Elbit Vision Systems (EVSNF) 20-F 6 Apr 17 2016 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2016shares
Document and Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
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	2,016
Document Fiscal Period Focus	FY
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	9,384,988
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents		$ 4,528	$ 3,305
Restricted deposit (short term)		111	69
Trade account receivables (net of allowance for doubtful account 2016- $61 thousands, 2015- $85 thousands)		1,136	1,383
Other receivables		286	78
Inventories		1,651	1,419
Total current assets		7,712	6,254
INVESTMENTS AND LONG-TERM RECEIVABLES:
Severance pay fund		140	193
Other long-term receivables and investment		35	67
Total investments and long-term receivables		175	260
PROPERTY AND EQUIPMENT (net of accumulated depreciation and amortization)		29	36
OTHER ASSETS
Goodwill		242	242
Total assets		8,158	6,792
CURRENT LIABILITIES:
Credit from banks			149
Trade account payable		776	1,171
Deferred revenues		231	324
Other payables		1,031	441
Total current liabilities		2,038	2,085
LONG-TERM LIABILITIES:
Long term loans (net of current maturities)			373
Other Long Terms Liabilities		165	429
Accrued severance pay		155	206
Total long-term liabilities		320	1,008
Total liabilities		2,358	3,093
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 10 par value ("Ordinary Shares"); Authorized - 12,000,000 Ordinary Shares as of December 31, 2016 and 2015 Issued and outstanding: December 31, 2016 - 9,347,780 Ordinary shares December 31, 2015 - 9,320,725 Ordinary shares	[1]	21,904	21,837
Additional paid-in capital		22,016	22,006
Accumulated deficit		(38,120)	(40,144)
Total shareholders' Equity		5,800	3,699
Total liabilities and shareholders' Equity		$ 8,158	$ 6,792
[1]	Share data is retroactively adjusted to reflect 1 to 10 reverse stock split (refer to Note 15)

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) $ in Thousands		Dec. 31, 2016USD ($)shares	Dec. 31, 2016₪ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares
Statement of Financial Position [Abstract]
Trade accounts receivable, allowance for doubtful accounts | $		$ 61		$ 85
Ordinary shares, par value per share | ₪ / shares			₪ 10		₪ 10
Ordinary shares, shares authorized		12,000,000		12,000,000
Ordinary shares, shares issued	[1]	9,347,780		9,320,725
Ordinary shares, shares outstanding	[1]	9,347,780		9,320,725
[1]	Share data is retroactively adjusted to reflect 1 to 10 reverse stock split (refer to Note 15)

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Sale of products		$ 9,234	$ 8,085	$ 5,718
Services rendered		912	1,043	926
Total revenues		10,146	9,128	6,644
Cost of revenues:
Cost of products sold		3,790	3,072	2,514
Cost of services rendered		740	810	631
Total cost of revenues		4,530	3,882	3,145
Gross profit		5,616	5,246	3,499
Research and development		1,378	765	560
Marketing and selling		1,254	1,411	1,187
General and administrative		826	808	729
Operating Profit		2,158	2,262	1,023
Financial expenses - net		(134)	(144)	(365)
Profit before taxes on income		2,024	2,118	658
Taxes on income
Net Profit for the year		$ 2,024	$ 2,118	$ 658
Profit per share:
Basic earnings per share		$ 0.22	$ 0.25	$ 0.08
Diluted earnings per share		$ 0.21	$ 0.25	$ 0.08
Weighted average number of shares used in Computation of Profit per share
Basic (in thousands)	[1]	9,338,000	8,546,000	8,218,000
Diluted (in thousands)	[1]	9,593,000	8,568,000	8,352,000
[1]	Share data is retroactively adjusted as if the reverse stock split occurred at the beginning of the earliest Presented (refer to Note 15)

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) - USD ($) $ in Thousands		Share Capital [Member]		Additional paid-in Capital [Member]	Accumulated deficit [Member]	Total
BALANCE at Dec. 31, 2013		$ 18,554		$ 23,494	$ (42,920)	$ (872)
BALANCE, shares at Dec. 31, 2013	[1]	8,080,000
CHANGES DURING PERIOD
Profit for the year					658	658
Issuance of share capital and warrants (note 9a)		$ 1,221		(991)		230
Issuance of share capital and warrants, shares (note 9a)	[1],[2]	438,000
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		$ 19,775		22,874	(42,262)	387
BALANCE, shares at Dec. 31, 2014	[1]	8,518,000
CHANGES DURING PERIOD
Profit for the year					2,118	2,118
Issuance of share capital and warrants (note 9a)		$ 2,015		(867)		1,148
Issuance of share capital and warrants, shares (note 9a)	[1],[2]	784,000
Exercise of Share based compensation		$ 47		(37)		$ 10
Exercise of Share based compensation, shares		19,000	[1]			19,000
Revaluation of convertible loan and warrants
Share based compensation expenses				36		36
BALANCE at Dec. 31, 2015		$ 21,837		22,006	(40,144)	$ 3,699
BALANCE, shares at Dec. 31, 2015	[1]	9,321,000				9,320,725
CHANGES DURING PERIOD
Profit for the year					2,024	$ 2,024
Exercise of Share based compensation		$ 67		(43)		$ 24
Exercise of Share based compensation, shares		27,000	[1]			27,100
Revaluation of convertible loan and warrants
Share based compensation expenses				53		53
BALANCE at Dec. 31, 2016		$ 21,904		$ 22,016	$ (38,120)	$ 5,800
BALANCE, shares at Dec. 31, 2016	[1]	9,348,000				9,347,780
[1]	Share data is retroactively adjusted to reflect 1 to 10 reverse stock split (refer to Note 15)
[2]	Net of share issuance costs in the amount of $20.

