Elbit Vision Systems (EVSNF) 20-F 29 Mar 16 2015 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2015shares
Document and Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Entity Registrant Name	ELBIT VISION SYSTEMS LTD
Entity Central Index Key	1,011,664
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	93,383,909
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 3,305	$ 1,067
Restricted deposit (short term)	69	44
Trade account receivables (net of allowance for doubtful account 2015- $85 thousands, 2014- $60 thousands)	1,383	901
Other receivables	78	110
Inventories	1,419	965
Total current assets	6,254	3,087
INVESTMENTS AND LONG-TERM RECEIVABLES:
Severance pay fund	193	194
Other long-term receivables and investment	67	79
Total investments and long-term receivables	260	273
PROPERTY AND EQUIPMENT (net of accumulated depreciation and amortization)	36	27
OTHER ASSETS
Goodwill	242	242
Total assets	6,792	3,629
CURRENT LIABILITIES:
Credit from banks	$ 149	183
Current Maturities of Long Term Loan from Shareholders and Other		170
Trade account payable	$ 1,171	637
Deferred income	324	578
Other payable	441	457
Total current liabilities	2,085	2,025
LONG-TERM LIABILITIES:
Long term loans (net of current maturities)	373	484
Other Long Terms Liabilities	429	526
Accrued severance pay	206	207
Total long-term liabilities	1,008	1,217
Total liabilities	3,093	3,242
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 1 par value (Ordinary Shares); Authorized - 120,000,000 Ordinary Shares as of December 31, 2015 and 2014 Issued and outstanding: December 31, 2015 - 93,207,243 Ordinary shares December 31, 2014 - 85,184,782 Ordinary shares	21,837	19,775
Additional paid-in capital	22,006	22,874
Accumulated deficit	(40,144)	(42,262)
Total shareholders' Equity	3,699	387
Total liabilities and shareholders' Equity	$ 6,792	$ 3,629

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) $ in Thousands	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2014₪ / shares
CONSOLIDATED BALANCE SHEETS [Abstract]
Trade accounts receivable, allowance for doubtful accounts | $	$ 85		$ 60
Ordinary shares, par value per share | ₪ / shares		₪ 1		₪ 1
Ordinary shares, shares authorized	120,000,000		120,000,000
Ordinary shares, shares issued	93,207,243		85,184,782
Ordinary shares, shares outstanding	93,207,243		85,184,782

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Sale of products	$ 8,085	$ 5,718	$ 3,365
Services rendered	1,043	926	893
Total revenues	9,128	6,644	4,258
Cost of revenues:
Cost of products sold	3,072	2,514	1,780
Cost of services rendered	810	631	699
Total cost of revenues	3,882	3,145	2,479
Gross profit	5,246	3,499	1,779
Research and development	765	560	625
Marketing and selling	1,411	1,187	1,022
General and administrative	808	729	866
Operating Profit (loss)	2,262	1,023	(734)
Financial expenses - net	(144)	(365)	(278)
Profit (loss) before taxes on income	$ 2,118	$ 658	$ (1,012)
Taxes on income
Net Profit (loss) for the year	$ 2,118	$ 658	$ (1,012)
Profit (loss) per share:
Basic earnings (loss) per share	$ 0.025	$ 0.008	$ (0.013)
Diluted earnings (loss) per share	$ 0.025	$ 0.008	$ (0.013)
Weighted average number of shares used in Computation of Profit (loss) per share -
Basic	85,461	82,183	78,155
Diluted	85,681	83,519	78,155

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) - USD ($) $ in Thousands		Total	Share Capital [Member]	Additional paid-in Capital [Member]	Accumulated deficit [Member]
BALANCE at Dec. 31, 2012		$ (274)	$ 16,939	$ 24,695	$ (41,908)
BALANCE, shares at Dec. 31, 2012			74,916
CHANGES DURING PERIOD
Profit (Loss) for the year		(1,012)			$ (1,012)
Issuance of share capital and warrants (note 9a)	[1]	$ 325	$ 1,615	$ (1,290)
Issuance of share capital and warrants, shares (note 9a)	[1]		5,882
Exercise of Share based compensation, shares
Issuance of debt beneficiary conversion feature		$ 50		50
Issuance of debt beneficiary conversion feature, shares
Revaluation of convertible loan and warrants		27		27
Share based compensation expenses		12		12
BALANCE at Dec. 31, 2013		(872)	$ 18,554	$ 23,494	$ (42,920)
BALANCE, shares at Dec. 31, 2013			80,798
CHANGES DURING PERIOD
Profit (Loss) for the year		658			$ 658
Issuance of share capital and warrants (note 9a)	[2]	230	$ 1,221	$ (991)
Issuance of share capital and warrants, shares (note 9a)	[2]		4,386
Reclassification of warrants to equity		$ 330		330
Exercise of Share based compensation, shares
Revaluation of convertible loan and warrants		$ 285
Share based compensation expenses		41		41
BALANCE at Dec. 31, 2014		$ 387	$ 19,775	$ 22,874	$ (42,262)
BALANCE, shares at Dec. 31, 2014		85,184,782	85,184
CHANGES DURING PERIOD
Profit (Loss) for the year		$ 2,118			$ 2,118
Issuance of share capital and warrants (note 9a)		1,148	$ 2,015	$ (867)
Issuance of share capital and warrants, shares (note 9a)			7,833
Exercise of Share based compensation		$ 10	$ 47	(37)
Exercise of Share based compensation, shares		190,000	190
Revaluation of convertible loan and warrants
Share based compensation expenses		$ 36		36
BALANCE at Dec. 31, 2015		$ 3,699	$ 21,837	$ 22,006	$ (40,144)
BALANCE, shares at Dec. 31, 2015		93,207,243	93,207
[1]	Net of share issuance costs in the amount of $20.
[2]	Net of share issuance costs in the amount of $20.

STATEMENTS OF CHANGES IN SHARE6

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) [Abstract]
Share issuance costs	$ 20	$ 20	$ 40

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net profit (loss)	$ 2,118,000	$ 658,000	$ (1,012,000)
Adjustments to reconcile net profit (loss) to Net cash provided by (used in) operating activities:
Depreciation and amortization	$ 6,000	$ 13,000	17,000
Impairment of Investment			65,000
Changes in warrants to issued shares			45,000
Revaluation of convertible loan and warrants		$ 285,000	27,000
Liability for employee rights upon retirement		(5,000)	1,000
Stock based compensation	$ 36,000	41,000	12,000
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable	(482,000)	112,000	86,000
Decrease in other accounts receivable	32,000	10,000	39,000
Increase (decrease) in trade accounts payable	534,000	(101,000)	(179,000)
Changes in Deferred income	(254,000)	540,000	(26,000)
Increase (decrease) in other accounts payable	(16,000)	(21,000)	8,000
Increase in inventories	(454,000)	(100,000)	(92,000)
Net cash provided by (used in) operating activities	1,520,000	1,432,000	(1,009,000)
Cash flows from investing activities:
Purchase of property and equipment	(15,000)	(9,000)	(5,000)
Long-term receivables	12,000	8,000	34,000
Investment in restricted deposit	(25,000)	(10,000)	(4,000)
Net cash provided by (used in) investing activities	(28,000)	(11,000)	25,000
Cash flows from financing activities:
Issuance of share capital and warrants - net of issuance costs	1,158,000	$ 230,000	$ 178,000
Short-term credit from bank - net	$ (34,000)
Repayments of loan from Shareholder		$ (200,000)	$ (169,000)
Repayments from Long- terms loan	$ (170,000)	(354,000)
Repayments of Long-terms loan from banks and other	$ (208,000)	$ (182,000)	$ (183,000)
Other Long terms liabilities			(82,000)
Net cash provided by (used in) financing activities	$ 746,000	$ (506,000)	(256,000)
Net increase (decrease) in cash and cash equivalents	2,238,000	915,000	(1,240,000)
Balance of cash and cash equivalents at Beginning of year	1,067,000	152,000	1,392,000
Balance of cash and cash equivalents at end of year	$ 3,305,000	$ 1,067,000	152,000
Non cash activities:
Conversion of convertible debt to equity			$ 147,000
Reclassification of warrants to equity		$ 330,000
Discount on convertible notes recognized to beneficial conversion feature			$ 50,000
Supplemental disclosure of cash flow Information - cash paid during the year for:
Interest paid - net	$ 19,000	$ 39,000	$ 42,000

