Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | RADCOM LTD. |
Trading Symbol | RDCM |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 14,155,186 |
Amendment Flag | false |
Entity Central Index Key | 0001016838 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-29452 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 24 Raoul Wallenberg Street |
Entity Address, City or Town | Tel-Aviv |
Entity Address, Postal Zip Code | 69719 |
Entity Address, Country | IL |
Title of 12(b) Security | Ordinary Shares, NIS 0.20 par value per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1281 |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 24 Raoul Wallenberg Street |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 69719 |
Entity Address, Country | IL |
Contact Personnel Name | Ms. Hadar Rahav |
City Area Code | (+972) |
Local Phone Number | 77-774-5060 |
Contact Personnel Fax Number | (+972) 3-647-4681 |
Entity Address, Address Line Two | Tel Aviv |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 11,948 | $ 13,548 |
Short-term bank deposits | 58,621 | 55,413 |
Trade receivables, net | 10,031 | 12,446 |
Inventories | 931 | 540 |
Other accounts receivable and prepaid expenses | 1,964 | 1,437 |
Total current assets | 83,495 | 83,384 |
NON- CURRENT ASSETS: | ||
Severance pay fund | 3,840 | 3,814 |
Other long-term receivables | 1,258 | 2,185 |
Property and equipment, net | 1,260 | 1,311 |
Operating lease right-of-use assets | 1,808 | 2,945 |
Total non-current assets | 8,166 | 10,255 |
Total assets | 91,661 | 93,639 |
CURRENT LIABILITIES: | ||
Trade payables | 2,651 | 1,592 |
Employees and payroll accruals | 4,422 | 4,414 |
Deferred revenues and advances from customers | 2,700 | 3,149 |
Current maturities of lease liabilities | 1,045 | 1,028 |
Other liabilities and accrued expenses | 5,428 | 4,721 |
Total current liabilities | 16,246 | 14,904 |
NON-CURRENT LIABILITIES: | ||
Accrued severance pay | 4,335 | 4,473 |
Operating lease liabilities | 894 | 2,008 |
Other liabilities and accrued expenses | 32 | 235 |
Total non-current liabilities | 5,261 | 6,716 |
Total liabilities | 21,507 | 21,620 |
COMMITMENTS AND CONTINGENCIES | ||
Share capital: | ||
Ordinary Shares of NIS 0.20 par value: Authorized: 20,000,000 shares at December 31, 2021 and 2020; 14,191,218 and 13,967,488 shares issued and 14,155,186 and 13,931,456 shares outstanding at December 31, 2021 and 2020, respectively | 669 | 657 |
Additional paid-in capital | 143,473 | 140,129 |
Accumulated other comprehensive loss | (2,620) | (2,662) |
Accumulated deficit | (71,368) | (66,105) |
Total shareholders’ equity | 70,154 | 72,019 |
Total liabilities and shareholders’ equity | $ 91,661 | $ 93,639 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in New Shekels per share) | ₪ 0.2 | ₪ 0.2 |
Ordinary shares, shares authorized | 20,000,000 | 20,000,000 |
Ordinary shares, shares issued | 14,191,218 | 13,967,488 |
Ordinary shares, shares outstanding | 14,155,186 | 13,931,456 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Products | $ 15,336 | $ 17,742 | $ 16,382 |
Services | 24,946 | 19,820 | 16,300 |
Projects | 328 | ||
Total revenues | 40,282 | 37,562 | 33,010 |
Cost of revenues: | |||
Products | 5,543 | 5,340 | 4,811 |
Services | 5,880 | 5,418 | 5,022 |
Projects | 84 | ||
Total cost of revenues | 11,423 | 10,758 | 9,917 |
Gross profit | 28,859 | 26,804 | 23,093 |
Operating expenses: | |||
Research and development | 20,347 | 19,199 | 18,578 |
Less - royalty-bearing participation | 537 | 1,358 | 1,838 |
Research and development, net | 19,810 | 17,841 | 16,740 |
Sales and marketing | 10,358 | 9,709 | 10,514 |
General and administrative | 4,184 | 3,836 | 3,674 |
Total operating expenses | 34,352 | 31,386 | 30,928 |
Operating loss | (5,493) | (4,582) | (7,835) |
Financial income, net | 354 | 810 | 1,172 |
Loss before taxes on income | (5,139) | (3,772) | (6,663) |
Taxes on income | (124) | (220) | (169) |
Net loss | $ (5,263) | $ (3,992) | $ (6,832) |
Basic and diluted net loss per Ordinary Share (in Dollars per share) | $ (0.37) | $ (0.29) | $ (0.5) |
Weighted average number of Ordinary Share used in computing basic and diluted net loss per Ordinary Share (in Shares) | 14,124,404 | 13,927,788 | 13,779,885 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net loss | $ (5,263) | $ (3,992) | $ (6,832) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 42 | (28) | (22) |
Total other comprehensive loss | 42 | (28) | (22) |
Comprehensive loss | $ (5,221) | $ (4,020) | $ (6,854) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Share capital amount | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total | |
Balance at Dec. 31, 2018 | $ 643 | $ 135,730 | $ (2,612) | $ (55,281) | $ 78,480 | |
Balance (in Shares) at Dec. 31, 2018 | 13,699,727 | |||||
Share-based compensation and RSUs | 2,228 | 2,228 | ||||
Exercise of options into Ordinary Shares | [1] | 16 | 16 | |||
Exercise of options into Ordinary Shares (in Shares) | 2,250 | |||||
RSUs vested | $ 5 | (5) | ||||
RSUs vested (in Shares) | 84,176 | |||||
Net loss | (6,832) | (6,832) | ||||
Other comprehensive income/loss | (22) | (22) | ||||
Balance at Dec. 31, 2019 | $ 648 | 137,969 | (2,634) | (62,113) | 73,870 | |
Balance (in Shares) at Dec. 31, 2019 | 13,786,153 | |||||
Share-based compensation and RSUs | 2,169 | 2,169 | ||||
RSUs vested | $ 9 | (9) | ||||
RSUs vested (in Shares) | 145,303 | |||||
Net loss | (3,992) | (3,992) | ||||
Other comprehensive income/loss | (28) | (28) | ||||
Balance at Dec. 31, 2020 | $ 657 | 140,129 | (2,662) | (66,105) | 72,019 | |
Balance (in Shares) at Dec. 31, 2020 | 13,931,456 | |||||
Share-based compensation and RSUs | 3,356 | 3,356 | ||||
RSUs vested | $ 12 | (12) | ||||
RSUs vested (in Shares) | 223,730 | |||||
Net loss | (5,263) | (5,263) | ||||
Other comprehensive income/loss | 42 | 42 | ||||
Balance at Dec. 31, 2021 | $ 669 | $ 143,473 | $ (2,620) | $ (71,368) | $ 70,154 | |
Balance (in Shares) at Dec. 31, 2021 | 14,155,186 | |||||
[1] | Represents an amount lower than $1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (5,263) | $ (3,992) | $ (6,832) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 540 | 699 | 752 |
Share-based compensation | 3,356 | 2,169 | 2,228 |
Change in: | |||
Severance pay, net | (164) | 120 | 81 |
Trade receivables, net | 2,412 | (1,653) | 9,303 |
Other account receivables and prepaid expenses | 289 | 114 | (1,753) |
Inventories | (410) | 811 | (1,135) |
Trade payables | 1,017 | (773) | 998 |
Employees and payroll accruals | 16 | 314 | 717 |
Other liabilities and accrued expenses | 724 | 530 | 2,694 |
Deferred revenue and advances from customers | (411) | 2,267 | 562 |
Net effect of exchange rate differences and other on operating lease right-of-use assets and liabilities | 40 | (297) | 388 |
Accrued interest on short-term bank deposits | (144) | (359) | (1,163) |
Net cash provided by (used in) operating activities | 2,002 | (50) | 6,840 |
Cash flows from investing activities: | |||
Net proceeds from (investment in) short-term bank deposits | (3,064) | 8,026 | (61,917) |
Purchase of property and equipment | (437) | (427) | (699) |
Net cash provided by (used in) investing activities | (3,501) | 7,599 | (62,616) |
Cash flows from financing activities: | |||
Exercise of options into Ordinary Shares | 16 | ||
Net cash provided by financing activities | 16 | ||
Foreign currency translation adjustments on cash and cash equivalents | (101) | (202) | (27) |
Increase (decrease) in cash and cash equivalents | (1,600) | 7,347 | (55,787) |
Cash and cash equivalents at beginning of the year | 13,548 | 6,201 | 61,988 |
Cash and cash equivalents at end of the year | 11,948 | 13,548 | 6,201 |
Purchase of property and equipment | 55 | 36 | 47 |
Net increase (decrease) in operating lease right-of-use assets | 117 | (1,492) | 1,133 |
(b) Cash paid during the year for: | |||
Taxes on income | $ 82 | $ 128 | $ 118 |
General
General | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1: - GENERAL a. RADCOM Ltd. (the “Company”), an Israeli corporation, is a leading provider of 5G ready cloud-native, network intelligence and service assurance solutions for telecom operators (“CSP”). The Company’s solutions support CSPs in their transition to virtualization and 5G networks, delivering dynamic, on-demand service assurance and network troubleshooting for real time customer and service insights The Company’s solutions include RADCOM Service Assurance, a cloud-native, 5G-ready, fully virtualized service assurance solutions which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; 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 5G, Long Term Evolution (“LTE”), Voice over LTE (“VoLTE”), Voice over Wifi (“VoWifi”), IP Multimedia Subsystem (“IMS”), Voice over IP (“VoIP”), and Universal Mobile Telecommunication Service (“UMTS”). 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 customer support and development services worldwide. b. The Company depends on a limited number of customers for selling its solution. Such customers accounted for 88% of the Company’s revenues for the year ended December 31, 2021. If these customers become unable or unwilling to continue to buy the Company’s solution, it could adversely affect the Company’s results of operations and financial position (see also Note 12b). The loss of any major customer, a significant decrease in business from any such customer or a reduction in customer revenue due to adverse changes in the market, economic or competitive conditions or other factors could have a material adverse effect on the Company’s business, results of operations and financial condition. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters.” Other than in the Company’s subsidiary in Brazil, all exchange gains and losses from 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 is the BRL, all amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments are reported as a component of accumulated other comprehensive income in shareholders’ equity. c. Principles of consolidation: The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. d. Cash 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. