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 | OPTIBASE LTD |
Entity Central Index Key | 1,077,618 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 5,133,631 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 23,806 | $ 22,902 |
Trade receivables (net of allowance for doubtful accounts of $118 and $154 at December 31, 2015 and 2014, respectively) | 177 | 286 |
Other accounts receivable and prepaid expenses | 318 | 1,396 |
Total current assets | 24,301 | 24,584 |
LONG-TERM INVESTMENTS: | ||
Long-term deposits | 2,670 | 54 |
Investments in companies and associates | 20,663 | 7,553 |
Total long-term investments | 23,333 | 7,607 |
PROPERTY AND OTHER ASSETS, NET | ||
Real estate property, net | 214,840 | 185,204 |
Other assets, net | 470 | 609 |
Total property, equipment and other assets | 215,310 | 185,813 |
Total assets | 262,944 | 218,004 |
CURRENT LIABILITIES: | ||
Current maturities of long term loans and bonds | 8,535 | 2,401 |
Other accounts payable and accrued expenses | $ 3,297 | 4,991 |
Other short-term liabilities | 539 | |
Total liabilities attributed to discontinued operations | $ 2,109 | 2,153 |
Total current liabilities | $ 13,941 | $ 10,084 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
LONG-TERM LIABILITIES: | ||
Deferred tax liabilities | $ 14,178 | $ 14,237 |
Land lease liability, net | 6,412 | $ 6,528 |
Other Long-Term Liabilities | 264 | |
Long term loans, net of current maturities | 140,082 | $ 110,080 |
Long term bonds, net of current maturities | 12,483 | |
Total long-term liabilities | 173,419 | $ 130,845 |
SHAREHOLDERS' EQUITY : | ||
Share capital - Ordinary Shares of NIS 0.65 par value - Authorized: 6,000,000 shares at December 31, 2015 and 2014; Issued: 5,183,525 shares at December 31, 2015 and 2014; Outstanding: 5,133,631 and 5,127,631 shares at December 31, 2015 and 2014, respectively | 988 | 988 |
Additional paid-in capital | 137,961 | 137,898 |
Treasury shares : 49,895 and 55,895 shares at December 31, 2015 and 2014, respectively | (354) | (554) |
Accumulated other comprehensive income (loss) | (1,906) | (1,221) |
Accumulated deficit | (80,905) | (79,672) |
Total shareholders' equity of Optibase Ltd. | 55,784 | 57,439 |
Non-controlling interests | 19,800 | 19,636 |
Total shareholders' equity | 75,584 | 77,075 |
Total liabilities and shareholders' equity | $ 262,944 | $ 218,004 |
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] | ||||
Allowance for doubtful accounts | $ | $ 118 | $ 154 | ||
Ordinary Shares, par value per share | ₪ / shares | ₪ 0.65 | ₪ 0.65 | ||
Ordinary Shares, shares authorized | 6,000,000 | 6,000,000 | ||
Ordinary Shares, shares issued | 5,183,525 | 5,183,525 | ||
Ordinary Shares, shares outstanding | 5,133,631 | 5,127,631 | ||
Treasury shares, shares | 49,895 | 55,895 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Fixed income from real estate rent | $ 15,273 | $ 13,938 | $ 13,711 |
Costs and expenses: | |||
Cost of real estate operations | 2,958 | 2,777 | 2,199 |
Real estate depreciation and amortization | 3,925 | 3,813 | 3,369 |
General and administrative | 1,849 | $ 2,167 | $ 1,870 |
Other operating costs | 2,352 | ||
Total costs and expenses | $ 11,084 | $ 8,757 | $ 7,438 |
Gain on sale of operating properties | 2,709 | ||
Operating income | $ 4,189 | 7,890 | $ 6,273 |
Other income | 429 | 394 | 384 |
Financial expenses, net | (1,807) | (1,151) | (1,343) |
Income before taxes on income | 2,811 | 7,133 | 5,314 |
Taxes on income | (1,609) | (1,502) | (1,518) |
Equity share in losses of associates, net | (31) | (186) | (172) |
Net income | 1,171 | 5,445 | 3,624 |
Net income attributable to non-controlling interest | 2,239 | 2,106 | 2,159 |
Net income (loss) attributable to Optibase Ltd. | $ (1,068) | $ 3,339 | $ 1,465 |
Net earnings per share: | |||
Basic and diluted net earnings (loss) per share | $ (0.21) | $ 0.65 | $ 0.38 |
Weighted average number of shares used in computing basic net earnings per share: | 5,133,024 | 5,126,616 | 3,822,032 |
Weighted average number of shares used in computing diluted net earnings per share: | 5,133,024 | 5,131,072 | 3,825,610 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,171 | $ 5,445 | $ 3,624 |
Foreign currency translation adjustments | (467) | $ (5,325) | $ 1,477 |
Financial liability related to hedging | (264) | ||
Other comprehensive income | 440 | $ 120 | $ 5,101 |
Net earnings attributable to non-controlling interests | (2,239) | (2,106) | (2,159) |
Other comprehensive income (loss) attributable to non-controlling interests | 46 | 2,265 | (624) |
Comprehensive income (loss) attributable to Optibase LTD. | $ (1,753) | $ 279 | $ 2,318 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total Shareholders' Equity of Optibase Ltd. [Member] | Non-controlling Interests [Member] | Total |
Balance at Dec. 31, 2012 | $ 744 | $ 130,824 | $ (821) | $ 986 | $ (84,259) | $ 47,474 | $ 19,078 | $ 66,552 |
Issuance of ordinary shares | $ 244 | 6,909 | 7,153 | 7,153 | ||||
Stock-based compensation related to options and unvested shares | 118 | $ 118 | $ 118 | |||||
Issuance of treasury shares upon vesting of shares | $ (26) | $ 133 | $ (107) | |||||
Other comprehensive income/loss | $ 853 | $ 853 | $ 624 | $ 1,477 | ||||
Net income | $ 1,465 | 1,465 | 2,159 | 3,624 | ||||
Balance at Dec. 31, 2013 | $ 988 | $ 137,825 | $ (688) | $ 1,839 | $ (82,901) | 57,063 | $ 21,861 | 78,924 |
Stock-based compensation related to options and unvested shares | 97 | $ 97 | $ 97 | |||||
Issuance of treasury shares upon vesting of shares | $ (24) | $ 134 | $ (110) | |||||
Dividend distribution | $ (2,066) | $ (2,066) | ||||||
Other comprehensive income/loss | $ (3,060) | $ (3,060) | (2,265) | (5,325) | ||||
Net income | $ 3,339 | 3,339 | 2,106 | 5,445 | ||||
Balance at Dec. 31, 2014 | $ 988 | $ 137,898 | $ (554) | $ (1,221) | $ (79,672) | 57,439 | $ 19,636 | 77,075 |
