| The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
| Dec. 31, 2016 |
| Principles of Consolidation | Principles of consolidation Our accompanying consolidated financial statements
include the accounts of our wholly-owned subsidiaries BBI, ICTV Holdings and Ermis Lab, Inc. In October 2016, ICTV Holdings and
Ermis Lab, Inc. were formed as holding companies for the asset purchase agreements that were entered into with PhotoMedex, Inc.
and Ermis Lab, Inc. (see Note 10-Subsequent Events) and did not have any activity through December 31, 2016. All significant inter-company
transactions and balances have been eliminated. |
| Use of Estimates | Use of estimates The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management
to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.
Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable and prudent.
The most significant estimates used in these consolidated financial statements include the allowance for doubtful accounts, reserves
for returns, inventory reserves, valuation allowance on deferred tax assets and share based compensation. Actual results could
differ from these estimates. |
| Functional Currency | Foreign currency transactions Transactions we entered into in currencies
other than its local currency, are recorded in its local currency and any changes in currency exchange rates that occur from the
initiation of a transaction until settled are recorded as foreign currency gains or losses in the Consolidated Statements of Operations. |
| Cash and Cash Equivalents | Cash and cash equivalents We consider all unrestricted highly liquid
investments with an original maturity of three months or less to be cash equivalents. |
| Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable Accounts receivable are recorded net of allowances
for returns and doubtful accounts of approximately $123,000 and $119,000 as of December 31, 2016 and 2015, respectively. The allowances
are calculated based on historical customer returns and bad debts. In addition to reserves for returns on accounts
receivable, an accrual is made for the return of product that have been sold to customers and had cash collections, while the
customer still has the right to return the product. The amounts of these accruals included in accounts payable and accrued liabilities
in our Consolidated Balance Sheets were approximately $91,000 and $80,000 as of December 31, 2016 and 2015, respectively. |
| Inventories | Inventories Inventories consist primarily of finished
products held for resale, and are valued at the lower of cost (first-in, first-out method) or market. We adjust inventory for
estimated obsolescence when necessary based upon demand and market conditions. The Company’s reserve for obsolescence was
approximately $74,000 and $123,000 as of December 31, 2016 and 2015, respectively. Included in inventory at December 31, 2016
and 2015 is approximately $67,000 and $42,000, respectively, of consigned product that has been shipped to customers under the
30-day free trial period for which the trial period has not expired and as such the customer has not accepted the product as well
as consigned products that are held at a retailer distributor for sale. |
| Property, Equipment and Depreciation | Furniture and equipment Furniture and equipment are carried at cost
and depreciation is computed over the estimated useful lives of the individual assets ranging from 3 to 5 years. Depreciation
is computed using the straight-line method. The related cost and accumulated depreciation of assets retired or otherwise disposed
of are removed from the accounts and the resultant gain or loss is reflected in earnings. Maintenance and repairs are expensed
currently while major renewals and betterments are capitalized. Depreciation expense amounted to approximately $8,000, for each
of the years ended December 31, 2016 and 2015. |
| Revenue Recognition | Revenue recognition We recognize revenues from product sales when
the following four criteria have been met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii)
the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company’s revenues in the
Consolidated Statements of Operations are net of sales taxes. Revenues from product sales are recorded net of provisions for estimated
chargebacks, rebates, expected returns and cash discounts. We offer a 30-day risk-free trial as one of
its payment options. Revenue on the 30-day risk-free trial sales is not recognized until customer acceptance and collectability
are assured which we determine to be when the trial period ends. If the risk-free trial expires without action by the customer,
product is determined to be accepted by the customer and revenue is recorded. Revenue for items purchased without the 30-day free
trial is recognized upon shipment of the product to the customer and collectability is reasonably assured. Revenue related to our DermaVital TM Included in deferred revenue – short-term
are payments received prior to shipment on international sales of approximately $142,000 and $221,000 as of December 31, 2016 and
2015, respectively. We have a return policy whereby the customer
can return any product received within 30 of receipt for a full refund. We provide a provision for product returns based on the
experience with historical sales returns, in accordance with ASC Topic 605-15 with respect to sales of product when a right of
return exists. Returns for the periods presented have been offset against gross sales. Such allowance for sales returns is included
in accounts payable and accrued liabilities. We sell warranties on the DermaWand TM
Years ended December 31,
2016 2015
Deferred extended warranty revenue:
At beginning of period $ 629,143 $ 670,075
Revenue deferred for new warranties 118,148 174,852
Revenue recognized (237,902 ) (215,784 )
At end of period $ 509,389 $ 629,143
Current portion $ 235,015 $ 223,397
Non-current portion 274,374 405,746
$ 509,389 $ 629,143 |
| Shipping and Handling Costs | Shipping and handling The amount billed to a customer for shipping
and handling is included in revenue. Shipping, handling and processing revenue approximated $2,097,000 and $3,134,000 for the
years ended December 31, 2016 and 2015, respectively. Shipping and handling costs are included in cost of sales. Shipping and
handling costs approximated $861,000 and $1,628,000 for the years ended December 31, 2016 and 2015, respectively. |
| Advertising Costs | Media and production costs Media and internet marketing costs are expensed
as incurred and are included in selling and marketing expense in the accompanying consolidated financial statements. Production
costs associated with the creation of new and updated infomercials and advertising campaigns are expensed at the commencement
of a campaign. We incurred approximately $4,965,000 and $7,907,000 in media costs for airing our infomercials, $239,000 and $323,000
in new production costs, and $1,347,000 and $906,000 in internet marketing costs for the years ended December 31, 2016 and 2015,
respectively. |
| Income Taxes | Income taxes In preparing our consolidated financial statements,
we make estimates of our current tax exposure and temporary differences resulting from timing differences for reporting items
for book and tax purposes. We recognize deferred taxes by the asset and liability method of accounting for income taxes. Under
the asset and liability method, deferred income taxes are recognized for differences between the financial statement and tax basis
of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse.