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months but less than one year and which do not meet the definition of cash equivalents . Such deposits include annual interest rates ranging between 0.56%-1.6% resulting in accrued interest of $144 f. Trade receivables: Trade receivables are recorded and carried at the original invoiced amount which was recognized as revenues less an allowance for credit losses. The Company grants credit to customers without generally requiring collateral or security. The Company makes estimates of expected credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company’s consolidated statements of income (loss). Allowance for credit losses as of December 31, 2020 and 2021, amounted to $5 for both years. 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, short-term bank deposits, 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. h. Inventories: Inventories are stated at the lower of cost and net realizable value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. 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. The total inventory write-offs during the year ended December 31, 2020 amounted to $14. No inventory write-offs were recorded during the years ended December 31, 2021 and 2019. 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 - 20 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, 2021, 2020 and 2019, no impairment losses were identified. k. Leases Under ASC 842, “Leases” (“ASC 842”), the Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract includes an identified asset, (2) whether the Company obtains substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct how and for what purpose the identified asset is used throughout the period. The Company elected the package of practical expedients permitted under the standard related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the operating lease right-of-use (“ROU”) assets and operating lease liabilities. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company consider only payments that are fixed and determinable at the time of commencement. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. Several of the Company’s leases include options to extend the lease and some have termination options that are factored into the Company’s determination of the lease payments when appropriate. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees. Operating lease expenses are recognized on a straight-line basis over the lease term. For all short-term leases which are less than 12 months and existing short-term leases of those assets in transition, the Company does not recognize operating lease ROU assets or operating lease liabilities, but recognizes lease expenses over the lease term on a straight-line basis. See Note 9 for further information on leases. l. 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 sales per revenue recognition criteria. The Company recognizes revenues in accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation as follows: a) Identify the contract with a customer: b) Identify the performance obligations in the contract: c) Determine the transaction price: 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 result in an adjustment 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. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. As the period of time between delivery and payment for most of the Company's contracts is less than one year, these contracts are not assessed for a significant financing component. In other contracts, the Company determined that those contracts generally do not include a significant financing component, as the primary purpose of the invoicing terms for these contracts is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. 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: Products Services: Projects: 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 additional revenue recognition disclosures. m. Cost of revenues: Cost of revenues is 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”). n. 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 over the requisite service period of each of the awards. For graded vesting awards subject to service conditions only, the Company uses the straight-line attribution method. The Company estimates expected forfeitures. 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. 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 2021 and 2019. The fair value for options granted in 2020 is estimated at the date of grant with the following weighted average assumptions: 2020 Dividend yield 0% Expected exercise factor 2.67 Expected volatility 41.92%-45.21% Risk-free interest 0.25%-0.27% Expected life (in years) 4.32-4.75 Change in Accounting Principle - Share-based Compensation In 2021, the Company elected to change its accounting policy for recognizing share-based compensation expense for graded vesting share awards subject to service conditions only by applying the straight-line attribution method instead of the accelerated attribution method and using an estimated forfeiture rate of awards expected to be forfeited for each award rather than account for the forfeitures as they occur. The change in the recognition of share-based compensation expense represents a change in accounting principle which the Company believes to be preferable because the straight-line attribution method is the predominant method used in its industry and because estimating forfeitures will result in a more accurate attribution of share-based compensation expense since the Company has accumulated during the last few years sufficient historical experience to make a reasonable estimate of the forfeiture pattern of its employees. A change in accounting principle requires retrospective application, if material. The impact of the change in the accounting policy described above to the Company's time-based awards was immaterial to prior periods and to the year ended December 31, 2021. As a result, the Company has accounted for the cumulative effect of this change in its consolidated results for the year ended December 31, 2021. The effect of the new policy was a decrease in net loss of $141, or $0.01 per share (basic and diluted), for the year ended December 31, 2021. o. Research and development costs: Research and development costs are charged to the statement of operations as incurred except for royalty-bearing participation from the IIA as described in Note 2p. 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. p. 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 8a1). 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 (see also Note 8a2). q. Income (loss 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, 956,356, 877,195 and 802,159 for the years ended December 31, 2021, 2020 and 2019, respectively. r. 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. Deferred tax assets and liabilities are classified as noncurrent on the balance sheet. 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. s. Income tax uncertainties: In accordance with ASC 740, 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, 2021 and 2020, no liability for unrecognized tax benefits was recorded. t. Severance pay: The Company’s liability for severance pay is recorded mainly with respect to its Israeli employees and 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, 2021, 2020 and 2019 amounted to $922, $1,195, and $1,150, respectively. u. Fair value of financial instruments: The Company follows the provisions of ASC No. 820, “Fair Value Measurement”, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: Level 1 - Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The financial instruments of the Company consist mainly of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables and other liabilities and accrued expenses. The fair values of the Company cash and cash equivalents, account receivables, and account payables approximate their carrying amounts due to their short-term nature. v. 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. w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) 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. x. Recently issued and adopted accounting standards: In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2020-12”), which simplifies the accounting for income taxes. ASU 2019-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2020. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. y. Recently issued accounting standards: In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity's financial statements. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company will adopt this standard on January 1, 2022. The Company does not expect that the adoption of this standard will result in a material impact on the Company's consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenues Disclosure [Abstract] | |
