Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | RADCOM LTD |
Entity Central Index Key | 0001016838 |
Trading Symbol | RDCM |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 13,699,727 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 61,988 | $ 22,575 |
Restricted bank deposit | 36 | |
Short-term bank deposit | 40,000 | |
Trade receivables (net of allowances for doubtful accounts amounted to $19 and $9 as of December 31, 2018, and 2017, respectively) | 20,381 | 20,266 |
Inventories | 251 | 1,199 |
Other accounts receivable and prepaid expenses | 1,766 | 2,685 |
Total current assets | 84,386 | 86,761 |
SEVERANCE PAY FUND | 2,967 | 3,052 |
OTHER LONG - TERM RECEIVABLES | 346 | 172 |
PROPERTY AND EQUIPMENT, NET | 1,832 | 1,924 |
Total assets | 89,531 | 91,909 |
CURRENT LIABILITIES: | ||
Trade payables | 1,559 | 1,828 |
Employees and payroll accruals | 3,420 | 4,062 |
Deferred revenues and advances from customers | 266 | 2,601 |
Other accounts payable and accrued expenses | 2,281 | 3,428 |
Total current liabilities | 7,526 | 11,919 |
NON-CURRENT LIABILITIES: | ||
Deferred revenues | 100 | 21 |
Accrued severance pay | 3,425 | 3,573 |
Total non-current liabilities | 3,525 | 3,594 |
Total liabilities | 11,051 | 15,513 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital: Ordinary Shares of NIS 0.20 par value: Authorized: 20,000,000 shares at December 31, 2018 and 2017; 13,735,759 and 13,446,007 shares issued and 13,699,727 and 13,409,975 shares outstanding at December 31, 2018 and 2017, respectively | 643 | 628 |
Additional paid-in capital | 135,730 | 131,491 |
Accumulated other comprehensive loss | (2,612) | (2,520) |
Accumulated deficit | (55,281) | (53,203) |
Total shareholders' equity | 78,480 | 76,396 |
Total liabilities and shareholders' equity | $ 89,531 | $ 91,909 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 31, 2018USD ($)shares | Dec. 31, 2018₪ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017₪ / shares |
Statement of Financial Position [Abstract] | ||||
Net of allowances for doubtful accounts | $ | $ 19 | $ 9 | ||
Ordinary shares, par value | ₪ / shares | ₪ 0.20 | ₪ 0.20 | ||
Ordinary shares, shares authorized | 20,000,000 | 20,000,000 | ||
Ordinary shares, shares issued | 13,735,759 | 13,446,007 | ||
Ordinary shares, shares outstanding | 13,699,727 | 13,409,975 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Products and related services | $ 13,529 | $ 7,457 | $ 8,642 |
Projects | 12,218 | 26,179 | 17,534 |
Warranty and support | 8,303 | 3,597 | 3,334 |
Total revenues | 34,050 | 37,233 | 29,510 |
Cost of revenues: | |||
Products and related services | 4,851 | 4,680 | 5,603 |
Projects | 2,825 | 5,321 | 2,902 |
Warranty and support | 1,190 | 487 | 477 |
Total cost of revenues | 8,866 | 10,488 | 8,982 |
Gross profit | 25,184 | 26,745 | 20,528 |
Operating expenses: | |||
Research and development | 15,503 | 10,562 | 8,047 |
Less - royalty-bearing participation | 1,648 | 1,599 | 1,693 |
Research and development, net | 13,855 | 8,963 | 6,354 |
Sales and marketing, net | 11,426 | 10,996 | 8,528 |
General and administrative | 3,391 | 4,191 | 4,523 |
Total operating expenses | 28,672 | 24,150 | 19,405 |
Operating income (loss) | (3,488) | 2,595 | 1,123 |
Financial income, net | 1,136 | 389 | 816 |
Income (loss) before taxes on income | (2,352) | 2,984 | 1,939 |
Taxes on income | (63) | (83) | (24) |
Net income (loss) | $ (2,415) | $ 2,901 | $ 1,915 |
Basic net income (loss) per Ordinary Share | $ (0.18) | $ 0.24 | $ 0.18 |
Diluted net income (loss) per Ordinary Share | $ (0.18) | $ 0.23 | $ 0.18 |
Weighted average number of Ordinary Share used in computing basic net income (loss) per Ordinary Share | 13,630,793 | 12,039,176 | 10,406,897 |
Weighted average number of Ordinary Share used in computing diluted net income (loss) per Ordinary Share | 13,630,793 | 12,351,566 | 10,779,547 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (2,415) | $ 2,901 | $ 1,915 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (92) | 39 | 201 |
Total other comprehensive income (loss) | (92) | 39 | 201 |
Comprehensive income (loss) | $ (2,507) | $ 2,940 | $ 2,116 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Share capital | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total |
Balance at Dec. 31, 2015 | $ 372 | $ 70,270 | $ (2,760) | $ (58,019) | $ 9,863 |
Balance, shares at Dec. 31, 2015 | 8,638,685 | ||||
Issuance of Ordinary Shares, net of issuance costs of upon follow-on public offering | $ 108 | 21,171 | 21,279 | ||
Issuance of Ordinary Shares, net of issuance costs of upon follow-on public offering, Shares | 2,090,909 | ||||
Exercise of warrants into Ordinary Shares | $ 16 | 1,069 | 1,085 | ||
Exercise of warrants into Ordinary Shares, shares | 310,985 | ||||
Exercise of options into Ordinary Shares | $ 25 | 3,304 | 3,329 | ||
Exercise of options into Ordinary Shares, shares | 508,149 | ||||
RSUs vested | $ 2 | (2) | |||
RSUs vested, shares | 37,500 | ||||
Share-based compensation and RSUs | 2,471 | 2,471 | |||
Net income (loss) | 1,915 | 1,915 | |||
Other comprehensive income (loss) | 201 | 201 | |||
Balance at Dec. 31, 2016 | $ 523 | 98,283 | (2,559) | (56,104) | 40,143 |
Balance, shares at Dec. 31, 2016 | 11,586,228 | ||||
Issuance of Ordinary Shares, net of issuance costs of upon follow-on public offering | $ 95 | 30,111 | 30,206 | ||
Issuance of Ordinary Shares, net of issuance costs of upon follow-on public offering, Shares | 1,661,536 | ||||
Exercise of options into Ordinary Shares | $ 7 | 884 | 891 | ||
Exercise of options into Ordinary Shares, shares | 109,487 | ||||
RSUs vested | $ 3 | (3) | |||
RSUs vested, shares | 52,724 | ||||
Share-based compensation and RSUs | 2,216 | 2,216 | |||
Net income (loss) | 2,901 | 2,901 | |||
Other comprehensive income (loss) | 39 | 39 | |||
Balance at Dec. 31, 2017 | $ 628 | 131,491 | (2,520) | (53,203) | 76,396 |
Balance, shares at Dec. 31, 2017 | 13,409,975 | ||||
Exercise of options into Ordinary Shares | $ 11 | 2,122 | 2,133 | ||
Exercise of options into Ordinary Shares, shares | 215,542 | ||||
RSUs vested | $ 4 | (4) | |||
RSUs vested, shares | 74,210 | ||||
Share-based compensation and RSUs | 2,121 | 2,121 | |||
Cumulative effect of changes in accounting principles (ASC 606) | 337 | 337 | |||
Net income (loss) | (2,415) | (2,415) | |||
Other comprehensive income (loss) | (92) | (92) | |||
Balance at Dec. 31, 2018 | $ 643 | $ 135,730 | $ (2,612) | $ (55,281) | $ 78,480 |
Balance, shares at Dec. 31, 2018 | 13,699,727 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Net of issuance costs upon follow-on public offering | $ 2,194 | $ 1,721 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (2,415) | $ 2,901 | $ 1,915 |
Adjustments to reconcile net income (loss) to net cash provided (used in) by operating activities: | |||
Depreciation | 657 | 537 | 286 |
Share-based compensation and RSUs | 2,121 | 2,216 | 2,471 |
Change in: | |||
Severance pay, net | (63) | 42 | 4 |
Trade receivables, net | 13 | (15,865) | (329) |
Other account receivables and prepaid expenses | 658 | (520) | 524 |
Inventories | 901 | (560) | 794 |
Trade payables | (182) | (1,150) | 1,273 |
Employees and payroll accruals | (622) | 524 | 999 |
Other accounts payable and accrued expenses | (848) | 1,385 | 266 |
Deferred revenue and advances from customers | (2,169) | (109) | 1,248 |
Net cash provided (used in) by operating activities | (1,949) | (10,599) | 9,451 |
Cash flows from investing activities: | |||
Repayment of (investment in) a short-term bank deposit | 40,000 | (40,000) | |
Purchase of property and equipment | (662) | (790) | (1,331) |
Net cash provided by (used in) investing activities | 39,338 | (40,790) | (1,331) |
Cash flows from financing activities: | |||
Proceeds from issuance of Ordinary Shares, net of issuance costs upon follow-on public offering | 30,206 | 21,279 | |
Exercise of warrants into Ordinary Shares | 1,085 | ||
Exercise of options into Ordinary Shares | 2,133 | 891 | 3,329 |
Net cash provided by financing activities | 2,133 | 31,097 | 25,693 |
Foreign currency translation adjustments on cash and cash equivalents | (145) | (15) | 346 |
Increase (decrease) in cash and cash equivalents | 39,377 | (20,307) | 34,159 |
Cash and cash equivalents and restricted bank deposit at beginning of the period | 22,611 | 42,918 | 8,759 |
Cash and cash equivalents and restricted bank deposit at end of the period | 61,988 | 22,611 | 42,918 |
(a) Non-cash investing activities: | |||
Purchase of property and equipment | 152 | 239 | 81 |
(b) Cash paid during the year for: | |||
Taxes on income | $ 25 | $ 83 | $ 24 |
General
General | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1: - GENERAL a. RADCOM Ltd. (the "Company") is an Israeli corporation which provides NFV and 5G-ready service assurance, cloud-native network intelligence solutions for Communication Service Providers ("CSPs"). The Company's solutions include RADCOM Service Assurance, a fully virtualized, on-demand service assurance solution that integrates an automated, and efficient data acquisition layer of virtual probes with a smart mediation layer thus providing critical customer and service insights; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments and control the visibility layer to perform dynamic, on-demand analysis of select datasets; and RADCOM Network Insights, a business intelligence solution offering smart insights for multiple use cases, enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The Company specializes in solutions for next-generation mobile and fixed networks, including LTE, LTE-A, VoLTE, IMS, VoIP, WiFi, VoWiFi, UMTS/GSM, mobile broadband and 5G. The Company's shares (the "Ordinary Shares") are listed on the Nasdaq Capital Market under the symbol "RDCM". The Company has wholly-owned subsidiaries in the United States and Brazil, that are primarily engaged in the sales, marketing, deployment and customer support of the Company's products in United States and Brazil. The Company also has a wholly-owned subsidiary in India, that primarily provides marketing, customer support and development services worldwide. Additionally, the Company has a wholly-owned subsidiary in Israel solely established for the purpose of making various investments, including securities purchases. b. In December 2015, the Company entered to a multi-year sales agreement with Amdocs Software Systems Limited ("Amdocs") for the resale of the Company's solutions to AT&T Services, Inc. ("AT&T"), a leading North American Tier-1 telecom operator (the "AT&T Engagement"). Since then, the Company signed additional agreements with Amdocs in connection with the AT&T Engagement. During 2018, 2017 and 2016, the Company recognized revenues in the amount of $16,296, $24,528 and $18,310 pursuant to the AT&T Engagement and the additional agreements, which represent approximately 48%, 66% and 62% of the total consolidated revenues of the Company, respectively. (See also Note 13c). On March 29, 2019 the Company entered into a series of agreements with AT&T to provide the Company's solutions to AT&T. The Company depends on a limited number of contract customers for selling its solution. If these customers become unable or unwilling to continue to buy the Company's solution, a loss of any significant customer, a significant decrease in business from any such customer, a reduction in customer revenue due to adverse changes in the market, economic or competitive conditions or other factors could adversely affect the Company's business, results of operations and financial position. c. Follow-on Public Offerings: In May 2016, a "shelf" registration statement covering the public sale of up to $50,000 of the Company's Ordinary Shares was declared effective by the U.S. Securities and Exchange Commission ("SEC"). Following such registration, during May 2016, the Company closed a follow-on public offering (as further described in Note 11b1 and Note 13e) for a total consideration of approximately $21,279, net of underwriting discounts, commissions and other offering expenses of $1,721 payable by the Company. In October 2017, the Company closed a follow-on public offering (as further described in Note 11b2) for a total consideration of approximately $30,206, net of underwriting discounts, commissions and other offering expenses of $2,194 payable by the Company. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars (“$” “dollar” or “dollars”): Most of the revenues of the Company and its subsidiaries, other than the Company’s subsidiary in Brazil, are denominated in U.S. dollars. Financing activities are made in U.S. dollars. Therefore, the Company’s management believes that the currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the dollar, which is used as the functional currency. Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are re-measured 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 its 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 the 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 and 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 bank deposit: Restricted bank deposit represents restricted cash which is pledged in favor of the bank that provides guarantees to the Company. f. Short-term bank deposit: Short-term bank deposit is a deposit with an original maturity of more than three months but equal or less than one year from the date of investment and which does not meet the definition of cash equivalents. The deposit is presented according to its terms of deposit. g. Concentration of credit risk: Financial instruments that may subject the Company to significant concentration of credit risk consist mainly of cash and cash equivalents, restricted bank deposit, short-term bank deposit, severance pay fund and trade receivables. Cash and cash equivalents 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. During the year ended December 31, 2018 and December 31, 2016, the Company recorded allowance for doubtful accounts of $10 and $9, respectively. No additional allowances for doubtful accounts were recorded during the year ended December 31, 2017. No bad debt expenses were recorded during the years ended December 31, 2018, 2017 and 2016. h. Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined on a “moving average” basis. Inventory write-offs are provided to cover technological obsolescence, excess inventories and discontinued products. Inventory write-off is measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and is charged to the cost of revenues. 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. No inventory write-offs were recorded during the year ended December 31, 2018. The total inventory write-offs during the years ended 2017 and 2016 amounted to $369 and $498, respectively. i. 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: % Computers and electronic equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements At the shorter of the lease period or useful life of the leasehold improvement j. 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 at the amount by which the carrying amount of the asset exceeds its fair value. During the years ended December 31, 2018, 2017 and 2016, no impairment losses were identified. k. Revenue recognition: The Company’s solution is sold to customers directly, through resellers and to lesser extent through distributors. Sales through resellers are considered final sells per revenue recognition criteria. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised goods or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five-step approach: a) Identify the contract with a customer: The Company generally considers either agreements or purchase orders, which in some cases are governed by master agreements, to be contracts with customers. In evaluating the contract with a customer, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration. b) Identify the performance obligations in the contract: At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligations usually are the provisions of the following: License for its software solutions (which may include significant customization), professional services, service type warranty and post-contract customer support, each of which are distinct, to be the identified performance obligations. c) Determine the transaction price: The transaction price is the amount of consideration to which the Company is entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Generally, the Company doesn’t grant its customers a right to return the products sold. However, in some cases, the arrangements may include refunds, liquidated damages, penalties or other damages if the Company fails to deliver future goods or services or if the goods or services fail to meet certain specifications to acceptance criteria. All of the above are accounted for as variable considerations, which may be considered as adjustments to the transaction price. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. d) Allocate the transaction price to the performance obligations in the contract: The Company’s selling price is highly variable. e) Recognize revenue when a performance obligation is satisfied: Projects: Products and related services Warranty and support: Deferred revenues represent unrecognized fees collected as well as other advances and payments received from customers, for which revenue has not yet been recognized. Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized. See also Note 3 for details about the impact from adopting the new revenue standard and other required disclosures. l. Cost of revenues: Cost of revenues are comprised of cost of third-party hardware and software license fees, maintenance fees related to such third-party hardware and software, employees’ salaries and related costs, shipping and handling costs, subcontractors, inventory write-offs, indirect taxes, importation taxes and royalties to the Israel Innovation Authority (the “IIA”). m. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, “Compensation — Stock Compensation”, which 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. The Company selected the Black-Scholes option-pricing model as the most appropriate fair value method for its share-options awards. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. Expected volatility was calculated based upon actual historical share price movements over the most recent periods ending on the grant date, equal to the expected option term. The expected term was generated by running the Monte Carlo model pursuant to which historical post-vesting forfeitures and suboptimal exercise factor are estimated by using historical option exercise information. The suboptimal exercise factor is the ratio by which the share price must increase over the exercise price before employees are expected to exercise their share options. The expected term of the options granted is derived from the output of the options valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the expected term of the options. Forfeitures account as they occur. Historically the Company has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore uses an expected dividend yield of zero in the option-pricing model. No options were granted in 2018. The fair value for options granted in 2017 and 2016 is estimated at the date of grant with the following weighted average assumptions: 2017 2016 Dividend yield 0% 0% Expected volatility 46.4%-55.9% 50.7%-59.4% Risk-free interest 1.6%-2.1% 0.8%-1.4% Expected life (in years) 3.43-4.76 2.79-4.99 n. Research and development costs: Research and development costs are charged to the statement of operations as incurred except royalty-bearing participation from the IIA as described in Note 2o. 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 have been insignificant. Therefore, all research and development costs have been expensed. o. Government grants: The Company receives royalty-bearing grants, which represent participation of the IIA in approved programs for research and development. These amounts are recognized on the accrual basis as a reduction of research and development costs as such costs are incurred. Royalties to the IIA are recorded under cost of revenues, when the related sales are recognized (see also Note 9a1). During the years 2012 to 2017, the Company also received grants from the Israeli Ministry of Economy (the “MOE”), up to 50% of relevant marketing expenses. These grants were presented as a reduction of marketing expenses and amounted to $6 and $75 for the years ended December 31, 2017 and 2016, respectively (see also Note 9a2). p. Income (loss) per share: Basic and diluted income (loss) per Ordinary Share is 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 weighted average number of shares related to the outstanding options and restricted share units (“RSUs”) excluded from the calculation of diluted net income (loss) per share was, 731,542 and 70,801 as of December 31, 2018 and 2017, respectively. As of December 31, 2016, there were no anti-dilutive securities. q. 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 carryforwards. 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 full valuation allowance to reduce deferred tax assets to the extent it believes it is more likely than not that such benefits will be realized. r. Income tax uncertainties: In accordance with ASC 740, “Income Taxes”, the Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% of the amount likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2018 and 2017, no liability for unrecognized tax benefits was recorded. 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 provides that the Company’s contributions to the 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 recorded as part of the balance sheet, as the Company is legally released from its severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership of the amounts deposited. Severance expenses for the years ended December 31, 2018, 2017 and 2016 amounted to $1,065, $1,007 and $905, respectively. t. Fair value of financial instruments: The financial instruments of the Company consist mainly of cash and cash equivalents, restricted bank deposit, short-term bank deposit, trade receivables, trade payables 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. Legal contingencies: From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. The Company’s estimations and related accruals if any are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events relating to a particular matter. v. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC 220, “Comprehensive Income”, which establishes standards for the reporting and displays of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its only item of other comprehensive income relates to foreign currency translation adjustment and gains or losses on intercompany foreign currency transactions that are of a long-term investment nature in connection with its subsidiary in Brazil. w. Recently issued and adopted accounting standards: 1. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard replaced the revenue recognition guidance in US GAAP under ASC Topic 605 and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized to retained earnings in the beginning of the period of initial application. Subsequently, the FASB issued several additional ASUs related to ASU No. 2014-09, collectively referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2018. On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method and applied the standard to those contracts which were not substantially completed as of January 1, 2018 and recognized the cumulative effect of initial adoption as an adjustment to the opening balance of accumulated deficit as of such date. As a result of this adoption, the Company revised its accounting policy for revenue recognition as detailed in Note 2k (see also Note 3). 2. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 effective January 1, 2018. The adoption of this new guidance had an immaterial impact on the Company’s consolidated financial statements. 3. In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in ASC 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC 718. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of this new guidance had no impact on the Company’s consolidated financial statements. x. New accounting standards not yet effective: In February 2016, the FASB issued ASU No. 2016-02 (Topic 842) “Leases” (“ASU 2016-02”). ASU 2016-02 supersedes the lease requirements in ASC 840, “Leases”. According to ASU 2016-02, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Lessees will also recognize interest expense and depreciation expense separately. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company will implement ASU 2016-02 on January 1, 2019 by using the modified retrospective method, with right-of-use assets measured at an amount equal to the lease liability, with certain relief options offered in ASU 2016-02 including certain available transitional practical expedients. The Company expects adoption of the standard to have a material impact on its consolidated balance sheets which will result in the recognition of lease assets and liabilities in an amount within the range of $5,600 to $6,200. The most significant impact from recognition of lease assets and liabilities relates to real estate and car leases. However, the Company does not anticipate that the adoption of this standard will have a material impact on the operating expenses in its consolidated statements of operations and its cash flows since the expense recognition under this new standard will be similar to current practice. The Company’s financial income (expenses), net will be impacted by the revaluation of the lease liabilities in non-dollar denominated currencies. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