The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date.
In addition, valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.
In consideration of our accumulated losses and limited historical ability to generate taxable income to utilize our deferred tax
assets, we have estimated that we will not be able to realize any benefit from our temporary differences and have recorded a full
valuation allowance. If we sustain profitability in the future at levels which cause management to conclude that it is more likely
than not that we will realize all or a portion of the net operating loss carry-forward, we would record the estimated net realized
value of the deferred tax asset at that time and would then provide for income taxes at a rate equal to our combined federal and
state effective rates. Subsequent revisions to the estimated net realizable value of the deferred tax asset could cause our provision
for income taxes to vary significantly from period to period. |
| Concentration of credit risks | Concentration of credit risk Financial instruments, which potentially subject
us to concentrations of credit risk, include cash and trade receivables. We maintain cash in bank accounts that, at times, may
exceed federally insured limits. We have not experienced any losses and believes it is not exposed to any significant risks on
its cash in bank accounts. As of December 31, 2016, 55% of our accounts
receivable were due from various individual customers to whom our products had been sold directly via Direct Response Television.
In addition, 4% of our accounts receivable was cash due from our credit card processors as well as 25% was due from e-commerce
accounts and the remaining amount from miscellaneous accounts. Major customers are considered to be those who accounted for more
than 10% of net sales. For the fiscal years ended December 31, 2016 and December 31, 2015, there were no major customers. |
| Stock-Based Compensation | Stock options In June 2001, our shareholders approved
our 2001 Stock Option Plan (the “Plan”). The Plan is designed for our employees, officers and directors and is intended
to advance our best interests by providing personnel who have substantial responsibility for our management and growth with additional
incentive by increasing their proprietary interest in our success, thereby encouraging them to remain our employee. The Plan is
administered by our Board of Directors, and authorizes the issuance of stock options not to exceed a total of 3,000,000 shares.
The terms of any awards under the Plan are determined by the Board of Directors, provided that no options may be granted at less
than the fair market value of the stock as of the date of the grant. The Plan expired in February 2011. As of December 31, 2016,
116,667 options are outstanding under the Plan. In December 2011, our shareholders approved
our 2011 Stock Option Plan (the “2011 Plan”). The 2011 Plan is designed for our employees, officers, and directors,
and is intended to advance our best interests by providing personnel who have substantial responsibility for our management and
growth of with additional incentive by increasing their proprietary interest in our success, thereby encouraging them to remain
our employee. The 2011 Plan is administered by our Board of Directors, and authorizes the issuance of stock options not to exceed
a total of 6,000,000 shares. The terms of any awards under the 2011 Plan are determined by the Board of Directors, provided that
no options may be granted at less than the fair market value of the stock as of the date of the grant. Generally, the options granted
vest over three years with one-third vesting on each anniversary date of the grant. As of December 31, 2016, 3,563,335 options
are outstanding under the 2011 Plan. We account for equity instruments issued
to non-employees in accordance with the provisions of ASC Topic 505, subtopic 50, Equity-Based Payments to Non-Employees We use ASC Topic 718, “Share-Based
Payments”, to account for stock-based compensation issued to employees and directors. We recognize compensation expense in
an amount equal to the grant date fair value of share-based payments such as stock options granted to employees over the requisite
vesting period of the awards. The following is a summary of stock
options outstanding under the Plan and 2011 Plan (collectively “Stock Option Plans”) for the years ended December 31,
2016 and 2015:
Number of Shares Weighted Average
Employee
Non- Employee Totals
Exercise Price
Balance, January 1, 2016 4,036,669 - 4,036,669 $ 0.21
Granted during the year 725,000 - 725,000 0.34
Exercised during the year (650,000 ) - (650,000 ) 0.16
Forfeited during the year (431,667 ) - (431,667 ) 0.26
Balance, December 31, 2016 3,680,002 - 3,680,002 $ 0.24
Number of Shares Weighted Average
Employee Non- Employee Totals
Exercise Price
Balance, January 1, 2015 4,220,002 350,000 4,570,002 $ 0.40
Granted during the year 300,000 - 300,000 0.21
Exercised during the year (335,000 ) (350,000 ) (685,000 ) 0.14
Forfeited during the year (148,333 ) - (148,333 ) 0.39
Balance, December 31, 2015 4,036,669 - 4,036,669 $ 0.21 Of the stock options outstanding as
of December 31, 2016 under the Stock Option Plans, 2,595,000 options are currently vested and exercisable. The weighted average
exercise price of these options was $0.22. These options expire through November 2026. The aggregate intrinsic value for options
outstanding and exercisable at December 31, 2016 and 2015, was approximately $203,000 and $60,000, respectively. The aggregate
intrinsic value for stock options exercised during the years ended December 31, 2016 and 2015 was approximately $82,000 and $51,000,
respectively. For the years ended December 31, 2016
and 2015, we recorded approximately $363,000 and $528,000, respectively, in stock compensation expense under the Stock Option Plans.