STATEMENTS OF CHANGES IN SHARE6

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Share issuance costs	$ 40	$ 20	$ 20

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net profit	$ 2,024	$ 2,118	$ 658
Adjustments to reconcile net profit to Net cash provided by operating activities:
Depreciation and amortization	14	6	13
Revaluation of convertible loan and warrants			285
Liability for employee rights upon retirement	2		(5)
Stock based compensation	53	36	41
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable	247	(482)	112
Decrease in other accounts receivable	(208)	32	10
Increase (decrease) in trade accounts payable	(395)	534	(101)
Changes in Deferred income	(93)	(254)	540
Increase (decrease) in other accounts payable	590	(16)	(21)
Increase in inventories	(232)	(454)	(100)
Net cash provided by operating activities	2,002	1,520	1,432
Cash flows from investing activities:
Purchase of property and equipment	(7)	(15)	(9)
Long-term receivables	32	12	8
Investment in restricted deposit	(42)	(25)	(10)
Net cash used in investing activities	(17)	(28)	(11)
Cash flows from financing activities:
Issuance of share capital and warrants - net of issuance costs	24	1,158	230
Short-term credit from bank - net	(149)	(34)
Repayments of loan from Shareholder			(200)
Repayments of Long- terms loan	(264)	(170)	(354)
Repayments of Long- terms loan from banks and other	(373)	(208)	(182)
Net cash provided by (used in) financing activities	(762)	746	(506)
Net increase in cash and cash equivalents	1,223	2,238	915
Balance of cash and cash equivalents at Beginning of year	3,305	1,067	152
Balance of cash and cash equivalents at end of year	4,528	3,305	1,067
Non cash activities:
Reclassification of warrants to equity			330
Supplemental disclosure of cash flow Information - cash paid during the year for:
Interest paid - net	$ 20	$ 19	$ 39

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1 - 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 thousands in cash and undertook to repay the Company the sum of $675 thousands in satisfaction of all remaining debt owed by ScanMaster Ltd. to the Company, over a period of 10 years in equal quarterly installments starting January 1, 2011.Following this Loan agreement, in 2012 the loan was reduced in $450 thousands. 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 million dollars over a period of 10 years started January 1, 2011. During 2016 the Company repaid its bank loans.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - 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 (mainly 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, 2016 the Company has $148 thousands in consignment. (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, 2016 and 2015 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, 2016, 2015 and 2014 were $ 103 thousands, $ 109 thousands and $ 52 thousands, respectively. 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. Earning per share (“EPS”): Basic and diluted net income per share are presented in conformity with ASC 260 ("Earnings per Share") for all years presented. Basic net income per share have been computed using the weighted-average number of ordinary shares outstanding during the year. In computing diluted earnings (loss) per share, the potential dilutive effect of outstanding equity awards is taken into account using the treasury stock method. N. Stock-based compensation: The Company recognizes $ 53 thousands of compensation expenses in 2016 as a result of the application of ASC 718-10. According to "share base compensation" accounting, the Company recorded compensation for stock options granted to employees and directors over the vesting period of the options based on the difference, if any, between the exercise price of the options and the market price of the underlying shares at that date. 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, 2016 and 2015, 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 share, 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, 2016
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3 - Composition: December 31, 2 0 1 6 2 0 1 5 Raw materials 1,379 1,066 Work in process 105 177 Finished products 167 176 1,651 1,419 The balances are net of write-down of $643 thousands as of December 31, 2016 and 2015.

OTHER LONG-TERM RECEIVABLES AND

OTHER LONG-TERM RECEIVABLES AND INVESTMENT	12 Months Ended
	Dec. 31, 2016
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
OTHER LONG-TERM RECEIVABLES AND INVESTMENT	NOTE 4 - Composition: December 31, 2 0 1 6 2 0 1 5 Deposits on leased vehicle and other (see also Note 8b2) 8 11 Loan to non-affiliated companies (see Note 1) 27 56 35 67

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 - A. Comprised as follows: December 31, 2 0 1 6 2 0 1 5 Machinery and equipment 1,732 1,725 Leasehold improvements 24 24 Office furniture and equipment 44 44 1,800 1,793 Less - accumulated depreciation and amortization 1,771 1,757 Net book value 29 36 B . Depreciation and amortization expenses totaled $14 thousands, $6 thousands, and $13 thousands, in the years ended December 31, 2016, 2015 and 2014, respectively.

ACCRUED SEVERANCE PAY, NET

ACCRUED SEVERANCE PAY, NET	12 Months Ended
	Dec. 31, 2016
Postemployment Benefits [Abstract]
ACCRUED SEVERANCE PAY, NET	NOTE 6 - 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, 2016
Debt Disclosure [Abstract]
LONG-TERM LOANS	NOTE 7 - A. Composed as follows: December 31, 2 0 1 6 2 0 1 5 Loans from banks - 373 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 $2.4M of debt from the Company and its subsidiary ScanMaster Systems (IRT) Ltd. ("ScanMaster Ltd."), and have agreed to the repayment by the Company of $1 million over 5 years and a further $600 thousands over 10 years. In May 2010 the Company signed agreements with its major shareholders to loan US $100 thousands. The loan is repayable upon fulfillment of certain conditions (as further elaborated in the agreement) aimed to ensure the Company achieved financial stability prior to repayment. Further, the Company's major shareholders agreed to delay payment of the first US $100 thousands of their salary until July 2011, at which time the company shall repay them in three equal monthly installments. In September 2016, the Company repay all its banks loans. In May 2010 the Company signed loan agreement with Mivtach (former Shareholder) of approximately $850 thousands to which the Company will repay the loan over five years in equal quarterly installments, plus interest at the US Dollar annual LIBOR rate. The Company pay the last payment in October 2015. B. The liabilities (net of current maturities) mature in the following years after the balance sheet dates: December 31, 2 0 1 6 2 0 1 5 2016 - 149 2017 - 149 2018 and thereafter - 75 - 373

