Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NVCR | |
Entity Registrant Name | Novocure Ltd | |
Entity Central Index Key | 0001645113 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 95,766,474 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 152,067 | $ 140,622 |
Short-term investments | 104,535 | 105,256 |
Restricted cash | 2,094 | 2,134 |
Trade receivables | 39,220 | 36,523 |
Receivables and prepaid expenses | 13,619 | 14,279 |
Inventories | 24,138 | 22,555 |
Total current assets | 335,673 | 321,369 |
LONG-TERM ASSETS: | ||
Property and equipment, net | 8,421 | 8,442 |
Field equipment, net | 7,266 | 6,924 |
Right-of-use assets, net | 13,920 | 0 |
Other long-term assets | 4,975 | 3,058 |
Total long-term assets | 34,582 | 18,424 |
TOTAL ASSETS | 370,255 | 339,793 |
CURRENT LIABILITIES: | ||
Trade payables | 29,943 | 26,708 |
Other payables, lease liabilities and accrued expenses | 41,005 | 37,852 |
Total current liabilities | 70,948 | 64,560 |
LONG-TERM LIABILITIES: | ||
Long-term loan, net of discount and issuance costs | 149,305 | 149,268 |
Deferred revenue | 9,407 | 9,929 |
Employee benefit liabilities | 2,823 | 2,683 |
Long-term lease liabilities | 11,015 | 0 |
Other long-term liabilities | 363 | 1,094 |
Total long-term liabilities | 172,913 | 162,974 |
TOTAL LIABILITIES | 243,861 | 227,534 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 95,692,797 shares and 93,254,185 shares at March 31, 2019 (unaudited) and December 31, 2018, respectively | 0 | 0 |
Additional paid-in capital | 783,941 | 757,314 |
Accumulated other comprehensive income (loss) | (1,742) | (1,400) |
Retained earnings (accumulated deficit) | (655,805) | (643,655) |
Total shareholders' equity | 126,394 | 112,259 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 370,255 | $ 339,793 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 95,692,797 | 93,254,185 |
Common stock, shares outstanding | 95,692,797 | 93,254,185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net revenues | $ 73,309 | $ 52,125 | $ 248,069 |
Cost of revenues | 19,814 | 18,238 | 80,048 |
Gross profit | 53,495 | 33,887 | 168,021 |
Operating costs and expenses: | |||
Research, development and clinical trials | 17,042 | 11,104 | 50,574 |
Sales and marketing | 22,333 | 18,135 | 77,663 |
General and administrative | 20,238 | 17,325 | 73,456 |
Total operating costs and expenses | 59,613 | 46,564 | 201,693 |
Operating income (loss) | (6,118) | (12,677) | (33,672) |
Financial expenses (income), net | 2,371 | 4,853 | 12,270 |
Income (loss) before income taxes | (8,489) | (17,530) | (45,942) |
Income taxes | 3,661 | 3,194 | 17,617 |
Net income (loss) | $ (12,150) | $ (20,724) | $ (63,559) |
Basic and diluted net income (loss) per ordinary share | $ (0.13) | $ (0.23) | $ (0.69) |
Weighted average number of ordinary shares used in computing basic and diluted net income (loss) per share | 94,811,282 | 89,985,612 | 91,828,043 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (12,150) | $ (20,724) | $ (63,559) |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation adjustments | (261) | 10 | 27 |
Pension benefit plan | (81) | 5 | (84) |
Total comprehensive income (loss) | $ (12,492) | $ (20,709) | $ (63,616) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | |
Balance at Dec. 31, 2017 | $ 113,564 | $ 697,165 | $ (1,343) | $ (582,258) | ||
Balance (in shares) at Dec. 31, 2017 | 89,478,032 | |||||
Share-based compensation to employees | 8,520 | 8,520 | ||||
Exercise of options and warrants and vested RSUs | 2,581 | 2,581 | ||||
Exercise of options and warrants and vested RSUs (in shares) | 920,869 | |||||
Cumulative effect adjustment on retained earnings (*) | [1] | 2,162 | 2,162 | |||
Other comprehensive income (loss), net of tax benefit | 15 | 15 | ||||
Net income (loss) | (20,724) | (20,724) | ||||
Balance at Mar. 31, 2018 | 106,118 | 708,266 | (1,328) | (600,820) | ||
Balance (in shares) at Mar. 31, 2018 | 90,398,901 | |||||
Balance at Dec. 31, 2017 | 113,564 | 697,165 | (1,343) | (582,258) | ||
Balance (in shares) at Dec. 31, 2017 | 89,478,032 | |||||
Net income (loss) | (63,559) | |||||
Balance at Dec. 31, 2018 | 112,259 | 757,314 | (1,400) | (643,655) | ||
Balance (in shares) at Dec. 31, 2018 | 93,254,185 | |||||