At December 31, 2016, there was approximately $391,000 of total unrecognized compensation cost related to non-vested option grants
that will be recognized over the remaining vesting period of 3 years. The following assumptions are used in
the Black-Scholes option pricing model for the years ended December 31, 2016 and 2015 to value the stock options granted during
the period:
2016 2015
Risk-free interest rate 1.58-2.18% Risk-free interest rate 2.05%
Expected dividend yield 0.00 Expected dividend yield 0.00
Expected life 6.00 years Expected life 6.00 years
Expected volatility 152-153% Expected volatility 156%
Forfeiture rate 5.0% Forfeiture rate 5.0%
Weighted average grant date fair value $0.33 Weighted average grant date fair value $0.20 The following is a summary of stock
options outstanding outside of the Stock Option Plans for the years ended December 31, 2016 and 2015:
Number of Shares Weighted Average
Employee Non- Employee Totals
Exercise Price
Balance, January 1, 2016 466,667 1,976,667 2,443,334 $ 0.32
Granted during the year 50,000 - 50,000 0.21
Expired during the period - (300,000 ) (300,000 ) 0.08
Balance, December 31, 2016 516,667 1,676,667 2,193,334 $ 0.35
Number of Shares Weighted Average
Employee Non- Employee Totals
Exercise Price
Balance, January 1, 2015 466,667 2,016,667 2,483,334 $ 0.36
Exercised during the year - (40,000 ) (40,000 ) 0.15
Balance, December 31, 2015 466,667 1,976,667 2,443,334 $ 0.32 Of the stock options currently outstanding
outside of the Stock Option Plans at December 31, 2016, 2,085,001 options are currently vested and exercisable. The weighted average
exercise price of these options was $0.36. These options expire through January 2026. The aggregate intrinsic value for options
outstanding and exercisable at December 31, 2016 and 2015, was approximately $124,000 and $72,000, respectively. The aggregate
intrinsic value for stock options exercised during the years ended December 31, 2016 and 2015 was approximately $0 and $2,000,
respectively. For the years ended December 31, 2016
and 2015, we recorded approximately $54,000 and $62,000, respectively in stock compensation expense related to stock options outside
of the Stock Option Plans. At December 31, 2016, there was approximately $25,000 of total unrecognized compensation cost related
to non-vested option grants that will be recognized over a remaining vesting period of 3 years. On December 28, 2015, we modified the
exercise price of 1,630,000 options issued to nine employees and 500,000 options to one employee under our 2011 Stock Option Plan.
The options were issued with a fair market value exercise price of $0.21 per share for the nine employees and $0.24 for the remaining
employee. Additionally, on December 28, 2015, we modified the exercise price of 200,000 options issued to three of our independent
directors at a fair market value exercise price of $0.21 per share. The vesting period remained the same, provided the recipients
are still our employees or directors at the time of vesting. The accounting impact from the modification was immaterial and the
expense remained the same. The following assumptions are used in
the Black-Scholes option pricing model for the years ended December 31, 2016. There were no grants for the year ended December
31, 2015.