OTHER LONG TERMS LIABILITIES

OTHER LONG TERMS LIABILITIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
OTHER LONG-TERMS LIABILITIES	NOTE 8 - 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% are payable on sales of products developed from a project so funded, up to 100% of the amount of the grant received by the Company (dollar linked); as from January 1, 2001 - with the addition of an annual interest rate based on Libor. (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% of the increase in export sales, up to the amount of the dollar-linked grant received. No royalties were paid in the reported years to the Government of Israel. 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 thousands. On November 21, 2007, the Company sent a letter to the Fund in which it stated that the Fund had not requested any of these royalties for many years despite the Company's written request to clarify the issue. In its letter the Company stated that a material amount of the royalties could no longer be claimed due to the operation of the statute of limitations and that in any event the Fund may be estopped from making at least part of the claims as a result of its non-response to the Company's inquiry. On December 18, 2007, the Company met with representatives of the Fund to discuss the issue. The Company have yet to receive a response to the meeting. The Company recorded an allowance of $ 90 thousands on acount of this claim. 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, 2016 is approximately $ 215 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 $9.4 thousands (36 thousands NIS) per month. 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 2021. To secure the amounts due to the lessor, the Company has deposited a total of $ 28 thousands. Minimum lease commitments of the Company and the subsidiaries under the above leases, at rates in effect as of December 31, 2016, are as follows: $ in thousands Year ending December 31: 2017 105 2018 95 2019 95 295 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 $87 thousands, $86 thousands, and $92 thousands in the years ended December 31, 2016, 2015 and 2014, respectively. (2) The Company leases motor vehicles under long-term operating lease agreements. The lease agreements expire on various dates ending in 2016 - 2018 (with prior notice of cancellation clauses). Minimum lease commitments of the Company under the above leases, at rates in effect on December 31, 2016, 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 $ 8 thousand. The deposits are unlinked and presented among other long-term receivables. Lease expenses in 2016, 2015 and 2014, amounted to $94 thousands, $102 thousands and $98 thousands respectively. C. Guarantees As of December 31, 2016, the Company gave $83 thousands guarantees to its customers.