REVENUES | NOTE 3: - REVENUES Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control is either transferred over time or at a point in time, which affects the revenue recognition schedule. Costs to obtain contracts The Company capitalizes an asset for the incremental costs of obtaining a contract whenever such expenses are expected to be recovered. Capitalized costs derive primarily from sales commissions or incentives granted to employees and partners. The Company’s contracts with customers include performance obligations related to products and services, some of which are satisfied at a point in time and others over time. Commission costs related to performance obligations satisfied at a point in time are expensed at the time of sale, which is when revenue is recognized. Commission costs related to long-term service contracts and performance obligations satisfied over time are deferred and recognized on a systematic basis that is consistent with the transfer of the products or services to which the asset relates. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of income (loss). Deferred commission costs capitalized are periodically reviewed for impairment. As of December 31, 2021 and 2020, the deferred commission costs capitalized included within other long-term receivables in the consolidated balance sheets were $1,052 and $1,994, respectively. During the year ended December 31, 2021, the Company recorded new contract acquisition assets in the amount of $248 and amortized $1,190 of capitalized contract acquisition costs into sales and marketing expense. No impairment losses were recognized during such period. Contract balances The Company receives payments from customers based upon contractual payment schedules. Trade receivables are recorded when the right to consideration becomes unconditional, and an invoice is issued to the customer. Unbilled receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. As of December 31, 2021 and 2020, unbilled receivables balances amounted to $1,457 and $2,570, respectively and are included within trade receivables balance in the Company’s balance sheets. As of December 31, 2021, the Company had $39,927 of remaining performance obligations not yet satisfied or partly satisfied related to revenues. The Company expects to recognize approximately 67% of this amount as revenues during the next 12 months and the rest thereafter. During the year ended December 31, 2021, the Company recognized $2,333 that was included in deferred revenues (short-term contract liability) balance on January 1, 2021. For disaggregation of revenues please see Note 12b. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4: - INVENTORIES December 31, 2021 2020 Finished products (*) $ 931 $ 540 (*) Includes amounts of $570 and $399 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which control has not been transferred. |
Other Accounts Receivable and P
Other Accounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 5: - OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2021 2020 Governmental authorities $ 340 $ 252 Prepaid expenses 1,593 1,135 Others 31 50 $ 1,964 $ 1,437 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6: - PROPERTY AND EQUIPMENT, NET Composition of assets, grouped by major classification, is as follows: December 31, 2021 2020 Cost: Computers and electronic equipment $ 4,235 $ 3,806 Office furniture and equipment 404 392 Leasehold improvements 297 277 4,936 4,475 Accumulated depreciation: Computers and electronic equipment 3,399 2,945 Office furniture and equipment 179 151 Leasehold improvements 98 68 3,676 3,164 $ 1,260 $ 1,311 Depreciation expenses for the years ended December 31, 2021, 2020 and 2019 amounted to $540, $699 and $752, respectively. |
Other Current Liabilities and A
Other Current Liabilities and Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES | NOTE 7: - OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES December 31, 2021 2020 Royalties - IIA payable $ 1,026 $ 986 Accrued commissions 1,040 2,018 Accrued expenses 3,362 1,717 $ 5,428 $ 4,721 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8: - 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, 2021, the Company’s total commitment with respect to royalty-bearing participation received or accrued, net of royalties paid or accrued, amounted to $53,288. The total research and development grants that the Company has received from the IIA as of December 31, 2021 were $48,403. The accumulated interest as of December 31, 2021, was $23,489 and the accumulated royalties paid to the IIA were $18,604. Royalty expenses relating to the IIA grants included in cost of revenues during the years ended December 31, 2021, 2020 and 2019 were $1,209, $1,127, and $990, 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 was 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 received by the Company from the MOE during the years 2012 to 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. No royalties were paid to the MOE during the years ended December 31, 2019, 2020 and 2021. 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 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 $627). According to the above, as of December 31, 2021, the total royaltyies commitment the Company may be required to pay is an amount of up to $941 out of which $518 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 $423 as of December 31, 2021. 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. Bank guarantee: As of December 31, 2021, the Company issued a bank guarantee to the Israeli Customs Authority that amounted to $40, which will expire on April 30, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
LEASES | NOTE 9: - LEASES The Company has entered into various operating lease agreements for certain of its offices and car leases with original lease periods expiring between 2021 and 2028. Most of the lease agreements include one or more options to renew. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. In December 2020, the Company’s lease of its offices in Israel was amended. The amendment included a decrease in rental space and price per meter, as a result of the amendment, the operating lease right of use decreased by $1,717 and the operating lease liability decreased by $2,233, the Company recorded a foreign currency exchange gain of $484 and a termination gain within operating income of $32. Lease payments included in the measurement of the operating lease liability comprise the following: the fixed non-cancelable lease payments and payments for optional renewal periods where it is reasonably certain the renewal period will be exercised. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2021, the Company’s assessment for the remaining lease term range between 0.9 years to 6.3 years, including options to extend part of the lease agreements for an additional 2 years and up to 5 years. The following table represents the weighted-average remaining lease term and discount rate: December 31, December 31, 2021 2020 Weighted average remaining lease term 1.84 years 2.20 years Weighted average discount rate 4.92 % 4.46 % The components of lease expense for the year ended December 31, 2021 were as follows: Year ended Year ended December 31, 2021 December 31, 2020 Operating lease $ 1,173 $ 1,223 Short-term lease 5 6 Total lease expense $ 1,178 $ 1,229 Cash paid for amounts included in the measurement of operating lease liabilities was $1,125 and $1,184 during the years ended December 31, 2021 and 2020, respectively. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2021: Operating Leases 2022 1,014 2023 340 2024 208 2025 129 2026 and thereafter 302 Total operating lease payments $ 1,993 Less: imputed interest 54 Present value of lease liabilities $ 1,939 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2021 | |
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 of 23% for all years presented. 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, 2021. In accordance with the tax laws, tax returns submitted up to and including the 2016 tax year can be regarded as final. As of December 31, 2021, no final tax assessments have been received for such years. Tax loss carryforward: As of December 31, 2021, the Company’s estimated tax loss carryforward and capital loss were $38,362 and $1,283, respectively. Such losses can be carried forward indefinitely to offset any future taxable income of the Company. The Company’s research and development expenses carryforward for tax purposes in Israel amounted to approximately $14,029. 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 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 $2,328 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 2016 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 $2,740 as of December 31, 2021, 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 2016 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 2018 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 2021 2020 Deferred tax assets: Carryforward tax losses $ 10,540 $ 10,391 Research and development 3,227 2,862 Accrued social benefits and other 505 567 14,272 13,820 Less - valuation allowance (14,272 ) (13,820 ) Net deferred tax assets $ - $ - The net change in the total valuation allowance for the year ended December 31, 2021 was an increase of $452. 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 mainly 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, 2021 2020 2019 Domestic $ (6,030 ) $ (4,271 ) $ (7,107 ) Foreign 891 499 444 Loss before income taxes $ (5,139 ) $ (3,772 ) $ (6,663 ) f. Reconciliation of the theoretical tax benefit and the actual tax expense: Year ended December 31, 2021 2020 2019 Loss before income taxes, as reported in the statements of operations $ (5,139 ) $ (3,772 ) $ (6,663 ) Statutory tax rate in Israel 23 % 23 % 23 % Theoretical tax benefit $ (1,182 ) $ (868 ) $ (1,532 ) Increase (decrease) in income taxes resulting from: Tax rate differential on foreign subsidiaries (31 ) (50 ) 12 Non-deductible expenses and other permanent differences 631 393 473 Differences in taxes arising from foreign currency exchange, net 69 257 42 Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided 481 310 910 Other 156 178 264 Income taxes $ 124 $ 220 $ 169 g. Accounting for uncertainty in income taxes: For the years ended December 31, 2021, 2020 and 2019 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, 2021 | |
