Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVCR | ||
Entity Registrant Name | Novocure Ltd | ||
Entity Central Index Key | 1,645,113 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 89,882,437 | ||
Entity Public Float | $ 909,514,284 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 78,592 | $ 99,780 |
Short-term investments | 104,719 | 119,854 |
Restricted cash | 2,126 | 267 |
Trade receivables, net | 29,567 | 6,339 |
Receivables and prepaid expenses | 8,105 | 10,084 |
Inventories | 22,025 | 25,549 |
Total current assets | 245,134 | 261,873 |
Long-term assets: | ||
Property and equipment, net | 9,031 | 9,812 |
Field equipment, net | 9,036 | 8,808 |
Severance pay fund | 111 | 88 |
Other long-term assets | 1,986 | 1,500 |
Total long-term assets | 20,164 | 20,208 |
Total assets | 265,298 | 282,081 |
Current liabilities: | ||
Trade payables | 17,206 | 18,356 |
Other payables and accrued expenses | 32,996 | 18,526 |
Total current liabilities | 50,202 | 36,882 |
Long-term liabilities: | ||
Long-term loan, net of discount and issuance costs | 97,342 | 96,231 |
Employee benefit liabilities | 2,453 | 2,590 |
Other long-term liabilities | 1,737 | 4,033 |
Total long-term liabilities | 101,532 | 102,854 |
Total liabilities | 151,734 | 139,736 |
Commitments and contingencies | 0 | 0 |
Shareholders’ equity: | ||
Ordinary shares - No par value, Unlimited shares authorized; Issued and outstanding: 89,478,032 shares and 87,066,446 shares at December 31, 2017 and December 31, 2016 respectively; | 0 | 0 |
Additional paid-in capital | 697,165 | 664,154 |
Accumulated other comprehensive loss | (1,343) | (1,883) |
Accumulated deficit | (582,258) | (519,926) |
Total shareholders’ equity | 113,564 | 142,345 |
Total liabilities and shareholders’ equity | $ 265,298 | $ 282,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 89,478,032 | 87,066,446 |
Common stock, shares outstanding | 89,478,032 | 87,066,446 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net revenues | $ 177,026 | $ 82,888 | $ 33,087 |
Cost of revenues | 55,609 | 39,870 | 20,610 |
Impairment of field equipment | 6,412 | ||
Gross profit | 121,417 | 36,606 | 12,477 |
Operating costs and expenses: | |||
Research, development and clinical trials | 38,103 | 41,467 | 43,748 |
Sales and marketing | 63,528 | 59,449 | 38,861 |
General and administrative | 59,114 | 51,007 | 33,864 |
Total operating costs and expenses | 160,745 | 151,923 | 116,473 |
Operating loss | (39,328) | (115,317) | (103,996) |
Financial expenses, net | (9,169) | (6,147) | (3,151) |
Loss before income taxes | (48,497) | (121,464) | (107,147) |
Income taxes | 13,165 | 10,381 | 4,434 |
Net loss | $ (61,662) | $ (131,845) | $ (111,581) |
Basic and diluted net loss per ordinary share | $ (0.70) | $ (1.54) | $ (3.67) |
Weighted average number of ordinary shares used in computing basic and diluted net loss per share | 88,546,719 | 85,558,448 | 30,401,603 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (61,662) | $ (131,845) | $ (111,581) |
Other comprehensive loss, net of tax : | |||
Change in foreign currency translation adjustments | 8 | 10 | |
Pension benefit plan | 532 | (388) | (1,505) |
Total comprehensive loss | $ (61,122) | $ (132,223) | $ (113,086) |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Over-Allotment | [1] | Series J Preferred Stock | [2] | Ordinary Shares | Ordinary SharesOver-Allotment | [1] | Preferred Shares | Preferred SharesSeries J Preferred Stock | [2] | Additional Capital Paid-in | Additional Capital Paid-inOver-Allotment | [1] | Additional Capital Paid-inSeries J Preferred Stock | [2] | Accumulated Other Comprehensive Loss | Accumulated Deficit |
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 | $ 94,599 | $ 157,534 | $ 94,599 | ||||||||||||||
Issuance of shares, net (in shares) | 7,876,195 | 4,068,500 | ||||||||||||||||
Issuance of shares and options in respect of settlement, net of fair value of shares provided as indemnification (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, $38, and 68 for the years ended December 2015, 2016 and 2017 | (1,505) | $ (1,505) | ||||||||||||||||
Net loss | (111,581) | (111,581) | ||||||||||||||||
Balance at Dec. 31, 2015 | 250,820 | 640,406 | (1,505) | (388,081) | ||||||||||||||
Balance 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 employeestock 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, $38, and 68 for the years ended December 2015, 2016 and 2017 | (378) | (378) | ||||||||||||||||
Net loss | (131,845) | (131,845) | ||||||||||||||||
Balance at Dec. 31, 2016 | 142,345 | 664,154 | (1,883) | (519,926) | ||||||||||||||
Balance at Dec. 31, 2016 | 87,066,446 | |||||||||||||||||
Cumulative effect adjustment resulting from ASU 2016-09 adoption (See Note 2) | 670 | (670) | ||||||||||||||||
Share-based compensation to employees | 27,116 | 27,116 | ||||||||||||||||
Exercise of options and warrants | 3,685 | 3,685 | ||||||||||||||||
Exercise of options and warrants (in shares) | 2,244,153 | |||||||||||||||||
Issuance of shares in connection with employeestock purchase plan | 1,540 | 1,540 | ||||||||||||||||
Issuance of shares in connection with employee stock purchase plan(in shares) | 167,433 | |||||||||||||||||
Other comprehensive loss, net of tax benefit of $165, $38, and 68 for the years ended December 2015, 2016 and 2017 | 540 | 540 | ||||||||||||||||
Net loss | (61,662) | (61,662) | ||||||||||||||||
Balance at Dec. 31, 2017 | $ 113,564 | $ 697,165 | $ (1,343) | $ (582,258) | ||||||||||||||
Balance at Dec. 31, 2017 | 89,478,032 | |||||||||||||||||
[1] | Net of issuance expenses (including underwriter fees) of $15,742 | |||||||||||||||||
[2] | Net of issuance expenses of $319 |
Statements of Changes in Share7
Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive loss, tax benefit | $ 68 | $ 38 | $ 165 |
Series J Preferred Stock | |||
Share issuance expenses | 319 | ||
Over-Allotment | |||
Share issuance expenses | $ 15,742 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (61,662) | $ (131,845) | $ (111,581) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 7,677 | 5,652 | 3,153 |
Asset write-downs and impairment of field equipment | 241 | 6,446 | 46 |
Increase in accrued interest expense | 672 | ||
Share-based compensation to employees | 27,116 | 22,139 | 11,860 |
Excess tax benefits from share-based award activity | (698) | ||
Increase in trade receivables, net | (23,228) | (6,339) | |
Amortization of discount, net | 252 | 155 | 329 |
Decrease (increase) in receivables and prepaid expenses | 1,979 | 243 | (5,088) |
Decrease (increase) in inventories | 3,524 | (11,955) | (10,148) |
Increase in other long-term assets | (554) | (692) | (381) |
Increase (decrease) in trade payables | (1,150) | 1,601 | 6,961 |
Increase in other payables and accrued expenses | 14,460 | 6,647 | 3,579 |
Increase in employee benefit liabilities, net | 440 | 97 | 133 |
Increase (decrease) in other long-term liabilities | (2,229) | 957 | 581 |
Net cash used in operating activities | (33,134) | (107,592) | (99,884) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (2,459) | (5,674) | (4,667) |
Purchase of field equipment | (4,907) | (11,990) | (5,604) |
Increase in restricted cash | (1,858) | (180) | (26) |
Proceeds from maturity of short-term investments | 120,000 | 270,000 | 104,000 |
Purchase of short-term investments | (104,006) | (239,341) | (208,998) |
Net cash provided by (used in) investing activities | 6,770 | 12,815 | (115,295) |
Cash flows from financing activities: | |||
Proceeds from issuance of shares, net | 1,540 | 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 | 19 | ||
Repayment of other long-term loans | (76) | (70) | (63) |
Exercise of options and warrants | 3,685 | 993 | 2,038 |
Purchase of shares in respect of settlement | (5) | ||
Net cash provided by financing activities | 5,168 | 75,124 | 276,989 |
Effect of exchange rate changes on cash and cash equivalents | 8 | 10 | |
Increase (decrease) in cash and cash equivalents | (21,188) | (19,643) | 61,810 |
Cash and cash equivalents at the beginning of the year | 99,780 | 119,423 | 57,613 |
Cash and cash equivalents at the end of the year | 78,592 | 99,780 | 119,423 |
Cash paid during the year for: | |||
Income taxes | 10,286 | 9,447 | 1,489 |
Interest | $ 10,162 | $ 6,595 | $ 1,688 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 (“Tumor Treating Fields”) for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune, its first Tumor Treating Fields 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 | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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 U.S. 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, 2017 and 2016, 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, 2017, 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. Trade receivables are presented net of allowances and allowance for doubtful accounts of $3,453 and $0, as of December 31, 2017 and 2016, respectively. In order to provide for trade receivables that could become uncollectible in the future, the Company establishes an allowance for doubtful accounts to reduce the carrying value of such receivables to their estimated net realizable value. The Company considers receivables past due based on payment terms and historical cash collection experience. 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. As of December 31, 2017 and 2016, the allowance for doubtful accounts was de minimis Trade receivables include unbilled receivables for therapy provided and not invoiced in the reported period. g. Inventories: Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. The Company regularly evaluates its ability to realize the value of inventory. If the inventories are deemed damaged, if actual demand for the Company’s delivery systems deteriorates, or if market conditions are less favorable than those projected, inventory write-offs may be required. Inventory write-offs of $489, $ 774 and $0, respectively, were identified for the years ended December 31, 2017, 2016 and 2015. 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: 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 is equipment being utilized under service agreements, and accounted for in accordance with ASC 840 on a monthly basis as an operating lease. The Company records a write-off provision for any excess, lost or damaged equipment when warranted based on an assessment of the equipment. Write-offs for equipment are included in cost of revenues. During the years ended December 31, 2017, 2016 and 2015, write-offs for $195, $ 6,436 and $36, respectively, were recorded (see Note 7). 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, 2017, 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 Tumor Treating Fields 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 net of allowances from the use of Optune on an accrual basis ratably over the lease term. The allowances are determined based on defined payment terms and historical collection data by Payer. Allowance adjustments related to final settlements for the reported periods are insignificant. 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. Unbilled revenues include revenues recognized for therapy provided and not invoiced in the reported period, and are presented as part of accounts receivable. Revenues are presented net of indirect taxes of $1,293, $ 972 and $ 2,275 for the years ended December 31, 2017, 2016 and 2015, respectively. m. Charitable care: The Company provides Optune treatment at no charge to patients who meet certain criteria under its charitable care policy. 