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<div>
<table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr style="vertical-align: top;">
<td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE 1:-</font></td>
<td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">GENERAL</font></td>
</tr>
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<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
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<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Kornit Digital Ltd. (the “Company”) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The Company’s and its subsidiaries’ solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value added services.</font></td>
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<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company has established wholly-owned subsidiaries in Israel, the United States, Germany and Hong Kong. The Company’s subsidiaries are engaged primarily in sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing.</font></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
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<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On January 31, 2017 the Company closed a follow on and secondary offering where by 8,625,000 ordinary shares were sold in the transaction to the public, 2,300,000 were sold by the Company and 6,325,000 were sold by the Selling Shareholders (inclusive of 1,125,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). The gross proceeds received by the Company from the offering were $36,058, net of underwriting discounts and commissions, offering expenses to be paid by the Company were $981.</font></td>
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<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans:
2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
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<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td>
<td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On May 15, 2017 the Company made an underwritten secondary offering of 4,250,000 ordinary shares by the Company’s largest shareholder. The Company did not receive any of the proceeds from the sale of the ordinary shares.</font></td>
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<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p>
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<td style="width: 0.3in;"><font style="font-size: 10pt;">e.</font></td>
<td style="text-align: justify;">During the six months ended June 30, 2017 and 2016, 29% and 48% of the Company's revenues were driven from two and three major customers, respectively.</td>
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<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE 2:-</font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SIGNIFICANT ACCOUNTING POLICIES</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Unaudited interim consolidated financial statements:</font></td></tr></table><p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s consolidated financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2016, included in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2017. Results for the six months ended June 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017.</font></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Use of
estimates:</font></td></tr></table><p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impact of recently issued accounting standard:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 77.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the “Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. This new standard should be applied on a prospective basis and the nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements and the timing of adoption.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of
a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect of this standard on future consolidated financial statements</font></td></tr></table><p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> <font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09—Compensation—Stock Compensation—Improvements to Employee Share-Based Payment Accounting. The new guidance changes the accounting for certain aspects of stock-based payments to employees and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows us to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flows statement, and provides an accounting policy election to account for forfeitures as they occur.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.35in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We elected to adopt the new guidance on January 1, 2017. Under the new guidance, we have elected to change our policy and have started to recognize forfeitures of awards as they occur. The change in forfeiture policy use a modified retrospective transition method. We recorded a cumulative-effect adjustment to decrease retained earnings by $69 upon transition on January 1, 2017.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leases - In February 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-02, “Leases”. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its consolidated financial statements.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 99.25pt; text-align: justify; color: #000000; text-transform: none; text-indent: -21.25pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top;
font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial Instruments - In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019. The Company does not believe the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements.</font></td></tr></table><p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> <font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenue Recognition - In May 2014, the FASB issued an ASU that provides a comprehensive model for recognizing revenue with customers. This update clarifies and replaces all existing revenue recognition guidance within U.S. GAAP and may be adopted retrospectively for all periods presented or adopted using a modified retrospective approach. This update is effective for annual and interim periods beginning after December 15, 2016. In July 2015, FASB deferred the effective date by one year to December 15, 2017 (beginning with the Company’s first quarter in 2018) and permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Company will adopt the new standard in the first quarter of 2018 and expects to apply the modified retrospective approach. The Company currently does not believe there will be a material impact to its revenues upon adoption. However, the Company continues to evaluate the impact to its revenues related to the pending adoption of Topic 606 and its preliminary assessments are subject to change.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In June 2016, the FASB issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income.</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 3:-</b></font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>MARKETABLE SECURITIES</b></font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">The following is a summary of marketable securities:</font></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1174.4px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">June 30, 2017</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Amortized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>cost</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><b>u<font style="font-family: 'times new roman', times, serif;">nrealized</font></b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>gain</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>loss</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Fair</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>value</b></font></p></td><td style="text-indent: 0px;
padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures within one year:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="width: 11.19px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 93.59px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2,663</td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 93.59px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2</td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 93.59px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(8</td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="width: 11.19px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 93.59px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2,657</td><td style="width: 11.19px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures after one year through three years:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">49,843</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">68</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(111</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">49,800</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td