Share-based compensation to employees | 9,649 | 9,649 | ||||
Exercise of options and warrants and vested RSUs | 16,978 | 16,978 | ||||
Exercise of options and warrants and vested RSUs (in shares) | 2,438,612 | |||||
Other comprehensive income (loss), net of tax benefit | (342) | (342) | ||||
Net income (loss) | (12,150) | (12,150) | ||||
Balance at Mar. 31, 2019 | $ 126,394 | $ 783,941 | $ (1,742) | $ (655,805) | ||
Balance (in shares) at Mar. 31, 2019 | 95,692,797 | |||||
[1] | Resulting from the adoption of ASC 606. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Other comprehensive income (loss), tax benefit | $ 11 | $ 5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (12,150) | $ (20,724) | $ (63,559) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,929 | 2,203 | 9,006 |
Asset write-downs and impairment of field equipment | 75 | 49 | 407 |
Share-based compensation to employees | 9,649 | 8,520 | 39,846 |
Decrease (increase) in trade receivables | (2,697) | (1,672) | (4,151) |
Amortization of discount (premium) | (578) | 2,427 | 1,022 |
Decrease (increase) in receivables and prepaid expenses | 661 | (1,834) | (6,174) |
Decrease (increase) in inventories | (1,583) | 1,638 | (529) |
Decrease (increase) in other long-term assets | (1,899) | (620) | (949) |
Decrease (increase) in right of use assets, net | 1,813 | ||
Increase (decrease) in trade payables | 3,235 | 2,213 | 9,503 |
Increase (decrease) in other payables and accrued expenses | (989) | (8,300) | 4,210 |
Increase (decrease) in employee benefit liabilities, net | 43 | 76 | 133 |
Increase (decrease) in long-term lease liability | (577) | ||
Increase (decrease) in other long-term liabilities | (1,247) | (800) | 9,370 |
Net cash provided by (used in) operating activities | (4,315) | (16,824) | (1,865) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (860) | (737) | (2,916) |
Purchase of field equipment | (1,465) | (1,370) | (3,795) |
Proceeds from maturity of short-term investments | 105,661 | 45,000 | 255,000 |
Purchase of short-term investments | (104,325) | (44,750) | (253,782) |
Net cash provided by (used in) investing activities | (989) | (1,857) | (5,493) |
Cash flows from financing activities: | |||
Proceeds from issuance of shares, net | 1,835 | ||
Proceeds from long-term loan, net | 149,150 | 149,150 | |
Repayment of long-term loan | (100,000) | (100,000) | |
Repayment of other long-term loan | (8) | (17) | (84) |
Exercise of options and warrants | 16,978 | 2,581 | 18,468 |
Net cash provided by (used in) financing activities | 16,970 | 51,714 | 69,369 |
Effect of exchange rate changes on cash and cash equivalents | (261) | 10 | 27 |
Increase (decrease) in cash, cash equivalents and restricted cash | 11,405 | 33,043 | 62,038 |
Cash, cash equivalents and restricted cash at beginning of period | 142,756 | 80,718 | 80,718 |
Cash, cash equivalents and restricted cash at the end of the period | 154,161 | 113,761 | 142,756 |
Cash paid during the period for: | |||
Income taxes | 3,033 | 3,758 | 20,350 |
Interest | 3,379 | $ 3,009 | $ 13,334 |
Non-cash activities upon implementation of ASC-842: | |||
Right of use assets obtained in exchange for lease obligations: | $ 15,733 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization . NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Optune for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune to treat adult patients with glioblastoma (“GBM”). Financial statement preparation . The accompanying consolidated financial statements include the accounts of the Company and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation for the periods presented. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 10-K”) filed with the Securities and Exchange Commission on February 28, 2019. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2018 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative year and periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 3 Months Ended |
