NOVOCURE LTD, 10-K filed on 2/23/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2016
Feb. 16, 2017
Jun. 30, 2016
Document Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
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
Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
87,072,949 
 
Entity Public Float
 
 
$ 512,770,254 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 99,780 
$ 119,423 
Short-term investments
119,854 
150,001 
Restricted cash
267 
87 
Trade Receivables
6,339 
Receivables and prepaid expenses
10,084 
10,799 
Inventories
25,549 
13,594 
Total current assets
261,873 
293,904 
Long-term Assets:
 
 
Property and equipment, net
9,812 
6,552 
Field equipment, net
8,808 
6,029 
Severance pay fund
88 
79 
Other long-term assets
1,500 
772 
Total long-term assets
20,208 
13,432 
Total Assets
282,081 
307,336 
Current Liabilities:
 
 
Trade payables
18,356 
16,755 
Other payables and accrued expenses
18,526 
11,872 
Total current liabilities
36,882 
28,627 
Long-term Liabilities:
 
 
Long-term loan, net of discount and issuance costs
96,231 
23,097 
Employee benefit liabilities
2,590 
2,057 
Other long-term liabilities
4,033 
2,735 
Total long-term liabilities
102,854 
27,889 
Total Liabilities
139,736 
56,516 
Commitments and Contingencies
Shareholders’ Equity:
 
 
Ordinary shares - No par value, Unlimited shares authorized; Issued and outstanding: 87,066,446 shares and 83,778,581 shares at December 31, 2016 and December 31, 2015 respectively;
Additional paid-in capital
664,154 
640,406 
Accumulated other comprehensive loss
(1,883)
(1,505)
Accumulated deficit
(519,926)
(388,081)
Total shareholders’ equity
142,345 
250,820 
Total Liabilities and Shareholders’ Equity
$ 282,081 
$ 307,336 
Consolidated Balance Sheets (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Statement Of Financial Position [Abstract]
 
 
Common stock, par value
   
   
Common stock, shares authorized
Unlimited 
Unlimited 
Common stock, shares issued
87,066,446 
83,778,581 
Common stock, shares outstanding
87,066,446 
83,778,581 
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]
 
 
 
Net revenues
$ 82,888 
$ 33,087 
$ 15,490 
Cost of revenues
39,870 
20,610 
10,036 
Impairment of field equipment
6,412 
 
 
Gross profit
36,606 
12,477 
5,454 
Operating costs and expenses:
 
 
 
Research, development and clinical trials
41,467 
43,748 
40,381 
Sales and marketing
59,449 
38,861 
21,177 
General and administrative
51,007 
33,864 
24,052 
Total operating costs and expenses
151,923 
116,473 
85,610 
Operating loss
(115,317)
(103,996)
(80,156)
Financial expenses, net
(6,147)
(3,151)
(144)
Loss before income taxes
(121,464)
(107,147)
(80,300)
Income taxes
10,381 
4,434 
382 
Net loss
$ (131,845)
$ (111,581)
$ (80,682)
Basic and diluted net loss per ordinary share
$ (1.54)
$ (3.67)
$ (6.46)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
85,558,448 
30,401,603 
12,490,017 
Consolidated Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net loss
$ (131,845)
$ (111,581)
$ (80,682)
Other comprehensive loss, net of tax :
 
 
 
Change in foreign currency translation adjustments
10 
 
 
Pension benefit plan
(388)
(1,505)
 
Total comprehensive loss
$ (132,223)
$ (113,086)
$ (80,682)
Statements of Changes in Shareholders' Equity (USD $)
In Thousands, except Share data
Total
USD ($)
Over-Allotment
USD ($)
Series J Preferred Stock
USD ($)
Ordinary Shares
Ordinary Shares
Over-Allotment
Preferred Shares
Preferred Shares
Series J Preferred Stock
Additional Capital Paid-in
USD ($)
Additional Capital Paid-in
Over-Allotment
USD ($)
Additional Capital Paid-in
Series J Preferred Stock
USD ($)
Accumulated Other Comprehensive Loss
USD ($)
Accumulated Deficit
USD ($)
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 1
94,599 2
 
 
 
 
 
157,534 1
94,599 2
 
 
Issuance of shares, net (in shares)
 
 
 
 
7,876,195 1
 
4,068,500 2
 
 
 
 
 
Issuance of shares and options in respect of settlement, net of fair value of shares provided as indemnification (Note 14c) (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 and $38 for the years ended December 2015 and 2016
(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 
 
 
 
 
 
 
 
 
Share-based compensation to employees
21,441 
 
 
 
 
 
 
21,441 
 
 
 
 
Exercise of options and warrants
993 
 
 
 
 
 
 
993 
 
 
 
 
Exercise of options and warrants (in shares)
 
 
 
3,195,477 
 
 
 
 
 
 
 
 
Issuance of shares in connection with employee stock purchase plan
616 
 
 
 
 
 
 
616 
 
 
 
 
Issuance of shares in connection with employee stock purchase plan(in shares)
 
 
 
92,388 
 
 
 
 
 
 
 
 
Tax benefit from share-based award activity
698 
 
 
 
 
 
 
698 
 
 
 
 
Other comprehensive loss, net of tax benefit of $165 and $38 for the years ended December 2015 and 2016
(378)
 
 
 
 
 
 
 
 
 
(378)
 
Net loss
(131,845)
 
 
 
 
 
 
 
 
 
 
(131,845)
Balance at Dec. 31, 2016
$ 142,345 
 
 
 
 
 
 
$ 664,154 
 
 
$ (1,883)
$ (519,926)
Balance (in shares) at Dec. 31, 2016
 
 
 
87,066,446 
 
 
 
 
 
 
 
 
Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Other comprehensive loss, tax benefit
$ 38 
$ 165 
Series J Preferred Stock
 
 
Share issuance expenses
 
319 
Over-Allotment
 
 
Share issuance expenses
 
$ 15,742 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:
 
 
 
Net loss
$ (131,845)
$ (111,581)
$ (80,682)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
5,652 
3,153 
1,962 
Asset write-downs and impairment of field equipment
6,446 
46 
23 
Increase in accrued interest expense
 
672 
 
Share-based compensation to employees
22,139 
11,860 
4,624 
Excess tax benefits from share-based award activity
(698)
 
 
Increase in trade receivables
(6,339)
 
 
Amortization of discount (premium)
155 
329 
(19)
Decrease (increase) in receivables and prepaid expenses
243 
(5,088)
(1,192)
Increase in inventories
(11,955)
(10,148)
(1,554)
Increase in other long-term assets
(692)
(381)
(44)
Increase (decrease) in trade payables
1,601 
6,961 
(492)
Increase in other payables and accrued expenses
6,647 
3,579 
2,324 
Increase in employee benefit liabilities, net
97 
133 
42 
Increase in other long-term liabilities
957 
581 
764 
Net cash used in operating activities
(107,592)
(99,884)
(74,244)
Cash flows from investing activities:
 
 
 
Purchase of property and equipment
(5,674)
(4,667)
(849)
Purchase of field equipment
(11,990)
(5,604)
(1,470)
Decrease (increase) in restricted cash
(180)
(26)
1,117 
Proceeds from maturity of short-term investments
270,000 
104,000 
93,000 
Purchase of short-term investments
(239,341)
(208,998)
(137,980)
Net cash provided by (used in) investing activities
12,815 
(115,295)
(46,182)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of shares, net
616 
252,133 
 
Proceeds from long-term loan, net
72,887 
22,886 
 
Excess tax benefits from share-based award activity
698 
 
 
Proceeds from issuance of other long-term loans
 
 
54 
Repayment of other long-term loans
(70)
(63)
(63)
Exercise of options and warrants
993 
2,038 
2,154 
Purchase of shares in respect of settlement
 
(5)
 
Net cash provided by financing activities
75,124 
276,989 
2,145 
Effect of exchange rate changes on cash and cash equivalents
10 
 
 
Increase (decrease) in cash and cash equivalents
(19,643)
61,810 
(118,281)
Cash and cash equivalents at the beginning of the year
119,423 
57,613 
175,894 
Cash and cash equivalents at the end of the year
99,780 
119,423 
57,613 
Cash paid during the year for:
 
 
 
Income taxes
9,447 
1,489 
282 
Interest
6,595 
1,688 
25 
Non-cash investing and financing activities:
 
 
 
Purchase of property and equipment
 
 
$ 239 
Organization and Basis of Presentation
Organization and Basis of Presentation

Note 1: Organization and Basis of Presentation

 

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”).

 

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, revenue recognition and the estimations required in accrual base accounting, 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, except for share and per-share data.

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 U.S. dollar is the currency of the primary economic environment in which NovoCure Limited and certain subsidiaries operate. The Company’s reporting currency is U.S. dollars.

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 (ASC) 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.

For a subsidiary whose functional currency has been determined to be its local currency, assets and liabilities are translated at year-end exchange rates and statement of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity.

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, 2016 and 2015, 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, 2016, no impairment losses have been identified.

2. Restricted cash:

The Company has restricted cash used as security for the use of Company credit cards, presented in short-term assets. Additionally, the Company has pledged bank deposits to cover bank guarantees related to facility rental agreements, fleet lease agreements and customs payments presented in other long-term assets (see Note 12).

f. Trade Receivables:

Revenues from the use of Optune are recorded on an accrual basis for payers that meet the revenue recognition criteria for accrual basis where an agreement exists and collectability is reasonably assured. The Company considers receivables past due based on payment terms and reserve specific receivables if collectability is no longer reasonably assured. The Company evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed uncollectible, such balance is charged against the reserve. For the year ended December 31, 2016, the allowance for doubtful accounts is $0.

g. 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.

Inventory write-offs of $774, $0 and $0, respectively, were identified for the years ended December 31, 2016, 2015 and 2014.

h. 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. 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  18 to 36 months. 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, 2016, 2015 and 2014, write downs for $6,436 (see Note 7), $36 and $12, respectively, were identified.

j. 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, 2016, no impairment losses have been identified other than the impairment of field equipment described below in Note 7.

k. 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.

l. Revenue recognition:

The TTFields delivery 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 Optune has occurred, the fee 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 assesses whether the fee is fixed or determinable based on whether there is sufficient history with payers to reliably estimate their individual payment patterns or contractual arrangements exist and whether it can reliably estimate the amount that would be ultimately collected. Once the Company can reliably estimate the amounts that would be ultimately collected per payer and the above criteria are met, the Company recognizes revenues from the use of Optune on an accrual basis ratably over the lease term.  During 2016, the Company began to recognize net revenues on an accrual basis for certain payers in the amount of $8,458 that met the criteria above.    Revenues are recognized when cash is collected when the revenue criteria above are not met, such as when the price is not fixed or determinable or the collectability cannot be reasonably assured.  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.  The Company currently recognizes revenue from patients at the time cash is collected.

Deferred revenues include amounts invoiced for days of therapy to be provided in future periods.

Revenues are presented net of indirect taxes, which include excise taxes of $105, $1,457, and $1,010 for the years ended December 31, 2016, 2015 and 2014, respectively, and other indirect taxes of $867, $818 and $266 for the years ended December 31, 2016, 2015 and 2014, respectively.

m. 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: $1,675, $1,376 and $836 for the years ended December 31, 2016, 2015 and 2014, respectively. These estimates were determined by applying a ratio of costs to gross charges multiplied by the Company's gross charitable care charges.

n. Shipping and handling costs:

The Company does not bill its customers for shipping and handling costs associated with shipping Optune to its customers. These direct shipping and handling costs of $3,389, $1,385 and $553 for the years ended December 31, 2016, 2015 and 2014, 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 the value of awards granted 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 and Employee Share Purchase Plan. 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 NovoCure Limited’s initial public offering (“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 year 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.

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 receivables, 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 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, short-term investments and trade receivables.

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 2016, two payers represented $10,393,$7,010  or 13 %, 9 % of net revenues, respectively.  In 2015, the same 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.  Credit risk with respect to trade receivables is limited.

t. Retirement, pension and severance 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 historically has not and currently does not make any matching contributions to this 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, 2016, 2015 and, 2014 was $529, $404 and $205, respectively.

Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into employee pension plans to fund its severance liabilities. According to Section 14 of Israel Severance Pay Law, the Company makes deposits on behalf of its employees with respect to the Company’s severance liability and therefore no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who are not subject to Section 14, are provided for in the financial statements based upon the number of years of service and the latest monthly salary and the related deposits are recorded as an asset based on the cash surrender value. Severance expense for the years ended December 31, 2016, 2015 and 2014 amounted to $430, $356 and $307, respectively.

u. 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 (see Note 14 c).

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, 2016 and 2015, 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.

v. Other comprehensive loss:

The Company accounts for comprehensive loss in accordance with ASC 220, "Comprehensive Income". ASC 220 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, relates to a pension liability and foreign currency translation adjustments.

w. Going concern:

In 2016, the Company adopted ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), that provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The adoption of ASU 2014-15 don’t have any impact on the consolidated financial statements or related disclosures.

x. Recently issued accounting pronouncements:

In May 2014, the FASB issued Accounting Standards Update No. 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 FASB also agreed to allow entities to choose to adopt the standard as of the original effective date.  The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. 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 expects that the most significant impact relates to the accounting for revenue transactions whereby there is variable consideration.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In March 2016, FASB issued 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 is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

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 June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2022. The amendments in this update are effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements, footnote disclosures and employee benefit plans’ accounting.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The standard is effective on January 1, 2019. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements and footnote disclosures.

In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.  This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the timing of adoption and the effects of the adoption of this ASU on the 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,

 

 

 

2016

 

 

2015

 

Cash

 

$

29,915

 

 

$

75,421

 

Money market funds

 

 

69,865

 

 

 

44,002

 

Total cash and cash equivalents

 

$

99,780

 

 

$

119,423

 

 

 

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 $119,854 and $150,001, as of December 31, 2016 and 2015, respectively and their estimated fair value as of December 31, 2016 and 2015 was $119,825 and $149,978, respectively.

Receivables and Prepaid Expenses
Receivables and Prepaid Expenses

Note 4: Receivables and prepaid expenses

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Advances and receivables from suppliers

 

$

5,829

 

 

$

7,323

 

Government authorities

 

 

1,867

 

 

 

1,955

 

Prepaid expenses

 

 

2,238

 

 

 

1,290

 

Others

 

 

150

 

 

 

231

 

 

 

$

10,084

 

 

$

10,799

 

 

Inventories
Inventories

Note 5: Inventories

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Raw materials

 

$

5,243

 

 

$

3,518

 

Work in process

 

 

8,292

 

 

 

4,618

 

Finished goods

 

 

12,014

 

 

 

5,458

 

 

 

$

25,549

 

 

$

13,594

 

 

Property and Equipment, Net
Property and Equipment, Net

Note 6: Property and equipment, net

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Cost:

 

 

 

 

 

 

 

 

Computers and laboratory equipment

 

$

10,121

 

 

$

6,734

 

Office furniture

 

 

1,931

 

 

 

1,245

 

Production equipment

 

 

1,179

 

 

 

857

 

Leasehold improvements

 

 

2,885

 

 

 

1,653

 

Total cost

 

$

16,116

 

 

$

10,489

 

Accumulated depreciation and amortization

 

 

(6,304

)

 

 

(3,937

)

Depreciated cost

 

$

9,812

 

 

$

6,552

 

 

Depreciation expense was $1,673, $1,348 and $886 for the years ended December 31, 2016, 2015 and 2014, respectively.

In 2015, the Company implemented a new Enterprise Resource Planning (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, 2016 and 2015, the Company capitalized an accumulated amount of $4,742 and $2,803, respectively. Amortization for the year ended December 31, 2016 and 2015 was $731 and 250, respectively.

Field Equipment, Net
Field Equipment, Net

Note 7: Field equipment, net

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Field equipment

 

$

11,167

 

 

$

9,226

 

Less: accumulated depreciation

 

 

(2,359

)

 

 

(3,197

)

Field equipment, net

 

$

8,808

 

 

$

6,029

 

 

Depreciation expense was $3,248, $1,555 and $1,076 for the years ended December 31, 2016, 2015 and 2014, respectively. Write downs of $6,436, $36, and $12 were identified for the years ended December 31, 2016, 2015 and 2014, respectively.

 

The Company received U.S. Food and Drug Administration (“FDA”) approval on its Premarket Approval supplement application to market its second generation Optune system in the United States on July 13, 2016. The Company made the second generation Optune system available to all patients in the United States during the quarter ended September 30, 2016.  Manufacturing of the first generation Optune system has been terminated. In 2016, the Company recorded an impairment loss with respect to the write-down of first generation Optune system field equipment in the amount of $6,412 (finished goods and production stage goods in the amount of $4,830 and $1,582, respectively) presented in cost of revenues.

Other Payables and Accrued Expenses
Other Payables and Accrued Expenses

Note 8: Other payables and accrued expenses

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Employees and payroll accruals

 

$

7,541

 

 

$

8,258

 

Taxes payable and others

 

 

3,142

 

 

 

2,850

 

Provision for settlement (Note 14c)

 

 

5,500

 

 

 

-

 

Deferred revenues

 

 

2,267

 

 

 

52

 

Other

 

 

76

 

 

 

712

 

 

 

$

18,526

 

 

$

11,872

 

 

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, 2016 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, 2016:

 

 

 

 

Asset Category:

 

Asset

allocation (%)

 

Debt Securities

 

 

28

 

Real Estate

 

 

22

 

Equity Securities

 

 

27

 

Others

 

 

23

 

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, 2016 and 2015:

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

6,223

 

 

$

-

 

Interest cost

 

 

64

 

 

 

47

 

Company service cost

 

 

498

 

 

 

312

 

Employee contributions

 

 

321

 

 

 

189

 

Prior service cost

 

 

-

 

 

 

158

 

Benefits paid

 

 

422

 

 

 

4,023

 

Actuarial loss

 

 

713

 

 

 

1,494

 

Projected benefit obligation at end of year

 

$

8,241

 

 

$

6,223

 

Change in Plan Assets

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

4,433

 

 

$

-

 

Actual return on plan assets

 

 

320

 

 

 

(63

)

Employer contributions

 

 

482

 

 

 

284

 

Employee contributions

 

 

321

 

 

 

189

 

Benefits paid

 

 

422

 

 

 

4,023

 

Fair value of plan assets at end of year

 

$

5,978

 

 

$

4,433

 

 

 

 

 

 

 

 

 

 

Funded Status at End of year

 

 

 

 

 

 

 

 

Excess of obligation over assets

 

$

(2,263

)

 

$

(1,790

)

 

 

 

 

 

 

 

 

 

Change in Accrued Benefit Liability

 

 

 

 

 

 

 

 

Accrued benefit asset/(liability) at beginning of year

 

$

(1,790

)

 

$

-

 

Company contributions made during year

 

 

482

 

 

 

284

 

Net periodic benefit cost for year

 

 

(529

)

 

 

(404

)

Net decrease in accumulated other comprehensive loss

 

 

(426

)

 

 

(1,670

)

Accrued benefit liability at end of year

 

$

(2,263

)

 

$

(1,790

)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Non - current plan assets

 

$

5,979

 

 

$

4,433

 

Non - current liability

 

 

8,242

 

 

 

6,223

 

Accrued benefit liability at end of year

 

$

(2,263

)

 

$

(1,790

)

Projected Benefit Payments

 

 

 

 

 

 

 

 

Projected year 1

 

$

148

 

 

$

8

 

Projected year 2

 

 

150

 

 

 

13

 

Projected year 3

 

 

152

 

 

 

19

 

Projected year 4

 

 

155

 

 

 

25

 

Projected year 5

 

 

1,069

 

 

 

32

 

Projected year 6-10

 

$

928

 

 

$

264

 

 

The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2016. The level of inputs used to measure fair value was Level 2.

 

 

 

Year ended

December 31,

 

 

 

2016

 

 

2015

 

Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

Service cost

 

$

498

 

 

$

312

 

Interest cost (income)

 

 

(21

)

 

 

47

 

Expected return on plan assets

 

 

(49

)

 

 

(38

)

Amortization of prior service costs

 

 

87

 

 

 

14

 

Amortization of transition obligation

 

 

14

 

 

 

69

 

Total net periodic benefit cost

 

$

529

 

 

$

404

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions:

 

 

 

 

 

 

 

 

Discount rate as of December 31

 

 

0.60%

 

 

 

1.00%

 

Expected long-term rate of return on assets

 

 

0.60%

 

 

 

1.00%

 

Rate of compensation increase

 

 

1.00%

 

 

 

1.00%

 

Mortality and disability assumptions   (*)

 

BVG 2015 GT

 

 

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 2015, the Company entered into a five-year term loan agreement (the “Term Loan Credit Facility”) with a lender to draw up to $100,000. In January 2015, the Company drew $25,000 from the lender. The Company had the option to draw the remaining $75,000 at any time through June 30, 2016. On June 30, 2016, the Company provided to the lender a drawdown notice for the remaining $75,000, and it received the funds in July 2016. As of December 31, 2016, there was $100,000 principal outstanding under the Term Loan Credit Facility.

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 anniversaries, respectively, from the initial funding date. The entire outstanding principal loan is due in January 2020. The loan is secured by a first priority security interest in substantially all assets of the Company. The Term Loan Credit Facility 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, 2016, the Company was in compliance with such covenants.

As of December 31, 2016 and 2015, the total discount of $1,699 and $491, respectively, and additional issuance costs of $2,070 and $1,739, respectively, 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,

 

 

 

2016

 

 

2015

 

Deferred rent liability

 

$

906

 

 

$

785

 

Leasehold improvements financing and other

   (see a and b below)

 

 

193

 

 

 

254

 

Unrecognized tax benefits (Note 13e)

 

 

2,400

 

 

 

1,565

 

Other

 

 

534

 

 

 

131

 

 

 

$

4,033

 

 

$

2,735

 

 

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, 2016 and 2015, 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, the Company entered into an agreement with the landlord of one of its facilities in the United States and in January 2014, the Company entered into an agreement with a leasing company for an aggregate 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, 2016 are as follows:

 

2017

 

$

70

 

2018

 

 

77

 

2019

 

 

27

 

2020

 

 

24

 

2021

 

 

26

 

Thereafter

 

 

39

 

 

 

 

263

 

Less: current portion of long-term loans

 

 

(70

)

Long-term loans, net of current portion

 

$

193

 

 

Commitments and Contingent Liabilities
Commitments and Contingent Liabilities

Note 12: 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 2019.

Future minimum lease payments under non-cancelable operating leases as of December 31, 2016, are as follows:

 

2017

$

3,276

 

2018

 

2,404

 

2019

 

2,186

 

2020

 

2,019

 

2021

 

1,594

 

Thereafter

 

2,714

 

 

$

14,193

 

 

Lease and rental expense for the years ended December 31, 2016, 2015 and 2014 was $2,748, $2,194, and $1,794, respectively.

As of December 31, 2016 and 2015 the Company pledged bank deposits of $807 and $133, 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 $955 and $283, 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 Company believes that the complaints are without merit and plans to defend the lawsuits vigorously.  The Company has not accrued any amounts in respect of these lawsuits, as the amount of any liability is not probable or the amount cannot be reasonably estimated.

 

Income Taxes
Income Taxes

Note 13: Income taxes

a. The provision for income taxes from continuing operations is comprised of:

Loss before income taxes:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

United States (U.S.)

 

$

(80,972

)

 

$

(55,087

)

 

$

(22,015

)

Non-U.S.

 

 

(40,492

)

 

 

(52,060

)

 

 

(58,285

)

 

 

$

(121,464

)

 

$

(107,147

)

 

$

(80,300

)

 

Income taxes expense:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

6,501

 

 

$

891

 

 

$

65

 

Non-U.S.

 

 

3,863

 

 

 

3,678

 

 

 

324

 

Total current

 

 

10,364

 

 

 

4,569

 

 

 

389

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1

 

 

$

-

 

 

$

-

 

Non-U.S.