SHAREHOLDER' EQUITY

SHAREHOLDER' EQUITY	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [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 2012, The Company issued Mr. Gross some financial instruments in consideration of $760 thousands (net of $40 thousands issuance expenses) which include shares, warrants and a convertible note. The Company issued 526,316 ordinary shares for $0. 95 per share. The Company also issued warrants ("The first warrants") to purchase 210,526 of the Company's ordinary shares at an exercise price per share of $0.95 amounting $200 thousands, vested in fully upon issuance, exercisable through February 2015. The Convertible Note Agreement is on the principal amount of $300 thousands. The maturity date of the Note is, May 2013, after the maturity date the conversion option expires, and the loan is supposed to be returned in 12 monthly installments. (3) 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 $0.95 per share. In case that Mr. Gross would convert more than 50% of the aggregated amount of the principal amount of the convertible note and the first warrants, the Company would issue Mr. gross warrants ("the second warrants"). The principal amount of the second warrants would be in proportion to percentage converted/exercised from the principal amount of the convertible note and the first warrants. The second warrants could amount up to $1 miilion of the Company's ordinary shares at an exercise price per share of $1.7 or $2 depends on The company's revenue on the year ended 2014. The second warrants would be vested in fully upon issuance, exercisable through February 2015. In May 2013 Mr. Gross convert the convertible note to Company's shares and the Company reduces the Conversion rate to $0.85 and postponed the exercisable date of the second warrants to December 2015. In August 2014 the Company set the exercise price of the second warrants to $1.7 accordingly, the Company reclassified the warrants to Equity. On December 31,2015 Mr. Gross exercise the second warrants for $1.7 per share (4) In July 2014 The Company issued shares 416,667 to SMD Advanced Technologies Ltd. (“SMD”) controlled by Mr. Yaacov Kotlicki, and warrants to purchase another 183,334 shares for a price of $147 thousand valid until July 2017. During December 2015, SMD exercise its warrants. B. Share option plans: (1) The plans: (a) 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 200,000 ordinary shares are available to be awarded to employees, directors or consultants of the Company or any of its subsidiaries. The Board of the Company increase the aggregate number of option to 450,000 for 2006 plan. Under the 2006 plan, options usually exercisable over a period up to ten years following the date of grant, if not exercised earlier, or 6 months after termination of the employment, will generally vest as to 25-33% commencing the beginning of the second year after the grant and as to an additional 25-33% in each of the remaining years thereafter, assuming continuous employment with the Company through such periods. The 2006 Plan is valid for ten years and will expire in March, 2016, except for options outstanding on that date. (b) In August 2016, the Board of Directors of the Company adopted the Employee Share Option Plan (2016) (hereafter - The 2016 Plan). Under the 2016 plan, options to purchase an aggregate of 250,000 ordinary shares are available to be awarded to employees, directors or consultants of the Company or any of its subsidiaries Under the 2016 plan, options usually exercisable over a period up to ten years following the date of grant, if not exercised earlier, or 3 months after termination of the employment, will generally vest as to 25-33% commencing the beginning of the second year after the grant and as to an additional 25-33% in each of the remaining years thereafter, assuming continuous employment with the Company through such periods. All of the outstanding options from the 2006 and 2016 plan are to expire no later than 10 years following the date of grant. During 2015 and 2016, 19,000 and 25,389 options were exercised. The 2006 and 2016 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, 2016, 2015 and 2014, and changes during the years ended on those dates, is presented below: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Weighted Weighted Weighted average average average exercise exercise exercise Number price Number price Number price Options outstanding at beginning of year 419,042 1.1 422,761 1 480,444 0.4 Changes during the year: Granted (1) 52,000 3 53,500 1.7 114,000 0.8 Exercised (27,100 ) 1 (19,000 ) 0.5 - - Forfeited (11,667 ) 1.8 (38,219 ) 1.1 (171,683 ) 9.2 Options outstanding at end of year 432,275 1.3 419,042 1.1 422,761 1 Options exercisable at year end 328,362 1 317,042 1 316,958 1.1 Weighted average fair value of options granted during the year (2) $ 1.3 $ 1.2 $ 0.4 (1) Options granted in 2016, 2015 and 2014 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 2016 ,2015 and 2014, with the following weighted average assumptions: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Dividend yield 0 % 0 % 0 % Expected volatility 80 % 81 % 64 % Risk-free interest rate 1.93 % 1.72 % 1.5 % Expected life - in years 4 6.5 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, 2016: Options outstanding Options exercisable Weighted Weighted Number average Number average outstanding at remaining exercisable at remaining Exercise December 31, contractual December 31, contractual prices 2016 life 2016 life $ Years Years 0.5-3.2 413,275 0.03-9.82 309,362 0.03-8.88 4-4.6 12,750 1.28-2.12 12,750 1.28-2.12 4.9 2,500 2.01 2,500 2.01 7.5-7.8 3,750 0.12-1.29 3,750 0.15-1.29 432,275 328,362 (c) As of December 31, 2016 the aggregate intrinsic value for the option exercisable was $329 thousands with a weighted average remaining contractual life of 4.53 years. The unrecognized compensation expenses calculated under the fair value method for stock options expected to vest as of December 31, 2016 is approximately $ 95 thousands and is expected to be recognized over a weighted average period of 3 year.

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 10 - 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 25% and in US 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, 2 0 1 6 2 0 1 5 Net loss carry-forward 9,593 10,004 Other additions for tax Purposes 290 183 Net deferred tax asset before valuation allowance 9,883 10,187 Valuation allowance (9,883 ) (10,187 ) 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, 2 0 1 6 2 0 1 5 United States 608 (461 ) Israel 1,416 2,579 2,024 2,118 C. Tax Loss Carry-Forwards: Net operating loss carry-forwards as of December 31, 2016 are as follows: Israel 37,510 United States * 610 38,120 Net operating loss carry-forwards as of December 31, 2015 are as follows: Israel 38,926 United States * 1,218 40,144 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, 2016
Restricted Investments Note [Abstract]
LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES	NOTE 11 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, 2016, the bank deposits amount to $83 thousands;

SUPPLEMENTARY INFORMATION

SUPPLEMENTARY INFORMATION	12 Months Ended
	Dec. 31, 2016
SUPPLEMENTARY INFORMATION [Abstract]
SUPPLEMENTARY INFORMATION	NOTE 12 - SUPPLEMENTARY INFORMATION: Composition: Year ended December 31, 2 0 1 6 2 0 1 5 A. Accounts receivable (1) Trade - allowance for doubtful accounts: Balance at beginning of year 85 60 Charged to statement of operations (24 ) 25 Balance at end of year 61 85 (2) Other receivables: Prepaid expenses 31 12 Israeli Government departments and agencies 170 57 Other 85 9 286 78 December 31, 2 0 1 6 2 0 1 5 B. Other payable: Employees and employee institutions 392 75 Israeli Government departments and agencies 108 112 Provision for vacation and recreation pay 49 76 Provision for product warranty 138 113 Liability for commissions to agents 291 21 Accrued expenses and sundry 53 44 1,031 441 C. Credit from banks: % interest rate as of December 31, December 31, 2 0 1 6 2 0 1 6 2 0 1 5 Short-term loans from banks: Linked to the Dollar (See Note 7(a)) 2.5 - 149 D. Cost of revenues: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Industrial operations: Materials consumed 2,712 2,263 1,635 Payroll and related expenses 518 504 479 Subcontracted work 347 306 278 Depreciation and amortization - 1 2 Other production expenses 953 808 751 4,530 3,882 3,145 E. Financial expenses: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Income: Exchange differences - - 27 Other 6 2 2 6 2 29 Expenses: Interest In respect of liability to related parties - - 11 In respect of credit from banks 20 19 28 Exchange differences 24 60 - Revaluation of convertible loan and warrants - - 285 Other 96 67 70 140 146 394 (134 ) (144 ) (365 )

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 13 - Composition: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Managements fees - included in General and administrative 402 430 343 Assets – Due from related party 81 - -

