Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Entity Registrant Name | 'RADCOM LTD |
Entity Central Index Key | '0001016838 |
Current Fiscal Year End Date | '--12-31 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 7,947,340 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $1,185 | $1,474 |
Restricted Cash | 1,505 | 1,452 |
Trade receivables (net of allowances for doubtful accounts $20 and $ 415 as of December 31, 2013 and 2012 respectively) | 5,723 | 3,292 |
Inventories | 4,352 | 6,736 |
Other current assets | 3,092 | 3,555 |
Total current assets | 15,857 | 16,509 |
SEVERANCE PAY FUND | 3,535 | 3,090 |
PROPERTY AND EQUIPMENT, NET | 253 | 268 |
Total assets | 19,645 | 19,867 |
CURRENT LIABILITIES: | ' | ' |
Short term bank credit, net | 629 | 1,058 |
Short term loans | ' | 1,527 |
Trade payables | 2,257 | 1,920 |
Employees and payroll accruals | 2,109 | 1,996 |
Deferred revenues and advances from customers | 1,305 | 2,970 |
Other accounts payable and accrued expenses | 1,795 | 1,844 |
Total current liabilities | 8,095 | 11,315 |
LONG-TERM LIABILITIES: | ' | ' |
Deferred revenues | 107 | 37 |
Accrued severance pay | 3,944 | 3,518 |
Total long-term liabilities | 4,051 | 3,555 |
Total liabilities | 12,146 | 14,870 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Share capital: Ordinary Shares of NIS 0.20 par value: 9,997,670 shares authorized at December 31, 2013 and 2012; 7,978,183 and 6,480,623 shares issued at December 31, 2013 and 2012, respectively; 7,947,340 and 6,449,780 shares outstanding at December 31, 2013 and 2012, respectively | 335 | 251 |
Additional paid-in capital | 65,791 | 61,470 |
Accumulated other comprehensive loss | -805 | -322 |
Accumulated deficit | -57,822 | -56,402 |
Total shareholders' equity | 7,499 | 4,997 |
Total liabilities and shareholders' equity | $19,645 | $19,867 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Trade receivables, allowances for doubtful accounts | $20 | $415 |
Ordinary Shares, par value per share | $0.20 | $0.20 |
Ordinary Shares, shares authorized | 9,997,670 | 9,997,670 |
Ordinary Shares, shares issued | 7,978,183 | 6,480,623 |
Ordinary Shares, shares outstanding | 7,947,340 | 6,449,780 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $17,917 | $12,480 | $19,199 |
Services | 2,565 | 3,306 | 2,788 |
Total revenues | 20,482 | 15,786 | 21,987 |
Cost of revenues : | ' | ' | ' |
Products | 7,540 | 5,765 | 6,074 |
Services | 350 | 417 | 606 |
Total cost of revenues | 7,890 | 6,182 | 6,680 |
Gross profit | 12,592 | 9,604 | 15,307 |
Operating expenses: | ' | ' | ' |
Research and development | 5,615 | 6,102 | 5,866 |
Less - royalty-bearing participation | 1,537 | 1,567 | 1,235 |
Research and development, net | 4,078 | 4,535 | 4,631 |
Selling and marketing, net | 7,592 | 8,515 | 9,962 |
General and administrative | 2,051 | 2,107 | 2,234 |
Total operating expenses | 13,721 | 15,157 | 16,827 |
Operating loss | -1,129 | -5,553 | -1,520 |
Financial expenses, net | -291 | -314 | -384 |
Loss before taxes on income | -1,420 | -5,867 | -1,904 |
Taxes on Income | ' | -120 | ' |
Net loss | ($1,420) | ($5,987) | ($1,904) |
Net loss per share: | ' | ' | ' |
Basic and diluted net loss per Ordinary Share | ($0.19) | ($0.93) | ($0.30) |
CONSOLIDATED_STATMENTS_OF_COMP
CONSOLIDATED STATMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' |
Net loss | ($1,420) | ($5,987) | ($1,904) |
Other comprehensive loss: | ' | ' | ' |
Foreign currency translation adjustment | -483 | -125 | -197 |
Other comprehensive loss | -483 | -125 | -197 |
Comprehensive loss | ($1,903) | ($6,112) | ($2,101) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Share capital [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive loss [Member] | Accumulated deficit [Member] |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2010 | $10,903 | $234 | $59,180 | ' | ($48,511) |
Balance, shares at Dec. 31, 2010 | ' | 6,145,024 | ' | ' | ' |
Share-based compensation | 823 | ' | 823 | ' | ' |
Exercise of options | 144 | 5 | 139 | ' | ' |
Exercise of options, shares | ' | 76,143 | ' | ' | ' |
Exercise of warrants | 623 | 11 | 612 | ' | ' |
Exercise of warrants, shares | ' | 194,531 | ' | ' | ' |
Net loss | -1,904 | ' | ' | ' | -1,904 |
Other comprehensive loss | -197 | ' | ' | -197 | ' |
Balance at Dec. 31, 2011 | 10,392 | 250 | 60,754 | -197 | -50,415 |
Balance, shares at Dec. 31, 2011 | ' | 6,415,698 | ' | ' | ' |
Share-based compensation | 672 | ' | 672 | ' | ' |
Exercise of options | 45 | 1 | 44 | ' | ' |
Exercise of options, shares | ' | 34,082 | ' | ' | ' |
Net loss | -5,987 | ' | ' | ' | -5,987 |
Other comprehensive loss | -125 | ' | ' | -125 | ' |
Balance at Dec. 31, 2012 | 4,997 | 251 | 61,470 | -322 | -56,402 |
Balance, shares at Dec. 31, 2012 | 6,449,780 | 6,449,780 | ' | ' | ' |
Issuance of shares and warrants, net of issuance expenses of $ 35 (private placement) | 3,424 | 68 | 3,356 | ' | ' |
Issuance of shares and warrants, net of issuance expenses of $ 35 (private placement), shares | ' | 1,239,639 | ' | ' | ' |
Share-based compensation | 499 | ' | 499 | ' | ' |
Exercise of options | 226 | 12 | 214 | ' | ' |
Exercise of options, shares | 73,333 | 184,588 | ' | ' | ' |
Exercise of warrants | 256 | 4 | 252 | ' | ' |
Exercise of warrants, shares | ' | 73,333 | ' | ' | ' |
Net loss | -1,420 | ' | ' | ' | -1,420 |
Other comprehensive loss | -483 | ' | ' | -483 | ' |
Balance at Dec. 31, 2013 | $7,499 | $335 | $65,791 | ($805) | ($57,822) |
Balance, shares at Dec. 31, 2013 | 7,947,340 | 7,947,340 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows used in operating activities: | ' | ' | ' |
Net loss | ($1,420) | ($5,987) | ($1,904) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ' | ' | ' |
Depreciation | 108 | 119 | 155 |
Share-based compensation | 499 | 672 | 823 |
Increase (decrease) in allowance for doubtful accounts | ' | 20 | ' |
Increase (decrease) in severance pay, net | -19 | 10 | 60 |
Decrease (increase) in trade receivables | -2,716 | 2,060 | 1,369 |
Decrease (increase) in other current assets | 348 | 767 | -1,782 |
Decrease (increase) in inventories | 2,131 | -222 | -2,661 |
Increase (decrease) in trade payables | 348 | -775 | 2 |
Increase (decrease) in employees and payroll accrued | 123 | -88 | 74 |
Increase (decrease) in other accounts payable and accrued expenses | -9 | -131 | 402 |
Interest and linkage on restricted cash | -15 | -15 | ' |
Interest and linkage on short term loan | 23 | 27 | ' |
Increase (decrease) in deferred revenue and advances from customers | -1,531 | 1,082 | 112 |
Net cash used in operating activities | -2,130 | -2,461 | -3,350 |
Cash flows used in investing activities: | ' | ' | ' |
Restricted cash | -38 | -1,437 | ' |
Purchase of property and equipment | -88 | -66 | -103 |
Net cash used in investing activities | -126 | -1,503 | -103 |
Cash flows from financing activities: | ' | ' | ' |
Receipts (repayment) of short term bank credit, net | -429 | 1,058 | ' |
Receipts (repayment) of short term loan (includes $777 from related party) | -1,550 | 1,500 | ' |
Proceeds from issuance of shares and warrants , net of issuance expenses of $ 35 (private placement) | 3,424 | ' | ' |
Exercise of warrants | 256 | ' | 623 |
Exercise of options | 226 | 45 | 144 |
Net cash provided by financing activities | 1,927 | 2,603 | 767 |
Foreign currency translation adjustments on cash and cash equivalents | 40 | -66 | -157 |
Decrease in cash and cash equivalents | -289 | -1,427 | -2,843 |
Cash and cash equivalents at beginning of year | 1,474 | 2,901 | 5,744 |
Cash and cash equivalents at end of year | 1,185 | 1,474 | 2,901 |
Non-cash investing activities: | ' | ' | ' |
Purchase of property and equipment on credit | 30 | 19 | 3 |
Inventory transferred to be used as property and equipment | ' | 4 | 20 |
Interest paid in cash | $43 | $6 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | ' |
Loan proceeds from related party | $777 |
Private placement issuance expenses | $35 |
GENERAL
GENERAL | 12 Months Ended | ||
Dec. 31, 2013 | |||
GENERAL [Abstract] | ' | ||
GENERAL | ' | ||
NOTE 1:- | GENERAL | ||
a. | RADCOM Ltd (the "Company") is an Israeli corporation which provides innovative service assurance and customer experience management solutions for leading telecom operators and communications service providers. The Company specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS, VoIP, UMTS/GSM and mobile broadband. RADCOM's comprehensive, carrier-grade solutions are designed for big data analytics on terabit networks, and are used to prevent service provider revenue leakage and to enhance customer care management. The Company's products interact with policy management to provide self-optimizing network solutions. RADCOM's shares are listed on the NASDAQ Capital Market under the symbol RDCM. | ||
The Company has wholly-owned subsidiaries in the United States, Brazil and India, that are primarily engaged in the sales, marketing and customer support of the Company's products in North America, Brazil and India, respectively. | |||
b. | The Company has an accumulated deficit of $57,822 as of December 31, 2013. The Company has managed its liquidity during this time through a series of cost reduction initiatives, including reduction in workforce and private placement transactions. The Company believes that its existing capital resources and expected cash flows from operations will be adequate to satisfy its expected liquidity requirements through the end of December 2014. The Company's foregoing estimate is based, among others, on its current backlog and pipeline. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES | ||||||
The consolidated financial statements are prepared according to United States generally accepted accounting principles ("U.S GAAP"). | |||||||
a. | Use of estimates: | ||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
b. | Financial statements in U.S. dollars ("dollar" or "dollars"): | ||||||
Most of the Company's and its subsidiaries ,other than in Brazil, revenues and costs are denominated in U.S. dollars. Therefore, the Company's management believes the currency of the primary economic environment in which the operations of the Company are conducted is the United States dollar, which is used as the functional currency of the Company. | |||||||
Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are remeasured into dollars in accordance with the principles set forth in Statement of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters". | |||||||
Other than in the Company's subsidiary in Brazil, all exchange gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the consolidated statement of operations when they arise. | |||||||
Amounts in the financial statements representing the dollar equivalent of balances denominated in other currencies do not necessarily represent their real or economic value and such amounts may not necessarily be exchangeable for dollars. | |||||||
For the Company's subsidiary in Brazil whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive loss in shareholders' equity. | |||||||
c. | Principles of consolidation: | ||||||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||
d. | Cash equivalents: | ||||||
The Company considers all highly liquid deposit instruments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |||||||
e. | Restricted cash: | ||||||
Restricted cash is invested in a bank deposit, which is pledged in favor of the bank that provides guarantees to the Company. | |||||||
f. | Concentration of credit risk: | ||||||
Financial instruments that may subject the Company to significant concentration of credit risk consist mainly of cash and cash equivalents severance pay fund and trade receivables. | |||||||
Cash and cash equivalents and are maintained with major financial institutions mainly in Israel. Assets held for severance benefits are maintained with major insurance companies and financial institutions in Israel. Such deposits are not insured. However, management believes that such financial institutions are financially sound and, accordingly, low credit risk exists with respect to these investments. | |||||||
The Company grants credit to customers without generally requiring collateral or security. The risk of collection associated with trade receivables is reduced by geographical dispersion of the Company's customer base. The Company establishes an allowance for doubtful accounts based on historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay. Allowance for doubtful accounts amounted to $ $20 and $415 as of December 31, 2013 and 2012, respectively. The Company charges off receivables when they are deemed uncollectible. Actual collection experience may not meet expectations and may result in increased bad debt expense. Bad debt expenses (income) amounted to $ 0, $ 20 and $ 0 in 2013, 2012 and 2011, respectively. Total write offs during 2013, 2012 and 2011 amounted to $ 395, $ 206 and $ 0, respectively. | |||||||
