Top Image Systems (TISA) 20-F 26 Apr 16 2015 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2015shares
Document and Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Entity Registrant Name	TOP IMAGE SYSTEMS LTD
Entity Central Index Key	1,021,991
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	17,919,126
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 2,404	$ 4,386
Restricted cash	262	132
Trade receivables (net of allowance for doubtful accounts of $357 and $1,594 at December 31, 2014 and 2015, respectively)	$ 9,348	12,034
Deferred tax assets		749
Other accounts receivable and prepaid expenses	$ 932	787
Total current assets	12,946	18,088
LONG-TERM ASSETS:
Severance pay fund	1,327	1,235
Restricted cash	$ 147	366
Non-current deferred tax assets		522
Long-term deposits and long-term assets	$ 204	245
Property and equipment, net	1,444	1,180
Intangible assets, net	5,058	6,293
Goodwill	19,091	19,377
Total long-term assets	27,271	29,218
Total assets	40,217	$ 47,306
CURRENT LIABILITIES:
Short-term Bank Loans	77
Trade payables	1,541	$ 1,593
Deferred revenues	$ 2,966	3,573
Deferred tax liability		133
Accrued expenses and other accounts payable	$ 4,421	3,815
Total current liabilities	9,005	9,114
LONG-TERM LIABILITIES:
Accrued severance pay	1,533	1,378
Non-current deferred revenues	$ 3,280	2,212
Deferred tax liability		318
Other long-term liabilities	$ 407	447
Total long-term liabilities	5,220	$ 4,355
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.04 par value - Authorized: 125,000,000 shares at December 31, 2014 and 2015; Issued and outstanding: 17,823,959 and 17,919,126 shares at December 31, 2014 and 2015, respectively	199	$ 198
Additional paid-in capital	62,556	61,559
Accumulated other comprehensive loss	(3,021)	(2,454)
Accumulated deficit	(33,767)	(25,472)
Total parent shareholders' equity	25,967	33,831
Non-controlling interest	25	6
Total shareholders' equity	25,992	33,837
Total liabilities and shareholders' equity	$ 40,217	$ 47,306

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2014₪ / shares
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts | $	$ 1,594		$ 357
Ordinary shares, par value per share | ₪ / shares		₪ 0.04		₪ 0.04
Ordinary shares, shares authorized	125,000,000		125,000,000
Ordinary shares, shares issued	17,919,126		17,823,959
Ordinary shares, shares outstanding	17,919,126		17,823,959

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
License	$ 7,708	$ 11,211	$ 11,762
Services	26,083	24,644	17,295
Total revenues	33,791	35,855	29,057
Cost of revenues:
License	545	1,442	2,740
Services	15,593	12,880	9,076
Total cost of revenues	16,138	14,322	11,816
Gross profit	17,653	21,533	17,241
Operating expenses:
Research and development, net	4,797	4,914	3,377
Selling and marketing	10,894	12,967	9,498
General and administrative	$ 7,492	6,819	$ 4,637
Acquisition related costs		1,170
Amortization of intangible assets	$ 390	239
Total operating expenses	23,573	26,109	$ 17,512
Operating loss	(5,920)	(4,576)	(271)
Financial expenses , net	1,145	352	286
Other income, net	4	7	369
Loss before taxes on income	(7,061)	(4,921)	(188)
Taxes on income (expenses)	(1,215)	(552)	1
Net Loss	(8,276)	(5,473)	(187)
Attributes to : The Company's shareholders	(8,295)	(5,479)	$ (187)
Attributes to : Non-controlling interests	19	6
Net income (loss)	$ (8,276)	$ (5,473)	$ (187)
Net income loss per Ordinary share attributable to the Company's shareholders :
Basic	$ (0.46)	$ (0.34)	$ (0.02)
Diluted	$ (0.46)	$ (0.34)	$ (0.02)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net Loss	$ (8,276)	$ (5,473)	$ (187)
Foreign currency translation adjustments	(567)	(914)	(10)
Comprehensive Loss	(8,843)	(6,387)	(197)
Attributed to:
Company's Shareholders	(8,843)	(6,387)	$ (197)
Non-controlling interests	19	6
Comprehensive Loss	$ (8,824)	$ (6,381)	$ (197)

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Ordinary shares [Member]	Additional paid-in capital [Member]	Accumulated other comprehensive loss [Member]	Accumulated deficit [Member]	Total [Member]	Non controlling Interest [Member]	Total
Balance at Dec. 31, 2012		$ 129	$ 36,033	$ (1,530)	$ (19,806)	$ 14,826		$ 14,826
Balance, shares at Dec. 31, 2012		11,641,758
Exercise of warrants and stock options		$ 4	$ 725			729		729
Exercise of warrants and stock options, shares		446,291
Other comprehensive loss				$ (10)		(10)		(10)
Share-based compensation expenses			$ 356			356		356
Net loss					$ (187)	(187)		(187)
Balance at Dec. 31, 2013		$ 133	$ 37,114	$ (1,540)	$ (19,993)	15,714		$ 15,714
Balance, shares at Dec. 31, 2013		12,088,049						12,088,049
Exercise of warrants and stock options		$ 2	376			378		$ 378
Exercise of warrants and stock options, shares		220,100
Issuance of Ordinary shares, net	[1]	$ 36	13,660			13,696		13,696
Issuance of Ordinary shares, net, shares	[1]	3,162,500
Issuance of Ordinary shares in conjunction of business acquisition		$ 27	$ 9,739			9,766		9,766
Issuance of Ordinary shares in conjunction of business acquisition, shares		2,353,310
Other comprehensive loss				$ (914)		(914)		(914)
Share-based compensation expenses			$ 670			670		670
Net loss					$ (5,479)	(5,479)	$ 6	(5,473)
Balance at Dec. 31, 2014		$ 198	$ 61,559	$ (2,454)	$ (25,472)	33,831	$ 6	$ 33,837
Balance, shares at Dec. 31, 2014		17,823,959						17,823,959
Exercise of warrants and stock options		$ 1	$ 189			190		$ 190
Exercise of warrants and stock options, shares		95,167						39,422
Other comprehensive loss				$ (567)		(567)		$ (567)
Share-based compensation expenses			$ 808			808		808
Net loss					$ (8,295)	(8,295)	$ 19	(8,276)
Balance at Dec. 31, 2015		$ 199	$ 62,556	$ (3,021)	$ (33,767)	$ 25,967	$ 25	$ 25,992
Balance, shares at Dec. 31, 2015		17,919,126						17,919,126
[1]	Net of issuance expenses in the amount of $ 350.

STATEMENTS OF CHANGES IN SHARE7

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2014USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs associated with issuance of Ordinary shares	$ 350

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
Cash flows from operating activities:
Net Loss	$ (8,276)	$ (5,473)		$ (187)
Adjustments to reconcile net loss to net cash provided by in operating activities:
Share-based compensation expenses	808	670		356
Depreciation and amortization	1,876	1,041		198
Accrued severance pay, net	63	(38)		$ (50)
Decrease in long term assets	61	131
Decrease (increase) in deferred tax assets, net	820	56		$ (205)
Decrease (increase) in trade receivables, net	2,015	(4,427)		$ 1,457
Increase (decrease) long term liabilities	(40)	155
Decrease (increase) in other accounts receivable and prepaid expenses	(184)	201		$ (111)
Increase (decrease) in trade payables	41	855		(325)
Increase (decrease) in deferred revenues	655	134		770
Increase (decrease) in accrued expenses and other accounts payable	1,121	1,810		(1,440)
Net cash provided by (used in) operating activities	(1,040)	(4,885)		463
Cash flows from investing activities:
Decrease (increase) in restricted deposits	48	180		(92)
Decrease (increase) in long term deposits	(23)	(74)		(49)
Purchase of property and equipment	(905)	(171)		$ (76)
Business acquired	(216)	(7,806)
Net cash used in investing activities	(1,096)	(7,871)		$ (217)
Cash flows from financing activities:
Proceeds from exercise of Warrants and stock options	$ 190	378		$ 729
Proceeds from Issuance of Ordinary shares, net of issuance expenses		$ 13,696
Increase in short term bank borrowings	$ 77
Payment of accrued issuance expenses				$ (4)
Net cash provided by financing activities	$ 267	$ 14,074		725
Effect of exchange rate on cash and cash equivalent balances	(113)	(135)		9
Increase (decrease) in cash and cash equivalents	(1,982)	1,183		980
Cash and cash equivalents at the beginning of the year	4,386	3,203		2,223
Cash and cash equivalents at the end of the year	2,404	4,386		3,203
Cash paid during the year for:
Taxes	14	67		143
Interest	$ 107	35		$ 29
Supplemental disclosure of Non- cash flow information:
Account payables with respect to business acquisition		(216)	[1]
Payment in shares for business acquisition		$ (9,766)	[1]
[1]	See Note 1d