Shareholders’ Equity Text Block [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 11: - SHAREHOLDERS’ EQUITY a. The number of Ordinary Shares outstanding at December 31, 2021, and 2020 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. 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, 2019, the Company’s Board approved the grant of 388,020 RSUs to certain employees and officers of the Company. Such RSUs have vesting schedules of four years, commencing as of the date of grant. c) During the year ended December 31, 2020, the Company’s Board approved the grant of 340,000 RSUs and 35,100 options to certain employees, officers and directors of the Company. Such Options and RSUs have vesting schedules of 2-4 years, commencing as of the date of grant. d) During the year ended December 31, 2021, the Company’s Board approved the grant of 782,350 RSUs to certain employees and officers of the Company. Such RSUs have vesting schedules of 2-4 years, commencing as of the date of grant. As of December 31, 2021, the total number of shares reserved under the 2013 Share Option Plan, is 3,950,000, out of which 1,544,676 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, 2021 under the Company’s plans are as follows: Number of Weighted Weighted (in years) Aggregate Outstanding as of January 1, 2021 305,839 14.21 1.33 98 Granted - - Exercised - - Expired and forfeited (166,159 ) 12.40 Outstanding as of December 31, 2021 139,680 16.36 1.20 181 Vested and expected to vest at December 31, 2021 139,680 16.36 1.20 181 Exercisable as of December 31, 2021 121,155 17.70 0.85 85 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 2021 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, 2021. This amount is impacted by the changes in the fair market value of the Company’s Ordinary Shares. 3. As of December 31, 2021, stock options under the 2013 Share Option Plan are as follows: Options outstanding at December 31, 2021 Options exercisable at December 31, 2021 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 7.60 35,100 7.60 3.52 16,575 7.60 3.53 18.90 60,002 18.90 0.10 60,002 18.90 0.10 19.85 44,578 19.85 0.87 44,578 19.85 0.87 139,680 121,155 4. RSUs for the year ended December 31, 2021 under the Company’s 2013 Share Option Plan are as follows: Number of Weighted (in years) Aggregate Outstanding as of January 1, 2021 551,175 1.51 $ 5,732 Granted 782,350 Vested (223,730 ) Cancelled (60,866 ) Outstanding as of December 31, 2021 1,048,929 1.54 $ 13,689 5. The weighted average fair value of options granted during the year ended December 31, 2020 was $ 3.41 per share 6. The weighted average fair values of RSUs granted during the years ended December 31, 2021, 2020 and 2019 were $11.36, $9.31 and $7.86 per share, respectively. 7. The following table summarizes the allocation of the Company’s share-based compensation within the statements of operations: Year ended December 31, 2021 (*) 2020 (*) 2019 (*) Cost of revenues $ 207 $ 106 $ 204 Research and development, net 1,368 879 729 Sales and marketing 865 536 638 General and administrative 916 648 657 $ 3,356 $ 2,169 $ 2,228 (*) Including $3,271, $2,107 and $1,887 of compensation cost related to RSUs for the years ended December 31, 2021, 2020 and 2019, respectively. 8. As of December 31, 2021, there are $6,749 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 1.00 years. |
Selected Statements of Operatio
Selected Statements of Operations Data | 12 Months Ended |
Dec. 31, 2021 | |
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 tables present total revenues for the years ended December 31, 2021, 2020 and 2019 and long lived assets, net as of December 31, 2021 and 2020 by geographic regions: 1. Revenues by geographic region are as follows: Year ended December 31, 2021 2020 2019 North America $ 21,777 $ 20,323 $ 14,500 Asia* 14,686 15,190 14,146 Latin America 1,071 223 2,653 EMEA (including Israel) 2,748 1,826 1,711 $ 40,282 $ 37,562 $ 33,010 (*) Includes Japan and the Philippines which accounted for more than 10% of Company’s revenues in all years presented. Total revenues are attributed to geographic areas are based on the location of the end-customer. In 2021, 2020 and 2019, the amount of export revenues represented 94%, 96% and 96%, respectively, of the Company’s total revenues. 2. Major customer data as a percentage of total revenues: Year ended December 31, 2021 2020 2019 A 52 53 41 B 26 29 22 C 10 11 20 88 % 93 % 83 % 3. Long-lived assets by geographic areas: Year ended December 31, 2021 2020 Israel $ 1,730 $ 2,633 United States 885 1,049 Other 453 574 Total long-lived assets (1) $ 3,068 $ 4,256 (1) Long-lived assets are comprised of property and equipment, net and operating lease right-of use. c. Financial income, net: Years ended December 31, 2021 2020 2019 Financial Income: Interest income $ 666 $ 1,133 $ 1,775 Foreign currency exchange gain 250 878 338 916 2,011 2,113 Financial expenses: Bank charges (15 ) (15 ) (16 ) Foreign currency exchange loss (547 ) (1,186 ) (925 ) (562 ) (1,201 ) (941 ) $ 354 $ 810 $ 1,172 d. Net 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, 2021 2020 2019 Numerator: Numerator for basic net loss per Ordinary Share $ (5,263 ) $ (3,992 ) $ (6,832 ) Effect of dilutive securities: Share-based compensation granted - - - Numerator for dilutive net loss per Ordinary Share $ (5,263 ) $ (3,992 ) $ (6,832 ) Denominator: Denominator for dilutive net loss per Ordinary Share - weighted average number of Ordinary Shares 14,124,404 13,927,788 13,779,885 Effect of dilutive securities: Share-based compensation granted - - - Denominator for diluted net loss per Ordinary 14,124,404 13,927,788 13,779,885 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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. 1. Certain premises occupied by the Company and its U.S. subsidiary are rented from related parties in which Mr. Zohar Zisapel holds an interest (see also Note 9). The aggregate net amounts of lease and related maintenance expenses were $830, $863 and $912 in 2021, 2020 and 2019, respectively. Following the adoption of ASC 842 commencing January 1, 2019, the Company also recorded operating lease right-of use assets and operating lease liabilities related to such lease and maintenance expenses which are presented in Note 13e below. 2. Mr. Zisapel also holds an interest in and serves as director for various entities known as the RAD-BYNET Group. 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 $33, $30 and $49 in 2021, 2020 and 2019, respectively. Such amounts expensed by the Company are disclosed in Note 13f below as part of “Expenses” and “Capital expenses”. 3. From time to time, the Company purchases certain products and services from members of the RAD-BYNET Group. No such purchases were made in 2019, however, in 2021 and 2020, the aggregate amounts of such purchases were approximately $446 and $52, respectively. Such amounts expensed by the Company are disclosed in Note 13f below as part of “Expenses”. b. The executive chairman of the Board, Ms. Rachel (Heli) Bennun (the “Executive Chairman”) is, among other things, Mr. Zisapel’s significant other. The Executive Chairman is entitled to a fixed monthly salary. During the years ended December 31, 2021, 2020 and 2019 the Company recorded salary expenses with respect to the Executive Chairman in the amount of $119, $112 and $108, respectively. Such amounts expensed by the Company are disclosed in Note 13f below as part of “Expenses”. c. The Company’s former Chief Financial Officer is a member of the board of directors and chairman of the audit committee of Matrix IT Ltd. (“Matrix”). Accordingly, as of October 2019, Matrix is considered a related party. 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 services provided by Matrix or its affiliates, as a related party, amounted to $121, $67 and $288 during the years ended December 31, 2021, 2020 and 2019, respectively. Such amount expensed by the Company is disclosed in Note 13f below as part of “Expenses”. d. Balances with related parties: December 31, 2021 2020 Assets: Other accounts receivable and prepaid $ 165 $ - Operating lease right-of-use assets $ 1,303 $ 1,997 Liabilities: Trade payables $ 194 $ 76 Other liabilities and accrued expenses $ 88 $ 49 Operating lease liabilities - current $ 778 $ 671 Operating lease liabilities – non-current $ 615 $ 1,352 e. Transactions with related parties: Year ended December 31, 2021 2020 2019 Expenses (1): Cost of revenues $ 189 $ 215 $ 320 Operating expenses: Research and development, net $ 1,083 $ 653 $ 829 Sales and marketing $ 194 $ 191 $ 172 General and administrative $ 212 $ 206 $ 211 Capital expenses $ 29 $ - $ 12 (1) Including utilities expenses charged to the related party and reimbursed by the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14: - SUBSEQUENT EVENTS During February 2022, the Company’s Board approved the grant of 298,000 RSUs to certain employees and officers of the Company. Such RSUs have vesting schedules of 2-4 years, commencing as of the date of grant. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters.” Other than in the Company’s subsidiary in Brazil, all exchange gains and losses from 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 is the BRL, all amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments are reported as a component of accumulated other comprehensive income in 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. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months but less than one year and which do not meet the definition of cash equivalents . Such deposits include annual interest rates ranging between 0.56%-1.6% resulting in accrued interest of $144 |
Trade receivables | f. Trade receivables: Trade receivables are recorded and carried at the original invoiced amount which was recognized as revenues less an allowance for credit losses. The Company grants credit to customers without generally requiring collateral or security. The Company makes estimates of expected credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company’s consolidated statements of income (loss). Allowance for credit losses as of December 31, 2020 and 2021, amounted to $5 for both years. |