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2015
GENERAL [Abstract]
GENERAL	NOTE 1 - GENERAL Elbit Vision Systems Ltd. (the “Company”) is an Israeli corporation, which, together with its subsidiaries (the “Group”), is principally engaged in the design, development, manufacturing and marketing automatic vision inspection and quality monitoring systems, and rendering services related to those systems. Elbit Vision Systems Inc. (“EVS Inc.”) incorporated in Delaware U.S.A. is wholly-owned subsidiary, engaged in the selling and marketing of the Company's products worldwide. In September 2004, the Company completed the acquisition of the entire shareholding of ScanMaster Systems (IRT) Ltd. (“ScanMaster Ltd.”), an Israeli company and IRT ScanMaster System Inc. (“ScanMaster Inc.”), a new Hampshire corporation (collectively - “ScanMaster”). ScanMaster is engaged in the development, manufacturing and marketing of equipment for the ultrasonic inspection of industrial parts and components for the automotive and transportation industries, the metal industry as well as applications for aircraft and jet engine inspection. During May 2010 the company sold all its shares in Scanmaster. In 2009 the Company experienced significant difficulties in sales and incurred heavy losses that led the Company to sell its investment in ScanMaster Ltd. and the Assets and Liablities of ScanMaster Inc. The purchasers repay loan of $ 550 675 10 450 In connection with the sale the Company restructured its debt with the Banks. Pursuant to the agreements the banks forgave part of the debt such that the Company's remaining debt is $ 1.6 10

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America. A. Use of estimates in the preparation of financial statements: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. Estimates and assumptions which, in the opinion of management, are significant to the underlying amounts included in the financial statements and for which it would be reasonably possible that future events or information could change those estimates include: (i) impairment assessments of goodwill and long-lived assets; (ii) realization of deferred income tax assets; and (iii) provisions for obsolete and slow moving inventory. These estimates are discussed further throughout the accompanying notes. B. Functional Currency and Financial Statements in U.S. Dollars: The currency of the primary economic environment in which operations of the company and its subsidiaries are conducted is the U.S. dollar (the “dollar”). Virtually all sales by the Company and its subsidiaries are made outside Israel in non-Israeli currencies, mainly the dollar. Most purchases of materials and components are made in dollars or in Israeli currency under contracts linked to the dollar. In addition, most marketing and service costs are incurred outside Israel, primarily in dollars, through the Company's wholly-owned non-Israeli subsidiaries. Thus, the functional currency of the Company and its subsidiaries is the dollar. Transactions in currencies other than each company's functional currency are translated based on the average currency exchange rates in accordance with the principles set forth in ASC 830-10, "Foreign Currency Translation". All gains and losses from translation of monetary balance sheet items and transactions denominated in currencies other than the functional currency are recorded in the statements of income as financial income, net as they arise. C. Principles of consolidation: The consolidated financial statements include the financial statements of the company and its wholly-owned subsidiaries. All material inter-company transactions and balances have been eliminated. D. Cash Equivalents: Cash equivalent consist of short-term highly liquid investments, that are readily convertible into cash with original maturities when purchased of three month or less. E. Allowance for doubtful accounts: The allowance for doubtful accounts has been made on the specific identification basis. F. Inventories: Inventories are stated at the lower of cost or market. Cost is determined as follows: Raw materials and spare parts - on moving average basis. Products in process and finished products – on basis of production costs. Inventories are written-down for estimated obsolescence, based on assumptions about future demand and market conditions. G. Property and equipment: (1) Property and equipment are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of assets, as follows: % Machinery and equipment 10 33 33 Office furniture and equipment 6 20 Vehicles 15 20 Leasehold improvements are amortized by the straight-line method over the term of the lease, or the estimated useful life of the improvements, whichever is shorter. (2) Impairment of long-lived assets Accounting for the Impairment or Disposal of Long-Lived Assets H. Other assets- Goodwill and Intangible Assets: • Goodwill Under ASC 350-20, “Goodwill and Other Intangible Assets” ("ASC 350-10"), goodwill is not amortized to earnings, but rather is subject to periodic testing for impairment, at the reporting unit level, at least annually or more frequently if certain events or indicators of impairment occur. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. Measurement of an impairment loss is an estimate, performed based on the following: If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The Group uses the discounted cash flow method to determine the fair value of the reporting unit. The Company has designated December 31 of each year as the date on which it will perform its annual goodwill and impairment test. I. Revenue recognition: (1) Sale of products: (a) General Revenues from sales of products and supplies are recognized when an arrangement exists, delivery has occurred and title passed to the customer, Group's price to the customer is fixed or determinable and collectibility is reasonably assured. In some cases, the Company grants its customers a trial period, usually several months, in order to evaluate prototype of the system's performance. In case that the systems performance meets the customer's requirements, it purchases the system at the end of the trial period. The Company does not recognize sales revenue from products shipped to customers for trial until such products are actually purchased. Until purchased, these products are recorded as consignment inventory at the lower of cost or market as of December 31, 2015 the Company has $ 142 (b) Right of return The Group does not provide, in the normal course of business, a right of return to its customers. (c) Multiple Deliverables The Company's multiple deliverable arrangements consist primarily of tangible products and professional services. The Company is unable to establish VSOE for all deliverables in an arrangement with multiple elements. Further, the Company is unable to reliably determine what similar competitor products' and services' selling prices are on a standalone basis and therefore is not able to determine TPE. As the Company is unable to establish VSOE or TPE, it uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company determines BESP for a product or a service based on its past and current pricing practices. The determination of BESP is made through consultation with and formal approval by the Company's management. We have establish processes to update BESP for each element, when appropriate, to ensure that it reflects recent pricing experience. (2) Services rendered Service revenue in respect of the Group's products is recognized ratably over the contractual period, or as services are performed. (3) Deferred income The deferred income balance as of December 31, 2015 and 2014 include amounts of revenues that were invoiced and cash was received, but deferred due to elements of the arrangements not yet delivered as of year end. J. Research and development: Research and development expenses net of third party grants, are expensed as incurred. The Company has no obligation to repay the grants if sales are not generated. K. Advertising expenses: Advertising expenses are expensed as in incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 were $ 109 52 81 L. Deferred income taxes: The company accounts for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes” ("ASC 740-10"). Deferred income taxes are determined by the asset and liability method based on the estimated future tax effects attributable to temporary differences between income tax bases of assets and liabilities and their reported amounts in the financial statements, and to carryforwards for tax losses and deductions. Deferred tax balances are computed using the enacted tax rates to be in effect at the time when these differences are expected to reverse, as they are known at the balance sheet date. Deferred tax assets and liabilities are classified as current or non-current according to the classification of the respective asset or liability, or the expected reversal date of the specific temporary difference, if not related to a specific asset or liability. Valuation allowances in respect of deferred tax assets are established when it is more likely than not that all or a portion of the deferred income tax assets will not be realized. M. Income (loss) per share (“EPS”): Basic EPS is computed based on the weighted average number of shares outstanding during each year. Total common stock equivalents, related to options and warrants 3,962,744 12,352,988 11,095,515 N. Stock-based compensation: The Company recognizes $ 36 As to information about the stock option plans and assumptions see Note 9b. O. Reclassification: Certain comparative figures have been reclassified to conform to the current year presentation. P. Consentration of credit risk As of December 31, 2015 and 2014, the Group held cash and cash equivalents and short-term bank deposits, most of which were deposited with major Israeli, European, and U.S. banks. The Company is of the opinion that the credit risk in respect of these balances is insignificant. The Group performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts. In respect of sales to customers in emerging economies, the Group requires letters of credit from banks. Q. Issuance of shares, warrants and a convertible note to an investor: The December 2012 Agreement (see note 9A (3)), included a shares, convertible debt instrument with stock warrants, and a beneficial conversion features. Under ASC 470-20-25, the Company separated the shares, debt instruments and the warrants based on their relative fair value for the liability components and for the equity components. The company accounted for the first warrants as an equity component and the second warrants as a liability component under the provision of ASC 815-10. In addition, the Company concluded that the liability component includes beneficial conversion features. Under ASC 470-20-25, issuers of certain debt instruments with beneficial conversion features need to allocate to an equity component. The Company separated it accordingly.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2015
INVENTORIES [Abstract]
INVENTORIES	NOTE 3 - INVENTORIES December 31, 2 0 1 5 2 0 1 4 $ in thousands Raw materials 1,066 606 Work in process 177 225 Finished products 176 134 1,419 965 The balances are net of write-down of $ 643

