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NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
Organization. NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields (“TTFields”) for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune, its first TTFields delivery system, to treat adult patients with glioblastoma (“GBM”).
Financial statement preparation. The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries, and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “2016 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2017.
The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2016 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below:
Recently Adopted Accounting Pronouncements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted.
Recent Accounting Pronouncements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The Company is currently evaluating the requirements of the new standard to insure that it has processes, systems and internal controls in place to collect the necessary information to implement the standard, which will be effective as of January 1, 2018. Currently, the Company anticipates using a portfolio approach to apply the standard to portfolios of contracts with similar characteristics and anticipates that it will apply the cumulative catch-up transition method which requires the application of the provisions of the new standard as of the date of adoption with the cumulative effect of the retrospective application of the provisions as an adjustment through retained earnings. While the Company is still in the process of completing its assessment on the impact this guidance will have on its consolidated financial statements and related disclosures, the Company does not anticipate that the adoption of this standard will have a material impact on its financial position, results of operations or cash flows.
In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 covers two specific topics: performance obligations and licensing. This amendment includes guidance on immaterial promised goods or services, shipping or handling activities, separately identifiable performance obligations, functional or symbolic intellectual property licenses, sales-based and usage-based royalties, license restrictions (time, use, geographical) and licensing renewals. In addition, in May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact of the adoption of both revenue standards on its consolidated financial statements.
In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements.
In May 2017, FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The Company is evaluating the impact of ASU 2017-09.
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NOTE 2: 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 $104,453 and $119,854 as of September 30, 2017 and December 31, 2016, respectively, and their estimated fair value as of September 30, 2017 and December 31, 2016 was $104,419 and $119,825, respectively.
|
NOTE 3: INVENTORIES
Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of September 30, 2017 and December 31, 2016, the Company’s inventories were composed of:
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2017 |
|
|
2016 |
|
||
|
|
Unaudited |
|
|
Audited |
|
||
Raw materials |
|
$ |
5,936 |
|
|
$ |
5,243 |
|
Work in progress |
|
|
10,621 |
|
|
|
8,292 |
|
Finished products |
|
|
8,085 |
|
|
|
12,014 |
|
Total |
|
$ |
24,642 |
|
|
$ |
25,549 |
|
|
NOTE 4: COMMITMENTS AND CONTINGENT LIABILITIES
The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2024. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2020.
As of September 30, 2017 and December 31, 2016, the Company pledged bank deposits of $1,051 and $807, 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 and other contractual commitments of $1,212 and $955, respectively.
In January 2017, two putative class action lawsuits were filed against the Company, its directors and certain of its officers, as well as the underwriters in the Company’s October 2015 initial public offering. The complaints, which purport to be brought on behalf of a class of persons and/or entities who purchased or otherwise acquired ordinary shares of the Company pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s initial public offering, allege material misstatements and/or omissions in the Company’s initial public offering materials in alleged violation of the federal securities laws and seek compensatory damages, among other remedies. The two actions have been consolidated and the plaintiffs filed a consolidated amended complaint on May 31, 2017. The court granted the defendants’ motion to bifurcate the motion to dismiss into two stages: a threshold motion to dismiss for lack of personal jurisdiction, lack of subject matter jurisdiction, and insufficient process and service of process; and, if the matter is not dismissed following that threshold motion, a subsequent merits motion to dismiss regarding whether the allegations in the amended complaint state a claim under the securities laws. The defendants filed the threshold motion to dismiss on July 31, 2017, and the plaintiffs filed an opposition to the threshold motion to dismiss on September 29, 2017. The Company believes that the amended complaint is without merit and plans to defend the consolidated lawsuits vigorously. The Company has not accrued any amounts in respect of these lawsuits, as a liability is not probable and the amount of any potential liability cannot be reasonably estimated.
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NOTE 6: EQUITY INCENTIVE PLANS
In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted stock units (“RSUs”), performance units, long-term cash awards and other share-based awards.
Options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan vest in equal installments over a three-year period. As of September 30, 2017, 9,563,985 ordinary shares were available for grant under the 2015 Plan.
