Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Significant Accounting Policies [Abstract]

Schedule of property and equipment, net of accumulated depreciation

		%

	Computers	15 – 33
	Office furniture and equipment	6 – 15
	Leasehold improvements	*)

Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.

Schedule of fair value for options granted using the black-scholes option-pricing model

	2013	2014	2015

Dividend yield	0%	*)	0%
Expected volatility	53.7%-64%	*)	64%- 69%
Risk-free interest	0.5%-1.7%	*)	1.12%-1.63%
Expected life (in years)	3.5-4.9	*)	4.375

*) No grants were made in 2014.

Schedule of fair value, assets and liabilities measured on recurring basis

	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total

Warrants presented at fair value		-		-	$	844,818	$	844,818

Capital note		-		-		37,480		37,480

Total financial liabilities		-		-	$	882,298	$	882,298

	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total

Warrants presented at fair value		-		-	$	961,922	$	961,922

Capital note		-		-		43,568		43,568

Total financial liabilities		-		-	$	1,005,490	$	1,005,490

Schedule of liabilities measured at fair value on a recurring basis

	Level 3

Balance at January 1, 2013	$	389,000

Fair value of warrants to investors and service provider		7,500
Fair value of embedded conversion feature presented in fair value		19,990
Change in fair value of warrants and embedded conversion feature presented in fair value		59,901
Reclassification of embedded conversion feature presented in fair value from liability to equity		(358,891	)
Reclassification of warrants presented at fair value to equity		(117,500	)

Balance at December 31, 2013		-

Fair value of warrants and capital note		882,298

Balance at December 31, 2014		882,298

Fair value of warrants to investors		142,470
Changes in Fair value of warrants and capital note		(19,278	)

Balance at December 31, 2015	$	1,005,490

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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