 

 

16

 

 

 

(135

)

 

 

(7

)

Total deferred

 

 

17

 

 

 

(135

)

 

 

(7

)

Total income taxes  provision

 

$

10,381

 

 

$

4,434

 

 

$

382

 

 

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

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

U.S Statutory Income Taxes Rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

Non-deductible expenses

 

 

(2.5

)

 

 

(2.4

)

 

 

(1.5

)

Foreign taxes rate differential

 

 

(14.2

)

 

 

(19.2

)

 

 

(26.5

)

Change in valuation allowance

 

 

(30.0

)

 

 

(18.2

)

 

 

(9.0

)

State income taxes

 

 

2.3

 

 

 

1.8

 

 

 

1.2

 

Change in excess taxes benefit

 

 

1.2

 

 

 

-

 

 

 

-

 

Unrecognized taxes expense (benefit)

 

 

(0.7

)

 

 

(1.2

)

 

 

0.3

 

Other

 

 

0.4

 

 

 

0.1

 

 

 

-

 

Effective taxes rate

 

 

(8.5

)%

 

 

(4.1

)%

 

 

(0.5

)%

 

The Company's tax rate is affected by the tax rates in the jurisdictions outside the U.S. in which the Company operates. The jurisdictional location of earnings is a significant component of our effective tax rate as the tax rates outside of the U.S. are generally lower 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,

 

 

 

2016

 

 

2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

$

18,770

 

 

$

11,504

 

Revenue recognition (timing differences)

 

 

46,953

 

 

 

21,972

 

Net operating loss carryforwards

 

 

577

 

 

347

 

Excess Tax Benefit

 

 

3,510

 

 

 

-

 

Deferred Revenue

 

 

879

 

 

 

-

 

Other temporary differences

 

 

1,481

 

 

 

952

 

Total gross deferred taxes assets

 

$

72,170

 

 

$

34,775

 

Less: valuation allowance

 

 

(70,061

)

 

 

(33,476

)

Total deferred taxes assets

 

$

2,109

 

 

$

1,299

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

1,789

 

 

 

1,008

 

Total gross deferred taxes liabilities

 

$

1,789

 

 

$

1,008

 

 

 

 

 

 

 

 

 

 

Net deferred taxes assets

 

$

320

 

 

$

291

 

 

d. Carryforward loss:

As of December 31, 2016, the Company's Luxembourg subsidiary has $1.9 million of net operating loss carry forwards (NOLs) available for utilization in future years.  

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Balance at beginning of the year

 

$

1,565

 

 

$

308

 

 

$

549

 

Additions for taxes positions related current year

 

 

1,088

 

 

 

848

 

 

 

79

 

Additions for taxes positions related to prior years

 

 

58

 

 

 

409

 

 

 

-

 

Reduction related to lapse of applicable statute of

   limitations

 

 

(311

)

 

 

-

 

 

 

(320

)

Balance at the end of the year

 

$

2,400

 

 

$

1,565

 

 

$

308

 

 

The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016, 2015 and 2014, the Company accrued $31, $26 and $2, respectively, for interest and penalties expenses related to uncertain tax positions.

The Company's Israeli subsidiary is currently under an income tax audit for the tax year 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,

 

 

 

2016

 

 

2015

 

Ordinary shares no par value

 

 

87,066,446

 

 

 

83,778,581

 

a. Investment rounds:

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.  Each holder of ordinary shares is entitled to one vote per ordinary share.

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. During 2016, the settlement options were exercised by the third party.

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 was 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 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 which was paid in 2015 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.  For the year ended December 31, 2016, the Company recorded a provision for a milestone payment of $5,500 in general and administrative expense as it is probable that the Company will meet the Cumulative Net Sales milestone, partially offset by a cash payment of $1,945 that the Founder elected to make in 2016, to partially fulfill his indemnification obligation described above.

d. Warrants:

As part of the Series 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 D and E Convertible Preferred shares are as follows as of December 31, 2016 and 2015:

 

 

 

Warrants for ordinary shares

 

 

Exercise price

per share

 

Expiration date

 

2016

 

 

2015

 

 

 

 

 

May 8, 2016 (1)

 

 

-

 

 

 

1,108,050

 

 

$

3.59

 

July 31, 2017

 

 

542,280

 

 

 

556,678

 

 

 

3.59

 

January 22, 2018

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

July 21, 2018

 

 

834,355

 

 

 

834,355

 

 

$

3.59

 

 

 

 

1,933,313

 

 

 

3,055,761

 

 

 

 

 

 

(1)

In the years ended December 31, 2016 and 2015, warrants to purchase 1,122,448 and 570,344 ordinary shares, respectively, were exercised, resulting in the issuance of 864,341 and 570,344ordinary shares, respectively.

Pursuant to a credit facility that the Company entered into in January 2013 (the “Credit Agreement”) which was fully paid in December 2013, the Company issued to the lenders under the Credit Agreement 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, resulting in the issuance of 315,155   ordinary shares.

e. Share option and employee share purchase 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, 2016, 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, 2016.  As a result, the number of shares available for issuance under the 2015 Plan increased from 16,251,143 shares to 19,730,105 shares. As of December 31, 2016, 16,136,439 ordinary shares are available for grant under the 2015 Plan.

In August, 2015, the Company’s board of directors adopted an employee share purchase plan (“ESPP”), which was approved by the Company’s shareholders 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 began its offerings under the ESPP on August 1, 2016. The Company issued 92,388 ordinary shares for the plan period ended December 31, 2016.  

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, 2016, the number of shares available for issuance under the ESPP increased from 1,667,785 shares to 2,537,526 shares. As of December 31, 2016, 2,445,138 ordinary shares are available for offering under the ESPP.

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,

 

 

 

2016

 

 

2015

 

 

2014

 

ESOP

 

 

 

 

 

 

 

 

 

 

 

 

Expected term (years)

 

6.25

 

 

6.25

 

 

 

6.25

 

Expected volatility

 

58.4%-61.7%

 

 

59.0%-65.8%

 

 

73.1%-75.3%

 

Risk-free interest rate

 

1.23%-1.88%

 

 

1.74%-2.05%

 

 

1.9%-2.3%

 

Dividend yield

 

 

0.00

%

 

 

0.00

%

 

 

0.00

%

ESPP

 

 

 

 

 

 

 

 

 

 

 

 

Expected term (years)

 

0.42

 

 

 

-

 

 

 

-

 

Expected volatility

 

 

70.45

%

 

 

-

 

 

 

-

 

Risk-free interest rate

 

 

0.40

%

 

 

-

 

 

 

-

 

Dividend yield

 

 

0.00

%

 

 

-

 

 

 

-

 

 

A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2016 and changes during the year ended on that date is presented below:

 

 

 

Year ended December 31, 2016

 

 

 

Number of

options

 

 

Weighted

average

exercise

price

 

 

Aggregate

intrinsic

value

 

Outstanding at beginning of year

 

 

10,134,829

 

 

$

8.20

 

 

 

 

 

Granted

 

 

2,596,600

 

 

$

12.97

 

 

 

 

 

Exercised

 

 

(1,045,187

)

 

$

0.51

 

 

 

 

 

Forfeited and cancelled

 

 

(308,888

)

 

$

16.81

 

 

 

 

 

Outstanding at end of year

 

 

11,377,354

 

 

$

9.76

 

 

$

20,302

 

Exercisable options

 

 

5,979,150

 

 

$

5.78

 

 

 

19,664

 

Vested and expected to vest

 

 

11,163,577

 

 

$

9.71

 

 

$

20,256

 

 

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2016, 2015 and 2014, was comprised as follows:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of revenues

 

$

623

 

 

$

174

 

 

$

32

 

Research, development and clinical trials

 

 

3,155

 

 

 

2,529

 

 

 

820

 

Sales and marketing

 

 

5,111

 

 

 

2,496

 

 

 

1,104

 

General and administrative

 

 

12,552

 

 

 

6,661

 

 

 

2,668

 

Total share-based compensation expense

 

$

21,441

 

 

$

11,860

 

 

$

4,624

 

 

As of December 31, 2016, there were unrecognized compensation costs of $20,030, which are expected to be recognized over a weighted average period of approximately 2.66 years.

The weighted average grant date fair values of the Company’s options granted during the years ended December 31, 2016, 2015 and 2014 were $7.37, $10.64 and $5.08 per share, respectively. The weighted average grant date fair values of the Company’s unvested options for the years ended December 31, 2016, 2015 and 2014 were $8.30, $8.66 and $4.26 per share, respectively, and the unvested options for the years ended December 31, 2016, 2015 and 2014 were 5,398,204, 4,613,423 and 2,934,974, respectively.

The weighted average grant date fair values of the Company’s vested options during the years ended December 31, 2016, 2015 and 2014 were $7.30, $3.66 and $2.89, respectively, and the vested options for the years ended December 31, 2016,2015 and 2014 were 1,572,238,  1,235,880 and 1,166,974, respectively. The weighted average grant date fair values of the Company’s options forfeited and cancelled during the years ended December 31, 2016, 2015 and 2014 were $ 9.72, $5.73 and $3.59, respectively.

The aggregate intrinsic values for the options exercised during the years ended December 31, 2016, 2015 and 2014 were $7,673, $3,546 and $3,339, 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 $7.85, $22.36 and $7.73 per share as of December 31, 2016, 2015, and 2014, respectively.

 

 

The options outstanding as of December 31, 2016 are as follows:

 

Exercise price

 

 

Number

of options

outstanding

as of

December 31, 2016

 

 

Weighted

average

remaining

contractual

term

 

 

Number

of options

exercisable

as of

December 31, 2016

 

 

Weighted

average

remaining

contractual term

 

$

 

 

 

 

 

 

(years)

 

 

 

 

 

 

(years)

 

 

0.17

 

 

 

422,735

 

 

 

0.24

 

 

 

422,735

 

 

 

0.24

 

 

0.23

 

 

 

423,019

 

 

 

2.39

 

 

 

423,019

 

 

 

2.39

 

 

0.38

 

 

 

488,331

 

 

 

3.78

 

 

 

488,331

 

 

 

3.78

 

 

3.44

 

 

 

1,779,072

 

 

 

4.88

 

 

 

1,779,072

 

 

 

4.88

 

 

6.39

 

 

 

224,025

 

 

 

9.82

 

 

 

-

 

 

 

-

 

 

6.72

 

 

 

838,725

 

 

 

5.67

 

 

 

838,725

 

 

 

5.67

 

 

6.83

 

 

 

91,558

 

 

 

5.95

 

 

 

91,558

 

 

 

5.95

 

 

7.03

 

 

 

613,174

 

 

 

6.14

 

 

 

460,594

 

 

 

6.14

 

 

7.04

 

 

 

135,992

 

 

 

6.46

 

 

 

101,973

 

 

 

6.46

 

 

7.28

 

 

 

129,488

 

 

 

6.66

 

 

 

97,098

 

 

 

6.66

 

 

7.48

 

 

 

491,949

 

 

 

7.14

 

 

 

250,380

 

 

 

7.13

 

 

7.52

 

 

 

108,491

 

 

 

7.24

 

 

 

54,967

 

 

 

7.23

 

 

7.58

 

 

 

52,032

 

 

 

7.48

 

 

 

26,012

 

 

 

7.48

 

 

7.73

 

 

 

428,096

 

 

 

7.77

 

 

 

215,510

 

 

 

7.77

 

 

11.39

 

 

 

395,675

 

 

 

9.35

 

 

 

-

 

 

 

-

 

 

11.44

 

 

 

228,050

 

 

 

9.58

 

 

 

-

 

 

 

-

 

 

11.46

 

 

 

1,173,675

 

 

 

9.16

 

 

 

-

 

 

 

-

 

 

14.37

 

 

 

1,556,881

 

 

 

8.16

 

 

 

398,227

 

 

 

8.15

 

 

15.60

 

 

 

141,606

 

 

 

8.31

 

 

 

35,395

 

 

 

8.31

 

 

20.20

 

 

 

114,145

 

 

 

8.81

 

 

 

29,513

 

 