A summary of the status of the Company’s option plans as of September 30, 2017 and changes during the period then ended is presented below:
|
|
Nine months ended September 30, 2017 |
|
|||||
|
|
Unaudited |
|
|||||
|
|
Number of options |
|
|
Weighted average exercise price |
|
||
Outstanding at beginning of year |
|
|
11,377,354 |
|
|
$ |
9.76 |
|
Granted |
|
|
5,117,088 |
|
|
|
9.96 |
|
Exercised |
|
|
(1,370,810 |
) |
|
|
2.31 |
|
Forfeited and cancelled |
|
|
(310,693 |
) |
|
|
12.39 |
|
Outstanding as of September 30, 2017 |
|
|
14,812,939 |
|
|
|
10.46 |
|
|
|
|
|
|
|
|
|
|
Exercisable options |
|
|
6,119,710 |
|
|
|
8.17 |
|
|
|
|
|
|
|
|
|
|
Vested and expected to vest |
|
|
14,812,939 |
|
|
$ |
10.46 |
|
A summary of the status of the Company’s RSUs as of September 30, 2017 and changes during the period then ended is presented below:
|
|
Nine months ended September 30, 2017 |
|
|||||
|
|
Unaudited |
|
|||||
|
|
Number of RSUs |
|
|
Weighted average grant date fair value price |
|
||
Unvested at beginning of year |
|
|
- |
|
|
$ |
- |
|
Granted |
|
|
1,661,619 |
|
|
|
9.64 |
|
Vested |
|
|
- |
|
|
|
- |
|
Forfeited and cancelled |
|
|
(10,400 |
) |
|
|
7.15 |
|
Unvested as of September 30, 2017 |
|
|
1,651,219 |
|
|
$ |
9.66 |
|
In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company began its offerings under the ESPP on August 1, 2016. As of September 30, 2017, 2,328,171 ordinary shares were available to be purchased by eligible employees under the ESPP and 209,355 shares had been issued under the ESPP.
The fair value of all equity-based awards was estimated using the Black-Scholes option-pricing model with the following underlying assumptions, excluding market condition awards for which fair value was estimated using the Monte Carlo option-pricing model:
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|||
|
|
2017 |
|
2016 |
|
|
2016 |
|
|
|
Unaudited |
|
|
Audited |
|||
Stock Option Plans |
|
|
|
|
|
|
|
|
Expected term (years) |
|
5.5-6.25 |
|
6.25 |
|
|
6.25 |
|
Expected volatility |
|
56.74%-59.45% |
|
59.80%-61.65% |
|
|
58.40%-61.70% |
|
Risk-free interest rate |
|
1.97%-2.23% |
|
1.23%-1.88% |
|
|
1.23%-1.88% |
|
Dividend yield |
|
0.00% |
|
0.00% |
|
|
0.00% |
|
ESPP |
|
|
|
|
|
|
|
|
Expected term (years) |
|
0.50 |
|
|
0.42 |
|
|
0.42 |
Expected volatility |
|
76.37%-82.00% |
|
70.45% |
|
|
70.45% |
|
Risk-free interest rate |
|
0.62%-1.13% |
|
0.40% |
|
|
0.40% |
|
Dividend yield |
|
0.00% |
|
0.00% |
|
|
0.00% |
The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and nine months ended September 30, 2017 and 2016 and the year ended December 31, 2016 was:
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|
|||||||||||
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Audited |
|
|||||||||||
Cost of revenues |
|
$ |
79 |
|
|
$ |
160 |
|
|
$ |
353 |
|
|
$ |
471 |
|
|
$ |
623 |
|
Research, development and clinical trials |
|
|
972 |
|
|
|
776 |
|
|
|
2,645 |
|
|
|
2,378 |
|
|
|
3,155 |
|
Sales and marketing |
|
|
1,874 |
|
|
|
1,249 |
|
|
|
4,264 |
|
|
|
3,888 |
|
|
|
5,111 |
|
General and administrative |
|
|
5,704 |
|
|
|
3,441 |
|
|
|
13,498 |
|
|
|
9,982 |
|
|
|
12,552 |
|
Total share-based compensation expense |
|
$ |
8,629 |
|
|
$ |
5,626 |
|
|
$ |
20,760 |
|
|
$ |
16,719 |
|
|
$ |
21,441 |
|
|
NOTE 7: SUPPLEMENTAL INFORMATION
The Company operates in a single reportable segment.