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 $1,483, $1,675 and $ 1,376 for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts were determined by applying charitable care as a percentage of total billings to total cost of goods sold. 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 $5,322, $3,389 and $ 1,385 for the years ended December 31, 2017, 2016 and 2015, 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 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. The Company selected the Black-Scholes model as the most appropriate fair value method for all equity awards and the Employee Share Purchase Plan (the “ESPP”). For market condition awards, the Company also applied the Monte-Carlo simulation model. The Black-Scholes model requires a number of assumptions, of which the most significant are the share price, expected volatility and the expected equity award 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, 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 pre-IPO preferred shares were not participating securities in losses and, therefore, are not included in the computation of net loss per share. Post-IPO, there are no preferred shares outstanding. 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 at top tier 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 2017, one payer represented $15,479, or 9 %, of net revenues. In 2016, the same payer represented $10,393, or 13%, of net revenues. In 2015, the same payer represented $5,595, or 17%, of net revenues. 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, 2017, 2016 and, 2015 was $1,036, $ 529 and $404, 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, 2017, 2016 and 2015 amounted to $506, $430 and $356, 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, 2017 and 2016, 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 income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income (loss) and its components. Comprehensive income (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 income (loss), net of taxes, relates to a pension liability and foreign currency translation adjustments. w. Recently adopted accounting pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. x. Recently issued accounting pronouncements: In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), an updated standard on revenue recognition and issued subsequent amendments to the initial guidance in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08, 2016-10, 2016-12 and 2016-20, respectively. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods and services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. In addition, the new standard requires expanded disclosures In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements. In 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 2020. 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, 2018. 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 effects of the adoption of this ASU on the consolidated financial statements. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short Term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities Current [Abstract] | |
Cash and Cash equivalents and Short-term investments | Note 3: Cash and Cash equivalents and Short-term investments a. Cash and cash equivalents: Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. December 31, 2017 2016 Cash $ 5,522 $ 29,915 Money market funds 73,070 69,865 Total cash and cash equivalents $ 78,592 $ 99,780 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 $104,719 and $119,854, as of December 31, 2017 and 2016, respectively and their estimated fair value as of December 31, 2017 and 2016 was $104,655 and $119,825, respectively. |
Receivables and Prepaid Expense
Receivables and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables And Prepaid Expenses [Abstract] | |
Receivables and Prepaid Expenses | Note 4: Receivables and prepaid expenses December 31, 2017 2016 Advances to and receivables from suppliers $ 2,924 $ 5,829 Government authorities 2,006 1,867 Prepaid expenses 2,890 2,238 Others 285 150 $ 8,105 $ 10,084 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5: Inventories December 31, 2017 2016 Raw materials $ 4,276 $ 5,243 Work in process 8,435 8,292 Finished goods 9,314 12,014 $ 22,025 $ 25,549 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 6: Property and equipment, net December 31, 2017 2016 Cost: Computers and laboratory equipment $ 10,833 $ 10,121 Office furniture 2,303 1,931 Production equipment 1,222 1,179 Leasehold improvements 3,614 2,885 Total cost $ 17,972 $ 16,116 Accumulated depreciation and amortization (8,941 ) (6,304 ) Depreciated cost $ 9,031 $ 9,812 Depreciation expense was $1,968, $1,673 and $ 1,348 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company capitalized software costs according to FASB ASC 350-40, "Accounting for the costs of Computer Software Developed or Obtained for Internal Use". As of December 31, 2017 and 2016, the Company capitalized an accumulated amount of $5,576 and $4,742, respectively. Amortization for the year ended December 31, 2017 and 2016 was $1,226 and $731, respectively. |
Field Equipment, Net
Field Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Field Equipment [Abstract] | |
Field Equipment, Net | Note 7: Field equipment, net December 31, 2017 2016 Field equipment $ 15,020 $ 11,167 Accumulated depreciation (5,984 ) (2,359 ) Field equipment, net $ 9,036 $ 8,808 Depreciation expense was $4,483, $3,248 and $1,555 for the years ended December 31, 2017, 2016 and 2015, respectively. Write downs of $195, $6,436, and $36 were identified for the years ended December 31, 2017, 2016 and 2015, respectively. The Company made the second generation Optune system available to all patients in the United States in 2016 and 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 |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Other Payables and Accrued Expenses | Note 8: Other payables and accrued expenses December 31, 2017 2016 Employees and payroll accruals $ 13,283 $ 7,541 Taxes payable and others 9,110 3,142 Provision for settlement (Note 12) 5,500 5,500 Deferred revenues 4,959 2,267 Other 144 76 $ 32,996 $ 18,526 |
Employee Benefit Obligations
Employee Benefit Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
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, 2017 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, 2017: Asset Category: Asset allocation (%) Debt Securities 27 Real Estate 22 Equity Securities 30 Others 21 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, 2017 and 2016: December 31, 2017 2016 Change in Benefit Obligation Projected benefit obligation at beginning of year $ 8,241 $ 6,223 Interest cost 54 64 Company service cost 878 498 Employee contributions 417 321 Prior service cost (314 ) - Benefits paid 341 422 Actuarial loss 700 713 Projected benefit obligation at end of year $ 10,317 $ 8,241 Change in Plan Assets Fair value of plan assets at beginning of year $ 5,978 $ 4,433 Actual return on plan assets 882 320 Employer contributions 625 482 Employee contributions 417 321 Benefits paid 341 422 Fair value of plan assets at end of year $ 8,243 $ 5,978 Funded Status at End of year Excess of obligation over assets $ (2,074 ) $ (2,263 ) Change in Accrued Benefit Liability Accrued benefit liability at beginning of year $ (2,263 ) $ (1,790 ) Company contributions made during year 625 482 Net periodic benefit cost for year (1,036 ) (529 ) Net decrease (increase) in accumulated other comprehensive loss 600 (426 ) Accrued benefit liability at end of year $ (2,074 ) $ (2,263 ) December 31, 2017 2016 Non - current plan assets $ 8,243 $ 5,979 Non - current liability 10,317 8,242 Accrued benefit liability at end of year $ (2,074 ) $ (2,263 ) Projected Benefit Payments Projected year 1 $ 166 $ 148 Projected year 2 168 150 Projected year 3 172 152 Projected year 4 1,124 155 Projected year 5 163 1,069 Projected year 6-10 $ 1,053 $ 928 The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2017. The level of inputs used to measure fair value was Level 2. Year ended December 31, 2017 2016 Net Periodic Benefit Cost Service cost $ 878 $ 498 Interest cost (income) 62 (21 ) Expected return on plan assets (42 ) (49 ) Amortization of prior service costs 124 87 Amortization of transition obligation 14 14 Total net periodic benefit cost $ 1,036 $ 529 Weighted average assumptions: Discount rate as of December 31 0.60% 0.60% Expected long-term rate of return on assets 0.60% 0.60% Rate of compensation increase 1.00% 1.00% Mortality and disability assumptions BVG 2015 GT BVG 2015 GT (*) Mortality data used for actuarial calculation. |
Long-Term Loan, Net of Discount
Long-Term Loan, Net of Discount and Issuance Costs | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
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 and the remaining $75,000 was drawn in July 2016. As of December 31, 2017 and 2016, there was $100,000 principal outstanding under the Term Loan Credit Facility. Interest on the Term Loan Credit Facility 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, 2017, the Company was in compliance with such covenants. As of December 31, 2017 and 2016, the total discount of $1,204 and $1,699, respectively, and additional issuance costs of $1,454 and $2,070, 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. On February 7, 2018, the Company prepaid our Term Loan Facility in full from the proceeds of a new term loan credit facility with a new lender. For additional information, see Note 20. |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | Note 11: Other long-term liabilities December 31, 2017 2016 Deferred rent liability $ 746 $ 906 Leasehold improvements financing and other (see a and b below) 128 193 Unrecognized tax benefits (Note 13e) 244 2,400 Term Loan Credit Facility repayment fee (Note 10) 619 534 $ 1,737 $ 4,033 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, 2017 are as follows: 2018 $ 32 2019 34 2020 29 2021 26 2022 27 Thereafter 12 160 Less: current portion of long-term loans (32 ) Long-term loans, net of current portion $ 128 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