OTHER LONG-TERM RECEIVABLES AND

OTHER LONG-TERM RECEIVABLES AND INVESTMENT	12 Months Ended
	Dec. 31, 2015
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
OTHER LONG-TERM RECEIVABLES AND INVESTMENT	NOTE 4 - OTHER LONG-TERM RECEIVABLES AND INVESTMENT December 31, 2 0 1 5 2 0 1 4 $ in thousands Deposits on leased vehicle and other(see also Note 8b2) 11 11 Loan to non-affiliated companies (see Note 1) 56 68 67 79

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 - PROPERTY AND EQUIPMENT A. Comprised as follows: December 31, 2 0 1 5 2 0 1 4 $ in thousands Machinery and equipment 1,725 1,710 Leasehold improvements 24 24 Office furniture and equipment 44 44 1,793 1,778 Less - accumulated depreciation and amortization 1,757 1,751 36 27 B Depreciation and amortization expenses totaled $ 6 13 17

ACCRUED SEVERANCE PAY, NET

ACCRUED SEVERANCE PAY, NET	12 Months Ended
	Dec. 31, 2015
ACCRUED SEVERANCE PAY, NET [Abstract]
ACCRUED SEVERANCE PAY, NET	NOTE 6 - ACCRUED SEVERANCE PAY, NET A. The Company's liability for severance pay is calculated in accordance with Israeli law based on the latest salary paid to employees and the length of employment in the Company. Part of the liability is funded through individual insurance policies. The policies are assets of the company and, under labor agreement subject to certain limitation, they may be transferred to ownership of the beneficiary employees. B. A U.S. subsidiary provides defined contribution plan for the benefit of its employees. Under this plan, contributions are based on specific percentages of pay.

LONG-TERM LOANS

LONG-TERM LOANS	12 Months Ended
	Dec. 31, 2015
LONG-TERM LOANS [Abstract]
LONG-TERM LOANS	NOTE 7 - LONG TERM LOANS A. Composed as follows: December 31, 2 0 1 5 2 0 1 4 $ in thousands Loans from banks 373 484 In June 2010, the Company signed new agreements with Bank Le'umi Le'Israel Ltd and Bank Hapoalim Ltd (the "Banks"), for the restructuring of its bank debt. Pursuant to the agreements with the Banks, the Banks forgave approximately $ 2.4 1 600 In May 2010 the Company signed agreements with its major shareholders to loan US $ 100 Further, the Company's major shareholders agreed to delay payment of the first US $ 100 three In May 2010 the Company signed loan agreement with Mivtach (former Shareholder) of approximately $ 850 five B. The liabilities (net of current maturities) mature in the following years after the balance sheet dates: December 31, 2 0 1 5 2 0 1 4 $ in thousands 2015 - 149 2016 149 149 2017 149 149 2018 and thereafter 75 37 373 484

OTHER LONG-TERMS LIABILITIES

OTHER LONG-TERMS LIABILITIES	12 Months Ended
	Dec. 31, 2015
OTHER LONG-TERMS LIABILITIES [Abstract]
OTHER LONG-TERMS LIABILITIES	NOTE 8 - OTHER LONG TERMS LIABILITIES A. Royalties (1) The Company is committed to pay royalties to the Government of Israel based on proceeds from sales of products in the research and development of which the Government participates by way of grants. At the time the grants were received, successful development of the related projects was not assured. In the case of failure of a project that was partly financed as above, the Company is not obligated to pay any such royalties. Under the terms of the Company's funding from the Israeli Government, royalties of 3 5 100 (2) The Company is committed to pay royalties to the Government of Israel in respect of marketing expenses in which the Government participated by way of grants. At the time the grants were received, successful development of the related projects was not assured. In the case of failure of a project that was partly financed as above, the Company is not obligated to pay any such royalties. The royalties are payable at the rate of 4 On November 7, 2007, the Company received a letter from the Ministry of Trade, Industry and Labor – Fund for the Encouragement of Marketing Abroad (the “Fund”), claiming that it had failed to pay royalties to the Fund since 1999 in the aggregate amount of $ 480 90 On March 3, 2013, the Company received an email notification which was sent on behalf of the Ministry stating that the Company had received funding from the Fund in the past and requesting information relating to the Company's export revenues. The Company has not responded. The maximum royalty amount payable the Company expects to pay to the Government of Israel under 1 and 2 above ,at December 31, 2015 is approximately $ 451 In January 2011 the Company signed an agreement with the office of the Chief scientist of to repay the Copmany debt during the next ten years with monthly installment of $ 9.2 36 B. Lease commitments (1) The premises occupied by the Company and certain subsidiaries are rented under various operating lease agreements. The lease agreements for the premises expire in 2018 To secure the amounts due to the lessor, the Company has deposited a total of $ 26 Minimum lease commitments of the Company and the subsidiaries under the above leases, at rates in effect as of December 31, 2015, are as follows: $ in thousands Year ending December 31: 2016 85 2017 75 2018 38 198 The rental payments for the premises in Israel, which constitute most of the above amounts, are payable in Israeli currency linked to the US Dollar. Rental expenses totaled $ 86 92 87 (2) The Company leases motor vehicles under long-term operating lease agreements. The lease agreements expire on various dates ending in 2015 – 2018 Minimum lease commitments of the Company under the above leases, at rates in effect on December 31, 2015, are as follows: $ in thousands 2016 68 2017 36 2018 9 113 To secure the amounts due to the lessor, the Company has deposited a total of $ 6 Lease expenses in 2015, 2014 and 2013, amounted to $ 102 98 109 C. Guarantees As of December 31, 2015, the Company gave $ 41

