants for ordinary shares
1,108,050 
1,112,983 
Exercise price per share
$ 3.59 
 
July 31, 2017
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
Jul. 31, 2017 
 
Warrants for ordinary shares
556,678 
556,678 
Exercise price per share
$ 3.59 
 
January 22, 2018
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
Jan. 22, 2018 
 
Warrants for ordinary shares
556,678 
556,678 
Exercise price per share
$ 3.59 
 
July 21, 2018
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
Jul. 21, 2018 
 
Warrants for ordinary shares
834,355 
834,355 
Exercise price per share
$ 3.59 
 
Share Capital - Schedule of Warrants to Purchase Ordinary Shares that were Issued to Purchase of Convertible Preferred Shares (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2015
Class Of Warrant Or Right [Line Items]
 
Warrants exercised to ordinary shares
570,344 
Warrant
 
Class Of Warrant Or Right [Line Items]
 
Conversion of preferred shares to ordinary shares
570,344 
Share Capital - Schedule of Fair Value of Share Based Awards Using Black-Scholes Option Pricing Model (Details)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
 
Expected term (years)
6 years 3 months 
6 years 3 months 
6 years 3 months 
Expected volatility, minimum
59.00% 
73.10% 
70.40% 
Expected volatility, maximum
65.80% 
75.30% 
75.90% 
Risk-free interest rate, minimum
1.74% 
1.90% 
1.40% 
Risk-free interest rate, maximum
2.05% 
2.30% 
2.00% 
Expected dividend yield
0.00% 
0.00% 
0.00% 
Share Capital - Schedule of Stock Options to Purchase Ordinary Shares (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Number of options
 
Number of options, Outstanding at beginning of year
7,426,159 
Number of options, Granted
3,108,393 
Number of options, Exercised
(183,911)
Number of options, Forfeited and cancelled
(215,812)
Number of options, Outstanding at ending of year
10,134,829 
Number of options, Exercisable options
5,521,406 
Number of options, Vested and expected to vest
10,007,130 
Weighted average exercise price
 
Weighted average exercise price, Outstanding at beginning of year
$ 3.98 
Weighted average exercise price, Granted
$ 18.01 
Weighted average exercise price, Exercised
$ 3.08 
Weighted average exercise price, Forfeited and cancelled
$ 8.81 
Weighted average exercise price, Outstanding at end of year
$ 8.20 
Weighted average exercise price, Exercisable options
$ 3.04 
Weighted average exercise price, Vested and expected to vest
$ 8.11 
Aggregate intrinsic value
 
Aggregate intrinsic value, Outstanding at end of year
$ 144,776 
Aggregate intrinsic value, Exercisable options
106,684 
Aggregate intrinsic value, Vested and expected to vest
$ 143,835 
Share Capital - Schedule of Stock Option Outstanding (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Number of options outstanding
10,134,829 
7,426,159 
Options outstanding, weighted average remaining contractual term
6 years 6 months 22 days 
 
Number of options exercisable
5,521,406 
 
Options exercisable, weighted average remaining contractual term
4 years 7 months 17 days 
 
Exercise price 0.17
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 0.17 
 
Number of options outstanding
1,402,757 
 
Options outstanding, weighted average remaining contractual term
8 months 16 days 
 
Number of options exercisable
1,402,757 
 
Options exercisable, weighted average remaining contractual term
8 months 16 days 
 
Exercise price 0.23
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 0.23 
 
Number of options outstanding
440,531 
 
Options outstanding, weighted average remaining contractual term
3 years 5 months 1 day 
 
Number of options exercisable
440,531 
 
Options exercisable, weighted average remaining contractual term
3 years 5 months 1 day 
 
Exercise price 0.38
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 0.38 
 
Number of options outstanding
488,331 
 
Options outstanding, weighted average remaining contractual term
4 years 9 months 11 days 
 
Number of options exercisable
488,331 
 
Options exercisable, weighted average remaining contractual term
4 years 9 months 11 days 
 
Exercise price 3.44
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 3.44 
 
Number of options outstanding
1,779,072 
 
Options outstanding, weighted average remaining contractual term
5 years 10 months 17 days 
 
Number of options exercisable
1,728,710 
 
Options exercisable, weighted average remaining contractual term
5 years 10 months 21 days 
 
Exercise price 6.72
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 6.72 
 
Number of options outstanding
850,401 
 
Options outstanding, weighted average remaining contractual term
6 years 8 months 1 day 
 
Number of options exercisable
642,321 
 
Options exercisable, weighted average remaining contractual term
6 years 7 months 28 days 
 
Exercise price 6.83
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 6.83 
 
Number of options outstanding
92,227 
 
Options outstanding, weighted average remaining contractual term
6 years 11 months 12 days 
 