g. | Inventories: | ||||||
Inventories are stated at the lower of cost or market value. Cost is determined on a "moving average" basis. Inventory write-downs are provided to cover technological obsolescence, excess inventories and discontinued products. | |||||||
Inventory write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand, and is charged to the cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. | |||||||
Total write offs during 2013, 2012 and 2011 amounted to $ 110, $ 311 and $ 0, respectively. | |||||||
h. | Property and equipment: | ||||||
Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to operations as incurred. | |||||||
Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. | |||||||
Annual rates of depreciation are as follows: | |||||||
% | |||||||
Demonstration and rental equipment | 33 | ||||||
Research and development equipment | 25 - 33 | ||||||
Manufacturing equipment | 15 - 33 | ||||||
Office furniture and equipment | Jul-33 | ||||||
Leasehold improvements | (*) | ||||||
*) | At the shorter of the lease period or useful life of the leasehold improvement. | ||||||
i. | Impairment of long-lived assets: | ||||||
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360 "property, plants and equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of an asset to be held and used is assessed by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During 2013, 2012 and 2011, no impairment losses were identified. | |||||||
j. | Revenue recognition: | ||||||
Revenues from sales of products are recognized in accordance with ASC No. 605, "Revenue Recognition" when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. | |||||||
Products are typically considered delivered upon shipment. In instances where final acceptance of the product is specified by the customer, and the acceptance is deemed substantive, revenue is deferred until all acceptance criteria have been met. The Company's arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. | |||||||
The Company's revenues are generated from sales to independent distributors and direct customers. The Company has a contract that is standard in substance with its distributors. Based on this contract, sales to distributors are final and distributors have no rights of return or price protection. The Company is not a party to the agreements between distributors and their customers, however the Company recognizes its revenue on a "sale through" basis and therefore revenues from these distributors are deferred until all revenue recognition criteria of the sale to the end customer are met. | |||||||
The Company also generates sales through independent representatives. These representatives do not hold any of the Company's inventories, and they do not buy products from the Company. The Company invoices the end-user customers directly, collects payment directly and then pays commissions to the representative for the sales in its territory. | |||||||
Revenues in arrangements with multiple deliverables are allocated using the relative selling price method. The selling price for each deliverable is based on vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE or TPE is available. The Company determines the BESP based on management estimated selling price by considering several external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. | |||||||
Under the Company's selling arrangements, the Company provides a one-year warranty, which includes bug fixing and a hardware warranty ("Warranty") for all of its products. Accordingly, the Company records an appropriate provision for Warranty in accordance with ASC 450 "Contingencies" (see Note 2l). After the Warranty period initially provided with the Company's products, the Company may sell extended warranty contracts on a standalone basis, which includes bug fixing and a hardware warranty. Revenue related to extended warranty contracts is recognized pursuant to ASC 605-20-25, "Separately Priced Extended Warranty and Product Maintenance Contracts." Pursuant to this provision, revenue related to separately priced product maintenance contracts is deferred and recognized over the term of the maintenance period. | |||||||
The customer may purchase an extended warranty with the initial sale. In such cases, revenues attributable to the extended warranty are deferred at the time of the initial sale and recognized ratably over the extended contract warranty period. | |||||||
Deferred revenues - represent mainly the unrecognized fees collected for extended warranty services. | |||||||
k. | Share-based compensation: | ||||||
The Company accounts for share-based compensation in accordance with ASC 718. ASC 718 requires companies to estimate the fair value of share-based payment awards on the grant date using an option-pricing model. | |||||||
The Company recognizes compensation expenses for the value of its awards granted based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||
The Company selected the Black-Scholes option pricing model as the most appropriate fair value method for its stock-options awards. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected option term. Expected term is calculated based on the simplified method as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected life of the options. Historically the Company has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore use an expected dividend yield of zero in the option pricing model. | |||||||
The fair value for options granted in 2013, 2012 and 2011 is estimated at the date of grant with the following weighted average assumptions: | |||||||
2013 | 2012 | 2011 | |||||
Dividend yield | 0% | 0% | 0% | ||||
Expected volatility | 71%-74% | 80-100% | 76-132% | ||||
Risk-free interest | 0.3%-0.6% | 0.3-0.4% | 0.3-2.1% | ||||
Expected life (in years) | 2.81 | 1.5-5.5 | 1.5-5.5 | ||||
l. | Provision for product warranty: | ||||||
The Company's policy is to grant a product warranty for a period of up to 12 months on its products. An extended warranty may be purchased for a longer period. The provision for warranties for all periods through December 31, 2013, is determined based upon the Company's past experience. The followings are the changes in the liability for product warranty from January 1, 2011 to December 31, 2013: | |||||||
Balance at January 1, 2011 | 229 | ||||||
Provision for warranties issued during the year | 316 | ||||||
Reduction for payments and costs to satisfy claims | (297 | ) | |||||
Balance at December 31, 2011 | 248 | ||||||
Provision for warranties issued during the year | 130 | ||||||
Reduction for payments and costs to satisfy claims | (123 | ) | |||||
Balance at December 31, 2012 | 255 | ||||||
Provision for warranties issued during the year | 288 | ||||||
Reduction for payments and costs to satisfy claims | (401 | ) | |||||
Balance at December 31, 2013 | 142 | ||||||
m. | Research and development costs: | ||||||
Research and development costs are charged to statement of operations as incurred. ASC 985-20 "Software - Costs of Computer Software to be Sold, Leased or Otherwise Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. | |||||||
Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release has been insignificant. Therefore, all research and development costs have been expensed. | |||||||
n. | Government grants: | ||||||
The Company receives royalty-bearing participation, which represents participation of the Government of Israel (specifically, the Office of the Chief Scientist - the "OCS") in approved programs for research and development. These amounts are recognized on the accrual basis as a reduction in research and development costs as such costs are incurred. Royalties to the OCS are recorded under cost of sales, when the related sales are recognized. See also Note 10a. | |||||||
The Company received participation from the Israeli Ministry of Economy, commerce and labor, which is a participation of up to 50% of relevant marketing expenses. These grants are presented as a reduction in marketing expenses. See also Note 10a. | |||||||
o. | Income (loss) per share: | ||||||
Basic and diluted income (loss) per Ordinary Share of the Company ("Ordinary Shares") are presented in conformity with ASC 260 "Earnings Per Share", for all years presented. Basic income (loss) per Ordinary Share is computed by dividing net income (loss) for each reporting period by the weighted average number of Ordinary Shares outstanding during the period. Diluted income (loss) per Ordinary Share is computed by dividing net income (loss) for each reporting period by the weighted average number of Ordinary Shares outstanding during the period plus any additional Ordinary Shares that would have been outstanding if potentially dilutive securities had been exercised during the period, calculated under the treasury stock method. | |||||||
Certain securities were not included in the computation of diluted income (loss) per share since they were anti-dilutive. The total number of shares related to the outstanding options and warrants excluded from the calculation of diluted net income (loss) per share was 1,353,372 as of December 31, 2013 (2012 - 1,248,631; 2011 - 988,642). | |||||||
p. | Income taxes: | ||||||
The Company accounts for income taxes in accordance with ASC 740 "Income Taxes". Deferred tax asset and liability account balances are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company provides a valuation allowance to reduce deferred tax assets to the extent it believes it is more likely than not that such benefits will not be realized. | |||||||
q. | Income tax uncertainties: | ||||||
In accordance with ASC 740 "Income Taxes" (formally FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes"), the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. | |||||||
r. | Cost of revenues: | ||||||
Cost of products is comprised of cost of hardware production, employees' salaries and related costs, allocated overhead expenses, packaging, import taxes, license fees paid to third parties and royalties paid to the OCS. | |||||||
Cost of services is comprised of cost of hardware maintenance and customer support employees' salaries and related costs. | |||||||
s. | Severance pay: | ||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. After completing one full year of employment, the Company's Israeli employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability is partially provided by monthly deposits with severance pay funds, insurance policies and by an accrual. The liability for employee severance pay benefits included on the balance sheet represents the total liability for such severance benefits, while the assets held for severance benefits included on the balance sheet represent the current redemption value of the Company's contributions made to severance pay funds and to insurance policies. | |||||||
The carrying value of deposited funds includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. | |||||||
Effective January 1, 2012, the Company's agreements with new employees in Israel are in accordance with section 14 of the Severance Pay Law - 1963 which provide that the Company's contributions to severance pay fund shall cover its entire severance obligation. Upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance obligation and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership on the amounts deposited. | |||||||
Severance expenses for the years ended December 31, 2013, 2012 and 2011 amounted to $ 537, $ 588 and $ 651, respectively. | |||||||
t. | Fair value of financial instruments: | ||||||
The financial instruments of the Company consist mainly of cash and cash equivalents, trade receivables, short term bank credit, short term bank loans, trade and other accounts payable, and accrued expenses. Due to the short-term nature of such financial instruments, their fair value approximates their carrying value. | |||||||
u. | Concentrations of business risk: | ||||||
Although the Company generally uses standard parts and components for products, certain key components used in the products are currently available from only one source, and others are available from a limited number of sources. The Company believes that it will not experience delays in the supply of critical components in the future. If the Company experiences such delays and there is an insufficient inventory of critical components at that time, the Company's operations and financial results would be adversely affected. | |||||||
