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(“The Company”) was incorporated in the State of Delaware on November 15, 2006, and previously was incorporated in the State of Washington. In October 2004, the Company formed its wholly-owned subsidiary, Brainstorm Cell Therapeutics Ltd. (“BCT”) in Israel, which currently conducts all of the research and development activities of the Company. On February 19, 2013, BCT formed its wholly-owned subsidiary, Brainstorm Cell Therapeutics UK Ltd. in the United Kingdom. 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The process is currently autologous, or self-transplanted.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.7pt"></td> <td style="WIDTH: 28.35pt"> <div>C.</div> </td> <td style="TEXT-ALIGN: justify"> <div><font style="FONT-WEIGHT: normal">NurOwn is in clinical development for the treatment of ALS. The Company has completed two single dose clinical trials of NurOwn in Israel, a Phase 1/2 trial with 12 patients and a Phase 2a trial with additional 12 patients. In July 2016 the Company announced the results of its Phase 2 trial which was conducted in three major medical centers in the US. This single dose trial included 48 patients randomized in a 3:1 ratio to receive NurOwn or placebo. In 2017 the Company commenced Phase 3 trial of NurOwn® for the treatment of ALS. Enrollment in this randomized, double-blind, placebo-controlled, multi-dose clinical trial of NurOwn® for ALS is now ongoing.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="left"><b> </b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="left"><b>GOING CONCERN:</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="left"><font style="FONT-WEIGHT: normal"> </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">To date the Company has not generated revenues from its activities and has incurred substantial operating losses. Management expects the Company to continue to generate substantial operating losses and to continue to fund its operations primarily through utilization of its current financial resources and through additional raises of capital.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 58.5pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Such conditions raise substantial doubts about the Company's ability to continue as a going concern. Management’s plan includes raising funds from outside potential investors. 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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0.5in 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0in"></td> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 4 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>SHORT TERM INVESTMENTS</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Short term investments on June 30, 2018 and December 31, 2017 include bank deposits bearing annual interest rates varying from 0.05% to 3%, with maturities of up to 12 months as of June 30, 2018 and December 31, 2017.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 5 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>PREPAID EXPENSES</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In November 2017 the Company has contracted with City of Hope's Center for Biomedicine and Genetics ("COH") to produce clinical supplies of NurOwn® adult stem cells for the Company’s ongoing Phase 3 clinical study. The Company has paid COH $2,665 as advance payment which was recorded as prepaid expense and is amortized over the term of the agreement. As of June 30, 2018, $1,103 and $827 were recorded as current and long-term prepaid expenses, respectively, compared to $1,103 and $1,378 that were recorded as current and long-term prepaid expense, respectively, as of December 31, 2017.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0in"></td> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 7 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>DEFERRED GRANT INCOME</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In July 2017 the Company received an award in the amount of $15,912 from CIRM to aid in funding the Company’s Phase 3 study of NurOwn®, for the treatment of ALS. An aggregate amount of $9,050 and $7,050 related to the project was received through June 30, 2018 and December 31, 2017, respectively. The award does not bear a royalty payment commitment nor is the award otherwise refundable. $2,740 and $4,425 was recorded as participation by CIRM in research and development expenses during the 6 month ended in June 30, 2018 and during the year ended December 31, 2017, respectively.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 8 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>STOCK CAPITAL</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The rights of Common Stock are as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 84.45pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Holders of Common Stock have the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company and the right to receive dividends, if declared.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The Common Stock is publicly traded on the NASDAQ Capital Market under the symbol BCLI.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Private placements and public offerings:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On June 6, 2018, the Company entered into a Warrant Exercise Agreement (the “Warrant Exercise Agreement”) with certain holders (the “Holders”) of warrants (the “2015 Warrants”) to purchase Company Common Stock, which 2015 Warrants were originally issued in the Company’s January 8, 2015 private placement. Pursuant to the Warrant Exercise Agreement, the Holders exercised their 2015 Warrants for a total of 2,458,201 shares of Common Stock (the “Exercised Shares”) at an amended exercise price of $5 per share. The warrant exercises generated gross cash proceeds to the Company of $12,291 ($11,994 net of issuance expenses). In addition, the Company issued new warrants to the Holders to purchase an aggregate 2,458,201 unregistered shares of Common Stock, at an exercise price of $9, with an expiration date of December 31, 2020 (the “New Warrants”). Certain Holders of New Warrants also entered into a Share Cap Agreement with the Company, whereby the Holders agreed to a 6-month delay (from the date of issuance) in exercisability of any shares at or in excess of 20% limitation on the size of the entire transaction, pursuant to Nasdaq Listing Rules.