style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">Government debentures</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,166</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(13</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,155</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">Total</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,672</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">72</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(132</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,612</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight:
normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">December 31, 2016</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Amortized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>cost</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>gain</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>loss</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Fair</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>value</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures within one year:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color:
#cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">16,526</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(28</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">16,500</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures after one year through three years:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">21,798</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"></td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(79</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">21,724</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td
style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">Total</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,324</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(107</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,224</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All investments with an unrealized loss as of June 30, 2017 are with continuous unrealized losses for less than 12 months.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 4:-</b></font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"><b>FAIR VALUE MEASUREMENTS</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">FASB Accounting Standards Codification (“ASC”) No. 820, “Fair Value Measurements and Disclosures” defines fair value and establishes a framework for measuring fair value. According to ASC No. 820, fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><td style="padding: 0px; width: 0.75in; text-indent: 0px;"> </td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-align: left; text-indent: 0px; vertical-align: top; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level   I:</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 12px; text-align: justify; text-indent: 0px; vertical-align: bottom; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; vertical-align: top; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities;</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><td style="padding: 0px; text-indent: 0px;"> </td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><td style="padding: 0px; text-indent: 0px;"> </td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; vertical-align: top; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level II:</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; vertical-align: bottom; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; vertical-align: top; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><td style="padding: 0px; text-indent: 0px;"> </td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><td style="padding: 0px; text-indent: 0px;"> </td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; vertical-align: top; font-stretch:
normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level III:</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; vertical-align: bottom; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; vertical-align: top; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company measures its marketable securities, foreign currency derivative contracts and the contingent payments obligation in connection with acquisition (the “Contingent Payments”) at fair value. Marketable securities and foreign currency derivative contracts are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Contingent Payments are classified within level III as the valuation inputs are based on significant inputs not observable in the market.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The below table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2017 and December 31, 2016 by level within the fair value hierarchy.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">As of June 30, 2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold;
border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; font-weight: normal;">Assets:</td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-left: 0pt; font-weight: normal;">Marketable securities</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">63,612</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">63,612</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 1.5pt; padding-left: 0pt; font-weight: normal;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 4pt; padding-left: 0pt; font-weight: normal;">Total financial assets</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,700</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,700</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-left: 0pt; font-weight: bold;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;">Liabilities:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right;
border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,151</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,151</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 4pt; padding-left: 0pt; font-weight: normal;">Total liabilities</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"></font> </p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">As of December 31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td>Assets:</td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left;">Marketable securities</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">38,224</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">38,224</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom;
background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt;">Total  financial assets</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td>Liabilities:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt;">Total  liabilities</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width:
4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table set forth the change of fair value measurements that are categorized within Level 3:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;">Total fair value as of January 1, 2017</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">1,070</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt;">Accretion of payments obligation</td><td> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">81</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt; padding-left: 0pt;">Total fair value as of June 30, 2017 (Unaudited)</td><td> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 28.35pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The fair value of the payment obligation related to acquisition was estimated based several factors of which the most significant is the Company’s revenue projections. The Company used a Monte Carlo Simulation of the triangular model with a discount rate of 15%. Payment obligation related to acquisition are revalued to current fair value at each reporting date. Any change in the fair value as a result of time passage is recognized in the financial expenses; any other changes in significant inputs such as the discount rate, the discount period or other factors used in the calculation, is recognized in operation expenses in the consolidated results of operations in the period the estimated fair value changes. Payment obligation related to acquisition will