The Company relies on a limited number of independent manufacturers, some of which are small, privately held companies, to provide certain assembly services to its specifications. The Company does not have any long-term supply agreements with any third-party manufacturer. If the Company's assembly services are reduced or interrupted, the Company's business, financial condition and results of operations could be adversely affected until the Company is able to establish sufficient assembly services supply from alternative sources. Alternative manufacturing sources may not be able to meet the Company's future requirements, and existing or alternative sources may not continue to be available at favorable prices. | |||||||
The Company's revenues in any period generally have been, and may continue to be, derived from relatively small numbers of sales with relatively high average revenues per order. Therefore, the loss of any orders or delays in closing such transactions could have an adverse effect on the Company's operations and financial results. | |||||||
v. | Comprehensive income (loss): | ||||||
The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its only item of other comprehensive income (loss) relates to foreign currency translation adjustment. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 3:- | INVENTORIES | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 884 | $ | 583 | |||||
Work in process | 420 | 360 | |||||||
Finished products (*) | 3,048 | 5,793 | |||||||
$ | 4,352 | $ | 6,736 | ||||||
(*) | Includes amounts of $ 2,109 and $ 4,977 for 2013 and 2012, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER CURRENT ASSETS [Abstract] | ' | ||||||||
OTHER CURRENT ASSETS | ' | ||||||||
NOTE 4:- | OTHER CURRENT ASSETS | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Indirect taxes | $ | 82 | $ | 567 | |||||
Government of Israel - OCS receivable | 389 | 322 | |||||||
Prepaid expenses and work in progress | 2,328 | 2,388 | |||||||
Advances to suppliers | 151 | 28 | |||||||
Others | 142 | 250 | |||||||
$ | 3,092 | $ | 3,555 | ||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 5:- | PROPERTY AND EQUIPMENT | ||||||||
Composition of assets, grouped by major classification, is as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cost: | |||||||||
Demonstration and rental equipment | $ | - | $ | 688 | |||||
Research and development equipment | 210 | 3,760 | |||||||
Manufacturing equipment | 149 | 1,190 | |||||||
Office furniture and equipment | 461 | 1,117 | |||||||
Leasehold improvements | 418 | 434 | |||||||
1,238 | 7,189 | ||||||||
Accumulated depreciation: | |||||||||
Demonstration and rental equipment | - | 671 | |||||||
Research and development equipment | 146 | 3,694 | |||||||
Manufacturing equipment | 77 | 1,171 | |||||||
Office furniture and equipment | 378 | 1,021 | |||||||
Leasehold improvements | 384 | 364 | |||||||
985 | 6,921 | ||||||||
$ | 253 | $ | 268 | ||||||
During 2013 and 2012 the Company recorded a reduction of $ 6,044 and $ 0, respectively to the cost and accumulated depreciation of fully depreciated equipment no longer in use. |
OTHER_ACCOUNTS_PAYABLE_AND_ACC
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | ' | ||||||||
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | ||||||||
NOTE 6:- | OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Royalties - OCS payable | $ | 690 | $ | 552 | |||||
Commissions | 62 | 90 | |||||||
Provision for product warranty | 142 | 255 | |||||||
Accrued expenses | 901 | 947 | |||||||
$ | 1,795 | $ | 1,844 |
SHORT_TERM_BANK_CREDIT
SHORT TERM BANK CREDIT | 12 Months Ended | |
Dec. 31, 2013 | ||
SHORT TERM BANK CREDIT [Abstract] | ' | |
SHORT TERM BANK CREDIT | ' | |
NOTE 7:- | SHORT TERM BANK CREDIT | |
In September 2012, the Company received a credit facility from a bank in an amount of $1,500. The facility may be renewed every 6 months based on compliance with certain covenants and according to the bank's decision. In November, 2013 the facility has been extended until April 30, 2014. The facility carries interest rates varying between LIBOR +3.25%-4% for USD denominated advances and Prime + 1-2% for NIS denominated advances, and is secured by a floating charge on all of the Company's assets. | ||
Under this facility the Company used as of December 31, 2013 and December 31, 2012, amount of $724 and $714, respectively, as a short term bank credit and amount of $ 0 and $ 750, respectively, as a short term loan. | ||
SHORT_TERM_LOANS
SHORT TERM LOANS | 12 Months Ended | |
Dec. 31, 2013 | ||
SHORT TERM LOANS [Abstract] | ' | |
SHORT TERM LOANS | ' | |
NOTE 8:- | SHORT TERM LOANS | |
In November, 2012, the Company entered into a loan agreement with a major shareholder, according to which the Company may receive a sum of up to NIS 3,000,000, bearing no interest and linked to the Israeli Consumer Price Index As of December 31, 2012 the Company received NIS 2,900,000 ($777). During June 2013 the Company repaid the loan. | ||
RELATED_PARTY_BALANCES_AND_TRA
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | ' | ||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ' | ||||||||||||
NOTE 9:- | RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||
a. | The Company carries out transactions with related parties as detailed below. Certain principal shareholders of the Company are also principal shareholders of affiliates known as the RAD-BYNET Group. The Company's transactions with related parties are carried out on an arm's-length basis. | ||||||||||||
1 | Certain premises occupied by the Company and the US subsidiary are rented from related parties (see Note 10b). The US subsidiary also sub-leases certain premises to a related party. The aggregate net amounts of lease payments were $ 410, $ 438 and, $ 428 in 2013, 2012 and 2011, respectively. | ||||||||||||
2 | Certain entities within the RAD-BYNET Group provide the Company with administrative services. Such amounts expensed by the Company are disclosed in "d" below as "Cost of sales, Sales and marketing, General and administrative expenses and research and development". | ||||||||||||
3 | The Company purchases from certain entities within the RAD-BYNET Group software packages included in the Company's products and is thus incorporated | into certain of its product lines. Such purchases by the Company are disclosed in "d" as "Cost of sales and Research and development". | |||||||||||
4 | The Company was a party to a distribution agreement with Bynet Electronics Ltd. ("BYNET"), a related party, giving BYNET the exclusive right to distribute the Company's products in Israel. The agreement was terminated during 2013. | ||||||||||||
Revenues related to this distribution agreement are included in "d" below as "revenues". The remainder of the amount of "revenues" included in "d" below is comprised of sales of the Company's products to entities within RAD-BYNET Group. | |||||||||||||
b. | In December 2012, the Company entered into a consulting agreement with a related party. Expenses incurred under this agreement are immaterial. | ||||||||||||
c. | Balances with related parties: | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assets: | |||||||||||||
Trade | $ | 11 | $ | 153 | |||||||||
Other current assets | $ | - | $ | 4 | |||||||||
Liabilities: | |||||||||||||
Trade | $ | 159 | $ | 229 | |||||||||
Other payables and accrued expenses | $ | 46 | $ | 44 | |||||||||
Short term loan (see note 8) | $ | - | $ | 777 | |||||||||
d. | Transactions with related parties: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 403 | $ | 451 | $ | 347 | |||||||
Expenses: | |||||||||||||
Cost of sales | $ | 54 | $ | 66 | $ | 62 | |||||||
Operating expenses: | |||||||||||||
Research and development | $ | 208 | $ | 198 | $ | 193 | |||||||
Sales and marketing | $ | 126 | $ | 181 | $ | 159 | |||||||
General and administrative | $ | 53 | $ | 57 | $ | 57 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 10:- | COMMITMENTS AND CONTINGENCIES | ||||
a. | Royalty commitments: | ||||
1 | The Company receives research and development grants from the OCS. In consideration for the research and development grants received from the OCS, the Company has undertaken to pay royalties as a percentage of revenues from products developed from research and development projects financed. Royalty rate is 3.5%. If the Company will not generate sales of products developed with funds provided by the OCS, the Company is not obligated to pay royalties or repay the grants. | ||||
Royalties are payable from the time of commencement of sales of all of these products until the cumulative amount of the royalties paid equals 100% of the dollar-linked amounts of the grants received, without interest for projects authorized until December 31, 1998. For projects authorized since January 1, 1999, the repayment bears interest at the LIBOR rate. | |||||
The total research and development grants that the Company has received from the OCS as of December 31, 2013 were $ 35,232. The accumulated interest as of December 31, 2013 was $ 11,177. As of December 31, 2013, the accumulated royalties paid to the OCS were $ 10,228. Accordingly, the Company's total commitment with respect to royalty-bearing participation received or accrued, net of royalties paid or accrued, amounted to $ 36,181 as of December 31, 2013. | |||||
Royalty expenses relating to the OCS grants included in cost of sales for the years ended December 31, 2013, 2012 and 2011 were $ 706, $ 562 and $ 759, respectively. | |||||
In May 2010, the Company received a notice from the OCS regarding alleged miscalculations in the amount of royalties paid by the Company to the OCS for the years 1992-2009 and the revenues basis of which the Company has to pay royalties.The Company believes that all royalties due to the OCS from the sale of products developed with funding provided by the OCS during such years were properly paid or were otherwise accrued.During 2011 the Company reviewed with the OCS alleged miscalculation differences and since then await further instructions. Currently the Company is unable to assess the merits of the aforesaid arguments raised by the OCS. | |||||
2 | According to the Company's agreements with the Israel-U.S Bi-National Industrial Research and Development Foundation ("BIRD-F"), the Company is required to pay royalties at a rate of 5% of sales of products developed with funds provided by the BIRD-F, up to an amount equal to 150% of BIRD-F's grant (linked to the United States Consumer Price Index) relating to such products. The last funds from the BIRD-F were received in 1996. In the event the Company does not generate sales of products developed with funds provided by BIRD-F, the Company is not obligated to pay royalties or repay the grants. | ||||
The total research and development funds that the Company has received from the BIRD-F were $ 340. As of December 31, 2013, the Company is required to pay royalties up to an amount of $ 789, including linkage to the United States Consumer Price Index (CPI). | |||||
As of December 31, 2013, the accumulated royalties paid to the BIRD-F including linkage to the CPI were $ 434. Accordingly, the Company's total commitment with respect to royalty-bearing participation received, net of royalties paid, amounted to $ 355 as of December 31, 2013. | |||||
Starting 2003 the Company has not generated sales of products developed with the funds provided by BIRD-F, therefore the Company is not obligated to pay royalties or repay the grant since that date. | |||||
3 | In April, 2012 the Israeli Ministry of Economy, commerce and labor approved the Company's application for participation in funding the setting up of the Company's Indian subsidiary as part of a designated grants plan for the purpose of setting up and establishing a marketing agency in India. The grant is intended to cover up to 50% from the costs of the office establishment, logistics expenses and hiring employees and consultants in India, based on the approved budget for the plan over a period of 3 years. | ||||
The Company is obligated to pay to the Israeli Ministry of Economy, commerce and labor royalties of 3% from the revenues growth derived in India up to an aggregate of 100% of the dollar-linked value of the total grant and for a period of up to 7 years from the last year of the plan. | |||||
The total marketing grants that the Company has received from the Ministry of Economy, commerce and labor as of December 31, 2013 were in the amount of $205. | |||||
As of December 31, 2013 no liability was accrued. | |||||
b. | Operating leases: | ||||