The following table presents long-lived assets by location:
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2017 |
|
|
2016 |
|
||
|
|
Unaudited |
|
|
Audited |
|
||
United States |
|
$ |
10,942 |
|
|
$ |
11,981 |
|
Switzerland |
|
|
5,057 |
|
|
|
4,346 |
|
Israel |
|
|
1,884 |
|
|
|
1,915 |
|
Others |
|
426 |
|
|
|
378 |
|
|
Total |
|
$ |
18,309 |
|
|
$ |
18,620 |
|
The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows:
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|
|||||||||||
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Audited |
|
|||||||||||
United States |
|
$ |
35,300 |
|
|
$ |
18,131 |
|
|
$ |
95,826 |
|
|
$ |
46,264 |
|
|
$ |
72,771 |
|
EMEA (*) |
|
|
14,757 |
|
|
|
3,519 |
|
|
|
27,316 |
|
|
|
6,296 |
|
|
|
10,028 |
|
Japan |
|
|
52 |
|
|
|
24 |
|
|
|
223 |
|
|
|
86 |
|
|
|
89 |
|
Total |
|
$ |
50,109 |
|
|
$ |
21,674 |
|
|
$ |
123,365 |
|
|
$ |
52,646 |
|
|
$ |
82,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) including Germany |
|
$ |
14,664 |
|
|
$ |
1,766 |
|
|
|
26,880 |
|
|
|
2,659 |
|
|
$ |
9,799 |
|
|
Recently Adopted Accounting Pronouncements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted.
Recent Accounting Pronouncements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The Company is currently evaluating the requirements of the new standard to insure that it has processes, systems and internal controls in place to collect the necessary information to implement the standard, which will be effective as of January 1, 2018. Currently, the Company anticipates using a portfolio approach to apply the standard to portfolios of contracts with similar characteristics and anticipates that it will apply the cumulative catch-up transition method which requires the application of the provisions of the new standard as of the date of adoption with the cumulative effect of the retrospective application of the provisions as an adjustment through retained earnings. While the Company is still in the process of completing its assessment on the impact this guidance will have on its consolidated financial statements and related disclosures, the Company does not anticipate that the adoption of this standard will have a material impact on its financial position, results of operations or cash flows.
In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 covers two specific topics: performance obligations and licensing. This amendment includes guidance on immaterial promised goods or services, shipping or handling activities, separately identifiable performance obligations, functional or symbolic intellectual property licenses, sales-based and usage-based royalties, license restrictions (time, use, geographical) and licensing renewals. In addition, in May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact of the adoption of both revenue standards on its consolidated financial statements.
In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements.
In May 2017, FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The Company is evaluating the impact of ASU 2017-09.
|
Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of September 30, 2017 and December 31, 2016, the Company’s inventories were composed of:
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2017 |
|
|
2016 |
|
||
|
|
Unaudited |
|
|
Audited |
|
||
Raw materials |
|
$ |
5,936 |
|
|
$ |
5,243 |
|
Work in progress |
|
|
10,621 |
|
|
|
8,292 |
|
Finished products |
|
|
8,085 |
|
|
|
12,014 |
|
Total |
|
$ |
24,642 |
|
|
$ |
25,549 |
|
|
A summary of the status of the Company’s option plans as of September 30, 2017 and changes during the period then ended is presented below:
|
|
Nine months ended September 30, 2017 |
|
|||||
|
|
Unaudited |
|
|||||
|
|
Number of options |
|
|
Weighted average exercise price |
|
||
Outstanding at beginning of year |