SHAREHOLDER' EQUITY

SHAREHOLDER' EQUITY	12 Months Ended
	Dec. 31, 2015
SHAREHOLDER' EQUITY [Abstract]
SHAREHOLDER' EQUITY	NOTE 9 - SHAREHOLDER' EQUITY A. Authorized, issued and outstanding shares (1) The Company's Ordinary Shares are traded in the United States on the OTC Bulletin Board market under the symbol EVSNF.OB. (2) In December 2009 the Company issued Mivtach Shamir Holdings Ltd. 18,664,078 0.097 1,810,416 627,000 9,332,039 0.139 4 In May 2010, The current new shareholders of the Company purchased all those shares and Warrants. These warrants were fortified in June 2011. (3) In December 2012, The Company issued Mr. Gross some financial instruments in consideration of $ 760 40 5,263,158 0.095 2,105,263 0.095 200 300 May 2013 (4) The Note bears interest at a per annum rate of Libor rate. The Note and accrued interest are convertible to common stock of the Company at a conversion rate of $ 0.095 50 1 0.17 0.20 In May 2013 Mr. Gross convert the convertible note to Company's shares and the Company reduces the Conversion rate to $ 0.085 0.17 0.17 (5) In July 2014 The Company issued shares 4,166,667 1,833,334 146,667 B. Share option plans: (1) The plans: (a) In November 2003, the Board of Directors of the Company adopted the Employee Share Option Plan (2003) (hereafter – The 2003 Plan). Under the 2003 plan, options to purchase an aggregate of 3,500,000 Under the 2003 plan, options usually vest over a period of four The 2003 Plan is valid for ten (b) In March 2006, the Board of Directors of the Company adopted the Employee Share Option Plan (2006) (hereafter – The 2006 Plan). Under the 2006 plan, options to purchase an aggregate of 2,000,000 4,500,000 (c) Under the 2006 plan, options usually exercisable over a period up to ten 25 33 25 33 The 2006 Plan is valid for ten years and will expire in March, 2016, except for options outstanding on that date. The exercise price of options granted under the 2003 plan is to be not less than 85 During 2013, and 2014 no options were exercised. During 2015, 190,000 The 2003 and 2006 plans are subject to the terms stipulated by Section 102 of the Israeli Income Tax Ordinance. The amount allowed as an expense for tax purposes, at the time the employee utilizes such benefit, is limited to the amount of the benefit that is liable to tax as labor income, in the hands of the employee; all being subject to the restrictions specified in Section 102 of the Income Tax Ordinance. The aforementioned expense will be recognized in the tax year that the benefit is credited to the employee. (2) Options granted to employees: (a) A summary of the status of the above plans in respect of options granted to employees, directors and consultant of the Company and its subsidiaries as of December 31, 2015, 2014 and 2013, and changes during the years ended on those dates, is presented below: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Weighted Weighted Weighted average average average exercise exercise exercise Number price Number price Number price Options outstanding at beginning of year 4,227,610 0.1 4,804,444 0.4 5,509,563 0.45 Changes during the year: Granted (1) 535,000 0.17 1,140,000 0.08 345,000 0.09 Exercised (190,000 ) 0.05 - - - - Forfeited (382,191 ) 0.11 (1,716,834 ) 0.92 (1,050,119 ) 0.43 Options outstanding at end of year 4,190,419 0.11 4,227,610 0.1 4,804,444 0.43 Options exercisable at year end 3,170,424 0.10 3,169,583 0.11 3,689,416 0.4 Weighted average fair value of options granted during the year (2) $ 0.12 $ 0.04 $ 0.09 (1) Options granted in 2015, 2014 and 2013 were granted with exercise price that was at market value or above. (2) The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model in 2014 and 2015, with the following weighted average assumptions: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Dividend yield 0 % 0 % 0 % Expected volatility 81 % 64 % 64 % Risk-free interest rate 1.72 % 1.5 % 1.5 % Expected life - in years 6.5 4 4 Dividend yield - Management used an expected dividend yield based primarily on past experience applicable as of the grant date. Expected volatility - Management estimated volatility based on the historical volatility of the Company's ordinary shares, being the only traded financial instrument of the Company, using in most cases daily observations of the Company's price share to determine the standard deviation. Risk free interest rate - The risk-free interest rate is based on the implied yield in effect at the time of each option grant, based on U.S. Treasury zero-coupon bond issued with equivalent remaining terms. Management estimates forfeiture rates at the date of grant, which are adjusted in subsequent periods if the actual forfeiture rates differ from those initially estimated. Management uses historical data to estimate pre-vesting option forfeiture rates and records share-based compensation expense only for those awards that are expected to vest. (b) The following table summarizes certain information about options granted to employees and directors of the Company which were outstanding and exercisable under the above plans as of December 31, 2015: Options outstanding Options exercisable Weighted Weighted Number average Number average outstanding at remaining exercisable at remaining Exercise December 31, contractual December 31, contractual prices 2015 life 2015 life $ Years Years 0.05 0.32 4,000,419 0.03 9.82 2,980,424 0.03 8.88 0.4 0.46 127,500 1.28 2.12 127,500 1.28 2.12 0.49 25,000 2.01 25,000 2.01 0.75 0.78 37,500 0.12 1.29 37,500 0.15 1.29 4,190,419 3,170,424 (c) As of December 31, 2015 the aggregate intrinsic value for the option exercisable was $ 299 5.9 The unrecognized compensation expenses calculated under the fair value method for stock options expected to vest as of December 31, 2015 is approximately $ 55 1

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2015
TAXES ON INCOME [Abstract]
TAXES ON INCOME	NOTE 10 - TAXES ON INCOME A. Tax Rates Applicable To The Income Of The Company: The Company's taxable income is subject to income tax at the regular corporate rate of 26.5 35 B. Deferred Income Taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets are as follows: Year ended december 31, 2015 2014 Net loss carry-forward 10,004 10,525 Other additions for tax Purposes 183 154 Net deferred tax asset before valuation allowance 10,187 10,679 Valuation allowance (10,187 ) (10,679 ) Net deferred tax asset – - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant component of the Company's deferred tax assets is the accumulated net operating losses carry-forward among the two subsidiaries due to the uncertainty of the realization of such tax benefits. The Company has provided a full valuation allowance in respect of deferred tax assets resulting from tax loss carry-forward and other temporary differences. Management currently believes that since the Company has a history of losses it is more likely than not that the deferred tax regarding the loss carry-forward and other temporary differences will not be realized in the foreseeable future. Net profit (loss) was incurred as following: Year ended december 31, 2015 2014 United States (461 ) (238 ) Israel 2,579 896 2,118 658 C. Tax Loss Carry-Forwards: Net operating loss carry-forwards as of December 31, 2015 are as follows: Israel 38,926 United States * 1,218 40,144 Net operating loss carry-forwards as of December 31, 2014 are as follows: Israel 41,684 United States * 757 42,441 Net operating losses in Israel may be carried forward indefinitely. Net operating losses in the U.S. are available through 2027 * Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

LIABILITIES SECURED BY PLEDGES

LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES	12 Months Ended
	Dec. 31, 2015
LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES [Abstract]
LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES	NOTE 11 - LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES A. The Company has registered fixed charge on bank deposits in favor of certain banks. The bank deposits are used to secure a credit line granted to the Company by the banks, and as collateral for guarantees provided to its customers. As of December 31, 2015, the bank deposits amount to $ 69 B. The Company have registered floating liens on all of their assets in favor of.

SUPPLEMENTARY INFORMATION

SUPPLEMENTARY INFORMATION	12 Months Ended
	Dec. 31, 2015
SUPPLEMENTARY INFORMATION [Abstract]
SUPPLEMENTARY INFORMATION	NOTE 12 - SUPPLEMENTARY INFORMATION: December 31, 2 0 1 5 2 0 1 4 $ in thousands A. Accounts receivable (1) Trade - allowance for doubtful accounts: Balance at beginning of year 60 60 Charged to statement of operations 25 - Balance at end of year 85 60 (2) Other receivables: Prepaid expenses 12 27 Israeli Government departments and agencies 57 72 Other 9 11 78 110 B. Other payable: December 31, 2 0 1 5 2 0 1 4 $ in thousands Employees and employee institutions 75 43 Israeli Government departments and agencies 112 115 Provision for vacation and recreation pay 76 71 Provision for product warranty 113 91 Liability for commissions to agents 21 93 Accrued expenses and sundry 44 44 441 457 C. Credit from banks: % interest rate December 31, as of 2 0 1 5 2 0 14 December 31, 2015 $ in thousands Short-term loans from banks: Linked to the Dollar (See Note 7(a)) 2.5 149 183 149 183 D. Cost of revenues: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Industrial operations: Materials consumed 2,263 1,635 994 Payroll and related expenses 504 479 503 Subcontracted work 306 278 312 Depreciation and amortization 1 2 3 Other production expenses 808 751 667 3,882 3,145 2,479 E. Financial expenses: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Income: Exchange differences - 27 - Other 2 2 3 2 29 3 Expenses: Interest In respect of liability to related parties - 11 6 In respect of credit from banks 19 28 35 Exchange differences 60 - 108 Revaluation of convertible loan and warrants - 285 27 Warrants to issued shares compensation - - 45 Other 67 70 60 146 394 281 (144 ) (365 ) (278 )