Mar. 31, 2019 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Cash, Cash equivalents and Short-Term investments | NOTE 2: CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 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. March 31, December 31, 2019 2018 Unaudited Audited Cash $ 9,104 $ 9,197 Money market funds 142,963 131,425 Total cash and cash equivalents $ 152,067 $ 140,622 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. March 31, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,535 $ 105,256 The estimated fair value of the Company’s short-term investments as of March 31, 2019 and December 31, 2018 was $ 104,547 105,266 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3: INVENTORIES Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2019 and December 31, 2018, the Company’s inventories were composed of: March 31, December 31, 2019 2018 Unaudited Audited Raw materials $ 1,526 $ 870 Work in progress 8,176 8,667 Finished products 14,436 13,018 Total $ 24,138 $ 22,555 |
Commitments Rights of Use and C
Commitments Rights of Use and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Rights of Use and Contingent Liabilities | NOTE 4: COMMITMENTS, RIGHTS OF USE AND CONTINGENT LIABILITIES Operating Leases and Rights of Use. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2022. Under ASU No. 2016-02, “Leases (Topic 842), all leases with durations greater than 12 months, including non-cancelable operating leases, are now recognized on the balance sheet. The aggregated present value of lease agreements, net of deferred rent, are recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between other payables within current liabilities and long-term lease liabilities within long-term liabilities. The lease liabilities are presented without consideration for deferred rent. Upon implementation of ASC-842, effective January 1, 2019, the Company recorded an increase in right-of-use assets obtained in exchange for lease obligations of $15,733 on our opening balance sheet. Lease and rental payments for the three months ended March 31, 2019, totaled $1,740. Future minimum lease payments under non-cancelable operating leases as of March 31, 2019, are as follows: March 31, 2019 Unaudited Future minimum lease payments: 2019 (excluding the three months ended March 31, 2019) $ 3,216 2020 3,766 2021 3,475 2022 2,503 2023 1,655 Thereafter 3,258 Total future minimum lease payments $ 17,873 Less imputed interest (3,090 ) Net present value of future minimum lease payments $ 14,783 Presented as of March 31, 2019: Short-term lease liabilities $ 3,768 Long-term lease liabilities 11,015 Net present value of future minimum lease payments $ 14,783 Weighted average of remaining operating lease term 6.38 Weighted average of operating lease discount rate 7.46 % The right-of-use assets are presented net of $863 in deferred rents. Pledged deposits and bank guarantees. As of March 31, 2019 and December 31, 2018, the Company pledged bank deposits of $ 1,134 and $ 1,143 , respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Company’s lease and other contractual commitments of $ 1,294 and $ 1,299 , respectively |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2019 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Share Capital | NOTE 5: SHARE CAPITAL In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted stock units (“RSUs”), performance units, long-term cash awards and other share-based awards. Options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan generally vest over a three-year period. RSUs granted under the 2015 Plan that are cancelled before expiration become available for future grants. As of March 31, 2019, 12,649,222 A summary of the status of the Company’s option plans as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 751,471 47.04 Exercised (2,047,421 ) 8.38 Forfeited and cancelled (40,258 ) 14.47 Outstanding as of March 31, 2019 13,102,007 $ 16.29 Exercisable options 5,852,344 $ 12.79 For the three months, ended March 31, 2019, options to purchase 2,047,421 ordinary shares were exercised, resulting in the issuance of 2,047,421 ordinary shares. A summary of the status of the Company’s RSUs as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 486,506 47.04 Vested (391,191 ) 12.09 Forfeited and cancelled (3,837 ) 21.15 Unvested as of March 31, 2019 1,704,675 $ 23.89 In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company began its offerings under the ESPP on August 1, 2016. As of March 31, 2019, 3,122,410 347,193 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: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 6.23 6.25 5.50-6.25 Expected volatility 55% 55% 52%-55% Risk-free interest rate 2.40% 2.77% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% Dividend yield 0.00% 0.00% 0.00% The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Cost of revenues $ 426 $ 164 $ 1,261 Research, development and clinical trials 1,188 906 4,709 Sales and marketing 1,962 1,436 7,393 General and administrative 6,073 6,014 26,483 Total share-based compensation expense $ 9,649 $ 8,520 $ 39,846 |