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1: GENERAL a. Business and organization: Top Image Systems Ltd. and its subsidiaries (collectively the "Company" or "TIS") are engaged in the development and marketing of a variety of information recognition systems and technologies and automated document capture solutions for the efficient flow of information within and between organizations. The Company's software minimizes the need for manual data entry by automatically capturing, reading, understanding, identifying, processing, classifying and routing the information contained in documents, increasing data capture accuracy and the rate of information processing. The Company operates in one reportable segment and its revenues are mainly derived from two sources: (i) license revenue and (ii) services revenue which include Software as a Services (“SaaS”), professional services, maintenance and technical support. As for information regarding the major customers of the Company see Note 11c. The Company's shares are traded on The NASDAQ Stock Market LLC in the United States. b. The Company's main marketing and sales activities are conducted through its wholly owned subsidiaries in the United States, the United Kingdom, Germany, Hong Kong, Japan and Singapore. On June 30, 2014 the Company, established a new subsidiary in Australia, Top Image Systems Pty Ltd. (or "TIS Australia"), together with one of its partners. c. In February 2014, the Company closed an underwritten public offering whereby 3,162,500 ordinary shares were sold by the Company to the public. The aggregate net proceeds received by the Company from the offering were approximately $13,696. The aggregate amount of Ordinary shares sold reflects the exercise in full by the underwriters of their option to purchase up to 412,500 additional Ordinary shares to cover over-allotments. d. On July 16, 2014 the Company signed an Agreement and Plan of Merger (the “Agreement”) to acquire all the outstanding shares of eGistics, Inc. ("eGistics"), a provider of private cloud-based document management solutions in the USA, for a total consideration of $ 17,788. The transaction was effected by paying of $8,022 in cash, net of working capital related adjustment, as disclosed in the Agreement, and through the issuing of a total 2,353,310 of the Company’s Ordinary shares based on the fair value of share on the closing date. The Company acquired eGistics in order to extend its business in the cloud-based document management. The acquisition was accounted for under the purchase method of accounting, in accordance with Accounting Standard Codification ("ASC") 805 "Business Combinations" ("ASC 805"), and accordingly, the purchase price has been allocated according to the estimated fair value of the assets acquired and liabilities assumed of the eGistics. The excess of the purchase price over the net tangible and identifiable intangible assets was assigned to goodwill. The operation results of eGistics have been included in the consolidated financial statements since the acquisition date of July 16, 2014. Net assets $ 2,515 Liabilities assumed (4,694 ) Customer relations 3,997 Technology 3,005 Goodwill 13,518 Deferred tax liability (553 ) Total purchase price $ 17,788 In performing the purchase price allocation, the Company considered, among other factors, the intention for future use of acquired assets, analysis of historical financial performance and estimates of future performance of the Company's products. The company's management has determent the fair value of the intangible assets with the assistance of independent valuation firm using the income approach. The following table sets forth the components of intangible assets associated with the acquisition Amount Amortization period (in years) Amortization method Customer relations $ 3,997 8.5 Acceleration Technology 3,005 3.2 Straight line $ 7,002 See Note 5c for expected amortization expenses. Goodwill of $ 13,518 represents the excess of the purchase price over the fair market value of the net tangible and intangible assets acquired. Goodwill will not be amortized and is tested for impairment at least annually. Acquisition costs in the amount of $1,170 consisted mainly of legal, tax and accounting fees and other external costs directly related to the acquisition and were included in operating expenses, as acquisition related costs.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"), applied on a consistent basis, as follows: a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. As applicable to these consolidated financial statements, the most significant estimated and assumptions are employed in estimates used in determining values of stock-based compensation costs, financial instruments with no observable market quotes, as well as in estimates used in applying the revenue recognition policy , . b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profit from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. c. Financial statements in United States dollars: A substantial portion of the Company's costs is incurred in U.S. dollars ("dollars"). Some of the revenues of the Company are generated in dollars. The majority of the Company's financing is in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and certain of its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the consolidated statement of comprehensive income (loss) as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income (loss) items are translated at average exchange rates prevailing during the year. Related translation adjustments are recorded as a separate component of accumulated other comprehensive loss in changes in shareholders' equity. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. e. Restricted cash: Restricted cash is primarily invested in short term and long term deposits. For more information, refer to Note 8c. f. Long – term deposits and long-term assets: Consist mainly of long-term prepaid expenses for motor vehicle and office leasing. g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates : Years Computers and peripheral equipment 3 Office furniture and equipment 5 - 16 (mainly 16 years) Leasehold improvements Over the shorter of the lease term or useful economic life h. Impairment of long-lived assets: The Company's long-lived assets are reviewed for impairment in accordance with ASC 360 "Property, Plant and Equipment, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the asset (asset group). If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The loss is allocated to the long-lived assets of the Company on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the Company will not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable. During the years 2013, 2014 and 2015, no impairment losses had been identified for intangible assets and property and equipment. i. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other," goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one operation-based segment and in one reporting unit. The Company performed a qualitative assessment during the fourth quarter of 2015 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. During the years 2013, 2014 and 2015, no impairment charge was recognized. j. Intangible assets: Intangible assets are comprised of acquired technology and customer relations. Definite-lived intangible assets are amortized over their estimated useful life. Acquired technology is amortized on a straight line basis over a period of 3.2 years. Customer relations are amortized using accelerated amortization method over a period of 8.5 years. k. Revenue recognition: The Company reports its revenue in two categories: (i) license, which includes mainly perpetual license; and (ii) services, which includes SaaS revenue, service revenue, including revenue from professional services, training services and post-contract customer support (“PCS”). The Company accounts for the sale of perpetual software in accordance with ASC 985-605, "Software Revenue Recognition ("ASC 985-605")". ASC 985-605 generally requires revenues earned from software arrangements involving multiple elements to be allocated to each element based on the relative fair values of the elements determined by the vendor's specific objective evidence ("VSOE") of fair value. VSOE is based on the price charged when an element is sold separately or renewed. Revenues are allocated under the "residual method" when VSOE of fair value exists for all undelivered elements and VSOE of fair value does not exist for all of the delivered elements, and when all ASC 985-605 criteria for revenue recognition are met. Revenue from license fees is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. PCS revenue are deferred and recognized on a straight-line basis over the term of the agreement. Arrangements that include professional services are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. For sales not included a perpetual software, the Company recognizes revenues in accordance to Accounting Standards Update ("ASU") No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements ("ASU 2009-13"). ASU 2009-13 requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors’ products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Deferred revenues represent unearned amounts received for PCS and professional services arrangements that are paid by customers and not yet recognized as revenues. The Company generally does not grant a right of return to its customers. l. Cost of Revenue Our total cost of revenue is comprised of the following: 1. Cost of License Revenue—Cost of license revenue is comprised primarily of third-party license and hardware costs. 2. Cost of Services Revenue—Cost of services revenue is primarily comprised of personnel costs of our technical implementation, support and training teams. Cost of services revenue also includes contractors and facilities costs. m. Research and development costs: Research and development costs are charged to the statement of income (loss) as incurred. ASC 985-20 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 model and the point at which the products are ready for general releases were insignificant. Therefore, all research and development costs have been expensed. n. Royalty and non-royalty bearing grants: Royalty-bearing grants from the Government of Israel for funding approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the costs incurred and included as a reduction in research and development costs. Grants are only recognized once there is reasonable assurance that the Company will comply with conditions attached to the grant and the grant will be received. Such grants are recorded as a reduction on related research and development costs since, when received, those are not probable to be repaid. o. Accounting for share-based compensation: At December 31, 2015, the Company has one share-based employee compensation plan, which is described extensively in Note 10. The Company accounts for share-based compensation in accordance with ASC 718, "Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of Comprehensive income (loss). The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company estimates the fair value of stock options granted using the Monte-Carlo simulation option-pricing model. The Monte-Carlo Simulation for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated using historical option exercise information. The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. The expected life of employee options is a derived output of this assumption from the Monte-Carlo Simulation. Expected volatility is based upon actual historical stock price movements over the most recent periods. Expected volatility is calculated as of the grant dates for different periods, since the Monte-Carlo Simulation is used for different expected volatilities for different periods. The Company has historically not paid dividends. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term and calculated for different periods that are in line with the expected volatility periods. The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions: Year ended December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 40%-77% 40%-80% 36%-69% Risk-free interest rate 0.13%-3.04% 0.12%-2.63% 0.26%-2.30% Contractual term of up to 10 years 10 years 10 years Suboptimal exercise multiple- employees 1.09 - 2.50 Suboptimal exercise multiple- management 2.36-2.39 2.62-2.66 2.50-2.60 The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" with respect to options and warrants issued to non-employees. Accordingly, the Company uses Geometric Brownian Motion Model valuation in a Monte Carlo Simulations measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50. p. Basic and diluted net earnings (loss) per share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, convertible preferred stock warrants stock, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. q. Income taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits in its taxes on income. r. Concentrations of credit risk: Financial instruments which potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, restricted cash and trade receivables. The Company's cash, cash equivalents and restricted deposits are invested primarily in deposits with major banks worldwide; however, such cash and cash equivalents in the US may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company's investments are institutions with high credit standing, and accordingly, low credit risk exists with respect to these investments. Trade receivables of the Company are derived from sales to customers located primarily in the U.S., Europe, Japan, and the Far East. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. s. Severance pay: The Company's liability for severance pay is calculated pursuant to Israel's 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. Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees in Israel is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes immaterial profits. The Company has also defined contribution plans to some of its employees pursuant to section 14 to the Severance Pay Law under which the Company pays fixed contributions and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. Severance expenses for the years ended December 31, 2013, 2014 and 2015 amounted to approximately $ 218, $ 370 and $ 295, respectively. t. Fair value of financial instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments. u. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, "Comprehensive Income". 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 items of comprehensive loss relate to foreign currency translation adjustments. v. Contingent liabilities The Company accounts for its contingent liabilities in accordance with ASC 450 definition. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015, the Company is not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. w. Allowance for doubtful accounts: The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivable portfolio. In establishing the required allowance, management bases its determination, among other factors, on information available about the debtors' financial situation, the volume of their operations and evaluation of the security received from them. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. x. Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. On July 9, 2015, the FASB approved a one-year deferral of the effective date of the ASU. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods therein, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not yet adopted ASU 2015-17 and does not expect the adoption of this guidance to have a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee ‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. y. Reclassification: Certain amounts in prior year's financial statements have been reclassified to conform to the current year's presentation.