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 2020. Future minimum lease payments under non-cancelable operating leases as of December 31, 2017, are as follows: 2018 $ 3,512 2019 2,525 2020 2,049 2021 1,610 2022 1,377 Thereafter 1,356 $ 12,429 Lease and rental expense for the years ended December 31, 2017, 2016 and 2015 was $3,474, $2,748, and $2,194, respectively. As of December 31, 2017 and 2016 the Company pledged bank deposits of $1,038 and $807, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained guarantees by the bank for the fulfillment of the Company’s lease commitments of $1,202 and $955, respectively. In February 2015, the Company entered into a settlement agreement (the “Settlement Agreement”) with the Technion Research and Development Foundation (“Technion”) to resolve certain potential disputes regarding intellectual property developed by the Company’s founder and previously assigned to the Company. Pursuant to the Settlement Agreement, and in exchange for a release of potential disputes from Technion, the Company is obligated to pay a $5.5 million milestone payment (the “Milestone Payment”) to Technion in the quarter following the quarter in which the Company achieves $250.0 million of cumulative net sales (as defined in the Settlement Agreement) (the “Net Sales Milestone”). The Company achieved the Net Sales Milestone in the fourth quarter of 2017. Accordingly, in the first quarter of 2018, the Company anticipates making the Milestone Payment to Technion. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13: Income taxes a. The provision for income taxes from continuing operations is comprised of: Income (loss) before income taxes: Year ended December 31, 2017 2016 2015 United States (U.S.) $ (77,654 ) $ (80,972 ) $ (55,087 ) Non-U.S. 29,157 (40,492 ) (52,060 ) $ (48,497 ) $ (121,464 ) $ (107,147 ) Income taxes expense: Year ended December 31, 2017 2016 2015 Current: U.S. $ 8,491 $ 6,501 $ 891 Non-U.S. 5,028 3,863 3,678 Total current 13,519 10,364 4,569 Deferred: U.S. $ (3 ) $ 1 $ - Non-U.S. (351 ) 16 (135 ) Total deferred (354 ) 17 (135 ) Total income taxes provision $ 13,165 $ 10,381 $ 4,434 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, 2017 2016 2015 U.S statutory income taxes rate 35.0 % 35.0 % 35.0 % Non-deductible expenses (6.8 ) (2.5 ) (2.4 ) Foreign taxes rate differential 15.1 (14.2 ) (19.2 ) Change in valuation allowance (1) (11.9 ) (30.0 ) (18.2 ) State income taxes (1) 18.7 2.3 1.8 Share based compensation (4.5 ) 1.2 - Change in unrecognized taxes expense (0.8 ) (0.7 ) (1.2 ) Other (1) (71.9 ) 0.4 0.1 Effective taxes rate (27.1 )% (8.5 )% (4.1 )% _____________________________ (1) For additional information, see the table below reflecting the net impact of the TCJA. 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 . On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. On the same date, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that the $34.8 million of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities earnings was a provisional amount and a reasonable estimate at December 31, 2017. This remeasurement was fully offset by a valuation allowance resulting in no impact to the Company’s income tax expense for the year ended December 31, 2017. The Company’s subsidiary in the United States does not have any foreign subsidiaries and, therefore, the remaining provisions of the TCJA have no material impact on the Company's results of operations. Additional work is necessary for a more detailed analysis of our deferred tax assets and liabilities as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded in the quarter of 2018 when the analysis is complete. The table below reflects the net impact of the TCJA: Year ended December 31, 2017 ETR before TCJA US Tax Cuts & Jobs Act Impact Reported ETR U.S statutory income taxes rate 35.0 % 0.0 % 35.0 % Non-deductible expenses (6.8 ) 0.0 (6.8 ) Foreign taxes rate differential 15.1 0.0 15.1 Change in valuation allowance (83.4 ) 71.5 (11.9 ) State income taxes 12.8 5.9 18.7 Share based compensation 2.0 (6.5 ) (4.5 ) Change in unrecognized taxes expense (0.9 ) 0.1 (0.8 ) Other (0.9 ) (71.0 ) (71.9 ) Effective taxes rate (27.1 )% 0.0 % (27.1 )% 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, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 6,797 $ 18,770 Revenue recognition 60,099 46,953 Net operating loss carryforwards 972 577 Share based compensation 7,544 3,510 Deferred revenue 1,340 879 Other temporary differences 1,147 1,481 Total gross deferred taxes assets $ 77,899 $ 72,170 Less: valuation allowance (75,804 ) (70,061 ) Total deferred taxes assets $ 2,095 $ 2,109 Deferred tax liabilities: Fixed assets 1,486 1,789 Total gross deferred taxes liabilities $ 1,486 $ 1,789 Net deferred taxes assets $ 609 $ 320 d. Carryforward loss: As of December 31, 2017, one of the Company's Luxembourg subsidiaries has $3.6 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, 2017 2016 2015 Balance at beginning of the year $ 2,400 $ 1,565 $ 308 Additions for taxes positions related current year 55 1,088 848 Additions for taxes positions related to prior years 372 58 409 Reduction related to lapse of applicable statute of limitations - (311 ) - Balance at the end of the year $ 2,827 $ 2,400 $ 1,565 The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2017, 2016 and 2015, the Company accrued $125, $ 31 and $26, 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 years 2013 through 2016. There are no other ongoing income tax audits. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Share Capital | Note 14: Share capital Share capital is composed as follows: Issued and outstanding Number of shares December 31, 2017 2016 Ordinary shares no par value 89,478,032 87,066,446 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. 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, 2017 and 2016: Warrants for ordinary shares December 31, Exercise price Expiration date 2017 2016 per share July 31, 2017 - 547,478 $ 3.59 January 22, 2018 203,241 554,331 3.59 July 21, 2018 304,863 831,504 $ 3.59 508,104 1,933,313 In the years ended December 31, 2017 and 2016, warrants to purchase 1,418,711 and 902,132 ordinary shares, respectively, were cashlessly exercised, resulting in the issuance of 803,138 and 864,341 ordinary shares, respectively. Also, in the year ended December 31, 2017 and 2016 warrants to purchase 6,498 and 220,316 ordinary shares, respectively, with an exercise price of $3.59 per share were exercised for cash 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. d. Share option plans and ESPP: Until the IPO in October 2015, the Company maintained and granted option awards under the 2003 Share Option Plan (the “2003 Plan”) and the 2013 Equity Incentive Share Option Plan (the “2013 Plan”) 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 (“RSUs”), 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 generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan vest in equal installments over a three-year period. On December 31, 2017, 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, 2017. As a result, the number of shares available for issuance under the 2015 Plan increased from 19,730,105 shares to 23,302,529 shares. As of December 31, 2017, 12,971,921 ordinary shares are available for grant under the 2015 Plan. In August, 2015, the Company’s board of directors adopted the 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 259,821 ordinary shares for the plan periods ended till December 31, 2017. 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. As of December 31, 2017, 2,277,705 ordinary shares are available for offering under the ESPP. The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Year ended December 31, 2017 2016 2015 Stock Option Plans Expected term (years) 5.50-6.25 6.25 6.25 Expected volatility 56.74%-59.45% 58.4%-61.70% 59.0%-65.80% Risk-free interest rate 1.97%-2.23% 1.23%-1.88% 1.74%-2.05% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.42 - Expected volatility 76.37%-82.00% 70.45% - Risk-free interest rate 0.62%-1.13% 0.4% - Dividend yield 0.00% 0.00% - A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2017 and changes during the year ended on that date is presented below: Year ended December 31, 2017 Number of options Weighted average exercise price Aggregate intrinsic value Outstanding at beginning of year 11,377,354 $ 9.76 Granted 5,381,613 $ 10.53 Exercised (1,442,522 ) $ 2.64 Forfeited and cancelled (510,418 ) $ 12.54 Outstanding at end of year 14,806,027 $ 10.64 $ 145,755 Exercisable options 6,389,813 $ 8.64 75,547 A summary of the status of the Company’s RSUs as of December 31, 2017 and changes during the year ended on that date is presented below: Year ended December 31, 2017 Number of RSUs Weighted average grant date fair value price Aggregate intrinsic value Unvested at beginning of year - $ - Granted 1,661,619 9.64 Vested - - Forfeited and cancelled (10,400 ) 7.15 Unvested as of December 31, 2017 1,651,219 $ 9.66 $ 33,354 The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2017, 2016 and 2015, was comprised as follows: Year ended December 31, 2017 2016 2015 Cost of revenues $ 467 $ 623 $ 174 Research, development and clinical trials 3,587 3,155 2,529 Sales and marketing 3,784 5,111 2,496 General and administrative 19,278 12,552 6,661 Total share-based compensation expense $ 27,116 $ 21,441 $ 11,860 As of December 31, 2017, there were unrecognized compensation costs of $39,253, which are expected to be recognized over a weighted average period of approximately 2.86 years. The weighted average grant date fair values of the Company’s options granted during the years ended December 31, 2017, 2016 and 2015 were $10.53, $7.37 and $10.64 per share, respectively. The weighted average grant date fair values of the Company’s options forfeited and cancelled during the years ended December 31, 2017, 2016 and 2015 were $ 12.54, $9.72 and $5.73, respectively. The aggregate intrinsic values for the options exercised during the years ended December 31, 2017, 2016 and 2015 were $17,945, $7,673 and $3,546, 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 $20.20, $7.85 and $22.36 per share as of December 31, 2017, 2016, and 2015, respectively. The options outstanding as of December 31, 2017 are as follows: Exercise price Number of options outstanding Weighted average remaining contractual term Number of options exercisable Weighted average remaining contractual term $ (years) (years) 0.23 - 1.00 338,906 1.95 338,906 1.95 1.01 - 7.00 2,627,476 4.29 2,491,388 4.05 7.01 - 11.00 4,395,057 7.56 1,589,345 5.20 11.01 - 16.00 5,260,210 8.21 1,305,796 6.94 16.01 - 20.00 351,750 9.57 - - 20.01 - 27.50 1,832,628 8.15 664,378 7.83 14,806,027 7.20 6,389,813 5.21 |
Financial Expenses, Net
Financial Expenses, Net | 12 Months Ended |
Dec. 31, 2017 | |
Interest And Debt Expense [Abstract] | |
Financial Expenses, Net | Note 15: Financial expenses, net The following table sets forth the Company’s total financial expenses, net: Year ended December 31, 2017 2016 2015 Financial expenses: Interest expense $ (10,261 ) $ (5,937 ) $ (2,373 ) Amortization of credit facility costs (1,111 ) (667 ) (329 ) Foreign currency transaction losses - (396 ) (356 ) Others (321 ) (318 ) (177 ) $ (11,693 ) $ (7,318 ) $ (3,235 ) Financial income: Amortization of treasury bills premium $ 859 $ 512 $ - Foreign currency transaction gains 549 - - Interest income 1,116 659 84 $ 2,524 $ 1,171 $ 84 Total financial expenses, net $ (9,169 ) $ (6,147 ) $ (3,151 ) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
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, 2017 2016 2015 Net loss attributable to ordinary shares as reported $ (61,662 ) $ (131,845 ) $ (111,581 ) Shares used in computing net loss per ordinary share, basic and diluted 88,546,719 85,558,448 30,401,603 Net loss per ordinary share, basic and diluted $ (0.70 ) $ (1.54 ) $ (3.67 ) For the years ended December 31, 2017, 2016 and 2015, 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 | 12 Months Ended |
Dec. 31, 2017 | |
Subcontractor [Abstract] | |
Subcontractor | Note 17: Subcontractor In certain markets and for certain key components, the Company is currently dependent upon sole source suppliers 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 | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Areas Long Lived Assets [Abstract] | |