2016
Risk-free interest rate 1.94%
Expected dividend yield 0.00
Expected life 6.0 years
Expected volatility 156%
Forfeiture rate 5.0%
Weighted average grant date fair value $0.21 The following is a summary of all stock
options outstanding, and nonvested for the year ended December 31, 2016:
Number of Shares Weighted Average
Employee
Non- Employee Totals
Exercise Price
Balance, January 1, 2016 – nonvested 1,843,335 - 1,843,335 $ 0.22
Granted 775,000 - 775,000 0.33
Vested (1,125,000 ) (1,125,000 ) 0.25
Forfeited (300,000 ) - (300,000 ) 0.23
Balance, December 31, 2016 – nonvested 1,193,335 - 1,193,335 $ 0.27 |
| Photomedex, Inc. [Member] | |
| Accounting Principles | Accounting Principles The consolidated financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications
did not have material impact on the Company’s equity, net assets, results of operations or cash flows. |
| Principles of Consolidation | Principles of Consolidation The consolidated financial statements include
the accounts of the Company and the wholly and majority owned subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation. |
| Held for Sale Classification and Discontinued Operations | Held for Sale Classification and Discontinued
Operations A disposal group is reported as held for sale
when management has approved or received approval to sell and is committed to a formal plan, the disposal group is available for
immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain
other specified criteria are met. A disposal group classified as held for sale is recorded at the lower of its carrying amount
or estimated fair value less cost to sell. If the carrying value of the business exceeds its estimated fair value less cost to
sell, a loss is recognized. However, when a disposal group meets the held for sale criteria, the Company first evaluates whether
the carrying amounts of the assets not covered by ASC 360-10 included in the disposal group (such as goodwill) are required to
be adjusted in accordance with other applicable GAAP before measuring the disposal group at fair value less cost to sell. Assets and liabilities related to a disposal
group classified as held for sale are segregated in the consolidated balance sheet in the period in which the disposal group is
classified as held for sale. Until December 31, 2014, in accordance with
previous US GAAP, operations of a disposal group were reported as discontinued operations if the disposal group is classified as
held for sale, the operations and cash flows of the business have been or will be eliminated from the ongoing operations as a result
of a disposal transaction and when the Company will not have any significant continuing involvement in the operations of the disposal
group after the disposal transaction. See below regarding change to the criteria for reporting discontinued operations. Commencing January 1, 2015 (the effective date
of the ASU 2014-08), only disposal of a component of an entity or a group of components of an entity that represents a strategic
shift that has or will have a major effect on an entity’s operations and financial results shall be reported as discontinued
operations. The revised guidance did not change the criteria required to qualify for held for sale presentation. The revised guidance
includes several new disclosures and among others, requires to reclassify the assets and liabilities of discontinued operations
to separate line items in the balance sheets for all periods presented (including comparatives). The results of discontinued operations are
reported in discontinued operations in the consolidated statement of comprehensive loss for current and prior periods commencing
in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on
closing or adjustment of the carrying amount to fair value less cost to sell. Depreciation is not recorded on assets of a business
while it is classified as held for sale. (See also Note Discontinued Operations |
| Use of Estimates | Use of Estimates The preparation of the consolidated financial
statements in conformity with accounting principles generally accepted in the United States (“US GAAP”) requires management
to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements
and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates
and be based on events different from those assumptions. As part of these financial statements, the more significant estimates
include (1) revenue recognition, including provision for sales return and valuation allowances of accounts receivable; (2) valuation
allowance of deferred tax assets and uncertainty in tax positions; and (3) stock based compensation and (4) impairment of long
lived assets and intangibles (5) evaluation of going concern; (6) contingencies. |
| Functional Currency | Functional Currency The currency of the primary economic environment
in which the operations of the Company, its U.S. subsidiaries and Radiancy Ltd., its subsidiary in Israel, are conducted is the
US dollar (“$” or “dollars”). Thus, the functional currency of the Company and its subsidiaries (other
than the foreign subsidiaries mentioned below) is the dollar (which is also the reporting currency of the Group). The operations
of the other foreign subsidiaries are each conducted in the local currency of the subsidiary. These currencies include: Great Britain
Pounds (GBP) and Hong Kong Dollar (HKD). Substantially all of the Group’s revenues are derived in dollars or in other currencies
linked to the dollar. Purchases of most materials and components are carried out in, or linked to the dollar. Balances denominated in, or linked to, foreign
currencies are stated on the basis of the exchange rates prevailing at the balance sheet date. For foreign currency transactions
included in the statement of comprehensive income (loss), the exchange rates applicable to the relevant transaction dates are used.
Transaction gains or losses arising from changes in the exchange rates used in the translation of such balances are carried to
financing income or expenses. Assets and liabilities of foreign subsidiaries,
whose functional currency is the local currency, are translated from its respective functional currency to U.S. dollars at
the balance sheet date exchange rates. Income and expense items are translated at the average rates of exchange prevailing during
the year. Translation adjustments are reflected in the consolidated balance sheets as a component of accumulated other comprehensive
income or loss. |
| Fair Value Measurements | Fair Value Measurements The Company measures and discloses fair value
in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820, Fair Value
Measurements and Disclosures
● Level 1 - unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
● Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
● Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors. This hierarchy requires the Company to use
observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The fair value of cash and cash equivalents
are based on its demand value, which is equal to its carrying value. Additionally, the carrying value of all other monetary assets
and liabilities is estimated to be equal to their fair value due to the short-term nature of these instruments. Derivative financial instruments are measured
at fair value, on a recurring basis. The fair value of derivatives generally reflects the estimated amounts that the Group would
receive or pay to terminate the contracts at the reporting dates, based on the prevailing currency prices and the relevant interest
rates. As of December 31, 2016 and 2015 there are no such instruments. In addition to items that are measured at
fair value on a recurring basis, there are also assets and liabilities that are measured at fair value on a nonrecurring basis.