Supplemental Information
Supplemental Information | 3 Months Ended |
Mar. 31, 2019 | |
Geographic Areas Long Lived Assets [Abstract] | |
Supplemental Information | NOTE 6: SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: March 31, December 31, 2019 2018 Unaudited Audited United States $ 7,973 $ 8,289 Switzerland 2,939 2,513 Israel 2,428 2,236 Germany 958 1,054 Others 1,389 1,274 Total $ 15,687 $ 15,366 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited United States $ 46,604 $ 37,802 $ 168,414 EMEA (*) 22,520 13,874 72,485 Japan 3,370 449 6,351 Greater China (1) 815 - 819 Total $ 73,309 $ 52,125 $ 248,069 (*) including Germany $ 21,287 $ 13,358 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (“Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative year and periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases. |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Summary of 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. March 31, December 31, 2019 2018 Unaudited Audited Cash $ 9,104 $ 9,197 Money market funds 142,963 131,425 Total cash and cash equivalents $ 152,067 $ 140,622 |
Summary of Amortized Cost and Recorded Basis of T-bills in 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. March 31, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,535 $ 105,256 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2019 and December 31, 2018, the Company’s inventories were composed of: March 31, December 31, 2019 2018 Unaudited Audited Raw materials $ 1,526 $ 870 Work in progress 8,176 8,667 Finished products 14,436 13,018 Total $ 24,138 $ 22,555 |
Commitments Rights of Use and_2
Commitments Rights of Use and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease | Future minimum lease payments under non-cancelable operating leases as of March 31, 2019, are as follows: March 31, 2019 Unaudited Future minimum lease payments: 2019 (excluding the three months ended March 31, 2019) $ 3,216 2020 3,766 2021 3,475 2022 2,503 2023 1,655 Thereafter 3,258 Total future minimum lease payments $ 17,873 Less imputed interest (3,090 ) Net present value of future minimum lease payments $ 14,783 Presented as of March 31, 2019: Short-term lease liabilities $ 3,768 Long-term lease liabilities 11,015 Net present value of future minimum lease payments $ 14,783 Weighted average of remaining operating lease term 6.38 Weighted average of operating lease discount rate 7.46 % |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Schedule of Stock Option Plans | A summary of the status of the Company’s option plans as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 751,471 47.04 Exercised (2,047,421 ) 8.38 Forfeited and cancelled (40,258 ) 14.47 Outstanding as of March 31, 2019 13,102,007 $ 16.29 Exercisable options 5,852,344 $ 12.79 |
Schedule of RSU's | A summary of the status of the Company’s RSUs as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 486,506 47.04 Vested (391,191 ) 12.09 Forfeited and cancelled (3,837 ) 21.15 Unvested as of March 31, 2019 1,704,675 $ 23.89 |
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: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 6.23 6.25 5.50-6.25 Expected volatility 55% 55% 52%-55% Risk-free interest rate 2.40% 2.77% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% Dividend yield 0.00% 0.00% 0.00% |
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards | The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Cost of revenues $ 426 $ 164 $ 1,261 Research, development and clinical trials 1,188 906 4,709 Sales and marketing 1,962 1,436 7,393 General and administrative 6,073 6,014 26,483 Total share-based compensation expense $ 9,649 $ 8,520 $ 39,846 |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Geographic Areas Long Lived Assets [Abstract] | |