OTHER ACCOUNTS RECEIVABLE AND P

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES	NOTE 3: OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2014 2015 Government authorities $ 79 $ 32 Prepaid expenses 604 707 Rent and motor leasing deposits 61 30 Others 43 163 $ 787 $ 932

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4: PROPERTY AND EQUIPMENT December 31, 2014 2015 Cost: Computers and peripheral equipment $ 6,576 $ 7,291 Office furniture and equipment 781 917 Leasehold improvements 87 109 7,444 8,317 Accumulated depreciation: Computers and peripheral equipment 5,565 6,055 Office furniture and equipment 627 740 Leasehold improvement 72 78 6,264 6,873 Depreciated cost $ 1,180 $ 1,444 Depreciation expenses amounted to $ 198, $ 277 and $ 641 for the years ended December 31, 2013, 2014 and 2015, respectively. As to charges, see Note

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
INTANGIBLE ASSETS [Abstract]
INTANGIBLE ASSETS	NOTE 5: INTANGIBLE ASSETS Intangible assets arose from the acquisition of the business from eGistics in July 2014 (see Note 1d). a. Identifiable intangible assets: December 31, 2014 2015 Original amount: Customer relations $ 3,997 $ 3,997 Technology 3,005 3,005 7,002 7,002 Accumulated amortization: Customer relations 239 535 Technology 470 1,409 709 1,944 $ 6,293 $ 5,058 b. Amortization expenses amounted to $ 709 and $ 1,235 for the years ended December 31, 2014 and 2015, respectively. c. Estimated amortization expenses of intangible assets for the year ended: December 31, Other intangible assets 2016 $ 1,435 2017 1,270 2018 649 2019 615 2020 466 2021 and thereafter 623 $ 5,058

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2015
GOODWILL [Abstract]
GOODWILL	NOTE 6: GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2015 are as follows: Balance as of January 1, 2014 $ 6,168 Acquired during the year (see Note 1d) 13,518 Foreign currency translation adjustments (309 ) Balance as of December 31, 2014 19,377 Foreign currency translation adjustments (286 ) Balance as of December 31, 2015 $ 19,091

ACCRUED EXPENSES AND OTHER ACCO

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE	NOTE 7: ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE December 31, 2014 2015 Employees and payroll accruals $ 357 $ 285 Government authorities 542 801 Accrued vacation pay 128 211 Accrued expenses 2,152 1,569 Factoring advance payments 180 615 Capital leases – current portion 252 440 Other 204 500 $ 3,815 $ 4,421

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 8: COMMITMENTS AND CONTINGENT LIABILITIES a. Commitments: 1. With respect to the participation of the Israeli Government in software research and development costs, the Company is committed to pay to the Government royalties at the rate of 3%-3.5% of revenues from sale of its iCMR The Company's total outstanding obligation in respect of royalty-bearing Government participation received or accrued, net of royalties paid or accrued, amounted to $408 as of December 31, 2015. 2. The Company has entered into non-cancelable operating lease agreements for the lease of motor vehicles, facilities rental and certain equipment. The leasing deposits are recorded as part of other account receivables. The Company's facilities are leased under non-cancelable operating lease agreements, which expire on various dates, the latest of which is in 2016. As of December 31, 2015, the Company is required to make the following minimum lease payments under operating leases for its motor vehicles, rental facilities and certain equipment: 2016 $ 1,602 2017 1,115 2018 572 2019 442 2020 258 2021 162 Total $ 4,151 Rental expenses for motor vehicles, facility rental and certain equipment expenses amounted to $ 1,323, $ 1,279 and $ 1,194 for the years ended December 31, 2013, 2014 and 2015, respectively. 3. Starting from October 2015, the Company had a line of credit with an Israeli bank ("the bank") for total borrowing of up to $ 500, based on several conditions and financial covenants. The line of credit bears interest rate of Libor + 4%. During the year ended December 31, 2015, from time to time the Company used this line of credit and recorded interest expenses in the amount of $ 3. Subsequent to year end, on March 6, 2016, the Company replaced the current line with a new line of credit with the same bank. According to the agreement, the Company is provided with the aggregate principal amount of account receivables ("AR") loan and AR credit line which will not exceed the lower of $3,000 and the sum of 70% of the aggregate value of eligible AR, as defined in the agreement. b. Charges: 1. To secure compliance with the conditions related to the Company's "Approved Enterprise" status, the Company registered a floating charge on equipment and other assets. The charge is unlimited in amount and it may not be further pledged or transferred without the prior consent of the beneficiaries. 2. To secure revolving credit facilities and guarantees from a bank, the Company recorded a floating charge on its plant, assets and rights and fixed charges on its unpaid share capital and its goodwill in favor of this bank (see also note 8a). c. Guarantees: 1. The Company has secured some of its lease agreements by a bank guarantee in the amount of $ 119. 2. The Company provided certain customers and vendors with a $ 290 bank guarantee. d. Legal proceedings: During 2015, two of the Company's customers in Europe filed lawsuits due to certain commercial disputes, with claims for payment of $92 and $79 respectively. The company denies all claims and is vigorously defending the suits, but is unable to predict the outcome at this stage.

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 9: TAXES ON INCOME a. Israeli income taxes: 1. Measurement of taxable income: The Company has elected to measure its taxable income and file its tax return under the Israeli Income Tax Regulations (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income), 1986. Accordingly, results for tax purposes are measured in terms of earnings in dollars. 2. The Law for the Encouragement of Capital Investments, 1959 ("the Investment Law"): In 1990, the production facilities of the Company were granted the status of an "Approved Enterprise" under the Investment Law. In 1991, 1999, 2000, expansion programs were granted the status of "Approved Enterprise" (established plan). According to the provisions of the Law, the Company has elected the alternative package of benefits - and has waived Government grants in return for tax benefits. According to the provisions of the Investment Law, the Company's income is tax-exempt for a period of two years commencing with the year it first earns taxable income, and subject to corporate taxes at the reduced rate of 10% to 25%, for an additional period of five to eight years depending upon the level of foreign ownership of the Company. On April 1, 2005, an amendment to the Investment Law came into effect ("the Amendment") and has significantly changed the provisions of the Investment Law. The Amendment limits the scope of enterprises which may be approved by the Investment Center by setting criteria for the approval of a facility as a "Benefited Enterprise", such as provisions generally requiring that at least 25% of the "Benefited Enterprise's" income will be derived from export. Additionally, the Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. However, the Amendment provides that terms and benefits included in any letter of approval already granted will remain subject to the provisions of the Investment Law as they were on the date of such approval. Therefore, investment programs that obtained approval for Approved Enterprise status prior to enactment of the Amendment will continue to be subject to the old provisions of the Investment Law. The period of tax benefits for a new Benefited Enterprise commences in the "Year of Commencement," which is the later of: (1) the year in which taxable income is first generated by the Company, or (2) the year of election. The entitlement to the above benefits is contingent upon the fulfillment of the conditions stipulated in the Amendment and regulations published there under. In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest and linked to changes in the Israeli CPI. As of December 31, 2015, the Company believes that it is meeting the aforementioned conditions. The Company elected 2009 as a year of election under the Amendment. The Amendment entitles the Company to a corporate tax exemption for a period of two years and to a reduced corporate tax rate of 10% - 25% (based on the percentage of foreign ownership) for an additional period up to eight years from the first year it has taxable income. If the Company pays a dividend out of income derived from the Approved and Benefited Enterprise during the tax exemption period, it will be subject to corporate tax in respect of the gross amount distributed, including any taxes thereon, at the rate which would have been applicable had it not enjoyed the alternative benefits, generally 10% - 25%, depending on the percentage of the Company's Ordinary shares held by foreign shareholders. As of December 31, 2015, the accumulated deficit of the Company does not include tax-exempt profits earned by the Company's "Approved Enterprise" and "Benefited Enterprise". Income from sources other than the Approved and Benefited Enterprises during the benefit period will be subject to tax at the regular corporate tax rate. In January 2011, the Israeli Parliament (the Knesset) passed the Law for Economic Policy for 2011 and 2012 (Amended Legislation), 2011, which prescribes, among others, for amendment of the Investment Law. The amendment became effective as of January 1, 2011. According to the amendment, the benefit tracks in the Investment Law were cancelled and a flat tax rate would apply to the Company's entire preferred income. The Company will be able to opt to apply the amendment (the waiver is non-recourse) and from then the uniform corporate tax rate will be 7 % in areas in Israel designated as development zone A and 12.5% elsewhere in Israel during 2013, 9% in development zone A and 16% elsewhere in Israel, respectively, in 2014 . A dividend distributed from income which is attributed to a Preferred Enterprise/Special Preferred Enterprise will be subject to withholding tax at source at the following rates: (i) Israeli resident corporation – 0%, (ii) Israeli resident individual – 15% in 2013 and 20% as of 2014 (iii) non-Israeli resident - 15% in 2013 and 20% as of 2014 subject to a reduced tax rate under the provisions of an applicable double tax treaty. The Company may choose not to apply the above amendment, in which case the Company will remain subject to the Investment Law as in effect prior to the 2011 amendment until the expiration of the Company's current investment programs. The Company is examining the possible effect of the amendment on the financial statements, if at all. 3. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: Under the Industry Encouragement Law, an “Industrial Company” is defined as a company resident in Israel, at least 90% of the income of which, in any tax year, exclusive of income from government loans, capital gains, interest and dividends, is derived from an “Industrial Enterprise” owned by it. An “Industrial Enterprise” is defined as an enterprise, located in Israel, owned by an Industrial Company, whose major activity in a given tax year is industrial production activity. The Company believes it meets all the criteria to be classified as an "industrial company", as defined by the Industry Encouragement Law and, as such, is entitled to certain tax benefits, mainly accelerated depreciation of machinery and equipment, as prescribed by regulations published under the Inflationary Adjustments Law, the right to claim public issuance expenses and amortization of patents and other intangible property rights as a deduction for tax purposes. 4. Corporate tax rates: Taxable income of Israeli companies is subject to tax at the rate of 26.5% in the years ended December 31, 2014 and 2015. The tax rate in 2013 was 25%. On January 4, 2016, the Knesset approved the second and third readings of the amendment to the Income Tax Ordinance (Num 217), lowering the Israeli corporate tax rate from 26.5% to 25%. 5. According to section 145 of the Israeli Tax Ordinance the Company's tax assessments till and include the year 2011 are considered as final assessments. b. Carryforward losses: As of December 31, 2015, Top Image Systems Ltd. has accumulated carryforward losses and capital losses in the amount of $ 11,314 and $ 1,892, respectively. The losses can be carryforward against relevant taxable income for an indefinite period. As of December 31, 2015, the Company fully depreciated its deferred tax assets for its carry forward net operating losses in Israel. As of December 31, 2015, the subsidiaries had operating losses carryforwards for tax purposes in the amount of $ 30,427. As of December 31, 2015, the U.S. subsidiaries had U.S. Federal and State net operating losses carryforwards of approximately $ 25,151, which can be carried forward and offset against taxable income for 7 to 20 years. Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state law provisions. As a result, the Company's management believes that annual limitations may result in the expiration of net operating losses before utilization. Operating losses carryforwards of its subsidiaries in Singapore, Japan and UK in the total amount of $ 2,511, $ 2,126 and $ 639, respectively, as of December 31, 2015, can be carried forward indefinitely since the Company does not expect to utilize them in the near future. c. Non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective domiciles of residence. The Company has not made any provisions relating to undistributed earnings of the Company's foreign subsidiaries since the Company has no current plans to distribute such earnings. If earnings are distributed to Israel in the form of dividends or otherwise, the Company may be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. d. Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2013 2014 2015 Domestic $ (829 ) $ (6,343 ) $ (5,453 ) Foreign 641 1,422 (1,608 ) $ (188 ) $ (4,921 ) $ (7,061 ) e. Taxes on income are comprised as follows: Year ended December 31, 2013 2014 2015 Current taxes $ (204 ) $ (496 ) $ (194 ) Deferred taxes 205 (56 ) (1,021 ) $ 1 $ (552 ) $ (1,215 ) Domestic $ 205 $ (166 ) $ (1,268 ) Foreign (204 ) (386 ) 53 $ 1 $ (552 ) $ (1,215 ) f. 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 the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, 2014 2015 Carryforward losses $ 10,627 $ 12,899 Research and development expenses 780 712 Accrued severance pay 17 52 Accrued vacation pay 30 33 Deferred tax assets before valuation allowance 11,454 13,696 Deferred tax liability: Intangible assets (2,391 ) (1,922 ) Deferred revenues (66 ) (46 ) Deferred tax liabilities before valuation allowance (2,457 ) (1,968 ) Net deferred tax assets before valuation allowance 8,997 11,728 Valuation allowance (8,177 ) (11,728 ) Net deferred tax assets $ 820 $ - Company's deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2015: December 31, 2014 2015 Domestic: Current deferred tax asset, net $ 746 $ - Non-current deferred tax asset, net 522 - 1,268 - Current deferred tax liability, net (130 ) - Non-current deferred tax liability, net (318 ) - (448 ) - $ 820 $ - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and net operating losses are utilized. During the year ended December 31, 2015, the Company recorded a full valuation allowance on its deferred tax assets, since it assessed that the deferred tax assets will not be realized during that period. Based on a consideration of these factors, the Company has established a valuation allowance of $ 8,177 and $ 11,728 at December 31, 2014 and 2015, respectively. The Company does not have a provision for Israeli income taxes on the undistributed earnings of its international subsidiaries since the Company intends to indefinitely reinvest these earnings outside Israel. g. Reconciliation of the theoretical tax expenses: The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowances in respect of deferred taxes relating to accumulated net operating losses carried forward among the various subsidiaries worldwide due to the uncertainty of the realization of such deferred taxes, the effect of the "Approved Enterprise" and undetectable expenses related to option expenses and other equity benefits. h. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2014 and December 31, 2015 are as follows: Gross unrecognized tax benefits as of January 1, 2014 $ 204 Interest accrued 9 Gross unrecognized tax benefits as of December 31, 2014 213 Deduction of unrecognized tax benefits (213 ) Gross unrecognized tax benefits as of December 31, 2015 $ - There was $ 0 of unrecognized income tax benefits that, if recognized, would impact the effective tax rate in the period in which each of the benefits is recognized