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, short-term bank deposits, 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. |
Inventories | h. Inventories: Inventories are stated at the lower of cost and net realizable value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. 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. The total inventory write-offs during the year ended December 31, 2020 amounted to $14. No inventory write-offs were recorded during the years ended December 31, 2021 and 2019. |
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 - 20 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, 2021, 2020 and 2019, no impairment losses were identified. |
Leases | k. Leases Under ASC 842, “Leases” (“ASC 842”), the Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract includes an identified asset, (2) whether the Company obtains substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct how and for what purpose the identified asset is used throughout the period. The Company elected the package of practical expedients permitted under the standard related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the operating lease right-of-use (“ROU”) assets and operating lease liabilities. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company consider only payments that are fixed and determinable at the time of commencement. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. Several of the Company’s leases include options to extend the lease and some have termination options that are factored into the Company’s determination of the lease payments when appropriate. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees. Operating lease expenses are recognized on a straight-line basis over the lease term. For all short-term leases which are less than 12 months and existing short-term leases of those assets in transition, the Company does not recognize operating lease ROU assets or operating lease liabilities, but recognizes lease expenses over the lease term on a straight-line basis. See Note 9 for further information on leases. |
Revenue recognition | l. 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 sales per revenue recognition criteria. The Company recognizes revenues in accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation as follows: a) Identify the contract with a customer: b) Identify the performance obligations in the contract: c) Determine the transaction price: 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 result in an adjustment 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. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. As the period of time between delivery and payment for most of the Company's contracts is less than one year, these contracts are not assessed for a significant financing component. In other contracts, the Company determined that those contracts generally do not include a significant financing component, as the primary purpose of the invoicing terms for these contracts is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. 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: Products Services: Projects: 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 additional revenue recognition disclosures. |
Cost of revenues | m. Cost of revenues: Cost of revenues is 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 | n. 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 over the requisite service period of each of the awards. For graded vesting awards subject to service conditions only, the Company uses the straight-line attribution method. The Company estimates expected forfeitures. 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. 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 2021 and 2019. The fair value for options granted in 2020 is estimated at the date of grant with the following weighted average assumptions: 2020 Dividend yield 0% Expected exercise factor 2.67 Expected volatility 41.92%-45.21% Risk-free interest 0.25%-0.27% Expected life (in years) 4.32-4.75 Change in Accounting Principle - Share-based Compensation In 2021, the Company elected to change its accounting policy for recognizing share-based compensation expense for graded vesting share awards subject to service conditions only by applying the straight-line attribution method instead of the accelerated attribution method and using an estimated forfeiture rate of awards expected to be forfeited for each award rather than account for the forfeitures as they occur. The change in the recognition of share-based compensation expense represents a change in accounting principle which the Company believes to be preferable because the straight-line attribution method is the predominant method used in its industry and because estimating forfeitures will result in a more accurate attribution of share-based compensation expense since the Company has accumulated during the last few years sufficient historical experience to make a reasonable estimate of the forfeiture pattern of its employees. |
Research and development costs | o. Research and development costs: Research and development costs are charged to the statement of operations as incurred except for royalty-bearing participation from the IIA as described in Note 2p. 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 | p. 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 8a1). 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 (see also Note 8a2). |
Income (loss) per share | q. Income (loss 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, 956,356, 877,195 and 802,159 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income taxes | r. 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. Deferred tax assets and liabilities are classified as noncurrent on the balance sheet. 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 | s. Income tax uncertainties: In accordance with ASC 740, 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, 2021 and 2020, no liability for unrecognized tax benefits was recorded. |
Severance pay | t. Severance pay: The Company’s liability for severance pay is recorded mainly with respect to its Israeli employees and 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, 2021, 2020 and 2019 amounted to $922, $1,195, and $1,150, respectively. |
Fair value of financial instruments | u. Fair value of financial instruments: The Company follows the provisions of ASC No. 820, “Fair Value Measurement”, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: Level 1 - Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The financial instruments of the Company consist mainly of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables and other liabilities and accrued expenses. The fair values of the Company cash and cash equivalents, account receivables, and account payables approximate their carrying amounts due to their short-term nature. |
Legal contingencies | v. 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 (loss) | w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) 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 and adopted accounting standards | x. Recently issued and adopted accounting standards: In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2020-12”), which simplifies the accounting for income taxes. ASU 2019-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2020. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. |
Recently issued accounting standards | y. Recently issued accounting standards: In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity's financial statements. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company will adopt this standard on January 1, 2022. The Company does not expect that the adoption of this standard will result in a material impact on the Company's consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of annual rates of depreciation | % Computers and electronic equipment 15 - 33 Office furniture and equipment 6 - 20 Leasehold improvements At the shorter of the lease period or useful life of the leasehold improvement |
Schedule of fair value for options granted | 2020 Dividend yield 0% Expected exercise factor 2.67 Expected volatility 41.92%-45.21% Risk-free interest 0.25%-0.27% Expected life (in years) 4.32-4.75 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2021 2020 Finished products (*) $ 931 $ 540 (*) Includes amounts of $570 and $399 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which control has not been transferred. |
Other Accounts Receivable and_2
Other Accounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of other accounts receivable and prepaid expenses | December 31, 2021 2020 Governmental authorities $ 340 $ 252 Prepaid expenses 1,593 1,135 Others 31 50 $ 1,964 $ 1,437 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of composition of assets grouped by major classification | December 31, 2021 2020 Cost: Computers and electronic equipment $ 4,235 $ 3,806 Office furniture and equipment 404 392 Leasehold improvements 297 277 4,936 4,475 Accumulated depreciation: Computers and electronic equipment 3,399 2,945 Office furniture and equipment 179 151 Leasehold improvements 98 68 3,676 3,164 $ 1,260 $ 1,311 |
Other Current Liabilities and_2
Other Current Liabilities and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of other current liabilities and accrued expenses | December 31, 2021 2020 Royalties - IIA payable $ 1,026 $ 986 Accrued commissions 1,040 2,018 Accrued expenses 3,362 1,717 $ 5,428 $ 4,721 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of weighted-average remaining lease term and discount rate | December 31, December 31, 2021 2020 Weighted average remaining lease term 1.84 years 2.20 years Weighted average discount rate 4.92 % 4.46 % |