GEOGRAPHICAL SEGMENTS

GEOGRAPHICAL SEGMENTS	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
GEOGRAPHICAL SEGMENTS	NOTE 14 - 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 6 2 0 1 5 2 0 1 4 North America (mainly the United States) 2,900 2,646 1,720 Germany 750 424 442 Italy 431 403 399 Turkey 127 200 241 UK 133 - 221 Russia - 230 146 Other European countries 1,626 959 1,374 Thailand 600 41 10 China 2,638 2,824 1,420 India 213 598 80 Japan 68 437 200 Israel 383 165 210 Other Far Eastern countries 277 201 181 10,146 9,128 6,644 (2) The Company’s long-lived assets by geographic areas are as follows: Year ended December 31, 2 0 1 6 2 0 1 5 Israel 446 526 U.S.A. - 12 446 538

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 15 - In January 2017, the Company's board of directors approved a 1-for-10 reverse stock split of the outstanding common stock and stock options of the Company. The reverse stock split became effective on March 24, 2017. Accordingly, (i) every ten shares of common stock have been combined into one share of common stock, (ii) the number of shares of common stock underlying each stock option have been proportionately decreased on a 1-for-10 basis, and the exercise price of each such outstanding stock option has been proportionately increased on a 1-for-10 basis. All option numbers, share numbers, share price and exercise prices have been adjusted within these consolidated financial statements, on a retroactive basis, to reflect this 1-for-10 reverse stock split

SIGNIFICANT ACCOUNTING POLICI23

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
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 (mainly 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, 2016 the Company has $148 thousands in consignment. (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, 2016 and 2015 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, 2016, 2015 and 2014 were $ 103 thousands, $ 109 thousands and $ 52 thousands, respectively.
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.
Earning per share ("EPS")	M. Earning per share (“EPS”): Basic and diluted net income per share are presented in conformity with ASC 260 ("Earnings per Share") for all years presented. Basic net income per share have been computed using the weighted-average number of ordinary shares outstanding during the year. In computing diluted earnings (loss) per share, the potential dilutive effect of outstanding equity awards is taken into account using the treasury stock method.
Stock-based compensation	N. Stock-based compensation: The Company recognizes $ 53 thousands of compensation expenses in 2016 as a result of the application of ASC 718-10. According to "share base compensation" accounting, the Company recorded compensation for stock options granted to employees and directors over the vesting period of the options based on the difference, if any, between the exercise price of the options and the market price of the underlying shares at that date. 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, 2016 and 2015, 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 share, 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 POLICI24

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Annual Depreciation Rates	% Machinery and equipment 10-33 (mainly 33%) Office furniture and equipment 6-20 Vehicles 15-20

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	December 31, 2 0 1 6 2 0 1 5 Raw materials 1,379 1,066 Work in process 105 177 Finished products 167 176 1,651 1,419

OTHER LONG-TERM RECEIVABLES A26

OTHER LONG-TERM RECEIVABLES AND INVESTMENT (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
Schedule of Other Long-Term Receivables and Investment	December 31, 2 0 1 6 2 0 1 5 Deposits on leased vehicle and other (see also Note 8b2) 8 11 Loan to non-affiliated companies (see Note 1) 27 56 35 67

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	December 31, 2 0 1 6 2 0 1 5 Machinery and equipment 1,732 1,725 Leasehold improvements 24 24 Office furniture and equipment 44 44 1,800 1,793 Less - accumulated depreciation and amortization 1,771 1,757 Net book value 29 36

LONG TERM LOANS (Tables)

LONG TERM LOANS (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Loans	December 31, 2 0 1 6 2 0 1 5 Loans from banks - 373
Schedule of Future Maturities	December 31, 2 0 1 6 2 0 1 5 2016 - 149 2017 - 149 2018 and thereafter - 75 - 373

OTHER LONG-TERMS LIABILITIES (T

OTHER LONG-TERMS LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Premises [Member]
Lease Type [Line Items]
Schedule of Minimum Lease Commitments	$ in thousands Year ending December 31: 2017 105 2018 95 2019 95 295
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, 2016
Stockholders' Equity Note [Abstract]
Schedule of Stock Option Activity	Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Weighted Weighted Weighted average average average exercise exercise exercise Number price Number price Number price Options outstanding at beginning of year 419,042 1.1 422,761 1 480,444 0.4 Changes during the year: Granted (1) 52,000 3 53,500 1.7 114,000 0.8 Exercised (27,100 ) 1 (19,000 ) 0.5 - - Forfeited (11,667 ) 1.8 (38,219 ) 1.1 (171,683 ) 9.2 Options outstanding at end of year 432,275 1.3 419,042 1.1 422,761 1 Options exercisable at year end 328,362 1 317,042 1 316,958 1.1 Weighted average fair value of options granted during the year (2) $ 1.3 $ 1.2 $ 0.4 (1) Options granted in 2016, 2015 and 2014 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 2016 ,2015 and 2014, with the following weighted average assumptions:
Schedule of Fair Value of Options Granted	Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Dividend yield 0 % 0 % 0 % Expected volatility 80 % 81 % 64 % Risk-free interest rate 1.93 % 1.72 % 1.5 % Expected life - in years 4 6.5 4
Schedule of Information about Options Granted	Options outstanding Options exercisable Weighted Weighted Number average Number average outstanding at remaining exercisable at remaining Exercise December 31, contractual December 31, contractual prices 2016 life 2016 life $ Years Years 0.5-3.2 413,275 0.03-9.82 309,362 0.03-8.88 4-4.6 12,750 1.28-2.12 12,750 1.28-2.12 4.9 2,500 2.01 2,500 2.01 7.5-7.8 3,750 0.12-1.29 3,750 0.15-1.29 432,275 328,362