continue to be accounted for and measured at fair value until the contingencies are settled during fiscal years 2017 and 2018. Accretion of the payment obligation related to acquisition is included in financial expenses, net.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.75in; text-align: justify; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 5:-</b></font></td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>INVENTORIES</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="font-weight: bold;"> </td><td style="text-align: center; font-weight: bold;" colspan="2">June 30,</td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: center; font-weight: bold;" colspan="2">December 31,</td><td style="font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">(Unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center;" colspan="2"> </td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: justify; padding-left: 0pt;">Raw materials and components</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">16,650</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">12,322</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt;">Finished products (*)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,230</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,800</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: justify; padding-left: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify; padding-bottom: 4pt; padding-left: 0pt;"></td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,880</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">24,122</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; width: 56.7pt; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; width: 28.35pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory write-off amounted to $1,333 and $265 for the six months ended June 30, 2017 and 2016, respectively.</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE </b></font><b><font style="font-family: 'times new roman', times, serif;">6:-</font></b></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>DERIVATIVES AND HEDGING ACTIVITIES</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company follows FASB ASC No. 815,” Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company used derivative financial instruments, specifically foreign currency forward and option contracts (“Hedging Contracts”), to manage exposure to foreign currency risks, by hedging a portion of the Company’s forecasted expenses denominated in New Israeli Shekels expected to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in “financial income (expenses), net”.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of June 30, 2017 and December 31, 2016, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $2,192 (unaudited) and $8,636, respectively.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of June 30, 2017, the fair value of the Company’s outstanding derivatives designated as cash flow hedging instruments was $88 (unaudited) which is included within “Other accounts receivable and prepaid expenses” in the balance sheet.</font></p><p style="font:
10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2016, the fair value of the Company’s outstanding derivatives designated as cash flow hedging instruments was $3 which is included within “Other accounts receivable and prepaid expenses” in the balance sheet.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE 7:-</font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">COMMITMENTS AND CONTINGENT LIABILITIES</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Charges:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of June 30, 2017, the Company ha<font style="color: #1f497d;">s</font> two lines of credit with Israeli banks for total borrowings of up to $3 million, all of which was undrawn as of June 30, 2017. These lines of credit are unsecured and available subject to the Company maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries’ receivables. Interest rates across these credit lines varied from 0.2% to 2.3% as of June 30, 2017.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Purchase commitments:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of June 30, 2017, the Company estimates purchase commitments from vendors in the amount of $11,491.</font></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent:
0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Litigation:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Royalty Commitments:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Under the Company’s agreement for purchasing print heads and other products, which was amended and restated in 2015, the Company is obligated to pay royalties at a rate set forth in the agreement up to an agreed maximum amount of the Company’s annual ink revenues.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Royalty expenses for the six months ended June 30, 2017 and 2016 were $312.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif;
vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">e.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Guarantees:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of June 30, 2017, the Company provided two bank guarantees in a total amount of $393 for its rented facilities.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE 8:-</font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">EARNINGS PER SHARE</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table sets forth the computation of basic and diluted net earnings per share:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; font-weight: bold;">Numerator for basic and diluted net earnings per share:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Net loss</td><td style="width: 15px; padding-bottom: 4pt;"> </td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 125px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,522</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td><td style="width: 15px; padding-bottom: 4pt;"> </td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 125px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(353</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td></tr><tr style="vertical-align: bottom;
background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; font-weight: bold;">Weighted average shares outstanding, net of treasury stock:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Denominator for basic and diluted net loss per share</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">33,151,633</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">30,420,165</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Basic and diluted net loss per share</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(0.05</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(0.01</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company in a loss position and all of its securities are antidilutive.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.75in; text-align: left; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 9:-</b></font></td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>SHAREHOLDERS’ EQUITY</b></font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share based compensation</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="width: 0.75in; text-indent: 0px; padding-left: 0px;"></td><td style="width: 0.3in; text-align: left; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The fair value for options granted in the periods presented is estimated at the date of grant using a binomial option-pricing model with the following weighted average assumptions:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 84.45pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 84.45pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Six months ended <br />June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: justify;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;"> </td><td style="text-align: justify;">Suboptimal exercise multiple</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 172px; text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.0-1.5</font></td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 172px; text-align: right;">1.0</td><td style="width:
15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify;">Risk free interest rate</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2.26%-2.32</font></td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.7%-1.83</font></td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: justify;">Volatility</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">52%-53</font></td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">55%-56</font></td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify;">Dividend yield</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">0</td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">0</td><td style="text-align: left;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 84.45pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt 0pt 0pt 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following is a summary of the Company’s stock options activity for the six months ended June 30, 2017:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.5pt; text-align: justify; color: #000000; text-transform: none; text-indent: -27pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: justify;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Number</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>of shares</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>upon exercise</b></font></p></td><td style="padding: 0pt;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Average exercise</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>price</b></font></p></td><td style="padding: 0pt;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted- average remaining contractual term</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(in years)</b></font></p></td><td style="padding:
0pt;"> </td><td style="padding: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Aggregate intrinsic value (1)</td><td style="padding: 0pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: justify;"> </td><td style="padding: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="padding: 0pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;" colspan="2"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;" colspan="2"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: right;" colspan="2"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: right;" colspan="2"> </td><td style="padding: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; width: 1.05in; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Outstanding as of  December 31, 2016</td><td style="padding: 0pt; width: 15px;"> </td><td style="padding: 0pt; width: 15px; text-align: left;"> </td><td style="padding: 0pt; width: 125px; text-align: right;">2,733,166</td><td style="padding: 0pt; width: 15px; text-align: left;"> </td><td style="padding: 0pt; width: 15px;"> </td><td style="padding: 0pt; width: 15px; text-align: left;">$</td><td style="padding: 0pt; width: 125px; text-align: right;">7.01</td><td style="padding: 0pt; width: 15px; text-align: left;"> </td><td style="padding: 0pt; width: 15px;"> </td><td style="padding: 0pt; width: 15px; text-align: left;"> </td><td style="padding: 0pt; width: 125px; text-align: right;">7.78</td><td style="padding: 0pt; width: 15px; text-align: left;"> </td><td style="padding: 0pt; width: 15px;"> </td><td style="padding: 0pt; width: 15px; text-align: left;">$</td><td style="padding: 0pt; width: 125px; text-align: right;">16,054</td><td style="padding: 0pt; width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Granted</td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">35,000</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">19.96</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">9.80</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Exercised</td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">445,165</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">3.13</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;">4.75</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Forfeited</td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">52,253</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.66</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.76</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td
style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Outstanding as of June 30, 2017</td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,270,748</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.01</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.88</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">25,950</td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt; text-align: right;"> </td><td style="padding: 0pt; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Exercisable as of June 30, 2017</td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">872,938</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5.73</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">6.88</td><td style="padding: 0pt; text-align: left;"> </td><td style="padding: 0pt;"> </td><td style="padding: 0pt; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding: 0pt; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,892</td><td style="padding: 0pt; text-align: left;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0pt; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2017 is based on the share price of the Company’s ordinary shares as of June 30, 2017 which was $19.35 per share.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The weighted average fair value of options granted during the six months ended June 30, 2017 was $10.81.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 163.6pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="text-align: justify; vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-indent: 0px;"></td><td style="padding: 0px; width: 0.3in; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the six months ended June 30, 2017, the Company granted 3,300 RSUs. The weighted average fair value and contractual life of the RSUs was $21.15 and 9.86, respectively.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.5pt; text-align: justify; color: #000000; text-transform: none; text-indent: -27pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table shows the total share-based compensation expense included in the interim consolidated statements of operations:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: justify; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: center; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30,</b></font></p></td><td style="padding: 0pt; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: justify; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-align: center; text-indent: 0pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-align: center; text-indent: 0pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: justify; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td><td style="padding: 0pt; text-align: center; text-indent: 0pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding: 0pt; text-indent: 0pt; font-weight: bold;"> </td></tr><tr
style="vertical-align: bottom;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;" colspan="2"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: justify; text-indent: 0pt;" colspan="2"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; width: 1.05in; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Cost of revenues</td><td style="padding: 0pt; width: 15px; text-indent: 0pt;"> </td><td style="padding: 0pt; width: 15px; text-align: left; text-indent: 0pt;">$</td><td style="padding: 0pt; width: 125px; text-align: right; text-indent: 0pt;">287</td><td style="padding: 0pt; width: 15px; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; width: 15px; text-indent: 0pt;"> </td><td style="padding: 0pt; width: 15px; text-align: left; text-indent: 0pt;">$</td><td style="padding: 0pt; width: 125px; text-align: right; text-indent: 0pt;">206</td><td style="padding: 0pt; width: 15px; text-align: left; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Research and development</td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;">297</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;">156</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Selling and marketing</td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;">430</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;">332</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">General and administrative</td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">934</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">768</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: right; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0pt; text-indent: 0pt; background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Total share-based compensation expense</td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0pt; text-align: right; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,948</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding: 0pt; text-indent: 0pt;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0pt; text-align: right; text-indent: 0pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,462</td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On January 10, 2017 the Company had
signed a master purchase agreement with Amazon Inc. for 2,932,176 warrants to purchase ordinary shares of the Company in exercise price of $13.03. The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five years period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 77.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company utilizes a Monte Carlo simulation approach to estimate the fair value of the warrants, which requires inputs such as common ordinary share, the warrant strike price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $2.4 million during the six months ended June 30, 2017.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="padding: 0px; width: 0.75in; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE 10:-</font></td><td style="padding: 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table summarizes the changes in accumulated balances of other comprehensive income (loss):</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0pt; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Unrealized <br />gain (loss) on available-for-sale marketable securities</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Unrealized <br />gain (loss) on cash flow hedges</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0pt; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0pt; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; font-weight: normal;">Six months ended June 30, 2017:</td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0pt; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td><td style="font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;" colspan="2"> </td><td style="font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="padding: 0pt 0pt 1.5pt; text-align: justify; text-indent: 0pt; font-weight: normal;">Beginning balance</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td