|
|
11,377,354 |
|
|
$ |
9.76 |
|
Granted |
|
|
5,117,088 |
|
|
|
9.96 |
|
Exercised |
|
|
(1,370,810 |
) |
|
|
2.31 |
|
Forfeited and cancelled |
|
|
(310,693 |
) |
|
|
12.39 |
|
Outstanding as of September 30, 2017 |
|
|
14,812,939 |
|
|
|
10.46 |
|
|
|
|
|
|
|
|
|
|
Exercisable options |
|
|
6,119,710 |
|
|
|
8.17 |
|
|
|
|
|
|
|
|
|
|
Vested and expected to vest |
|
|
14,812,939 |
|
|
$ |
10.46 |
|
A summary of the status of the Company’s RSUs as of September 30, 2017 and changes during the period then ended is presented below:
|
|
Nine months ended September 30, 2017 |
|
|||||
|
|
Unaudited |
|
|||||
|
|
Number of RSUs |
|
|
Weighted average grant date fair value price |
|
||
Unvested at beginning of year |
|
|
- |
|
|
$ |
- |
|
Granted |
|
|
1,661,619 |
|
|
|
9.64 |
|
Vested |
|
|
- |
|
|
|
- |
|
Forfeited and cancelled |
|
|
(10,400 |
) |
|
|
7.15 |
|
Unvested as of September 30, 2017 |
|
|
1,651,219 |
|
|
$ |
9.66 |
|
The fair value of all equity-based awards was estimated using the Black-Scholes option-pricing model with the following underlying assumptions, excluding market condition awards for which fair value was estimated using the Monte Carlo option-pricing model:
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|||
|
|
2017 |
|
2016 |
|
|
2016 |
|
|
|
Unaudited |
|
|
Audited |
|||
Stock Option Plans |
|
|
|
|
|
|
|
|
Expected term (years) |
|
5.5-6.25 |
|
6.25 |
|
|
6.25 |
|
Expected volatility |
|
56.74%-59.45% |
|
59.80%-61.65% |
|
|
58.40%-61.70% |
|
Risk-free interest rate |
|
1.97%-2.23% |
|
1.23%-1.88% |
|
|
1.23%-1.88% |
|
Dividend yield |
|
0.00% |
|
0.00% |
|
|
0.00% |
|
ESPP |
|
|
|
|
|
|
|
|
Expected term (years) |
|
0.50 |
|
|
0.42 |
|
|
0.42 |
Expected volatility |
|
76.37%-82.00% |
|
70.45% |
|
|
70.45% |
|
Risk-free interest rate |
|
0.62%-1.13% |
|
0.40% |
|
|
0.40% |
|
Dividend yield |
|
0.00% |
|
0.00% |
|
|
0.00% |
The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and nine months ended September 30, 2017 and 2016 and the year ended December 31, 2016 was:
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|
|||||||||||
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Audited |
|
|||||||||||
Cost of revenues |
|
$ |
79 |
|
|
$ |
160 |
|
|
$ |
353 |
|
|
$ |
471 |
|
|
$ |
623 |
|
Research, development and clinical trials |
|
|
972 |
|
|
|
776 |
|
|
|
2,645 |
|
|
|
2,378 |
|
|
|
3,155 |
|
Sales and marketing |
|
|
1,874 |
|
|
|
1,249 |
|
|
|
4,264 |
|
|
|
3,888 |
|
|
|
5,111 |
|
General and administrative |
|
|
5,704 |
|
|
|
3,441 |
|
|
|
13,498 |
|
|
|
9,982 |
|
|
|
12,552 |
|
Total share-based compensation expense |
|
$ |
8,629 |
|
|
$ |
5,626 |
|
|
$ |
20,760 |
|
|
$ |
16,719 |
|
|
$ |
21,441 |
|
|
The following table presents long-lived assets by location:
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2017 |
|
|
2016 |
|
||
|
|
Unaudited |
|
|
Audited |
|
||
United States |
|
$ |
10,942 |
|
|
$ |
11,981 |
|
Switzerland |
|
|
5,057 |
|
|
|
4,346 |
|
Israel |
|
|
1,884 |
|
|
|
1,915 |
|
Others |
|
426 |
|
|
|
378 |
|
|
Total |
|
$ |
18,309 |
|
|
$ |
18,620 |
|
The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows:
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
Year ended December 31, |
|
|||||||||||
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Audited |
|
|||||||||||
United States |
|
$ |
35,300 |
|
|
$ |
18,131 |
|
|
$ |
95,826 |
|
|
$ |
46,264 |
|
|
$ |
72,771 |
|
EMEA (*) |
|
|
14,757 |
|
|
|
3,519 |
|
|
|
27,316 |
|
|
|
6,296 |
|
|
|
10,028 |
|
Japan |
|
|
52 |
|
|
|
24 |
|
|
|
223 |
|
|
|
86 |
|
|
|
89 |
|
Total |
|
$ |
50,109 |
|
|
$ |
21,674 |
|
|
$ |
123,365 |
|
|
$ |
52,646 |
|
|
$ |
82,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) including Germany |
|
$ |
14,664 |
|
|
$ |
1,766 |
|
|
|
26,880 |
|
|
|
2,659 |
|
|
$ |
9,799 |
|
|
|
|
|
|
|
|
|
|
|
|