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets	Year ended December 31, 2 0 1 6 2 0 1 5 Net loss carry-forward 9,593 10,004 Other additions for tax Purposes 290 183 Net deferred tax asset before valuation allowance 9,883 10,187 Valuation allowance (9,883 ) (10,187 ) Net deferred tax asset - -
Schedule of Net Profit (Loss)	Year ended December 31, 2 0 1 6 2 0 1 5 United States 608 (461 ) Israel 1,416 2,579 2,024 2,118
Schedule of Net Operating Loss Carry-Forwards	Net operating loss carry-forwards as of December 31, 2016 are as follows: Israel 37,510 United States * 610 38,120 Net operating loss carry-forwards as of December 31, 2015 are as follows: Israel 38,926 United States * 1,218 40,144 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.

SUPPLEMENTARY INFORMATION (Tabl

SUPPLEMENTARY INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
SUPPLEMENTARY INFORMATION [Abstract]
Schedule of Accounts Receivable	Year ended December 31, 2 0 1 6 2 0 1 5 A. Accounts receivable (1) Trade - allowance for doubtful accounts: Balance at beginning of year 85 60 Charged to statement of operations (24 ) 25 Balance at end of year 61 85 (2) Other receivables: Prepaid expenses 31 12 Israeli Government departments and agencies 170 57 Other 85 9 286 78
Schedule of Accounts Payable and Other Accruals	December 31, 2 0 1 6 2 0 1 5 B. Other payable: Employees and employee institutions 392 75 Israeli Government departments and agencies 108 112 Provision for vacation and recreation pay 49 76 Provision for product warranty 138 113 Liability for commissions to agents 291 21 Accrued expenses and sundry 53 44 1,031 441
Schedule of Credit from Banks	C. Credit from banks: % interest rate as of December 31, December 31, 2 0 1 6 2 0 1 6 2 0 1 5 Short-term loans from banks: Linked to the Dollar (See Note 7(a)) 2.5 - 149
Schedule of Cost of Revenues	D. Cost of revenues: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Industrial operations: Materials consumed 2,712 2,263 1,635 Payroll and related expenses 518 504 479 Subcontracted work 347 306 278 Depreciation and amortization - 1 2 Other production expenses 953 808 751 4,530 3,882 3,145
Schedule of Financing Expenses, Net	E. Financial expenses: Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Income: Exchange differences - - 27 Other 6 2 2 6 2 29 Expenses: Interest In respect of liability to related parties - - 11 In respect of credit from banks 20 19 28 Exchange differences 24 60 - Revaluation of convertible loan and warrants - - 285 Other 96 67 70 140 146 394 (134 ) (144 ) (365 )

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions and Balances	Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Managements fees - included in General and administrative 402 430 343 Assets – Due from related party 81 - -

GEOGRAPHICAL SEGMENTS (Tables)

GEOGRAPHICAL SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Areas	Year ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 North America (mainly the United States) 2,900 2,646 1,720 Germany 750 424 442 Italy 431 403 399 Turkey 127 200 241 UK 133 - 221 Russia - 230 146 Other European countries 1,626 959 1,374 Thailand 600 41 10 China 2,638 2,824 1,420 India 213 598 80 Japan 68 437 200 Israel 383 165 210 Other Far Eastern countries 277 201 181 10,146 9,128 6,644
Schedule of Long-Lived Assets by Geographic Areas	Year ended December 31, 2 0 1 6 2 0 1 5 Israel 446 526 U.S.A. - 12 446 538

GENERAL (Details)

GENERAL (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2010	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2012	Jan. 01, 2011
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
Banks [Member]
Sale of subsidiary, amount of debt extinguished	$ 2,400
Debt instrument, term		10 years

SIGNIFICANT ACCOUNTING POLICI36

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock based compensation	$ 53	$ 36	$ 41
Revenue recognition:
Consignment	148
Advertising expenses:
Advertising expenses	$ 103	$ 109	$ 52
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	61,250	278,401	0

SIGNIFICANT ACCOUNTING POLICI37

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Annual Depreciation Rates) (Details)	Dec. 31, 2016
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, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,379	$ 1,066
Work in process	105	177
Finished products	167	176
Total inventories	1,651	1,419
Inventory write-down	$ 643	$ 643

OTHER LONG-TERM RECEIVABLES A39

OTHER LONG-TERM RECEIVABLES AND INVESTMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
OTHER LONG-TERM RECEIVABLES AND INVESTMENT [Abstract]
Deposits on leased vehicle and other (see also Note 8b2)	$ 8	$ 11
Loan to non-affiliated companies (see Note 1)	27	56
Other long-term receivables and investment	$ 35	$ 67

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,800	$ 1,793
Less - accumulated depreciation and amortization	1,771	1,757
Net book value	29	36
Depreciation and amortization expenses	14	6	$ 13
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,732	1,725
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, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Loans from banks		$ 373

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
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
Debt instrument, term			10 years
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, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
2,016		$ 149
2,017		149
2018 and thereafter		75
Total long-term debt		$ 373