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2015
RELATED PARTIES [Abstract]
RELATED PARTIES	NOTE 13 - RELATED PARTIES Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Managements fees – included in General and administrative 430 343 379 Balance with related parties: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Short Terms Loan - - 200

GEOGRAPHICAL SEGMENTS

GEOGRAPHICAL SEGMENTS	12 Months Ended
	Dec. 31, 2015
GEOGRAPHICAL SEGMENTS [Abstract]
GEOGRAPHICAL SEGMENTS	NOTE 14 - GEOGRAPHICAL SEGMENTS Geographic information: (1) The Company's revenues by geographic areas (based on location of customers) are as follows: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands North America (mainly the United States) 2,646 1,720 1,043 Germany 424 442 232 Italy 403 399 248 Turkey 200 241 - UK - 221 61 Russia 230 146 Other European countries 1,000 1,384 995 China 2,824 1,420 688 India 598 80 194 Japan 437 200 553 Israel 165 210 180 Other Far Eastern countries 201 181 64 9,128 6,644 4,258 (2) The Company's long-lived assets by geographic areas are as follows: Year ended December 31, 2 0 1 5 2 0 1 4 $ in thousands Israel 526 530 U.S.A. 12 12 538 542

SIGNIFICANT ACCOUNTING POLICI22

SIGNIFICANT ACCOUNTING POLICIES (Policy)	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Use of estimates in the preparation of financial statements	A. Use of estimates in the preparation of financial statements: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. Estimates and assumptions which, in the opinion of management, are significant to the underlying amounts included in the financial statements and for which it would be reasonably possible that future events or information could change those estimates include: (i) impairment assessments of goodwill and long-lived assets; (ii) realization of deferred income tax assets; and (iii) provisions for obsolete and slow moving inventory. These estimates are discussed further throughout the accompanying notes.
Functional Currency and Financial Statements in U.S. Dollars	B. Functional Currency and Financial Statements in U.S. Dollars: The currency of the primary economic environment in which operations of the company and its subsidiaries are conducted is the U.S. dollar (the “dollar”). Virtually all sales by the Company and its subsidiaries are made outside Israel in non-Israeli currencies, mainly the dollar. Most purchases of materials and components are made in dollars or in Israeli currency under contracts linked to the dollar. In addition, most marketing and service costs are incurred outside Israel, primarily in dollars, through the Company's wholly-owned non-Israeli subsidiaries. Thus, the functional currency of the Company and its subsidiaries is the dollar. Transactions in currencies other than each company's functional currency are translated based on the average currency exchange rates in accordance with the principles set forth in ASC 830-10, "Foreign Currency Translation". All gains and losses from translation of monetary balance sheet items and transactions denominated in currencies other than the functional currency are recorded in the statements of income as financial income, net as they arise.
Principles of consolidation	C. Principles of consolidation: The consolidated financial statements include the financial statements of the company and its wholly-owned subsidiaries. All material inter-company transactions and balances have been eliminated.
Cash Equivalents	D. Cash Equivalents: Cash equivalent consist of short-term highly liquid investments, that are readily convertible into cash with original maturities when purchased of three month or less.
Allowance for doubtful accounts	E. Allowance for doubtful accounts: The allowance for doubtful accounts has been made on the specific identification basis.
Inventories	F. Inventories: Inventories are stated at the lower of cost or market. Cost is determined as follows: Raw materials and spare parts - on moving average basis. Products in process and finished products – on basis of production costs. Inventories are written-down for estimated obsolescence, based on assumptions about future demand and market conditions.
Property and equipment	G. Property and equipment: (1) Property and equipment are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of assets, as follows: % Machinery and equipment 10 33 33 Office furniture and equipment 6 20 Vehicles 15 20 Leasehold improvements are amortized by the straight-line method over the term of the lease, or the estimated useful life of the improvements, whichever is shorter. (2) Impairment of long-lived assets Accounting for the Impairment or Disposal of Long-Lived Assets
Other assets - Goodwill and Intangible Assets	H. Other assets- Goodwill and Intangible Assets: • Goodwill Under ASC 350-20, “Goodwill and Other Intangible Assets” ("ASC 350-10"), goodwill is not amortized to earnings, but rather is subject to periodic testing for impairment, at the reporting unit level, at least annually or more frequently if certain events or indicators of impairment occur. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. Measurement of an impairment loss is an estimate, performed based on the following: If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The Group uses the discounted cash flow method to determine the fair value of the reporting unit. The Company has designated December 31 of each year as the date on which it will perform its annual goodwill and impairment test.
Revenue recognition	I. Revenue recognition: (1) Sale of products: (a) General Revenues from sales of products and supplies are recognized when an arrangement exists, delivery has occurred and title passed to the customer, Group's price to the customer is fixed or determinable and collectibility is reasonably assured. In some cases, the Company grants its customers a trial period, usually several months, in order to evaluate prototype of the system's performance. In case that the systems performance meets the customer's requirements, it purchases the system at the end of the trial period. The Company does not recognize sales revenue from products shipped to customers for trial until such products are actually purchased. Until purchased, these products are recorded as consignment inventory at the lower of cost or market as of December 31, 2015 the Company has $ 142 (b) Right of return The Group does not provide, in the normal course of business, a right of return to its customers. (c) Multiple Deliverables The Company's multiple deliverable arrangements consist primarily of tangible products and professional services. The Company is unable to establish VSOE for all deliverables in an arrangement with multiple elements. Further, the Company is unable to reliably determine what similar competitor products' and services' selling prices are on a standalone basis and therefore is not able to determine TPE. As the Company is unable to establish VSOE or TPE, it uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company determines BESP for a product or a service based on its past and current pricing practices. The determination of BESP is made through consultation with and formal approval by the Company's management. We have establish processes to update BESP for each element, when appropriate, to ensure that it reflects recent pricing experience. (2) Services rendered Service revenue in respect of the Group's products is recognized ratably over the contractual period, or as services are performed. (3) Deferred income The deferred income balance as of December 31, 2015 and 2014 include amounts of revenues that were invoiced and cash was received, but deferred due to elements of the arrangements not yet delivered as of year end.
Research and development	J. Research and development: Research and development expenses net of third party grants, are expensed as incurred. The Company has no obligation to repay the grants if sales are not generated.
Advertising expenses	K. Advertising expenses: Advertising expenses are expensed as in incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 were $ 109 52 81
Deferred income taxes	L. Deferred income taxes: The company accounts for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes” ("ASC 740-10"). Deferred income taxes are determined by the asset and liability method based on the estimated future tax effects attributable to temporary differences between income tax bases of assets and liabilities and their reported amounts in the financial statements, and to carryforwards for tax losses and deductions. Deferred tax balances are computed using the enacted tax rates to be in effect at the time when these differences are expected to reverse, as they are known at the balance sheet date. Deferred tax assets and liabilities are classified as current or non-current according to the classification of the respective asset or liability, or the expected reversal date of the specific temporary difference, if not related to a specific asset or liability. Valuation allowances in respect of deferred tax assets are established when it is more likely than not that all or a portion of the deferred income tax assets will not be realized.
Income (loss) per share ("EPS")	M. Income (loss) per share (“EPS”): Basic EPS is computed based on the weighted average number of shares outstanding during each year. Total common stock equivalents, related to options and warrants 3,962,744 12,352,988 11,095,515
Stock-based compensation	N. Stock-based compensation: The Company recognizes $ 36 As to information about the stock option plans and assumptions see Note 9b.
Reclassification	O. Reclassification: Certain comparative figures have been reclassified to conform to the current year presentation.
Concentration of credit risk	P. Consentration of credit risk As of December 31, 2015 and 2014, the Group held cash and cash equivalents and short-term bank deposits, most of which were deposited with major Israeli, European, and U.S. banks. The Company is of the opinion that the credit risk in respect of these balances is insignificant. The Group performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts. In respect of sales to customers in emerging economies, the Group requires letters of credit from banks.
Issuance of shares, warrants and a convertible note to an investor	Q. Issuance of shares, warrants and a convertible note to an investor: The December 2012 Agreement (see note 9A (3)), included a shares, convertible debt instrument with stock warrants, and a beneficial conversion features. Under ASC 470-20-25, the Company separated the shares, debt instruments and the warrants based on their relative fair value for the liability components and for the equity components. The company accounted for the first warrants as an equity component and the second warrants as a liability component under the provision of ASC 815-10. In addition, the Company concluded that the liability component includes beneficial conversion features. Under ASC 470-20-25, issuers of certain debt instruments with beneficial conversion features need to allocate to an equity component. The Company separated it accordingly.