 

8.81

 

 

21.90

 

 

 

489,800

 

 

 

9.04

 

 

 

-

 

 

 

-

 

 

22.00

 

 

 

834,035

 

 

 

8.76

 

 

 

211,841

 

 

 

8.76

 

 

27.50

 

 

 

216,800

 

 

 

8.97

 

 

 

54,200

 

 

 

8.97

 

 

 

 

 

 

11,377,354

 

 

 

6.84

 

 

 

5,979,150

 

 

 

5.23

 

      

Financial Expenses, Net
Financial Expenses, Net

Note 15: Financial expenses, net

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Financial expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(5,937

)

 

$

(2,373

)

 

$

(41

)

Amortization of credit facility costs

 

 

(667

)

 

 

(329

)

 

 

-

 

Foreign currency transaction losses

 

 

(396

)

 

 

(356

)

 

 

(104

)

Others

 

 

(318

)

 

 

(177

)

 

 

(142

)

 

 

$

(7,318

)

 

$

(3,235

)

 

$

(287

)

Financial income:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of treasury bills premium

 

$

512

 

 

$

-

 

 

$

-

 

Interest income

 

 

659

 

 

 

84

 

 

 

143

 

 

 

$

1,171

 

 

$

84

 

 

$

143

 

Total financial expenses, net

 

$

(6,147

)

 

$

(3,151

)

 

$

(144

)

 

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,

 

 

 

2016

 

 

2015

 

 

2014

 

Net loss attributable to ordinary shares as reported

 

$

(131,845

)

 

$

(111,581

)

 

$

(80,682

)

Shares used in computing net loss per ordinary

   share, basic and diluted

 

 

85,558,448

 

 

 

30,401,603

 

 

 

12,490,017

 

Net loss per ordinary share, basic and diluted

 

$

(1.54

)

 

$

(3.67

)

 

$

(6.46

)

 

For the years ended December 31, 2016, 2015 and 2014, 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 currently 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,

 

 

 

2016

 

 

2015

 

United States

 

$

11,981

 

 

$

6,600

 

Switzerland

 

 

4,346

 

 

 

4,204

 

Israel

 

 

1,915

 

 

 

1,376

 

Others

 

 

378

 

 

 

401

 

 

 

$

18,620

 

 

$

12,581

 

 

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

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

United States

 

$

72,771

 

 

$

30,961

 

 

$

14,951

 

EMEA (*)

 

 

10,028

 

 

 

2,070

 

 

 

539

 

Japan

 

 

89

 

 

 

56

 

 

 

-

 

 

 

$

82,888

 

 

$

33,087

 

 

$

15,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) including Germany

 

$

9,799

 

 

$

1,803

 

 

$

408

 

 

Selected Quarterly Financial Information (Unaudited)
Selected Quarterly Financial Information (Unaudited)

Note 19: Selected quarterly financial information (Unaudited)

 

 

 

2016

 

 

 

Three months ended

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Net revenues

 

$

30,242

 

 

$

21,674

 

 

$

17,919

 

 

$

13,053

 

Gross profit

 

$

19,268

 

 

$

10,556

 

 

$

1,710

 

 

$

5,071

 

Operating loss

 

$

(17,877

)

 

$

(28,265

)

 

$

(37,237

)

 

$

(31,938

)

Net loss

 

$

(22,168

)

 

$

(33,628

)

 

$

(40,612

)

 

$

(35,437

)

Basic and diluted net loss per ordinary share

 

$

(0.26

)

 

$

(0.39

)

 

$

(0.48

)

 

$

(0.42

)

Weighted average number of ordinary shares used

   in computing basic and diluted net loss per share

 

 

86,760,316

 

 

 

85,774,874

 

 

 

85,274,683

 

 

 

84,397,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

Three months ended

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Net revenues

 

$

12,383

 

 

$

8,953

 

 

$

6,543

 

 

$

5,208

 

Gross profit

 

$

6,079

 

 

$

3,294

 

 

$

1,793

 

 

$

1,311

 

Operating loss

 

$

(30,606

)

 

$

(24,238

)

 

$

(27,206

)

 

$

(21,946

)

Net loss

 

$

(32,928

)

 

$

(26,023

)

 

$

(29,357

)

 

$

(23,273

)

Basic and diluted net loss per ordinary share

 

$

(0.39

)

 

$

(2.09

)

 

$

(2.36

)

 

$

(1.77

)

Weighted average number of ordinary shares used

   in computing basic and diluted net loss per share

 

 

83,607,037

 

 

 

12,431,586

 

 

 

12,427,442

 

 

 

13,140,321

 

 

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, revenue recognition and the estimations required in accrual base accounting, 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, except for share and per-share data.

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 U.S. dollar is the currency of the primary economic environment in which NovoCure Limited and certain subsidiaries operate. The Company’s reporting currency is U.S. dollars.

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 (ASC) 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.

For a subsidiary whose functional currency has been determined to be its local currency, assets and liabilities are translated at year-end exchange rates and statement of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity.

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, 2016 and 2015, 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, 2016, no impairment losses have been identified.

2. Restricted cash:

The Company has restricted cash used as security for the use of Company credit cards, presented in short-term assets. Additionally, the Company has pledged bank deposits to cover bank guarantees related to facility rental agreements, fleet lease agreements and customs payments presented in other long-term assets (see Note 12).

f. Trade Receivables:

Revenues from the use of Optune are recorded on an accrual basis for payers that meet the revenue recognition criteria for accrual basis where an agreement exists and collectability is reasonably assured. The Company considers receivables past due based on payment terms and reserve specific receivables if collectability is no longer reasonably assured. The Company evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed uncollectible, such balance is charged against the reserve. For the year ended December 31, 2016, the allowance for doubtful accounts is $0.

g. 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.

Inventory write-offs of $774, $0 and $0, respectively, were identified for the years ended December 31, 2016, 2015 and 2014.

h. 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

 

j. 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, 2016, no impairment losses have been identified other than the impairment of field equipment described below in Note 7.

k. 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.

l. Revenue recognition:

The TTFields delivery 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 Optune has occurred, the fee 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 assesses whether the fee is fixed or determinable based on whether there is sufficient history with payers to reliably estimate their individual payment patterns or contractual arrangements exist and whether it can reliably estimate the amount that would be ultimately collected. Once the Company can reliably estimate the amounts that would be ultimately collected per payer and the above criteria are met, the Company recognizes revenues from the use of Optune on an accrual basis ratably over the lease term.  During 2016, the Company began to recognize net revenues on an accrual basis for certain payers in the amount of $8,458 that met the criteria above.    Revenues are recognized when cash is collected when the revenue criteria above are not met, such as when the price is not fixed or determinable or the collectability cannot be reasonably assured.  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.  The Company currently recognizes revenue from patients at the time cash is collected.

Deferred revenues include amounts invoiced for days of therapy to be provided in future periods.

Revenues are presented net of indirect taxes, which include excise taxes of $105, $1,457, and $1,010 for the years ended December 31, 2016, 2015 and 2014, respectively, and other indirect taxes of $867, $818 and $266 for the years ended December 31, 2016, 2015 and 2014, respectively.

m. 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: $1,675, $1,376 and $836 for the years ended December 31, 2016, 2015 and 2014, respectively. These estimates were determined by applying a ratio of costs to gross charges multiplied by the Company's gross charitable care charges.

n. Shipping and handling costs:

The Company does not bill its customers for shipping and handling costs associated with shipping Optune to its customers. These direct shipping and handling costs of $3,389, $1,385 and $553 for the years ended December 31, 2016, 2015 and 2014, 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 the value of awards granted 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 and Employee Share Purchase Plan. 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 NovoCure Limited’s initial public offering (“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 year 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.

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 receivables, 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 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, short-term investments and trade receivables.

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 2016, two payers represented $10,393,$7,010  or 13 %, 9 % of net revenues, respectively.  In 2015, the same 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.  Credit risk with respect to trade receivables is limited.

t. Retirement, pension and severance 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 historically has not and currently does not make any matching contributions to this 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, 2016, 2015 and, 2014 was $529, $404 and $205, respectively.

Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into employee pension plans to fund its severance liabilities. According to Section 14 of Israel Severance Pay Law, the Company makes deposits on behalf of its employees with respect to the Company’s severance liability and therefore no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who are not subject to Section 14, are provided for in the financial statements based upon the number of years of service and the latest monthly salary and the related deposits are recorded as an asset based on the cash surrender value. Severance expense for the years ended December 31, 2016, 2015 and 2014 amounted to $430, $356 and $307, respectively.

u. 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 (see Note 14 c).

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, 2016 and 2015, 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.

v. Other comprehensive loss:

The Company accounts for comprehensive loss in accordance with ASC 220, "Comprehensive Income". ASC 220 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, relates to a pension liability and foreign currency translation adjustments.

w. Going concern:

In 2016, the Company adopted ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), that provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The adoption of ASU 2014-15 don’t have any impact on the consolidated financial statements or related disclosures.

x. Recently issued accounting pronouncements:

In May 2014, the FASB issued Accounting Standards Update No. 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 FASB also agreed to allow entities to choose to adopt the standard as of the original effective date.  The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. 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 expects that the most significant impact relates to the accounting for revenue transactions whereby there is variable consideration.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In March 2016, FASB issued 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 is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

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 June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2022. The amendments in this update are effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements, footnote disclosures and employee benefit plans’ accounting.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The standard is effective on January 1, 2019. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements and footnote disclosures.

In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.  This standard requires the presentation of the statement of cash flows to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the timing of adoption and the effects of the adoption of this ASU on the consolidated financial statements.

i. 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  18 to 36 months. 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, 2016, 2015 and 2014, write downs for $6,436 (see Note 7), $36 and $12, respectively, were 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,

 

 

 

2016

 

 

2015

 

Cash

 

$

29,915

 

 

$

75,421

 

Money market funds

 

 

69,865

 

 

 

44,002

 

Total cash and cash equivalents

 

$

99,780

 

 

$

119,423

 

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Advances and receivables from suppliers

 

$

5,829

 

 

$

7,323

 

Government authorities

 

 

1,867

 

 

 

1,955

 

Prepaid expenses

 

 

2,238

 

 

 

1,290

 

Others

 

 

150

 

 

 

231

 

 

 

$

10,084

 

 

$

10,799

 

 

Inventories (Tables)
Schedule of Inventories

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Raw materials

 

$

5,243

 

 

$

3,518

 

Work in process

 

 

8,292

 

 

 

4,618

 

Finished goods

 

 

12,014

 

 

 

5,458

 

 

 

$

25,549

 

 

$

13,594

 

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Cost:

 

 

 

 

 

 

 

 

Computers and laboratory equipment

 

$

10,121

 

 

$

6,734

 

Office furniture

 

 

1,931

 

 

 

1,245

 

Production equipment

 

 

1,179

 

 

 

857

 

Leasehold improvements

 

 

2,885

 

 

 

1,653

 

Total cost

 

$

16,116

 

 

$

10,489

 

Accumulated depreciation and amortization

 

 

(6,304

)

 

 

(3,937

)

Depreciated cost

 

$

9,812

 

 

$

6,552

 

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Field equipment

 

$

11,167

 

 

$

9,226

 

Less: accumulated depreciation

 

 

(2,359

)

 

 

(3,197

)

Field equipment, net

 

$

8,808

 

 

$

6,029

 

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Employees and payroll accruals

 

$

7,541

 

 

$

8,258

 

Taxes payable and others

 

 

3,142

 

 

 

2,850

 

Provision for settlement (Note 14c)

 

 

5,500

 

 

 

-

 

Deferred revenues

 

 

2,267

 

 

 

52

 

Other

 

 

76

 

 

 

712

 

 

 

$

18,526

 

 

$

11,872

 

 

Employee Benefit Obligations (Tables)

The targeted allocation for these funds is as follows:

 

Asset Allocation by Category as of December 31, 2016:

 

 

 

 

Asset Category:

 

Asset

allocation (%)

 

Debt Securities

 

 

28

 

Real Estate

 

 

22

 

Equity Securities

 

 

27

 