OTHER LONG TERMS LIABILITIES (N

OTHER LONG TERMS LIABILITIES (Narrative) (Details) ₪ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016ILS (₪)	Nov. 07, 2007USD ($)
Loss Contingencies [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	$ 215,000
Minimum [Member]
Loss Contingencies [Line Items]
Royalty percentage	3.00%
Maximum [Member]
Loss Contingencies [Line Items]
Royalty percentage	5.00%
Chief Scientist [Member]
Loss Contingencies [Line Items]
Periodic installment of debt	$ 9,400,000
Chief Scientist [Member] | ILS [Member]
Loss Contingencies [Line Items]
Periodic installment of debt | ₪		₪ 36

OTHER LONG TERMS LIABILITIES 45

OTHER LONG TERMS LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Lease Type [Line Items]
Lease deposits	$ 8	$ 11
Guarantees for lease	83
Premises [Member]
Lease Type [Line Items]
Lease deposits	28
Rent expenses	$ 87	86	$ 92
Lease expiration date	Jan. 1, 2021
Vehicles [Member]
Lease Type [Line Items]
Lease deposits	$ 8
Rent expenses	$ 94	$ 102	$ 98
Lease expiration date, minimum	Jan. 1, 2016
Lease expiration date, maximum	Jan. 1, 2018

OTHER LONG TERMS LIABILITIES (S

OTHER LONG TERMS LIABILITIES (Schedule of Minimum Lease Commitments) (Details) $ in Thousands	Dec. 31, 2016USD ($)
Premises [Member]
Lease Type [Line Items]
2,017	$ 105
2,018	95
2,019	95
Total minimum lease commitments	295
Vehicles [Member]
Lease Type [Line Items]
2,017	68
2,018	36
2,019	9
Total minimum lease commitments	$ 113

SHAREHOLDER' EQUITY (Narrative)

SHAREHOLDER' EQUITY (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2014USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2012USD ($)shares	Dec. 31, 2016₪ / shares	Aug. 31, 2014₪ / shares	Dec. 31, 2012₪ / shares
Stockholders' Equity Note [Abstract]
Shares issued | shares	416,667				526,316
Shares issued, price per share | ₪ / shares								₪ 0.95
Share issuance costs		$ 40	$ 20	$ 20
Net proceeds from sale of stock	$ 147	24	$ 1,158	$ 230	$ 760
Issuance of warrants to purchase common stock | shares	183,334				210,526
Exercise price of warrant issued | ₪ / shares						₪ 1.70	₪ 1.70	₪ 0.95
Warrants, minimum exercise price | ₪ / shares						1.70
Warrants, maximum exercise price | ₪ / shares						₪ 2
Warrants, maximum potential proceeds		1			$ 200
Exercisable options, intrinsic value		$ 329
Exercisable options, weighted-average remaining contractual term		4 years 6 months 11 days
Unrecognized compensation cost		$ 95
Unrecognized compensation cost, period for recognition		3 years

SHAREHOLDER' EQUITY (Narrativ48

SHAREHOLDER' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2013	Mar. 31, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised	27,100	19,000
2006 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	450,000					200,000
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%
2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	250,000
Plan term	10 years
2016 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%
2016 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%
2016 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%
2016 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%
Mr. Gross [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt conversion, price per share				$ 0.095	$ 0.85
Debt conversion, percentage to trigger additional warrants				50.00%
Debt instrument, face amount				$ 300
Debt instrument, maturity date				May 1, 2013

SHAREHOLDER' EQUITY (Schedule o

SHAREHOLDER' EQUITY (Schedule of Stock Option Activity) (Details) - $ / shares		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number
Options outstanding at beginning of year		419,042	422,761	480,444
Granted	[1]	52,000	53,500	114,000
Exercised		(27,100)	(19,000)
Forfeited		(11,667)	(38,219)	(171,683)
Options outstanding at end of year		432,275	419,042	422,761
Options exercisable at year end		328,362	317,042	316,958
Weighted average fair value of options granted during the year	[2]	$ 1.30	$ 1.20	$ 0.40
Weighted average exercise price
Options outstanding at beginning of year		1.10	1	0.40
Granted	[1]	3	1.70	0.80
Exercised		1	0.50
Forfeited		1.80	1.10	9.20
Options outstanding at end of year		1.30	1.10	1
Options exercisable at year end		$ 1	$ 1	$ 1.10
[1]	Options granted in 2016, 2015 and 2014 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 2016 and 2015, with the following weighted average assumptions:

SHAREHOLDER' EQUITY (Schedule50

SHAREHOLDER' EQUITY (Schedule of Fair Value of Options Granted) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	80.00%	81.00%	64.00%
Risk-free interest rate	1.93%	1.72%	1.50%
Expected life	4 years	6 years 6 months	4 years

SHAREHOLDER' EQUITY (Schedule51

SHAREHOLDER' EQUITY (Schedule of Information about Options Granted) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	432,275	419,042	422,761	480,444
Options exercisable	328,362	317,042	316,958
0.5-3.2 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	413,275
Options exercisable	309,362
Exercise price, minimum	$ 0.50
Exercise price, maximum	$ 3.20
0.5-3.2 [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
0.5-3.2 [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 26 days
Options exercisable, weighted average remaining contractual life	8 years 10 months 17 days
4-4.6 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	12,750
Options exercisable	12,750
Exercise price, minimum	$ 4
Exercise price, maximum	$ 4.60
4-4.6 [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
4-4.6 [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
4.9 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	2,500
Options exercisable	2,500
Exercise price, minimum	$ 4.90
4.9 [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
7.5-7.8 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding	3,750
Options exercisable	3,750
Exercise price, minimum	$ 7.50
Exercise price, maximum	$ 7.80
7.5-7.8 [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
7.5-7.8 [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 15 days
Options exercisable, weighted average remaining contractual life	1 year 3 months 15 days

