Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Share Capital

v3.19.2
Share Capital
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
SHARE CAPITAL
NOTE 5:- SHARE CAPITAL

 

  a. Ordinary shares:

 

The share capital as of June 30, 2019 and December 31, 2018 is composed of ordinary shares of NIS 0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.566 in effect as of June 30, 2019) par value as follows:

 

    Number of ordinary shares     Number of ordinary shares  
    Authorized     Issued and outstanding     Authorized     Issued and outstanding  
    June 30, 2019     December 31, 2018  
                         
Ordinary shares     200,000,000       24,033,660       200,000,000       23,491,948  

 

  b. Issuance of ordinary shares:

 

  1. In January 2019 the Company issued 50,000 ordinary shares to one of the Company's service provider. The company recorded an expense of $5,738 for the six months ended June 30, 2019 in connection with the issuance of those restricted ordinary shares.

 

  2. Between February and May 2019, the Company issued 12,500 ordinary shares to one of the Company's service provider. The company recorded an expense of $1,506 for the six months ended June 30, 2019 in connection with the issuance of those restricted ordinary shares

 

  3. In April 2019 the Company issued 50,000 ordinary shares to one of the Company's service provider. The company recorded an expense of $6,025 for the six months ended June 30, 2019 in connection with the issuance of those restricted ordinary shares.

 

  c. Stock option plan:

 

Under the Company's 2010 option plan, options may be granted to officers, directors, employees, consultants and service providers of the Company.

 

The vesting period of the options is subject for Board approval and can vary from grant to grant. Options vest over a period of zero to three years from date of grant. Any options that are cancelled or forfeited before expiration become available for future grants. The options may be exercised for a period of seven years from grant.

 

In April 30, 2019 the Company granted 207,500 options to its employees and consultants to purchase its ordinary shares, their fair value as of the issuance date aggregated to $8,727 (the Company used the following assumptions: 0% dividend yield, 59.69% expected volatility, 2.33% - 2.71% risk free rate and 4.15 - 7 expected life in years), such options include an exercise price of $0.27 per one option and a various vesting schedule. 

 

The total number of ordinary shares available for future grants as of June 30, 2019 was 1,360,898.

 

A summary of the Company's stock option activities and related information for the six months ended June 30, 2019, is as follows: 

 

    Number of options  
       
Outstanding options as of December 31, 2018     1,714,039  
Granted     207,500  
Forfeited     (107,158 )
         
Outstanding options as of June 30, 2019     1,814,381  

  

  d. Stock based compensation were recorded as follows:

 

    Six months ended
June 30,
 
    2019     2018  
    Unaudited  
             
Research and Development   $ 8,077     $ 18,362  
Sales and Marketing     3,728       7,419  
General and Administrative     47,494       51,215  
                 
    $ 59,299     $ 76,996  

 

  e. The Company's outstanding warrants classified as equity as of June 30, 2019 are as follows:

 

Outstanding     Issuance year   Exercise price     Exercisable through  
                   
  117,209     2009   $ (*)    Exit event (**)
  59,384     2013     0.92     2023 (**)
  170,000     2018     0.50     2023 (**)
  600,000     2018     0.50     2023 (**)
  466,667     2018   $ 0.50     2023 (**)
                       
  1,413,260                    

 

(*) Represents an amount lower than $0.01
(**) Issued in connection with the 2009, 2013 and 2018 arrangements.

 

All warrants are exercisable to ordinary shares. The exercise price of the warrants and the number of ordinary shares issuable thereunder is subject to standard anti-dilution features, including dividends, stock splits, combinations and reclassifications of the Company's capital stock. In accordance with ASC 815, "Derivatives and Hedging", the warrants were classified as equity instruments.