Premises occupied by the Company and its subsidiaries are rented under various rental agreements part of which are with related parties (see Note 9).The rental agreements for the premises of the Company and its subsidiaries expire up to December 31, 2016. | |||||
Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2013, are (in the aggregate) and for each succeeding fiscal year below: | |||||
Year ended December 31 | |||||
2014 | $ | 635 | |||
2015 | 517 | ||||
2016 | 502 | ||||
Total | $ | 1,654 | |||
Total lease expenses (net of sublease income from premises under sublease agreements) amounted to $ 941, $1,056 and $ 1,048 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
c. | Bank guarantee: | ||||
The Company has granted bank performance guarantees in favor of four of its customers in the total amount of $ 1,097 of which $ 776 expire during January 2014, $296 expire on March 13, 2014 and $ 25 on December 31, 2014. In addition, the Company established another guarantee in the amount of $ 35 which expires on April 30, 2014. | |||||
In addition, in order to secure the bank facility, a floating charge on all of the Company's assets was placed by the bank (see note 7). |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
NOTE 11:- | INCOME TAXES | ||||||||||||
a. | Israeli taxation: | ||||||||||||
Taxable income of the Israeli parent is subject to the Israeli corporate tax at the rate as follows: 2011 - 24%, 2012 - 25%, 2013- 25%. | |||||||||||||
On July 30, 2013 the Israeli Parliament (the Knesset) passed a law which was designated to increase the tax levy in the years 2013 and 2014. Among other, the law increases the Israeli corporate tax rate from 25% to 26.5%. | |||||||||||||
The Company has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2009 tax year can be regarded as final. | |||||||||||||
Tax loss carryforward: | |||||||||||||
The Company's tax loss carryforward were $ 44,814 as of December 31, 2013. Such losses can be carried forward indefinitely to offset any future taxable income of the Company. | |||||||||||||
b. | Foreign subsidiaries: | ||||||||||||
U.S subsidiary: | |||||||||||||
1 | The U.S subsidiary is taxed under United States federal and state tax rules. | ||||||||||||
2 | The U.S subsidiary's tax loss carryforward amounted to $ 8,552 as of December 31, 2013 for federal and state tax purposes. Such losses are available to offset any future U.S taxable income of the U.S subsidiary and will | expire in the years 2014-2028 for federal tax purpose and in the years 2014-2018 for state tax purpose. | |||||||||||
3 | The U.S subsidiary has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2009 tax year can be regarded as final. | ||||||||||||
Brazilian subsidiary: | |||||||||||||
1 | The Brazilian subsidiary is taxed under Brazilian tax rules. | ||||||||||||
2 | The Brazilian subsidiary's tax loss carryforward amounted to $ 1,682 as of December 31, 2013 for tax purposes. Tax losses may be carried forward indefinitely, but can only offset up to 30% of the company taxable income for a tax period. | ||||||||||||
c. | Deferred taxes: | ||||||||||||
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: | |||||||||||||
31-Dec | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Carryforward tax losses | $ | 16,638 | $ | 15,836 | |||||||||
Temporary differences | 1,749 | 932 | |||||||||||
18,387 | 16,768 | ||||||||||||
Less - valuation allowance | (18,387 | ) | (16,768 | ) | |||||||||
Net deferred tax assets | $ | - | $ | - | |||||||||
The net change in the total valuation allowance for the year ended December 31, 2013 was an increase of $ 1,619 and is mainly relates to increase in deferred taxes on NOL's for which a full valuation allowance was recorded. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences and tax loss carryforward are deductible. Management considers the projected taxable income and tax-planning strategies in making this assessment. In consideration of the Company's accumulated losses and the uncertainty of its ability to utilize its deferred tax assets in the future, management currently believes that it is more likely than not that the Company will not realize its deferred tax assets and accordingly recorded a valuation allowance to fully offset all the deferred tax assets. | |||||||||||||
d. | The components of loss before income taxes are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | (1,618 | ) | $ | (5,684 | ) | $ | (2,038 | ) | ||||
Foreign | 198 | (183 | ) | 134 | |||||||||
Loss before income taxes | $ | (1,420 | ) | $ | (5,867 | ) | $ | (1,904 | ) | ||||
e. | Reconciliation of the theoretical tax benefit and the actual tax expense: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Loss before income taxes, as reported in the statements of operations | $ | (1,420 | ) | $ | (5,867 | ) | $ | (1,904 | ) | ||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Theoretical tax benefit | $ | (355 | ) | $ | (1,467 | ) | $ | (457 | ) | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
Tax rate differential on foreign subsidiaries | 19 | (11 | ) | 18 | |||||||||
Non-deductible expenses and other permanent differences | 165 | 185 | 175 | ||||||||||
Change of deferred tax 2012 as result of tax rate change | (727 | ) | - | - | |||||||||
Utilization of tax losses in respect of which deferred tax assets were not recorded in prior years | (469 | ) | - | - | |||||||||
Differences in taxes arising from differences between Israeli currency income and dollar income, net | 186 | ||||||||||||
Losses and timing differences for which no deferred taxes were recorded | 1,619 | 1,083 | 234 | ||||||||||
Other | (438 | ) | 330 | 30 | |||||||||
Income taxes | $ | - | $ | 120 | $ | - | |||||||
f. | Accounting for uncertainty in income taxes: | ||||||||||||
For the years ended December 31, 2011, 2012 and 2013, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits had been accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||||
NOTE 12:- | SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
a. | The number of shares issued and outstanding at December 31, 2013 and 2012 does not include 5,189 Ordinary Shares, which are held by a subsidiary, and 30,843 Ordinary Shares which are held by the Company. | ||||||||||||||||||||||||
1 | Ordinary Shares confer all rights to their holders, e.g. voting, equity and receipt of dividend. | ||||||||||||||||||||||||
2 | On April 24, 2013, the Company entered into a private placement transaction (the "2013 PIPE"). Under the PIPE investment, the Company issued 1,239,639 Ordinary Shares to investors (investors in the 2013 PIPE included certain existing shareholders) at an aggregate purchase price of $ 3,459 or $ 2.79 per Ordinary Share. The Company also issued to the investors warrants to purchase one Ordinary Share for every three Ordinary Shares purchased by each investor (up to 413,213 shares) for an exercise price of $ 3.49 per Ordinary Share. The warrants are exercisable for three years from the closing of the 2013 PIPE. As of December 31, 2013, 73,333 warrants were exercised. | ||||||||||||||||||||||||
b. | Share option plans: | ||||||||||||||||||||||||
1 | The Company has granted options under option plans as follows: | ||||||||||||||||||||||||
Under the following plans options are granted for periods not to exceed seven years. Options vest over a period of zero to four years from date of grant. Any options that are cancelled or forfeited before expiration become available for future grants. | |||||||||||||||||||||||||
a) | The 2003 Share Option Plan: | ||||||||||||||||||||||||
The 2003 Share Option Plan (the "2003 Share Option Plan") grants options to purchase Ordinary Shares. These options are granted pursuant to the 2003 Share Option Plan for the purpose of providing incentives to employees, directors, consultants and contractors of the Company. In accordance with Section 102 of the Income Tax Ordinance (New Version) - 1961, the Company's Board of Directors (the "Board") elected the "Capital Gains Route". The plan expired on December 21, 2012 for future grants. | |||||||||||||||||||||||||
b) | The 2013 Share Option Plan: | ||||||||||||||||||||||||
On April 3, 2013, the Company approved a new Share Option Plan (the "2013 Share Option Plan"). The 2013 Share Option Plan grants options to purchase Ordinary Shares. These options are granted pursuant to the 2013 Share Option Plan for the purpose of providing incentives to employees, directors, consultants and contractors of the Company. In accordance with Section 102 of the Income Tax Ordinance (New Version) - 1961, the Company's Board of Directors (the "Board") elected the "Capital Gains Route". | |||||||||||||||||||||||||
2 | Grants in 2013, 2012 and 2011 were at exercise prices equal to the market value of the Ordinary Shares at the date of grant. | ||||||||||||||||||||||||
3 | Stock options under the Radcom plans are as follows for the periods indicated: | ||||||||||||||||||||||||
Number of options(in thousands) | Weighted-average exercise price | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||
Outstanding at January 1, 2013 | 1,034,205 | 4 | 4 | $ | 529 | ||||||||||||||||||||
Granted | 210,750 | 3.65 | |||||||||||||||||||||||
Exercised | (184,588 | ) | 1.22 | ||||||||||||||||||||||
Expired & forfeited | (46,875 | ) | 6.24 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,013,492 | 4.34 | 3.64 | 1,813 | |||||||||||||||||||||
Exercisable at December 31, 2013 | 859,656 | 4.5 | 3.42 | 1,507 | |||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 1,013,492 | 4.34 | 3.64 | 1,813 | |||||||||||||||||||||
The aggregate intrinsic value of options outstanding at December 31, 2013 represents intrinsic value of 842,356 outstanding options that are in-the-money as of December 31, 2013. The remaining 171,136 outstanding options are out of the money as of December 31, 2013, and their intrinsic value was considered as zero. | |||||||||||||||||||||||||
The aggregate intrinsic value of options exercisable at December 31, 2013 represents intrinsic value of 691,595 outstanding options that are in-the-money as of December 31, 2013. The remaining 168,061 outstanding options are out of the money as of December 31, 2013, and their intrinsic value was considered as zero. | |||||||||||||||||||||||||
The total number of shares available for future grants under The 2013 Share Option Plan as of December 31, 2013 was 42,500. On February, 2014 the Board of Directors authorized additional 250,000 options for future grants | |||||||||||||||||||||||||
4 | Stock options under the Radcom plans are as follows for the periods indicated: | ||||||||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||||||||
at December 31, 2013 | at December 31, 2013 | ||||||||||||||||||||||||
Exercise price | Number outstanding | Weighted average exercise price | Weighted average remaining contractual life | Number outstanding | Weighted average exercise price | Weighted average remaining contractual life | |||||||||||||||||||
$ | $ | In years | $ | In years | |||||||||||||||||||||
0.7- 1.95 | 204,093 | 1.15 | 2.44 | 190,432 | 1.09 | 2.4 | |||||||||||||||||||
2.38 - 4.9 | 616,013 | 3.74 | 4.34 | 481,913 | 3.84 | 4.15 | |||||||||||||||||||
5.0 - 8.72 | 83,486 | 6.65 | 2.12 | 78,736 | 6.73 | 1.99 | |||||||||||||||||||
10.80 - 13.16 | 109,900 | 11.83 | 3.06 | 108,575 | 11.82 | 3.05 | |||||||||||||||||||
1,013,492 | 859,656 | ||||||||||||||||||||||||
5 | The weighted average fair values of options granted during the years ended December 31, 2013, 2012 and 2011 were: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted average fair values on grant date | $ | 1.7 | $ | 2.5 | $ | 5.3 | |||||||||||||||||||
6 | The following table summarizes the departmental allocation of the Company's share-based compensation charge: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cost of sales | $ | 7 | $ | 14 | $ | 27 | |||||||||||||||||||
Research and development | 117 | 205 | 218 | ||||||||||||||||||||||
Selling and marketing | 82 | 167 | 231 | ||||||||||||||||||||||
General and administrative | 293 | 286 | 347 | ||||||||||||||||||||||
$ | 499 | $ | 672 | $ | 823 | ||||||||||||||||||||
7 | Share-based compensation: | ||||||||||||||||||||||||
As of December 31, 2013 there are $74 of total unrecognized company cost related to non-vested share based compensation that are expected to be recognized over a period of up to 2 years. | |||||||||||||||||||||||||
d. | Warrants: | ||||||||||||||||||||||||
The Company's outstanding warrants and rights as of December 31, 2013 are as follows: | |||||||||||||||||||||||||
Issuance date | Outstanding and exercisable | Exercise price | Exercisable through | ||||||||||||||||||||||
April 24,2013 | 339,880 | 3.49 | 23-Apr-16 | ||||||||||||||||||||||