Stock-based compensation related to options and unvested shares | 98 | $ 98 | $ 98 | |||||
Issuance of treasury shares upon vesting of shares | $ (35) | $ 200 | $ (165) | |||||
Dividend distribution | $ (2,029) | $ (2,029) | ||||||
Other comprehensive income/loss | $ (685) | $ (685) | (46) | (467) | ||||
Net income | $ (1,068) | (1,068) | 2,239 | 1,171 | ||||
Balance at Dec. 31, 2015 | $ 988 | $ 137,961 | $ (354) | $ (1,906) | $ (80,905) | $ 55,784 | $ 19,800 | $ 75,584 |
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 income | $ 1,171 | $ 5,445 | $ 3,624 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | $ 3,925 | 3,813 | $ 3,369 |
Gain on sale of real estate | (2,709) | ||
Stock-based compensation related to options and unvested shares | $ 98 | 97 | $ 118 |
Decrease (Increase) in trade receivables | 111 | (61) | (134) |
Equity share in losses of associates, net | 31 | 186 | 172 |
Increase (decrease) in deferred tax liabilities | $ (48) | $ (1,577) | 44 |
Decrease in other long-term liabilities | $ (1,254) | ||
Decrease in other short-term liabilities | $ (538) | $ (944) | |
Decrease in land lease liabilities | (109) | (187) | $ (91) |
Decrease (increase) in other accounts receivable and prepaid expenses | 1,070 | (1,174) | 79 |
Increase (decrease) in accrued expenses and other accounts payable | (1,687) | 1,737 | 1,615 |
Net cash provided by continuing operations | 4,024 | 4,626 | 7,542 |
Net cash provided by (used in) discontinued operations | (44) | 693 | (123) |
Net cash provided by operating activities | $ 3,980 | 5,319 | 7,419 |
Cash flows from investing activities: | |||
Proceeds from (investment in) long-term lease deposits | 7 | (11) | |
Investment in real estate property | $ (2,215) | (1,093) | $ (5,795) |
Sale of real estate property, net | 6,169 | ||
Decrease (increase) in restricted cash | $ 144 | $ (10) | |
Proceeds from (investments in) associates | $ (13,142) | $ 83 | |
Increase in other long term deposits | (2,616) | ||
Acquisition of Optibase Bavaria (c) | (31,473) | ||
Net cash provided by (used in) investing activities | (49,446) | $ 5,227 | $ (5,733) |
Cash flows from financing activities: | |||
Repayment of long term bank loans | (2,811) | $ (2,599) | $ (2,580) |
Proceeds from bank loan | 36,969 | ||
Proceeds from issuance of Long term bonds | 15,045 | ||
Dividend distribution | (2,029) | $ (2,066) | |
Net cash provided by (used in) financing activities | 47,174 | (4,665) | $ (2,580) |
Exchange differences on balances of cash and cash equivalents | (804) | (1,790) | 563 |
Increase (decrease) in cash and cash equivalents | 904 | 4,091 | (331) |
Cash and cash equivalents at the beginning of the year | 22,902 | 18,811 | 19,142 |
Cash and cash equivalents at the end of the year | 23,806 | 22,902 | 18,811 |
Supplemental cash flow activities: | |||
Taxes paid | 3,971 | 27 | 875 |
Interest paid | $ 1,795 | 2,109 | $ 2,702 |
Significant non-cash transactions: | |||
Sale of real estate property | $ 105 | ||
Purchase of investments in consideration of issue of shares | $ 7,153 | ||
Acquisition of Optibase Bavaria: | |||
Real estate property | $ 31,399 | ||
Other assets, net | 74 | ||
Cash paid by the company | $ 31,473 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Optibase Ltd. (the "Company") was incorporated and commenced operations in 1990. During 2009 the Company entered into the fixed-income real estate sector after an acquisition of a commercial building in Switzerland. Until the sale of its video solutions business to VITEC Multimedia ("Vitec") in July 2010 (see Note 1d below), the Company and its U.S subsidiary, Optibase Inc., provided equipment for a wide range of professional video applications in the Broadband IPTV, Broadcast, Government, Enterprise and Post-production markets. (collectively, the "Video Activity"). Following the sale of the Video Activity, the Company's only operation is the fixed-income real-estate. As of December 31, 2015, the Company manages its activity through three active subsidiaries: Optibase Inc. in the United States which was incorporated in 1991 ("Optibase Inc."), Optibase Real Estate Europe SARL ("Optibase SARL") in Luxembourg which was incorporated in October 2009, and OPCTN SA, a Luxembourg company owned 51% by the Company which was incorporated in February 2011 ("Subsidiaries"), (collectively, the "Group"). b. Acquisitions and investments in associates: 1. Luxury suite condominium Miami, Florida: On April 9, 2013 and on August 22, 2013, the Company through its subsidiary Optibase Inc. acquired two luxury penthouses located in the Marquis Residence in Miami and one penthouse located in the Ocean One condominium in Sunny Isles Beach in Miami Beach, Florida, respectively, in a cash consideration for a purchase price of approximately $ 4,800. 2. Condominium units in Miami Beach, Florida: On December 31, 2013 following the approval of the Company's audit committee, board of directors and the Company's shareholders, the Company, through its subsidiary Optibase Inc., completed the purchase of 12 residential units in the Flamingo South Beach One Condominium and the Continuum on South Beach condominium, both located in Miami Beach, Florida from two private companies indirectly controlled by the Company's controlling shareholder (the "seller") for an aggregate net consideration of $ 7,153, net following the set off of rental income of one unit for a period of three years to the seller, representing the fair value of 1.31 million new ordinary shares of the Company issued to the seller. 3. Sell of condominium units in Miami Beach, Florida: On September 17, 2014 the Company, through its subsidiary, Optibase Inc. sold 11 residential condominium units located in Florida. The total consideration was amounted to $ 6,411 and was paid at full on closing during October, 2014. 