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Warrant Exercise Agreement also requires that to the extent that a Holder’s exercise of 2015 Warrants would result in such Holder exceeding the Beneficial Ownership Limitation (as defined in the 2015 Warrants), such excess warrant shares shall be held for the benefit of such Warrant Holder until such time as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Holders agreed that, subject to limited exceptions, for the 90 days following the date of the Warrant Exercise Agreement (the “Restricted Period”), neither the Company nor any Subsidiary will issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock, without the prior written consent of all of the Holders of the warrant shares. The Company also agreed that during the time the New Warrants are unexercised, the Company will not enter into any agreements with any holder of 2015 Warrants with more favorable terms, without the consent of the Holders of a majority of the warrant shares then exercisable under all outstanding Warrant Exercise Agreements.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The New Warrants have not been registered under the Securities Act of 1933, as amended (the Securities Act), or state securities laws. The Exercised Shares have been registered for resale on the Company’s registration statement on Form S-3 (File No. 333-201704). The issuance of the Exercised Shares and New Warrants was exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Company and the Holders also entered into Leak-Out Agreements (the “Leak-Out Agreement”) pursuant to which neither Holders nor certain of their affiliates would collectively sell, dispose of or otherwise transfer, directly or indirectly, on any day on which the Nasdaq Capital Market is open for trading during the Restricted Period (any such date, a “Date of Determination”), shares of the Company’s Common Stock in an amount more than an aggregate 30% of the trading volume of Common Stock as reported by Bloomberg, LP for the applicable Date of Determination.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">As 899,999 of 2,458,201 shares to be issued pursuant to exercise of the 2015 Warrants have not been issued as of June 30 2018, the relating proceeds were recorded as receipts on account of shares.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Since its inception the Company has raised approximately $59M, net in cash in consideration for issuances of Common Stock and warrants in private placements and public offerings as well as proceeds from warrants exercises.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 28.35pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Stock Plans:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">As of June 30, 2018, the Company had outstanding awards for stock options under four stockholder approved plans: (i) the 2004 Global Stock Option Plan and the Israeli Appendix thereto (the “2004 Global Plan”) (ii) the 2005 U.S. Stock Option and Incentive Plan (the “2005 U.S. Plan,” and together with the 2004 Global Plan, the “Prior Plans”); (iii) the 2014 Global Share Option Plan and the Israeli Appendix thereto (which applies solely to participants who are residents of Israel) (the “2014 Global Plan”); and (iv) the 2014 Stock Incentive Plan (the “2014 U.S. Plan” and together with the 2014 Global Plan, the “2014 Plans”).</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The 2004 Global Plan and 2005 U.S. Plan expired on November 25, 2014 and March 28, 2015, respectively. Grants that were made under the Prior Plans remain outstanding pursuant to their terms. The 2014 Plans were approved by the stockholders on August 14, 2014 (at which time the Company ceased to issue awards under each of the 2005 U.S. Plan and 2004 Global Plan) and amended on June 21, 2016. Unless otherwise stated, option grants prior to August 14, 2014 were made pursuant to the Company’s Prior Plans, and grants issued on or after August 14, 2014 were made pursuant to the Company’s 2014 Plans, and expire on the tenth anniversary of the grant date. The 2014 Plans have a shared pool of 2,200,000 shares of Common Stock available for issuance.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">As of June 30, 2018, 957,709 shares were available for future issuances under the 2014 Plans. The exercise price of the options granted under the 2014 Plans may not be less than the nominal value of the shares into which such options are exercised. Any options under the 2014 Plans that are canceled or forfeited before expiration become available for future grants. The Governance, Nominating and Compensation Committee (the “GNC Committee”) of the Board of Directors of the Company administers the Company’s stock incentive compensation and equity-based plans.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 28.35pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 28.35pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Share-based compensation to employees and to directors:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 56.7pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><i> </i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 56.7pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><i>Employees:</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Pursuant to a September 28, 2015 employment agreement, as amended, Chaim Lebovits, the Company’s Chief Executive Officer and President (i) was granted a stock option under the 2014 Global Plan on September 28, 2015 for the purchase of up to 369,619 shares of the Company’s Common Stock at a per share exercise price of $2.45, which grant is fully vested and exercisable and shall be exercisable for a period of two years after termination of employment; (ii) received on July 26, 2017, and is entitled to receive on each anniversary thereafter (provided he remains Chief Executive Officer), a grant of restricted stock under the 2014 Global Plan (or any successor or other equity plan then maintained by the Company) comprised of a number of shares of Common Stock with a fair market value (determined based on the price of the Common Stock at the end of normal trading hours on the business day immediately preceding the effective date according to Nasdaq) equal to 30% of Mr. Lebovits’ Base Salary (31,185 shares on July 26, 2017). Each grant shall vest as to twenty-five percent (25%) of the award on each of the first, second, third and fourth anniversary of the date of grant, provided Mr. Lebovits remains continuously employed by the Company from the date of grant through each applicable vesting date. Each grant shall be subject to accelerated vesting upon a Change of Control (as defined in the Lebovits employment agreement) of the Company. In the event of Mr. Lebovits’ termination of employment, any portion of a grant that is not yet vested (after taking into account any accelerated vesting) shall automatically be immediately forfeited to the Company, without the payment of any consideration to Mr. Lebovits; and (iii) was granted on July 26, 2017 a fully vested and exercisable option (the “Option”) under the 2014 Global Plan to purchase up to 41,580 shares of Common Stock, which shall remain exercisable until the 2nd anniversary of the date of grant, regardless of whether Mr. Lebovits remains employed by the Company, with an exercise price per share of $4.81.