SELECTED_STATEMENTS_OF_OPERATI
SELECTED STATEMENTS OF OPERATIONS DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | ' | ||||||||||||
SELECTED STATEMENTS OF OPERATIONS DATA | ' | ||||||||||||
NOTE 13:- | SELECTED STATEMENTS OF OPERATIONS DATA | ||||||||||||
a. | Revenues: | ||||||||||||
1 | Classified by geographical destination: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America | $ | 1,687 | $ | 3,850 | $ | 3,242 | |||||||
Europe | 4,044 | 2,970 | 6,371 | ||||||||||
Asia (Excluding Philippines) | 435 | 1,534 | 2,821 | ||||||||||
Philippines | 3,173 | 1,292 | 1,440 | ||||||||||
South America (Excluding Brazil) | 4,579 | 2,848 | 2,308 | ||||||||||
Brazil | 5,469 | 1,896 | 5,234 | ||||||||||
Other | 1,095 | 1,396 | 571 | ||||||||||
$ | 20,482 | $ | 15,786 | $ | 21,987 | ||||||||
2 | Major customers: | ||||||||||||
In 2013, the Company had two customers in the Philippines and Brazil that amounted $3,173 and $2,182, respectively, of the total consolidated revenues. During 2012 and 2011, the Company did not have any customer that amounted to more than 10% of the total respective consolidated revenues. | |||||||||||||
3 | Substantially all of the Company's long-lived assets are located in Israel. | ||||||||||||
b. | Financial expenses, net: | ||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial Income | $ | 49 | $ | 15 | $ | 20 | |||||||
49 | 15 | 20 | |||||||||||
Financial expenses: | |||||||||||||
Interest and bank charges | (117 | ) | (108 | ) | (74 | ) | |||||||
Foreign currency translation different, net | (223 | ) | (221 | ) | (330 | ) | |||||||
(340 | ) | (329 | ) | (404 | ) | ||||||||
Financial expenses, net | $ | (291 | ) | $ | (314 | ) | $ | (384 | ) | ||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||
Use of estimates | ' | ||||||
Use of estimates: | |||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
Financial statements in U.S. dollars ("dollar" or "dollars") | ' | ||||||
Financial statements in U.S. dollars ("dollar" or "dollars"): | |||||||
Most of the Company's and its subsidiaries ,other than in Brazil, revenues and costs are denominated in U.S. dollars. Therefore, the Company's management believes the currency of the primary economic environment in which the operations of the Company are conducted is the United States dollar, which is used as the functional currency of the Company. | |||||||
Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are remeasured into dollars in accordance with the principles set forth in Statement of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters". | |||||||
Other than in the Company's subsidiary in Brazil, all exchange gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the consolidated statement of operations when they arise. | |||||||
Amounts in the financial statements representing the dollar equivalent of balances denominated in other currencies do not necessarily represent their real or economic value and such amounts may not necessarily be exchangeable for dollars. | |||||||
For the Company's subsidiary in Brazil whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive loss in shareholders' equity. | |||||||
Principles of consolidation | ' | ||||||
Principles of consolidation: | |||||||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||
Cash equivalents | ' | ||||||
Cash equivalents: | |||||||
The Company considers all highly liquid deposit instruments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |||||||
Restricted cash | ' | ||||||
Restricted cash: | |||||||
Restricted cash is invested in a bank deposit, which is pledged in favor of the bank that provides guarantees to the Company. | |||||||
Concentration of credit risk | ' | ||||||
Concentration of credit risk: | |||||||
Financial instruments that may subject the Company to significant concentration of credit risk consist mainly of cash and cash equivalents severance pay fund and trade receivables. | |||||||
Cash and cash equivalents and are maintained with major financial institutions mainly in Israel. Assets held for severance benefits are maintained with major insurance companies and financial institutions in Israel. Such deposits are not insured. However, management believes that such financial institutions are financially sound and, accordingly, low credit risk exists with respect to these investments. | |||||||
The Company grants credit to customers without generally requiring collateral or security. The risk of collection associated with trade receivables is reduced by geographical dispersion of the Company's customer base. The Company establishes an allowance for doubtful accounts based on historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay. Allowance for doubtful accounts amounted to $ $20 and $415 as of December 31, 2013 and 2012, respectively. The Company charges off receivables when they are deemed uncollectible. Actual collection experience may not meet expectations and may result in increased bad debt expense. Bad debt expenses (income) amounted to $ 0, $ 20 and $ 0 in 2013, 2012 and 2011, respectively. Total write offs during 2013, 2012 and 2011 amounted to $ 395, $ 206 and $ 0, respectively. | |||||||
Inventories | ' | ||||||
Inventories: | |||||||
Inventories are stated at the lower of cost or market value. Cost is determined on a "moving average" basis. Inventory write-downs are provided to cover technological obsolescence, excess inventories and discontinued products. | |||||||
Inventory write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand, and is charged to the cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. | |||||||
Total write offs during 2013, 2012 and 2011 amounted to $ 110, $ 311 and $ 0, respectively. | |||||||
Property and equipment | ' | ||||||
Property and equipment: | |||||||
Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to operations as incurred. | |||||||
Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. | |||||||
Annual rates of depreciation are as follows: | |||||||
% | |||||||
Demonstration and rental equipment | 33 | ||||||
Research and development equipment | 25 - 33 | ||||||
Manufacturing equipment | 15 - 33 | ||||||
Office furniture and equipment | Jul-33 | ||||||
Leasehold improvements | (*) | ||||||
*) | At the shorter of the lease period or useful life of the leasehold improvement. | ||||||
Impairment of long-lived assets | ' | ||||||
Impairment of long-lived assets: | |||||||
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360 "property, plants and equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of an asset to be held and used is assessed by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During 2013, 2012 and 2011, no impairment losses were identified. | |||||||
Revenue recognition | ' | ||||||
Revenue recognition: | |||||||
Revenues from sales of products are recognized in accordance with ASC No. 605, "Revenue Recognition" when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. | |||||||
Products are typically considered delivered upon shipment. In instances where final acceptance of the product is specified by the customer, and the acceptance is deemed substantive, revenue is deferred until all acceptance criteria have been met. The Company's arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. | |||||||
The Company's revenues are generated from sales to independent distributors and direct customers. The Company has a contract that is standard in substance with its distributors. Based on this contract, sales to distributors are final and distributors have no rights of return or price protection. The Company is not a party to the agreements between distributors and their customers, however the Company recognizes its revenue on a "sale through" basis and therefore revenues from these distributors are deferred until all revenue recognition criteria of the sale to the end customer are met. | |||||||
The Company also generates sales through independent representatives. These representatives do not hold any of the Company's inventories, and they do not buy products from the Company. The Company invoices the end-user customers directly, collects payment directly and then pays commissions to the representative for the sales in its territory. | |||||||
Revenues in arrangements with multiple deliverables are allocated using the relative selling price method. The selling price for each deliverable is based on vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE or TPE is available. The Company determines the BESP based on management estimated selling price by considering several external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. | |||||||
Under the Company's selling arrangements, the Company provides a one-year warranty, which includes bug fixing and a hardware warranty ("Warranty") for all of its products. Accordingly, the Company records an appropriate provision for Warranty in accordance with ASC 450 "Contingencies" (see Note 2l). After the Warranty period initially provided with the Company's products, the Company may sell extended warranty contracts on a standalone basis, which includes bug fixing and a hardware warranty. Revenue related to extended warranty contracts is recognized pursuant to ASC 605-20-25, "Separately Priced Extended Warranty and Product Maintenance Contracts." Pursuant to this provision, revenue related to separately priced product maintenance contracts is deferred and recognized over the term of the maintenance period. | |||||||
The customer may purchase an extended warranty with the initial sale. In such cases, revenues attributable to the extended warranty are deferred at the time of the initial sale and recognized ratably over the extended contract warranty period. | |||||||
Deferred revenues - represent mainly the unrecognized fees collected for extended warranty services. | |||||||
Share-based compensation | ' | ||||||
Share-based compensation: | |||||||
The Company accounts for share-based compensation in accordance with ASC 718. ASC 718 requires companies to estimate the fair value of share-based payment awards on the grant date using an option-pricing model. | |||||||
The Company recognizes compensation expenses for the value of its awards granted based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||
The Company selected the Black-Scholes option pricing model as the most appropriate fair value method for its stock-options awards. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected option term. Expected term is calculated based on the simplified method as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected life of the options. Historically the Company has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore use an expected dividend yield of zero in the option pricing model. | |||||||
The fair value for options granted in 2013, 2012 and 2011 is estimated at the date of grant with the following weighted average assumptions: | |||||||
2013 | 2012 | 2011 | |||||
Dividend yield | 0% | 0% | 0% | ||||
Expected volatility | 71%-74% | 80-100% | 76-132% | ||||
Risk-free interest | 0.3%-0.6% | 0.3-0.4% | 0.3-2.1% | ||||
Expected life (in years) | 2.81 | 1.5-5.5 | 1.5-5.5 | ||||
Provision for product warranty | ' | ||||||
Provision for product warranty: | |||||||
The Company's policy is to grant a product warranty for a period of up to 12 months on its products. An extended warranty may be purchased for a longer period. The provision for warranties for all periods through December 31, 2013, is determined based upon the Company's past experience. The followings are the changes in the liability for product warranty from January 1, 2011 to December 31, 2013: | |||||||
Balance at January 1, 2011 | 229 | ||||||
Provision for warranties issued during the year | 316 | ||||||
Reduction for payments and costs to satisfy claims | (297 | ) | |||||
Balance at December 31, 2011 | 248 | ||||||
Provision for warranties issued during the year | 130 | ||||||
Reduction for payments and costs to satisfy claims | (123 | ) | |||||
Balance at December 31, 2012 | 255 | ||||||
Provision for warranties issued during the year | 288 | ||||||
Reduction for payments and costs to satisfy claims | (401 | ) | |||||
Balance at December 31, 2013 | 142 | ||||||
Research and development costs | ' | ||||||
Research and development costs: | |||||||
Research and development costs are charged to statement of operations as incurred. ASC 985-20 "Software - Costs of Computer Software to be Sold, Leased or Otherwise Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. | |||||||
Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release has been insignificant. Therefore, all research and development costs have been expensed. | |||||||