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 10: SHAREHOLDERS' EQUITY a. Dividends: Dividends may be paid by the Company only out of the Israeli company's earnings and other surpluses in Israeli currency as defined in the Companies Law as of the end of the most recent fiscal year or as accrued over a period of the last two years whichever is higher. Such dividends will be declared and paid in New Israeli Shekels. No dividends were declared in the periods presented. b. Employee Stock Option Plan (2003): The Employee Stock Option Plan (2003) ("the ESOP 2003") is designed to benefit from, and is made pursuant to, the provisions of Section 102 of the Israeli Income Tax Ordinance. In May 2004, December 2006 and October 2013, the Board of Directors and the shareholders of the Company approved the additional pool of options to purchase additional 650,000, 700,000 and 1,100,000 Ordinary shares, respectively, pursuant to the ESOP 2003. As of December 31, 2015, 1,855,809 options are outstanding. As of December 31, 2015, an aggregate amount of 171,128 options is still available for future grant under of the above mentioned plan. c. Options to employees, management and directors: 1. On July 13, 2014, the board of directors approved the grant of options to purchase 100,000 Ordinary shares to a member of the management, at an exercise price of $ 3.95 with a vesting term of three years. 2. On September 18, 2014, the board of directors approved the grant of options to purchase 52,500 Ordinary shares to several employees, at an exercise price of $ 4.15 with a vesting term of three years. 3. On January 1, 2015, the shareholders of the Company approved the grant of options to purchase 10,000 Ordinary shares to a member of the board, at an exercise price of $ 3.42 with vesting term of two years. 4. On June 1, 2015, the board of directors approved the grant of options to purchase 516,549 Ordinary shares to several officers and employees, at an exercise price of $ 3.42. One third will be exercisable in one year, one third will be exercisable in two years, and one third will be exercisable in three years. 5. On August 10, 2015, the board of directors approved the grant of options to purchase 35,000 Ordinary shares to an officers and several employees, at an exercise price of $ 3.45. One third will be exercisable in one year, one third will be exercisable in two years, and one third will be exercisable in three years. 6. On December 28, 2015, the shareholders of the Company approved the grant of options to purchase 200,000 Ordinary shares to members of the board, at an exercise price of $ 3.30. One half was exercisable on December 31, 2015, and one half will be exercisable on December 31, 2016. 7. On December 28, 2015, the shareholders of the Company approved the grant of options to purchase 50,000 Ordinary shares to an officer, at an exercise price of $ 3.30. One half will be exercisable on May 21, 2015, and one half will be exercisable on May 21, 2016. 8. On December 28, 2015, the shareholders of the Company approved the grant of options to purchase 25,000 Ordinary shares to an officer, at an exercise price of $ 3.40. One third will be exercisable on December 31, 2015, one third will be exercisable on December 31, 2016, and one third will be exercisable on December 31, 2017. The following is a summary of the Company's stock options granted among the various plans: Year ended Number of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at the beginning of the year 1,294,810 $ 3.60 7.57 Granted 836,549 3.38 - Exercised (39,422 ) 2.01 - Forfeited (236,128 ) 4.07 - Outstanding at the end of the year 1,855,809 $ 3.48 7.72 $ 555 Exercisable at the end of the year 1,103,932 $ 3.27 6.86 $ 555 Vested and expected to vest at end of year 1,815,258 $ 3.46 7.72 $ 544 The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the exercise period. Total intrinsic value of options exercised for the year ended December 31, 2015 was $ 555. As of December 31, 2015 there was $ 1,456 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2003 Stock Plan. This cost is expected to be recognized over a period of approximately 2.75 years. The weighted average grant date fair values of options granted during 2014 and 2015 were $ 1.85 and $ 1.67, respectively. The options outstanding as of December 31, 2015, have been separated into ranges of exercise price as follows: Options Weighted Options Weighted average Outstanding average Weighted exercisable exercise Range of as of remaining average as of price of exercise December 31, contractual exercise December 31, options price 2015 life (years) price 2015 exercisable $ 1.30 74,322 3.23 1.30 74,322 1.30 $ 2.11 - $ 2.25 502,671 5.99 2.18 502,671 2.18 $ 3.30 - $ 6.04 1,278,816 8.66 4.09 526,939 4.58 1,855,809 7.72 3.48 1,103,932 3.27 c. Warrants: As part of a private placement transaction in 2011, the Company granted its Investors and its agents, for no additional consideration, warrants to purchase 441,750 of the Company's Ordinary shares of NIS 0.04 par value each. The warrants are exercisable on or after six months from June 13, 2011 for a period of five years thereafter, at an exercise price of $2.20 per share. As of December 31, 2015 297,150 warrants have been exercised, and 144,600 warrants are outstanding for future exercise. e. In February 2014, the Company issued 3,162,500 Ordinary shares in conjunction to its public offering (for more details see Note 1c) f. On July 16, 2014 the company issued 2,353,310 Ordinary shares in conjunction of the acquisition of eGistics (for more details see Note 1d). g. During the years ended December 31, 2013, 2014 and 2015, the Company recognized share-based compensation expense related to employee options in the amount of $ 356, $670 and $ 808, respectively, as follows: Year ended December 31, 2013 2014 2015 Cost of revenues $ 64 $ 162 $ 150 Research and development, net 23 71 90 Selling and marketing 57 183 198 General and administrative 212 254 370 Total share-based compensation expense $ 356 $ 670 $ 808

GEOGRAPHICAL INFORMATION AND MA

GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA	NOTE 11: GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA a. Business segment, geographical areas and foreign operations: The Company applies ASC 280, "Segment Reporting". The Company manages its business on the basis of one reportable segment (see Note 1 for a brief description of the Company's business). Total revenues are attributed to geographic areas based on the location of the customers. b. Geographical information : 1. Revenues: Year ended December 31, 2013 2014 2015 License Revenues Far East $ 2,322 $ 2,745 $ 1,433 Germany 2,616 2,893 2,421 Rest of Europe 1,761 3,035 2,127 North and South America 4,254 2,091 1,343 Africa and Middle East 809 447 384 11,762 11,211 7,708 Service Revenues Far East 3,259 3,536 3,837 Germany 7,820 6,186 4,881 Rest of Europe 4,370 7,121 4,658 North and South America 1,284 7,435 12,270 Africa and Middle East 562 366 437 17,295 24,644 26,083 Total revenues $ 29,057 $ 35,855 $ 33,791 2. The following is a summary of long-lived assets within geographic areas based on the assets' locations: Year ended December 31, 2014 2015 Israel $ 127 $ 113 USA 974 1,239 Other 79 92 Total Long-lived assets: $ 1,180 $ 1,444 c. Major customers’ data: In 2014 and 2015 the Company had no customer who accounted for more than 10% of the total revenues. During 2013 one customer accounted for 10.2% of the total revenues.