4. Retail portfolio in Bavaria, Germany: On December 18, 2014 the Company through (“Optibase Bavaria”), entered into a Purchase Agreement with an unrelated third party to acquire a retail portfolio of twenty-seven Commercial properties in, Germany (the "Retail Portfolio in Germany"). The Retail Portfolio in Germany represents a homogenous retail portfolio in established retail locations, it has approximately 37,000 square meters of total rental space. The largest tenant in the Retail Portfolio in Germany is EDEKA, which currently leases 22 of the rental properties in the portfolio. In addition to the hypermarkets and supermarkets, smaller shops (such as bakeries and post offices) operate on several locations as subtenants of EDEKA. On June 2, 2015 the first stage of the transaction closing occurred and the Company the Company In addition to the purchase price, the Company incurred acquisition costs, including real estate transfer taxes of € 2,075 (approximately $ 2,352 during 2015) The portfolio purchase price has been allocated to real estate properties and other assets, net, in accordance with the Company's accounting policies for business combinations. USD Real estate property 31,399 Other assets, net 74 Total purchase price 31,473 5. 300 South Riverside Plaza, Chicago: On December 29, 2015, the company through its In addition to the Purchase Price, the Company incurred acquisition costs of approximately $242. c. The Company two major tenants accounted for 18% and 18%, 23% and 12% and 23% and 10% of the Company revenues in the years ended December 31, 2015, 2014 and 2013 respectively. No other tenants accounted for more than 10% of the company revenues. d. Sale of the Video Activity (discontinued operations): Until the sale of its video solutions business to VITEC Multimedia ("Vitec") in July 2010, the Company and its U.S subsidiary, Optibase Inc., provided equipment for a wide range of professional video applications in the Broadband IPTV, Broadcast, Government, Enterprise and Post-production markets. (collectively, the "Video Activity"). On March 16, 2010, the Company and its subsidiary, Optibase Inc., entered into an asset purchase agreement (the "Agreement") with Optibase Technologies Ltd. and Stradis Inc., wholly owned subsidiaries of S.A. Vitec (also known as Vitec Multimedia) (S.A. Vitec, Optibase Technologies Ltd. and Stradis Inc., collectively, "Vitec"). According to the Agreement, the Company sold to Vitec all of the assets and liabilities related to the Company's Video Solutions Business (the "Video Activity") for an aggregate consideration of $ 8,000. The closing of the transaction occurred on July 1, 2010. According to the Agreement, the Company and Vitec agreed on a price adjustment mechanism to the initial consideration, upon which, Vitec shall add or subtract to the consideration an amount equal to accounts receivable, net plus other receivables and prepaid expenses minus accounts payable and other payables, all as of the Closing date (the "Adjustment Amount"). The Adjustment Amount as calculated by the Company would be deposited by Vitec in escrow within five days from the closing date, to be released over a period of 12 months as Vitec collects amounts owed to the Company from customers. Vitec has refrained from depositing any amount in escrow which led to a dispute between the parties. See details in Note 11d(1). The liabilities of the Video activity for the years ended December 31, 2014 and 2015, which relates to the discontinued operations and presented in the consolidated balance sheets, are summarized as follows: Year ended December 31, 2015 2014 Liabilities: Other accounts payable and accrued expenses $ 2,109 $ 2,153 Total liabilities $ 2,109 $ 2,153 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Basis of presentation of the financial statements: The preparation of financial statements in conformity with U.S generally accepted accounting principles 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, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Functional currency, presentation currency and foreign currency: The functional currency of the Company is the U.S Dollar. The functional currencies of Optibase's subsidiaries are CHF, EUR and U.S dollar. The Company has elected to use U.S dollar as its reporting currency for all years presented. While the functional currency of the Company's subsidiaries in the United States is the U.S dollars, the functional currency of the subsidiaries in Switzerland and Germany is their lead currency, i.e. CHF and EUR. Since the Company's functional and reporting currency is the USD, the financial statements of Optibase Real Estate SARL and OPCTN S.A. has been translated into U.S. dollars. Assets and liabilities of these subsidiaries are translated at the year-end exchange rates and their statement of operations items are translated using the actual exchange rates at the dates on which those items are recognized. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income in shareholders' equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. d. Non-controlling interests: Non-controlling interests generally represent the portion of equity that the Company does not own in the consolidated entities. The Company accounts for and reports its non-controlling interests in accordance with the provisions required under the Consolidation Topic of the FASB ASC 810. Non-controlling interests are separately presented within the equity section of the consolidated balance sheets. The amounts of consolidated net earnings attributable to the Company and to the non-controlling interests are presented on the consolidated statement of operations. e. Cash equivalents: Cash equivalents include short-term, highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired. f. Property and equipment: Real estate and equipment are stated at cost net of accumulated depreciation. Costs include those related to acquisition, including building improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Years Building 25 - 63 Buildings' improvements 5 - 20 Condominium units 30 g. Long-lived assets including intangible assets: The Company and its subsidiarie'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 held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. The Company reviews assets on a component-level basis, which is the lowest level of assets for which there are identifiable cash flows that can be distinguished operationally and for financial reporting purposes. The carrying amount of the asset group was compared with the related expected undiscounted future cash flows to be generated by those assets over the estimated remaining useful life of the primary asset. In cases where the expected future cash flows were less than the carrying amounts of the assets, those assets were considered impaired and written down to their fair values. Fair value was established based on discounted cash flows. As of December 31, 2015, 2014 and 2013 no impairment losses have been identified. h. Investments in companies: Investments in non-marketable equity securities of companies in which the Company does not have control or the ability to exercise significant influence over their operation and financial policies are recorded at cost. The management evaluates investments in non-marketable equity securities as evidence of other-than temporary declines in value. When relevant factors indicate a decline in value that is other-than temporary the Company recognizes an impairment loss for the decline in value. i. Investments in associates: Associates are companies in which the Company has significant influence over the financial and operating policies without having control. The investment in associates is accounted for using the equity method of accounting. Under the equity method, the investment in associates is accounted for in the financial statements at cost plus changes in the Group's share of net assets, including other comprehensive income (loss) of the associates. The equity method is applied until the loss of significant influence or classification of the investment as non-current asset held-for-sale. The accounting policy in the financial statements of the associates has been applied consistently and uniformly with the policy applied in the financial statements of the Group. j. Intangibles assets: Intangible assets consist of above-market value of in-place leases that were recorded in connection with the acquisition of the properties. Intangible assets are amortized and accreted using the straight-line method over the term of the related leases. When a lease is terminated early, any remaining unamortized balances under lease intangible assets or liabilities are charged to earnings. k. Derivative instruments: The Company accounts for derivatives and hedging based on ASC No. 815, "Derivatives and Hedging". ASC No. 815 requires the Company to recognize all derivatives at fair value. The accounting for changes in the fair value of a derivative instrument (i.e., gains or losses) depends on whether it has been designated and qualified as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualified as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is recognized in earnings. As of December 31, 2015, the Company had outstanding hedging instruments in amount of $264. At times, the Company may use derivative instruments to manage exposure to variable interest rate risk. Occasionally, the Company enters into interest rate swaps to manage its exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. The Company generally enters into derivative instruments that qualify as cash flow hedges and it does not enter into derivative instruments for speculative purposes. l. Revenue recognition: The Company generates revenues from fixed income real-estate derived from its buildings held through its subsidiaries in Switzerland (Rümlang and Geneva), Germany and Miami FL. Rental income includes minimum rents which are recognized on an accrual basis over the terms of the related leases on a straight-line basis. Lease revenue recognition commences when the lessee is given possession of the leased space and there are no contingencies offsetting the lessee's obligation to pay rent. Revenue of maintenance expenses recoveries from the tenants for mainly electricity, heating and water is reported net from the related expenses. m. Contingencies: The Company periodically estimates the impact of various conditions, situations and/or circumstances involving uncertain outcomes to its financial condition and operating results. The Company accounts for contingent events as required by ASC 450 "Contingencies". ASC 450 defines a contingency as "an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur". Legal proceedings are a form of such contingencies. In accordance with ASC 450, accruals for exposures or contingencies are being provided when the expected outcome is probable. However, it is possible that future results of operations for any particular quarter or annual period could be materially affected by changes in the Company's assumptions, the actual outcome of such proceedings or as a result of the effectiveness of the Company strategies related to these proceedings. n. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, "Income Taxes" "ASC 740", prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of 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 and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized. ASC 740 clarifies the accounting for uncertainties in income taxes by establishing minimum standards for the recognition and measurement of tax positions taken or expected to be taken in a tax return. Under the requirements of ASC 740, the Company must review all of its tax positions and make a determination as to whether its position is more-likely-than-not to be sustained upon examination by regulatory authorities. If a tax position meets the more-likely–than-not standard, then the related tax benefit is measured based on a cumulative probability analysis of the amount that is more-likely-than-not to be realized upon ultimate settlement or disposition of the underlying issue. The Company policy is to accrue interest and penalties related to unrecognized tax benefits in its financial expenses. The Company believes that its tax positions are all highly certain of being upheld upon examination. As such, as of December 31, 2015 and 2014 the Company has not recorded a liability for uncertain tax positions. o. Concentrations of credit risk: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, accounts receivables and long-term lease deposits. Cash and cash equivalents are invested in U.S. dollar deposits with major banks in Israel, the United States, Switzerland and Germany. Cash and cash equivalents in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. Accounts receivable includes amounts billed to tenants and accrued expense recoveries due from tenants. The Company makes estimates of un-collectability from its accounts receivable using the specific identification method related to base rents, straight-line rent balances, expense reimbursements and other revenues. The Company also analyzes accounts receivable and historical bad debt levels, tenant credit-worthiness, payment history and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Accounts receivable are written-off when they are deemed to be uncollectible and the Company is no longer actively pursuing collection. The Company's reported net income is directly affected by the management's estimate of the collectability of accounts receivable. p. Earnings (loss) per share: Basic net earnings (losses) per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings (losses) per share is computed based on the weighted average number of Ordinary shares outstanding during each year, plus dilutive potential Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earning Per Share". Option and restricted shares that have been excluded from the calculations of diluted net income per share was 5,546 and 3,578 for the years ended December 31, 2014 and 2013, respectively. q. Accounting for stock-based compensation: ASC Topic 718 "Compensation - Stock Compensation" "ASC 718", requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company recognizes these compensation costs net of forfeiture rate and recognizes the compensation costs for only those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of stock options granted using the Black-Scholes- Merton option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility is calculated based upon actual historical stock price movements. The expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value was estimated at the date of grant using the following weighted average assumptions for the Black-Scholes model for the year ended December 31, 2011. During 2015 and 2014 there were no new grants. r. Treasury Shares: During the past years, the Company repurchased certain Ordinary shares on the open market and holds such shares as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction from the shareholders' equity. From time to time the Company reissues treasury shares under the stock purchase plan, upon exercise of option and upon vesting of restricted stock units. When treasury stock is reissued, the Company accounts for the re-issuance in accordance with ASC No. 505-30, "Treasury Stock" and charges the excess of the purchase cost, including related stock-based compensation expenses, over the re-issuance price to retained earnings. The purchase cost is calculated based on the specific identification method. In case the purchase cost is lower than the re-issuance price, the Company credits the difference to additional paid-in capital. s. Fair value of financial instruments: The carrying amounts of the Company's financial instruments, including cash and cash equivalents, other accounts receivable, trade payables, other accounts payable, and accrued liabilities, approximate fair value because of their generally short-term maturities. ASC 820 clarifies that 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. As a basis for considering such assumptions, ASC 820 establishes a three-level value hierarchy, which prioritizes the 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 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The 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. Swap instrument are measured at fair value under ASC 820 on a recurring basis as of December 31, 2015 and 2014. t. Comprehensive income: 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. u. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Companys consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. The Company still evaluating the effect that the updated standard will have on the Companys consolidated financial statements and related disclosures. 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 early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior periods have been retrospectively adjusted. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-period Adjustments." This new guidance requires an acquirer in a business combination to recognize adjustments to the provisional amounts that are identified during the measurement period to be reported in the period in which the adjustment amounts are determined. In addition, the effect on earnings of changes in depreciation, amortization and other items as a result of the change to the provisional amounts, calculated as if the accounting had been complete as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal periods beginning after December 15, 2015 and must be applied prospectively. Early adoption is permitted. The Company has not yet adopted ASU 2015-16 and do not expect the adoption of this guidance to have a material impact on the Companys consolidated financial position or results of operations. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, as part of its initiative to reduce complexity in accounting standards. To simplify presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update), which allows an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The updated standards are effective for financial statements issued for annual and interim periods beginning after December 15, 2015. The updated standards are not expected to materially impact the Companys financial position or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The ASU is expected to impact the Companys consolidated financial statements as the Company has certain operating and land lease arrangements for which the Company are the lessee. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company financial position or results of operations. In January 2016, the FASB issued ASC 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU makes the following targeted changes for financial assets and liabilities: i) requiring equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income; ii) simplifying the impairment assessment of equity securities without readily determinable fair values using a qualitative approach; iii) eliminating disclosure of the method and significant assumptions used to fair value instruments measured at amortized cost on the balance sheet; iv) requiring use of the exit price notion when measuring the fair value of instruments for disclosure purposes; v) for financial liabilities where the fair value option has been elected, requiring the portion of the fair value change related to instrument-specific credit risk (which includes a Company's own credit risk) to be separately reported in other comprehensive income; vi) requiring the separate presentation of financial assets and liabilities by measurement category and form of financial asset (liability) on the balance sheet or accompanying notes; and vii) clarifying that the evaluation of a valuation allowance on a deferred tax asset related to available-for-sale securities should be performed in combination with the entity's other deferred tax assets. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years Early adoption of item (v) above is permitted for financial statements (both annual and interim periods) that have not yet been issued. The Company have not determined when the Company will adopt item (v) above of this ASU. The Company will adopt the remaining provisions of the ASU on January 1, 2018. The Company are evaluating the impact of this ASU on Ambac's financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis (Topic 810), requiring entities to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The revised consolidation model: (1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (2) eliminates the presumption that a general partner should consolidate a limited partnership, (3) affects the consolidation analysis of reporting entities that are involved with VIEs, and (4) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. The updated standard is effective for financial statements issued for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The updated standard may be applied retrospectively or using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The adoption of this guidance is not expected to have an impact on the Companys financial statements and related disclosures. |
REAL ESTATE PROPERTY, NET
REAL ESTATE PROPERTY, NET | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
REAL ESTATE PROPERTY, NET | NOTE 3:- REAL ESTATE PROPERTY, NET Land Building Condominium units Currency translation adjustment Total Cost: At January 1, 2014 $ 26,486 $ 158,849 $ 22,309 $ 10,595 $ 218,239 Additions - 544 549 (19,202 ) (18,109 ) Disposals - - (3,643 ) - (3,643 ) At December 31, 2014 26,486 159,393 19,215 (8,607 ) 196,487 Additions 7,388 25,467 759 (359 ) 33,255 At December 31, 2015 33,874 184,860 19,974 (8,966 ) 229,742 Accumulated depreciation: At January 1, 2014 - 7,676 538 264 8,478 Depreciation charge for the year - 2,888 472 (477 ) 2,883 Disposals - - (78 ) - (78 ) At December 31, 2014 - 10,564 932 (213 ) 11,283 Depreciation charge for the year - 3,314 394 (89 ) 3,619 At December 31, 2015 - 13,878 1,326 (302 ) 14,902 Real estate property, net: At December 31, 2015 33,874 170,982 18,648 (8,664 ) 214,840 At December 31, 2014 $ 26,486 $ 148,829 $ 18,283 $ (8,394 ) $ 185,204 Estimated depreciation expenses by years are as follows: Year Estimated depreciation expenses 2016 $ 3,587 2017 3,587 2018 3,587 2019 3,587 2020 and thereafter 166,618 $ 180,966 |
OTHER ASSETS, NET
OTHER ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER ASSETS, NET | NOTE 4:- OTHER ASSETS, NET Above, below market value of in-place leases Currency translation adjustment Total Cost: At January 1, 2014 $ 1,784 $ 146 $ 1,930 Additions - (193 ) (193 ) Disposals (334 ) - (334 ) At December 31, 2014 1,450 (47 ) 1,403 Additions 74 (3 ) 71 At December 31, 2015 1,524 (50 ) 1,474 Accumulated depreciation: At January 1, 2014 752 37 789 Depreciation charge for the year 453 (114 ) 339 Disposals (334 ) - (334 ) At December 31, 2014 871 (77 ) 794 Depreciation charge for the year 217 (7 ) 210 At December 31, 2015 1,088 (84 ) 1,004 Other assets, net: At December 31, 2015 $ 436 $ 34 $ 470 At December 31, 2014 $ 579 $ 30 $ 609 Intangible assets consist of lease contracts with tenants deriving from the purchase of a building complex in Geneva in 2011 and purchase of r etail portfolio in Germany Year Estimated amortization expenses 2016 $ 217 2017 183 2018 27 2019 11 2020 and thereafter 32 $ 470 |