Assets and liabilities that are measured at fair value on a nonrecurring basis include certain long-lived assets including goodwill
and intangibles. These fair value measurements reside within Level 3 of the fair value hierarchy. |
| Cash and Cash Equivalents | Cash and Cash Equivalents The Company invests its excess cash in highly
liquid short-term investments. The Company considers short-term investments that are purchased with an original maturity of three
months or less to be cash equivalents. Cash and cash equivalents consisted of cash and money market accounts at December 31, 2016
and 2015. |
| Short-term Deposits | Short-term Deposits Short-term deposits are deposits with original
maturities of more than three months but less than one year. Short-term deposits are presented at their costs including accrued
interest. |
| Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for
Doubtful Accounts The majority of the Company’s accounts
receivable are due from consumers, distributors (domestic and international), physicians and other entities in the medical field.
Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for
doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. Allowance for doubtful
accounts were determined by considering a number of factors, including the length of time trade accounts receivable are past due,
the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company and available
information about their credit risk, and the condition of the general economy and the industry as a whole. The Company writes
off accounts receivable when they are considered uncollectible, and payments subsequently received on such receivables are credited
to the allowance for doubtful accounts. The Company did not recognize interest accruing on accounts receivable past due. |
| Inventories | Inventories Inventories are stated at the lower of cost
or market. Cost is determined to be purchased cost for raw materials and the production cost (materials, labor and indirect manufacturing
cost, including sub-contracted work components) for work-in-process and finished goods. For the Company’s consumer and LHE
products, cost was determined on the weighted-average method. For the pre-merged PhotoMedex’s products, cost was determined
on the first-in, first-out method. Reserves for slow moving and obsolete inventories
were provided based on historical experience and product demand. Management evaluates the adequacy of these reserves periodically
based on forecasted sales and market trend. |
| Property, Equipment and Depreciation | Property, Equipment and Depreciation
Property and equipment are recorded at cost,
net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets,
primarily three to seven years for computer hardware and software, furniture and fixtures, and machinery and equipment. Leasehold
improvements are amortized over the lesser of the useful lives or lease terms. Expenditures for major renewals and betterments
to property and equipment are capitalized, while expenditures for maintenance and repairs are charged as an expense as incurred.
Upon retirement or disposition, the applicable property amounts are deducted from the accounts and any gain or loss is recorded
in the consolidated statements of comprehensive (loss) income. Useful lives are determined based upon an estimate of either physical
or economic obsolescence or both. Management evaluated the realizability of
property and equipment based on estimates of undiscounted future cash flows over the remaining useful life of the asset. If the
amount of such estimated undiscounted future cash flows is less than the net book value of the asset, the asset is written down
to fair value. (See Impairment of Long-Lived Assets and Intangibles |
| Patent Costs and Licensed Technologies | Patent Costs and Licensed Technologies Costs incurred to obtain or defend patents
and licensed technologies were capitalized and amortized over the shorter of the remaining estimated useful lives or eight to 12
years. Core and product technology was also recorded in connection with the reverse acquisition on December 13, 2011 and was being
amortized on a straight-line basis over ten years for core technology and five years for product technology. (See Note 6 Patent and Licensed Technologies Management evaluated the recoverability of
intangible assets based on estimates of undiscounted future cash flows over the remaining useful life of the asset. If the amount
of such estimated undiscounted future cash flows is less than the net book value of the asset, the asset is written down to fair
value. During the years ended December 31, 2015 and 2016, the Company recorded an impairment of patents and licensed technologies
in the amount of $1,424 and $1,261, respectively. (See Impairment of Long-Lived Assets and Intangibles |
| Other Intangible Assets | Other Intangible Assets Other intangible assets were recorded in connection
with the reverse acquisition on December 13, 2011. The assets which were determined to have definite useful lives were amortized
on a straight-line basis over ten years. Such assets primarily include customer relationships and trademarks. (See Note 7 Goodwill and Other Intangible Assets) Management evaluates the recoverability of
such other intangible assets based on estimates of undiscounted future cash flows over the remaining useful life of the asset.
If the amount of such estimated undiscounted future cash flows is less than the net book value of the asset, the asset is written
down to fair value. As of December 31, 2015 the Company recognized and recorded an impairment of Physician Recurring segment intangibles
for its trademark, tradename, customer relationships in the amount of $3,527. In connection with the transactions with ICTV, as
of December 31, 2016 the Company recorded an impairment of the entire remaining balance of Consumer segment other intangible assets
in the amount of $1,261. (See Impairment of Long-Lived Assets and Intangibles |
| Accounting for the Impairment of Goodwill | Accounting for the Impairment of Goodwill The Company evaluates the carrying value of
goodwill annually at the end of the calendar year and also between annual evaluations if events occur or circumstances change
that would more likely than not reduce the fair value of the reporting unit to which goodwill was allocated to below its carrying
amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or in business
climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Goodwill impairment evaluation
is performed subsequent to Impairment evaluation of long-lived assets and intangibles (see Notes 6 and 7). Goodwill impairment
testing involves a two-step process. Step 1 compares the fair value of the Group’s reporting units to which goodwill was
allocated to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no further analysis is
necessary. The reporting unit fair value is based upon consideration of various valuation methodologies, including guideline transaction
multiples, multiples of current earnings, and projected future cash flows discounted at rates commensurate with the risk involved.