Supplemental Information | Note 18: Supplemental information The following table presents long-lived assets by location: December 31, 2017 2016 2015 United States $ 10,372 $ 11,981 $ 6,600 Switzerland 5,114 4,346 4,204 Israel 2,081 1,915 1,376 Others 500 378 401 $ 18,067 $ 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, 2017 2016 2015 United States $ 134,688 $ 72,771 $ 30,961 EMEA (*) 42,035 10,028 2,070 Japan 303 89 56 $ 177,026 $ 82,888 $ 33,087 (*) including Germany $ 40,215 $ 9,799 $ 1,803 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | Note 19: Selected quarterly financial information (Unaudited) The following table sets forth selected financial information for the Company: 2017 Three months ended December 31 September 30 June 30 March 31 Net revenues $ 53,661 $ 50,109 $ 38,376 $ 34,880 Gross profit $ 38,021 $ 34,956 $ 25,224 $ 23,216 Operating loss $ (4,506 ) $ (5,919 ) $ (15,530 ) $ (13,373 ) Net loss $ (10,945 ) $ (11,498 ) $ (21,174 ) $ (18,045 ) Basic and diluted net loss per ordinary share $ (0.12 ) $ (0.13 ) $ (0.24 ) $ (0.21 ) Weighted average number of ordinary shares used in computing basic and diluted net loss per share 89,389,364 89,125,646 88,218,868 87,452,983 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 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 20: Subsequent event On February 7, 2018, the Company and certain of its subsidiaries entered into a Loan and Security Agreement (“2018 Loan Agreement”) with BioPharma Credit PLC pursuant to which such lender made a term loan to the Company in the principal amount of $150 million (the “2018 Credit Facility”). The term loan, which was drawn in full upon execution of the 2018 Loan Agreement, bears interest at 9.0% per annum, payable quarterly in arrears. The Company used a portion of the proceeds of the 2018 Credit Facility to repay in full the Company’s obligations under the Term Loan Credit Facility and will continue to use the proceeds to fund general corporate purposes. The 2018 Credit Facility will mature on February 7, 2023, at which time any unpaid principal and accrued unpaid interest in respect of the term loan will be due and payable. The Company may prepay the term loan, in full, at any time. The Company must prepay the term loan (i) in full or in part upon the entry into certain licensing arrangements and (ii) in full in the event of a change of control. In each case, any prepayment (whether permitted or mandatory) is subject to a prepayment premium and/or make-whole payment. The pre-payment fee if the Company prepays outstanding loan amounts prior to February 7, 2021 is 2.0% and is 1.0% if made after the February 7, 2021 but prior to February 7, 2022. All obligations under the 2018 Credit Facility are guaranteed by the Company’s current and future direct and indirect subsidiaries. In addition, the obligations under the 2018 Credit Facility are secured by a first-priority security interest in substantially all of the property and assets of, as well as the equity interests owned by, the Company and certain of the other guarantors. On February 7, 2018, the Term Loan Credit Facility was terminated upon the Company’s repayment in full of the term loan issued thereunder. |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |
Use of Estimates | 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. |
Financial Statements in U.S. Dollars | 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 U.S. 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. |
Principles of Consolidation | 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. |
Cash Equivalents | 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. |
Short-term Investments and Restricted Cash | 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, 2017 and 2016, 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, 2017, 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). |
Trade Receivables | 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. Trade receivables are presented net of allowances and allowance for doubtful accounts of $3,453 and $0, as of December 31, 2017 and 2016, respectively. In order to provide for trade receivables that could become uncollectible in the future, the Company establishes an allowance for doubtful accounts to reduce the carrying value of such receivables to their estimated net realizable value. The Company considers receivables past due based on payment terms and historical cash collection experience. 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. As of December 31, 2017 and 2016, the allowance for doubtful accounts was de minimis Trade receivables include unbilled receivables for therapy provided and not invoiced in the reported period. |
Inventories | g. Inventories: Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. The Company regularly evaluates its ability to realize the value of inventory. If the inventories are deemed damaged, if actual demand for the Company’s delivery systems deteriorates, or if market conditions are less favorable than those projected, inventory write-offs may be required. Inventory write-offs of $489, $ 774 and $0, respectively, were identified for the years ended December 31, 2017, 2016 and 2015. |
Property and Equipment | 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 |
Impairment of Long-Lived Assets | 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, 2017, no impairment losses have been identified other than the impairment of field equipment described below in Note 7. |
Other Long-Term Assets | 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. |
Revenue Recognition | l. Revenue recognition: The Tumor Treating Fields 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 net of allowances from the use of Optune on an accrual basis ratably over the lease term. The allowances are determined based on defined payment terms and historical collection data by Payer. Allowance adjustments related to final settlements for the reported periods are insignificant. 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. Unbilled revenues include revenues recognized for therapy provided and not invoiced in the reported period, and are presented as part of accounts receivable. Revenues are presented net of indirect taxes of $1,293, $ 972 and $ 2,275 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Charity Care | m. Charitable care: The Company provides Optune treatment at no charge to patients who meet certain criteria under its charitable care policy. 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 $1,483, $1,675 and $ 1,376 for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts were determined by applying charitable care as a percentage of total billings to total cost of goods sold. |
Shipping and Handling Costs | 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 $5,322, $3,389 and $ 1,385 for the years ended December 31, 2017, 2016 and 2015, respectively are included in selling and marketing costs. |
Accounting for Share-based Payments | 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 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. The Company selected the Black-Scholes model as the most appropriate fair value method for all equity awards and the Employee Share Purchase Plan (the “ESPP”). For market condition awards, the Company also applied the Monte-Carlo simulation model. The Black-Scholes model requires a number of assumptions, of which the most significant are the share price, expected volatility and the expected equity award 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, 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. |
Fair Value of Financial Instruments | 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. |
Basic and Diluted Net Loss Per Share | 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 pre-IPO preferred shares were not participating securities in losses and, therefore, are not included in the computation of net loss per share. Post-IPO, there are no preferred shares outstanding. 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. |
Income Taxes | 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. |
Concentration of Risks | 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 at top tier 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 2017, one payer represented $15,479, or 9 %, of net revenues. In 2016, the same payer represented $10,393, or 13%, of net revenues. In 2015, the same payer represented $5,595, or 17%, of net revenues. Credit risk with respect to trade receivables is limited. |
Retirement, Pension and Severance Plans | 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, 2017, 2016 and, 2015 was $1,036, $ 529 and $404, 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, 2017, 2016 and 2015 amounted to $506, $430 and $356, respectively. |
Contingent Liabilities | 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, 2017 and 2016, 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. |
Other Comprehensive Income (Loss) | v. Other comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income (loss) and its components. Comprehensive income (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 income (loss), net of taxes, relates to a pension liability and foreign currency translation adjustments. |
Recently Issued and Adopted Accounting Pronouncement | w. Recently adopted accounting pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. x. Recently issued accounting pronouncements: In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), an updated standard on revenue recognition and issued subsequent amendments to the initial guidance in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08, 2016-10, 2016-12 and 2016-20, respectively. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods and services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. In addition, the new standard requires expanded disclosures In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company currently anticipates adopting the new standard effective January 1, 2019 and is evaluating the impact of the adoption of this standard on its consolidated financial statements. In 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 2020. 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, 2018. 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 effects of the adoption of this ASU on the consolidated financial statements. |
Field Equipment | |
Significant Accounting Policies [Line Items] | |
Property and Equipment | i. Field equipment: 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 is equipment being utilized under service agreements, and accounted for in accordance with ASC 840 on a monthly basis as an operating lease. The Company records a write-off provision for any excess, lost or damaged equipment when warranted based on an assessment of the equipment. Write-offs for equipment are included in cost of revenues. During the years ended December 31, 2017, 2016 and 2015, write-offs for $195, $ 6,436 and $36, respectively, were recorded (see Note 7). |
Significant Accounting Polici30
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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 and31
Cash and Cash Equivalents and Short Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | a. Cash and cash equivalents: Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. December 31, 2017 2016 Cash $ 5,522 $ 29,915 Money market funds 73,070 69,865 Total cash and cash equivalents $ 78,592 $ 99,780 |
Receivables and Prepaid Expen32
Receivables and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables And Prepaid Expenses [Abstract] | |