REVENUES | NOTE 3: - REVENUES The most significant impact of the standard on the Company’s financial statements relates to differences in timing of revenue recognition under the new standard as disclosed in the tables below. Balance as of December 31, 2017 Adjustments following the adoption of ASC 606 Balance as of January 1, 2018 Deferred revenue and advances from customers $ (2,601 ) $ 80 $ (2,521 ) Trade receivables, net 20,266 233 20,499 Other accounts receivable and prepaid expenses 2,685 24 2,709 Accumulated deficit $ 53,203 $ (337 ) $ 52,866 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s consolidated statements of operations, cash flows, and balance sheets were as follows: Year ended December 31, 2018 As reported Balances before adoption of ASC 606 Effect of change Statements of operations Revenues - Products and related services $ 13,529 $ 13,068 $ 461 Revenues - Warranty and support 8,303 8,311 (8 ) Cost of revenues - Products and related services 4,851 4,838 13 Sales and marketing, net 11,426 11,392 34 Net loss (2,415 ) (2,821 ) 406 Loss per share: Basic (0.18 ) (0.21 ) 0.03 Diluted (0.18 ) (0.21 ) 0.03 Cash flows Net loss (2,415 ) (2,821 ) 406 Changes in assets and liabilities: Trade receivables, net 13 316 (303 ) Other account receivables and prepaid expenses 658 624 34 Other accounts payables and accrued expenses (848 ) (861 ) 13 Deferred revenue and advances from customers (2,169 ) (2,019 ) (150 ) December 31, 2018 As reported Balances before adoption of ASC 606 Effect of change Balance sheets Trade receivables, net $ 20,381 $ 19,845 $ 536 Other accounts receivable and prepaid expenses 1,766 1,776 (10 ) Deferred revenues and advances from customers (266 ) (596 ) 330 Other accounts payable and accrued expenses (2,281 ) (2,268 ) (13 ) Deferred revenues – long term (100 ) - (100 ) Accumulated deficit $ 55,281 $ 56,024 $ (743 ) The following table presents the significant changes in the deferred revenue balance during the year ended December 31, 2018: Year ended December 31, 2018 Balance, beginning of the period $ 2,622 Cumulative effect of changes in accounting principles (ASC 606) (80 ) New performance obligations 345 Reclassification to revenue as a result of satisfying performance obligation (2,521 ) Balance, end of the period 366 Less: long-term portion of deferred revenue (100 ) Current portion, end of the period $ 266 As of December 31, 2018, the Company had $10,859 of remaining performance obligations not yet satisfied or partly satisfied related to revenues. The Company expects to recognize approximately 72% of this amount as revenues during the next 12 months and the rest thereafter. |
Short-Term Bank Deposit
Short-Term Bank Deposit | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK DEPOSIT | NOTE 4: - SHORT-TERM BANK DEPOSIT December 31, 2018 2017 Deposit amount $ - $ 40,000 Interest rate (%) - 2.28 Maturity date - December 27, 2018 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5: - INVENTORIES December 31, 2018 2017 Finished products (*) $ 251 $ 1,199 $ 251 $ 1,199 (*) Includes amounts of $35 and $612 for 2018 and 2017, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
Other Accounts Receivable and P
Other Accounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 6: - OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2018 2017 Indirect taxes $ 667 $ 980 Grant receivables 10 740 Prepaid expenses and advances to suppliers 752 460 Others 337 505 $ 1,766 $ 2,685 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7: - PROPERTY AND EQUIPMENT, NET Composition of assets, grouped by major classification, is as follows: December 31, 2018 2017 Cost: Computers and electronic equipment $ 3,122 $ 2,719 Office furniture and equipment 294 231 Leasehold improvements 169 97 3,585 3,047 Accumulated depreciation: Computers and electronic equipment 1,640 1,024 Office furniture and equipment 93 83 Leasehold improvements 20 16 1,753 1,123 $ 1,832 $ 1,924 Depreciation expenses for the years ended December 31, 2018, 2017 and 2016 amounted to $657, $537 and $286, respectively. |
Other Accounts Payable and Accr
Other Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8: - OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2018 2017 Royalties - IIA payable $ 761 $ 1,096 Commissions to distributors 430 429 Accrued expenses 1,090 1,903 $ 2,281 $ 3,428 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9: - COMMITMENTS AND CONTINGENCIES a. Royalty commitments: 1. The Company receives research and development grants from the IIA. In consideration for the research and development grants received from the IIA, the Company has undertaken to pay royalties as a percentage of revenues from products developed from research and development projects financed. If the Company does not generate sales of products developed with funds provided by the IIA, the Company is not obligated to pay royalties or repay the grants. Royalties are payable at the rate of 3% from the time of commencement of sales of all of the Company’s products until the cumulative amount of the royalties paid equals 100% of the dollar-linked amounts of the grants received, plus interest at LIBOR. As of December 31, 2018, the Company’s total commitment with respect to royalty-bearing participation received or accrued, net of royalties paid or accrued, amounted to $48,452. The total research and development grants that the Company has received from the IIA as of December 31, 2018 were $44,833. The accumulated interest as of December 31, 2018, was $18,516 and the accumulated royalties paid to the IIA were $14,897. Royalty expenses relating to the IIA grants included in cost of revenues during the years ended December 31, 2018, 2017 and 2016 were $922, $1,303 and $1,033, respectively. In May 2010, the Company received a notice from the IIA regarding alleged miscalculations of the amount of royalties paid by the Company to the IIA for the years 1992-2009 and the revenues basis on which the Company had to pay royalties. The Company believes that all royalties due to the IIA from the sale of products developed with funding provided by the IIA during such years were properly paid or were otherwise accrued. During 2011, the Company reviewed with the IIA the alleged miscalculations. The Company assessed the merits of the aforesaid arguments raised by the IIA and recorded a liability for an estimated loss. 2. In April 2012 and in April 2014, the MOE approved the Company’s application for participation in funding the setting up of the Company’s India subsidiary and China branch as part of a designated grants plan for setting up and establishing a marketing agency in India and China. 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 and China, based on the approved budget for the plan over a period of three years. The Company is currently in the process of winding down its operations at the China office. The total marketing grants that the Company had received from the MOE as of December 31, 2017 were in the amount of $668. No further grants are expected to be received from such plans. The Company is obligated to pay to the MOE royalties of 3% on the increased sales in the target market, with respect to the year during which the grant was approved over a period of five years but not more than the total linked amount of the grant received. During the year ended December 31, 2018, the Company recorded an amount of $9 as royalty expenses to be paid to the MOE. 3. 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 the BIRD-F’s grant, linked to the United States Consumer Price Index (“CPI”) 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 the 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 (CPI linked amount of $566). According to the above, as of December 31, 2018, the total royalties commitment the Company may be required to pay is an amount of up to $849 out of which $468 was paid by the Company in previous years. The remaining commitment with respect to royalty-bearing participation received, net of royalties paid or accrued, amounted to $381 as of December 31, 2018. Since 2003, the Company has not generated sales of products developed with the funds provided by the BIRD-F. Therefore, the Company has not been obligated to pay royalties or repay the grant since such date. b. Operating leases: Premises occupied by the Company and its subsidiaries are leased under various agreements, part of which are with related parties (see also Note 13). The rental agreements for the premises of the Company and its subsidiaries expire up to April 30, 2023. The Company also has several motor vehicle lease agreements for up to 48 months period. As of December 31, 2018, the Company maintains 30 leased cars. As of December 31, 2018, the future minimum aggregate lease commitments under non-cancelable operating lease agreements are as follows: As of the year ended December 31, Premises Motor vehicles Total 2019 928 66 994 2020 865 - 865 2021 123 - 123 2022 123 - 123 2023 41 - 41 $ 2,080 $ 66 $ 2,146 Total lease expenses amounted to $1,341, $1,248 and $1,023 for the years ended December 31, 2018, 2017 and 2016, respectively. c. Bank guarantee: As of December 31, 2018, the Company established a bank guarantee to the Israeli Customs Authority that amounted to $33, which will expire on April 30, 2019. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 10: - TAXES ON INCOME a. Israeli taxation: Taxable income of the Company is subject to the Israeli corporate tax at the rate as follows: 2016 – 25%, 2017 - 24% and 2018 – 23%. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (“the Law”): In August 2013, the Law for Changing National Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 2013 which includes Amendment 71 to the Law (“Amendment 71”) was enacted. Per Amendment 71, the tax rate on preferred income from a preferred enterprise in 2014-2016 will be 9% in certain areas in Israel (“Development Area A”) and 16% in other areas. In 2017, the tax rate at Development Area A was reduced to 7.5%. The Company may claim the tax benefits offered by Amendment 71 in its tax returns, provided that its facilities meet the criteria for tax benefits set out by Amendment 71. A company is also granted a right to approach the Israeli Tax Authorities for a pre-ruling regarding its eligibility for benefits under Amendment 71 (and in some cases is required to apply for such approval). In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law (“Amendment 73”) was published. Amendment 73, which came into effect in January 2017, prescribes special tax tracks for technological enterprises, granting such enterprises a tax rate of 7.5% (in Development Area A) and 12% (in other areas). Under Amendment 73, any dividends distributed to “foreign companies”, as defined in such law, by companies having over 90% foreign (i.e., non-Israeli) ownership, deriving from income from the technological enterprises will be subject to tax at a rate of 4%. In order to comply with the new track determined in Amendment 73, a company must meet certain criteria defined within law (among others R&D expenses and employees at a certain rate). The Company has yet to claim the above-mentioned tax benefits offered and accordingly such reduced taxes were not considered in the computation of the deferred taxes and valuation allowance as of December 31, 2018. In accordance with the tax laws, tax returns submitted up to and including the 2013 tax year can be regarded as final. As of December 31, 2018, no final tax assessments have been received for such years. Tax loss carryforward: As of December 31, 2018, the Company’s estimated tax loss carryforward and capital loss were $31,234 and $716, respectively. Such losses can be carried forward indefinitely to offset any future taxable income of the Company. Research and development expenses carryforward for tax purposes in Israel amounted to approximately $8,837. b. Foreign subsidiaries: U.S. subsidiary: 1. The U.S. subsidiary is taxed under United States federal and state tax rules. Income tax is calculated based on a U.S. federal tax rate of 21%. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law making significant changes to U.S. income tax law. Changes include, but are not limited to, a U.S. federal corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. 2. The U.S. subsidiary’s estimated federal tax loss carryforward amounted to $7,682 as of December 31, 2018. Such losses are available to offset any future U.S. taxable income of the U.S. subsidiary and will expire in the years 2019-2026 for federal tax purposes. 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 2014 tax year can be regarded as final. Brazilian subsidiary: 1. The Brazilian subsidiary is taxed under Brazilian tax rules. Income tax is calculated based on a 34% rate. 2. The Brazilian subsidiary’s tax loss carryforward amounted to $3,336 as of December 31, 2018, for tax purposes. Tax losses may be carried forward indefinitely but can only be offset up to 30% of the subsidiary’s taxable income for a tax period. 3. The Brazilian subsidiary has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2013 tax year can be regarded as final. Indian subsidiary: 1. The Indian subsidiary is taxed under Indian tax rules. Income tax is calculated based on a 25% rate. 2. The Indian subsidiary has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2016 tax year can be regarded as final. 