style="width: 125px; text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(100</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-weight: normal;">)</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 125px; text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 125px; text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">15</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="width: 15px; text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 125px; text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(82</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-weight: normal;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0pt; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt;"><p style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-weight: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Other comprehensive income before reclassifications</font></p></td><td style="font-weight: normal;"> </td><td style="text-align: left; font-weight: normal;"> </td><td style="text-align: right; font-weight: normal;">69</td><td style="text-align: left; font-weight: normal;"> </td><td style="font-weight: normal;"> </td><td style="text-align: left; font-weight: normal;"> </td><td style="text-align: right; font-weight: normal;">390</td><td style="text-align: left; font-weight: normal;"> </td><td style="font-weight: normal;"> </td><td style="text-align: left; font-weight: normal;"> </td><td style="text-align: right; font-weight: normal;">127</td><td style="text-align: left; font-weight: normal;"> </td><td style="font-weight: normal;"> </td><td style="text-align: left; font-weight: normal;"> </td><td style="text-align: right; font-weight: normal;">586</td><td style="text-align: left; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 1.5pt; text-align: justify; text-indent: 0pt;"><p style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-weight: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Amounts reclassified from accumulated other comprehensive loss</font></p></td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(29</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">)</td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(369</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">)</td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(398</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 1.5pt; text-align: justify; text-indent: 0pt;"><p style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-weight: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Net current period other comprehensive income loss</font></p></td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">40</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">21</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">127</td><td
style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="padding-bottom: 1.5pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">188</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 4pt; text-align: justify; text-indent: 0pt;"><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; text-indent: 0pt; font-stretch: normal;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; text-indent: 0pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Ending Balance</font></p></td><td style="padding-bottom: 4pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(60</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;">)</td><td style="padding-bottom: 4pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">24</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;"> </td><td style="padding-bottom: 4pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">142</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;"> </td><td style="padding-bottom: 4pt; font-weight: normal;"> </td><td style="text-align: left; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">106</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;"></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.75in; text-align: justify; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 11:-</b></font></td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>SELECTED STATEMENTS OF INCOME DATA</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.75in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial income, net:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Financial income:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Interest on bank deposits and other</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">36</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">126</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Foreign currency translation differences</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">1,332</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">192</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Interest on marketable securities</td><td
style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">902</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">512</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,270</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">830</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Financial expenses:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Bank charges</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(148</td><td style="text-align: left;">)</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(136</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Foreign currency translation differences</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(1,752</td><td style="text-align: left;">)</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(377</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Amortization of premium and accretion of discount on marketable securities</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(277</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(221</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,177</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(734</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Total financial income</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">93</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">96</td><td style="text-align: left; padding-bottom: 4pt;"></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">Unaudited interim consolidated financial statements:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s consolidated financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2016, included in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2017. Results for the six months ended June 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">b.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">Use of estimates:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.75in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impact of recently issued accounting standard:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 77.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; padding: 0px; text-align: justify; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the “Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. This new standard should be applied on a prospective basis and the nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements and the timing of adoption.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect of this standard on future consolidated financial statements</font></td></tr></table></div><div><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></div><div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times,
serif; font-size: 10pt;">3.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09—Compensation—Stock Compensation—Improvements to Employee Share-Based Payment Accounting. The new guidance changes the accounting for certain aspects of stock-based payments to employees and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows us to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flows statement, and provides an accounting policy election to account for forfeitures as they occur.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.35in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We elected to adopt the new guidance on January 1, 2017. Under the new guidance, we have elected to change our policy and have started to recognize forfeitures of awards as they occur. The change in forfeiture policy use a modified retrospective transition method. We recorded a cumulative-effect adjustment to decrease retained earnings by $69 upon transition on January 1, 2017.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 36pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leases - In February 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-02, “Leases”. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its consolidated financial statements.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 99.25pt; text-align: justify; color: #000000; text-transform: none; text-indent: -21.25pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial Instruments - In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019. The Company does not believe the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements.</font></td></tr></table><p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> <font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif;