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Lebovits employment agreement contains termination provisions, pursuant to which if the Company terminates the employment agreement or Mr. Lebovits’ employment without Cause (as defined in the agreement) or if Mr. Lebovits terminates the employment agreement or his employment thereunder with Good Reason (as defined in the agreement), the Company shall immediately vest such number of equity or equity based awards that would have vested during the six (6) months following the date of termination of employment, conditional upon Mr. Lebovits executing a waiver and release in favor of the Company in a form reasonably acceptable to the Company.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Pursuant to his February 28, 2017 employment agreement, Dr. Ralph Kern, Chief Operating Officer and Chief Medical Officer of the Company, received on March 6, 2017, and is entitled to receive on each anniversary thereafter (provided he remains employed by the Company), a grant of restricted stock under the 2014 U.S. Plan (or any successor or other equity plan then maintained by the Company) comprised of a number of shares of Common Stock with a fair market value (determined based on the price of the Common Stock at the end of normal trading hours on the business day immediately preceding March 6, 2017 according to Nasdaq) equal to 30% of Dr. Kern’s Base Salary (35,885 shares on each of March 6, 2017 and March 6, 2018). Each equity grant shall vest as to twenty-five percent (25%) of the award on each of the first, second, third and fourth anniversary of the date of grant, provided Dr. Kern remains continuously employed by the Company from the date of grant through each applicable vesting date. Each equity grant shall be subject to accelerated vesting upon a Change of Control (as defined in the agreement) of the Company.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In the event of Dr. Kern’s termination of employment, any portion of an equity grant that is not yet vested (after taking into account any accelerated vesting) shall automatically be immediately forfeited to the Company, without the payment of any consideration to Dr. Kern.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Pursuant to the agreement, on March 6, 2017, Dr. Kern also received an option under the 2014 U.S. Plan to purchase up to 47,847 shares of Common Stock with an exercise price per share of $4.18. The option was fully vested and exercisable and shall remain exercisable until the 2nd anniversary of the date of grant, regardless of whether Dr. Kern remains employed by the Company. Uri Yablonka, the Company’s Executive Vice President, Chief Business Officer and director was granted a stock option on June 6, 2014 under the Company’s Amended and Restated 2004 Global Share Option Plan (the “Global Plan”) for the purchase of 33,333 shares of the Company’s Common Stock, which was fully vested and exercisable upon grant. The exercise price for the grant is $2.70 per share. In addition, the Company agreed to grant Mr. Yablonka a stock option under the Global Plan (or the applicable successor option plan) for the purchase of up to 13,333 shares of Common Stock (subject to appropriate adjustment in the case of stock splits, reverse stock splits and the like) of the Company on the first business day after each annual meeting of stockholders (or special meeting in lieu thereof) of the Company beginning with the 2014 annual meeting, and provided that Mr. Yablonka remains an employee of the Company on each such date. The exercise price per share of the Common Stock subject to each additional option shall be equal to $0.75 (subject to appropriate adjustment in the case of stock splits, reverse stock splits and the like, or changes to the Israeli Annual Option Award under the Company’s Director Compensation Plan as amended from time to time). Each additional option vests and becomes exercisable on each monthly anniversary date as to 1/12th the number of shares subject to the option, over a period of twelve months from the date of grant, such that each additional option will be fully vested and exercisable on the first anniversary of the date of grant, provided that Mr. Yablonka remains an employee of the Company on each such vesting date. The Company also granted Mr. Yablonka 5,543 shares of restricted Common Stock on July 13, 2017</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On November 20, 2017, the Company granted to Eyal Rubin, the Company’s Chief Financial Officer, 25,000 shares of restricted Common Stock under 2014 Global Plan, which shall vest as to 100% of the award on April 1, 2018, provided Mr. Rubin remains continuously employed by BCT from the date of grant through the vesting date. In the event of Mr. Rubin’s termination of employment prior to April 1, 2018, the restricted stock grant shall automatically be immediately forfeited in its entirety to the Company, without the payment of any consideration to Mr. Rubin. On November 20, 2017 the Company also granted to Mr. Rubin an option to purchase up to 93,686 shares of Common Stock under the 2014 Global Plan, at an exercise price per share equal to $4.30 per share. The Option shall vest and become exercisable as follows: 25% of the shares underlying the Option shall vest and become exercisable on each of the first, second, third and fourth anniversary of the date of grant, until fully vested and exercisable on the fourth anniversary of the date of grant, provided Mr. Rubin remains continuously employed by BCT from the date of grant through each applicable vesting date. The Option shall have a ten (10) year term and shall be subject to accelerated vesting upon a Change of Control of the Company or Material Secondary Public Offering of the Company (each as defined in Mr. Rubin’s employment agreement).</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 56.7pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><i>Directors:</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">From 2005 through 2015, the Company granted its directors options to purchase an aggregate of 402,778 shares of Common Stock at an average exercise price of $1.34 per share.