Schedule of lease expense | Year ended Year ended December 31, 2021 December 31, 2020 Operating lease $ 1,173 $ 1,223 Short-term lease 5 6 Total lease expense $ 1,178 $ 1,229 |
Schedule of maturities of lease liabilities | Operating Leases 2022 1,014 2023 340 2024 208 2025 129 2026 and thereafter 302 Total operating lease payments $ 1,993 Less: imputed interest 54 Present value of lease liabilities $ 1,939 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of deferred tax assets and liabilities | December 31 2021 2020 Deferred tax assets: Carryforward tax losses $ 10,540 $ 10,391 Research and development 3,227 2,862 Accrued social benefits and other 505 567 14,272 13,820 Less - valuation allowance (14,272 ) (13,820 ) Net deferred tax assets $ - $ - |
Schedule of components of income (loss) before income taxes | Year ended December 31, 2021 2020 2019 Domestic $ (6,030 ) $ (4,271 ) $ (7,107 ) Foreign 891 499 444 Loss before income taxes $ (5,139 ) $ (3,772 ) $ (6,663 ) |
Schedule of reconciliation of theoretical tax benefit and actual tax expense | Year ended December 31, 2021 2020 2019 Loss before income taxes, as reported in the statements of operations $ (5,139 ) $ (3,772 ) $ (6,663 ) Statutory tax rate in Israel 23 % 23 % 23 % Theoretical tax benefit $ (1,182 ) $ (868 ) $ (1,532 ) Increase (decrease) in income taxes resulting from: Tax rate differential on foreign subsidiaries (31 ) (50 ) 12 Non-deductible expenses and other permanent differences 631 393 473 Differences in taxes arising from foreign currency exchange, net 69 257 42 Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided 481 310 910 Other 156 178 264 Income taxes $ 124 $ 220 $ 169 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of stock options | Number of Weighted Weighted (in years) Aggregate Outstanding as of January 1, 2021 305,839 14.21 1.33 98 Granted - - Exercised - - Expired and forfeited (166,159 ) 12.40 Outstanding as of December 31, 2021 139,680 16.36 1.20 181 Vested and expected to vest at December 31, 2021 139,680 16.36 1.20 181 Exercisable as of December 31, 2021 121,155 17.70 0.85 85 |
Schedule of stock options under the 2013 share option plan | Options outstanding at December 31, 2021 Options exercisable at December 31, 2021 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 7.60 35,100 7.60 3.52 16,575 7.60 3.53 18.90 60,002 18.90 0.10 60,002 18.90 0.10 19.85 44,578 19.85 0.87 44,578 19.85 0.87 139,680 121,155 |
Schedule of RSUs under the company’s 2013 Share Option Plan | Number of Weighted (in years) Aggregate Outstanding as of January 1, 2021 551,175 1.51 $ 5,732 Granted 782,350 Vested (223,730 ) Cancelled (60,866 ) Outstanding as of December 31, 2021 1,048,929 1.54 $ 13,689 |
Schedule of department allocation of share-based compensation charges | Year ended December 31, 2021 (*) 2020 (*) 2019 (*) Cost of revenues $ 207 $ 106 $ 204 Research and development, net 1,368 879 729 Sales and marketing 865 536 638 General and administrative 916 648 657 $ 3,356 $ 2,169 $ 2,228 (*) Including $3,271, $2,107 and $1,887 of compensation cost related to RSUs for the years ended December 31, 2021, 2020 and 2019, respectively. |
Selected Statements of Operat_2
Selected Statements of Operations Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Selected Statements of Operations Data [Abstract] | |
Schedule of revenues by geographic region | Year ended December 31, 2021 2020 2019 North America $ 21,777 $ 20,323 $ 14,500 Asia* 14,686 15,190 14,146 Latin America 1,071 223 2,653 EMEA (including Israel) 2,748 1,826 1,711 $ 40,282 $ 37,562 $ 33,010 |
Schedule of major customer percentage of revenue | Year ended December 31, 2021 2020 2019 A 52 53 41 B 26 29 22 C 10 11 20 88 % 93 % 83 % |
Schedule of long-lived assets | Year ended December 31, 2021 2020 Israel $ 1,730 $ 2,633 United States 885 1,049 Other 453 574 Total long-lived assets (1) $ 3,068 $ 4,256 |
Schedule of financial income, net | Years ended December 31, 2021 2020 2019 Financial Income: Interest income $ 666 $ 1,133 $ 1,775 Foreign currency exchange gain 250 878 338 916 2,011 2,113 Financial expenses: Bank charges (15 ) (15 ) (16 ) Foreign currency exchange loss (547 ) (1,186 ) (925 ) (562 ) (1,201 ) (941 ) $ 354 $ 810 $ 1,172 |
Schedule of computation of basic and diluted net income (loss) per ordinary share | Years ended December 31, 2021 2020 2019 Numerator: Numerator for basic net loss per Ordinary Share $ (5,263 ) $ (3,992 ) $ (6,832 ) Effect of dilutive securities: Share-based compensation granted - - - Numerator for dilutive net loss per Ordinary Share $ (5,263 ) $ (3,992 ) $ (6,832 ) Denominator: Denominator for dilutive net loss per Ordinary Share - weighted average number of Ordinary Shares 14,124,404 13,927,788 13,779,885 Effect of dilutive securities: Share-based compensation granted - - - Denominator for diluted net loss per Ordinary 14,124,404 13,927,788 13,779,885 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of balances with related parties | December 31, 2021 2020 Assets: Other accounts receivable and prepaid $ 165 $ - Operating lease right-of-use assets $ 1,303 $ 1,997 Liabilities: Trade payables $ 194 $ 76 Other liabilities and accrued expenses $ 88 $ 49 Operating lease liabilities - current $ 778 $ 671 Operating lease liabilities – non-current $ 615 $ 1,352 |
Schedule of transactions with related parties | Year ended December 31, 2021 2020 2019 Expenses (1): Cost of revenues $ 189 $ 215 $ 320 Operating expenses: Research and development, net $ 1,083 $ 653 $ 829 Sales and marketing $ 194 $ 191 $ 172 General and administrative $ 212 $ 206 $ 211 Capital expenses $ 29 $ - $ 12 (1) Including utilities expenses charged to the related party and reimbursed by the Company. |
General (Details)
General (Details) | Dec. 31, 2021 |
Accounting Policies [Abstract] | |
Revenues percentage | 88.00% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Significant Accounting Policies (Details) [Line Items] | ||||
Warrants excluded from calculation of diluted net income (loss) per share (in Shares) | 956,356 | 877,195 | 802,159 | |
Accrued interest | $ 144 | $ 359 | ||
Net of allowances for doubtful accounts | 5 | 5 | ||
Total inventory write-offs during period | 14 | |||
Effect on decrease in net loss | $ 141 | |||
Effect on decrease in net loss per share (in Dollars per share) | $ 0.01 | |||
Percentage of marketing expenses | 50.00% | |||
Severance expenses | $ 922 | $ 1,195 | $ 1,150 | |
Minimum [Member] | ||||
Significant Accounting Policies (Details) [Line Items] | ||||
Annual Interest rate | 0.56% | |||
Maximum [Member] | ||||
Significant Accounting Policies (Details) [Line Items] | ||||
Annual Interest rate | 1.60% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold improvements [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation [Line Items] | |
Property and equipment, description | At the shorter of the lease period or useful life of the leasehold improvement |
Minimum [Member] | Computers and electronic equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation [Line Items] | |
Property and equipment, percentage | 15.00% |
Minimum [Member] | Office furniture and equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation [Line Items] | |
Property and equipment, percentage | 6.00% |
Maximum [Member] | Computers and electronic equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation [Line Items] | |
Property and equipment, percentage | 33.00% |
Maximum [Member] | Office furniture and equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation [Line Items] | |
Property and equipment, percentage | 20.00% |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of fair value for options granted | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | |
Dividend yield | 0.00% |
Expected exercise factor (in Dollars per share) | $ 2.67 |
Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | |
Expected volatility | 41.92% |
Risk-free interest | 0.25% |
Expected life (in years) | 4 years 3 months 25 days |
Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | |
Expected volatility | 45.21% |
Risk-free interest | 0.27% |
Expected life (in years) | 4 years 9 months |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues Disclosure [Abstract] | ||
Deferred commission costs | $ 1,052 | $ 1,994 |
New contract acquisition assets | 248 | |
Amortized of capitalized contract acquisition asset | 1,190 | |
Unbilled receivables balances amount | 1,457 | $ 2,570 |
Remaining performance obligations | $ 39,927 | |
Percentage of revenues | 67.00% | |
Deferred revenues | $ 2,333 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory delivered to customers | $ 570 | $ 399 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of inventories [Abstract] | |||
Finished products | [1] | $ 931 | $ 540 |
[1] | Includes amounts of $570 and $399 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which control has not been transferred. |
Other Accounts Receivable and_3
Other Accounts Receivable and Prepaid Expenses (Details) - Schedule of other accounts receivable and prepaid expenses - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of other accounts receivable and prepaid expenses [Abstract] | ||
Governmental authorities | $ 340 | $ 252 |
Prepaid expenses | 1,593 | 1,135 |
Others | 31 | 50 |
Other accounts receivable and prepaid expenses, total | $ 1,964 | $ 1,437 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 540 | $ 699 | $ 752 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of composition of assets grouped by major classification - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cost: | ||
Cost | $ 4,936 | $ 4,475 |
Accumulated depreciation: | ||
Accumulated depreciation | 3,676 | 3,164 |
Property, Plant and Equipment, Net | 1,260 | 1,311 |
Computers and electronic equipment [Member] | ||
Cost: | ||
Cost | 4,235 | 3,806 |
Accumulated depreciation: | ||
Accumulated depreciation | 3,399 | 2,945 |
Office furniture and equipment [Member] | ||