BASIC AND DILUTED NET EARNINGS

BASIC AND DILUTED NET EARNINGS (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2015
Net income loss per Ordinary share attributable to the Company's shareholders :
BASIC AND DILUTED NET EARNINGS (LOSS) PER SHARE	NOTE 12: BASIC AND DILUTED NET EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net earnings (loss) per share: Year ended December 31, 2013 2014 2015 Net loss used for the computation of diluted net loss per share $ (187 ) $ (5,479 ) $ (8,295 ) Weighted average Ordinary shares outstanding 11,718,960 16,071,608 17,870,588 Effect of dilutive securities: Employees stock options *) - *) - *) - Warrants *) - *) - *) - - - - Diluted weighted average Ordinary shares outstanding 11,718,960 16,071,608 17,870,588 Basic loss per Ordinary share $ (0.02 ) $ (0.34 ) $ (0.46 ) Diluted loss per Ordinary share $ (0.02 ) $ (0.34 ) $ (0.46 ) *) Anti-dilutive.

FINANCIAL EXPENSE

FINANCIAL EXPENSE	12 Months Ended
	Dec. 31, 2015
FINANCIAL EXPENSE [Abstract]
FINANCIAL EXPENSE	NOTE 13: FINANCIAL EXPENSE Year ended December 31, 2013 2014 2015 Interest expenses $ 29 $ 35 $ 107 Fair value adjustments for deferred revenues - 55 109 Exchange rate loss 86 169 828 Bank charges 171 93 101 $ 286 $ 352 $ 1,145

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	NOTE 14: RELATED PARTY TRANSACTION According to the Company's agreement with the chairman of the board, in consideration for his services to the Company worldwide, the chairman of the board will be entitled to compensation in the amount of US $ 28.1 plus VAT per month ("the consulting fees"). In addition, as approved annually by the Company's general meeting of the shareholders, the chairman is entitled to a bonus of 4.25% of the Company's adjusted EBITDA, under certain conditions with regard to revenue and EBITDA, as defined in the minutes of the Company's board of Directors. During 2014 the chairman of the board was entitled to a bonus at the rate of 0.25% of the total amount raised by the Company on the underwritten public offering (see Note 10f). During 2013, 2014, 2015 the chairman of the board has been entitled to compensation, including the bonus, on the amount of $ 324, $ 369 and $ 323, respectively for his consulting fees.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENT	NOTE 15: SUBSEQUENT EVENT (UNAUDITED) On March 8, 2016, the Company announced that it initiated global restructuring actions, in order to decrease its cost levels in the comings years. The company plans to terminate the contracts of 33 employees and contractors, with estimated cost saving of $ 2,187. In addition, the company plans to cut costs by merging geographical regions and decreasing various other expenses. Total saving in 2016 is estimated to $ 4,328. The restructuring cost in 2016 will result in $1,174 that will be incurred in the first quarter of 2016.

SIGNIFICANT ACCOUNTING POLICI24

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Use of estimates	a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. As applicable to these consolidated financial statements, the most significant estimated and assumptions are employed in estimates used in determining values of stock-based compensation costs, financial instruments with no observable market quotes, as well as in estimates used in applying the revenue recognition policy , .
Principles of consolidation	b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profit from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.
Financial statements in United States dollars	c. Financial statements in United States dollars: A substantial portion of the Company's costs is incurred in U.S. dollars ("dollars"). Some of the revenues of the Company are generated in dollars. The majority of the Company's financing is in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and certain of its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the consolidated statement of comprehensive income (loss) as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income (loss) items are translated at average exchange rates prevailing during the year. Related translation adjustments are recorded as a separate component of accumulated other comprehensive loss in changes in shareholders' equity.
Cash equivalents	d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.
Restricted cash	e. Restricted cash: Restricted cash is primarily invested in short term and long term deposits. For more information, refer to Note 8c.
Long - term deposits and long-term assets	f. Long – term deposits and long-term assets: Consist mainly of long-term prepaid expenses for motor vehicle and office leasing.
Property and equipment, net	g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates : Years Computers and peripheral equipment 3 Office furniture and equipment 5 - 16 (mainly 16 years) Leasehold improvements Over the shorter of the lease term or useful economic life
Impairment of long-lived assets	h. Impairment of long-lived assets: The Company's long-lived assets are reviewed for impairment in accordance with ASC 360 "Property, Plant and Equipment, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the asset (asset group). If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The loss is allocated to the long-lived assets of the Company on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the Company will not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable. During the years 2013, 2014 and 2015, no impairment losses had been identified for intangible assets and property and equipment.
Goodwill	i. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other," goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one operation-based segment and in one reporting unit. The Company performed a qualitative assessment during the fourth quarter of 2015 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. During the years 2013, 2014 and 2015, no impairment charge was recognized.
Intangible assets	j. Intangible assets: Intangible assets are comprised of acquired technology and customer relations. Definite-lived intangible assets are amortized over their estimated useful life. Acquired technology is amortized on a straight line basis over a period of 3.2 years. Customer relations are amortized using accelerated amortization method over a period of 8.5 years.
Revenue recognition	k. Revenue recognition: The Company reports its revenue in two categories: (i) license, which includes mainly perpetual license; and (ii) services, which includes SaaS revenue, service revenue, including revenue from professional services, training services and post-contract customer support (“PCS”). The Company accounts for the sale of perpetual software in accordance with ASC 985-605, "Software Revenue Recognition ("ASC 985-605")". ASC 985-605 generally requires revenues earned from software arrangements involving multiple elements to be allocated to each element based on the relative fair values of the elements determined by the vendor's specific objective evidence ("VSOE") of fair value. VSOE is based on the price charged when an element is sold separately or renewed. Revenues are allocated under the "residual method" when VSOE of fair value exists for all undelivered elements and VSOE of fair value does not exist for all of the delivered elements, and when all ASC 985-605 criteria for revenue recognition are met. Revenue from license fees is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. PCS revenue are deferred and recognized on a straight-line basis over the term of the agreement. Arrangements that include professional services are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. For sales not included a perpetual software, the Company recognizes revenues in accordance to Accounting Standards Update ("ASU") No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements ("ASU 2009-13"). ASU 2009-13 requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors’ products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Deferred revenues represent unearned amounts received for PCS and professional services arrangements that are paid by customers and not yet recognized as revenues. The Company generally does not grant a right of return to its customers.
Cost of Revenue	l. Cost of Revenue Our total cost of revenue is comprised of the following: 1. Cost of License Revenue—Cost of license revenue is comprised primarily of third-party license and hardware costs. 2. Cost of Services Revenue—Cost of services revenue is primarily comprised of personnel costs of our technical implementation, support and training teams. Cost of services revenue also includes contractors and facilities costs.
Research and development costs	m. Research and development costs: Research and development costs are charged to the statement of income (loss) as incurred. ASC 985-20 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 model and the point at which the products are ready for general releases were insignificant. Therefore, all research and development costs have been expensed.
Royalty and non-royalty bearing grants	n. Royalty and non-royalty bearing grants: Royalty-bearing grants from the Government of Israel for funding approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the costs incurred and included as a reduction in research and development costs. Grants are only recognized once there is reasonable assurance that the Company will comply with conditions attached to the grant and the grant will be received. Such grants are recorded as a reduction on related research and development costs since, when received, those are not probable to be repaid.
Accounting for share-based compensation	o. Accounting for share-based compensation: At December 31, 2015, the Company has one share-based employee compensation plan, which is described extensively in Note 10. The Company accounts for share-based compensation in accordance with ASC 718, "Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of Comprehensive income (loss). The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company estimates the fair value of stock options granted using the Monte-Carlo simulation option-pricing model. The Monte-Carlo Simulation for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated using historical option exercise information. The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. The expected life of employee options is a derived output of this assumption from the Monte-Carlo Simulation. Expected volatility is based upon actual historical stock price movements over the most recent periods. Expected volatility is calculated as of the grant dates for different periods, since the Monte-Carlo Simulation is used for different expected volatilities for different periods. The Company has historically not paid dividends. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term and calculated for different periods that are in line with the expected volatility periods. The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions: Year ended December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 40%-77% 40%-80% 36%-69% Risk-free interest rate 0.13%-3.04% 0.12%-2.63% 0.26%-2.30% Contractual term of up to 10 years 10 years 10 years Suboptimal exercise multiple- employees 1.09 - 2.50 Suboptimal exercise multiple- management 2.36-2.39 2.62-2.66 2.50-2.60 The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" with respect to options and warrants issued to non-employees. Accordingly, the Company uses Geometric Brownian Motion Model valuation in a Monte Carlo Simulations measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50.
Basic and diluted net earnings (loss) per share	p. Basic and diluted net earnings (loss) per share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, convertible preferred stock warrants stock, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
Income taxes	q. Income taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits in its taxes on income.
Concentrations of credit risk	r. Concentrations of credit risk: Financial instruments which potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, restricted cash and trade receivables. The Company's cash, cash equivalents and restricted deposits are invested primarily in deposits with major banks worldwide; however, such cash and cash equivalents in the US may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company's investments are institutions with high credit standing, and accordingly, low credit risk exists with respect to these investments. Trade receivables of the Company are derived from sales to customers located primarily in the U.S., Europe, Japan, and the Far East. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection.
Severance pay	s. Severance pay: The Company's liability for severance pay is calculated pursuant to Israel's 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. Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees in Israel is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes immaterial profits. The Company has also defined contribution plans to some of its employees pursuant to section 14 to the Severance Pay Law under which the Company pays fixed contributions and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. Severance expenses for the years ended December 31, 2013, 2014 and 2015 amounted to approximately $ 218, $ 370 and $ 295, respectively.
Fair value of financial instruments	t. Fair value of financial instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments.
Comprehensive loss	u. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, "Comprehensive Income". 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 items of comprehensive loss relate to foreign currency translation adjustments.
Contingent liabilities	v. Contingent liabilities The Company accounts for its contingent liabilities in accordance with ASC 450 definition. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015, the Company is not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.
Allowance for doubtful accounts	w. Allowance for doubtful accounts: The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivable portfolio. In establishing the required allowance, management bases its determination, among other factors, on information available about the debtors' financial situation, the volume of their operations and evaluation of the security received from them. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
Recently Issued Accounting Pronouncements	x. Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. On July 9, 2015, the FASB approved a one-year deferral of the effective date of the ASU. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods therein, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not yet adopted ASU 2015-17 and does not expect the adoption of this guidance to have a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee ‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement.
Reclassification	y. Reclassification: Certain amounts in prior year's financial statements have been reclassified to conform to the current year's presentation.