If the carrying amount of the reporting unit exceeds its fair value, Step 2 must be completed to quantify the amount of impairment.
Step 2 calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding
goodwill, of the reporting unit, from the fair value of the reporting unit as determined in Step 1. The implied fair value of
goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less
than the carrying value of goodwill, an impairment loss, equal to the difference, is recognized. See Note 2, regarding the impairment
of goodwill which was allocated to the XTRAC division classified as assets held for sale in 2015. Furthermore, during the fourth
quarter of 2015, we recorded goodwill asset impairment charges of $16,530, as we determined that a portion of the value of our
goodwill was impaired in connection with our annual impairment test. A number of factors contributed to decreased earnings projection
including, competition from consumer device companies claiming similar product functionality, our inability to attract sufficient
financial resources to quickly increase our advertisement to overcome the market confusion created by competitors, the inability
to effectively expand operations into foreign markets and quickly ramp product launches of new and innovative products in the
second half of 2015 after satisfying on June 23, 2015 the bank covenant defaults of our senior credit facility, and a continuing
challenging media environment to purchase cost effective advertisement in the USA, our largest product distribution market. The
fair value of Goodwill associated with the operating and reporting units was estimated using a combination of Income and Market
Approach methodologies to valuation. The Income method of valuation explicitly recognizes the current value of future economic
benefits developed by discounting future net cash flows to their present value at a rate the reflects both the current return
requirements of the market and the risks inherent in the market. The Market approach measures the value of an asset through the
analysis of recent sales or offerings of comparable property. Our business was organized into three operating and reporting units
which were defined as Consumer, Physician Recurring, and Professional Equipment. Upon completion of our annual goodwill impairment
analysis as of December 31, 2015 the Company recorded an impairment of Consumer segment goodwill in the amount of $15,654 and
an impairment of Physician Recurring segment goodwill of $876. Upon completion of our goodwill impairment analysis in connection
with the transaction with ICTV Brands, as of December 31, 2016 the Company recorded an impairment of the entire remaining balance
of goodwill (allocated to consumer segment) in the amount of $2,257. Such determination was based on the market approach. |
| Accrued Warranty Costs | Accrued Warranty Costs The Company offered a standard warranty on
product sales generally for a one to two-year period. The Company provided for the expected cost of estimated future warranty claims
on the date the product is sold. Total accrued warranty was included in other accrued liabilities on the balance sheet. The activity
in the warranty accrual during the years ended December 31, 2016 and 2015 is summarized as follows:
December 31,
2016 2015
Accrual at beginning of year $ 330 $ 529
Additions charged to warranty expense 56 130
Expiring warranties (293 ) (329 )
Claims satisfied - -
Total 93 330
Less: current portion (93 ) (330 )
Long term accrued warranty $ 0 $ 0 For extended warranty on the consumer products,
see Revenue Recognition |
| Revenue Recognition | Revenue Recognition The Company recognizes revenues from the product
sales when the following four criteria have been met: (i) the product has been delivered and the Company has no significant remaining
obligations; (ii) persuasive evidence of an arrangement exists; (iii) the price to the buyer is fixed or determinable; and (iv)
collection is reasonably assured. Revenues from product sales are recorded net of provisions for estimated chargebacks, rebates,
expected returns and cash discounts. The Company ships most of its products FOB
shipping point, although from time to time certain customers, for example governmental customers, will be granted FOB destination
terms. Among the factors the Company takes into account when determining the proper time at which to recognize revenue are (i)
when title to the goods transfers and (ii) when the risk of loss transfers. Shipments to distributors or physicians that do not
fully satisfy the collection criteria are recognized when invoiced amounts are fully paid or fully assured and included in deferred
revenues until that time. For revenue arrangements with multiple deliverables
within a single, contractually binding arrangements (usually sales of products with separately priced extended warranty), each
element of the contract is accounted for as a separate unit of accounting when it provides the customer value on a stand-alone
basis and there is objective evidence of the fair value of the related unit. With respect to sales arrangements under which
the buyer has a right to return the related product, revenue is recognized only if all the following conditions are met: the price
is fixed or determinable at the date of sale; the buyer has paid, or is obligated to pay and the obligation is not contingent on
resale of the product; the buyer’s obligation would not be changed in the event of theft or physical destruction or damage
of the product; the buyer has economic substance; the Company does not have significant obligations for future performance to directly
bring about resale of the product by the buyer; and the amount of future returns can be reasonably estimated. The Company provides a provision for product
returns based on the experience with historical sales returns, in accordance with ASC Topic 605-15 with respect to sales of product
when a right of return exists. Reported revenues are shown net of the returns provision. Such allowance for sales returns is included
in Other Accrued Liabilities Note 9 Deferred revenue includes amounts received
with respect to extended warranty maintenance, repairs and other billable services and amounts not yet recognized as revenues.