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 5:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2015 2014 Escrow (1) - $ 1,271 Prepaid expenses 131 49 Income receivable 109 7 Deposit 6 39 Others 72 30 $ 318 $ 1,396 (1) Deposit paid into an escrow account as part of the purchase agreement in connection with Retail Portfolio in Germany transaction. See Note 1b(4). |
LONG TERM DEPOSIT
LONG TERM DEPOSIT | 12 Months Ended |
Dec. 31, 2015 | |
LONG TERM DEPOSIT [Abstract] | |
LONG TERM DEPOSIT | NOTE 6:- LONG TERM DEPOSIT December 31, 2015 2014 Bonds deposit (1) $ 1,685 $ - Restricted account (2) 931 - Other 54 54 $ 2,670 $ 54 (1) Bonds deposit of one payment of principal and interest reserves. See Note 10. (2) Restricted account of 931 funded relates to an interest reserve for Miami Loan. See Note 9d. |
INVESTMENTS IN COMPANIES AND AS
INVESTMENTS IN COMPANIES AND ASSOCIATES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN COMPANIES AND ASSOCIATES | NOTE 7:- INVESTMENTS IN COMPANIES AND ASSOCIATES a. On August 16, 2012, the Company acquired through its subsidiary beneficial interests in Two Penn Center Plaza in Philadelphia, Pennsylvania. This investment is accounted for using the equity method of accounting as the Company's indirect beneficial interest in Two Penn Center Plaza is 19.66% and therefore is considered to be more than minor (more than 3 to 5 percent), the equity method was applied. December 31, 2015 2014 Invested in equity $ 4,025 $ 4,025 Accumulated net loss (504 ) (472 ) Total investment $ 3,521 $ 3,553 b. On December 31, 2012 the Company acquired through its subsidiary Optibase Inc. approximately 4% indirect beneficial interest in a portfolio of shopping centers located in Texas, USA in consideration for $ 4,000 which accounted for the cost method of accounting. The Company believes that its beneficial interests in Texas portfolio are considered to be so minor that they create virtually no influence over the operating and financial policies of the Real Estate Asset and therefore this investment accounted for cost method of accounting. c . On December 29, 2015, the company through its In addition to the Purchase Price, the Company acquisition costs of approximately $242. d. Investments in associates accounted for using the equity method of accounting: Summarized data of the financial statements of associates, unadjusted to the Company's percentage of holdings (*) December 31, 2015 2014 Assets $ 278 ,402 $ 65,408 Liabilities 337 ,599 56 ,595 Fixed income from real estate rent 11,215 10,393 Net income (loss) 97 (859 ) (*) The information presented does not include excess cost and goodwill. |
OTHER ACCOUNTS PAYABLE AND ACCR
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8:- OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2015 2014 Employees and payroll accruals $ 225 $ 195 Accrued expenses 671 748 Government (mainly tax provision) 1,311 3,580 Advance tenants payments 848 313 Tenant security deposits 119 98 Other 123 57 Total $ 3,297 $ 4,991 |
LONG TERM LOANS
LONG TERM LOANS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LONG TERM LOANS | NOTE 9:- LONG TERM LOANS a. On October 29, 2009, Optibase SARL received a mortgage loan (the "Loan") from a financial institution in Switzerland, in the amount of CHF 18,800 for the purpose of purchasing the real estate property located in Rümlang, Switzerland (the "Property"). The loan bears a variable interest rate based on current money and capital markets in Switzerland plus the bank's customary margins 0.8%. The financial institution may increase the margin at any time if creditworthiness of the borrower or quality of the property is impaired. Principal and interest of the loan are payable quarterly. The loans are repaid at a rate of CHF 376 per year. The mortgage loan may be repaid at any time with a three months prior written notice by the Company. The mortgage loan is governed by the laws of Switzerland and bears other terms and conditions customary for that type of mortgage loans . Maturities of the loan by years are as follows: Year ended December 31, 2016 (current maturity) $ 379 Long-term portion: 2017 379 2018 379 2019 379 2020 379 Thereafter 14,797 Total $ 16,313 b. On October 2011, OPCTN and Eldista entered into a CHF 100,000 bank loan refinancing with Credit Suisse for the above mentioned loan. Under the new financing agreement, Credit Suisse provided a new loan to OPCTN and Eldista which replaced the mortgage loan that Credit Suisse provided to Eldista. The loan bears a variable interest rate based on current money and capital markets in Switzerland plus the bank's customary margins, the combined interest margins rate is 0.83%. The loans are repaid at a rate of CHF 2,000 per year and are secured by a first mortgage over the property and by a pledge of Eldista's shares. Maturities of the loan by years are as follows: Year ended December 31, 2016 (current maturity) $ 2,018 Long-term portion: 2017 2,018 2018 2,018 2019 2,018 2020 2,018 Thereafter 83,109 Total $ 91,181 The Company is required to meet certain covenants under this mortgage loan. As of December 31, 2015, the Company met these covenants. c. Optibase Bavaria negotiated a loan agreement with a Deutsche Genossenschafts-Hypothekenbank Aktiengesellschaft ("DG HYP"), for the provision of a senior mortgage loan in the amount of up to Euro 21,000 of which the Company utilized Euro 20,000. The effective interest rate was closed at 2.15%. The loan is repaid in quarterly installments of EUR 105 each, up until April 30, 2020. The terms of the