SIGNIFICANT ACCOUNTING POLICI23

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Annual Depreciation Rates	% Machinery and equipment 10 33 33 Office furniture and equipment 6 20 Vehicles 15 20

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2015
INVENTORIES [Abstract]
Schedule of Inventories	December 31, 2 0 1 5 2 0 1 4 $ in thousands Raw materials 1,066 606 Work in process 177 225 Finished products 176 134 1,419 965

OTHER LONG-TERM RECEIVABLES A25

OTHER LONG-TERM RECEIVABLES AND INVESTMENT (Tables)	12 Months Ended
	Dec. 31, 2015
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
Schedule of Other Long-Term Receivables and Investment	December 31, 2 0 1 5 2 0 1 4 $ in thousands Deposits on leased vehicle and other(see also Note 8b2) 11 11 Loan to non-affiliated companies (see Note 1) 56 68 67 79

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT [Abstract]
Schedule of Property and Equipment	A. Comprised as follows: December 31, 2 0 1 5 2 0 1 4 $ in thousands Machinery and equipment 1,725 1,710 Leasehold improvements 24 24 Office furniture and equipment 44 44 1,793 1,778 Less - accumulated depreciation and amortization 1,757 1,751 36 27

LONG-TERM LOANS (Tables)

LONG-TERM LOANS (Tables)	12 Months Ended
	Dec. 31, 2015
LONG-TERM LOANS [Abstract]
Schedule of Loans	December 31, 2 0 1 5 2 0 1 4 $ in thousands Loans from banks 373 484
Schedule of Future Maturities	December 31, 2 0 1 5 2 0 1 4 $ in thousands 2015 - 149 2016 149 149 2017 149 149 2018 and thereafter 75 37 373 484

OTHER LONG-TERMS LIABILITIES (T

OTHER LONG-TERMS LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Premises [Member]
Lease Type [Line Items]
Schedule of Minimum Lease Commitments	$ in thousands Year ending December 31: 2016 85 2017 75 2018 38 198
Vehicles [Member]
Lease Type [Line Items]
Schedule of Minimum Lease Commitments	$ in thousands 2016 68 2017 36 2018 9 113

SHAREHOLDER' EQUITY (Tables)

SHAREHOLDER' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
SHAREHOLDER' EQUITY [Abstract]
Schedule of Stock Option Activity	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Weighted Weighted Weighted average average average exercise exercise exercise Number price Number price Number price Options outstanding at beginning of year 4,227,610 0.1 4,804,444 0.4 5,509,563 0.45 Changes during the year: Granted (1) 535,000 0.17 1,140,000 0.08 345,000 0.09 Exercised (190,000 ) 0.05 - - - - Forfeited (382,191 ) 0.11 (1,716,834 ) 0.92 (1,050,119 ) 0.43 Options outstanding at end of year 4,190,419 0.11 4,227,610 0.1 4,804,444 0.43 Options exercisable at year end 3,170,424 0.10 3,169,583 0.11 3,689,416 0.4 Weighted average fair value of options granted during the year (2) $ 0.12 $ 0.04 $ 0.09 (1) Options granted in 2015, 2014 and 2013 were granted with exercise price that was at market value or above. (2) The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model in 2014 and 2015, with the following weighted average assumptions:
Schedule of Fair Value of Options Granted	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Dividend yield 0 % 0 % 0 % Expected volatility 81 % 64 % 64 % Risk-free interest rate 1.72 % 1.5 % 1.5 % Expected life - in years 6.5 4 4
Schedule of Information about Options Granted	(b) The following table summarizes certain information about options granted to employees and directors of the Company which were outstanding and exercisable under the above plans as of December 31, 2015: Options outstanding Options exercisable Weighted Weighted Number average Number average outstanding at remaining exercisable at remaining Exercise December 31, contractual December 31, contractual prices 2015 life 2015 life $ Years Years 0.05 0.32 4,000,419 0.03 9.82 2,980,424 0.03 8.88 0.4 0.46 127,500 1.28 2.12 127,500 1.28 2.12 0.49 25,000 2.01 25,000 2.01 0.75 0.78 37,500 0.12 1.29 37,500 0.15 1.29 4,190,419 3,170,424 (c) As of December 31, 2015 the aggregate intrinsic value for the option exercisable was $ 299 5.9

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2015
TAXES ON INCOME [Abstract]
Schedule of Deferred Tax Assets	Year ended december 31, 2015 2014 Net loss carry-forward 10,004 10,525 Other additions for tax Purposes 183 154 Net deferred tax asset before valuation allowance 10,187 10,679 Valuation allowance (10,187 ) (10,679 ) Net deferred tax asset – -
Schedule of Net Profit (Loss)	Year ended december 31, 2015 2014 United States (461 ) (238 ) Israel 2,579 896 2,118 658
Schedule of Net Operating Loss Carry-Forwards	C. Tax Loss Carry-Forwards: Net operating loss carry-forwards as of December 31, 2015 are as follows: Israel 38,926 United States * 1,218 40,144 Net operating loss carry-forwards as of December 31, 2014 are as follows: Israel 41,684 United States * 757 42,441

SUPPLEMENTARY INFORMATION (Tabl

SUPPLEMENTARY INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
SUPPLEMENTARY INFORMATION [Abstract]
Schedule of Accounts Receivable	December 31, 2 0 1 5 2 0 1 4 $ in thousands A. Accounts receivable (1) Trade - allowance for doubtful accounts: Balance at beginning of year 60 60 Charged to statement of operations 25 - Balance at end of year 85 60 (2) Other receivables: Prepaid expenses 12 27 Israeli Government departments and agencies 57 72 Other 9 11 78 110
Schedule of Accounts Payable and Other Accruals	December 31, 2 0 1 5 2 0 1 4 $ in thousands Employees and employee institutions 75 43 Israeli Government departments and agencies 112 115 Provision for vacation and recreation pay 76 71 Provision for product warranty 113 91 Liability for commissions to agents 21 93 Accrued expenses and sundry 44 44 441 457
Schedule of Credit from Banks	% interest rate December 31, as of 2 0 1 5 2 0 14 December 31, 2015 $ in thousands Short-term loans from banks: Linked to the Dollar (See Note 7(a)) 2.5 149 183 149 183
Schedule of Cost of Revenues	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Industrial operations: Materials consumed 2,263 1,635 994 Payroll and related expenses 504 479 503 Subcontracted work 306 278 312 Depreciation and amortization 1 2 3 Other production expenses 808 751 667 3,882 3,145 2,479
Schedule of Financing Expenses, Net	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Income: Exchange differences - 27 - Other 2 2 3 2 29 3 Expenses: Interest In respect of liability to related parties - 11 6 In respect of credit from banks 19 28 35 Exchange differences 60 - 108 Revaluation of convertible loan and warrants - 285 27 Warrants to issued shares compensation - - 45 Other 67 70 60 146 394 281 (144 ) (365 ) (278 )

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2015
RELATED PARTIES [Abstract]
Schedule of Related Party Transactions and Balances	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Managements fees – included in General and administrative 430 343 379 Balance with related parties: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands Short Terms Loan - - 200

GEOGRAPHICAL SEGMENTS (Tables)