Schedule of Long-Lived Assets by Location | The following table presents long-lived assets by location: March 31, December 31, 2019 2018 Unaudited Audited United States $ 7,973 $ 8,289 Switzerland 2,939 2,513 Israel 2,428 2,236 Germany 958 1,054 Others 1,389 1,274 Total $ 15,687 $ 15,366 |
Schedule of Revenues by Geographic Region | The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited United States $ 46,604 $ 37,802 $ 168,414 EMEA (*) 22,520 13,874 72,485 Japan 3,370 449 6,351 Greater China (1) 815 - 819 Total $ 73,309 $ 52,125 $ 248,069 (*) including Germany $ 21,287 $ 13,358 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (“Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K. |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 9,104 | $ 9,197 |
Money market funds | 142,963 | 131,425 |
Total cash and cash equivalents | $ 152,067 | $ 140,622 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments - Summary of Amortized Cost And Recorded Basis of T-bills in Short Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Short-term investments | $ 104,535 | $ 105,256 |
Cash, Cash Equivalents and Sh_5
Cash, Cash Equivalents and Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Estimated fair value of short-term investments | $ 104,547 | $ 105,266 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,526 | $ 870 |
Work in progress | 8,176 | 8,667 |
Finished products | 14,436 | 13,018 |
Total | $ 24,138 | $ 22,555 |
Commitments, Rights of Use and
Commitments, Rights of Use and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Operating lease expiration description | The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029. | |
Operating lease, extistence of option to extend | true | |
Increase in right-of-use assets obtained in exchange for lease obligations | $ 15,733 | |
Lease and rental payments | 1,740 | |
Deferred rent | 863 | |
Pledged bank deposits | 1,134 | $ 1,143 |
Operating lease and other contractual commitments | $ 1,294 | $ 1,299 |
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 2022. | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Operating lease agreements, expiration year | 2029 | |
Maximum | Motor Vehicles | ||
Loss Contingencies [Line Items] | ||
Operating lease agreements, expiration year | 2022 |
Commitments, Rights of Use an_2
Commitments, Rights of Use and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Future minimum lease payments: | ||
2019 (excluding the three months ended March 31, 2019) | $ 3,216 | |
2020 | 3,766 | |
2021 | 3,475 | |
2022 | 2,503 | |
2023 | 1,655 | |
Thereafter | 3,258 | |
Total future minimum lease payments | 17,873 | |
Less imputed interest | (3,090) | |
Net present value of future minimum lease payments | 14,783 | |
Short-term lease liabilities | 3,768 | |
Long-term lease liabilities | 11,015 | $ 0 |
Net present value of future minimum lease payments | $ 14,783 | |
Weighted average of remaining operating lease term | 6 years 4 months 17 days | |
Weighted average of operating lease discount rate | 7.46% |
Share Capital - Additional Info
Share Capital - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Share Capital [Line Items] | |
Options exercised | 2,047,421 |
Ordinary shares issued upon option exercise | 2,047,421 |
ESPP | |
Share Capital [Line Items] | |
Ordinary shares available for grants | 3,122,410 |
Shares issued under plan | 347,193 |
2015 Plan | |
Share Capital [Line Items] | |
Ordinary shares available for grants | 12,649,222 |
2015 Plan | Option | |
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 |
Share Capital - Schedule of Sto
Share Capital - Schedule of Stock Option Plan (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of options | |
Number of options, Outstanding at beginning of year | shares | 14,438,215 |
Number of options, Granted | shares | 751,471 |
Number of options, Exercised | shares | (2,047,421) |
Number of options, Forfeited and cancelled | shares | (40,258) |
Number of options, Outstanding at ending of year | shares | 13,102,007 |
Number of options, Exercisable options | shares | 5,852,344 |