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Company’s Second Amended and Restated Director Compensation Plan was approved in July 9, 2014 and amended on April 29, 2015, February 26, 2017 and July 13, 2017 (as amended, the “Director Compensation Plan”). The Director Compensation Plan governs Company compensation of eligible non-employee director of the Company, except that certain non-employee directors have individualized compensation and are not entitled receive annual director awards under the Director Compensation Plan, but are entitled to committee compensation under the Director Compensation Plan in the event that they qualify for and serve as a member of any committee of the Board. The Director Compensation Plan also determines the annual awards to be granted to qualified directors for their services in future periods, which annual awards have had the same terms since 2014, as further detailed in the Director Compensation Plan. During the 6 months ended June 30, 2018, the following grants were made under the 2014 Plans to eligible directors:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 85.05pt"></td> <td style="WIDTH: 18pt"> <div>-</div> </td> <td style="TEXT-ALIGN: justify"> <div>On February 1, 2018 Dr. Anthony J. Polverino received 3,623 shares of restricted stock for his service as a director.</div> </td> </tr> </table> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 85.05pt"></td> <td style="WIDTH: 18pt"> <div>-</div> </td> <td style="TEXT-ALIGN: justify"> <div>On February 26, 2018 Arturo Araya received 4,152 shares of restricted stock for his service as a director.</div> </td> </tr> </table> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 85.05pt"></td> <td style="WIDTH: 18pt"> <div>-</div> </td> <td style="TEXT-ALIGN: justify"> <div>On March 26, 2018, Arturo Araya received additional 1,249 shares of restricted stock for his service as a member of the GNC Committee.</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>A summary of the Company's option activity related to options to employees and directors, and related information is as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 85.05pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="10"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; PADDING-BOTTOM: 1pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in"> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>For the six months ended</b></div> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>June 30, 2018</b></div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Amount of</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> options</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> Weighted</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> average</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> exercise</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> price</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> Aggregate intrinsic</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> value</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>$</b></div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>$</b></div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 61%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Outstanding at beginning of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>940,954</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>2.4681</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Granted</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Exercised</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>(33,332</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>)</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>0.7500</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Cancelled</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Outstanding at end of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>907,622</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>2.5312</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>1,242,396</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Vested and expected-to-vest at end of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>797,824</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>2.3594</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>1,229,120</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> </table> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the fair market value of the Company’s shares on June 30, 2018, multiplied by the number of in-the-money options on those dates) that would have been received by the option holders had all option holders exercised their options on those dates.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 170.1pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Compensation expense recorded by the Company in respect of its stock-based employees and directors compensation awards in accordance with ASC 718-10 for the three months ended June 30, 2018 and 2017 amounted to $136 and $57, respectively.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 28.35pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Shares and warrants to investors and service providers:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 113.4pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The Company accounts for shares and warrant grants issued to non-employees using the guidance of ASC 505-50, "Equity-Based Payments to Non-Employees", whereby the fair value of such warrant grants is determined using a Black-Scholes options pricing model at the earlier of the date at which the non-employee's performance is completed or a performance commitment is reached.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On August 17, 2017 the Company issued to Anthony Fiorino, the former CEO of the Company, for consulting services rendered, a grant of 4,327 shares of restricted stock under the 2014 U.S. Plan, which vests in eight equal quarterly installments (starting November 17, 2017) until fully vested on the second anniversary of the date of grant.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On January 2, 2018, the Company granted to its legal advisor 11,250 shares of Common Stock for 2017 legal services. The related compensation expense was recorded as general and administrative expense in 2017.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 28.35pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Total Stock-Based Compensation Expense</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 113.4pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font>The total stock-based compensation expense, related to shares, options and warrants granted to employees, directors and service providers was comprised, at each period, as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 113.4pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 85.05pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="6"> <div>Six months ended<br/> June 30,</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div>2 0 1 8</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div>2 0 1 7</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px" colspan="6"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 74%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Research and development</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>48</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>75</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>General and administrative</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>315</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>108</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Total stock-based compensation expense</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>363</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>183</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> </table> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0in"></td> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 9 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>SUBSEQUENT EVENTS</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On July 3, 2018, the Israel Innovation Authority (“IIA”) payed the Company the final installment of approximately $800 under the 2017 IIA grant.