Government grants | ' | ||||||
Government grants: | |||||||
The Company receives royalty-bearing participation, which represents participation of the Government of Israel (specifically, the Office of the Chief Scientist - the "OCS") in approved programs for research and development. These amounts are recognized on the accrual basis as a reduction in research and development costs as such costs are incurred. Royalties to the OCS are recorded under cost of sales, when the related sales are recognized. See also Note 10a. | |||||||
The Company received participation from the Israeli Ministry of Economy, commerce and labor, which is a participation of up to 50% of relevant marketing expenses. These grants are presented as a reduction in marketing expenses. See also Note 10a. | |||||||
Income (loss) per share | ' | ||||||
Income (loss) per share: | |||||||
Basic and diluted income (loss) per Ordinary Share of the Company ("Ordinary Shares") are presented in conformity with ASC 260 "Earnings Per Share", for all years presented. Basic income (loss) per Ordinary Share is computed by dividing net income (loss) for each reporting period by the weighted average number of Ordinary Shares outstanding during the period. Diluted income (loss) per Ordinary Share is computed by dividing net income (loss) for each reporting period by the weighted average number of Ordinary Shares outstanding during the period plus any additional Ordinary Shares that would have been outstanding if potentially dilutive securities had been exercised during the period, calculated under the treasury stock method. | |||||||
Certain securities were not included in the computation of diluted income (loss) per share since they were anti-dilutive. The total number of shares related to the outstanding options and warrants excluded from the calculation of diluted net income (loss) per share was 1,353,372 as of December 31, 2013 (2012 - 1,248,631; 2011 - 988,642). | |||||||
Income taxes | ' | ||||||
Income taxes: | |||||||
The Company accounts for income taxes in accordance with ASC 740 "Income Taxes". Deferred tax asset and liability account balances are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company provides a valuation allowance to reduce deferred tax assets to the extent it believes it is more likely than not that such benefits will not be realized. | |||||||
Income tax uncertainties | ' | ||||||
Income tax uncertainties: | |||||||
In accordance with ASC 740 "Income Taxes" (formally FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes"), the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. | |||||||
Cost of revenues | ' | ||||||
Cost of revenues: | |||||||
Cost of products is comprised of cost of hardware production, employees' salaries and related costs, allocated overhead expenses, packaging, import taxes, license fees paid to third parties and royalties paid to the OCS. | |||||||
Cost of services is comprised of cost of hardware maintenance and customer support employees' salaries and related costs. | |||||||
Severance pay | ' | ||||||
Severance pay: | |||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. After completing one full year of employment, the Company's Israeli employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability is partially provided by monthly deposits with severance pay funds, insurance policies and by an accrual. The liability for employee severance pay benefits included on the balance sheet represents the total liability for such severance benefits, while the assets held for severance benefits included on the balance sheet represent the current redemption value of the Company's contributions made to severance pay funds and to insurance policies. | |||||||
The carrying value of deposited funds includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. | |||||||
Effective January 1, 2012, the Company's agreements with new employees in Israel are in accordance with section 14 of the Severance Pay Law - 1963 which provide that the Company's contributions to severance pay fund shall cover its entire severance obligation. Upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance obligation and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership on the amounts deposited. | |||||||
Severance expenses for the years ended December 31, 2013, 2012 and 2011 amounted to $ 537, $ 588 and $ 651, respectively. | |||||||
Fair value of financial instruments | ' | ||||||
Fair value of financial instruments: | |||||||
The financial instruments of the Company consist mainly of cash and cash equivalents, trade receivables, short term bank credit, short term bank loans, trade and other accounts payable, and accrued expenses. Due to the short-term nature of such financial instruments, their fair value approximates their carrying value. | |||||||
Concentrations of business risk | ' | ||||||
Concentrations of business risk: | |||||||
Although the Company generally uses standard parts and components for products, certain key components used in the products are currently available from only one source, and others are available from a limited number of sources. The Company believes that it will not experience delays in the supply of critical components in the future. If the Company experiences such delays and there is an insufficient inventory of critical components at that time, the Company's operations and financial results would be adversely affected. | |||||||
The Company relies on a limited number of independent manufacturers, some of which are small, privately held companies, to provide certain assembly services to its specifications. The Company does not have any long-term supply agreements with any third-party manufacturer. If the Company's assembly services are reduced or interrupted, the Company's business, financial condition and results of operations could be adversely affected until the Company is able to establish sufficient assembly services supply from alternative sources. Alternative manufacturing sources may not be able to meet the Company's future requirements, and existing or alternative sources may not continue to be available at favorable prices. | |||||||
The Company's revenues in any period generally have been, and may continue to be, derived from relatively small numbers of sales with relatively high average revenues per order. Therefore, the loss of any orders or delays in closing such transactions could have an adverse effect on the Company's operations and financial results. | |||||||
Comprehensive income (loss) | ' | ||||||
Comprehensive income (loss): | |||||||
The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its only item of other comprehensive income (loss) relates to foreign currency translation adjustment. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||
Schedule of Annual Rates of Depreciation | ' | ||||||
Annual rates of depreciation are as follows: | |||||||
% | |||||||
Demonstration and rental equipment | 33 | ||||||
Research and development equipment | 25 - 33 | ||||||
Manufacturing equipment | 15 - 33 | ||||||
Office furniture and equipment | Jul-33 | ||||||
Leasehold improvements | (*) | ||||||
*) | At the shorter of the lease period or useful life of the leasehold improvement. | ||||||
Assumptions Used in Estimation of Fair Value of Stock-based Compensation Awards | ' | ||||||
The fair value for options granted in 2013, 2012 and 2011 is estimated at the date of grant with the following weighted average assumptions: | |||||||
2013 | 2012 | 2011 | |||||
Dividend yield | 0% | 0% | 0% | ||||
Expected volatility | 71%-74% | 80-100% | 76-132% | ||||
Risk-free interest | 0.3%-0.6% | 0.3-0.4% | 0.3-2.1% | ||||
Expected life (in years) | 2.81 | 1.5-5.5 | 1.5-5.5 | ||||
Schedule of Changes in the Liability for Product Warranty | ' | ||||||
The followings are the changes in the liability for product warranty from January 1, 2011 to December 31, 2013: | |||||||
Balance at January 1, 2011 | 229 | ||||||
Provision for warranties issued during the year | 316 | ||||||
Reduction for payments and costs to satisfy claims | (297 | ) | |||||
Balance at December 31, 2011 | 248 | ||||||
Provision for warranties issued during the year | 130 | ||||||
Reduction for payments and costs to satisfy claims | (123 | ) | |||||
Balance at December 31, 2012 | 255 | ||||||
Provision for warranties issued during the year | 288 | ||||||
Reduction for payments and costs to satisfy claims | (401 | ) | |||||
Balance at December 31, 2013 | 142 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 884 | $ | 583 | |||||
Work in process | 420 | 360 | |||||||
Finished products (*) | 3,048 | 5,793 | |||||||
$ | 4,352 | $ | 6,736 | ||||||
(*) | Includes amounts of $ 2,109 and $ 4,977 for 2013 and 2012, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER CURRENT ASSETS [Abstract] | ' | ||||||||
Schedule of Other Current Assets | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Indirect taxes | $ | 82 | $ | 567 | |||||
Government of Israel - OCS receivable | 389 | 322 | |||||||
Prepaid expenses and work in progress | 2,328 | 2,388 | |||||||
Advances to suppliers | 151 | 28 | |||||||
Others | 142 | 250 | |||||||
$ | 3,092 | $ | 3,555 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
Composition of Assets, Grouped by Major Classification | ' | ||||||||
Composition of assets, grouped by major classification, is as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cost: | |||||||||
Demonstration and rental equipment | $ | - | $ | 688 | |||||
Research and development equipment | 210 | 3,760 | |||||||
Manufacturing equipment | 149 | 1,190 | |||||||
Office furniture and equipment | 461 | 1,117 | |||||||
Leasehold improvements | 418 | 434 | |||||||
1,238 | 7,189 | ||||||||
Accumulated depreciation: | |||||||||
Demonstration and rental equipment | - | 671 | |||||||
Research and development equipment | 146 | 3,694 | |||||||
Manufacturing equipment | 77 | 1,171 | |||||||
Office furniture and equipment | 378 | 1,021 | |||||||
Leasehold improvements | 384 | 364 | |||||||
985 | 6,921 | ||||||||
$ | 253 | $ | 268 | ||||||
OTHER_ACCOUNTS_PAYABLE_AND_ACC1
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | ' | ||||||||
Schedule of Other Accounts Payable and Accrued Expenses | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Royalties - OCS payable | $ | 690 | $ | 552 | |||||
Commissions | 62 | 90 | |||||||
Provision for product warranty | 142 | 255 | |||||||
Accrued expenses | 901 | 947 | |||||||
$ | 1,795 | $ | 1,844 |
RELATED_PARTY_BALANCES_AND_TRA1
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | ' | ||||||||||||
Balances and Transactions with Related Parties | ' | ||||||||||||
Balances with related parties: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assets: | |||||||||||||
Trade | $ | 11 | $ | 153 | |||||||||
Other current assets | $ | - | $ | 4 | |||||||||
Liabilities: | |||||||||||||
Trade | $ | 159 | $ | 229 | |||||||||
Other payables and accrued expenses | $ | 46 | $ | 44 | |||||||||
Short term loan (see note 8) | $ | - | $ | 777 | |||||||||
Transactions with related parties: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 403 | $ | 451 | $ | 347 | |||||||
Expenses: | |||||||||||||
Cost of sales | $ | 54 | $ | 66 | $ | 62 | |||||||
Operating expenses: | |||||||||||||
Research and development | $ | 208 | $ | 198 | $ | 193 | |||||||
Sales and marketing | $ | 126 | $ | 181 | $ | 159 | |||||||
General and administrative | $ | 53 | $ | 57 | $ | 57 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
Schedule Of Future Minimum Rental Payments | ' | ||||
Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2013, are (in the aggregate) and for each succeeding fiscal year below: | |||||
Year ended December 31 | |||||
2014 | $ | 635 | |||
2015 | 517 | ||||
2016 | 502 | ||||
Total | $ | 1,654 | |||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Significant Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company's deferred tax assets and liabilities are as follows: | |||||||||||||
31-Dec | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Carryforward tax losses | $ | 16,638 | $ | 15,836 | |||||||||
Temporary differences | 1,749 | 932 | |||||||||||
18,387 | 16,768 | ||||||||||||
Less - valuation allowance | (18,387 | ) | (16,768 | ) | |||||||||
Net deferred tax assets | $ | - | $ | - | |||||||||
Components of Income (Loss) Before Income Taxes | ' | ||||||||||||
The components of loss before income taxes are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | (1,618 | ) | $ | (5,684 | ) | $ | (2,038 | ) | ||||
Foreign | 198 | (183 | ) | 134 | |||||||||
Loss before income taxes | $ | (1,420 | ) | $ | (5,867 | ) | $ | (1,904 | ) | ||||