Revenues with respect to such activities are deferred and recognized on a straight-line basis over the duration of the warranty
period, the service period or when service is provided, as applicable to each service. |
| Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling fees billed to customers
are reflected as revenues while the related shipping and handling costs are included in selling and marketing expense. To date,
shipping and handling costs have not been material. |
| Advertising Costs | Advertising Costs Advertising costs are charged to expenses
as incurred. Advertising expenses amounted to approximately $12 and $33 for the years ended December 31, 2016 and 2015, respectively. |
| Derivatives | Derivatives The Company applies the provisions of Accounting
Standards Codification (“ASC”) Topic 815, Derivatives and Hedging From time to time the Company carries out transactions
involving foreign exchange derivative financial instruments (mainly forward exchange contracts) which are expected to be paid with
respect to forecasted expenses of the Israeli subsidiary (Radiancy) denominated in Israeli local currency (NIS) which is different
than its functional currency. However, during 2016 and 2015, such activity was limited. Such derivatives were not designated as hedging
instruments, and accordingly they were recognized in the balance sheet at their fair value, with changes in the fair value carried
to the Statement of Comprehensive (Loss) Income and included in interest and other financing income (expenses), net. At December 31, 2016, the balance of such
derivative instruments amounted to approximately $0 in liabilities and approximately $0 were recognized as financing loss in the
Statement of Comprehensive (Loss) Income during the year ended that date. At December 31, 2015, the balance of such derivative
instruments amounted to approximately $0 in assets and approximately $171 were recognized as financing income in the Statement
of Comprehensive (Loss) Income during the year ended that date. |
| Income Taxes | Income Taxes The Company accounts for income taxes using
the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between
the financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected
to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly,
a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be
realized. The Company or its subsidiaries may incur additional
tax liabilities in the event of an intercompany dividend distribution or a deemed dividend distribution under the U.S. income tax
law and regulations. Prior to 2014, it was the Company’s policy not to cause a distribution of dividends which would generate
an additional tax liability to the Company. During 2014 and 2015, the Company’s affiliates borrowed funds from the subsidiary
in Israel. These borrowings resulted in a large deemed distribution taxable in the U.S. Furthermore, management can no longer represent
that the earnings of its non U.S. subsidiaries will remain permanently invested outside the U.S. Therefore, beginning in 2014,
the Company has provided deferred taxes on the undistributed earnings of its non U.S. subsidiaries. Taxes, which would apply in
the event of disposal of investments in subsidiaries, have not been taken into account in computing the deferred taxes, as it is
the Company’s policy to hold these investments, not to dispose of them. The Company accounts for uncertain tax positions
in accordance with an amendment to ASC Topic 740-10, Income Taxes Accounting for Uncertainty in Income Taxes), In the years ended December 31, 2015 and 2016,
the Company determined that the liability for unrecognized tax benefits could suitably be extinguished by application of net operating
loss carryforwards and carrybacks, with any residual impact arising as a liability in 2015 and 2016 that has been duly provided
for. |
| Concentration of credit risks | Concentrations of
credit risk Financial instruments which subject the Company
to concentrations of credit risk consist primarily of cash and cash equivalents, derivative (assets), accounts receivable and restricted
deposits. The carrying amounts of these instruments approximate fair value due to their short-term nature. The Company deposits
cash and cash equivalents and short term deposits in major financial institutions in the US, UK, Brazil and in Israel. The Company
performs periodic evaluations of the relative credit standing of these institutions. The Company is of the opinion that the credit
risk in respect of these balances is immaterial. In addition, the Company performs an ongoing credit evaluation and establishes
an allowance for doubtful accounts based upon factors surrounding the credit risk of customers (see also Accounts receivable Most of the Company’s
sales are generated in North America and Asia Pacific, to a large number of customers. Management periodically evaluates the collectability
of the trade receivables to determine the amounts that are doubtful of collection and determine a proper allowance for doubtful
accounts. Accordingly, the Company’s trade receivables do not represent a substantial concentration of credit risk. |
| Contingencies | Contingencies The Company and its subsidiaries are involved
in certain legal proceedings that arise from time to time in the ordinary course of its business. Except for income tax contingencies,
the Company records accruals for contingencies to the extent that the management concludes that the occurrence is probable and
that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. |
| Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes earnings (net loss) per
share in accordance with ASC Topic. 260, Earnings per share. Basic and diluted loss per common share was
calculated using the following weighted average shares outstanding for the years ended December 31, 2016 and 2015:
December 31,
2016 2015
Weighted average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding 4,171,549 4,049,518
Dilutive effect of stock options and warrants - -
Diluted number of common and common stock equivalent shares outstanding 4,171,549 4,049,518 Diluted earnings (loss) per share for each
of the years ended December 31, 2016 and 2015 exclude the impact of common stock options, warrants and unvested restricted stock
totaling 327,900, and 473,210 shares, respectively, as the effect of their inclusion would be anti-dilutive. This table has been
updated to reflect the one for five reverse stock split effected September 23, 2016. |
| Impairment of Long-Lived Assets and Intangibles | Impairment of Long-Lived Assets and Intangibles Long-lived assets, such as property and equipment,
and definite-lived intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset (or group of assets) may not be recoverable. Impairment test is applied at the lowest
level where there are identifiable independent cash flows, which may involve a group of assets. Recoverability of assets to be held and used
(or group of assets) is measured by a comparison of the carrying amount of an asset to the undiscounted cash flows expected to
be generated by the asset. If an asset is determined to be impaired, an impairment charge is recognized in the amount by which
the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the
balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated.