Schedule of Receivables and Prepaid Expenses | December 31, 2017 2016 Advances to and receivables from suppliers $ 2,924 $ 5,829 Government authorities 2,006 1,867 Prepaid expenses 2,890 2,238 Others 285 150 $ 8,105 $ 10,084 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2017 2016 Raw materials $ 4,276 $ 5,243 Work in process 8,435 8,292 Finished goods 9,314 12,014 $ 22,025 $ 25,549 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment Net | December 31, 2017 2016 Cost: Computers and laboratory equipment $ 10,833 $ 10,121 Office furniture 2,303 1,931 Production equipment 1,222 1,179 Leasehold improvements 3,614 2,885 Total cost $ 17,972 $ 16,116 Accumulated depreciation and amortization (8,941 ) (6,304 ) Depreciated cost $ 9,031 $ 9,812 |
Field Equipment, Net (Tables)
Field Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Field Equipment [Abstract] | |
Schedule of Field Equipment, Net | December 31, 2017 2016 Field equipment $ 15,020 $ 11,167 Accumulated depreciation (5,984 ) (2,359 ) Field equipment, net $ 9,036 $ 8,808 |
Other Payables and Accrued Ex36
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Other Payables and Accrued Expenses | December 31, 2017 2016 Employees and payroll accruals $ 13,283 $ 7,541 Taxes payable and others 9,110 3,142 Provision for settlement (Note 12) 5,500 5,500 Deferred revenues 4,959 2,267 Other 144 76 $ 32,996 $ 18,526 |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Targeted Allocation of Plan Assets | The targeted allocation for these funds is as follows: Asset Allocation by Category as of December 31, 2017: Asset Category: Asset allocation (%) Debt Securities 27 Real Estate 22 Equity Securities 30 Others 21 Total 100 |
Schedule of Change in Benefit Obligations | 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, 2017 and 2016: December 31, 2017 2016 Change in Benefit Obligation Projected benefit obligation at beginning of year $ 8,241 $ 6,223 Interest cost 54 64 Company service cost 878 498 Employee contributions 417 321 Prior service cost (314 ) - Benefits paid 341 422 Actuarial loss 700 713 Projected benefit obligation at end of year $ 10,317 $ 8,241 Change in Plan Assets Fair value of plan assets at beginning of year $ 5,978 $ 4,433 Actual return on plan assets 882 320 Employer contributions 625 482 Employee contributions 417 321 Benefits paid 341 422 Fair value of plan assets at end of year $ 8,243 $ 5,978 Funded Status at End of year Excess of obligation over assets $ (2,074 ) $ (2,263 ) Change in Accrued Benefit Liability Accrued benefit liability at beginning of year $ (2,263 ) $ (1,790 ) Company contributions made during year 625 482 Net periodic benefit cost for year (1,036 ) (529 ) Net decrease (increase) in accumulated other comprehensive loss 600 (426 ) Accrued benefit liability at end of year $ (2,074 ) $ (2,263 ) December 31, 2017 2016 Non - current plan assets $ 8,243 $ 5,979 Non - current liability 10,317 8,242 Accrued benefit liability at end of year $ (2,074 ) $ (2,263 ) Projected Benefit Payments Projected year 1 $ 166 $ 148 Projected year 2 168 150 Projected year 3 172 152 Projected year 4 1,124 155 Projected year 5 163 1,069 Projected year 6-10 $ 1,053 $ 928 |
Schedule of Fair Value the Plan Assets | The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2017. The level of inputs used to measure fair value was Level 2. Year ended December 31, 2017 2016 Net Periodic Benefit Cost Service cost $ 878 $ 498 Interest cost (income) 62 (21 ) Expected return on plan assets (42 ) (49 ) Amortization of prior service costs 124 87 Amortization of transition obligation 14 14 Total net periodic benefit cost $ 1,036 $ 529 Weighted average assumptions: Discount rate as of December 31 0.60% 0.60% Expected long-term rate of return on assets 0.60% 0.60% Rate of compensation increase 1.00% 1.00% Mortality and disability assumptions BVG 2015 GT BVG 2015 GT (*) Mortality data used for actuarial calculation. |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-term Liabilities | December 31, 2017 2016 Deferred rent liability $ 746 $ 906 Leasehold improvements financing and other (see a and b below) 128 193 Unrecognized tax benefits (Note 13e) 244 2,400 Term Loan Credit Facility repayment fee (Note 10) 619 534 $ 1,737 $ 4,033 |
Schedule of Leasehold Improvement Financing Repayments | The above principal leasehold improvement financing repayments as of December 31, 2017 are as follows: 2018 $ 32 2019 34 2020 29 2021 26 2022 27 Thereafter 12 160 Less: current portion of long-term loans (32 ) Long-term loans, net of current portion $ 128 |
Commitments and Contingent Li39
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of December 31, 2017, are as follows: 2018 $ 3,512 2019 2,525 2020 2,049 2021 1,610 2022 1,377 Thereafter 1,356 $ 12,429 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Taxes, Domestic and Foreign | a. The provision for income taxes from continuing operations is comprised of: Income (loss) before income taxes: Year ended December 31, 2017 2016 2015 United States (U.S.) $ (77,654 ) $ (80,972 ) $ (55,087 ) Non-U.S. 29,157 (40,492 ) (52,060 ) $ (48,497 ) $ (121,464 ) $ (107,147 ) |
Schedule of Components of Income Tax Expense | a. The provision for income taxes from continuing operations is comprised of: Income taxes expense: Year ended December 31, 2017 2016 2015 Current: U.S. $ 8,491 $ 6,501 $ 891 Non-U.S. 5,028 3,863 3,678 Total current 13,519 10,364 4,569 Deferred: U.S. $ (3 ) $ 1 $ - Non-U.S. (351 ) 16 (135 ) Total deferred (354 ) 17 (135 ) Total income taxes provision $ 13,165 $ 10,381 $ 4,434 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes compared with the amounts at the notional federal statutory rate was: Year ended December 31, 2017 2016 2015 U.S statutory income taxes rate 35.0 % 35.0 % 35.0 % Non-deductible expenses (6.8 ) (2.5 ) (2.4 ) Foreign taxes rate differential 15.1 (14.2 ) (19.2 ) Change in valuation allowance (1) (11.9 ) (30.0 ) (18.2 ) State income taxes (1) 18.7 2.3 1.8 Share based compensation (4.5 ) 1.2 - Change in unrecognized taxes expense (0.8 ) (0.7 ) (1.2 ) Other (1) (71.9 ) 0.4 0.1 Effective taxes rate (27.1 )% (8.5 )% (4.1 )% (1) For additional information, see the table below reflecting the net impact of the TCJA. |
Summery of Net Impact of the Tax Cuts and Jobs Act | The table below reflects the net impact of the TCJA: Year ended December 31, 2017 ETR before TCJA US Tax Cuts & Jobs Act Impact Reported ETR U.S statutory income taxes rate 35.0 % 0.0 % 35.0 % Non-deductible expenses (6.8 ) 0.0 (6.8 ) Foreign taxes rate differential 15.1 0.0 15.1 Change in valuation allowance (83.4 ) 71.5 (11.9 ) State income taxes 12.8 5.9 18.7 Share based compensation 2.0 (6.5 ) (4.5 ) Change in unrecognized taxes expense (0.9 ) 0.1 (0.8 ) Other (0.9 ) (71.0 ) (71.9 ) Effective taxes rate (27.1 )% 0.0 % (27.1 )% |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 6,797 $ 18,770 Revenue recognition 60,099 46,953 Net operating loss carryforwards 972 577 Share based compensation 7,544 3,510 Deferred revenue 1,340 879 Other temporary differences 1,147 1,481 Total gross deferred taxes assets $ 77,899 $ 72,170 Less: valuation allowance (75,804 ) (70,061 ) Total deferred taxes assets $ 2,095 $ 2,109 Deferred tax liabilities: Fixed assets 1,486 1,789 Total gross deferred taxes liabilities $ 1,486 $ 1,789 Net deferred taxes assets $ 609 $ 320 |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | e. A reconciliation of the beginning and ending balances of uncertain tax benefits is as follows: December 31, 2017 2016 2015 Balance at beginning of the year $ 2,400 $ 1,565 $ 308 Additions for taxes positions related current year 55 1,088 848 Additions for taxes positions related to prior years 372 58 409 Reduction related to lapse of applicable statute of limitations - (311 ) - Balance at the end of the year $ 2,827 $ 2,400 $ 1,565 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Schedule of Share Capital | Share capital is composed as follows: Issued and outstanding Number of shares December 31, 2017 2016 Ordinary shares no par value 89,478,032 87,066,446 |
Schedule of Warrants to Purchase Ordinary Shares were Issued to Purchase of Convertible Preferred Shares | 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, 2017 and 2016: Warrants for ordinary shares December 31, Exercise price Expiration date 2017 2016 per share July 31, 2017 - 547,478 $ 3.59 January 22, 2018 203,241 554,331 3.59 July 21, 2018 304,863 831,504 $ 3.59 508,104 1,933,313 In the years ended December 31, 2017 and 2016, warrants to purchase 1,418,711 and 902,132 ordinary shares, respectively, were cashlessly exercised, resulting in the issuance of 803,138 and 864,341 ordinary shares, respectively. Also, in the year ended December 31, 2017 and 2016 warrants to purchase 6,498 and 220,316 ordinary shares, respectively, with an exercise price of $3.59 per share were exercised for cash |
Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model | The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Year ended December 31, 2017 2016 2015 Stock Option Plans Expected term (years) 5.50-6.25 6.25 6.25 Expected volatility 56.74%-59.45% 58.4%-61.70% 59.0%-65.80% Risk-free interest rate 1.97%-2.23% 1.23%-1.88% 1.74%-2.05% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.42 - Expected volatility 76.37%-82.00% 70.45% - Risk-free interest rate 0.62%-1.13% 0.4% - Dividend yield 0.00% 0.00% - |
Schedule of Stock Options to Purchase Ordinary Shares | A summary of the status of the Company’s options to purchase ordinary shares as of December 31, 2017 and changes during the year ended on that date is presented below: Year ended December 31, 2017 Number of options Weighted average exercise price Aggregate intrinsic value Outstanding at beginning of year 11,377,354 $ 9.76 Granted 5,381,613 $ 10.53 Exercised (1,442,522 ) $ 2.64 Forfeited and cancelled (510,418 ) $ 12.54 Outstanding at end of year 14,806,027 $ 10.64 $ 145,755 Exercisable options 6,389,813 $ 8.64 75,547 |
Schedule of RSUs | A summary of the status of the Company’s RSUs as of December 31, 2017 and changes during the year ended on that date is presented below: Year ended December 31, 2017 Number of RSUs Weighted average grant date fair value price Aggregate intrinsic value Unvested at beginning of year - $ - Granted 1,661,619 9.64 Vested - - Forfeited and cancelled (10,400 ) 7.15 Unvested as of December 31, 2017 1,651,219 $ 9.66 $ 33,354 |
Schedule of Equity-Based Compensation Expenses Related to Company's Equity-Based Awards | The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2017, 2016 and 2015, was comprised as follows: Year ended December 31, 2017 2016 2015 Cost of revenues $ 467 $ 623 $ 174 Research, development and clinical trials 3,587 3,155 2,529 Sales and marketing 3,784 5,111 2,496 General and administrative 19,278 12,552 6,661 Total share-based compensation expense $ 27,116 $ 21,441 $ 11,860 |
Schedule of Stock Option Outstanding | The options outstanding as of December 31, 2017 are as follows: Exercise price Number of options outstanding Weighted average remaining contractual term Number of options exercisable Weighted average remaining contractual term $ (years) (years) 0.23 - 1.00 338,906 1.95 338,906 1.95 1.01 - 7.00 2,627,476 4.29 2,491,388 4.05 7.01 - 11.00 4,395,057 7.56 1,589,345 5.20 11.01 - 16.00 5,260,210 8.21 1,305,796 6.94 16.01 - 20.00 351,750 9.57 - - 20.01 - 27.50 1,832,628 8.15 664,378 7.83 14,806,027 7.20 6,389,813 5.21 |
Financial Expenses, Net (Tables
Financial Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest And Debt Expense [Abstract] | |