GENERAL (Tables)

GENERAL (Tables)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of allocation of net purchase price of the acquisition	The acquisition was accounted for under the purchase method of accounting, in accordance with Accounting Standard Codification ("ASC") 805 "Business Combinations" ("ASC 805"), and accordingly, the purchase price has been allocated according to the estimated fair value of the assets acquired and liabilities assumed of the eGistics. The excess of the purchase price over the net tangible and identifiable intangible assets was assigned to goodwill. The operation results of eGistics have been included in the consolidated financial statements since the acquisition date of July 16, 2014. Net assets $ 2,515 Liabilities assumed (4,694 ) Customer relations 3,997 Technology 3,005 Goodwill 13,518 Deferred tax liability (553 ) Total purchase price $ 17,788
Schedule of components of intangible assets associated with the acquisition	The following table sets forth the components of intangible assets associated with the acquisition Amount Amortization period (in years) Amortization method Customer relations $ 3,997 8.5 Acceleration Technology 3,005 3.2 Straight line $ 7,002

SIGNIFICANT ACCOUNTING POLICI26

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Property and Equipment, Net, Useful Lives	Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates : Years Computers and peripheral equipment 3 Office furniture and equipment 5 - 16 (mainly 16 years) Leasehold improvements Over the shorter of the lease term or useful economic life
Schedule of Assumptions Used to Value Stock Options	The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions: Year ended December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 40%-77% 40%-80% 36%-69% Risk-free interest rate 0.13%-3.04% 0.12%-2.63% 0.26%-2.30% Contractual term of up to 10 years 10 years 10 years Suboptimal exercise multiple- employees 1.09 - 2.50 Suboptimal exercise multiple- management 2.36-2.39 2.62-2.66 2.50-2.60

OTHER ACCOUNTS RECEIVABLE AND27

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Accounts Receivable and Prepaid Expenses	December 31, 2014 2015 Government authorities $ 79 $ 32 Prepaid expenses 604 707 Rent and motor leasing deposits 61 30 Others 43 163 $ 787 $ 932

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	December 31, 2014 2015 Cost: Computers and peripheral equipment $ 6,576 $ 7,291 Office furniture and equipment 781 917 Leasehold improvements 87 109 7,444 8,317 Accumulated depreciation: Computers and peripheral equipment 5,565 6,055 Office furniture and equipment 627 740 Leasehold improvement 72 78 6,264 6,873 Depreciated cost $ 1,180 $ 1,444

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
INTANGIBLE ASSETS [Abstract]
Schedule of identifiable intangible assets	Identifiable intangible assets: December 31, 2014 2015 Original amount: Customer relations $ 3,997 $ 3,997 Technology 3,005 3,005 7,002 7,002 Accumulated amortization: Customer relations 239 535 Technology 470 1,409 709 1,944 $ 6,293 $ 5,058
Schedule of estimated amortization expenses of intangible assets	Estimated amortization expenses of intangible assets for the year ended: December 31, Other intangible assets 2016 $ 1,435 2017 1,270 2018 649 2019 615 2020 466 2021 and thereafter 623 $ 5,058

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2015
GOODWILL [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the year ended December 31, 2015 are as follows: Balance as of January 1, 2014 $ 6,168 Acquired during the year (see Note 1d) 13,518 Foreign currency translation adjustments (309 ) Balance as of December 31, 2014 19,377 Foreign currency translation adjustments (286 ) Balance as of December 31, 2015 $ 19,091

ACCRUED EXPENSES AND OTHER AC31

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Accounts Payable	December 31, 2014 2015 Employees and payroll accruals $ 357 $ 285 Government authorities 542 801 Accrued vacation pay 128 211 Accrued expenses 2,152 1,569 Factoring advance payments 180 615 Capital leases – current portion 252 440 Other 204 500 $ 3,815 $ 4,421

COMMITMENTS AND CONTINGENT LI32

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments	As of December 31, 2015, the Company is required to make the following minimum lease payments under operating leases for its motor vehicles, rental facilities and certain equipment: 2016 $ 1,602 2017 1,115 2018 572 2019 442 2020 258 2021 162 Total $ 4,151

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Income (Loss) before Taxes on Income	Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2013 2014 2015 Domestic $ (829 ) $ (6,343 ) $ (5,453 ) Foreign 641 1,422 (1,608 ) $ (188 ) $ (4,921 ) $ (7,061
Schedule of Taxes on Income	Taxes on income are comprised as follows: Year ended December 31, 2013 2014 2015 Current taxes $ (204 ) $ (496 ) $ (194 ) Deferred taxes 205 (56 ) (1,021 ) $ 1 $ (552 ) $ (1,215 ) Domestic $ 205 $ (166 ) $ (1,268 ) Foreign (204 ) (386 ) 53 $ 1 $ (552 ) $ (1,215 )
Schedule of Deferred Tax Assets	Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, 2014 2015 Carryforward losses $ 10,627 $ 12,899 Research and development expenses 780 712 Accrued severance pay 17 52 Accrued vacation pay 30 33 Deferred tax assets before valuation allowance 11,454 13,696 Deferred tax liability: Intangible assets (2,391 ) (1,922 ) Deferred revenues (66 ) (46 ) Deferred tax liabilities before valuation allowance (2,457 ) (1,968 ) Net deferred tax assets before valuation allowance 8,997 11,728 Valuation allowance (8,177 ) (11,728 ) Net deferred tax assets $ 820 $ - Company's deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2015: December 31, 2014 2015 Domestic: Current deferred tax asset, net $ 746 $ - Non-current deferred tax asset, net 522 - 1,268 - Current deferred tax liability, net (130 ) - Non-current deferred tax liability, net (318 ) - (448 ) - $ 820 $ -
Reconciliation of Unrecognized Tax Benefits	A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2014 and December 31, 2015 are as follows: Gross unrecognized tax benefits as of January 1, 2014 $ 204 Interest accrued 9 Gross unrecognized tax benefits as of December 31, 2014 213 Deduction of unrecognized tax benefits (213 ) Gross unrecognized tax benefits as of December 31, 2015 $ -

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of Stock Options Activity	The following is a summary of the Company's stock options granted among the various plans: Year ended Number of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at the beginning of the year 1,294,810 $ 3.60 7.57 Granted 836,549 3.38 - Exercised (39,422 ) 2.01 - Forfeited (236,128 ) 4.07 - Outstanding at the end of the year 1,855,809 $ 3.48 7.72 $ 555 Exercisable at the end of the year 1,103,932 $ 3.27 6.86 $ 555 Vested and expected to vest at end of year 1,815,258 $ 3.46 7.72 $ 544
Schedule of Stock Options, by Exercise Price Range	The options outstanding as of December 31, 2015, have been separated into ranges of exercise price as follows: Options Weighted Options Weighted average Outstanding average Weighted exercisable exercise Range of as of remaining average as of price of exercise December 31, contractual exercise December 31, options price 2015 life (years) price 2015 exercisable $ 1.30 74,322 3.23 1.30 74,322 1.30 $ 2.11 - $ 2.25 502,671 5.99 2.18 502,671 2.18 $ 3.30 - $ 6.04 1,278,816 8.66 4.09 526,939 4.58 1,855,809 7.72 3.48 1,103,932 3.27
Schedule of Share-based Compensation Expenses	During the years ended December 31, 2013, 2014 and 2015, the Company recognized share-based compensation expense related to employee options in the amount of $ 356, $670 and $ 808, respectively, as follows: Year ended December 31, 2013 2014 2015 Cost of revenues $ 64 $ 162 $ 150 Research and development, net 23 71 90 Selling and marketing 57 183 198 General and administrative 212 254 370 Total share-based compensation expense $ 356 $ 670 $ 808

GEOGRAPHICAL INFORMATION AND 35

GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Area and Major Customer	Revenues: Year ended December 31, 2013 2014 2015 License Revenues Far East $ 2,322 $ 2,745 $ 1,433 Germany 2,616 2,893 2,421 Rest of Europe 1,761 3,035 2,127 North and South America 4,254 2,091 1,343 Africa and Middle East 809 447 384 11,762 11,211 7,708 Service Revenues Far East 3,259 3,536 3,837 Germany 7,820 6,186 4,881 Rest of Europe 4,370 7,121 4,658 North and South America 1,284 7,435 12,270 Africa and Middle East 562 366 437 17,295 24,644 26,083 Total revenues $ 29,057 $ 35,855 $ 33,791
Schedule of Long-Lived Assets within Geographic Areas	The following is a summary of long-lived assets within geographic areas based on the assets' locations: Year ended December 31, 2014 2015 Israel $ 127 $ 113 USA 974 1,239 Other 79 92 Total Long-lived assets: $ 1,180 $ 1,444

BASIC AND DILUTED NET EARNING36

BASIC AND DILUTED NET EARNINGS (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Net income loss per Ordinary share attributable to the Company's shareholders :
Schedule of Calculated Earnings per Share	The following table sets forth the computation of basic and diluted net earnings (loss) per share: Year ended December 31, 2013 2014 2015 Net loss used for the computation of diluted net loss per share $ (187 ) $ (5,479 ) $ (8,295 ) Weighted average Ordinary shares outstanding 11,718,960 16,071,608 17,870,588 Effect of dilutive securities: Employees stock options *) - *) - *) - Warrants *) - *) - *) - - - - Diluted weighted average Ordinary shares outstanding 11,718,960 16,071,608 17,870,588 Basic loss per Ordinary share $ (0.02 ) $ (0.34 ) $ (0.46 ) Diluted loss per Ordinary share $ (0.02 ) $ (0.34 ) $ (0.46 ) *) Anti-dilutive.