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: December 31, 2018 2017 Deferred tax assets: Carryforward tax losses $ 10,096 $ 10,591 Research and development credit 2,032 1,120 Accrued social benefits and other 472 909 12,600 12,620 Less - valuation allowance (12,600 ) (12,620 ) Net deferred tax assets $ - $ - The net change in the total valuation allowance for the year ended December 31, 2018 was a decrease of $20. In assessing the realization 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. Taxes on income are comprised from state tax accrual with regards to the U.S. subsidiary, withholding taxes that were deducted by the Company’s customers as well as tax expenses of the Indian subsidiary. e. The components of income (loss) before income taxes are as follows: Year ended December 31, 2018 2017 2016 Domestic $ (2,372 ) $ 4,751 $ 3,018 Foreign 20 (1,767 ) (1,079 ) Income (loss) before income taxes $ (2,352 ) $ 2,984 $ 1,939 f. Reconciliation of the theoretical tax benefit and the actual tax expense: Year ended December 31, 2018 2017 2016 Income (loss) before income taxes, as reported in the statements of operations $ (2,352 ) $ 2,984 $ 1,939 Statutory tax rate in Israel 23 % 24 % 25 % Theoretical tax benefit $ (541 ) $ 716 $ 485 Increase (decrease) in income taxes resulting from: Tax rate differential on foreign subsidiaries (55 ) (166 ) (98 ) Non-deductible expenses and other permanent differences 446 987 683 Differences in taxes arising from foreign currency exchange, net 208 (856 ) (324 ) Utilization of carry forward tax losses and other temporary differences for which valuation allowance was provided (20 ) (554 ) (1,102 ) Withholding taxes that were deducted by the Company’s customers 10 32 6 Other 15 (76 ) 374 Income taxes $ 63 $ 83 $ 24 g. Accounting for uncertainty in income taxes: For the years ended December 31, 2018, 2017 and 2016, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits have been accrued. The Company does not expect that its position related to unrecognized tax benefits will change significantly within the next 12 months. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11: - SHAREHOLDERS’ EQUITY a. The number of Ordinary Shares outstanding at December 31, 2018 and 2017 does not include 5,189 Ordinary Shares issued, which are held by a subsidiary, and 30,843 Ordinary Shares issued which are held by the Company. Ordinary Shares confer all rights to their holders, e.g. voting, equity and receipt of dividends. b. Follow-on public offerings: 1. On May 25, 2016, the Company closed a follow-on public offering of 2,090,909 Ordinary Shares, at an offering price of $11.00 per share for a total consideration of approximately $21,279, net of issuance costs of $1,721. (See also Note 13e). 2. On October 20, 2017, the Company entered an underwriting agreement related to a follow-on public offering of 1,444,814 Ordinary Shares, at an offering price of $19.50 per share for gross proceeds that amounted to $28,174, before underwriting discounts and commissions and other offering expenses that amounted to $1,940 (the “2017 Public Offering”). Under such agreement, the Company granted the underwriters an option, exercisable for 30 days, to purchase up to an additional 216,722 Ordinary Shares at $19.50 per share. On October 25, 2017, upon the closing of the 2017 Public Offering, the Company issued 1,661,536 Ordinary Shares, including 216,722 shares sold pursuant to full exercise of the underwriters’ option to purchase additional shares, for a total consideration of approximately $30,206, net of issuance costs of $2,194. c. Share option plan: 1. The Company has granted options under an option plan as follows: a) 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 provides for the grant of options to purchase Ordinary Shares to provide 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”. On February 19, 2015, the Board adopted an amendment to the 2013 Share Option Plan pursuant to which the Company may grant options to purchase its Ordinary Shares and RSUs to its employees, directors, consultants and contractors. The 2013 Share Option Plan expires on April 2, 2023. b) During the year ended December 31, 2017, the Company’s Board approved the grant of 179,002 options and 105,428 RSUs to certain employees and officers of the Company. The options were granted at exercise prices ranging between $18.90 to $19.85 per share, which was equal to the market value of the Company’s Ordinary Shares at the date of grant. Such options and RSUs have vesting schedules of four years, commencing as of the date of grant and an exercise term for the options of five years from date of grant. c) During the year ended December 31, 2018, the Company’s Board approved the grant of 32,700 RSUs to certain employees and officers of the Company. Such RSUs have vesting schedules of four years, commencing as of the date of grant. As of December 31, 2018, the total number of shares reserved under the 2013 Share Option Plan, is 2,450,000, out of which 947,245 Ordinary Shares are still available for future grants under the 2013 Share Option Plan as of that date. 2. Stock options for the year ended December 31, 2018 under the Company’s plans are as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding as of January 1, 2018 679,552 $ 13.20 3.35 $ 4,517 Granted - - Exercised (215,542 ) 9.87 Expired and forfeited (48,500 ) 15.76 Outstanding as of December 31, 2018 415,510 $ 14.62 2.69 $ 3 Vested and expected to vest at December 31, 2018 415,510 $ 14.62 2.69 $ 3 Exercisable as of December 31, 2018 159,058 $ 11.81 2.02 $ 3 The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the deemed fair value of the Company’s Ordinary Shares on the last day of fiscal 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. This amount is impacted by the changes in the fair market value of the Company’s Ordinary Shares. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2018 represents the intrinsic value of 2,250 outstanding and exercisable options that are in-the-money as of December 31, 2018. 3. As of December 31, 2018, stock options under the 2013 Share Option Plan are as follows: Options outstanding at December 31, 2018 Options exercisable at December 31, 2018 Exercise price Number outstanding Weighted average exercise price Weighted average remaining contractual life Number exercisable Weighted average exercise price Weighted average remaining contractual life $ $ In years $ In years 6.00 2,250 6.00 0.56 2,250 6.00 0.56 11.12-14.52 259,558 11.86 2.22 156,808 11.89 2.05 18.90-19.85 153,702 19.42 3.52 - - - 415,510 159,058 4. RSUs for the year ended December 31, 2018 under the Company’s 2013 Share Option Plan are as follows: Number of RSUs Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding as of January 1, 2018 240,054 1.74 $ 4,765 Granted 32,700 Vested (74,210 ) Cancelled (29,675 ) Outstanding as of December 31, 2018 168,869 1.40 $ 1,253 Vested and expected to vest as of December 31, 2018 168,869 1.40 $ 1,253 5. No options were granted during the year ended December 31, 2018. The weighted average fair values of options granted during the years ended December 31, 2017 and 2016 were, $8.08 and $6.68, respectively. Grants of options in 2017 and 2016 were at exercise prices equal to the market value of the Ordinary Shares at the date of grant. 6. The weighted average fair values of RSUs granted during the year ended December 31, 2018, 2017 and 2016 were $19.68, $19.52 and $14.69 per share, respectively. 7. The following table summarizes the department allocation of the Company’s share-based compensation charges: Year ended December 31, 2018(*) 2017(*) 2016(*) Cost of revenues $ 112 $ 189 $ 118 Research and development, net 808 473 625 Sales and marketing, net 698 499 199 General and administrative 503 1,055 1,529 $ 2,121 $ 2,216 $ 2,471 (*) Including $1,359, $1,335 and $1,331 of compensation cost related to RSUs for the year ended December 31, 2018, 2017 and 2016, respectively. 8. As of December 31, 2018, there are $1,967 of total unrecognized costs related to non-vested share-based compensation and RSUs that are expected to be recognized over a weighted average period of 1.03 years. |
Selected Statements of Operatio
Selected Statements of Operations Data | 12 Months Ended |
Dec. 31, 2018 | |
Selected Statements of Operations Data [Abstract] | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 12: - SELECTED STATEMENTS OF OPERATIONS DATA a. The Company applies ASC 280, “Segment Reporting”. The Company operates in one reportable segment (see also Note 1 for a brief description of the Company’s business). b. The following table presents total revenues for the years ended December 31, 2018, 2017 and 2016 and long-lived assets as of December 31, 2018 and 2017: 1. Revenues by geographic region are as follows (prior period amounts have not been adjusted under the modified retrospective method): Year ended December 31, 2018 2017 2016 North America $ 22,164 $ 25,157 $ 19,167 Europe 362 778 946 Asia (excluding Philippines) 923 374 355 Philippines 6,235 4,501 4,959 South America (excluding Brazil) 671 883 785 Brazil 2,908 1,783 2,496 Other (including Israel) 787 3,757 802 $ 34,050 $ 37,233 $ 29,510 Total revenues are attributed to geographic areas based on the location of the end-customer. In 2018, 2017 and 2016, the amount of export revenues represented 98%, 90% and 98% of the Company’s total revenues. 2. Major customer data as a percentage of total revenues: In 2018, the Company had two customers in the United States and one in the Philippines that amounted 63% and 18%, respectively, of the total consolidated revenues. In 2017, the Company had one customer in the United States and one in the Philippines that amounted 66% and 12%, respectively, of the total consolidated revenues. In 2016, the Company had one customer in the United States and one in the Philippines that amounted 62% and 17%, respectively, of the total consolidated revenues. 3. Property and equipment, net, by geographic areas: Year ended December 31, 2018 2017 Israel $ 1,535 $ 1,781 Other 297 143 $ 1,832 $ 1,924 c. Financial income, net: Years ended December 31, 2018 2017 2016 Financial Income: Interest income $ 1,455 $ 572 $ 489 Foreign currency exchange gain 784 215 424 2,239 787 913 Financial expenses: Bank charges (15 ) (58 ) (23 ) Foreign currency exchange loss (1,088 ) (340 ) (74 ) (1,103 ) (398 ) (97 ) $ 1,136 $ 389 $ 816 d. Net income (loss) per Ordinary Share: The following table sets forth the computation of basic and diluted net income (loss) per Ordinary Share: Years ended December 31, 2018 2017 2016 Numerator: Numerator for basic net income (loss) per Ordinary Share $ (2,415 ) $ 2,901 $ 1,915 Effect of dilutive securities: Share-based compensation granted - - - Numerator for dilutive net income (loss) per Ordinary Share $ (2,415 ) $ 2,901 $ 1,915 Denominator: Denominator for dilutive net income (loss) per Ordinary Share - weighted average number of Ordinary Shares 13,630,793 12,039,176 10,406,897 Effect of dilutive securities: Share-based compensation granted - 312,390 372,650 Denominator for diluted net income (loss) per Ordinary Share - adjusted weighted average number of Ordinary Shares 13,630,793 12,351,566 10,779,547 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 13: - 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. 1. The Company is a party to a reseller agreement with Allot Communications Inc, (“Allot”), a company to which the Company’s controlling shareholder is an interested party, giving Allot the right to distribute the Company’s products. Revenues related to this reseller agreement are included in Note 13g below as “Revenues”. For the years ended December 31, 2018, 2017 and 2016, revenues aggregated to amounts of $73, $31 and $139, respectively. Subsequent to the balance sheet date, effective January 2019, Allot is no longer considered a related party. 2. Certain premises occupied by the Company and its U.S. subsidiary are rented from related parties (see also Note 9b). The U.S. subsidiary sub-leased certain premises to a related party until April 30, 2017. The aggregate net amounts of lease and maintenance expenses were $967, $843 and $624 in 2018, 2017 and 2016, respectively. The amount in 2018 includes $40 reimbursement of expenses in connection with the renovation of the U.S. subsidiary office. Such amounts expensed by the Company are disclosed in Note 13g below as part of “Expenses” and “Capital expenses”. 3. Certain entities within the RAD-BYNET Group provide the Company and its U.S. subsidiary with administrative and IT services. The aggregate amounts of administrative and IT services provided were $32, $39 and $35 in 2018, 2017 and 2016, respectively. Such amounts expensed by the Company are disclosed in Note 13g below as part of “Expenses” and “Capital expenses”. 