Reconciliation of Theoretical Tax Benefit and Actual Tax Expense | ' | ||||||||||||
Reconciliation of the theoretical tax benefit and the actual tax expense: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Loss before income taxes, as reported in the statements of operations | $ | (1,420 | ) | $ | (5,867 | ) | $ | (1,904 | ) | ||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Theoretical tax benefit | $ | (355 | ) | $ | (1,467 | ) | $ | (457 | ) | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
Tax rate differential on foreign subsidiaries | 19 | (11 | ) | 18 | |||||||||
Non-deductible expenses and other permanent differences | 165 | 185 | 175 | ||||||||||
Change of deferred tax 2012 as result of tax rate change | (727 | ) | - | - | |||||||||
Utilization of tax losses in respect of which deferred tax assets were not recorded in prior years | (469 | ) | - | - | |||||||||
Differences in taxes arising from differences between Israeli currency income and dollar income, net | 186 | ||||||||||||
Losses and timing differences for which no deferred taxes were recorded | 1,619 | 1,083 | 234 | ||||||||||
Other | (438 | ) | 330 | 30 | |||||||||
Income taxes | $ | - | $ | 120 | $ | - |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||||
Stock options under the Radcom plans are as follows for the periods indicated: | |||||||||||||||||||||||||
Number of options(in thousands) | Weighted-average exercise price | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||
Outstanding at January 1, 2013 | 1,034,205 | 4 | 4 | $ | 529 | ||||||||||||||||||||
Granted | 210,750 | 3.65 | |||||||||||||||||||||||
Exercised | (184,588 | ) | 1.22 | ||||||||||||||||||||||
Expired & forfeited | (46,875 | ) | 6.24 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,013,492 | 4.34 | 3.64 | 1,813 | |||||||||||||||||||||
Exercisable at December 31, 2013 | 859,656 | 4.5 | 3.42 | 1,507 | |||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 1,013,492 | 4.34 | 3.64 | 1,813 | |||||||||||||||||||||
Stock Options Under the Plans by Exercise Price | ' | ||||||||||||||||||||||||
Stock options under the Radcom plans are as follows for the periods indicated: | |||||||||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||||||||
at December 31, 2013 | at December 31, 2013 | ||||||||||||||||||||||||
Exercise price | Number outstanding | Weighted average exercise price | Weighted average remaining contractual life | Number outstanding | Weighted average exercise price | Weighted average remaining contractual life | |||||||||||||||||||
$ | $ | In years | $ | In years | |||||||||||||||||||||
0.7- 1.95 | 204,093 | 1.15 | 2.44 | 190,432 | 1.09 | 2.4 | |||||||||||||||||||
2.38 - 4.9 | 616,013 | 3.74 | 4.34 | 481,913 | 3.84 | 4.15 | |||||||||||||||||||
5.0 - 8.72 | 83,486 | 6.65 | 2.12 | 78,736 | 6.73 | 1.99 | |||||||||||||||||||
10.80 - 13.16 | 109,900 | 11.83 | 3.06 | 108,575 | 11.82 | 3.05 | |||||||||||||||||||
1,013,492 | 859,656 | ||||||||||||||||||||||||
Weighted Average Fair Values of Options | ' | ||||||||||||||||||||||||
The weighted average fair values of options granted during the years ended December 31, 2013, 2012 and 2011 were: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted average fair values on grant date | $ | 1.7 | $ | 2.5 | $ | 5.3 | |||||||||||||||||||
Departmental Allocation of Share-based Compensation Charge | ' | ||||||||||||||||||||||||
The following table summarizes the departmental allocation of the Company's share-based compensation charge: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cost of sales | $ | 7 | $ | 14 | $ | 27 | |||||||||||||||||||
Research and development | 117 | 205 | 218 | ||||||||||||||||||||||
Selling and marketing | 82 | 167 | 231 | ||||||||||||||||||||||
General and administrative | 293 | 286 | 347 | ||||||||||||||||||||||
$ | 499 | $ | 672 | $ | 823 | ||||||||||||||||||||
Outstanding Warrants and Rights | ' | ||||||||||||||||||||||||
The Company's outstanding warrants and rights as of December 31, 2013 are as follows: | |||||||||||||||||||||||||
Issuance date | Outstanding and exercisable | Exercise price | Exercisable through | ||||||||||||||||||||||
April 24,2013 | 339,880 | 3.49 | 23-Apr-16 | ||||||||||||||||||||||
SELECTED_STATEMENTS_OF_OPERATI1
SELECTED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | ' | ||||||||||||
Schedule of Revenue Classified by Geographical Destination | ' | ||||||||||||
Classified by geographical destination: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America | $ | 1,687 | $ | 3,850 | $ | 3,242 | |||||||
Europe | 4,044 | 2,970 | 6,371 | ||||||||||
Asia (Excluding Philippines) | 435 | 1,534 | 2,821 | ||||||||||
Philippines | 3,173 | 1,292 | 1,440 | ||||||||||
South America (Excluding Brazil) | 4,579 | 2,848 | 2,308 | ||||||||||
Brazil | 5,469 | 1,896 | 5,234 | ||||||||||
Other | 1,095 | 1,396 | 571 | ||||||||||
$ | 20,482 | $ | 15,786 | $ | 21,987 | ||||||||
Schedule of Financial Expenses, Net | ' | ||||||||||||
Financial expenses, net: | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial Income | $ | 49 | $ | 15 | $ | 20 | |||||||
49 | 15 | 20 | |||||||||||
Financial expenses: | |||||||||||||
Interest and bank charges | (117 | ) | (108 | ) | (74 | ) | |||||||
Foreign currency translation different, net | (223 | ) | (221 | ) | (330 | ) | |||||||
(340 | ) | (329 | ) | (404 | ) | ||||||||
Financial expenses, net | $ | (291 | ) | $ | (314 | ) | $ | (384 | ) | ||||
GENERAL_Details
GENERAL (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
GENERAL [Abstract] | ' | ' |
Accumulated deficit | ($57,822) | ($56,402) |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Trade receivables, allowances for doubtful accounts | $20 | $415 | ' |
Bad debt (income) expense | ' | 20 | ' |
Bad debt write offs | 395 | 206 | ' |
Inventory write offs | 110 | 311 | ' |
Shares excluded from the calculation of diluted net income (loss) per share | 1,353,372 | 1,248,631 | 988,642 |
Uncertain tax position, likelihood of being sustained, threshold for recognition | 50.00% | ' | ' |
Years employment required for eligibility for severance pay | '1 year | ' | ' |
Months severance salary payable per year of employment | '1 month | ' | ' |
Severance pay expenses | $537 | $588 | $651 |
Number of suppliers of certain key components | 1 | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Annual Rates of Depreciation) (Details) | 12 Months Ended | |
Dec. 31, 2013 | ||
Demonstration and rental equipment [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Annual rate of depreciation | 33.00% | |
Research and development equipment [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Annual rate of depreciation, minimum | 25.00% | |
Annual rate of depreciation, maximum | 33.00% | |
Manufacturing equipment [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Annual rate of depreciation, minimum | 15.00% | |
Annual rate of depreciation, maximum | 33.00% | |
Office furniture and equipment [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Annual rate of depreciation, minimum | 7.00% | |
Annual rate of depreciation, maximum | 33.00% | |
Leasehold improvements [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Annual rate of depreciation | ' | [1] |
[1] | At the shorter of the lease period or useful life of the leasehold improvement. |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Assumptions Used in Estimation of Fair Value of Stock-based Compensation Awards) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Dividend rate | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 71.00% | 80.00% | 76.00% |
Expected volatility, maximum | 74.00% | 100.00% | 132.00% |
Risk free interest rate, minimum | 0.30% | 0.30% | 0.30% |
Risk free interest rate, maximum | 0.60% | 0.40% | 2.10% |
Expected term (in years) | '2 years 9 months 22 days | ' | ' |
Minimum [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Expected term (in years) | ' | '1 year 6 months | '1 year 6 months |
Maximum [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Expected term (in years) | ' | '5 years 6 months | '5 years 6 months |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Changes in the Liability for Product Warranty) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Product warranty period | '12 months | ' | ' |
Balance | $255 | $248 | $229 |
Provision for warranties issued during the year | 288 | 130 | 316 |
Reduction for payments and costs to satisfy claims | -401 | -123 | -297 |
Balance | $142 | $255 | $248 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
INVENTORIES [Abstract] | ' | ' | ||
Raw materials | $884 | $583 | ||
Work in process | 420 | 360 | ||
Finished products | 3,048 | [1] | 5,793 | [1] |
Inventories | 4,352 | 6,736 | ||
Inventory delivered to customers but not recognized in revenue | $2,109 | $4,977 | ||
[1] | Includes amounts of $ 2,109 and $ 4,977 for 2013 and 2012, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
OTHER CURRENT ASSETS [Abstract] | ' | ' |
Indirect taxes | $82 | $567 |
Government of Israel - OCS receivable | 389 | 322 |
Prepaid expenses and work in progress | 2,328 | 2,388 |
Advances to suppliers | 151 | 28 |
Others | 142 | 250 |
Other current assets, total | $3,092 | $3,555 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | $1,238 | $7,189 |
Accumulated depreciation | 985 | 6,921 |
Property and equipment, net | 253 | 268 |
Reduction in accumulated depreciation due to fully deprecated equipment no longer in service | 6,044 | 1,422 |
Demonstration and rental equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | ' | 688 |
Accumulated depreciation | ' | 671 |
Research and development equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | 210 | 3,760 |
Accumulated depreciation | 146 | 3,694 |
Manufacturing equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | 149 | 1,190 |
Accumulated depreciation | 77 | 1,171 |
Office furniture and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | 461 | 1,117 |
Accumulated depreciation | 378 | 1,021 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | 418 | 434 |
Accumulated depreciation | $384 | $364 |
OTHER_ACCOUNTS_PAYABLE_AND_ACC2
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | ' | ' |
Royalties - OCS payable | $690 | $552 |
Commissions | 62 | 90 |
Provision for product warranty | 142 | 255 |
Accrued expenses | 901 | 947 |
Other payables and accrued expenses, total | $1,795 | $1,844 |
SHORT_TERM_BANK_CREDIT_Details
SHORT TERM BANK CREDIT (Details) (USD $) | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Credit Facility [Member] | Short Term Bank Credits [Member] | Short Term Bank Credits [Member] | Short Term Loan [Member] | Short Term Loan [Member] | Libor [Member] | Libor [Member] | Libor [Member] | Prime [Member] | Prime [Member] | Prime [Member] |
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing amount | $1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest reference rate | ' | ' | ' | ' | ' | 'Libor | ' | ' | 'Prime | ' | ' |
Interest rate, spread on variable rate | ' | ' | ' | ' | ' | ' | 3.25% | 4.00% | ' | 1.00% | 2.00% |
Short term loan | ' | $724 | $714 | ' | $750 | ' | ' | ' | ' | ' | ' |
SHORT_TERM_LOANS_Details
SHORT TERM LOANS (Details) (Majority Shareholder [Member]) | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | USD ($) | ILS | ILS |
Short-term Debt [Line Items] | ' | ' | ' |
Credit facility, maximum borrowing amount | ' | ' | 3,000 |
Credit facility, amount received | $777 | 2,900 | ' |
RELATED_PARTY_BALANCES_AND_TRA2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets: | ' | ' | ' |
Trade | $5,723 | $3,292 | ' |
Other current assets | 3,092 | 3,555 | ' |
Liabilities: | ' | ' | ' |
Trade | 2,257 | 1,920 | ' |
Other accounts payable and accrued expenses | 1,795 | 1,844 | ' |
Transactions with related parties: | ' | ' | ' |
Revenues | 20,482 | 15,786 | 21,987 |
Expenses: | ' | ' | ' |
Cost of sales | 7,890 | 6,182 | 6,680 |
Operating expenses: | ' | ' | ' |
Research and development | 5,615 | 6,102 | 5,866 |
Sales and marketing | 7,592 | 8,515 | 9,962 |
General and administrative | 2,051 | 2,107 | 2,234 |
Aggregate net lease payments | 410 | 438 | 428 |
Related Parties [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Trade | 11 | 153 | ' |
Other current assets | ' | 4 | ' |
Liabilities: | ' | ' | ' |
Trade | 159 | 229 | ' |
Other accounts payable and accrued expenses | 46 | 44 | ' |
Short term loan (see note 8) | ' | 777 | ' |
Transactions with related parties: | ' | ' | ' |
Revenues | 403 | 451 | 347 |
Expenses: | ' | ' | ' |
Cost of sales | 54 | 66 | 62 |
Operating expenses: | ' | ' | ' |
Research and development | 208 | 198 | 193 |
Sales and marketing | 126 | 181 | 159 |