Schedule of Financial Expenses, Net | The following table sets forth the Company’s total financial expenses, net Year ended December 31, 2017 2016 2015 Financial expenses: Interest expense $ (10,261 ) $ (5,937 ) $ (2,373 ) Amortization of credit facility costs (1,111 ) (667 ) (329 ) Foreign currency transaction losses - (396 ) (356 ) Others (321 ) (318 ) (177 ) $ (11,693 ) $ (7,318 ) $ (3,235 ) Financial income: Amortization of treasury bills premium $ 859 $ 512 $ - Foreign currency transaction gains 549 - - Interest income 1,116 659 84 $ 2,524 $ 1,171 $ 84 Total financial expenses, net $ (9,169 ) $ (6,147 ) $ (3,151 ) |
Basic and Diluted Net Loss Pe43
Basic and Diluted Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
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, 2017 2016 2015 Net loss attributable to ordinary shares as reported $ (61,662 ) $ (131,845 ) $ (111,581 ) Shares used in computing net loss per ordinary share, basic and diluted 88,546,719 85,558,448 30,401,603 Net loss per ordinary share, basic and diluted $ (0.70 ) $ (1.54 ) $ (3.67 ) |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Areas Long Lived Assets [Abstract] | |
Schedule of Long-Lived Assets by Location | The following table presents long-lived assets by location: December 31, 2017 2016 2015 United States $ 10,372 $ 11,981 $ 6,600 Switzerland 5,114 4,346 4,204 Israel 2,081 1,915 1,376 Others 500 378 401 $ 18,067 $ 18,620 $ 12,581 |
Schedule of Revenues by Geographic Region | The Company’s net revenues by geographic region, based on the patient’s location are summarized as follows: Year ended December 31, 2017 2016 2015 United States $ 134,688 $ 72,771 $ 30,961 EMEA (*) 42,035 10,028 2,070 Japan 303 89 56 $ 177,026 $ 82,888 $ 33,087 (*) including Germany $ 40,215 $ 9,799 $ 1,803 |
Selected Quarterly Financial 45
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Summary of Selected Quarterly Financial Information (Unaudited) | The following table sets forth selected financial information for the Company 2017 Three months ended December 31 September 30 June 30 March 31 Net revenues $ 53,661 $ 50,109 $ 38,376 $ 34,880 Gross profit $ 38,021 $ 34,956 $ 25,224 $ 23,216 Operating loss $ (4,506 ) $ (5,919 ) $ (15,530 ) $ (13,373 ) Net loss $ (10,945 ) $ (11,498 ) $ (21,174 ) $ (18,045 ) Basic and diluted net loss per ordinary share $ (0.12 ) $ (0.13 ) $ (0.24 ) $ (0.21 ) Weighted average number of ordinary shares used in computing basic and diluted net loss per share 89,389,364 89,125,646 88,218,868 87,452,983 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 |
Organization and Basis of Pre46
Organization and Basis of Presentation - Additional Information (Detail) | 1 Months Ended | |||
Sep. 30, 2015$ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Sep. 30, 2015£ / shares | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Common stock, par value | $ / shares | ||||
Preferred shares no par value | $ / shares | ||||
Share split ratio | 5.913 | |||
Preferred stock, par value | £ / shares | £ 0.01 | |||
Common stock, par value | £ / shares | £ 0.01 |
Significant Accounting Polici47
Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | ||||||||||||
Impairment losses on short-term investments | $ 0 | |||||||||||
Allowance for doubtful accounts receivable | $ 3,453,000 | $ 0 | $ 3,453,000 | $ 0 | 3,453,000 | |||||||
Inventory write-offs | 489,000 | 774,000 | $ 0 | |||||||||
Impairment of long-lived assets | 0 | |||||||||||
Indirect taxes | 1,293,000 | 972,000 | 2,275,000 | |||||||||
Cost related to charitable care | 1,483,000 | 1,675,000 | 1,376,000 | |||||||||
Shipping and handling costs | 5,322,000 | 3,389,000 | 1,385,000 | |||||||||
Dividends declared | 0 | |||||||||||
Dividends paid | 0 | |||||||||||
Net revenues | 53,661,000 | $ 50,109,000 | $ 38,376,000 | $ 34,880,000 | 30,242,000 | $ 21,674,000 | $ 17,919,000 | $ 13,053,000 | 177,026,000 | 82,888,000 | 33,087,000 | |
Pension expense | 1,036,000 | 529,000 | 404,000 | |||||||||
Severance costs | 506,000 | 430,000 | 356,000 | |||||||||
Increase to trade receivables | 23,228,000 | 6,339,000 | ||||||||||
Accounting Standards Update 2016-09 [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Cumulative deficit effect adjustment resulting from ASU adoption | $ 670,000 | 670,000 | ||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Cumulative deficit effect adjustment resulting from ASU adoption | $ 2,570,000 | 2,570,000 | $ 2,570,000 | |||||||||
Increase to trade receivables | 3,215,000 | |||||||||||
Increase to deferred revenue | 645,000 | |||||||||||
Sales Revenue Net | Customer One | Customer Concentration Risk | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Net revenues | $ 15,479,000 | $ 10,393,000 | $ 5,595,000 | |||||||||
Concentration risk percentage | 9.00% | 13.00% | 17.00% | |||||||||
Employee Stock Option | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Share-based award requisite service period | 4 years | |||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||||||||
Field Equipment Under Operating Leases | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Equipment write-downs included in cost of revenue | $ 195,000 | $ 6,436,000 | $ 36,000 | |||||||||
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 Polici48
Significant Accounting Policies - Property and Equipment at Cost Using Straight-Line Method (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 and49
Cash and Cash Equivalents and Short Term Investments - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash And Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 78,592 | $ 99,780 | $ 119,423 | $ 57,613 |
Cash | ||||
Cash And Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | 5,522 | 29,915 | ||
Money market funds | ||||
Cash And Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 73,070 | $ 69,865 |
Cash and Cash Equivalents and50
Cash and Cash Equivalents and Short Term Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments Debt And Equity Securities [Abstract] | ||
Short-term investments | $ 104,719 | $ 119,854 |
Estimated fair value of short-term investments | $ 104,655 | $ 119,825 |
Receivables and Prepaid Expen51
Receivables and Prepaid Expenses - Schedule of Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables And Prepaid Expenses [Abstract] | ||
Advances to and receivables from suppliers | $ 2,924 | $ 5,829 |
Government authorities | 2,006 | 1,867 |
Prepaid expenses | 2,890 | 2,238 |
Others | 285 | 150 |
Receivables and prepaid expenses | $ 8,105 | $ 10,084 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,276 | $ 5,243 |
Work in process | 8,435 | 8,292 |
Finished goods | 9,314 | 12,014 |
Total | $ 22,025 | $ 25,549 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 17,972 | $ 16,116 |
Accumulated depreciation and amortization | (8,941) | (6,304) |
Depreciated cost | 9,031 | 9,812 |
Computers and laboratory equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 10,833 | 10,121 |
Office furniture | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,303 | 1,931 |
Production equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,222 | 1,179 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,614 | $ 2,885 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1,968 | $ 1,673 | $ 1,348 |
Accumulated computer software capitalized | 5,576 | 4,742 | |
Computer software amortization | $ 1,226 | $ 731 |
Field Equipment, Net - Schedule
Field Equipment, Net - Schedule of Field Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Field Equipment [Abstract] | ||
Field equipment | $ 15,020 | $ 11,167 |
Accumulated depreciation | (5,984) | (2,359) |
Field equipment, net | $ 9,036 | $ 8,808 |
Field Equipment, Net - Addition
Field Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Field Equipment [Line Items] | |||
Depreciation | $ 1,968 | $ 1,673 | $ 1,348 |
Impairment of field equipment | 6,412 | ||
Field equipment | |||
Field Equipment [Line Items] | |||
Depreciation | 4,483 | 3,248 | 1,555 |
Field Equipment Under Operating Leases | |||
Field Equipment [Line Items] | |||
Impairment of field equipment | $ 195 | 6,436 | $ 36 |
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 Ex57
Other Payables and Accrued Expenses - Schedule of Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Employees and payroll accruals | $ 13,283 | $ 7,541 |
Taxes payable and others | 9,110 | 3,142 |
Provision for settlement (Note 12) | 5,500 | 5,500 |
Deferred revenues | 4,959 | 2,267 |
Other | 144 | 76 |
Other payables and accrued expenses | $ 32,996 | $ 18,526 |
Employee Benefit Obligations -
Employee Benefit Obligations - Schedule of Asset Allocation by Category (Details) | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations | 100.00% |
Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations | 27.00% |
Real Estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations | 22.00% |
Equity Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations | 30.00% |
Others | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations | 21.00% |
Employee Benefit Obligations 59
Employee Benefit Obligations - Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Benefit Obligation | ||
Projected benefit obligation at beginning of year | $ 8,241 | $ 6,223 |
Interest cost | 54 | 64 |
Company service cost | 878 | 498 |
Employee contributions | 417 | 321 |
Prior service cost | (314) | |
Benefits paid | 341 | 422 |
Actuarial loss | 700 | 713 |
Projected benefit obligation at end of year | 10,317 | 8,241 |
Change in Plan Assets | ||
Fair value of plan assets at beginning of year | 5,978 | 4,433 |
Actual return on plan assets | 882 | 320 |
Employer contributions | 625 | 482 |
Employee contributions | 417 | 321 |
Benefits paid | 341 | 422 |
Fair value of plan assets at end of year | 8,243 | 5,978 |
Funded Status at End of year | ||
Excess of obligation over assets | (2,074) | (2,263) |
Change in Accrued Benefit Liability | ||
Accrued benefit liability at beginning of year | (2,263) | (1,790) |
Company contributions made during year | 625 | 482 |
Net periodic benefit cost for year | (1,036) | (529) |
Net decrease (increase) in accumulated other comprehensive loss | 600 | (426) |
Accrued benefit liability at end of year | (2,074) | (2,263) |
Non - current plan assets | 8,243 | 5,979 |
Non - current liability | 10,317 | 8,242 |
Accrued benefit liability at end of year | (2,074) | (2,263) |
Projected Benefit Payments | ||
Projected year 1 | 166 | 148 |
Projected year 2 | 168 | 150 |
Projected year 3 | 172 | 152 |
Projected year 4 | 1,124 | 155 |
Projected year 5 | 163 | 1,069 |
Projected year 6-10 | $ 1,053 | $ 928 |
Employee Benefit Obligations 60
Employee Benefit Obligations - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net Periodic Benefit Cost | ||
Service cost | $ 878 | $ 498 |
Interest cost (income) | 62 | (21) |
Expected return on plan assets | (42) | (49) |
Amortization of prior service costs | 124 | 87 |
Amortization of transition obligation | 14 | 14 |
Total net periodic benefit cost | $ 1,036 | $ 529 |
Weighted average assumptions: | ||
Discount rate as of December 31 | 0.60% | 0.60% |
Expected long-term rate of return on assets | 0.60% | 0.60% |
Rate of compensation increase | 1.00% | 1.00% |
Mortality and disability assumptions | BVG 2015 GT | BVG 2015 GT |
Long-Term Loan, Net of Discou61
Long-Term Loan, Net of Discount and Issuance Costs - Additional Information (Details) - Term Loan - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2016 | |
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 | $ 100,000,000 | ||
Interest on the term loan credit facility | 10.00% | |||
Funding fees payable | 1.50% | |||
Prepayment fee percent | 0.75% | |||