4. The Company purchases certain products and services from members of the RAD-BYNET Group. The aggregate amounts of such purchases were approximately $2, $15 and $1 in 2018, 2017 and 2016 respectively. Such amounts expensed by the Company are disclosed in Note 13g below as part of “Expenses”. b. The executive chairman of the Board (the “Executive Chairman”) since September 10, 2015 is, among other things, also the life partner of the Company’s former chairman of the Board, a currently serving director and a controlling shareholder of the Company. The Executive Chairman is entitled to a fixed monthly salary. During the years ended December 2018, 2017 and 2016 the Company recorded salary expenses with respect to the Executive Chairman in the amount of $108, $183 and $180, respectively. Such amounts expensed by the Company are disclosed in Note 13g below as part of “Expenses”. c. Since 2015, the Company entered several agreements with Amdocs to sell its solution, pursuant to which the Company recorded revenues in the amount of $16,296, $24,528 and $18,310 related to the AT&T Engagement during the years ended December 31, 2018, 2017 and 2016, respectively (See also Note 1b). Revenues related to this engagement are included in Note 13g below as “Revenues”. The Company’s controlling shareholder and director served as a director in Amdocs until January 31, 2019. d. The Company’s Chief Financial Officer from October 2018 is a member of the board and Chairman of the Audit Committee of Matrix IT Ltd., (“Matrix”). The Company has entered into certain limited term engagements with Matrix or its affiliated companies in connection with specific development projects and/or use of software platform. The aggregate amount of the engagements entered with Matrix or its affiliates as a related party, aggregated to $4 in 2018. Such amount expensed by the Company is disclosed in Note 13g below as part of “Expenses”. e. As described in Note 11b1, on May 25, 2016, the Company closed its follow-on public offering at a price of $11.00 per share, pursuant to which an aggregate net amount of $21,279 was raised. The Company’s controlling shareholder and director invested $2,200 for the purchase of 200,000 Ordinary Shares in such public offering. f. Balances with related parties: December 31, 2018 2017 Assets: Trade receivables, net $ 13,596 $ 14,329 Other accounts receivable and prepaid expenses $ - $ 2 Liabilities: Trade payables $ 81 $ 63 Other accounts payables and accrued expenses $ 12 $ 140 g. Transactions with related parties: Year ended December 31, 2018 2017 2016 Revenues $ 16,369 $ 24,559 $ 18,461 Expenses: Cost of revenues $ 163 $ 201 $ 210 Operating expenses: Research and development, net $ 507 $ 371 $ 224 Sales and marketing, net $ 212 $ 217 $ 142 General and administrative $ 191 $ 293 $ 250 Capital expenses $ 40 $ 9 $ 21 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14: - SUBSEQUENT EVENTS During February 2019, the Company’s Board approved the grant of 377,020 RSUs to certain employees, officers and Board members of the Company out of which 113,800 RSUs are subject to the approval of the shareholders. Such RSUs have vesting schedules of four years, commencing as of the date of grant. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP 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 (''$'' ''dollar'' or ''dollars'') | b. Financial statements in U.S. dollars (“$” “dollar” or “dollars”): Most of the revenues of the Company and its subsidiaries, other than the Company’s subsidiary in Brazil, are denominated in U.S. dollars. Financing activities are made in U.S. dollars. Therefore, the Company’s management believes that the currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the dollar, which is used as the functional currency. Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are re-measured 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 its 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 the shareholders’ equity. |
Principles of consolidation | 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. |
Cash and cash equivalents | d. Cash and 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 bank deposit | e. Restricted bank deposit: Restricted bank deposit represents restricted cash which is pledged in favor of the bank that provides guarantees to the Company. |
Short-term bank deposit | f. Short-term bank deposit: Short-term bank deposit is a deposit with an original maturity of more than three months but equal or less than one year from the date of investment and which does not meet the definition of cash equivalents. The deposit is presented according to its terms of deposit. |
Concentration of credit risk | g. Concentration of credit risk: Financial instruments that may subject the Company to significant concentration of credit risk consist mainly of cash and cash equivalents, restricted bank deposit, short-term bank deposit, severance pay fund and trade receivables. Cash and cash equivalents 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. During the year ended December 31, 2018 and December 31, 2016, the Company recorded allowance for doubtful accounts of $10 and $9, respectively. No additional allowances for doubtful accounts were recorded during the year ended December 31, 2017. No bad debt expenses were recorded during the years ended December 31, 2018, 2017 and 2016. |
Inventories | h. Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined on a “moving average” basis. Inventory write-offs are provided to cover technological obsolescence, excess inventories and discontinued products. Inventory write-off is measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and is charged to the cost of revenues. 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. No inventory write-offs were recorded during the year ended December 31, 2018. The total inventory write-offs during the years ended 2017 and 2016 amounted to $369 and $498, respectively. |
Property and equipment | i. 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: % Computers and electronic equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements At the shorter of the lease period or useful life of the leasehold improvement |
Impairment of long-lived assets | j. 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 at the amount by which the carrying amount of the asset exceeds its fair value. During the years ended December 31, 2018, 2017 and 2016, no impairment losses were identified. |
Revenue recognition | k. Revenue recognition: The Company’s solution is sold to customers directly, through resellers and to lesser extent through distributors. Sales through resellers are considered final sells per revenue recognition criteria. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised goods or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five-step approach: a) Identify the contract with a customer: The Company generally considers either agreements or purchase orders, which in some cases are governed by master agreements, to be contracts with customers. In evaluating the contract with a customer, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration. b) Identify the performance obligations in the contract: At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligations usually are the provisions of the following: License for its software solutions (which may include significant customization), professional services, service type warranty and post-contract customer support, each of which are distinct, to be the identified performance obligations. c) Determine the transaction price: The transaction price is the amount of consideration to which the Company is entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Generally, the Company doesn’t grant its customers a right to return the products sold. However, in some cases, the arrangements may include refunds, liquidated damages, penalties or other damages if the Company fails to deliver future goods or services or if the goods or services fail to meet certain specifications to acceptance criteria. All of the above are accounted for as variable considerations, which may be considered as adjustments to the transaction price. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. d) Allocate the transaction price to the performance obligations in the contract: The Company’s selling price is highly variable. e) Recognize revenue when a performance obligation is satisfied: Projects: Products and related services Warranty and support: Deferred revenues represent unrecognized fees collected as well as other advances and payments received from customers, for which revenue has not yet been recognized. Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized. |
Cost of revenues | l. Cost of revenues: Cost of revenues are comprised of cost of third-party hardware and software license fees, maintenance fees related to such third-party hardware and software, employees’ salaries and related costs, shipping and handling costs, subcontractors, inventory write-offs, indirect taxes, importation taxes and royalties to the Israel Innovation Authority (the “IIA”). |
Share-based compensation | m. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, “Compensation — Stock Compensation”, which 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. The Company selected the Black-Scholes option-pricing model as the most appropriate fair value method for its share-options awards. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. Expected volatility was calculated based upon actual historical share price movements over the most recent periods ending on the grant date, equal to the expected option term. The expected term was generated by running the Monte Carlo model pursuant to which historical post-vesting forfeitures and suboptimal exercise factor are estimated by using historical option exercise information. The suboptimal exercise factor is the ratio by which the share price must increase over the exercise price before employees are expected to exercise their share options. The expected term of the options granted is derived from the output of the options valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the expected term of the options. Forfeitures account as they occur. Historically the Company has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore uses an expected dividend yield of zero in the option-pricing model. No options were granted in 2018. The fair value for options granted in 2017 and 2016 is estimated at the date of grant with the following weighted average assumptions: 2017 2016 Dividend yield 0% 0% Expected volatility 46.4%-55.9% 50.7%-59.4% Risk-free interest 1.6%-2.1% 0.8%-1.4% Expected life (in years) 3.43-4.76 2.79-4.99 |
Research and development costs | n. Research and development costs: Research and development costs are charged to the statement of operations as incurred except royalty-bearing participation from the IIA as described in Note 2o. 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 have been insignificant. Therefore, all research and development costs have been expensed. |
Government grants | o. Government grants: The Company receives royalty-bearing grants, which represent participation of the IIA in approved programs for research and development. These amounts are recognized on the accrual basis as a reduction of research and development costs as such costs are incurred. Royalties to the IIA are recorded under cost of revenues, when the related sales are recognized (see also Note 9a1). During the years 2012 to 2017, the Company also received grants from the Israeli Ministry of Economy (the “MOE”), up to 50% of relevant marketing expenses. These grants were presented as a reduction of marketing expenses and amounted to $6 and $75 for the years ended December 31, 2017 and 2016, respectively (see also Note 9a2). |
Income (loss) per share | p. Income (loss) per share: Basic and diluted income (loss) per Ordinary Share is 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 weighted average number of shares related to the outstanding options and restricted share units (“RSUs”) excluded from the calculation of diluted net income (loss) per share was, 731,542 and 70,801 as of December 31, 2018 and 2017, respectively. As of December 31, 2016, there were no anti-dilutive securities. |
Income taxes | q. 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 carryforwards. 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 full valuation allowance to reduce deferred tax assets to the extent it believes it is more likely than not that such benefits will be realized. |
Income tax uncertainties | r. Income tax uncertainties: In accordance with ASC 740, “Income Taxes”, the Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% of the amount likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2018 and 2017, no liability for unrecognized tax benefits was recorded. |
Severance pay | 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 provides that the Company’s contributions to the 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 recorded as part of the balance sheet, as the Company is legally released from its severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership of the amounts deposited. Severance expenses for the years ended December 31, 2018, 2017 and 2016 amounted to $1,065, $1,007 and $905, respectively. |
Fair value of financial instruments | t. Fair value of financial instruments: The financial instruments of the Company consist mainly of cash and cash equivalents, restricted bank deposit, short-term bank deposit, trade receivables, trade payables and other accounts payable and accrued expenses. Due to the short-term nature of such financial instruments, their fair value approximates their carrying value. |
Legal contingencies | u. Legal contingencies: From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. The Company’s estimations and related accruals if any are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events relating to a particular matter. |
Comprehensive income | v. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC 220, “Comprehensive Income”, which establishes standards for the reporting and displays of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its only item of other comprehensive income relates to foreign currency translation adjustment and gains or losses on intercompany foreign currency transactions that are of a long-term investment nature in connection with its subsidiary in Brazil. |