Others

 

 

23

 

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, 2016 and 2015:

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

6,223

 

 

$

-

 

Interest cost

 

 

64

 

 

 

47

 

Company service cost

 

 

498

 

 

 

312

 

Employee contributions

 

 

321

 

 

 

189

 

Prior service cost

 

 

-

 

 

 

158

 

Benefits paid

 

 

422

 

 

 

4,023

 

Actuarial loss

 

 

713

 

 

 

1,494

 

Projected benefit obligation at end of year

 

$

8,241

 

 

$

6,223

 

Change in Plan Assets

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

4,433

 

 

$

-

 

Actual return on plan assets

 

 

320

 

 

 

(63

)

Employer contributions

 

 

482

 

 

 

284

 

Employee contributions

 

 

321

 

 

 

189

 

Benefits paid

 

 

422

 

 

 

4,023

 

Fair value of plan assets at end of year

 

$

5,978

 

 

$

4,433

 

 

 

 

 

 

 

 

 

 

Funded Status at End of year

 

 

 

 

 

 

 

 

Excess of obligation over assets

 

$

(2,263

)

 

$

(1,790

)

 

 

 

 

 

 

 

 

 

Change in Accrued Benefit Liability

 

 

 

 

 

 

 

 

Accrued benefit asset/(liability) at beginning of year

 

$

(1,790

)

 

$

-

 

Company contributions made during year

 

 

482

 

 

 

284

 

Net periodic benefit cost for year

 

 

(529

)

 

 

(404

)

Net decrease in accumulated other comprehensive loss

 

 

(426

)

 

 

(1,670

)

Accrued benefit liability at end of year

 

$

(2,263

)

 

$

(1,790

)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Non - current plan assets

 

$

5,979

 

 

$

4,433

 

Non - current liability

 

 

8,242

 

 

 

6,223

 

Accrued benefit liability at end of year

 

$

(2,263

)

 

$

(1,790

)

Projected Benefit Payments

 

 

 

 

 

 

 

 

Projected year 1

 

$

148

 

 

$

8

 

Projected year 2

 

 

150

 

 

 

13

 

Projected year 3

 

 

152

 

 

 

19

 

Projected year 4

 

 

155

 

 

 

25

 

Projected year 5

 

 

1,069

 

 

 

32

 

Projected year 6-10

 

$

928

 

 

$

264

 

 

The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2016. The level of inputs used to measure fair value was Level 2.

 

 

 

Year ended

December 31,

 

 

 

2016

 

 

2015

 

Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

Service cost

 

$

498

 

 

$

312

 

Interest cost (income)

 

 

(21

)

 

 

47

 

Expected return on plan assets

 

 

(49

)

 

 

(38

)

Amortization of prior service costs

 

 

87

 

 

 

14

 

Amortization of transition obligation

 

 

14

 

 

 

69

 

Total net periodic benefit cost

 

$

529

 

 

$

404

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions:

 

 

 

 

 

 

 

 

Discount rate as of December 31

 

 

0.60%

 

 

 

1.00%

 

Expected long-term rate of return on assets

 

 

0.60%

 

 

 

1.00%

 

Rate of compensation increase

 

 

1.00%

 

 

 

1.00%

 

Mortality and disability assumptions   (*)

 

BVG 2015 GT

 

 

BVG 2010 GT

 

 

(*)

Mortality data used for actuarial calculation.

Other Long-term Liabilities (Tables)

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Deferred rent liability

 

$

906

 

 

$

785

 

Leasehold improvements financing and other

   (see a and b below)

 

 

193

 

 

 

254

 

Unrecognized tax benefits (Note 13e)

 

 

2,400

 

 

 

1,565

 

Other

 

 

534

 

 

 

131

 

 

 

$

4,033

 

 

$

2,735

 

 

The above principal leasehold improvement financing repayments as of December 31, 2016 are as follows:

 

2017

 

$

70

 

2018

 

 

77

 

2019

 

 

27

 

2020

 

 

24

 

2021

 

 

26

 

Thereafter

 

 

39

 

 

 

 

263

 

Less: current portion of long-term loans

 

 

(70

)

Long-term loans, net of current portion

 

$

193

 

 

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, 2016, are as follows:

 

2017

$

3,276

 

2018

 

2,404

 

2019

 

2,186

 

2020

 

2,019

 

2021

 

1,594

 

Thereafter

 

2,714

 

 

$

14,193

 

 

Income Taxes (Tables)

a. The provision for income taxes from continuing operations is comprised of:

Loss before income taxes:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

United States (U.S.)

 

$

(80,972

)

 

$

(55,087

)

 

$

(22,015

)

Non-U.S.

 

 

(40,492

)

 

 

(52,060

)

 

 

(58,285

)

 

 

$

(121,464

)

 

$

(107,147

)

 

$

(80,300

)

 

a. The provision for income taxes from continuing operations is comprised of:

Income taxes expense:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

6,501

 

 

$

891

 

 

$

65

 

Non-U.S.

 

 

3,863

 

 

 

3,678

 

 

 

324

 

Total current

 

 

10,364

 

 

 

4,569

 

 

 

389

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1

 

 

$

-

 

 

$

-

 

Non-U.S.

 

 

16

 

 

 

(135

)

 

 

(7

)

Total deferred

 

 

17

 

 

 

(135

)

 

 

(7

)

Total income taxes  provision

 

$

10,381

 

 

$

4,434

 

 

$

382

 

 

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

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

U.S Statutory Income Taxes Rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

Non-deductible expenses

 

 

(2.5

)

 

 

(2.4

)

 

 

(1.5

)

Foreign taxes rate differential

 

 

(14.2

)

 

 

(19.2

)

 

 

(26.5

)

Change in valuation allowance

 

 

(30.0

)

 

 

(18.2

)

 

 

(9.0

)

State income taxes

 

 

2.3

 

 

 

1.8

 

 

 

1.2

 

Change in excess taxes benefit

 

 

1.2

 

 

 

-

 

 

 

-

 

Unrecognized taxes expense (benefit)

 

 

(0.7

)

 

 

(1.2

)

 

 

0.3

 

Other

 

 

0.4

 

 

 

0.1

 

 

 

-

 

Effective taxes rate

 

 

(8.5

)%

 

 

(4.1

)%

 

 

(0.5

)%

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

$

18,770

 

 

$

11,504

 

Revenue recognition (timing differences)

 

 

46,953

 

 

 

21,972

 

Net operating loss carryforwards

 

 

577

 

 

347

 

Excess Tax Benefit

 

 

3,510

 

 

 

-

 

Deferred Revenue

 

 

879

 

 

 

-

 

Other temporary differences

 

 

1,481

 

 

 

952

 

Total gross deferred taxes assets

 

$

72,170

 

 

$

34,775

 

Less: valuation allowance

 

 

(70,061

)

 

 

(33,476

)

Total deferred taxes assets

 

$

2,109

 

 

$

1,299

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

1,789

 

 

 

1,008

 

Total gross deferred taxes liabilities

 

$

1,789

 

 

$

1,008

 

 

 

 

 

 

 

 

 

 

Net deferred taxes assets

 

$

320

 

 

$

291

 

 

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

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Balance at beginning of the year

 

$

1,565

 

 

$

308

 

 

$

549

 

Additions for taxes positions related current year

 

 

1,088

 

 

 

848

 

 

 

79

 

Additions for taxes positions related to prior years

 

 

58

 

 

 

409

 

 

 

-

 

Reduction related to lapse of applicable statute of

   limitations

 

 

(311

)

 

 

-

 

 

 

(320

)

Balance at the end of the year

 

$

2,400

 

 

$

1,565

 

 

$

308

 

 

Share Capital (Tables)

Share capital is composed as follows:

 

 

 

Issued and outstanding

 

 

 

Number of shares

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Ordinary shares no par value

 

 

87,066,446

 

 

 

83,778,581

 

 

Significant terms of the warrants to purchase ordinary shares that were issued to purchasers of the Series D and E Convertible Preferred shares are as follows as of December 31, 2016 and 2015:

 

 

Warrants for ordinary shares

 

 

Exercise price

per share

 

Expiration date

 

2016

 

 

2015

 

 

 

 

 

May 8, 2016 (1)

 

 

-

 

 

 

1,108,050

 

 

$

3.59

 

July 31, 2017

 

 

542,280

 

 

 

556,678

 

 

 

3.59

 

January 22, 2018

 

 

556,678

 

 

 

556,678

 

 

 

3.59

 

July 21, 2018

 

 

834,355

 

 

 

834,355

 

 

$

3.59

 

 

 

 

1,933,313

 

 

 

3,055,761

 

 

 

 

 

 

(1)

In the years ended December 31, 2016 and 2015, warrants to purchase 1,122,448 and 570,344 ordinary shares, respectively, were exercised, resulting in the issuance of 864,341 and 570,344ordinary shares, respectively.

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,

 

 

 

2016

 

 

2015

 

 

2014

 

ESOP

 

 

 

 

 

 

 

 

 

 

 

 

Expected term (years)

 

6.25

 

 

6.25

 

 

 

6.25

 

Expected volatility

 

58.4%-61.7%

 

 

59.0%-65.8%

 

 

73.1%-75.3%

 

Risk-free interest rate

 

1.23%-1.88%

 

 

1.74%-2.05%

 

 

1.9%-2.3%

 

Dividend yield

 

 

0.00

%

 

 

0.00

%

 

 

0.00

%

ESPP

 

 

 

 

 

 

 

 

 

 

 

 

Expected term (years)

 

0.42

 

 

 

-

 

 

 

-

 

Expected volatility

 

 

70.45

%

 

 

-

 

 

 

-

 

Risk-free interest rate

 

 

0.40

%

 

 

-

 

 

 

-

 

Dividend yield

 

 

0.00

%

 

 

-

 

 

 

-

 

 

A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2016 and changes during the year ended on that date is presented below:

 

 

 

Year ended December 31, 2016

 

 

 

Number of

options

 

 

Weighted

average

exercise

price

 

 

Aggregate

intrinsic

value

 

Outstanding at beginning of year

 

 

10,134,829

 

 

$

8.20

 

 

 

 

 

Granted

 

 

2,596,600

 

 

$

12.97

 

 

 

 

 

Exercised

 

 

(1,045,187

)

 

$

0.51

 

 

 

 

 

Forfeited and cancelled

 

 

(308,888

)

 

$

16.81

 

 

 

 

 

Outstanding at end of year

 

 

11,377,354

 

 

$

9.76

 

 

$

20,302

 

Exercisable options

 

 

5,979,150

 

 

$

5.78

 

 

 

19,664

 

Vested and expected to vest

 

 

11,163,577

 

 

$

9.71

 

 

$

20,256

 

 

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2016, 2015 and 2014, was comprised as follows:

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of revenues

 

$

623

 

 

$

174

 

 

$

32

 

Research, development and clinical trials

 

 

3,155

 

 

 

2,529

 

 

 

820

 

Sales and marketing

 

 

5,111

 

 

 

2,496

 

 

 

1,104

 

General and administrative

 

 

12,552

 

 

 

6,661

 

 

 

2,668

 

Total share-based compensation expense

 

$

21,441

 

 

$

11,860

 

 

$

4,624

 

 

The options outstanding as of December 31, 2016 are as follows:

 

Exercise price

 

 

Number

of options

outstanding

as of

December 31, 2016

 

 

Weighted

average

remaining

contractual

term

 

 

Number

of options

exercisable

as of

December 31, 2016

 

 

Weighted

average

remaining

contractual term

 

$

 

 

 

 

 

 

(years)

 

 

 

 

 

 

(years)

 

 

0.17

 

 

 

422,735

 

 

 

0.24

 

 

 

422,735

 

 

 

0.24

 

 

0.23

 

 

 

423,019

 

 

 

2.39

 

 

 

423,019

 

 

 

2.39

 

 

0.38

 

 

 

488,331

 

 

 

3.78

 

 

 

488,331

 

 

 

3.78

 

 

3.44

 

 

 

1,779,072

 

 

 

4.88

 

 

 

1,779,072

 

 

 

4.88

 