width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenue Recognition - In May 2014, the FASB issued an ASU that provides a comprehensive model for recognizing revenue with customers. This update clarifies and replaces all existing revenue recognition guidance within U.S. GAAP and may be adopted retrospectively for all periods presented or adopted using a modified retrospective approach. This update is effective for annual and interim periods beginning after December 15, 2016. In July 2015, FASB deferred the effective date by one year to December 15, 2017 (beginning with the Company’s first quarter in 2018) and permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Company will adopt the new standard in the first quarter of 2018 and expects to apply the modified retrospective approach. The Company currently does not believe there will be a material impact to its revenues upon adoption. However, the Company continues to evaluate the impact to its revenues related to the pending adoption of Topic 606 and its preliminary assessments are subject to change.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 113.4pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In June 2016, the FASB issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income.</font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">June 30, 2017</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Amortized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>cost</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><b>u<font style="font-family: 'times new roman', times, serif;">nrealized</font></b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>gain</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>loss</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Fair</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>value</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures within one year:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight:
normal;">Corporate debentures</td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2,663</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(8</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2,657</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures after one year through three years:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">49,843</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">68</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(111</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">49,800</td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">Government debentures</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,166</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt;
border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(13</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,155</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">Total</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,672</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">72</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(132</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,612</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;
font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">December 31, 2016</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Amortized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>cost</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>gain</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Gross</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>loss</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>Fair</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif;"><b>value</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures within one year:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">16,526</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">2</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">(28</td><td style="width: 10px; text-align: left;
text-indent: 0px; padding-left: 0px; font-weight: normal;">)</td><td style="width: 10px; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">$</td><td style="width: 82px; text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal;">16,500</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal;">Matures after one year through three years:</td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">Corporate debentures</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">21,798</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"></td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(79</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">21,724</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: normal;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">Total</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black;
border-bottom-width: 4pt; border-bottom-style: double;">38,324</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(107</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;">)</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; font-weight: normal; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,224</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px; font-weight: normal;"></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"> </font></p></div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">As of June 30, 2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; font-weight: normal;">Assets:</td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-left: 0pt; font-weight: normal;">Marketable securities</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">63,612</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">63,612</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 1.5pt; padding-left: 0pt; font-weight: normal;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 4pt; padding-left: 0pt; font-weight: normal;">Total financial assets</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,700</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom:
4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">63,700</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-left: 0pt; font-weight: bold;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;">Liabilities:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,151</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,151</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; text-indent: 0pt; padding-bottom: 4pt; padding-left: 0pt; font-weight: normal;">Total liabilities</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 56.7pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"></font> </p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">As of December 31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"
colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td>Assets:</td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td><td> </td><td colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left;">Marketable securities</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">38,224</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;"> </td><td style="width: 100px; text-align: right;">-</td><td style="width: 12px; text-align: left;"> </td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">38,224</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt;">Total  financial assets</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td>Liabilities:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td
style="text-align: left; padding-bottom: 1.5pt;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt;">Total  liabilities</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table></div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;">Total fair value as of January 1, 2017</td><td style="width: 12px;"> </td><td style="width: 12px; text-align: left;">$</td><td style="width: 100px; text-align: right;">1,070</td><td style="width: 12px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt;">Accretion of payments obligation</td><td> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">81</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left; padding-left: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 4pt; padding-left: 0pt;">Total fair value as of June 30, 2017 (Unaudited)</td><td> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,151</td></tr></table></div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">June 30,</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">December 31,</td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">(Unaudited)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt;"> </td><td style="text-align: center; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;">Raw materials and components</td><td style="width: 10px; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="width: 82.66px; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;">16,650</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="width: 10px; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="width: 10px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="width: 82.66px; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;">12,322</td><td style="width: 10px; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0px 0px 1.5pt; text-align: justify; text-indent: 0px; font-size: 10pt;">Finished products (*)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,230</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-size: 10pt;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size:
10pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,800</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-size: 10pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0px 0px 4pt; text-align: justify; text-indent: 0px; font-size: 10pt;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32,880</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-size: 10pt;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-size: 10pt;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-size: 10pt; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">24,122</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-size: 10pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 56.7pt; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 28.35pt; text-indent: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">(*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Inventory write-off amounted to $1,333 and $265 for the six months ended June 30, 2017 and 2016, respectively.</font></td></tr></table></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; font-weight: bold;">Numerator for basic and diluted net earnings per share:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Net loss</td><td style="width: 15px; padding-bottom: 4pt;"> </td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 125px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,522</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td><td style="width: 15px; padding-bottom: 4pt;"> </td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 125px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(353</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; font-weight: bold;">Weighted average shares outstanding, net of treasury stock:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Denominator for basic and diluted net loss per share</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">33,151,633</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black;
border-bottom-width: 4pt; border-bottom-style: double;">30,420,165</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left;">Basic and diluted net loss per share</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(0.05</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(0.01</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">  </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Six months ended <br />June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: justify;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;"> </td><td style="text-align: justify;">Suboptimal exercise multiple</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 172px; text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.0-1.5</font></td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 172px; text-align: right;">1.0</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify;">Risk free interest rate</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2.26%-2.32</font></td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.7%-1.83</font></td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: justify;">Volatility</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">52%-53</font></td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">55%-56</font></td><td style="text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: justify;">Dividend yield</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">0</td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">0</td><td style="text-align: left;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">  </font></p></div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number<br />of shares<br />upon<br />exercise</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted<br />Average <br />exercise<br />price</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted- <br />average <br />remaining <br />contractual <br />term<br />(in years)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Aggregate <br />intrinsic <br />value (1)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: justify;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;" colspan="2"> </td><td> </td><td> </td><td style="text-align: left;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td><td> </td><td style="text-align: right;" colspan="2"> </td><td> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;"> </td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Outstanding as of  December 31, 2016</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 125px; text-align: right;">2,733,166</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">7.01</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 125px; text-align: right;">7.78</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 125px; text-align: right;">16,054</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left;">Granted</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">35,000</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">19.96</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">9.80</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left;">Exercised</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">445,165</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">3.13</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">4.75</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Forfeited</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">52,253</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.66</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.76</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color:
white;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Outstanding as of June 30, 2017</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,270,748</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.01</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">25,950</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="text-align: left; padding-bottom: 1.5pt;">Exercisable as of June 30, 2017</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">872,938</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5.73</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">6.88</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,892</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -27pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1.05in; text-indent: 0px; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 0.3in; text-indent: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">(1)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: justify; text-indent: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2017 is based on the share price of the Company’s ordinary shares as of June 30, 2017 which was $19.35 per share.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p></div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>June 30,</b></font></p></td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td><td style="text-align: center; text-indent: 0px; padding-left: 0px; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: justify; text-indent: 0px; padding-left: 0px;" colspan="2"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;">Cost of revenues</td><td style="width: 15px; text-indent: 0px; padding-left: 0px;"> </td><td style="width: 15px; text-align: left; text-indent: 0px; padding-left: 0px;">$</td><td style="width: 125px; text-align: right; text-indent: 0px; padding-left: 0px;">287</td><td style="width: 15px; text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="width: 15px; text-indent: 0px; padding-left: 0px;"> </td><td style="width: 15px; text-align: left; text-indent: 0px; padding-left: 0px;">$</td><td style="width: 125px; text-align: right; text-indent: 0px; padding-left: 0px;">206</td><td style="width: 15px; text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;">Research and development</td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;">297</td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;">156</td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;">Selling and marketing</td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;">430</td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;">332</td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;">General and administrative</td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">934</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt;
padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">768</td><td style="text-align: left; text-indent: 0px; padding-bottom: 1.5pt; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: right; text-indent: 0px; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-indent: 0px; padding-left: 0px; background-color: white;"> </td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px;">Total share-based compensation expense</td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,948</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px;"> </td><td style="text-indent: 0px; padding-bottom: 4pt; padding-left: 0px;"> </td><td style="text-align: left; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,462</td><td style="text-align: left; text-indent: 0px; padding-bottom: 4pt; padding-left: 0px;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p></div>