Due date of outstanding principal loan | Jan. 31, 2020 | |||
Frequency of payments | Quarterly | |||
Other Long-term Assets | ||||
Line Of Credit Facility [Line Items] | ||||
Total discount | $ 1,204,000 | 1,699,000 | ||
Additional deferred issuance costs | $ 1,454,000 | $ 2,070,000 | ||
First Year | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment fee percent | 3.00% | |||
Second Year | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment fee percent | 2.00% | |||
Third Year | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment fee percent | 1.00% |
Other Long-term Liabilities - S
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent liability | $ 746 | $ 906 |
Leasehold improvements financing and other (see a and b below) | 128 | 193 |
Unrecognized tax benefits | 244 | 2,400 |
Term Loan Credit Facility repayment fee (Note 10) | 619 | 534 |
Other long-term liabilities | $ 1,737 | $ 4,033 |
Other Long-term Liabilities - A
Other Long-term Liabilities - Additional Information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016CHF (SFr) | Dec. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Jul. 31, 2013CHF (SFr) | May 31, 2013USD ($) | |
Facility in Switzerland | ||||||
Schedule Of Other Long Term Liabilities [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | SFr | SFr 400,000 | |||||
Line of credit | SFr 220,000 | $ 232 | ||||
Principal and interest payment, start date | Jan. 1, 2014 | |||||
Principal and interest payment, end date | Dec. 31, 2018 | |||||
Line of credit facility, Interest rate | 5.00% | |||||
Facility in the U.S. | ||||||
Schedule Of Other Long Term Liabilities [Line Items] | ||||||
Line of credit | $ | $ 226 | $ 226 | ||||
Principal and interest payment, start date | Jun. 1, 2013 | |||||
Principal and interest payment, end date | May 1, 2023 | |||||
Line of credit facility, Interest rate | 7.00% |
Other Long-term Liabilities -64
Other Long-term Liabilities - Schedule of Leasehold Improvement Financing Repayments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
2,018 | $ 32 | |
2,019 | 34 | |
2,020 | 29 | |
2,021 | 26 | |
2,022 | 27 | |
Thereafter | 12 | |
Long-term debt | 160 | |
Less: current portion of long-term loans | (32) | |
Long-term loans, net of current portion | $ 128 | $ 193 |
Commitments and Contingent Li65
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 3,474 | $ 2,748 | $ 2,194 | |
Pledged bank deposits | 1,038 | 807 | ||
Operating Lease Commitments | $ 1,202 | $ 955 | ||
Settlement agreement date | February 2,015 | |||
Settlement Agreement | ||||
Loss Contingencies [Line Items] | ||||
Settlement expense | $ 5,500 | |||
Net sales milestone | $ 250,000 | |||
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 2020 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Operating lease agreements, expiration year | 2,024 | |||
Maximum | Motor Vehicles | ||||
Loss Contingencies [Line Items] | ||||
Operating lease agreements, expiration year | 2,020 |
Commitments and Contingent Li66
Commitments and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 3,512 |
2,019 | 2,525 |
2,020 | 2,049 |
2,021 | 1,610 |
2,022 | 1,377 |
Thereafter | 1,356 |
Total minimum lease payments | $ 12,429 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) before Income Taxes, Domestic and Foreign (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States (U.S.) | $ (77,654) | $ (80,972) | $ (55,087) |
Non-U.S. | 29,157 | (40,492) | (52,060) |
Loss before income taxes | $ (48,497) | $ (121,464) | $ (107,147) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
U.S. | $ 8,491 | $ 6,501 | $ 891 |
Non-U.S. | 5,028 | 3,863 | 3,678 |
Total current | 13,519 | 10,364 | 4,569 |
Deferred: | |||
U.S. | (3) | 1 | |
Non-U.S. | (351) | 16 | (135) |
Total deferred | (354) | 17 | (135) |
Total income taxes provision | $ 13,165 | $ 10,381 | $ 4,434 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Statutory tax rate | 35.00% | 35.00% | 35.00% | |
Tax benefit or expense recognized due to valuation allowance | $ 0 | |||
Deferred tax assets and liabilities related to revaluation | 34,800 | |||
Uncertain tax positions, interest and penalties recognized | 125 | $ 31 | $ 26 | |
Luxemburg | ||||
Income Taxes [Line Items] | ||||
Net operating losses carryforward | $ 3,600 | |||
Scenario Forecast | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 21.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S statutory income taxes rate | 35.00% | 35.00% | 35.00% |
Non-deductible expenses | (6.80%) | (2.50%) | (2.40%) |
Foreign taxes rate differential | 15.10% | (14.20%) | (19.20%) |
Change in valuation allowance | (11.90%) | (30.00%) | (18.20%) |
State income taxes | 18.70% | 2.30% | 1.80% |
Share based compensation | (4.50%) | 1.20% | |
Change in unrecognized taxes expense | (0.80%) | (0.70%) | (1.20%) |
Other | (71.90%) | 0.40% | 0.10% |
Effective taxes rate | (27.10%) | (8.50%) | (4.10%) |
Income Taxes - Summery of Net I
Income Taxes - Summery of Net Impact of the Tax Cuts and Jobs Act (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
U.S statutory income taxes rate | 35.00% | 35.00% | 35.00% |
Non-deductible expenses | (6.80%) | (2.50%) | (2.40%) |
Foreign taxes rate differential | 15.10% | (14.20%) | (19.20%) |
Change in valuation allowance | (11.90%) | (30.00%) | (18.20%) |
State income taxes | 18.70% | 2.30% | 1.80% |
Share based compensation | (4.50%) | 1.20% | |
Change in unrecognized taxes expense | (0.80%) | (0.70%) | (1.20%) |
Other | (71.90%) | 0.40% | 0.10% |
Effective taxes rate | (27.10%) | (8.50%) | (4.10%) |
Scenario, Previously Reported | |||
Income Taxes [Line Items] | |||
U.S statutory income taxes rate | 35.00% | ||
Non-deductible expenses | (6.80%) | ||
Foreign taxes rate differential | 15.10% | ||
Change in valuation allowance | (83.40%) | ||
State income taxes | 12.80% | ||
Share based compensation | 2.00% | ||
Change in unrecognized taxes expense | (0.90%) | ||
Other | (0.90%) | ||
Effective taxes rate | (27.10%) | ||
Restatement Adjustment | |||
Income Taxes [Line Items] | |||
U.S statutory income taxes rate | 0.00% | ||
Non-deductible expenses | 0.00% | ||
Foreign taxes rate differential | 0.00% | ||
Change in valuation allowance | 71.50% | ||
State income taxes | 5.90% | ||
Share based compensation | (6.50%) | ||
Change in unrecognized taxes expense | 0.10% | ||
Other | (71.00%) | ||
Effective taxes rate | 0.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 6,797 | $ 18,770 |
Revenue recognition | 60,099 | 46,953 |
Net operating loss carryforwards | 972 | 577 |
Share based compensation | 7,544 | 3,510 |
Deferred revenue | 1,340 | 879 |
Other temporary differences | 1,147 | 1,481 |
Total gross deferred taxes assets | 77,899 | 72,170 |
Less: valuation allowance | (75,804) | (70,061) |
Total deferred taxes assets | 2,095 | 2,109 |
Deferred tax liabilities: | ||
Fixed assets | 1,486 | 1,789 |
Total gross deferred taxes liabilities | 1,486 | 1,789 |
Net deferred taxes assets | $ 609 | $ 320 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 2,400 | $ 1,565 | $ 308 |
Additions for taxes positions related current year | 55 | 1,088 | 848 |
Additions for taxes positions related to prior years | 372 | 58 | 409 |
Reduction related to lapse of applicable statute of limitations | (311) | ||
Balance at the end of the year | $ 2,827 | $ 2,400 | $ 1,565 |
Share Capital - Schedule of Sha
Share Capital - Schedule of Share Capital (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | ||
Common stock, shares issued | 89,478,032 | 87,066,446 |
Common stock, shares outstanding | 89,478,032 | 87,066,446 |
Share Capital - Schedule of S75
Share Capital - Schedule of Share Capital (Parenthetical) (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2015 |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |||
Common stock, par value |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Oct. 07, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 30, 2017 |
Share Capital [Line Items] | ||||||||
Voting rights of ordinary shareholder | one | |||||||
Number of warrants cashless exercised | 1,418,711 | 902,132 | ||||||
Warrants exercise price | $ 3.59 | $ 3.59 | $ 3.59 | |||||
Credit facility repayment date | Dec. 31, 2013 | |||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Jan. 31, 2016 | |||||||
Unrecognized compensation cost | $ 39,253 | $ 39,253 | ||||||
Unrecognized compensation cost expected recognition weighted average period | 2 years 10 months 10 days | |||||||
Weighted average grant date fair values options granted | $ 10.53 | 7.37 | $ 10.64 | |||||
Weighted average grant date fair values options forfeited and cancelled | $ 12.54 | $ 9.72 | $ 5.73 | |||||
Aggregate intrinsic values options exercised | $ 17,945 | $ 7,673 | $ 3,546 | |||||
Fair value of ordinary shares | $ 20.20 | $ 20.20 | $ 7.85 | $ 22.36 | ||||
Options | ||||||||
Share Capital [Line Items] | ||||||||
Stock awards granted, vesting period | 4 years | |||||||
Stock awards granted, expiration period | 10 years | |||||||
2015 Plan | ||||||||
Share Capital [Line Items] | ||||||||
Percentage increase in number of shares available for issuance | 4.00% | |||||||
Number of shares available for issuance | 23,302,529 | 23,302,529 | 19,730,105 | |||||
Ordinary shares available for grant | 12,971,921 | 12,971,921 | ||||||
2015 Plan | Options | ||||||||
Share Capital [Line Items] | ||||||||
Stock awards granted, vesting period | 4 years | |||||||
Stock awards granted, expiration period | 10 years | |||||||
2015 Plan | RSUs | ||||||||
Share Capital [Line Items] | ||||||||
Stock awards granted, vesting period | 3 years | |||||||
ESPP | ||||||||
Share Capital [Line Items] | ||||||||
Ordinary shares available for grant | 2,277,705 | 2,277,705 | ||||||
Increase in shares authorized for issuance available for grants | 830,000 | 830,000 | ||||||
Percentage of increase in shares outstanding | 1.00% | |||||||
Ordinary Shares | ||||||||
Share Capital [Line Items] | ||||||||
Warrants exercised to ordinary shares | 62,744,517 | |||||||
Issuance of shares in connection with employee stock purchase plan(in shares) | 167,433 | 92,388 | ||||||
Ordinary Shares | IPO | ||||||||
Share Capital [Line Items] | ||||||||
Sale of ordinary shares | 7,876,195 | |||||||
Proceeds from issuance of ordinary shares | $ 157,534 | |||||||
Ordinary Shares | ESPP | ||||||||
Share Capital [Line Items] | ||||||||
Issuance of shares in connection with employee stock purchase plan(in shares) | 259,821 | |||||||
Warrant | ||||||||
Share Capital [Line Items] | ||||||||
The Number of ordinary shares that originally could be purchased by exercise of warrants in cash | 6,498 | 220,316 | ||||||
Warrants exercised to ordinary shares | 315,155 | |||||||
Warrant | Warrants Not Settleable in Cash | ||||||||
Share Capital [Line Items] | ||||||||
Sale of ordinary shares | 803,138 | 864,341 | ||||||
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 | |||||||
Share issuance expenses | $ 319 | |||||||
Liquidation preference per share | $ 23.33 | |||||||
Series H Convertible Preferred Shares | ||||||||
Share Capital [Line Items] | ||||||||
Warrants exercise price | $ 18.77 | $ 18.77 | ||||||
Warrants issued to purchase of preferred shares | 975,644 |
Share Capital - Schedule of War
Share Capital - Schedule of Warrants to Purchase Ordinary Shares that were Issued to Purchase of Convertible Preferred Shares (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class Of Warrant Or Right [Line Items] | ||
Warrants for ordinary shares | 508,104 | 1,933,313 |
Exercise price per share | $ 3.59 | $ 3.59 |