The assets and liabilities of a disposed group classified as discontinued operations are presented separately in the appropriate
asset and liability sections of the balance sheet. Indefinite-life intangible assets are tested
for impairment, on an annual basis or more often, when triggering events indicate that it is more likely than not that the asset
is impaired, by comparing the fair value of the asset with its carrying amount. If the carrying amount of the intangible asset
exceeds its fair value, an impairment loss is recognized in the amount of that excess. Subsequent reversal of a previously recognized
impairment loss is prohibited. Pursuant to ASC 360 the Company tested the
long-lived assets and determined that changes in circumstances indicated that its carrying value may not be recoverable. The carrying
amount of the assets is considered recoverable if it exceeds the sum of undiscounted cash flows expected from the use or eventual
disposition of the asset. As of December 2015 and in connection with its annual budgeting process, the Company determined its acquired
intangible assets indicated that the cash flows related to the acquired assets were substantially riskier and subject to shortfalls
in revenues and profits relative to original expectations. The Company’s internal operating forecast has been revised downward
in terms of revenue growth and profitability for the foreseeable future. The analysis entailed comparing the carrying amount of
the long-lived assets as of December 31, 2015 with the sum of their respective projected undiscounted cash flows. For the long
lived assets where carrying amount exceeded the projected undiscounted cash flows, the Company recognized and recorded an impairment
of Physician Recurring segment intangibles for its trademark, tradename, and customer relationships in the amount of $3,527 and
licensed technology in the amount of $1,424 based on the amounts the carrying amounts exceeded the fair value. Upon completion
of our goodwill impairment analysis in connection with the pending transaction with ICTV Brands, as of December 31, 2016 the Company
recorded an impairment of the entire remaining balance of Consumer segment goodwill in the amount of $2,257. In connection with the
pending transaction with ICTV Brands, as of December 31, 2016, the Company recorded an impairment of the Consumer segment intangibles
for its entire remaining Licensed Technology balance in the amount of $1,261. |
| Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation
in accordance with ASC Topic 718, Compensation – Stock Compensation |
| Treasury Stock and Repurchase of Common Stock | Treasury Stock and Repurchase of Common
Stock Shares held by the Company are presented as
a reduction of equity, at their cost to the Company as treasury stock, until such shares are retired and removed from the account. |
| Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, The FASB issued Accounting Standard
Update 2014-09 , Revenue from Contracts with Customers (Topic 606) ASU 2014-09 outlines a single comprehensive
model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance,
including industry-specific guidance. ASU 2014-09 also requires entities to disclose sufficient information, both quantitative
and qualitative, to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and
cash flows arising from contracts with customers. An entity should apply the amendments in this
ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented with a possibility to elect
certain practical expedients, or, 2. Retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at
the date of initial application. If an entity elects the latter transition method, it also should provide certain additional disclosures. For a public entity, the amendments in ASU
2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting
period (the first quarter of fiscal year 2018 for the Company). Early application is not permitted. The Company is in the process
of assessing the impact, if any, of ASU 2014-09 on its consolidated financial statements. In August 2014, the FASB issued Accounting
Standards Update 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties
about an Entity’s Ability to Continue as a Going Concern The amendments in ASU 2014-15 are effective
for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application
is permitted. In July, 2015, The FASB issued Accounting Standards
Update No. 2015-11 , Simplifying the Measurement of Inventory (Topic 330) In February, 2016, the FASB issued its new
lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees
will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:
1. A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted
basis; and, 2. 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. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting
model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback
transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with
a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning
after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year Company).
Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors
(for sales-type, direct financing, and operating leases) must apply 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. The modified
retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period
presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is in the process of assessing
the impact, if any, of ASU 2016-02 on its consolidated financial statements. In November 2015, the FASB has issued Accounting
Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes how
deferred taxes are classified on organizations’ balance sheet. The ASU eliminates the current requirement for organizations
to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, all deferred
tax assets and liabilities will be required to be classified as noncurrent.The amendments apply to all organizations that present
a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods
beginning after December 15, 2016, and interim periods within those annual periods (i.e., in the first quarter of 2017 for calendar
year-end companies).Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period.The
guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively (i.e., by reclassifying
the comparative balance sheet). If applied prospectively, entities are required to include a statement that prior periods were
not retrospectively adjusted. If applied retrospectively, entities are also required to include quantitative information about
the effects of the change on prior periods. The Company does not believe this ASU will have a significant impact on its consolidated
financial statements. |