FINANCIAL EXPENSE (Tables)

FINANCIAL EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2015
FINANCIAL EXPENSE [Abstract]
Schedule of Financial Expense	Year ended December 31, 2013 2014 2015 Interest expenses $ 29 $ 35 $ 107 Fair value adjustments for deferred revenues - 55 109 Exchange rate loss 86 169 828 Bank charges 171 93 101 $ 286 $ 352 $ 1,145

GENERAL (Details)

GENERAL (Details) - USD ($) $ in Thousands	Jul. 16, 2014	Feb. 28, 2014	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
Business Acquisition [Line Items]
Issuance of Ordinary shares and Warrants, net (Note 10b), shares		3,162,500
Issuance of ordinary shares, net		$ 13,696		$ 13,696	[1]
Cash payment			$ 216	7,806
Allocation of net purchase price of the acquisition
Goodwill			$ 19,091	19,377		$ 6,168
Acquisition related costs				$ 1,170
Over-Allotment Option [Member]
Business Acquisition [Line Items]
Issuance of Ordinary shares and Warrants, net (Note 10b), shares		412,500
eGistics [Member]
Business Acquisition [Line Items]
Total consideration	$ 17,788
Cash payment	$ 8,022
Number of ordinary shares	2,353,310
Allocation of net purchase price of the acquisition
Net assets	$ 2,515
Liabilities assumed	(4,694)
Intangible assets	7,002
Goodwill	13,518
Deferred tax liability	(553)
Total assets and liabilities acquired	17,788
eGistics [Member] | Technology-Based Intangible Assets [Member]
Allocation of net purchase price of the acquisition
Intangible assets	3,005
Amortization period (in years)				3 years 2 months 12 days
eGistics [Member] | Customer Relationships [Member]
Allocation of net purchase price of the acquisition
Intangible assets	$ 3,997
Amortization period (in years)				8 years 6 months
[1]	Net of issuance expenses in the amount of $ 350.

SIGNIFICANT ACCOUNTING POLICI39

SIGNIFICANT ACCOUNTING POLICIES (Other) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Severance pay:
Severance expenses	$ 295	$ 370	$ 218
Revenue recognition:
Number of categories into which Company reports its revenue | item	2
Goodwill and Intangible assets:
Impairment charge

SIGNIFICANT ACCOUNTING POLICI40

SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment, Net) (Details)	12 Months Ended
	Dec. 31, 2015
Computers and Peripheral Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Office Furniture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	5 years
Office Furniture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	16 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful lives	Over the shorter of the lease term or useful economic life

SIGNIFICANT ACCOUNTING POLICI41

SIGNIFICANT ACCOUNTING POLICIES (Intangible Assets) (Details)	12 Months Ended
	Dec. 31, 2015
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	8 years 6 months
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	3 years 2 months 12 days

SIGNIFICANT ACCOUNTING POLICI42

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Assumptions Used to Value Stock Options) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions:
Dividend yield	0.00%	0.00%	0.00%
Expected volatility, minimum	36.00%	40.00%	40.00%
Expected volatility, maximum	69.00%	80.00%	77.00%
Risk-free interest rate, minimum	0.26%	0.12%	0.13%
Risk-free interest rate, maximum	2.30%	2.63%	3.04%
Contractual term of up to	10 years	10 years	10 years
Employees [Member]
The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions:
Suboptimal exercise multiple	2.50		1.09
Options Granted To Management [Member] | Minimum [Member]
The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions:
Suboptimal exercise multiple	2.50	2.62	2.36
Options Granted To Management [Member] | Maximum [Member]
The fair value of the Company's stock options granted to employees and directors was estimated using the following assumptions:
Suboptimal exercise multiple	2.60	2.66	2.39

OTHER ACCOUNTS RECEIVABLE AND43

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Government authorities	$ 32	$ 79
Prepaid expenses	707	604
Rent and motor leasing deposits	30	61
Others	163	43
Total other accounts receivable and prepaid expenses	$ 932	$ 787

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Cost	$ 8,317	$ 7,444
Accumulated depreciation	6,873	6,264
Depreciated cost	1,444	1,180
Depreciation expenses	641	277	$ 198
Computers and Peripheral Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	7,291	6,576
Accumulated depreciation	6,055	5,565
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	917	781
Accumulated depreciation	740	627
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	109	87
Accumulated depreciation	$ 78	$ 72

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Identifiable intangible assets
Original amount	$ 7,002	$ 7,002
Accumulated amortization	1,944	709
Net amount	5,058	6,293
Amortization expenses	1,235	709
Estimated amortization expenses of intangible assets
2,016	1,435
2,017	1,270
2,018	649
2,019	615
2,020	466
2021 and thereafter	623
Net amount	5,058	6,293
Customer Relationships [Member]
Identifiable intangible assets
Original amount	3,997	3,997
Accumulated amortization	535	239
Technology-Based Intangible Assets [Member]
Identifiable intangible assets
Original amount	3,005	3,005
Accumulated amortization	$ 1,409	$ 470

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Beginning balance	$ 19,377	$ 6,168
Acquired during the year (see Note 1d)		13,518
Foreign currency translation adjustments	(286)	(309)
Ending balance	$ 19,091	$ 19,377

ACCRUED EXPENSES AND OTHER AC47

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Employees and payroll accruals	$ 285	$ 357
Government authorities	801	542
Accrued vacation pay	211	128
Accrued expenses	1,569	2,152
Factoring advance payments	615	180
Capital leases - current portion	440	252
Other	500	204
Total accrued expenses and other accounts payable	$ 4,421	$ 3,815

COMMITMENTS AND CONTINGENT LI48

COMMITMENTS AND CONTINGENT LIABILITIES (Commitments for Israeli Government Royalties) (Details) - Royalty Commitment with Israeli Government [Member] $ in Thousands	Dec. 31, 2015USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
Maximum royalty as a percentage of grants received	100.00%
Outstanding obligation in respect of royalty-bearing Government participation received or accrued, net of royalties paid or accrued	$ 408
Minimum [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Royalty percentage	3.00%
Maximum [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Royalty percentage	3.50%

COMMITMENTS AND CONTINGENT LI49

COMMITMENTS AND CONTINGENT LIABILITIES (Lease Commitments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Minimum lease payments under operating leases for its motor vehicles and facilities:
2,016	$ 1,602
2,017	1,115
2,018	572
2,019	442
2,020	258
2,021	162
Total	4,151
Rental expenses for motor vehicles and facility rental expenses	$ 1,194	$ 1,279	$ 1,323

COMMITMENTS AND CONTINGENT LI50

COMMITMENTS AND CONTINGENT LIABILITIES (Revolving Line of Credit) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Israeli Bank Line of Credit [Member]
Line of credit:
Line of credit initiation date		Oct. 1, 2015
Line of credit maximum borrowing capacity		$ 500
Spread over LIBOR		4.00%
Interest expense		$ 3
Israeli Bank New Line of Credit [Member] | Subsequent Event [Member]
Line of credit:
Line of credit initiation date	Mar. 6, 2016
Spread over LIBOR	4.20%
Line of credit borrowing capacity description	According to the agreement, the Company is provided with the aggregate principal amount of account receivables ("AR") loan and AR credit line which will not exceed the lower of $3,000 and the sum of 70% of the aggregate value of eligible AR, as defined in the agreement.

COMMITMENTS AND CONTINGENT LI51

COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Bank, to Secure Lease Agreements [Member]
Line of Credit Facility [Line Items]
Amount of guarantee by bank	$ 119
Bank, Provided to Certain Customers and Vendors [Member]
Line of Credit Facility [Line Items]
Amount of guarantee by bank	$ 290

COMMITMENTS AND CONTINGENT LI52

COMMITMENTS AND CONTINGENT LIABILITIES (Legal proceedings) (Details) - Pending Litigation [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
European Customer One [Member]
Loss Contingencies [Line Items]
Damages sought in litigation proceedings	$ 92
European Customer Two [Member]
Loss Contingencies [Line Items]
Damages sought in litigation proceedings	$ 79

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Deferred tax asset, carryforward tax business losses	$ 12,899	$ 10,627
Unrecognized income tax benefits that, if recognized, would impact the effective tax rate		213
Valuation allowance	$ 11,728	8,177
Foreign [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards	30,427
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards	$ 25,151
Internal Revenue Service (IRS) [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Years losses can be carried forward	7 years
Internal Revenue Service (IRS) [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Years losses can be carried forward	20 years
Her Majesty's Revenue and Customs (HMRC) [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards		$ 639
National Tax Agency, Japan [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards	$ 2,126
Inland Revenue, Singapore (IRAS) [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards	2,511
Top Image Systems Ltd. [Member] | Domestic [Member]
Operating Loss Carryforwards [Line Items]
Loss carryforwards	11,314
Capital loss carryforwards	$ 1,892

TAXES ON INCOME (Schedule of In

TAXES ON INCOME (Schedule of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income (loss) from continuing operations before taxes on income:
Domestic	$ (5,453)	$ (6,343)	$ (829)
Foreign	(1,608)	1,422	641
Loss before taxes on income	$ (7,061)	$ (4,921)	$ (188)

TAXES ON INCOME (Schedule of Ta

TAXES ON INCOME (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes:
Current taxes	$ (194)	$ (496)	$ (204)
Deferred taxes	(1,021)	(56)	205
Total	(1,215)	(552)	1
Domestic	(1,268)	(166)	205
Foreign	$ 53	$ (386)	$ (204)