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Total cash on hand, Cash equivalents, Short Term Deposits and cash commitment to be received from the IIA as of June 30, 2018 totaled approximately $18,200.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In accordance with ASC 855 “Subsequent Events” the Company evaluated subsequent events through the date the condensed consolidated financial statements were issued. The Company concluded that no other subsequent events have occurred that would require recognition or disclosure in the condensed consolidated financial statements.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0in"></td> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div>NOTE 6 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>ACCRUED EXPENSES</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">On July 17, 2018, the Governance, Nominating and Compensation Committee of the Board of Directors of the Company approved a $500,000 cash bonus payment to Chaim Lebovits, the Company’s President and Chief Executive Officer, in recognition of his contributions to the Company during the second quarter of 2018. As of June 30, 2018, the Company recorded the bonus amount as accrued expenses.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"> <tr> <td style="WIDTH: 28.35pt"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">A.</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">Unaudited Interim Financial Statements</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">Operating results for the three months ended June 30, 2018, are not necessarily indicative of the results that may be expected for the year ended December 31, 2018.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"> <tr> <td style="WIDTH: 28.35pt"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">B.</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"> Significant Accounting Policies</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"> <tr> <td style="TEXT-ALIGN: left; WIDTH: 28.35pt"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">C.</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">Recent Accounting Standards</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for us beginning in the first quarter of 2018; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">In February 2016, the FASB issued ASU 2016-02 “Leases” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For operating leases, the ASU requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, on its balance sheet. The ASU retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 0.9in; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The ASU is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company continues to evaluate the effect of the adoption of this ASU and expects the adoption will result in an increase in the assets and liabilities on the consolidated balance sheets for operating leases and will likely have an insignificant impact on the consolidated statements of earnings.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In June 2016, the FASB issued a new standard requiring measurement and recognition of expected credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. This standard is effective for us in the first quarter of 2020; early adoption is permitted beginning in the first quarter of 2019. It is required to be applied on a modified-retrospective approach with certain elements being adopted prospectively. The Company does not expect that the adoption of this standard will have a significant impact on the financial position or results of operations.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In May 2017, the FASB issued ASU 2017-09 “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies when a change to terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the vesting condition, fair value or the award classification is not the same both before and after a change to the terms and conditions of the award. The new guidance is already effective since January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"> <tr> <td style="WIDTH: 28.35pt"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">D.</div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">Use of estimates</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</font></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;BACKGROUND-COLOR: transparent; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">A summary of the Company's option activity related to options to employees and directors, and related information is as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 85.05pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="10"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; PADDING-BOTTOM: 1pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in"> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>For the six months ended</b></div> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>June 30, 2018</b></div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Amount of</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> options</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> Weighted</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> average</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> exercise</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> price</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> Aggregate intrinsic</div> <div style="CLEAR:both;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> value</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>$</b></div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div style="CLEAR:both;BORDER-BOTTOM: black 0.5pt solid; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="center"><b>$</b></div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 61%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Outstanding at beginning