Cost: | ||
Cost | 404 | 392 |
Accumulated depreciation: | ||
Accumulated depreciation | 179 | 151 |
Leasehold improvements [Member] | ||
Cost: | ||
Cost | 297 | 277 |
Accumulated depreciation: | ||
Accumulated depreciation | $ 98 | $ 68 |
Other Current Liabilities and_3
Other Current Liabilities and Accrued Expenses (Details) - Schedule of other current liabilities and accrued expenses - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of other current liabilities and accrued expenses [Abstract] | ||
Royalties - IIA payable | $ 1,026 | $ 986 |
Accrued commissions | 1,040 | 2,018 |
Accrued expenses | 3,362 | 1,717 |
Total | $ 5,428 | $ 4,721 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies (Details) [Line Items] | |||
Grants intended costs, description | The grant was 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. | ||
Marketing grants received amount | $ 668 | ||
Royalties rate, description | 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 CPI relating to such products. | ||
Bank guarantee, description | As of December 31, 2021, the Company issued a bank guarantee to the Israeli Customs Authority that amounted to $40, which will expire on April 30, 2022. | ||
Israel Innovation Authority [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Royalty payable range | 3.00% | ||
Percent of grants received paid in royalties | 100.00% | ||
Amount of royalties paid or accrued, | $ 53,288 | ||
Total research and development grants | 48,403 | ||
Accumulated interest, grants | 23,489 | ||
Accumulated royalties paid | 18,604 | ||
Royalty expenses | $ 1,209 | $ 1,127 | $ 990 |
Israeli Ministry of Trade [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Royalty payable range | 3.00% | ||
Grant approved over a period | 5 years | ||
BIRD-F [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Accumulated royalties paid | $ 423 | ||
Proceeds from grants received | 340 | ||
Linkage to CPI | 627 | ||
Pay royalties up to an amount | $ 941 | $ 518 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | ||
Operating lease right of use decreased | $ 1,717 | |
Operating lease liability decreased | 2,233 | |
Foreign currency exchange gain | 484 | |
Operating income | 32 | |
Operating lease agreements options to extend, description | As of December 31, 2021, the Company’s assessment for the remaining lease term range between 0.9 years to 6.3 years, including options to extend part of the lease agreements for an additional 2 years and up to 5 years. | |
Measurement of operating lease liabilities | $ 1,125 | $ 1,184 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of weighted-average remaining lease term and discount rate | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of weighted-average remaining lease term and discount rate [Abstract] | ||
Weighted average remaining lease term | 1 year 10 months 2 days | 2 years 2 months 12 days |
Weighted average discount rate | 4.92% | 4.46% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of lease expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of lease expense [Abstract] | ||
Operating lease | $ 1,173 | $ 1,223 |
Short-term lease | 5 | 6 |
Total lease expense | $ 1,178 | $ 1,229 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2022 | $ 1,014 |
2023 | 340 |
2024 | 208 |
2025 | 129 |
2026 and thereafter | 302 |
Total operating lease payments | 1,993 |
Less: imputed interest | 54 |
Present value of lease liabilities | $ 1,939 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Aug. 31, 2013 | Dec. 31, 2021 | Dec. 22, 2017 | |
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 23.00% | |||
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%. | |||
Companies foreign currency exchange rate | 90.00% | |||
Subject to tax at a rate | 4.00% | |||
Tax loss carry forward (in Dollars) | $ 38,362 | |||
Capital loss (in Dollars) | $ 1,283 | |||
Maximum offset percentage of taxable income for tax period | 30.00% | |||
Net change in total valuation allowance (in Dollars) | $ 452 | |||
U.S. subsidiary [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 21.00% | |||
Tax credit carryforward, description | Such losses are available to offset any future U.S. taxable income of the U.S. subsidiary and will expire in the years 2022-2026 for federal tax purposes. | 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. | ||
Tax loss carry forward (in Dollars) | $ 2,328 | |||
Brazilian subsidiary [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 34.00% | |||
Tax loss carry forward (in Dollars) | $ 2,740 | |||
Indian subsidiary [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 25.00% | |||
Development area A [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 7.50% | |||
Other areas [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Income tax rate | 12.00% | |||
Research and Development Expense [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax loss carry forward (in Dollars) | $ 14,029 |
Taxes on Income (Details) - Sch
Taxes on Income (Details) - Schedule of significant components of deferred tax assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Carryforward tax losses | $ 10,540 | $ 10,391 |
Research and development | 3,227 | 2,862 |
Accrued social benefits and other | 505 | 567 |
Deferred tax assets, gross | 14,272 | 13,820 |
Less - valuation allowance | (14,272) | (13,820) |
Net deferred tax assets |
Taxes on Income (Details) - S_2
Taxes on Income (Details) - Schedule of components of income (loss) before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of components of income (loss) before income taxes [Abstract] | |||
Domestic | $ (6,030) | $ (4,271) | $ (7,107) |
Foreign | 891 | 499 | 444 |
Loss before income taxes | $ (5,139) | $ (3,772) | $ (6,663) |
Taxes on Income (Details) - S_3
Taxes on Income (Details) - Schedule of reconciliation of theoretical tax benefit and actual tax expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of reconciliation of theoretical tax benefit and actual tax expense [Abstract] | |||
Loss before income taxes, as reported in the statements of operations | $ (5,139) | $ (3,772) | $ (6,663) |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% |
Theoretical tax benefit | $ (1,182) | $ (868) | $ (1,532) |
Increase (decrease) in income taxes resulting from: | |||
Tax rate differential on foreign subsidiaries | (31) | (50) | 12 |
Non-deductible expenses and other permanent differences | 631 | 393 | 473 |
Differences in taxes arising from foreign currency exchange, net | 69 | 257 | 42 |
Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided | 481 | 310 | 910 |
Other | 156 | 178 | 264 |
Income taxes | $ 124 | $ 220 | $ 169 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shareholders' Equity (Details) [Line Items] | |||
Ordinary shares issued | 5,189 | ||
Ordinary shares held by the company | 30,843,000 | ||
Weighted average fair values of RSUs granted (in Dollars per share) | $ 3.41 | ||
Restricted Stock Units (RSUs) [Member] | |||
Shareholders' Equity (Details) [Line Items] | |||
Shares grant of RSUs | 782,350 | 35,100 | 388,020 |
Stock option vesting period | 4 years | ||
Weighted average fair values of RSUs granted (in Dollars per share) | $ 11.36 | $ 9.31 | $ 7.86 |
Compensation cost (in Dollars) | $ 3,271 | $ 2,107 | $ 1,887 |
Total unrecognized costs related to non-vested share-based compensation (in Dollars) | $ 6,749 | ||
Recognized over a weighted average period | 1 year | ||
2013 Share Option Plan [Member] | |||
Shareholders' Equity (Details) [Line Items] | |||
Ordinary shares issued | 1,544,676 | ||
Shares grant of RSUs | 340,000 | ||
Total number of shares reserved under share option plan | 3,950,000 | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Shareholders' Equity (Details) [Line Items] | |||
Stock option vesting period | 2 years | 2 years | |
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Shareholders' Equity (Details) [Line Items] | |||
Stock option vesting period | 4 years | 4 years |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of stock options - Employee Stock [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Shareholders' Equity (Details) - Schedule of stock options [Line Items] | |
Number of options, Outstanding, Beginning balance | shares | 305,839 |
Weighted average exercise price, Outstanding, Beginning balance | $ / shares | $ 14.21 |
Weighted average remaining contractual term (in years), Outstanding, Beginning balance | 1 year 3 months 29 days |
Aggregate intrinsic value, Outstanding, Beginning balance | $ | $ 98 |
Number of options, Outstanding, Ending balance | shares | 139,680 |
Weighted average exercise price, Outstanding, Ending balance | $ / shares | $ 16.36 |
Weighted average remaining contractual term (in years), Outstanding, Ending balance | 1 year 2 months 12 days |
Aggregate intrinsic value, Outstanding, Ending balance | $ | $ 181 |
Number of options, Granted | shares | |
Weighted average exercise price, Granted | $ / shares | |
Number of options, Exercised | shares | |
Weighted average exercise price, Exercised | $ / shares | |
Number of options, Expired and forfeited | shares | (166,159) |
Weighted average exercise price, Expired and forfeited | $ / shares | $ 12.4 |
Number of options, Outstanding, Vested and expected to vest | shares | 139,680 |
Weighted average exercise price, Vested and expected to vest | $ / shares | $ 16.36 |
Weighted average remaining contractual term (in years), Vested and expected to vest | 1 year 2 months 12 days |
Aggregate intrinsic value, Vested and expected to vest | $ | $ 181 |
Number of options, Exercisable | shares | 121,155 |
Weighted average exercise price, Exercisable | $ / shares | $ 17.7 |
Weighted average remaining contractual term (in years), Exercisable | 10 months 6 days |
Aggregate intrinsic value, Exercisable | $ | $ 85 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Options outstanding, Number outstanding (in Shares) | shares | 139,680 |