Number of options exercisable
69,308 
 
Options exercisable, weighted average remaining contractual term
6 years 11 months 12 days 
 
Exercise price 7.03
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.03 
 
Number of options outstanding
613,174 
 
Options outstanding, weighted average remaining contractual term
7 years 1 month 21 days 
 
Number of options exercisable
307,309 
 
Options exercisable, weighted average remaining contractual term
7 years 1 month 21 days 
 
Exercise price 7.04
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.04 
 
Number of options outstanding
135,992 
 
Options outstanding, weighted average remaining contractual term
7 years 5 months 16 days 
 
Number of options exercisable
67,982 
 
Options exercisable, weighted average remaining contractual term
7 years 5 months 16 days 
 
Exercise price 7.28
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.28 
 
Number of options outstanding
167,921 
 
Options outstanding, weighted average remaining contractual term
7 years 7 months 24 days 
 
Number of options exercisable
83,946 
 
Options exercisable, weighted average remaining contractual term
7 years 7 months 24 days 
 
Exercise price 7.48
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.48 
 
Number of options outstanding
504,365 
 
Options outstanding, weighted average remaining contractual term
8 years 1 month 21 days 
 
Number of options exercisable
130,509 
 
Options exercisable, weighted average remaining contractual term
8 years 1 month 17 days 
 
Exercise price 7.52
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.52 
 
Number of options outstanding
110,560 
 
Options outstanding, weighted average remaining contractual term
8 years 2 months 27 days 
 
Number of options exercisable
29,925 
 
Options exercisable, weighted average remaining contractual term
8 years 2 months 23 days 
 
Exercise price 7.58
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.58 
 
Number of options outstanding
52,032 
 
Options outstanding, weighted average remaining contractual term
8 years 5 months 27 days 
 
Number of options exercisable
13,006 
 
Options exercisable, weighted average remaining contractual term
8 years 5 months 27 days 
 
Exercise price 7.73
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 7.73 
 
Number of options outstanding
431,053 
 
Options outstanding, weighted average remaining contractual term
8 years 9 months 7 days 
 
Number of options exercisable
107,755 
 
Options exercisable, weighted average remaining contractual term
8 years 9 months 7 days 
 
Exercise price 14.37
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 14.37 
 
Number of options outstanding
1,616,011 
 
Options outstanding, weighted average remaining contractual term
9 years 1 month 28 days 
 
Number of options exercisable
9,016 
 
Options exercisable, weighted average remaining contractual term
8 years 10 months 2 days 
 
Exercise price 15.60
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 15.60 
 
Number of options outstanding
146,926 
 
Options outstanding, weighted average remaining contractual term
9 years 3 months 26 days 
 
Exercise price 20.20
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 20.20 
 
Number of options outstanding
140,466 
 
Options outstanding, weighted average remaining contractual term
9 years 9 months 22 days 
 
Exercise price 22.00
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 22.00 
 
Number of options outstanding
913,210 
 
Options outstanding, weighted average remaining contractual term
9 years 9 months 4 days 
 
Exercise price 27.50
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 27.50 
 
Number of options outstanding
249,800 
 
Options outstanding, weighted average remaining contractual term
9 years 11 months 19 days 
 
Financial Expenses, Net - Schedule of Financial Expenses, Net (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Financial expenses:
 
 
 
Interest expense
$ (2,373)
$ (41)
$ (7,158)
Amortization of credit facility costs
(329)
(5,432)
Foreign currency transaction losses
(356)
(104)
(157)
Others
(177)
(142)
(78)
Financial expenses
(3,235)
(287)
(12,825)
Financial income:
 
 
 
Interest income
84 
143 
267 
Total financial expenses, net
$ (3,151)
$ (144)
$ (12,558)
Basic and Diluted Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Ordinary Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Earnings Per Share [Abstract]
 
 
 
Net loss attributable to ordinary shares as reported
$ (111,581)
$ (80,682)
$ (77,370)
Shares used in computing net loss per ordinary share, basic and diluted
30,401,603 
12,490,017 
11,498,392 
Net loss per ordinary share, basic and diluted
$ (3.67)
$ (6.46)
$ (6.73)
Supplemental Information - Schedule of Long-Lived Assets by Location (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 12,581 
$ 5,749 
United States
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
6,600 
3,468 
Switzerland
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
4,204 
1,259 
Israel
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
1,376 
1,009 
Others
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 401 
$ 13 
Supplemental Information - Schedule of Revenues by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
Net revenues
$ 33,087 
$ 15,490 
$ 10,359 
United States
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
Net revenues
30,961 
14,951 
10,330 
Europe, Israel and Japan
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
Net revenues
$ 2,126 
$ 539 
$ 29