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details)	12 Months Ended
	Dec. 31, 2016
Israel [Member]
Income Tax Examination [Line Items]
Corporate tax rate	25.00%
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, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net loss carry-forward	$ 9,593	$ 10,004
Other additions for tax Purposes	290	183
Net deferred tax asset before valuation allowance	9,883	10,187
Valuation allowance	(9,883)	(10,187)
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, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
United States	$ 608	$ (461)
Israel	1,416	2,579
Profit before taxes on income	$ 2,024	$ 2,118	$ 658

TAXES ON INCOME (Schedule of 55

TAXES ON INCOME (Schedule of Net Operating Loss Carry-Forwards) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Israel		$ 37,510	$ 38,926
United States	[1]	610	1,218
Tax Loss Carry-Forwards		$ 38,120	$ 40,144
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 PLEDGE56

LIABILITIES SECURED BY PLEDGES AND RESTRICTION PLACED IN RESPECT OF LIABILITIES (Details) $ in Thousands	Dec. 31, 2016USD ($)
Restricted Investments Note [Abstract]
Bank deposits	$ 83

SUPPLEMENTARY INFORMATION (Sche

SUPPLEMENTARY INFORMATION (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Trade - allowance for doubtful accounts:
Balance at beginning of year	$ 85	$ 60
Charged to statement of operations	(24)	25
Balance at end of year	61	85
Other receivables:
Prepaid expenses	31	12
Israeli Government departments and agencies	170	57
Other	85	9
Total other assets	$ 286	$ 78

SUPPLEMENTARY INFORMATION (Sc58

SUPPLEMENTARY INFORMATION (Schedule of Accounts Payable and Other Accruals) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other payable:
Employees and employee institutions	$ 392	$ 75
Israeli Government departments and agencies	108	112
Provision for vacation and recreation pay	49	76
Provision for product warranty	138	113
Liability for commissions to agents	291	21
Accrued expenses and sundry	53	44
Total accounts payable and accruals - other	$ 1,031	$ 441

SUPPLEMENTARY INFORMATION (Sc59

SUPPLEMENTARY INFORMATION (Schedule of Credit from Banks) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Credit from banks		$ 149
Linked To Dollar [Member] | Banks [Member]
Debt Instrument [Line Items]
% interest rate as of December 31, 2016	2.50%

SUPPLEMENTARY INFORMATION (Sc60

SUPPLEMENTARY INFORMATION (Schedule of Cost of Revenues) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Industrial operations:
Materials consumed	$ 2,712	$ 2,263	$ 1,635
Payroll and related expenses	518	504	479
Subcontracted work	347	306	278
Depreciation and amortization		1	2
Other production expenses	953	808	751
Total cost of revenues	$ 4,530	$ 3,882	$ 3,145

SUPPLEMENTARY INFORMATION (Sc61

SUPPLEMENTARY INFORMATION (Schedule of Financial Expenses, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income:
Exchange differences			$ 27
Other	6	2	2
Total Income	6	2	29
Expenses:
Interest - In respect of liability to related parties			11
Interest - In respect of credit from banks	20	19	28
Exchange differences	24	60
Revaluation of convertible loan and warrants			285
Other	96	67	70
Total Expenses	140	146	394
Financial expenses, net	$ (134)	$ (144)	$ (365)

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Management fees - included in General and administrative	$ 402	$ 430	$ 343
Assets - Due from related party	$ 81

GEOGRAPHICAL SEGMENTS (Schedule

GEOGRAPHICAL SEGMENTS (Schedule of Revenues by Geographic Areas) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenues	$ 10,146	$ 9,128	$ 6,644
North America (mainly the United States) [Member]
Segment Reporting Information [Line Items]
Revenues	2,900	2,646	1,720
Germany [Member]
Segment Reporting Information [Line Items]
Revenues	750	424	442
Italy [Member]
Segment Reporting Information [Line Items]
Revenues	431	403	399
Turkey [Member]
Segment Reporting Information [Line Items]
Revenues	127	200	241
UK [Member]
Segment Reporting Information [Line Items]
Revenues	133		221
Russia [Member]
Segment Reporting Information [Line Items]
Revenues		230	146
Other European Countries [Member]
Segment Reporting Information [Line Items]
Revenues	1,626	959	1,374
Thailand [Member]
Segment Reporting Information [Line Items]
Revenues	600	41	10
China [Member]
Segment Reporting Information [Line Items]
Revenues	2,638	2,824	1,420
India [Member]
Segment Reporting Information [Line Items]
Revenues	213	598	80
Japan [Member]
Segment Reporting Information [Line Items]
Revenues	68	437	200
Israel [Member]
Segment Reporting Information [Line Items]
Revenues	383	165	210
Other Far Eastern Countries [Member]
Segment Reporting Information [Line Items]
Revenues	$ 277	$ 201	$ 181

GEOGRAPHICAL SEGMENTS (Schedu64

GEOGRAPHICAL SEGMENTS (Schedule of Long-Lived Assets by Geographic Areas) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Long-lived assets	$ 446	$ 538
Israel [Member]
Segment Reporting Information [Line Items]
Long-lived assets	446	526
North America (mainly the United States) [Member]
Segment Reporting Information [Line Items]
Long-lived assets		$ 12

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	1 Months Ended
	Jan. 31, 2017
Subsequent Event [Member]
Stock split	1-for-10