<p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.75in; text-align: justify;"> </p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: justify; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black; padding-left: 0px; text-indent: 0px;" colspan="2">Unrealized <br />gain (loss) on available-for-sale marketable securities</td><td style="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black; padding-left: 0px; text-indent: 0px;" colspan="2">Unrealized <br />gain (loss) on cash flow hedges</td><td style="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black; padding-left: 0px; text-indent: 0px;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black; padding-left: 0px; text-indent: 0px;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: justify; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black; padding-left: 0px; text-indent: 0px;" colspan="14">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: justify; padding-left: 0px; text-indent: 0px;">Six months ended June 30, 2017:</td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: justify; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: bold; text-align: right; padding-left: 0px; text-indent: 0px;" colspan="2"> </td><td style="font-weight: bold; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: justify; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;">Beginning balance</td><td style="width: 15px; font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="width: 125px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(100</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td><td style="width: 15px; font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="width: 125px; border-bottom: 1.5pt solid
black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">3</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="width: 125px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">15</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="width: 15px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="width: 125px; border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(82</td><td style="width: 15px; padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-left: 10pt; text-indent: -10pt;">Other comprehensive income before reclassifications</td><td style="font-weight: normal; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">69</td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">390</td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">127</td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">586</td><td style="font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt;">Amounts reclassified from accumulated other comprehensive loss</td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(29</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(369</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">-</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(398</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt;">Net current period other comprehensive income loss</td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">40</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">21</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right;
padding-left: 0px; text-indent: 0px;">127</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 1.5pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 1.5pt solid black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">188</td><td style="padding-bottom: 1.5pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white; padding-left: 0px; text-indent: 0px;"> </td><td style="text-align: justify; padding-bottom: 4pt; padding-left: 0px; text-indent: 0px; padding-right: 0px;"><p style="font-style: normal; font-variant: normal; font-weight: bold; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: justify; text-indent: 0px;"><font style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;">Ending Balance</font></p></td><td style="font-weight: normal; padding-bottom: 4pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">(60</td><td style="padding-bottom: 4pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">)</td><td style="font-weight: normal; padding-bottom: 4pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">24</td><td style="padding-bottom: 4pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 4pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">142</td><td style="padding-bottom: 4pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td><td style="font-weight: normal; padding-bottom: 4pt; padding-left: 0px; text-indent: 0px;"> </td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;">$</td><td style="border-bottom: 4pt double black; font-weight: normal; text-align: right; padding-left: 0px; text-indent: 0px;">106</td><td style="padding-bottom: 4pt; font-weight: normal; text-align: left; padding-left: 0px; text-indent: 0px;"> </td></tr></table><div> </div>
<div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 888px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Six months ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 2.85pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Unaudited</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Financial income:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.75in; background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Interest on bank deposits and other</td><td style="width: 8px;"> </td><td style="width: 8px; text-align: left;">$</td><td style="width: 70px; text-align: right;">36</td><td style="width: 8px; text-align: left;"> </td><td style="width: 8px;"> </td><td style="width: 8px; text-align: left;">$</td><td style="width: 70px; text-align: right;">126</td><td style="width: 8px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Foreign currency translation differences</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">1,332</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">192</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Interest on marketable securities</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">902</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">512</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,270</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">830</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Financial expenses:</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color:
white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Bank charges</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(148</td><td style="text-align: left;">)</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(136</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Foreign currency translation differences</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(1,752</td><td style="text-align: left;">)</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">(377</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt;">Amortization of premium and accretion of discount on marketable securities</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(277</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(221</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,177</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(734</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;"> </td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;"> </td><td style="padding: 0pt; text-align: left; text-indent: 0pt;">Total financial income</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">93</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">96</td><td style="text-align: left; padding-bottom: 4pt;"></td></tr></table></div>
8625000
2300000
1125000
6325000
4250000
36058000
981000
0.48
0.29
69000
38324000
16526000
21798000
63672000
2663000
49843000
11166000
7000
2000
5000
72000
2000
68000
2000
107000
28000
79000
132000
8000
111000
13000
38224000
16500000
21724000
63612000
2657000
49800000
11155000
All investments with an unrealized loss as of June 30, 2017 are with continuous unrealized losses for less than 12 months.
38224000
38224000
63612000
63612000
3000
3000
88000
88000
38227000
38227000
63700000
63700000
1070000
1070000
1151000
1151000
1070000
1070000
1151000
1151000
81000
0.15
12322000
16650000
265000
1333000
8636000
2192000
88000
3000
3000000
These lines of credit are unsecured and available subject to the Company maintenance of a 30% ratio of total tangible shareholders' equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries' receivables. Interest rates across these credit lines varied from 0.2% to 2.3% as of June 30, 2017.
11491000
312000
312000
2
393000
30420165
33151633
1.0
1.0
1.5
21.15
0.017
0.0183
0.0226
0.0232
0.55
0.56
0.52
0.53
0.00
0.00
2733166
2270748
35000
3300
-445165
52253
872938
7.01
8.01
19.96
3.13
8.66
5.73
P7Y9M11D
P9Y10M10D
P9Y9M18D
P4Y9M0D
P7Y9M3D
P7Y10M17D
P6Y10M17D
1462000
206000
156000
332000
768000
1948000
287000
297000
430000
934000
19.35
10.81
2932176
13.03
The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five years period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company.
2400000
586000
69000
390000
127000
-398000
-29000
-369000
188000
40000
21000
127000
126000
36000
192000
1332000
512000
902000
830000
2270000
-136000
-148000
-377000
-1752000
-221000
-277000
-734000
-2177000
Inventory write-off amounted to $1,333 and $265 for the six months ended June 30, 2017 and 2016, respectively.
Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2017 is based on the share price of the Company's ordinary shares as of June 30, 2017 which was $19.35 per share.