 

6.39

 

 

 

224,025

 

 

 

9.82

 

 

 

-

 

 

 

-

 

 

6.72

 

 

 

838,725

 

 

 

5.67

 

 

 

838,725

 

 

 

5.67

 

 

6.83

 

 

 

91,558

 

 

 

5.95

 

 

 

91,558

 

 

 

5.95

 

 

7.03

 

 

 

613,174

 

 

 

6.14

 

 

 

460,594

 

 

 

6.14

 

 

7.04

 

 

 

135,992

 

 

 

6.46

 

 

 

101,973

 

 

 

6.46

 

 

7.28

 

 

 

129,488

 

 

 

6.66

 

 

 

97,098

 

 

 

6.66

 

 

7.48

 

 

 

491,949

 

 

 

7.14

 

 

 

250,380

 

 

 

7.13

 

 

7.52

 

 

 

108,491

 

 

 

7.24

 

 

 

54,967

 

 

 

7.23

 

 

7.58

 

 

 

52,032

 

 

 

7.48

 

 

 

26,012

 

 

 

7.48

 

 

7.73

 

 

 

428,096

 

 

 

7.77

 

 

 

215,510

 

 

 

7.77

 

 

11.39

 

 

 

395,675

 

 

 

9.35

 

 

 

-

 

 

 

-

 

 

11.44

 

 

 

228,050

 

 

 

9.58

 

 

 

-

 

 

 

-

 

 

11.46

 

 

 

1,173,675

 

 

 

9.16

 

 

 

-

 

 

 

-

 

 

14.37

 

 

 

1,556,881

 

 

 

8.16

 

 

 

398,227

 

 

 

8.15

 

 

15.60

 

 

 

141,606

 

 

 

8.31

 

 

 

35,395

 

 

 

8.31

 

 

20.20

 

 

 

114,145

 

 

 

8.81

 

 

 

29,513

 

 

 

8.81

 

 

21.90

 

 

 

489,800

 

 

 

9.04

 

 

 

-

 

 

 

-

 

 

22.00

 

 

 

834,035

 

 

 

8.76

 

 

 

211,841

 

 

 

8.76

 

 

27.50

 

 

 

216,800

 

 

 

8.97

 

 

 

54,200

 

 

 

8.97

 

 

 

 

 

 

11,377,354

 

 

 

6.84

 

 

 

5,979,150

 

 

 

5.23

 

 

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

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Financial expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(5,937

)

 

$

(2,373

)

 

$

(41

)

Amortization of credit facility costs

 

 

(667

)

 

 

(329

)

 

 

-

 

Foreign currency transaction losses

 

 

(396

)

 

 

(356

)

 

 

(104

)

Others

 

 

(318

)

 

 

(177

)

 

 

(142

)

 

 

$

(7,318

)

 

$

(3,235

)

 

$

(287

)

Financial income:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of treasury bills premium

 

$

512

 

 

$

-

 

 

$

-

 

Interest income

 

 

659

 

 

 

84

 

 

 

143

 

 

 

$

1,171

 

 

$

84

 

 

$

143

 

Total financial expenses, net

 

$

(6,147

)

 

$

(3,151

)

 

$

(144

)

 

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,

 

 

 

2016

 

 

2015

 

 

2014

 

Net loss attributable to ordinary shares as reported

 

$

(131,845

)

 

$

(111,581

)

 

$

(80,682

)

Shares used in computing net loss per ordinary

   share, basic and diluted

 

 

85,558,448

 

 

 

30,401,603

 

 

 

12,490,017

 

Net loss per ordinary share, basic and diluted

 

$

(1.54

)

 

$

(3.67

)

 

$

(6.46

)

 

Supplemental Information (Tables)

The following table presents long-lived assets by location:

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

United States

 

$

11,981

 

 

$

6,600

 

Switzerland

 

 

4,346

 

 

 

4,204

 

Israel

 

 

1,915

 

 

 

1,376

 

Others

 

 

378

 

 

 

401

 

 

 

$

18,620

 

 

$

12,581

 

 

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

 

 

 

Year ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

United States

 

$

72,771

 

 

$

30,961

 

 

$

14,951

 

EMEA (*)

 

 

10,028

 

 

 

2,070

 

 

 

539

 

Japan

 

 

89

 

 

 

56

 

 

 

-

 

 

 

$

82,888

 

 

$

33,087

 

 

$

15,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) including Germany

 

$

9,799

 

 

$

1,803

 

 

$

408

 

 

Selected Quarterly Financial Information (Unaudited) (Tables)
Summary of Selected Quarterly Financial Information (Unaudited)

 

 

2016

 

 

 

Three months ended

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Net revenues

 

$

30,242

 

 

$

21,674

 

 

$

17,919

 

 

$

13,053

 

Gross profit

 

$

19,268

 

 

$

10,556

 

 

$

1,710

 

 

$

5,071

 

Operating loss

 

$

(17,877

)

 

$

(28,265

)

 

$

(37,237

)

 

$

(31,938

)

Net loss

 

$

(22,168

)

 

$

(33,628

)

 

$

(40,612

)

 

$

(35,437

)

Basic and diluted net loss per ordinary share

 

$

(0.26

)

 

$

(0.39

)

 

$

(0.48

)

 

$

(0.42

)

Weighted average number of ordinary shares used

   in computing basic and diluted net loss per share

 

 

86,760,316

 

 

 

85,774,874

 

 

 

85,274,683

 

 

 

84,397,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

Three months ended

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Net revenues

 

$

12,383

 

 

$

8,953

 

 

$

6,543

 

 

$

5,208

 

Gross profit

 

$

6,079

 

 

$

3,294

 

 

$

1,793

 

 

$

1,311

 

Operating loss

 

$

(30,606

)

 

$

(24,238

)

 

$

(27,206

)

 

$

(21,946

)

Net loss

 

$

(32,928

)

 

$

(26,023

)

 

$

(29,357

)

 

$

(23,273

)

Basic and diluted net loss per ordinary share

 

$

(0.39

)

 

$

(2.09

)

 

$

(2.36

)

 

$

(1.77

)

Weighted average number of ordinary shares used

   in computing basic and diluted net loss per share

 

 

83,607,037

 

 

 

12,431,586

 

 

 

12,427,442

 

 

 

13,140,321

 

 

Organization and Basis of Presentation - Additional Information (Detail)
1 Months Ended
Sep. 30, 2015
USD ($)
Sep. 30, 2015
GBP (£)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
 
 
 
 
Common stock, par value
   
 
   
   
Preferred shares no par value
   
 
 
 
Share split ratio
5.913 
5.913 
 
 
Preferred stock, par value
 
£ 0.01 
 
 
Common stock, par value
 
£ 0.01 
 
 
Significant Accounting Policies - Additional Information (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Impairment losses on short-term investments
 
 
 
 
 
 
 
 
$ 0 
 
 
Allowance for doubtful accounts receivable
 
 
 
 
 
 
 
 
 
Inventory write-offs
 
 
 
 
 
 
 
 
774,000 
Impairment of long-lived assets
 
 
 
 
 
 
 
 
 
 
Recognized net revenue on an accrual basis
 
 
 
 
 
 
 
 
8,458,000 
 
 
Excise taxes
 
 
 
 
 
 
 
 
105,000 
1,457,000 
1,010,000 
Other indirect taxes
 
 
 
 
 
 
 
 
867,000 
818,000 
266,000 
Cost related to charitable care
 
 
 
 
 
 
 
 
1,675,000 
1,376,000 
836,000 
Shipping and handling costs
 
 
 
 
 
 
 
 
3,389,000 
1,385,000 
553,000 
Dividends declared
 
 
 
 
 
 
 
 
 
 
Dividends paid
 
 
 
 
 
 
 
 
 
 
Net revenues
30,242,000 
21,674,000 
17,919,000 
13,053,000 
12,383,000 
8,953,000 
6,543,000 
5,208,000 
82,888,000 
33,087,000 
15,490,000 
Pension expense
 
 
 
 
 
 
 
 
529,000 
404,000 
205,000 
Severance costs
 
 
 
 
 
 
 
 
430,000 
356,000 
307,000 
Sales Revenue Net |
Customer One |
Customer Concentration Risk
 
 
 
 
 
 
 
 
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
10,393,000 
5,595,000 
2,372,000 
Concentration risk percentage
 
 
 
 
 
 
 
 
13.00% 
17.00% 
15.00% 
Sales Revenue Net |
Customer Two |
Customer Concentration Risk
 
 
 
 
 
 
 
 
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
7,010,000 
2,512,000 
2,014,000 
Concentration risk percentage
 
 
 
 
 
 
 
 
9.00% 
8.00% 
12.00% 
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]
 
 
 
 
 
 
 
 
 
 
 
Equipment write-downs included in cost of revenue
 
 
 
 
 
 
 
 
$ 6,436,000 
$ 36,000 
$ 12,000 
Field Equipment Under Operating Leases |
Minimum
 
 
 
 
 
 
 
 
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Property and equipment useful life
 
 
 
 
 
 
 
 
18 months 
 
 
Field Equipment Under Operating Leases |
Maximum
 
 
 
 
 
 
 
 
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Property and equipment useful life
 
 
 
 
 
 
 
 
36 months 
 
 
Significant Accounting Policies - Property and Equipment at Cost Using Straight-Line Method (Details)
12 Months Ended
Dec. 31, 2016
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
$ 99,780 
$ 119,423 
$ 57,613 
$ 175,894 
Cash
 
 
 
 
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
29,915 
75,421 
 
 
Money market funds
 
 
 
 
Cash And Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
$ 69,865 
$ 44,002 
 
 
Cash and Cash Equivalents and Short Term Investments - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]
 
 
Short-term investments
$ 119,854 
$ 150,001 
Estimated fair value of short-term investments
$ 119,825 
$ 149,978 
Receivables and Prepaid Expenses - Schedule of Receivables and Prepaid Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Receivables And Prepaid Expenses [Abstract]
 
 
Advances and receivables from suppliers
$ 5,829 
$ 7,323 
Government authorities
1,867 
1,955 
Prepaid expenses
2,238 
1,290 
Others
150 
231 
Receivables and prepaid expenses
$ 10,084 
$ 10,799 
Inventories - Schedule of Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 5,243 
$ 3,518 
Work in process
8,292 
4,618 
Finished goods
12,014 
5,458 
Total
$ 25,549 
$ 13,594 
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 16,116 
$ 10,489 
Accumulated depreciation and amortization
(6,304)
(3,937)
Depreciated cost
9,812 
6,552 
Computers and laboratory equipment
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
10,121 
6,734 
Office furniture
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
1,931 
1,245 
Production equipment
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
1,179 
857 
Leasehold improvements
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 2,885 
$ 1,653 
Property and Equipment, Net - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Property Plant And Equipment [Abstract]
 
 
 
Depreciation expense
$ 1,673 
$ 1,348 
$ 886 
Accumulated computer software amortization
4,742 
2,803 
 
Computer software amortization
$ 731 
$ 250 
 
Field Equipment, Net - Schedule of Field Equipment, Net (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Field Equipment [Abstract]
 
 
Field equipment
$ 11,167 
$ 9,226 
Less: accumulated depreciation
(2,359)
(3,197)
Field equipment, net
$ 8,808 
$ 6,029 
Field Equipment, Net - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Field Equipment [Line Items]
 
 
 
Depreciation
$ 1,673 
$ 1,348 
$ 886 
Impairment of field equipment
6,412 
 
 
Field equipment
 
 
 
Field Equipment [Line Items]
 
 
 
Depreciation
3,248 
1,555 
1,076 
Field Equipment Under Operating Leases
 
 
 
Field Equipment [Line Items]
 
 
 
Impairment of field equipment
6,436 
36 
12 
First Generation Optune System Field Equipment |
Cost of Revenues
 
 
 
Field Equipment [Line Items]
 
 
 
Impairment of field equipment
6,412 
 
 
First Generation Optune System Field Equipment |
Cost of Revenues |
Finished Goods
 
 
 
Field Equipment [Line Items]
 
 
 