Recently issued accounting standards | w. Recently issued and adopted accounting standards: 1. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard replaced the revenue recognition guidance in US GAAP under ASC Topic 605 and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized to retained earnings in the beginning of the period of initial application. Subsequently, the FASB issued several additional ASUs related to ASU No. 2014-09, collectively referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2018. On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method and applied the standard to those contracts which were not substantially completed as of January 1, 2018 and recognized the cumulative effect of initial adoption as an adjustment to the opening balance of accumulated deficit as of such date. As a result of this adoption, the Company revised its accounting policy for revenue recognition as detailed in Note 2k (see also Note 3). 2. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 effective January 1, 2018. The adoption of this new guidance had an immaterial impact on the Company’s consolidated financial statements. 3. In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in ASC 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC 718. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of this new guidance had no impact on the Company’s consolidated financial statements. |
New accounting standards not yet effective | x. New accounting standards not yet effective: In February 2016, the FASB issued ASU No. 2016-02 (Topic 842) “Leases” (“ASU 2016-02”). ASU 2016-02 supersedes the lease requirements in ASC 840, “Leases”. According to ASU 2016-02, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Lessees will also recognize interest expense and depreciation expense separately. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company will implement ASU 2016-02 on January 1, 2019 by using the modified retrospective method, with right-of-use assets measured at an amount equal to the lease liability, with certain relief options offered in ASU 2016-02 including certain available transitional practical expedients. The Company expects adoption of the standard to have a material impact on its consolidated balance sheets which will result in the recognition of lease assets and liabilities in an amount within the range of $5,600 to $6,200. The most significant impact from recognition of lease assets and liabilities relates to real estate and car leases. However, the Company does not anticipate that the adoption of this standard will have a material impact on the operating expenses in its consolidated statements of operations and its cash flows since the expense recognition under this new standard will be similar to current practice. The Company’s financial income (expenses), net will be impacted by the revaluation of the lease liabilities in non-dollar denominated currencies. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of annual rates of depreciation | % Computers and electronic equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements At the shorter of the lease period or useful life of the leasehold improvement |
Schedule of fair value for options granted | 2017 2016 Dividend yield 0% 0% Expected volatility 46.4%-55.9% 50.7%-59.4% Risk-free interest 1.6%-2.1% 0.8%-1.4% Expected life (in years) 3.43-4.76 2.79-4.99 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of cumulative effect of the changes made to the consolidated balance sheet | Balance as of December 31, 2017 Adjustments following the adoption of ASC 606 Balance as of January 1, 2018 Deferred revenue and advances from customers $ (2,601 ) $ 80 $ (2,521 ) Trade receivables, net 20,266 233 20,499 Other accounts receivable and prepaid expenses 2,685 24 2,709 Accumulated deficit $ 53,203 $ (337 ) $ 52,866 |
Schedule of consolidated statements of operations, cash flows | Year ended December 31, 2018 As reported Balances before adoption of ASC 606 Effect of change Statements of operations Revenues - Products and related services $ 13,529 $ 13,068 $ 461 Revenues - Warranty and support 8,303 8,311 (8 ) Cost of revenues - Products and related services 4,851 4,838 13 Sales and marketing, net 11,426 11,392 34 Net loss (2,415 ) (2,821 ) 406 Loss per share: Basic (0.18 ) (0.21 ) 0.03 Diluted (0.18 ) (0.21 ) 0.03 Cash flows Net loss (2,415 ) (2,821 ) 406 Changes in assets and liabilities: Trade receivables, net 13 316 (303 ) Other account receivables and prepaid expenses 658 624 34 Other accounts payables and accrued expenses (848 ) (861 ) 13 Deferred revenue and advances from customers (2,169 ) (2,019 ) (150 ) |
Schedule of consolidated statements of balance sheets | December 31, 2018 As reported Balances before adoption of ASC 606 Effect of change Balance sheets Trade receivables, net $ 20,381 $ 19,845 $ 536 Other accounts receivable and prepaid expenses 1,766 1,776 (10 ) Deferred revenues and advances from customers (266 ) (596 ) 330 Other accounts payable and accrued expenses (2,281 ) (2,268 ) (13 ) Deferred revenues – long term (100 ) - (100 ) Accumulated deficit $ 55,281 $ 56,024 $ (743 ) |
Schedule of deferred revenue | Year ended December 31, 2018 Balance, beginning of the period $ 2,622 Cumulative effect of changes in accounting principles (ASC 606) (80 ) New performance obligations 345 Reclassification to revenue as a result of satisfying performance obligation (2,521 ) Balance, end of the period 366 Less: long-term portion of deferred revenue (100 ) Current portion, end of the period $ 266 |
Short-Term Bank Deposit (Tables
Short-Term Bank Deposit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank deposit | December 31, 2018 2017 Deposit amount $ - $ 40,000 Interest rate (%) - 2.28 Maturity date - December 27, 2018 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2018 2017 Finished products (*) $ 251 $ 1,199 $ 251 $ 1,199 (*) Includes amounts of $35 and $612 for 2018 and 2017, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
Other Accounts Receivable and_2
Other Accounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of other accounts receivable and prepaid expenses | December 31, 2018 2017 Indirect taxes $ 667 $ 980 Grant receivables 10 740 Prepaid expenses and advances to suppliers 752 460 Others 337 505 $ 1,766 $ 2,685 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of composition of assets grouped by major classification | December 31, 2018 2017 Cost: Computers and electronic equipment $ 3,122 $ 2,719 Office furniture and equipment 294 231 Leasehold improvements 169 97 3,585 3,047 Accumulated depreciation: Computers and electronic equipment 1,640 1,024 Office furniture and equipment 93 83 Leasehold improvements 20 16 1,753 1,123 $ 1,832 $ 1,924 |
Other Accounts Payable and Ac_2
Other Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of other accounts payable and accrued expenses | December 31, 2018 2017 Royalties - IIA payable $ 761 $ 1,096 Commissions to distributors 430 429 Accrued expenses 1,090 1,903 $ 2,281 $ 3,428 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum aggregate lease commitments under non-cancelable operating lease agreements | As of the year ended December 31, Premises Motor vehicles Total 2019 928 66 994 2020 865 - 865 2021 123 - 123 2022 123 - 123 2023 41 - 41 $ 2,080 $ 66 $ 2,146 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of deferred tax assets and liabilities | December 31, 2018 2017 Deferred tax assets: Carryforward tax losses $ 10,096 $ 10,591 Research and development credit 2,032 1,120 Accrued social benefits and other 472 909 12,600 12,620 Less - valuation allowance (12,600 ) (12,620 ) Net deferred tax assets $ - $ - |
Schedule of components of income (loss) before income taxes | Year ended December 31, 2018 2017 2016 Domestic $ (2,372 ) $ 4,751 $ 3,018 Foreign 20 (1,767 ) (1,079 ) Income (loss) before income taxes $ (2,352 ) $ 2,984 $ 1,939 |
Schedule of reconciliation of theoretical tax benefit and actual tax expense | Year ended December 31, 2018 2017 2016 Income (loss) before income taxes, as reported in the statements of operations $ (2,352 ) $ 2,984 $ 1,939 Statutory tax rate in Israel 23 % 24 % 25 % Theoretical tax benefit $ (541 ) $ 716 $ 485 Increase (decrease) in income taxes resulting from: Tax rate differential on foreign subsidiaries (55 ) (166 ) (98 ) Non-deductible expenses and other permanent differences 446 987 683 Differences in taxes arising from foreign currency exchange, net 208 (856 ) (324 ) Utilization of carry forward tax losses and other temporary differences for which valuation allowance was provided (20 ) (554 ) (1,102 ) Withholding taxes that were deducted by the Company's customers 10 32 6 Other 15 (76 ) 374 Income taxes $ 63 $ 83 $ 24 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock options activity | Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding as of January 1, 2018 679,552 $ 13.20 3.35 $ 4,517 Granted - - Exercised (215,542 ) 9.87 Expired and forfeited (48,500 ) 15.76 Outstanding as of December 31, 2018 415,510 $ 14.62 2.69 $ 3 Vested and expected to vest at December 31, 2018 415,510 $ 14.62 2.69 $ 3 Exercisable as of December 31, 2018 159,058 $ 11.81 2.02 $ 3 |
Schedule of stock options under 2013 share option plan | Options outstanding at December 31, 2018 Options exercisable at December 31, 2018 Exercise price Number outstanding Weighted average exercise price Weighted average remaining contractual life Number exercisable Weighted average exercise price Weighted average remaining contractual life $ $ In years $ In years 6.00 2,250 6.00 0.56 2,250 6.00 0.56 11.12-14.52 259,558 11.86 2.22 156,808 11.89 2.05 18.90-19.85 153,702 19.42 3.52 - - - 415,510 159,058 |
Schedule of RSUs activity | Number of RSUs Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding as of January 1, 2018 240,054 1.74 $ 4,765 Granted 32,700 Vested (74,210 ) Cancelled (29,675 ) Outstanding as of December 31, 2018 168,869 1.40 $ 1,253 Vested and expected to vest as of December 31, 2018 168,869 1.40 $ 1,253 |
Schedule of departmental allocation of share-based compensation charge | Year ended December 31, 2018(*) 2017(*) 2016(*) Cost of revenues $ 112 $ 189 $ 118 Research and development, net 808 473 625 Sales and marketing, net 698 499 199 General and administrative 503 1,055 1,529 $ 2,121 $ 2,216 $ 2,471 (*) Including $1,359, $1,335 and $1,331 of compensation cost related to RSUs for the year ended December 31, 2018, 2017 and 2016, respectively. |
Selected Statements of Operat_2
Selected Statements of Operations Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Statements of Operations Data [Abstract] | |
Schedule of revenues by geographic region | Year ended December 31, 2018 2017 2016 North America $ 22,164 $ 25,157 $ 19,167 Europe 362 778 946 Asia (excluding Philippines) 923 374 355 Philippines 6,235 4,501 4,959 South America (excluding Brazil) 671 883 785 Brazil 2,908 1,783 2,496 Other (including Israel) 787 3,757 802 $ 34,050 $ 37,233 $ 29,510 |
Schedule of property and equipment, net, by geographic areas | Year ended December 31, 2018 2017 Israel $ 1,535 $ 1,781 Other 297 143 $ 1,832 $ 1,924 |
Schedule of financial income, net | Years ended December 31, 2018 2017 2016 Financial Income: Interest income $ 1,455 $ 572 $ 489 Foreign currency exchange gain 784 215 424 2,239 787 913 Financial expenses: Bank charges (15 ) (58 ) (23 ) Foreign currency exchange loss (1,088 ) (340 ) (74 ) (1,103 ) (398 ) (97 ) $ 1,136 $ 389 $ 816 |
Schedule of computation of basic and diluted net income (loss) per ordinary share | Years ended December 31, 2018 2017 2016 Numerator: Numerator for basic net income (loss) per Ordinary Share $ (2,415 ) $ 2,901 $ 1,915 Effect of dilutive securities: Share-based compensation granted - - - Numerator for dilutive net income (loss) per Ordinary Share $ (2,415 ) $ 2,901 $ 1,915 Denominator: Denominator for dilutive net income (loss) per Ordinary Share - weighted average number of Ordinary Shares 13,630,793 12,039,176 10,406,897 Effect of dilutive securities: Share-based compensation granted - 312,390 372,650 Denominator for diluted net income (loss) per Ordinary Share - adjusted weighted average number of Ordinary Shares 13,630,793 12,351,566 10,779,547 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balances with related parties [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of balances and trasactions with related parties | December 31, 2018 2017 Assets: Trade receivables, net $ 13,596 $ 14,329 Other accounts receivable and prepaid expenses $ - $ 2 Liabilities: Trade payables $ 81 $ 63 Other accounts payables and accrued expenses $ 12 $ 140 |
Transactions with related parties [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of balances and trasactions with related parties | Year ended December 31, 2018 2017 2016 Revenues $ 16,369 $ 24,559 $ 18,461 Expenses: Cost of revenues $ 163 $ 201 $ 210 Operating expenses: Research and development, net $ 507 $ 371 $ 224 Sales and marketing, net $ 212 $ 217 $ 142 General and administrative $ 191 $ 293 $ 250 Capital expenses $ 40 $ 9 $ 21 |
General (Details)
General (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2017 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General (Textual) | |||||
Consolidated revenues percentage | 72.00% | ||||
Total consideration | $ 30,206 | $ 21,279 | $ 30,206 | $ 21,279 | |
Net of underwriting discounts, commissions and other offering expenses | $ 24,194 | 1,721 | |||
Sale of stock public offerings | $ 5,000 | ||||
AT&T Engagement [Member] | |||||