Weighted average exercise price | |
Weighted average exercise price, Outstanding at beginning of year | $ / shares | $ 13.56 |
Weighted average exercise price, Granted | $ / shares | 47.04 |
Weighted average exercise price, Exercised | $ / shares | 8.38 |
Weighted average exercise price, Forfeited and cancelled | $ / shares | 14.47 |
Weighted average exercise price, Outstanding at end of year | $ / shares | 16.29 |
Weighted average exercise price, Exercisable options | $ / shares | $ 12.79 |
Share Capital - Schedule of RSU
Share Capital - Schedule of RSU's (Details) - RSUs | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of RSUs | |
Number of RSUs, unvested at beginning of year | shares | 1,613,197 |
Number of RSUs, granted | shares | 486,506 |
Number of RSUs, vested | shares | (391,191) |
Number of RSUs, forfeited and cancelled | shares | (3,837) |
Number of RSUs, unvested at ending of year | shares | 1,704,675 |
Weighted average grant date fair value price | |
Weighted average grant date fair value price, unvested at beginning of year | $ / shares | $ 14.04 |
Weighted average grant date fair value price, granted | $ / shares | 47.04 |
Weighted average grant date fair value price, vested | $ / shares | 12.09 |
Weighted average grant date fair value price, forfeited and cancelled | $ / shares | 21.15 |
Weighted average grant date fair value price, unvested at ending of year | $ / shares | $ 23.89 |
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) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Stock Option Plans | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 years 2 months 23 days | 6 years 3 months | |
Expected volatility | 55.00% | 55.00% | |
Expected volatility, minimum | 52.00% | ||
Expected volatility, maximum | 55.00% | ||
Risk-free interest rate | 2.40% | 2.77% | |
Risk-free interest rate, minimum | 2.70% | ||
Risk-free interest rate, maximum | 2.99% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option Plans | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 5 years 6 months | ||
Stock Option Plans | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 years 3 months | ||
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 6 months |
Expected volatility | 62.00% | 53.00% | |
Expected volatility, minimum | 45.00% | ||
Expected volatility, maximum | 53.00% | ||
Risk-free interest rate | 2.51% | 1.61% | |
Risk-free interest rate, minimum | 1.61% | ||
Risk-free interest rate, maximum | 2.14% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Share Capital - Schedule of Non
Share Capital - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 9,649 | $ 8,520 | $ 39,846 |
Cost of Revenues | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 426 | 164 | 1,261 |
Research, Development and Clinical Trials | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,188 | 906 | 4,709 |
Sales and Marketing | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,962 | 1,436 | 7,393 |
General and Administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 6,073 | $ 6,014 | $ 26,483 |
Supplemental Information - Sche
Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 15,687 | $ 15,366 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 7,973 | 8,289 |
Switzerland | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 2,939 | 2,513 |
Israel | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 2,428 | 2,236 |
Germany | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 958 | 1,054 |
Others | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 1,389 | $ 1,274 |
Supplemental Information - Sc_2
Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | $ 73,309 | $ 52,125 | $ 248,069 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | 46,604 | 37,802 | 168,414 |
EMEA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | 22,520 | 13,874 | 72,485 |
Japan | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | 3,370 | $ 449 | 6,351 |
Greater China | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | $ 815 | $ 819 |
Supplemental Information - Sc_3
Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | $ 73,309 | $ 52,125 | $ 248,069 |
Germany | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net revenues | $ 21,287 | $ 13,358 | $ 67,849 |