Options exercisable, Number exercisable (in Shares) | shares | 121,155 |
7.60 [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Options outstanding, Number outstanding (in Shares) | shares | 35,100 |
Options outstanding, Weighted average exercise price | $ 7.6 |
Options outstanding, Weighted average remaining contractual life | 3 years 6 months 7 days |
Options exercisable, Number exercisable (in Shares) | shares | 16,575 |
Options exercisable, Weighted average exercise price | $ 7.6 |
Options exercisable, Weighted average remaining contractual life | 3 years 6 months 10 days |
7.60 [Member] | Minimum [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Exercise price | $ 7.6 |
18.90 [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Options outstanding, Number outstanding (in Shares) | shares | 60,002 |
Options outstanding, Weighted average exercise price | $ 18.9 |
Options outstanding, Weighted average remaining contractual life | 1 month 6 days |
Options exercisable, Number exercisable (in Shares) | shares | 60,002 |
Options exercisable, Weighted average exercise price | $ 18.9 |
Options exercisable, Weighted average remaining contractual life | 1 month 6 days |
18.90 [Member] | Minimum [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Exercise price | $ 18.9 |
19.85 [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Options outstanding, Number outstanding (in Shares) | shares | 44,578 |
Options outstanding, Weighted average exercise price | $ 19.85 |
Options outstanding, Weighted average remaining contractual life | 10 months 13 days |
Options exercisable, Number exercisable (in Shares) | shares | 44,578 |
Options exercisable, Weighted average exercise price | $ 19.85 |
Options exercisable, Weighted average remaining contractual life | 10 months 13 days |
19.85 [Member] | Minimum [Member] | |
Shareholders' Equity (Details) - Schedule of stock options under the 2013 share option plan [Line Items] | |
Exercise price | $ 19.85 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details) - Schedule of RSUs under the company’s 2013 Share Option Plan - Restricted Stock Units (RSUs) [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Shareholders' Equity (Details) - Schedule of RSUs under the company’s 2013 Share Option Plan [Line Items] | |
Number of RSUs, Outstanding, beginning balance | 551,175 |
Weighted average remaining contractual term (in years), Outstanding, beginning balance | 1 year 6 months 3 days |
Aggregate intrinsic value, Outstanding, beginning balance (in Dollars) | $ | $ 5,732 |
Number of RSUs, Granted | 782,350 |
Number of RSUs, Vested | (223,730) |
Number of RSUs, Cancelled | (60,866) |
Number of RSUs, Outstanding, ending balance | 1,048,929 |
Weighted average remaining contractual term (in years), Outstanding, ending balance | 1 year 6 months 14 days |
Aggregate intrinsic value, Outstanding, ending balance (in Dollars) | $ | $ 13,689 |
Shareholders' Equity (Details_4
Shareholders' Equity (Details) - Schedule of department allocation of share-based compensation charges - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation | [1] | $ 3,356 | $ 2,169 | $ 2,228 |
Cost of revenues [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation | [1] | 207 | 106 | 204 |
Research and development, net [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation | [1] | 1,368 | 879 | 729 |
Sales and marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation | [1] | 865 | 536 | 638 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation | [1] | $ 916 | $ 648 | $ 657 |
[1] | Including $3,271, $2,107 and $1,887 of compensation cost related to RSUs for the years ended December 31, 2021, 2020 and 2019, respectively. |
Selected Statements of Operat_3
Selected Statements of Operations Data (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selected Statements of Operations Data (Details) [Line Items] | |||
Number of reportable segments | 1 | ||
Concentration risk, percentage | 94.00% | 96.00% | 96.00% |
Revenues [Member] | |||
Selected Statements of Operations Data (Details) [Line Items] | |||
Company’s revenue, percentage | 10.00% |
Selected Statements of Operat_4
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region [Line Items] | ||||
Revenues | $ 40,282 | $ 37,562 | $ 33,010 | |
North America [Member] | ||||
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region [Line Items] | ||||
Revenues | 21,777 | 20,323 | 14,500 | |
Asia [Member] | ||||
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region [Line Items] | ||||
Revenues | [1] | 14,686 | 15,190 | 14,146 |
Latin America [Member] | ||||
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region [Line Items] | ||||
Revenues | 1,071 | 223 | 2,653 | |
EMEA (including Israel) [Member] | ||||
Selected Statements of Operations Data (Details) - Schedule of revenues by geographic region [Line Items] | ||||
Revenues | $ 2,748 | $ 1,826 | $ 1,711 | |
[1] | Includes Japan and the Philippines which accounted for more than 10% of Company’s revenues in all years presented. |
Selected Statements of Operat_5
Selected Statements of Operations Data (Details) - Schedule of major customer percentage of revenue | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selected Statements of Operations Data (Details) - Schedule of major customer percentage of revenue [Line Items] | |||
Percentage of total revenues | 88.00% | 93.00% | 83.00% |
Customer A [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of major customer percentage of revenue [Line Items] | |||
Percentage of total revenues | 52.00% | 53.00% | 41.00% |
Customer B [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of major customer percentage of revenue [Line Items] | |||
Percentage of total revenues | 26.00% | 29.00% | 22.00% |
Customer C [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of major customer percentage of revenue [Line Items] | |||
Percentage of total revenues | 10.00% | 11.00% | 20.00% |
Selected Statements of Operat_6
Selected Statements of Operations Data (Details) - Schedule of long-lived assets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Selected Statements of Operations Data (Details) - Schedule of long-lived assets [Line Items] | |||
Total long-lived assets | [1] | $ 3,068 | $ 4,256 |
Israel [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of long-lived assets [Line Items] | |||
Total long-lived assets | 1,730 | 2,633 | |
United States [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of long-lived assets [Line Items] | |||
Total long-lived assets | 885 | 1,049 | |
Other [Member] | |||
Selected Statements of Operations Data (Details) - Schedule of long-lived assets [Line Items] | |||
Total long-lived assets | $ 453 | $ 574 | |
[1] | Long-lived assets are comprised of property and equipment, net and operating lease right-of use. |
Selected Statements of Operat_7
Selected Statements of Operations Data (Details) - Schedule of financial income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Income: | |||
Interest income | $ 666 | $ 1,133 | $ 1,775 |
Foreign currency exchange gain | 250 | 878 | 338 |
Financial income | 916 | 2,011 | 2,113 |
Financial expenses: | |||
Bank charges | (15) | (15) | (16) |
Foreign currency exchange loss | (547) | (1,186) | (925) |
Financial expenses | (562) | (1,201) | (941) |
Financial income, net | $ 354 | $ 810 | $ 1,172 |
Selected Statements of Operat_8
Selected Statements of Operations Data (Details) - Schedule of computation of basic and diluted net income (loss) per ordinary share - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Numerator for basic net loss per Ordinary Share | $ (5,263) | $ (3,992) | $ (6,832) |
Effect of dilutive securities: | |||
Share-based compensation granted | |||
Numerator for dilutive net loss per Ordinary Share | $ (5,263) | $ (3,992) | $ (6,832) |
Denominator: | |||
Denominator for dilutive net loss per Ordinary Share - weighted average number of Ordinary Shares (in Shares) | 14,124,404 | 13,927,788 | 13,779,885 |
Effect of dilutive securities: | |||
Share-based compensation granted | |||
Denominator for diluted net loss per Ordinary Share - adjusted weighted average number of Ordinary Shares (in Shares) | 14,124,404 | 13,927,788 | 13,779,885 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Aggregate net amounts of lease and maintenance expenses | $ 830 | $ 863 | $ 912 |
Administrative and IT services amount | 33 | 30 | 49 |
Aggregate amounts | 446 | 52 | |
Salary expenses | 119 | 112 | 108 |
Affiliates amount of related party | $ 121 | $ 67 | $ 288 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of balances with related parties - Related Parties [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Other accounts receivable and prepaid | $ 165 | |
Operating lease right-of-use assets | 1,303 | 1,997 |
Liabilities: | ||
Trade payables | 194 | 76 |
Other liabilities and accrued expenses | 88 | 49 |
Operating lease liabilities - current | 778 | 671 |
Operating lease liabilities – non-current | $ 615 | $ 1,352 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of transactions with related parties - Related Party [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Expenses (1): | ||||
Cost of revenues | [1] | $ 189 | $ 215 | $ 320 |
Operating expenses: | ||||
Research and development, net | 1,083 | 653 | 829 | |
Sales and marketing | 194 | 191 | 172 | |
General and administrative | 212 | 206 | 211 | |
Capital expenses | $ 29 | $ 12 | ||
[1] | Including utilities expenses charged to the related party and reimbursed by the Company. |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Feb. 28, 2022 | |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Board approved grants, description | the Company’s Board approved the grant of 298,000 RSUs to certain employees and officers of the Company. Such RSUs have vesting schedules of 2-4 years, commencing as of the date of grant. |