General (Textual) | |||||
Pursuant to AT&T Engagement | $ 16,296 | $ 24,528 | $ 18,310 | ||
Consolidated revenues percentage | 48.00% | 66.00% | 62.00% | ||
Total consideration |
Significant Accounting Polici_4
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computers and electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, percentage | 15.00% |
Computers and electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, percentage | 33.00% |
Office furniture and equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, percentage | 6.00% |
Office furniture and equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, percentage | 33.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, description | At the shorter of the lease period or useful life of the leasehold improvement |
Significant Accounting Polici_5
Significant Accounting Policies (Details 1) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 55.90% | 59.40% |
Risk-free interest | 2.10% | 1.40% |
Expected life (in years) | 4 years 9 months 3 days | 4 years 11 months 26 days |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 46.40% | 50.70% |
Risk-free interest | 1.60% | 0.80% |
Expected life (in years) | 3 years 5 months 5 days | 2 years 9 months 14 days |
Significant Accounting Polici_6
Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies (Textual) | |||
Net of allowances for doubtful accounts | $ 19 | $ 9 | |
Total inventory write-offs during period | 369 | $ 498 | |
Impairment losses | |||
Percentage of marketing expenses | 50.00% | ||
Reduction of marketing expenses for government grants | $ 6 | 75 | |
Warrants excluded from calculation of diluted net income (loss) per share | 731,542 | 70,801 | |
Unrecognized tax benefits | |||
Severance expenses | $ 1,065 | $ 1,007 | $ 905 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred revenue and advances from customers | $ 266 | $ 2,601 |
Trade receivables, net | 20,381 | 20,266 |
Other accounts receivable and prepaid expenses | 1,766 | 2,685 |
Accumulated deficit | (55,281) | $ (53,203) |
Adjustments following the adoption of ASC 606 [Member] | ||
Deferred revenue and advances from customers | 80 | |
Trade receivables, net | 233 | |
Other accounts receivable and prepaid expenses | 24 | |
Accumulated deficit | (337) | |
Balance as of January 1, 2018 [Member] | ||
Deferred revenue and advances from customers | (2,521) | |
Trade receivables, net | 20,499 | |
Other accounts receivable and prepaid expenses | 2,709 | |
Accumulated deficit | $ 52,866 |
Revenues (Details 1)
Revenues (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements of operations | |||
Revenues - Products and related services | $ 13,529 | $ 7,457 | $ 8,642 |
Revenues - Warranty and support | 8,303 | 3,597 | 3,334 |
Cost of revenues - Products and related services | 4,851 | ||
Sales and marketing, net | 11,426 | 10,996 | 8,528 |
Net loss | $ (2,415) | $ 2,901 | $ 1,915 |
Loss per share: | |||
Basic | $ (0.18) | $ 0.24 | $ 0.18 |
Diluted | $ (0.18) | $ 0.23 | $ 0.18 |
Cash flows | |||
Net loss | $ (2,415) | $ 2,901 | $ 1,915 |
Changes in assets and liabilities: | |||
Trade receivables, net | 13 | (15,865) | (329) |
Other account receivables and prepaid expenses | 658 | (520) | 524 |
Other accounts payables and accrued expenses | (848) | 1,385 | 266 |
Deferred revenue and advances from customers | (2,169) | $ (109) | $ 1,248 |
Balances before adoption of ASC 606 [Member] | |||
Statements of operations | |||
Revenues - Products and related services | 13,068 | ||
Revenues - Warranty and support | 8,311 | ||
Cost of revenues - Products and related services | 4,838 | ||
Sales and marketing, net | 11,392 | ||
Net loss | $ (2,821) | ||
Loss per share: | |||
Basic | $ (0.21) | ||
Diluted | $ (0.21) | ||
Cash flows | |||
Net loss | $ (2,821) | ||
Changes in assets and liabilities: | |||
Trade receivables, net | 316 | ||
Other account receivables and prepaid expenses | 624 | ||
Other accounts payables and accrued expenses | (861) | ||
Deferred revenue and advances from customers | (2,019) | ||
Effect of change [Member] | |||
Statements of operations | |||
Revenues - Products and related services | 461 | ||
Revenues - Warranty and support | (8) | ||
Cost of revenues - Products and related services | 13 | ||
Sales and marketing, net | 34 | ||
Net loss | $ 406 | ||
Loss per share: | |||
Basic | $ 0.03 | ||
Diluted | $ 0.03 | ||
Cash flows | |||
Net loss | $ 406 | ||
Changes in assets and liabilities: | |||
Trade receivables, net | (303) | ||
Other account receivables and prepaid expenses | 34 | ||
Other accounts payables and accrued expenses | 13 | ||
Deferred revenue and advances from customers | $ (150) |
Revenues (Details 2)
Revenues (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance sheets | ||
Trade receivables, net | $ 20,381 | $ 20,266 |
Other accounts receivable and prepaid expenses | 1,766 | 2,685 |
Deferred revenues and advances from customers | 266 | 2,601 |
Other accounts payables and accrued expenses | 2,281 | 3,428 |
Deferred revenues - long term | 100 | 21 |
Accumulated deficit | (55,281) | $ (53,203) |
Balances before adoption of ASC 606 [Member] | ||
Balance sheets | ||
Trade receivables, net | 19,845 | |
Other accounts receivable and prepaid expenses | 1,776 | |
Deferred revenues and advances from customers | (596) | |
Other accounts payables and accrued expenses | (2,268) | |
Deferred revenues - long term | ||
Accumulated deficit | 56,024 | |
Effect of change [Member] | ||
Balance sheets | ||
Trade receivables, net | 536 | |
Other accounts receivable and prepaid expenses | (10) | |
Deferred revenues and advances from customers | 330 | |
Other accounts payables and accrued expenses | (13) | |
Deferred revenues - long term | (100) | |
Accumulated deficit | $ 55,281 |
Revenues (Details 3)
Revenues (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Balance, beginning of the period | $ 2,601 |
Cumulative effect of changes in accounting principles (ASC 606) | (80) |
New performance obligations | 345 |
Reclassification to revenue as a result of satisfying performance obligation | (2,521) |
Balance, end of the period | 366 |
Less: long-term portion of deferred revenue | (100) |
Current portion, end of the period | $ 266 |
Revenues (Details Textual)
Revenues (Details Textual) $ in Thousands | Dec. 31, 2018USD ($) |
Revenues (Textual) | |
Remaining performance obligations | $ 10,859 |
Percentage of remaining performance obligation expected to be recognized as revenue | 72.00% |
Short-Term Bank Deposit (Detail
Short-Term Bank Deposit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Deposit amount | $ 40,000 | |
Interest rate (%) | 2.28% | |
Maturity date | Dec. 27, 2018 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Finished products | [1] | $ 251 | $ 1,199 |
Inventory, net | $ 251 | $ 1,199 | |
[1] | Includes amounts of $35 and $612 for 2018 and 2017, respectively, with respect to inventory delivered to customers but for which revenue criteria have not been met yet. |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories (Textual) | ||
Inventory delivered to customers | $ 35 | $ 612 |
Other Accounts Receivable and_3
Other Accounts Receivable and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets [Abstract] | ||
Indirect taxes | $ 667 | $ 980 |
Grant receivables | 10 | 740 |
Prepaid expenses and advances to suppliers | 752 | 460 |
Others | 337 | 505 |
Other accounts receivable and prepaid expenses | $ 1,766 | $ 2,685 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 3,585 | $ 3,047 |
Accumulated depreciation | 1,753 | 1,123 |
Property, Plant and Equipment, Net | 1,832 | 1,924 |
Computers and electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 3,122 | 2,719 |
Accumulated depreciation | 1,640 | 1,024 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 294 | 231 |
Accumulated depreciation | 93 | 83 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 169 | 97 |
Accumulated depreciation | $ 20 | $ 16 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment, Net (Textual) | |||
Depreciation expenses | $ 657 | $ 537 | $ 286 |
Other Accounts Payable and Ac_3
Other Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Royalties - IIA payable | $ 761 | $ 1,096 |
Commissions to distributors | 430 | 429 |
Accrued expenses | 1,090 | 1,903 |
Total | $ 2,281 | $ 3,428 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Future minimum rental payments, operating leases: | |
2019 | $ 994 |
2020 | 865 |
2021 | 123 |
2022 | 123 |
2023 | 41 |
Total | 2,146 |
Premises [Member] | |
Future minimum rental payments, operating leases: | |
2019 | 928 |
2020 | 865 |
2021 | 123 |
2022 | 123 |
2023 | 41 |
Total | 2,080 |
Motor vehicles [Member] | |
Future minimum rental payments, operating leases: | |
2019 | 66 |
2020 | |
2021 | |
2022 | |
2023 | |
Total | $ 66 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies (Textual) | |||
Bank performance guarantee | $ 33 | ||
Rental agreements expiry date | Apr. 30, 2023 | ||
Number of leased cars | 30 | ||
Description of lease agreements | The rental agreements for the premises of the Company and its subsidiaries expire up to April 30, 2023. The Company also has several motor vehicle lease agreements for up to 48 months period. As of December 31, 2018, the Company maintains 30 leased cars. | ||
Total lease expenses, net | $ 1,341 | $ 1,248 | $ 1,023 |
Bank guarantee expiration date | Apr. 30, 2019 | ||
Royalties rate, description | 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 the BIRD-F's grant, linked to the United States Consumer Price Index ("CPI") relating to such products. | ||
Grants intended costs, description | 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 and China, based on the approved budget for the plan over a period of three years. | ||
Israeli Ministry of Trade [Member] | |||
Commitments and Contingencies (Textual) | |||
Royalty payable range | 3.00% | ||
Proceeds from grants received | 668 | ||
Royalty expenses | $ 9 | ||
Grant approved over a period | 5 years | ||
Israel United States Bi National Industrial Research and Development Foundation [Member] | |||
Commitments and Contingencies (Textual) | |||
Proceeds from grants received | $ 340 | ||
Pay royalties up to an amount | 849 | 468 | |
Linkage to CPI | 566 | ||
Net of royalties paid | $ 381 | ||
Israel Innovation Authority [Member] | |||
Commitments and Contingencies (Textual) | |||
Royalty payable range | 3.00% | ||
Percent of grants received paid in royalties | 100.00% | ||
Total commitment with respect to royalty-bearing participation received, net of royalties paid | $ 48,452 | ||
Proceeds from grants received | 44,833 | ||
Accumulated interest, grants | 18,516 | ||
Net of royalties paid | 14,897 | ||
Royalty expenses | $ 922 | $ 1,303 | $ 1,033 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Carryforward tax losses | $ 10,096 | $ 10,591 |
Research and development credit | 2,032 | 1,120 |
Accrued social benefits and other | 472 | 909 |
Deferred tax assets, gross | 12,600 | 12,620 |
Less - valuation allowance | (12,600) | (12,620) |
Net deferred tax assets |
Taxes on Income (Details 1)
Taxes on Income (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (2,372) | $ 4,751 | $ 3,018 |
Foreign | 20 | (1,767) | (1,079) |
Income (loss) before income taxes | $ (2,352) | $ 2,984 | $ 1,939 |
Taxes on Income (Details 2)
Taxes on Income (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes, as reported in the statements of operations | $ (2,352) | $ 2,984 | $ 1,939 |
Statutory tax rate in Israel | 23.00% | 24.00% | 25.00% |
Theoretical tax benefit | $ (541) | $ 716 | $ 485 |
Increase (decrease) in income taxes resulting from: | |||
Tax rate differential on foreign subsidiaries | (55) | (166) | (98) |
Non-deductible expenses and other permanent differences | 446 | 987 | 683 |
Differences in taxes arising from foreign currency exchange, net | 208 | (856) | (324) |
Utilization of carry forward tax losses and other temporary differences for which valuation allowance was provided | (20) | (554) | (1,102) |
Withholding taxes that were deducted by the Company's customers | 10 | 32 | 6 |
Other | 15 | (76) | 374 |
Income taxes | $ 63 | $ 83 | $ 24 |
Taxes on Income (Details Textua
Taxes on Income (Details Textual) - USD ($) $ in Thousands | Aug. 13, 2013 | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Taxes on Income (Textual) | |||||
Income tax rate | 23.00% | 24.00% | 25.00% | ||
Tax loss carry forward | $ 31,234 | ||||
Capital loss | 716 | ||||
Net change in total valuation allowance | $ 20 | ||||
Tax credit carryforward, description | The tax rate on preferred income from a preferred enterprise in 2014-2016 will be 9% in certain areas in Israel ("Development Area A") and 16% in other areas. In 2017, the tax rate at Development Area A was reduced to 7.5%. | ||||
Subject to tax at a rate | 4.00% | ||||
Companies foreign currency exchange rate | 90.00% | ||||
U.S. subsidiary [Member] | |||||
Taxes on Income (Textual) | |||||
Income tax rate | 21.00% | ||||
Tax loss carry forward | $ 7,682 | ||||
Tax credit carryforward, description | U.S. federal corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. | Such losses are available to offset any future U.S. taxable income of the U.S. subsidiary and will expire in the years 2019-2026 for federal tax purposes. | |||
Brazilian subsidiary [Member] | |||||
Taxes on Income (Textual) | |||||