TAXES ON INCOME (Schedule of De

TAXES ON INCOME (Schedule of Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred taxes:
Carryforward losses	$ 12,899	$ 10,627
Research and development expenses	712	780
Accrued severance pay	52	17
Accrued vacation pay	33	30
Deferred tax assets before valuation allowance	13,696	11,454
Deferred tax liability :
Intangible assets	(1,922)	(2,391)
Deferred revenues	(46)	(66)
Deferred tax liabilities before valuation allowance	(1,968)	(2,457)
Net deferred tax assets before valuation allowance	11,728	8,997
Valuation allowance	$ (11,728)	(8,177)
Net deferred tax assets		$ 820

TAXES ON INCOME (Schedule of 57

TAXES ON INCOME (Schedule of Deferred Tax Liabilities and Assets by Current and Noncurrent Classification) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax [Line Items]
Current deferred tax asset, net		$ 749
Current deferred tax liability, net		(133)
Non-current deferred tax asset, net		522
Net deferred tax assets (liabilities)		820
Domestic [Member]
Income Tax [Line Items]
Current deferred tax asset, net		746
Non-current deferred tax asset, net		522
Net deferred tax assets (liabilities)	$ 1,428	1,268
Foreign [Member]
Income Tax [Line Items]
Current deferred tax asset, net
Current deferred tax liability, net		(130)
Non-current deferred tax asset, net		(318)
Net deferred tax assets (liabilities)		$ (448)

TAXES ON INCOME (Reconciliation

TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits, beginning balance	$ 213	$ 204	$ 204
Interest accrued		9
Deduction of unrecognized tax benefits	$ (213)
Gross unrecognized tax benefits, ending balance		$ 213	$ 204
Penalties and interest accrued

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands

Dec. 28, 2015$ / sharesshares

Aug. 10, 2015$ / sharesshares

Jun. 01, 2015$ / sharesshares

Jan. 02, 2015$ / sharesshares

Sep. 18, 2014$ / sharesshares

Jul. 16, 2014shares

Jul. 13, 2014$ / sharesshares

Feb. 28, 2014shares

Oct. 31, 2013shares

Dec. 31, 2006shares

May. 31, 2004shares

Dec. 31, 2015USD ($)$ / sharesshares

Dec. 31, 2014USD ($)$ / sharesshares

Dec. 31, 2011$ / sharesshares

Dec. 31, 2015USD ($)shares

Dec. 31, 2011₪ / shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Additional options authorized

1,100,000

700,000

650,000

Options outstanding

1,855,809

1,294,810

1,855,809

Options available for future grant

171,128

171,128

Options granted

836,549

Exercisable at the end of the year

1,103,932

1,103,932

Intrinsic value of options exercised | $

$ 842

Unrecognized compensation costs related to non-vested share-based compensation arrangements | $

$ 1,456

$ 1,456

Unrecognized compensation costs related to non-vested share-based compensation arrangements, recognition period

2 years 9 months

Weighted average grant date fair values of options granted | $ / shares

$ 1.67

$ 1.85

Issuance of Ordinary shares and Warrants, net (Note 10b), shares

3,162,500

eGistics [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of ordinary shares issued in conjunction of the acquisition

2,353,310

Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Options granted

35,000

516,549

10,000

52,500

100,000

Vesting period

2 years

3 years

3 years

Vesting period description

One third will be exercisable in one year, one third will be exercisable in two years, and one third will be exercisable in three years.

One third will be exercisable in one year, one third will be exercisable in two years, and one third will be exercisable in three years.

Exercise price | $ / shares

$ 3.45

$ 3.42

$ 3.42

$ 4.15

$ 3.95

Transaction One [Member] | Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Options granted

200,000

Vesting period description

One half was exercisable on December 31, 2015, and one half will be exercisable on December 31, 2016.

Exercise price | $ / shares

$ 3.30

Transaction Two [Member] | Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Options granted

50,000

Vesting period description

One half will be exercisable on May 21, 2015, and one half will be exercisable on May 21, 2016.

Exercise price | $ / shares

$ 3.30

Transaction Three [Member] | Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Options granted

25,000

Vesting period description

One third will be exercisable on December 31, 2015, one third will be exercisable on December 31, 2016, and one third will be exercisable on December 31, 2017.

Exercise price | $ / shares

$ 3.40

Warrant [Member] | Private Placement [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Warrants granted

441,750

Warrant exercise price | $ / shares

$ 2.20

Warrant par value | ₪ / shares

₪ 0.04

Warrant term

5 years

Warrants exercised

297,150

Warrants outstanding

144,600

144,600

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of options
Outstanding at the beginning of the year	1,294,810
Granted	836,549
Exercised	(39,422)
Forfeited	(236,128)
Outstanding at the end of the year	1,855,809	1,294,810
Exercisable at the end of the year	1,103,932
Vested and expected to vest at end of year	1,815,258
Weighted average exercise price
Outstanding at the beginning of the year	$ 3.60
Granted	3.38
Exercised	2.01
Forfeited	4.07
Outstanding at the end of the year	3.48	$ 3.60
Exercisable at the end of the year	3.27
Vested and expected to vest at end of year	$ 3.46
Weighted average remaining contractual life (years)
Outstanding at the end of the year	7 years 6 months 26 days	7 years 6 months 26 days
Exercisable at the end of the year	6 years 10 months 10 days
Vested and expected to vest at end of year	7 years 8 months 19 days
Aggregate intrinsic value
Outstanding at the end of the year	$ 555
Exercisable at the end of the year	555
Vested and expected to vest at end of year	$ 544

SHAREHOLDERS' EQUITY (Schedul61

SHAREHOLDERS' EQUITY (Schedule of Information about Options Outstanding) (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding | shares	1,855,809
Weighted average remaining contractual life (years)	7 years 8 months 19 days
Weighted average exercise price	$ 3.48
Options exercisable | shares	1,103,932
Weighted average exercise price of options exercisable	$ 3.27
Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Minimum exercise price	1.30
Maximum exercise price	$ 1.30
Options Outstanding | shares	74,322
Weighted average remaining contractual life (years)	3 years 2 months 23 days
Weighted average exercise price	$ 1.30
Options exercisable | shares	74,322
Weighted average exercise price of options exercisable	$ 1.30
Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Minimum exercise price	2.11
Maximum exercise price	$ 2.25
Options Outstanding | shares	502,671
Weighted average remaining contractual life (years)	5 years 11 months 27 days
Weighted average exercise price	$ 2.18
Options exercisable | shares	502,671
Weighted average exercise price of options exercisable	$ 2.18
Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Minimum exercise price	3.30
Maximum exercise price	$ 6.04
Options Outstanding | shares	1,278,816
Weighted average remaining contractual life (years)	8 years 7 months 28 days
Weighted average exercise price	$ 4.09
Options exercisable | shares	526,939
Weighted average exercise price of options exercisable	$ 4.58

SHAREHOLDERS' EQUITY (Schedul62

SHAREHOLDERS' EQUITY (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 808	$ 670	$ 356
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	150	162	64
Research and Development, Net [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	90	71	23
Selling and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	198	183	57
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 370	$ 254	$ 212

GEOGRAPHICAL INFORMATION AND 63

GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA (Revenues) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	$ 7,708	$ 11,211	$ 11,762
Service Revenues	26,083	24,644	17,295
Total revenues	33,791	35,855	29,057
Far East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	1,433	2,745	2,322
Service Revenues	3,837	3,536	3,259
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	2,421	2,893	2,616
Service Revenues	4,881	6,186	7,820
Rest of Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	2,127	3,035	1,761
Service Revenues	4,658	7,121	4,370
North and South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	1,343	2,091	4,254
Service Revenues	12,270	7,435	1,284
Africa and Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
License Revenues	384	447	809
Service Revenues	$ 437	$ 366	$ 562

GEOGRAPHICAL INFORMATION AND 64

GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Long-lived assets:
Long-lived assets:	$ 1,444	$ 1,180	$ 260
Israel [Member]
Long-lived assets:
Long-lived assets:	113	127
USA [Member]
Long-lived assets:
Long-lived assets:	1,239	974
Other [Member]
Long-lived assets:
Long-lived assets:	$ 92	$ 79

GEOGRAPHICAL INFORMATION AND 65

GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS DATA (Major Customers Data) (Details)	12 Months Ended
	Dec. 31, 2013
Customer Concentration Risk [Member] | Sales [Member] | Major Customer [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	10.20%

BASIC AND DILUTED NET EARNING66

BASIC AND DILUTED NET EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
The following table sets forth the computation of basic and diluted net earnings (loss) per share:
Net loss used for the computation of diluted net loss per share		$ (8,295)	$ (5,479)	$ (187)
Weighted average Ordinary shares outstanding		17,870,588	16,071,608	11,718,960
Effect of dilutive securities:
Employees stock options	[1]
Warrants	[1]
Total effect of dilutive securities
Diluted weighted average Ordinary shares outstanding		17,870,588	16,071,608	11,718,960
Basic loss per Ordinary share		$ (0.46)	$ (0.34)	$ (0.02)
Diluted loss per Ordinary share		$ (0.46)	$ (0.34)	$ (0.02)
[1]	Anti-dilutive.

FINANCIAL EXPENSE (Details)

FINANCIAL EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
FINANCIAL EXPENSE [Abstract]
Interest expenses	$ 107	$ 35	$ 29
Fair value adjustments for deferred revenues	109	55
Exchange rate loss	828	169	$ 86
Bank charges	101	93	171
Financial expenses , net	$ 1,145	$ 352	$ 286

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Maximum average monthly gross compensation fee	$ 28,100
Bonus entitled as a percentage of the total amount raised by the Company on the underwritten public offering	0.25%
Percent of EBITDA entitlement	4.25%
Board of Directors Chairman [Member]
Related Party Transaction [Line Items]
Compensation	$ 323,000	$ 369,000	$ 324,000

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent Event [Member] $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)Employees	Dec. 31, 2016USD ($)
Subsequent Event [Line Items]
Restructuring initiation date	Mar. 8, 2016
Positions eliminated in restructuring | Employees	33
Estimated cost savings from restructuring plan	$ 2,187
Scenario Forecast [Member]
Subsequent Event [Line Items]
Estimated cost savings from restructuring plan		$ 4,328
Estimated restructuring costs incurred	$ 1,174