Impairment of field equipment
4,830 
 
 
First Generation Optune System Field Equipment |
Cost of Revenues |
Production Stage Goods
 
 
 
Field Equipment [Line Items]
 
 
 
Impairment of field equipment
$ 1,582 
 
 
Other Payables and Accrued Expenses - Schedule of Other Payables and Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Payables And Accruals [Abstract]
 
 
Employees and payroll accruals
$ 7,541 
$ 8,258 
Taxes payable and others
3,142 
2,850 
Provision for settlement (Note 14c)
5,500 
 
Deferred revenues
2,267 
52 
Other
76 
712 
Other payables and accrued expenses
$ 18,526 
$ 11,872 
Employee Benefit Obligations - Schedule of Asset Allocation by Category (Details)
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
100.00% 
Debt Securities
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
28.00% 
Real Estate
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
22.00% 
Equity Securities
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
27.00% 
Others
 
Defined Benefit Plan Disclosure [Line Items]
 
Target asset allocations
23.00% 
Employee Benefit Obligations - Net Funded Status (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Change in Benefit Obligation
 
 
Projected benefit obligation at beginning of year
$ 6,223 
 
Interest cost
64 
47 
Company service cost
498 
312 
Employee contributions
321 
189 
Prior service cost
 
158 
Benefits paid
422 
4,023 
Actuarial loss
713 
1,494 
Projected benefit obligation at end of year
8,241 
6,223 
Change in Plan Assets
 
 
Fair value of plan assets at beginning of year
4,433 
 
Actual return on plan assets
320 
(63)
Employer contributions
482 
284 
Employee contributions
321 
189 
Benefits paid
422 
4,023 
Fair value of plan assets at end of year
5,978 
4,433 
Funded Status at End of year
 
 
Excess of obligation over assets
(2,263)
(1,790)
Change in Accrued Benefit Liability
 
 
Accrued benefit asset/(liability) at beginning of year
(1,790)
 
Company contributions made during year
482 
284 
Net periodic benefit cost for year
(529)
(404)
Net decrease in accumulated other comprehensive loss
(426)
(1,670)
Accrued benefit liability at end of year
(2,263)
(1,790)
Non - current plan assets
5,979 
4,433 
Non - current liability
8,242 
6,223 
Accrued benefit liability at end of year
(2,263)
(1,790)
Projected Benefit Payments
 
 
Projected year 1
148 
Projected year 2
150 
13 
Projected year 3
152 
19 
Projected year 4
155 
25 
Projected year 5
1,069 
32 
Projected year 6-10
$ 928 
$ 264 
Employee Benefit Obligations - Net Periodic Benefit Cost (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Net Periodic Benefit Cost
 
 
Company service cost
$ 498 
$ 312 
Interest cost (income)
(21)
47 
Expected return on plan assets
(49)
(38)
Amortization of prior service costs
87 
14 
Amortization of transition obligation
14 
69 
Total net periodic benefit cost
$ 529 
$ 404 
Weighted average assumptions:
 
 
Discount rate as of December 31
0.60% 
1.00% 
Expected long-term rate of return on assets
0.60% 
1.00% 
Rate of compensation increase
1.00% 
1.00% 
Mortality and disability assumptions
BVG 2015 GT 
BVG 2010 GT 
Long-Term Loan, Net of Discount and Issuance Costs - Additional Information (Details) (Term Loan, USD $)
1 Months Ended 12 Months Ended 12 Months Ended
Jan. 31, 2015
Dec. 31, 2016
Jun. 30, 2016
Dec. 31, 2016
Other Long-term Assets
Dec. 31, 2015
Other Long-term Assets
Dec. 31, 2016
First Year
Dec. 31, 2016
Second Year
Dec. 31, 2016
Third Year
Line Of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Term loan agreement, maturity period
5 years 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
$ 100,000,000 
 
 
 
 
 
 
 
Line of credit facility, current borrowing capacity
25,000,000 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
75,000,000 
 
 
 
 
 
Line of credit facility, drawdown received date
 
2016-07 
 
 
 
 
 
 
Term loan credit facility, outstanding principal
 
100,000,000 
 
 
 
 
 
 
Interest on the outstanding loan
 
10.00% 
 
 
 
 
 
 
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 
 
 
 
 
 
 
Total discount
 
 
 
1,699,000 
491,000 
 
 
 
Additional deferred issuance costs
 
 
 
$ 2,070,000 
$ 1,739,000 
 
 
 
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Liabilities Disclosure [Abstract]
 
 
 
 
Deferred rent liability
$ 906 
$ 785 
 
 
Leasehold improvements financing and other (see a and b below)
193 
254 
 
 
Unrecognized tax benefits
2,400 
1,565 
308 
549 
Other
534 
131 
 
 
Other long-term liabilities
$ 4,033 
$ 2,735 
 
 
Other Long-term Liabilities - Additional Information (Details)
12 Months Ended 12 Months Ended
Dec. 31, 2016
Facility in Switzerland
Dec. 31, 2016
Facility in Switzerland
CHF
Dec. 31, 2015
Facility in Switzerland
USD ($)
Jul. 31, 2013
Facility in Switzerland
CHF
Dec. 31, 2016
Facility in the U.S.
Jan. 31, 2014
Facility in the U.S.
USD ($)
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, 2016
Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
 
 
2017
$ 70 
 
2018
77 
 
2019
27 
 
2020
24 
 
2021
26 
 
Thereafter
39 
 
Long-term debt
263 
 
Less: current portion of long-term loans
(70)
 
Long-term loans, net of current portion
$ 193 
$ 254 
Commitments and Contingent Liabilities - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
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 2024. 
 
 
Lease and rental expense
$ 2,748 
$ 2,194 
$ 1,794 
Pledged bank deposits
807 
133 
 
Operating Lease Commitments
$ 955 
$ 283 
 
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 2019 
 
 
Maximum
 
 
 
Loss Contingencies [Line Items]
 
 
 
Operating lease agreements, expiration year
2024 
 
 
Maximum |
Motor Vehicles
 
 
 
Loss Contingencies [Line Items]
 
 
 
Operating lease agreements, expiration year
2019 
 
 
Commitments and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
 
2017
$ 3,276 
2018
2,404 
2019
2,186 
2020
2,019 
2021
1,594 
Thereafter
2,714 
Total minimum lease payments
$ 14,193 
Income Taxes - Schedule of Loss before Income Taxes, Domestic and Foreign (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
United States (U.S.)
$ (80,972)
$ (55,087)
$ (22,015)
Non-U.S.
(40,492)
(52,060)
(58,285)
Loss before income taxes
$ (121,464)
$ (107,147)
$ (80,300)
Income Taxes - Schedule of Components of Income Tax Expense (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current:
 
 
 
U.S.
$ 6,501 
$ 891 
$ 65 
Non-U.S.
3,863 
3,678 
324 
Total current
10,364 
4,569 
389 
Deferred:
 
 
 
U.S.
 
 
Non-U.S.
16 
(135)
(7)
Total deferred
17 
(135)
(7)
Total income taxes provision
$ 10,381 
$ 4,434 
$ 382 
Income Taxes - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
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
31,000 
26,000 
2,000 
Luxemburg
 
 
 
Income Taxes [Line Items]
 
 
 
Net operating losses carryforward
$ 1,900,000 
 
 
Income Taxes - Reconciliation of Provision for Income Taxes (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
U.S Statutory Income Taxes Rate
35.00% 
35.00% 
35.00% 
Non-deductible expenses
(2.50%)
(2.40%)
(1.50%)
Foreign taxes rate differential
(14.20%)
(19.20%)
(26.50%)
Change in valuation allowance
(30.00%)
(18.20%)
(9.00%)
State income taxes
2.30% 
1.80% 
1.20% 
Change in excess taxes benefit
1.20% 
 
 
Unrecognized taxes expense (benefit)
(0.70%)
(1.20%)
0.30% 
Other
0.40% 
0.10% 
 
Effective taxes rate
(8.50%)
(4.10%)
(0.50%)
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred tax assets:
 
 
Allowance for doubtful accounts
$ 18,770 
$ 11,504 
Revenue recognition (timing differences)
46,953 
21,972 
Net operating loss carryforwards
577 
347 
Excess Tax Benefit
3,510 
 
Deferred Revenue
879 
 
Other temporary differences
1,481 
952 
Total gross deferred taxes assets
72,170 
34,775 
Less: valuation allowance
(70,061)
(33,476)
Total deferred taxes assets
2,109 
1,299 
Deferred tax liabilities:
 
 
Fixed assets
1,789 
1,008 
Total gross deferred taxes liabilities
1,789 
1,008 
Net deferred taxes assets
$ 320 
$ 291 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Balance at beginning of the year
$ 1,565 
$ 308 
$ 549 
Additions for taxes positions related current year
1,088 
848 
79 
Additions for taxes positions related to prior years
58 
409 
 
Reduction related to lapse of applicable statute of limitations
(311)
 
(320)
Balance at the end of the year
$ 2,400 
$ 1,565 
$ 308 
Share Capital - Schedule of Share Capital (Details)
Dec. 31, 2016
Dec. 31, 2015
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
 
 
Common stock, shares issued
87,066,446 
83,778,581 
Common stock, shares outstanding
87,066,446 
83,778,581 
Share Capital - Schedule of Share Capital (Parenthetical) (Details)
Dec. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
 
 
 
Common stock, par value
   
   
   
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 12 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Feb. 28, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
2003 Plan
Dec. 31, 2016
2013 Plan
Dec. 31, 2015
2013 Plan
Mar. 31, 2015
2013 Plan
Dec. 31, 2016
2015 Plan
Dec. 31, 2016
2015 Plan
Dec. 30, 2016
2015 Plan
Dec. 31, 2016
Condition One
Dec. 31, 2016
Condition Two
Mar. 31, 2015
Settlement Agreement
Feb. 28, 2015
Settlement Agreement
Dec. 31, 2016
Settlement Agreement
Dec. 31, 2014
Settlement Agreement
Dec. 31, 2016
Settlement Agreement
General and Administrative
Dec. 31, 2014
Settlement Agreement
General and Administrative
Mar. 31, 2015
Settlement Agreement
Minimum
Feb. 28, 2015
Settlement Agreement
Condition One
Feb. 28, 2015
Settlement Agreement
Condition Two
Dec. 31, 2016
ESPP
Dec. 30, 2016
ESPP
Dec. 31, 2016
Ordinary Shares
Dec. 31, 2015
Ordinary Shares
Oct. 7, 2015
Ordinary Shares
IPO
Dec. 31, 2016
Ordinary Shares
ESPP
Jan. 31, 2016
Warrant
Dec. 31, 2016
Warrant
Dec. 31, 2015
Warrant
Jun. 30, 2015
Series J Convertible Preferred shares
Share Capital [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,068,500 
Shares issued, price per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.33 
Proceeds from issuance of preferred shares, net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 94,599,000 
Share issuance expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
319,000 
Liquidation preference per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.33 
Sale of ordinary shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,876,195 
 
 
 
 
 
Proceeds from issuance of ordinary shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
157,534,000 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,500,000 
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
 
87,066,446 
83,778,581 
 
 
 
 
 
 
 
 
 
 
 
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 
 
1,945,000 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of closing price per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility repayment date
 
Dec. 31, 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion of preferred shares to ordinary shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
62,744,517 
 
 
315,155 
864,341 
570,344 
 
Option granted vesting period
 
 
 
 
4 years 
4 years 
 
 
 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option granted expiration period
 
 
 
 
10 years 
10 years 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares available for issuance
 
 
 
 
 
 
 
13,198,224 
19,730,105 
19,730,105 
16,251,143 
 
 
 
 
 
 
 
 
 
 
 
2,537,526 
1,667,785 
 
 
 
 
 
 
 
 
Ordinary shares available for grant
 
 
 
 
 
 
 
16,136,439 
16,136,439 
 
 
 
 
 
 
 
 
 
 
 
 
2,445,138 
 
 
 
 
 
 
 
 
 
Increase in number of ordinary shares reserved for grants
2,956,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage increase in number of shares available for issuance
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of shares in connection with employee stock purchase plan(in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
92,388 
 