Income tax rate | 34.00% | ||||
Tax loss carry forward | $ 3,336 | ||||
Maximum offset percentage of taxable income for tax period | 30.00% | ||||
Indian subsidiary [Member] | |||||
Taxes on Income (Textual) | |||||
Income tax rate | 25.00% | ||||
Research and Development Expense [Member] | |||||
Taxes on Income (Textual) | |||||
Tax loss carry forward | $ 8,837 | ||||
Development area A [Member] | |||||
Taxes on Income (Textual) | |||||
Income tax rate | 7.50% | ||||
Other areas [Member] | |||||
Taxes on Income (Textual) | |||||
Income tax rate | 12.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Number of options | |
Options outstanding, beginning balance | shares | 679,552 |
Granted | shares | |
Exercised | shares | (215,542) |
Expired and forfeited | shares | (48,500) |
Options outstanding, ending balance | shares | 415,510 |
Vested and expected to vest | shares | 415,510 |
Exercisable as of December 31, 2018 | shares | 159,058 |
Weighted average exercise price | |
Options outstanding, beginning balance | $ / shares | $ 13.20 |
Granted | $ / shares | |
Exercised | $ / shares | 9.87 |
Expired and forfeited | $ / shares | 15.76 |
Options outstanding, ending balance | $ / shares | 14.62 |
Vested and expected to vest | $ / shares | 14.62 |
Exercisable at December 31, 2018 | $ / shares | $ 11.81 |
Weighted average remaining contractual term (in years) | |
Outstanding, beginning balance | 3 years 4 months 6 days |
Outstanding, ending balance | 2 years 8 months 9 days |
Vested and expected to vest | 2 years 8 months 9 days |
Exercisable at December 31, 2018 | 2 years 7 days |
Aggregate intrinsic value | |
Outstanding, beginning balance | $ | $ 4,517 |
Outstanding, ending balance | $ | 3 |
Vested and expected to vest | $ | 3 |
Exercisable at December 31, 2018 | $ | $ 3 |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 415,510 |
Number exercisable | shares | 159,058 |
Stock Option [Member] | 6.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 6 |
Number outstanding | shares | 2,250 |
Weighted average exercise price | $ 6 |
Weighted average remaining contractual life | 6 months 21 days |
Number exercisable | shares | 2,250 |
Weighted average exercise price | $ 6 |
Weighted average remaining contractual life | 6 months 21 days |
Stock Option [Member] | 11.12-14.52 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, Minimum | $ 11.12 |
Exercise price, Maximum | $ 14.52 |
Number outstanding | shares | 259,558 |
Weighted average exercise price | $ 11.86 |
Weighted average remaining contractual life | 2 years 2 months 19 days |
Number exercisable | shares | 156,808 |
Weighted average exercise price | $ 11.89 |
Weighted average remaining contractual life | 2 years 18 days |
Stock Option [Member] | 18.90-19.85 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, Minimum | $ 18.90 |
Exercise price, Maximum | $ 19.85 |
Number outstanding | shares | 153,702 |
Weighted average exercise price | $ 19.42 |
Weighted average remaining contractual life | 3 years 6 months 7 days |
Number exercisable | shares | |
Weighted average exercise price | |
Weighted average remaining contractual life | 0 years |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - Restricted Stock Units (RSUs) [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Number of RSUs | |
Options outstanding, beginning balance | 240,054 |
Granted | 32,700 |
Vested | (74,210) |
Cancelled | (29,675) |
Options outstanding, ending balance | 168,869 |
Vested and expected to vest at December 31, 2018 | 168,869 |
Weighted average remaining contractual term (in years) | |
Options outstanding, beginning balance, Weighted average remaining contractual term (in years) | 1 year 8 months 26 days |
Options outstanding, ending balance, Weighted average remaining contractual term (in years) | 1 year 4 months 24 days |
Vested and expected to vest at December 31, 2018 | 1 year 4 months 24 days |
Aggregate intrinsic value | |
Outstanding, beginning balance | $ | $ 4,765 |
Outstanding, ending balance | $ | 1,253 |
Vested and expected to vest at December 31, 2018 | $ | $ 1,253 |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation charges | [1] | $ 2,121 | $ 2,216 | $ 2,471 |
Cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation charges | [1] | 112 | 189 | 118 |
Research and development, net [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation charges | [1] | 808 | 473 | 625 |
Sales and marketing, net [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation charges | [1] | 698 | 499 | 199 |
General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation charges | [1] | $ 503 | $ 1,055 | $ 1,529 |
[1] | Including $1,359, $1,335 and $1,331 of compensation cost related to RSUs for the year ended December 31, 2018, 2017 and 2016, respectively. |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2017 | Oct. 25, 2017 | Oct. 20, 2017 | May 31, 2016 | May 25, 2016 | Feb. 19, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shareholder's Equity (Textual) | |||||||||
Ordinary shares held by the company | 30,843 | ||||||||
Ordinary shares issued | 5,189 | 5,189 | |||||||
Net of issuance costs | $ 30,206 | $ 21,279 | $ 30,206 | $ 21,279 | |||||
Purchase additional shares, for total consideration | $ 5,000 | ||||||||
Follow-on public offering [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Ordinary shares issued | 1,444,814 | 2,090,909 | |||||||
Offering price per share | $ 19.50 | $ 11 | |||||||
Net of issuance costs | $ 1,721 | ||||||||
Ordinary shares issued, does not include | 21,279 | ||||||||
Gross proceeds | $ 28,174 | ||||||||
Other offering expenses | $ 1,940 | ||||||||
2017 Public Offering [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Ordinary shares issued | 1,661,536 | ||||||||
Net of issuance costs | $ 2,194 | ||||||||
Purchase additional shares, for total consideration | $ 30,206 | ||||||||
Exercisable for 30 days [Member] | Follow-on public offering [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Ordinary shares issued | 216,722 | ||||||||
Offering price per share | $ 19.50 | ||||||||
Underwriters' Option [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Ordinary shares issued | 216,722 | ||||||||
2013 Share Option Plan [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Option plan expire date | Apr. 2, 2023 | ||||||||
Increase number of shares reserved under share option plan | 2,450,000 | ||||||||
Shares available for future grants | 947,245 | 179,002 | |||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Shares available for future grants | 32,700 | 105,428 | |||||||
Weighted average fair values of options granted | $ 19.68 | $ 19.52 | $ 14.69 | ||||||
Compensation cost | $ 1,359 | $ 1,335 | $ 1,331 | ||||||
Unrecognized costs related to non-vested share-based compensation | $ 1,967 | ||||||||
Recognized over a weighted average period | 1 year 11 days | ||||||||
Stock option vesting period | 4 years | ||||||||
Stock options grant and an exercise term | 5 years | ||||||||
Employee Stock Option [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Weighted average fair values of options granted | $ 8.08 | $ 6.68 | |||||||
Stock options grant and an exercise term | 2 years 7 days | ||||||||
Aggregate intrinsic value | 2,250 | ||||||||
Options outstanding and exercisable | 2,250 | ||||||||
Maximum [Member] | 2013 Share Option Plan [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Weighted average fair values of options granted | 19.85 | ||||||||
Minimum [Member] | 2013 Share Option Plan [Member] | |||||||||
Shareholder's Equity (Textual) | |||||||||
Weighted average fair values of options granted | $ 18.90 |
Selected Statements of Operat_3
Selected Statements of Operations Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | $ 34,050 | $ 37,233 | $ 29,510 |
North America [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 22,164 | 25,157 | 19,167 |
Europe [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 362 | 778 | 946 |
Asia (excluding Philippines) [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 923 | 374 | 355 |
Philippines [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 6,235 | 4,501 | 4,959 |
South America (excluding Brazil) [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 671 | 883 | 785 |
Brazil [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | 2,908 | 1,783 | 2,496 |
Other (including Israel) [Member] | |||
Schedule of revenues from sales to unaffiliated customers | |||
Revenues | $ 787 | $ 3,757 | $ 802 |
Selected Statements of Operat_4
Selected Statements of Operations Data (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of property and equipment, net, by geographic areas | ||
Property and equipment, net | $ 1,832 | $ 1,924 |
Israel [Member] | ||
Schedule of property and equipment, net, by geographic areas | ||
Property and equipment, net | 1,535 | 1,781 |
Other [Member] | ||
Schedule of property and equipment, net, by geographic areas | ||
Property and equipment, net | $ 297 | $ 143 |
Selected Statements of Operat_5
Selected Statements of Operations Data (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Income: | |||
Interest income | $ 1,455 | $ 572 | $ 489 |
Foreign currency exchange gain | 784 | 215 | 424 |
Financial income | 2,239 | 787 | 913 |
Financial expenses: | |||
Bank charges | (15) | (58) | (23) |
Foreign currency exchange loss | (1,088) | (340) | (74) |
Financial expenses | (1,103) | (398) | (97) |
Financial income, net | $ 1,136 | $ 389 | $ 816 |
Selected Statements of Operat_6
Selected Statements of Operations Data (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Numerator for basic net income (loss) per Ordinary Share | $ (2,415) | $ 2,901 | $ 1,915 |
Effect of dilutive securities: | |||
Share-based compensation granted | |||
Numerator for dilutive net income (loss) per Ordinary Share | $ (2,415) | $ 2,901 | $ 1,915 |
Denominator: | |||
Denominator for dilutive net income (loss) per Ordinary Share - weighted average number of Ordinary Shares | 13,630,793 | 12,039,176 | 10,406,897 |
Share-based compensation granted | $ 312,390 | $ 372,650 | |
Denominator for diluted net income (loss) per Ordinary Share - adjusted weighted average number of Ordinary Shares | 13,630,793 | 12,351,566 | 10,779,547 |
Selected Statements of Operat_7
Selected Statements of Operations Data (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018CustomerSegment | Dec. 31, 2017Customer | Dec. 31, 2016Customer | |
Selected Statements of Operations Data (Textual) | |||
Number of reportable segments | Segment | 1 | ||
Percent of total revenues, major customer | 98.00% | 90.00% | 98.00% |
United States [Member] | Revenues [Member] | |||
Selected Statements of Operations Data (Textual) | |||
Percent of total revenues, major customer | 63.00% | 66.00% | 62.00% |
Number of customers | 2 | 1 | 1 |
Philippines [Member] | Revenues [Member] | |||
Selected Statements of Operations Data (Textual) | |||
Percent of total revenues, major customer | 18.00% | 12.00% | 17.00% |
Number of customers | 1 | 1 | 1 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Trade receivables, net | $ 20,381 | $ 20,266 |
Other accounts receivable and prepaid expenses | 1,766 | 2,685 |
Liabilities: | ||
Other accounts payables and accrued expenses | 2,281 | 3,428 |
Related Parties [Member] | ||
Assets: | ||
Trade receivables, net | 13,596 | 14,329 |
Other accounts receivable and prepaid expenses | 2 | |
Liabilities: | ||
Trade payables | 81 | 63 |
Other accounts payables and accrued expenses | $ 12 | $ 140 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 34,050 | $ 37,233 | $ 29,510 |
Expenses: | |||
Cost of revenues | 8,866 | 10,488 | 8,982 |
Operating expenses: | |||
Research and development, net | 15,503 | 10,562 | 8,047 |
Sales and marketing, net | 11,426 | 10,996 | 8,528 |
General and administrative | 3,391 | 4,191 | 4,523 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | 16,369 | 24,559 | 18,461 |
Expenses: | |||
Cost of revenues | 163 | 201 | 210 |
Operating expenses: | |||
Research and development, net | 507 | 371 | 224 |
Sales and marketing, net | 212 | 217 | 142 |
General and administrative | 191 | 293 | 250 |
Capital expenses | $ 40 | $ 9 | $ 21 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 25, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Balances and Transactions (Textual) | ||||
Revenues aggregated total amount | $ 73 | $ 31 | $ 139 | |
Aggregate net amounts of lease and maintenance expenses | 967 | 843 | 624 | |
Reimbursement expenses | 40 | |||
Administrative and IT services amount | 32 | 39 | 35 | |
Aggregate amounts | 2 | 15 | 1 | |
Salary expenses | 108 | $ 183 | $ 180 | |
Affiliates amount of related party | $ 4 | |||
Public Offering [Member] | ||||
Related Party Balances and Transactions (Textual) | ||||
Aggregate amounts | $ 21,279 | |||
Offering price | $ 11 | |||
Purchase of ordinary shares | 200,000 | |||
Amount invested such of public offering | $ 2,200 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Feb. 28, 2019 | |
Subsequent Event [Member] | |
Subsequent Events (Textual) | |
Board approved grants, descriptions | The Company’s Board approved the grant of 377,020 RSUs to certain employees, officers and Board members of the Company out of which 113,800 RSUs are subject to the approval of the shareholders. Such RSUs have vesting schedules of four years, commencing as of the date of grant. |