General and administrative | $53 | $57 | $57 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Royalty Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OCS [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Royalty rates | 3.50% | ' | ' |
Percent of grants received paid in royalties | 100.00% | ' | ' |
Proceeds from grants received | $35,232 | ' | ' |
Accumulated interest, grants | 11,177 | ' | ' |
Accumulated royalties paid | 10,228 | ' | ' |
Total commitment with respect to royalty-bearing participation received, net of royalties paid | 36,181 | ' | ' |
Royalty expenses | 706 | 562 | 759 |
BIRD-F [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Royalty rates | 5.00% | ' | ' |
Percent of grants received paid in royalties | 150.00% | ' | ' |
Proceeds from grants received | 340 | ' | ' |
Royalties due based on stated percentage | 789 | ' | ' |
Linkage to the United States Consumer Price Index | 434 | ' | ' |
Accumulated royalties paid | 355 | ' | ' |
Israeli Ministry of Trade [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Royalty rates | 3.00% | ' | ' |
Percent of grants received paid in royalties | 100.00% | ' | ' |
Proceeds from grants received | $205 | ' | ' |
Maximum term for required royalty payments | '7 years | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Operating Leases) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Future minimum rental payments, operating leases: | ' | ' | ' |
2014 | $635 | ' | ' |
2015 | 517 | ' | ' |
2016 | 502 | ' | ' |
Total | 1,654 | ' | ' |
Rental, lease, and maintenance expenses | $941 | $1,056 | $968 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Bank Guarantee) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Guarantor Obligations [Line Items] | ' |
Bank performance guarantee | $1,097 |
Guarantee expiring January 30, 2014 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Bank performance guarantee | 776 |
Guarantee expiring March 13, 2014 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Bank performance guarantee | 296 |
Guarantee expiring December 31, 2014 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Bank performance guarantee | 25 |
Guarantee expiring April 30, 2014 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Bank performance guarantee | $35 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 5 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax loss carry forward | $44,814 | $44,814 | ' | ' |
Net change in total valuation allowance | ' | 1,619 | ' | ' |
Israeli corporate tax rate | 26.50% | 25.00% | 25.00% | 24.00% |
U.S.subsidiary [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax loss carry forward | 8,552 | 8,552 | ' | ' |
Brazilian subsidiary [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax loss carry forward | $1,682 | $1,682 | ' | ' |
INCOME_TAXES_Significant_Compo
INCOME TAXES (Significant Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INCOME TAXES [Abstract] | ' | ' |
Carryforward tax losses | $16,638 | $15,836 |
Temporary differences | 1,749 | 932 |
Deferred tax assets, gross | 18,387 | 16,768 |
Less - valuation allowance | -18,387 | -16,768 |
Net deferred tax assets | ' | ' |
INCOME_TAXES_Components_of_Inc
INCOME TAXES (Components of Income (Loss) Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES [Abstract] | ' | ' | ' |
Domestic | ($1,618) | ($5,684) | ($2,038) |
Foreign | 198 | -183 | 134 |
Loss before income taxes | ($1,420) | ($5,867) | ($1,904) |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Theoretical Tax Benefit and Actual Tax Expense) (Details) (USD $) | 5 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
Loss before income taxes, as reported in the statements of operations | ' | ($1,420) | ($5,867) | ($1,904) |
Statutory tax rate in Israel | 26.50% | 25.00% | 25.00% | 24.00% |
Theoretical tax benefit | ' | -355 | -1,467 | -457 |
Tax rate differential on foreign subsidiaries | ' | 19 | -11 | 18 |
Non-deductible expenses and other permanent differences | ' | 165 | 185 | 175 |
Change of deferred tax 2012 as result of tax rate change | ' | -727 | ' | ' |
Utilization of tax losses in respect of which deferred tax assets were not recorded in prior years | ' | -469 | ' | ' |
Differences in taxes arising from differences between Israeli currency income and dollar income, net | ' | 186 | ' | ' |
Losses and timing differences for which no deferred taxes were recorded | ' | 1,619 | 1,083 | 234 |
Other | ' | -438 | 330 | 30 |
Income taxes | ' | ' | $120 | ' |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Apr. 24, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Shares held by subsidiary | ' | 5,189 | 5,189 |
Treasury stock, shares | ' | 30,843 | 30,843 |
Shares issued | 1,239,639 | ' | ' |
Aggregate purchase price | $3,459 | ' | ' |
Purchase price per share | $2.79 | ' | ' |
Ratio of common shares sold to warrants issued | 3 | ' | ' |
Maximum number of shares callable by warrants | 413,213 | ' | ' |
Exercise price of warrants | 3,490 | ' | ' |
Exercise of options, shares | ' | 73,333 | ' |
Period before expiration | '3 years | '7 years | ' |
In-the-money options outstanding | ' | 842,356 | ' |
Out of the money options outstanding | ' | 171,136 | ' |
In-the-money options exercisable | ' | 691,595 | ' |
Out of the money options exercisable | ' | 168,061 | ' |
Number of shares available for future grants | ' | 42,500 | ' |
Number of additional shares available for future grants | ' | 250,000 | ' |
Unrecognized balance of compensation expenses | ' | $74 | ' |
Vesting period for plan | ' | '2 years | ' |
Minimum [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Vesting period for plan | ' | '0 years | ' |
Maximum [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Line Items | ' | ' | ' |
Vesting period for plan | ' | '4 years | ' |
SHAREHOLDERS_EQUITY_Stock_Opti
SHAREHOLDERS' EQUITY (Stock Options Under the Plans) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Number of options | ' | ' |
Exercised | -73,333 | ' |
Options [Member] | ' | ' |
Number of options | ' | ' |
Options outstanding, beginning balance | 1,034,205 | ' |
Granted | 210,750 | ' |
Exercised | -184,588 | ' |
Expired & forfeited | -46,875 | ' |
Options outstanding, ending balance | 1,013,492 | 1,034,205 |
Exercisable at December 31, 2013 | 859,656 | ' |
Weighted average exercise price | ' | ' |
Options outstanding, beginning balance | $4 | ' |
Granted | $3.65 | ' |
Exercised | $1.22 | ' |
Expired & forfeited | $6.24 | ' |
Options outstanding, ending balance | $4.34 | $4 |
Exercisable at December 31, 2013 | $4.50 | ' |
Weighted average remaining contractual term (in years) | ' | ' |
Outstanding | '3 years 7 months 21 days | '4 years |
Exercisable at December 31, 2013 | '3 years 5 months 1 day | ' |
Aggregate intrinsic value | ' | ' |
Outstanding | $1,813 | $529 |
Options exercisable | 1,507 | ' |
Vested and expected to vest at December 31, 2013 | ' | ' |
Number of options | 1,013,492 | ' |
Weighted average exercise price | $4.34 | ' |
Weighted average remaining contractual life | '3 years 7 months 21 days | ' |
Aggregate intrinsic value | $1,813 | ' |
SHAREHOLDERS_EQUITY_Stock_Opti1
SHAREHOLDERS' EQUITY (Stock Options Under the Plans by Exercise Price) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Options outstanding at December 31, 2013 | ' |
Number outstanding | 1,013,492 |
Options exercisable at December 31, 2013 | ' |
Number outstanding | 859,656 |
0.7 - 1.95 [Member] | Options [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Minimum exercise price | $0.70 |
Maximum exercise price | $1.95 |
Options outstanding at December 31, 2013 | ' |
Number outstanding | 204,093 |
Weighted average exercise price | $1.15 |
Weighted average remaining contractual life (in years) | '2 years 5 months 9 days |
Options exercisable at December 31, 2013 | ' |
Number outstanding | 190,432 |
Weighted average exercise price | $1.09 |
Weighted average remaining contractual life | '2 years 4 months 24 days |
2.38 - 4.9 [Member] | Options [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Minimum exercise price | $2.38 |
Maximum exercise price | $4.90 |
Options outstanding at December 31, 2013 | ' |
Number outstanding | 616,013 |
Weighted average exercise price | $3.74 |
Weighted average remaining contractual life (in years) | '4 years 4 months 2 days |
Options exercisable at December 31, 2013 | ' |
Number outstanding | 481,913 |
Weighted average exercise price | $3.84 |
Weighted average remaining contractual life | '4 years 1 month 24 days |
5.0 - 8.72 [Member] | Options [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Minimum exercise price | $5 |
Maximum exercise price | $8.72 |
Options outstanding at December 31, 2013 | ' |
Number outstanding | 83,486 |
Weighted average exercise price | $6.65 |
Weighted average remaining contractual life (in years) | '2 years 1 month 13 days |
Options exercisable at December 31, 2013 | ' |
Number outstanding | 78,736 |
Weighted average exercise price | $6.73 |
Weighted average remaining contractual life | '1 year 11 months 27 days |
10.80 - 13.16 [Member] | Options [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Minimum exercise price | $10.80 |
Maximum exercise price | $13.16 |
Options outstanding at December 31, 2013 | ' |
Number outstanding | 109,900 |
Weighted average exercise price | $11.83 |
Weighted average remaining contractual life (in years) | '3 years 22 days |
Options exercisable at December 31, 2013 | ' |
Number outstanding | 108,575 |
Weighted average exercise price | $11.82 |
Weighted average remaining contractual life | '3 years 18 days |
SHAREHOLDERS_EQUITY_Weighted_A
SHAREHOLDERS' EQUITY (Weighted Average Fair Values of Options Granted) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SHAREHOLDERS' EQUITY [Abstract] | ' | ' | ' |
Weighted average fair values on grant date | $1.70 | $2.50 | $5.30 |
SHAREHOLDERS_EQUITY_Department
SHAREHOLDERS' EQUITY (Departmental Allocation of Share-Based Compensation Charge)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation charge | $499 | $672 | $823 |
Cost of sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation charge | 7 | 14 | 27 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation charge | 117 | 205 | 218 |
Selling and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation charge | 82 | 167 | 231 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation charge | $293 | $286 | $347 |
SHAREHOLDERS_EQUITY_Outstandin
SHAREHOLDERS' EQUITY (Outstanding Warrants and Rights) (Details) (Warrant [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Warrant [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Issuance date | 24-Apr-13 |
Outstanding | 339,880 |
Exercisable | 339,880 |
Exercise price | $3.49 |
Exercisable through | 23-Apr-16 |
SELECTED_STATEMENTS_OF_OPERATI2
SELECTED STATEMENTS OF OPERATIONS DATA (Narrative) ( Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment information and revenues from principal customers: | ' | ' | ' |
Percent of total revenues benchmark | 10.00% | 10.00% | ' |
Number of customers exceeding threshold | 2 | ' | ' |
Total consolidated revenues | $17,917 | $12,480 | $19,199 |
Philippines [Member] | ' | ' | ' |
Segment information and revenues from principal customers: | ' | ' | ' |
Total consolidated revenues | 3,173 | ' | ' |
Brazil [Member] | ' | ' | ' |
Segment information and revenues from principal customers: | ' | ' | ' |
Total consolidated revenues | $2,182 | ' | ' |
SELECTED_STATEMENTS_OF_OPERATI3
SELECTED STATEMENTS OF OPERATIONS DATA (Schedule of Revenue Classified by Geographical Destination) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $20,482 | $15,786 | $21,987 |
North America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,687 | 3,850 | 3,242 |
Europe [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 4,044 | 2,970 | 6,371 |
Asia (Excluding Philippines) [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 435 | 1,534 | 2,821 |
Philippines [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 3,173 | 1,292 | 1,440 |
South America (Excluding Brazil) [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 4,579 | 2,848 | 2,308 |
Brazil [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 5,469 | 1,896 | 5,234 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $1,095 | $1,396 | $571 |
SELECTED_STATEMENTS_OF_OPERATI4
SELECTED STATEMENTS OF OPERATIONS DATA (Financial Expenses Net) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial income: | ' | ' | ' |
Financial Income | $49 | $15 | $20 |
Financial expenses: | ' | ' | ' |
Interest and bank charges | -117 | -108 | -74 |
Foreign currency translation different, net | -223 | -221 | -330 |
Other expense | -340 | -329 | -404 |
Financial expenses, net | ($291) | ($314) | ($384) |