GEOGRAPHICAL SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
GEOGRAPHICAL SEGMENTS [Abstract]
Schedule of Revenues by Geographic Areas	Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 $ in thousands North America (mainly the United States) 2,646 1,720 1,043 Germany 424 442 232 Italy 403 399 248 Turkey 200 241 - UK - 221 61 Russia 230 146 Other European countries 1,000 1,384 995 China 2,824 1,420 688 India 598 80 194 Japan 437 200 553 Israel 165 210 180 Other Far Eastern countries 201 181 64 9,128 6,644 4,258
Schedule of Long-Lived Assets by Geographic Areas	Year ended December 31, 2 0 1 5 2 0 1 4 $ in thousands Israel 526 530 U.S.A. 12 12 538 542

GENERAL (Details)

GENERAL (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2012	Jan. 01, 2011
GENERAL [Abstract]
Sale of subsidiary, gain		$ 550
Sale of subsidiary, amount of debt extinguished		$ 675
Sale of subsidiary, period for installments		10 years
Total debt			$ 450	$ 1,600
Debt instrument, term	10 years

SIGNIFICANT ACCOUNTING POLICI35

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue recognition:
Consignment	$ 142
Advertising expenses:
Advertising expenses	109	$ 52	$ 81
Stock-based compensation:
Stock based compensation	$ 36	$ 41	$ 12
Stock Options And Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	3,962,744	12,352,988	11,095,515

SIGNIFICANT ACCOUNTING POLICI36

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Annual Depreciation Rates) (Details)	Dec. 31, 2015
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	33.00%
Machinery and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	10.00%
Machinery and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	33.00%
Office furniture and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	6.00%
Office furniture and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	20.00%
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	15.00%
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Annual depreciation rate	20.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
INVENTORIES [Abstract]
Raw materials	$ 1,066	$ 606
Work in process	177	225
Finished products	176	134
Total inventories	1,419	$ 965
Inventory write-down	$ 643

OTHER LONG-TERM RECEIVABLES A38

OTHER LONG-TERM RECEIVABLES AND INVESTMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
Deposits on leased vehicle and other (see also Note 8b2)	$ 11	$ 11
Loan to non-affiliated companies (see Note 1)	56	68
Other long-term receivables and investment	$ 67	$ 79

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,793	$ 1,778
Less - accumulated depreciation and amortization	1,757	1,751
Property and equipment, net	36	27
Depreciation and amortization expenses	6	13	$ 17
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,725	1,710
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	24	24
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 44	$ 44

LONG-TERM LOANS (Schedule of Lo

LONG-TERM LOANS (Schedule of Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
LONG-TERM LOANS [Abstract]
Loans from banks	$ 373	$ 484

LONG-TERM LOANS (Narrative) (De

LONG-TERM LOANS (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2010	May. 31, 2010	Dec. 31, 2011	Dec. 31, 2009
Debt Instrument [Line Items]
Amount of debt extinguished				$ 675
Debt instrument, term			10 years
Shareholders [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 100
Delayed payment amount		$ 100
Debt instrument, term		3 months
Banks [Member]
Debt Instrument [Line Items]
Amount of debt extinguished	$ 2,400
Total debt, amount maturing in 5 years	1,000
Total debt, amount maturing in 10 years	$ 600
Mivtach [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 850
Debt instrument, term		5 years

LONG-TERM LOANS (Schedule of Fu

LONG-TERM LOANS (Schedule of Future Maturities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
LONG-TERM LOANS [Abstract]
2,015		$ 149
2,016	$ 149	149
2,017	149	149
2018 and thereafter	75	37
Total long-term debt	$ 373	$ 484

OTHER LONG-TERMS LIABILITIES (N

OTHER LONG-TERMS LIABILITIES (Narrative) (Details) ₪ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015ILS (₪)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Nov. 07, 2007USD ($)
Commitments and Contingent Liabilities [Line Items]
Maximum percentage of grants received	100.00%
Royalty percentage, increase in export sales	4.00%
Possible delinquent royalties					$ 480,000
Possible delinquent royalties, allowance	$ 90,000
Royalty payable	451,000
Lease Type [Line Items]
Lease deposits	11,000		$ 11,000
Guarantees for lease	41,000
Chief Scientist [Member]
Commitments and Contingent Liabilities [Line Items]
Periodic installment of debt	$ 9,200	₪ 36
Minimum [Member]
Commitments and Contingent Liabilities [Line Items]
Royalty percentage	3.00%
Maximum [Member]
Commitments and Contingent Liabilities [Line Items]
Royalty percentage	5.00%
Premises [Member]
Lease Type [Line Items]
Lease deposits	$ 26,000
Rent expenses	$ 86,000		92,000	$ 87,000
Lease expiration date	Jan. 1, 2018	Jan. 1, 2018
Vehicles [Member]
Lease Type [Line Items]
Lease deposits	$ 6,000
Rent expenses	$ 102,000		$ 98,000	$ 109,000
Lease expiration date, minimum	Jan. 1, 2015	Jan. 1, 2015
Lease expiration date, maximum	Jan. 1, 2018	Jan. 1, 2018

OTHER LONG-TERMS LIABILITIES (S

OTHER LONG-TERMS LIABILITIES (Schedule of Minimum Lease Commitments) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Premises [Member]
Lease Type [Line Items]
2,016	$ 85
2,017	75
2,018	38
Total minimum lease commitments	198
Vehicles [Member]
Lease Type [Line Items]
2,016	68
2,017	36
2,018	9
Total minimum lease commitments	$ 113

SHAREHOLDER' EQUITY (Narrative)

SHAREHOLDER' EQUITY (Narrative) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2009	Aug. 31, 2014	Mar. 31, 2006	Nov. 30, 2003
SHAREHOLDER' EQUITY [Abstract]
Shares issued	4,166,667				5,263,158	18,664,078
Shares issued, price per share					$ 0.095	$ 0.097
Share issuance costs			$ 20,000	$ 20,000	$ 40,000
Net proceeds from sale of stock	$ 146,667	$ 1,158,000	$ 230,000	178,000	$ 760	$ 1,810,416
Issuance of warrants to purchase common stock	1,833,334				2,105,263	9,332,039
Exercise price of warrant issued		$ 0.17			$ 0.095	$ 0.139	$ 0.17
Warrants, minimum exercise price		0.17
Warrants, maximum exercise price		$ 0.20
Warrants, maximum potential proceeds		$ 1,000,000			$ 200
Warrant term						4 years
Conversion of convertible debt to shares				$ 147,000		$ 627,000
Exercisable options, intrinsic value		$ 299,000
Exercisable options, weighted-average remaining contractual term		5 years 10 months 24 days
Unrecognized compensation cost		$ 55,000
Unrecognized compensation cost, period for recognition		1 year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum percentage of fair market value		85.00%
Options exercised		190,000
Mr. Gross [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt conversion, price per share				$ 0.085	$ 0.095
Debt conversion, percentage to trigger additional warrants					50.00%
Debt instrument, face amount					$ 300
Debt instrument, maturity date					May 1, 2013
2003 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized									3,500,000
Vesting period		4 years
Plan term		10 years
2006 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		4,500,000						2,000,000
Plan term		10 years
2006 Plan [Member] | Minimum [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
2006 Plan [Member] | Minimum [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
2006 Plan [Member] | Maximum [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.00%
2006 Plan [Member] | Maximum [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.00%

SHAREHOLDER' EQUITY (Schedule o

SHAREHOLDER' EQUITY (Schedule of Stock Option Activity) (Details) - $ / shares		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number
Options outstanding at beginning of year		4,227,610	4,804,444	5,509,563
Granted	[1]	535,000	1,140,000	345,000
Exercised		(190,000)
Forfeited		(382,191)	(1,716,834)	(1,050,119)
Options outstanding at end of year		4,190,419	4,227,610	4,804,444
Options exercisable at year end		3,170,424	3,169,583	3,689,416
Weighted average fair value of options granted during the year	[2]	$ 0.12	$ 0.04	$ 0.09
Weighted average exercise price
Options outstanding at beginning of year		0.1	0.4	0.45
Granted	[1]	0.17	$ 0.08	$ 0.09
Exercised		0.05
Forfeited		0.11	$ 0.92	$ 0.43
Options outstanding at end of year		0.11	0.1	0.4
Options exercisable at year end		$ 0.10	$ 0.11	$ 0.4
[1]	Options granted in 2015, 2014 and 2013 were granted with exercise price that was at market value or above.
[2]	The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model in 2014 and 2015, with the following weighted average assumptions:

SHAREHOLDER' EQUITY (Schedule47

SHAREHOLDER' EQUITY (Schedule of Fair Value of Options Granted) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
SHAREHOLDER' EQUITY [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	81.00%	64.00%	64.00%
Risk-free interest rate	1.72%	1.50%	1.50%
Expected life	6 years 6 months	4 years	4 years

SHAREHOLDER' EQUITY (Schedule48

SHAREHOLDER' EQUITY (Schedule of Information about Options Granted) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	4,190,419	4,227,610	4,804,444	5,509,563
Options exercisable	3,170,424	3,169,583	3,689,416
0.05-0.32 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	4,000,419
Options exercisable	2,980,424
Exercise price, minimum	$ 0.05
Exercise price, maximum	$ 0.32
0.05-0.32 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	11 days
Options exercisable, weighted average remaining contractual life	11 days
0.05-0.32 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	9 years 9 months 25 days
Options exercisable, weighted average remaining contractual life	8 years 10 months 17 days
0.4-0.46 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	127,500
Options exercisable	127,500
Exercise price, minimum	$ 0.4
Exercise price, maximum	$ 0.46
0.4-0.46 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	1 year 3 months 11 days
Options exercisable, weighted average remaining contractual life	1 year 3 months 11 days
0.4-0.46 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	2 years 1 month 13 days
Options exercisable, weighted average remaining contractual life	2 years 1 month 13 days
0.49 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	25,000
Options exercisable	25,000
Exercise price, minimum	$ 0.49
0.49 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	2 years 4 days
Options exercisable, weighted average remaining contractual life	2 years 4 days
0.75-0.78 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	37,500
Options exercisable	37,500
Exercise price, minimum	$ 0.75
Exercise price, maximum	$ 0.78
0.75-0.78 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	1 month 13 days
Options exercisable, weighted average remaining contractual life	1 month 24 days
0.75-0.78 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, weighted average remaining contractual life	1 year 3 months 14 days
Options exercisable, weighted average remaining contractual life	1 year 3 months 14 days

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details)	12 Months Ended
	Dec. 31, 2015
Israel [Member]
Income Tax Examination [Line Items]
Corporate tax rate	26.50%
US [Member]
Income Tax Examination [Line Items]
Corporate tax rate	35.00%

TAXES ON INCOME (Schedule of De

TAXES ON INCOME (Schedule of Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
TAXES ON INCOME [Abstract]
Net loss carry-forward	$ 10,004	$ 10,525
Other additions for tax Purposes	183	154
Net deferred tax asset before valuation allowance	10,187	10,679
Valuation allowance	$ (10,187)	$ (10,679)
Net deferred tax asset

TAXES ON INCOME (Schedule of Ne

TAXES ON INCOME (Schedule of Net Profit (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
TAXES ON INCOME [Abstract]
United States	$ (461)	$ (238)
Israel	2,579	896
Profit (loss) before taxes on income	$ 2,118	$ 658	$ (1,012)

TAXES ON INCOME (Schedule of 52

TAXES ON INCOME (Schedule of Net Operating Loss Carry-Forwards) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
TAXES ON INCOME [Abstract]
Israel		$ 38,926	$ 41,684
United States	[1]	1,218	757
Tax Loss Carry-Forwards		$ 40,144	$ 42,441
Expiration date		Dec. 31, 2027
[1]	Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

LIABILITIES SECURED BY PLEDGE53

LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES (Details) $ in Thousands	Dec. 31, 2015USD ($)
LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES [Abstract]
Bank deposits	$ 69

SUPPLEMENTARY INFORMATION (Sche

SUPPLEMENTARY INFORMATION (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Trade - allowance for doubtful accounts
Balance at beginning of year	$ 60	$ 60
Charged to statement of operations	25
Balance at end of year	85	$ 60
Other receivables:
Prepaid expenses	12	27
Israeli Government departments and agencies	57	72
Other	9	11
Total other assets	$ 78	$ 110

SUPPLEMENTARY INFORMATION (Sc55

SUPPLEMENTARY INFORMATION (Schedule of Accounts Payable and Other Accruals) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other payable:
Employees and employee institutions	$ 75	$ 43
Israeli Government departments and agencies	112	115
Provision for vacation and recreation pay	76	71
Provision for product warranty	113	91
Liability for commissions to agents	21	93
Accrued expenses and sundry	44	44
Total accounts payable and accruals - other	$ 441	$ 457

SUPPLEMENTARY INFORMATION (Sc56

SUPPLEMENTARY INFORMATION (Schedule of Credit from Banks) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Credit from banks	$ 149	$ 183
Linked To Dollar [Member] | Banks [Member]
Debt Instrument [Line Items]
% interest rate as of December 31, 2015	2.50%
Credit from banks	$ 149	$ 183

SUPPLEMENTARY INFORMATION (Sc57

SUPPLEMENTARY INFORMATION (Schedule of Cost of Revenues) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Industrial operations:
Materials consumed	$ 2,263	$ 1,635	$ 994
Payroll and related expenses	504	479	503
Subcontracted work	306	278	312
Depreciation and amortization	1	2	3
Other production expenses	808	751	667
Total cost of revenues	$ 3,882	$ 3,145	$ 2,479

SUPPLEMENTARY INFORMATION (Sc58

SUPPLEMENTARY INFORMATION (Schedule of Financial Expenses, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income:
Exchange differences		$ 27
Other	$ 2	2	$ 3
Total Income	$ 2	29	3
Expenses:
Interest - In respect of liability to related parties		11	6
Interest - In respect of credit from banks	$ 19	$ 28	35
Exchange differences	$ 60		108
Revaluation of convertible loan and warrants		$ 285	27
Warrants to issued shares compensation			45
Other	$ 67	$ 70	60
Total Expenses	146	394	281
Financial expenses, net	$ (144)	$ (365)	$ (278)

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
RELATED PARTIES [Abstract]
Management fees - included in General and administrative	$ 430	$ 343	$ 379
Short Terms Loan			$ 200

GEOGRAPHICAL SEGMENTS (Schedule

GEOGRAPHICAL SEGMENTS (Schedule of Revenues by Geographic Areas) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenues	$ 9,128	$ 6,644	$ 4,258
North America (mainly the United States) [Member]
Segment Reporting Information [Line Items]
Revenues	2,646	1,720	1,043
Germany [Member]
Segment Reporting Information [Line Items]
Revenues	424	442	232
Italy [Member]
Segment Reporting Information [Line Items]
Revenues	403	399	$ 248
Turkey [Member]
Segment Reporting Information [Line Items]
Revenues	$ 200	241
UK [Member]
Segment Reporting Information [Line Items]
Revenues		221	$ 61
Russia [Member]
Segment Reporting Information [Line Items]
Revenues	$ 230	146
Other European Countries [Member]
Segment Reporting Information [Line Items]
Revenues	1,000	1,384	995
China [Member]
Segment Reporting Information [Line Items]
Revenues	2,824	1,420	688
India [Member]
Segment Reporting Information [Line Items]
Revenues	598	80	194
Japan [Member]
Segment Reporting Information [Line Items]
Revenues	437	200	553
Israel [Member]
Segment Reporting Information [Line Items]
Revenues	165	210	180
Other Far Eastern Countries [Member]
Segment Reporting Information [Line Items]
Revenues	$ 201	$ 181	$ 64

GEOGRAPHICAL SEGMENTS (Schedu61

GEOGRAPHICAL SEGMENTS (Schedule of Long-Lived Assets by Geographic Areas) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Long-lived assets	$ 538	$ 542
Israel [Member]
Segment Reporting Information [Line Items]
Long-lived assets	526	530
U.S.A. [Member]
Segment Reporting Information [Line Items]
Long-lived assets	$ 12	$ 12