July 31, 2017 | ||
Class Of Warrant Or Right [Line Items] | ||
Expiration date | Jul. 31, 2017 | |
Warrants for ordinary shares | 547,478 | |
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 | 203,241 | 554,331 |
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 | 304,863 | 831,504 |
Exercise price per share | $ 3.59 |
Share Capital - Schedule of Fai
Share Capital - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 years 2 months 30 days | 6 years 2 months 30 days | |
Expected volatility, minimum | 56.74% | 58.40% | 59.00% |
Expected volatility, maximum | 59.45% | 61.70% | 65.80% |
Risk-free interest rate, minimum | 1.97% | 1.23% | 1.74% |
Risk-free interest rate, maximum | 2.23% | 1.88% | 2.05% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Option | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 5 years 6 months | ||
Employee Stock Option | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 years 2 months 30 days | ||
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 5 months 1 day | |
Expected volatility | 70.45% | ||
Expected volatility, minimum | 76.37% | ||
Expected volatility, maximum | 82.00% | ||
Risk-free interest rate | 0.40% | ||
Risk-free interest rate, minimum | 0.62% | ||
Risk-free interest rate, maximum | 1.13% | ||
Dividend yield | 0.00% | 0.00% |
Share Capital - Schedule of Sto
Share Capital - Schedule of Stock Options to Purchase Ordinary Shares (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of options | |
Number of options, Outstanding at beginning of year | shares | 11,377,354 |
Number of options, Granted | shares | 5,381,613 |
Number of options, Exercised | shares | (1,442,522) |
Number of options, Forfeited and cancelled | shares | (510,418) |
Number of options, Outstanding at ending of year | shares | 14,806,027 |
Number of options, Exercisable options | shares | 6,389,813 |
Weighted average exercise price | |
Weighted average exercise price, Outstanding at beginning of year | $ / shares | $ 9.76 |
Weighted average exercise price, Granted | $ / shares | 10.53 |
Weighted average exercise price, Exercised | $ / shares | 2.64 |
Weighted average exercise price, Forfeited and cancelled | $ / shares | 12.54 |
Weighted average exercise price, Outstanding at end of year | $ / shares | 10.64 |
Weighted average exercise price, Exercisable options | $ / shares | $ 8.64 |
Aggregate intrinsic value | |
Aggregate intrinsic value, Outstanding at end of year | $ | $ 145,755 |
Aggregate intrinsic value, Exercisable options | $ | $ 75,547 |
Share Capital - Schedule of RSU
Share Capital - Schedule of RSU's (Details) - RSUs $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of RSUs | |
Number of RSUs, granted | shares | 1,661,619 |
Number of RSUs, forfeited and cancelled | shares | (10,400) |
Number of RSUs, unvested at ending of year | shares | 1,651,219 |
Weighted average grant date fair value price | |
Weighted average grant date date fair value price, granted | $ 9.64 |
Weighted average grant date date fair value price, forfeited and cancelled | 7.15 |
Weighted average grant date date fair value price, unvested at ending of year | 9.66 |
Aggregateintrinsic value | |
Weighted average grant date date fair value price, granted | 9.64 |
Weighted average grant date date fair value price, forfeited and cancelled | $ 7.15 |
Weighted average grant date date fair value price, unvested at ending of year | $ | $ 33,354 |
Share Capital - Equity-Based Co
Share Capital - Equity-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 27,116 | $ 21,441 | $ 11,860 |
Cost of Revenues | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 467 | 623 | 174 |
Research, Development and Clinical Trials | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 3,587 | 3,155 | 2,529 |
Sales and Marketing | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 3,784 | 5,111 | 2,496 |
General and Administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 19,278 | $ 12,552 | $ 6,661 |
Share Capital - Schedule of S82
Share Capital - Schedule of Stock Option Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 14,806,027 | 11,377,354 |
Options outstanding, weighted average remaining contractual term | 7 years 2 months 12 days | |
Number of options exercisable | 6,389,813 | |
Options exercisable, weighted average remaining contractual term | 5 years 2 months 16 days | |
Exercise price 0.23 - 1.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 338,906 | |
Options outstanding, weighted average remaining contractual term | 1 year 11 months 12 days | |
Number of options exercisable | 338,906 | |
Options exercisable, weighted average remaining contractual term | 1 year 11 months 12 days | |
Exercise price 0.23 - 1.00 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 0.23 | |
Exercise price 0.23 - 1.00 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 1 | |
Exercise price 1.01 - 7.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 2,627,476 | |
Options outstanding, weighted average remaining contractual term | 4 years 3 months 15 days | |
Number of options exercisable | 2,491,388 | |
Options exercisable, weighted average remaining contractual term | 4 years 18 days | |
Exercise price 1.01 - 7.00 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 1.01 | |
Exercise price 1.01 - 7.00 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 7 | |
Exercise price 7.01 - 11.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 4,395,057 | |
Options outstanding, weighted average remaining contractual term | 7 years 6 months 21 days | |
Number of options exercisable | 1,589,345 | |
Options exercisable, weighted average remaining contractual term | 5 years 2 months 12 days | |
Exercise price 7.01 - 11.00 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 7.01 | |
Exercise price 7.01 - 11.00 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 11 | |
Exercise price 11.01 - 16.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 5,260,210 | |
Options outstanding, weighted average remaining contractual term | 8 years 2 months 16 days | |
Number of options exercisable | 1,305,796 | |
Options exercisable, weighted average remaining contractual term | 6 years 11 months 8 days | |
Exercise price 11.01 - 16.00 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 11.01 | |
Exercise price 11.01 - 16.00 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 16 | |
Exercise price 16.01 - 20.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 351,750 | |
Options outstanding, weighted average remaining contractual term | 9 years 6 months 25 days | |
Exercise price 16.01 - 20.00 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 16.01 | |
Exercise price 16.01 - 20.00 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 20 | |
Exercise price 20.01 - 27.50 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of options outstanding | 1,832,628 | |
Options outstanding, weighted average remaining contractual term | 8 years 1 month 24 days | |
Number of options exercisable | 664,378 | |
Options exercisable, weighted average remaining contractual term | 7 years 9 months 29 days | |
Exercise price 20.01 - 27.50 | Minimum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 20.01 | |
Exercise price 20.01 - 27.50 | Maximum | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price | $ 27.50 |
Financial Expenses, Net - Sched
Financial Expenses, Net - Schedule of Financial Expenses, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial expenses: | |||
Interest expense | $ (10,261) | $ (5,937) | $ (2,373) |
Amortization of credit facility costs | (1,111) | (667) | (329) |
Foreign currency transaction losses | (396) | (356) | |
Others | (321) | (318) | (177) |
Financial expenses | (11,693) | (7,318) | (3,235) |
Financial income: | |||
Amortization of treasury bills premium | 859 | 512 | |
Foreign currency transaction gains | 549 | ||
Interest income | 1,116 | 659 | 84 |
Financial income | 2,524 | 1,171 | 84 |
Total financial expenses, net | $ (9,169) | $ (6,147) | $ (3,151) |
Basic and Diluted Net Loss Pe84
Basic and Diluted Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to ordinary shares as reported | $ (10,945) | $ (11,498) | $ (21,174) | $ (18,045) | $ (22,168) | $ (33,628) | $ (40,612) | $ (35,437) | $ (61,662) | $ (131,845) | $ (111,581) |
Shares used in computing net loss per ordinary share, basic and diluted | 89,389,364 | 89,125,646 | 88,218,868 | 87,452,983 | 86,760,316 | 85,774,874 | 85,274,683 | 84,397,164 | 88,546,719 | 85,558,448 | 30,401,603 |
Net loss per ordinary share, basic and diluted | $ (0.12) | $ (0.13) | $ (0.24) | $ (0.21) | $ (0.26) | $ (0.39) | $ (0.48) | $ (0.42) | $ (0.70) | $ (1.54) | $ (3.67) |
Supplemental Information - Sche
Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 18,067 | $ 18,620 | $ 12,581 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 10,372 | 11,981 | 6,600 |
Switzerland | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 5,114 | 4,346 | 4,204 |
Israel | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 2,081 | 1,915 | 1,376 |
Others | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 500 | $ 378 | $ 401 |
Supplemental Information - Sc86
Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | $ 53,661 | $ 50,109 | $ 38,376 | $ 34,880 | $ 30,242 | $ 21,674 | $ 17,919 | $ 13,053 | $ 177,026 | $ 82,888 | $ 33,087 |
United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | 134,688 | 72,771 | 30,961 | ||||||||
EMEA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | 42,035 | 10,028 | 2,070 | ||||||||
Japan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | $ 303 | $ 89 | $ 56 |
Supplemental Information - Sc87
Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | $ 53,661 | $ 50,109 | $ 38,376 | $ 34,880 | $ 30,242 | $ 21,674 | $ 17,919 | $ 13,053 | $ 177,026 | $ 82,888 | $ 33,087 |
Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net revenues | $ 40,215 | $ 9,799 | $ 1,803 |
Selected Quarterly Financial 88
Selected Quarterly Financial Information (Unaudited) - Summary of Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net revenues | $ 53,661 | $ 50,109 | $ 38,376 | $ 34,880 | $ 30,242 | $ 21,674 | $ 17,919 | $ 13,053 | $ 177,026 | $ 82,888 | $ 33,087 |
Gross profit | 38,021 | 34,956 | 25,224 | 23,216 | 19,268 | 10,556 | 1,710 | 5,071 | 121,417 | 36,606 | 12,477 |
Operating loss | (4,506) | (5,919) | (15,530) | (13,373) | (17,877) | (28,265) | (37,237) | (31,938) | (39,328) | (115,317) | (103,996) |
Net loss | $ (10,945) | $ (11,498) | $ (21,174) | $ (18,045) | $ (22,168) | $ (33,628) | $ (40,612) | $ (35,437) | $ (61,662) | $ (131,845) | $ (111,581) |
Basic and diluted net loss per ordinary share | $ (0.12) | $ (0.13) | $ (0.24) | $ (0.21) | $ (0.26) | $ (0.39) | $ (0.48) | $ (0.42) | $ (0.70) | $ (1.54) | $ (3.67) |
Weighted average number of ordinary shares used in computing basic and diluted net loss per share | 89,389,364 | 89,125,646 | 88,218,868 | 87,452,983 | 86,760,316 | 85,774,874 | 85,274,683 | 84,397,164 | 88,546,719 | 85,558,448 | 30,401,603 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event - 2018 Loan Agreement $ in Millions | Feb. 07, 2018USD ($) |
Subsequent Event [Line Items] | |
Term loan, principal amount | $ 150 |
Interest rate | 9.00% |
Interest, frequency of payment | quarterly |
Expiration date | Feb. 7, 2023 |
Prior to February 7, 2021 | |
Subsequent Event [Line Items] | |
Pre-payment fee, percentage | 2.00% |
February 7, 2021 to February 7, 2022 | |
Subsequent Event [Line Items] | |
Pre-payment fee, percentage | 1.00% |