of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>940,954</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>2.4681</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Granted</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Exercised</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>(33,332</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>)</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>0.7500</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Cancelled</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Outstanding at end of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>907,622</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>2.5312</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>1,242,396</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Vested and expected-to-vest at end of period</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>797,824</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>2.3594</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>1,229,120</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> </table> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 113.4pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The total stock-based compensation expense, related to shares, options and warrants granted to employees, directors and service providers was comprised, at each period, as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 113.4pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 85.05pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="6"> <div>Six months ended<br/> June 30,</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div>2 0 1 8</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal" colspan="2"> <div>2 0 1 7</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: bold 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: center; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px" colspan="6"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 74%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Research and development</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>48</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> <td style="TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 10%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>75</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; WIDTH: 1%; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>General and administrative</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>315</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>108</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 10pt; PADDING-TOP: 0px"> <div>Total stock-based compensation expense</div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>363</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div>183</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 0px; TEXT-INDENT: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT: 10pt Times New Roman, Times, Serif; PADDING-TOP: 0px; font-size-adjust: none; font-stretch: normal"> <div> </div> </td> </tr> </table> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
4391000
0
0
0
0
0
0
0
0
0
0
500000000
899999
0
0
4391000
0
4391000
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 56.7pt"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font>NOTE 2 -</div> </td> <td style="TEXT-ALIGN: justify"> <div>BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.7pt"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="WIDTH: 28.35pt"> <div>A.</div> </td> <td style="TEXT-ALIGN: justify"> <div>Unaudited Interim Financial Statements</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">Operating results for the three months ended June 30, 2018, are not necessarily indicative of the results that may be expected for the year ended December 31, 2018.</font></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.7pt"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="WIDTH: 28.35pt"> <div>B.</div> </td> <td style="TEXT-ALIGN: justify"> <div>Significant Accounting Policies</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements.</font></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <table style="MARGIN-TOP: 0pt; WIDTH: 100%; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 56.7pt"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 28.35pt"> <div>C.</div> </td> <td style="TEXT-ALIGN: justify"> <div>Recent Accounting Standards</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for us beginning in the first quarter of 2018; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">In February 2016, the FASB issued ASU 2016-02 “Leases” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For operating leases, the ASU requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, on its balance sheet. The ASU retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 0.9in; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The ASU is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company continues to evaluate the effect of the adoption of this ASU and expects the adoption will result in an increase in the assets and liabilities on the consolidated balance sheets for operating leases and will likely have an insignificant impact on the consolidated statements of earnings.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt">  </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In June 2016, the FASB issued a new standard requiring measurement and recognition of expected credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. This standard is effective for us in the first quarter of 2020; early adoption is permitted beginning in the first quarter of 2019. It is required to be applied on a modified-retrospective approach with certain elements being adopted prospectively. The Company does not expect that the adoption of this standard will have a significant impact on the financial position or results of operations.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">In May 2017, the FASB issued ASU 2017-09 “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies when a change to terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the vesting condition, fair value or the award classification is not the same both before and after a change to the terms and conditions of the award. The new guidance is already effective since January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements.</div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.7pt"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="WIDTH: 28.35pt"> <div>D.</div> </td> <td style="TEXT-ALIGN: justify"> <div>Use of estimates</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -28.35pt; MARGIN: 0pt 0px 0pt 85.05pt; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 85.05pt; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="FONT-WEIGHT: normal">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
11994000
11250
Represents an amount less than $1.