 
92,388 
 
 
 
 
Increase in shares authorized for issuance available for grants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
830,000 
 
 
 
 
 
 
 
 
 
Percentage of increase in shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
 
20,030,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost expected recognition weighted average period
 
2 years 7 months 28 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options granted
 
$ 7.37 
$ 10.64 
$ 5.08 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options unvested
 
$ 8.30 
$ 8.66 
$ 4.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options unvested amount
 
5,398,204 
4,613,423 
2,934,974 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options vested
 
$ 7.30 
$ 3.66 
$ 2.89 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options vested amount
 
1,572,238 
1,235,880 
1,166,974 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair values options forfeited and cancelled
 
$ 9.72 
$ 5.73 
$ 3.59 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate intrinsic values options exercised
 
$ 7,673,000 
$ 3,546,000 
$ 3,339,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of ordinary shares
 
$ 7.85 
$ 22.36 
$ 7.73 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2016
Dec. 31, 2015
Class Of Warrant Or Right [Line Items]
 
 
Warrants for ordinary shares
1,933,313 
3,055,761 
Exercise price per share
$ 18.77 
 
May 8, 2016
 
 
Class Of Warrant Or Right [Line Items]
 
 
Expiration date
May 08, 2016 
 
Warrants for ordinary shares
 
1,108,050 
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
542,280 
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)
1 Months Ended 12 Months Ended
Jan. 31, 2016
Dec. 31, 2016
Dec. 31, 2015
Class Of Warrant Or Right [Line Items]
 
 
 
Warrants exercised to ordinary shares
 
1,122,448 
570,344 
Warrant
 
 
 
Class Of Warrant Or Right [Line Items]
 
 
 
Conversion of preferred shares to ordinary shares
315,155 
864,341 
570,344 
Share Capital - Schedule of Fair Value of Share Based Awards Using Black-Scholes Option Pricing Model (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
ESPP
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Expected term (years)
5 months 1 day 
 
 
Expected volatility
70.45% 
 
 
Risk-free interest rate
0.40% 
 
 
Expected dividend yield
0.00% 
 
 
ESOP
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Expected term (years)
6 years 3 months 
6 years 3 months 
6 years 3 months 
Expected volatility, minimum
58.40% 
59.00% 
73.10% 
Expected volatility, maximum
61.70% 
65.80% 
75.30% 
Risk-free interest rate, minimum
1.23% 
1.74% 
1.90% 
Risk-free interest rate, maximum
1.88% 
2.05% 
2.30% 
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, 2016
Number of options
 
Number of options, Outstanding at beginning of year
10,134,829 
Number of options, Granted
2,596,600 
Number of options, Exercised
(1,045,187)
Number of options, Forfeited and cancelled
(308,888)
Number of options, Outstanding at ending of year
11,377,354 
Number of options, Exercisable options
5,979,150 
Number of options, Vested and expected to vest
11,163,577 
Weighted average exercise price
 
Weighted average exercise price, Outstanding at beginning of year
$ 8.20 
Weighted average exercise price, Granted
$ 12.97 
Weighted average exercise price, Exercised
$ 0.51 
Weighted average exercise price, Forfeited and cancelled
$ 16.81 
Weighted average exercise price, Outstanding at end of year
$ 9.76 
Weighted average exercise price, Exercisable options
$ 5.78 
Weighted average exercise price, Vested and expected to vest
$ 9.71 
Aggregate intrinsic value
 
Aggregate intrinsic value, Outstanding at end of year
$ 20,302 
Aggregate intrinsic value, Exercisable options
19,664 
Aggregate intrinsic value, Vested and expected to vest
$ 20,256 
Share Capital - Schedule of Stock Option Outstanding (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Number of options outstanding
11,377,354 
10,134,829 
Options outstanding, weighted average remaining contractual term
6 years 10 months 2 days 
 
Number of options exercisable
5,979,150 
 
Options exercisable, weighted average remaining contractual term
5 years 2 months 23 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
422,735 
 
Options outstanding, weighted average remaining contractual term
2 months 27 days 
 
Number of options exercisable
422,735 
 
Options exercisable, weighted average remaining contractual term
2 months 27 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
423,019 
 
Options outstanding, weighted average remaining contractual term
2 years 4 months 21 days 
 
Number of options exercisable
423,019 
 
Options exercisable, weighted average remaining contractual term
2 years 4 months 21 days 
 
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
3 years 9 months 11 days 
 
Number of options exercisable
488,331 
 
Options exercisable, weighted average remaining contractual term
3 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
4 years 10 months 17 days 
 
Number of options exercisable
1,779,072 
 
Options exercisable, weighted average remaining contractual term
4 years 10 months 17 days 
 
Exercise price 6.39
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 6.39 
 
Number of options outstanding
224,025 
 
Options outstanding, weighted average remaining contractual term
9 years 9 months 26 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
838,725 
 
Options outstanding, weighted average remaining contractual term
5 years 8 months 1 day 
 
Number of options exercisable
838,725 
 
Options exercisable, weighted average remaining contractual term
5 years 8 months 1 day 
 
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
91,558 
 
Options outstanding, weighted average remaining contractual term
5 years 11 months 12 days 
 
Number of options exercisable
91,558 
 
Options exercisable, weighted average remaining contractual term
5 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
6 years 1 month 21 days 
 
Number of options exercisable
460,594 
 
Options exercisable, weighted average remaining contractual term
6 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
6 years 5 months 16 days 
 
Number of options exercisable
101,973 
 
Options exercisable, weighted average remaining contractual term
6 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
129,488 
 
Options outstanding, weighted average remaining contractual term
6 years 7 months 28 days 
 
Number of options exercisable
97,098 
 
Options exercisable, weighted average remaining contractual term
6 years 7 months 28 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
491,949 
 
Options outstanding, weighted average remaining contractual term
7 years 1 month 21 days 
 
Number of options exercisable
250,380 
 
Options exercisable, weighted average remaining contractual term
7 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
108,491 
 
Options outstanding, weighted average remaining contractual term
7 years 2 months 27 days 
 
Number of options exercisable
54,967 
 
Options exercisable, weighted average remaining contractual term
7 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
7 years 5 months 23 days 
 
Number of options exercisable
26,012 
 
Options exercisable, weighted average remaining contractual term
7 years 5 months 23 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
428,096 
 
Options outstanding, weighted average remaining contractual term
7 years 9 months 7 days 
 
Number of options exercisable
215,510 
 
Options exercisable, weighted average remaining contractual term
7 years 9 months 7 days 
 
Exercise price 11.39
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 11.39 
 
Number of options outstanding
395,675 
 
Options outstanding, weighted average remaining contractual term
9 years 4 months 6 days 
 
Exercise price 11.44
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 11.44 
 
Number of options outstanding
228,050 
 
Options outstanding, weighted average remaining contractual term
9 years 6 months 29 days 
 
Exercise price 11.46
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 11.46 
 
Number of options outstanding
1,173,675 
 
Options outstanding, weighted average remaining contractual term
9 years 1 month 28 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
1,556,881 
 
Options outstanding, weighted average remaining contractual term
8 years 1 month 28 days 
 
Number of options exercisable
398,227 
 
Options exercisable, weighted average remaining contractual term
8 years 1 month 24 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
141,606 
 
Options outstanding, weighted average remaining contractual term
8 years 3 months 22 days 
 
Number of options exercisable
35,395 
 
Options exercisable, weighted average remaining contractual term
8 years 3 months 22 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
114,145 
 
Options outstanding, weighted average remaining contractual term
8 years 9 months 22 days 
 
Number of options exercisable
29,513 
 
Options exercisable, weighted average remaining contractual term
8 years 9 months 22 days 
 
Exercise price 21.90
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Exercise price
$ 21.90 
 
Number of options outstanding
489,800 
 
Options outstanding, weighted average remaining contractual term
9 years 15 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
834,035 
 
Options outstanding, weighted average remaining contractual term
8 years 9 months 4 days 
 
Number of options exercisable
211,841 
 
Options exercisable, weighted average remaining contractual term
8 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
216,800 
 
Options outstanding, weighted average remaining contractual term
8 years 11 months 19 days 
 
Number of options exercisable
54,200 
 
Options exercisable, weighted average remaining contractual term
8 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, 2016
Dec. 31, 2015
Dec. 31, 2014
Financial expenses:
 
 
 
Interest expense
$ (5,937)
$ (2,373)
$ (41)
Amortization of credit facility costs
(667)
(329)
 
Foreign currency transaction losses
(396)
(356)
(104)
Others
(318)
(177)
(142)
Financial expenses
(7,318)
(3,235)
(287)
Financial income:
 
 
 
Amortization of treasury bills premium
512 
 
 
Interest income
659 
84 
143 
Financial income
1,171 
84 
143 
Total financial expenses, net
$ (6,147)
$ (3,151)
$ (144)
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
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net loss attributable to ordinary shares as reported
$ (22,168)
$ (33,628)
$ (40,612)
$ (35,437)
$ (32,928)
$ (26,023)
$ (29,357)
$ (23,273)
$ (131,845)
$ (111,581)
$ (80,682)
Shares used in computing net loss per ordinary share, basic and diluted
86,760,316 
85,774,874 
85,274,683 
84,397,164 
83,607,037 
12,431,586 
12,427,442 
13,140,321 
85,558,448 
30,401,603 
12,490,017 
Net loss per ordinary share, basic and diluted
$ (0.26)
$ (0.39)
$ (0.48)
$ (0.42)
$ (0.39)
$ (2.09)
$ (2.36)
$ (1.77)
$ (1.54)
$ (3.67)
$ (6.46)
Supplemental Information - Schedule of Long-Lived Assets by Location (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 18,620 
$ 12,581 
United States
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
11,981 
6,600 
Switzerland
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
4,346 
4,204 
Israel
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
1,915 
1,376 
Others
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 378 
$ 401 
Supplemental Information - Schedule of Revenues by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$ 30,242 
$ 21,674 
$ 17,919 
$ 13,053 
$ 12,383 
$ 8,953 
$ 6,543 
$ 5,208 
$ 82,888 
$ 33,087 
$ 15,490 
United States
 
 
 
 
 
 
 
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
72,771 
30,961 
14,951 
EMEA
 
 
 
 
 
 
 
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
10,028 
2,070 
539 
Japan
 
 
 
 
 
 
 
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
$ 89 
$ 56 
 
Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$ 30,242 
$ 21,674 
$ 17,919 
$ 13,053 
$ 12,383 
$ 8,953 
$ 6,543 
$ 5,208 
$ 82,888 
$ 33,087 
$ 15,490 
Germany
 
 
 
 
 
 
 
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
$ 9,799 
$ 1,803 
$ 408 
Selected Quarterly Financial Information (Unaudited) - Summary of Selected Quarterly Financial Information (Unaudited) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Selected Quarterly Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$ 30,242 
$ 21,674 
$ 17,919 
$ 13,053 
$ 12,383 
$ 8,953 
$ 6,543 
$ 5,208 
$ 82,888 
$ 33,087 
$ 15,490 
Gross profit
19,268 
10,556 
1,710 
5,071 
6,079 
3,294 
1,793 
1,311 
36,606 
12,477 
5,454 
Operating loss
(17,877)
(28,265)
(37,237)
(31,938)
(30,606)
(24,238)
(27,206)
(21,946)
(115,317)
(103,996)
(80,156)
Net loss
$ (22,168)
$ (33,628)
$ (40,612)
$ (35,437)
$ (32,928)
$ (26,023)
$ (29,357)
$ (23,273)
$ (131,845)
$ (111,581)
$ (80,682)
Basic and diluted net loss per ordinary share
$ (0.26)
$ (0.39)
$ (0.48)
$ (0.42)
$ (0.39)
$ (2.09)
$ (2.36)
$ (1.77)
$ (1.54)
$ (3.67)
$ (6.46)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
86,760,316 
85,774,874 
85,274,683 
84,397,164 
83,607,037 
12,431,586 
12,427,442 
13,140,321 
85,558,448 
30,401,603 
12,490,017