loan includes certain covenants, a debt service cover ratio requirement of between 130% and 110%, and a loan to value requirement of 70% in the first three years and 65% in the fourth and fifth years. As of December 31, 2015, the Company met these covenants. Maturities of the loan by years are as follows: Year ended December 31, 2016 (current maturity) $ 459 Long-term portion: 2017 459 2018 459 2019 459 2020 19,671 Total $ 21,048 d. On July 8, 2015, the Company subsidiary, Optibase Inc, entered into a loan agreement with City National Bank of Florida for a gross amount of $15,000 for the financing of certain condominium units the Company owns in Miami and Miami Beach, Florida. The loan was taken for a term of three (3) years, with an interest rate of Libor 30-day-rate plus 2.65%. Interest is paid monthly commencing August 1, 2015, and the principal is reduced in six-month intervals beginning July 2016. Loan issuance costs of $ 429 reported in the balance sheet as a direct deduction from the gross amount of the loan. The securities for the Loan include a restricted cash deposit of approximately $1,000 and mortgage spread over the assets the Company owns in Florida as mentioned above. The Company is required to meet certain covenants under this mortgage loan. As of December 31, 2015, the Company met these covenants. Year ended December 31, 2016 (current maturity) $ 3,117 Long-term portion: 2017 4,987 2018 6,553 Total $ 11,540 |
LONG TERM BONDS
LONG TERM BONDS | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Excluding Current Maturities [Abstract] | |
LONG TERM BONDS | NOTE 10:- LONG TERM BONDS In August 2015, the Company issued gross amount of NIS 60,000 (approximately $15,700 as of the issued date) in aggregate principal amount of Series A Bonds bearing annual fixed interest of 6.7% payable in in semi-annual installments on June 30 and on December 31 of each of the years 2015 through 2021, commencing on December 31, 2015 and ending on December 31, 2021. The principal will be repaid in semi-annual installments on June 30 and on December 31 of each of the years of 2016 through 2021, commencing on June 30, 2016 and ending on December 31, 2021. The bonds (principal and interest) are not linked to any currency or index. Debt issuance costs of $ 384 reported in the balance sheet as a direct deduction from the gross amount of the bonds according to Accounting Standards Update, or ASU, 2015-03 issued by the Financial Accounting Standards Board In April 2015. The Company elected to adopt this standard early, effective August 10, 2015. The debt issuance costs are amortized in accordance with the bonds payments. The Company is required to meet certain covenants under this bonds. As of December 31, 2015, the Company met these covenants. Maturities of the bonds by years are as follows: Year ended December 31, 2016 (current maturity) $ 2,562 Long-term portion: 2017 2,562 2018 2,562 2019 2,562 2020 2,562 Thereafter 2,235 Total $ 12,483 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Company and its subsidiaries facilities leased and motor vehicles leased under several operating lease agreements for different periods ending in 2026. Future minimum lease commitments under non-cancelable operating leases are as follows: Year ended December 31, 2016 $ 116 2017 117 2018 110 2019 108 2020 and thereafter 732 Total $ 1,183 b. Assets pledged as collateral: As collateral for the Company's loan mortgages, a fixed pledge has been placed on the Company's subsidiaries in Luxemburg shareholders' equity. See Note 9a. c. Office of the Chief Scientist commitments: Until the sale of the Video Activity the Company participated in programs sponsored by the Israeli Government and by the European Commission for the support of research and development activities. The Company was obligated to pay royalties to the Office of the Chief Scientist ("OCS"), in the amount of 3%-3.5% of the sales recorded from products and other related revenues generated from such projects, up to 100% of the grants received, linked to the U.S. dollar and for grants received after January 1, 1999 also bearing interest at the rate of LIBOR. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required. The Company is currently undergoing an audit by the OCS for royalties paid before the sale of the Companys business. As of December 31, 2015, the Company believes it has sufficient provisions to cover the outcome of such review process. The provision for the above commitments was recorded under liabilities attributed to discontinued operations as the Company has no further obligation to pay royalties on revenues generated by the Video Activity subsequent to its sale. d. Legal claim and 1. In connection with the sale of Video Activity (as further described in Note 1e) and as part of a dispute arose between Vitec and the Company, since October 2010 Vitec and the Company have filed several separate motions with the Tel-Aviv District Court, seeking, inter alia, fixed and temporary injunctions. The motions filed by both parties have been dismissed by the court and were transferred to arbitration proceedings, which were undergoing during the past three years and until February 27, 2014. On July 30, 2013, the final decision of the arbitrator regarding the arbitration proceedings against Vitec (the "Arbitration Award") was submitted to the parties. The arbitrator accepted the majority of the Company's claims whilst most of Vitec's claims were rejected. The Arbitration Award mentions that the Company acted in the ordinary course of business and Vitec's claims regarding injury to reputation, loss of profits and loss of business opportunities were dismissed out of hand. The arbitrator did award Vitec a total sum of $ 442. Regarding the costs of the arbitration and lawyers' fees, the Arbitrator awarded Vitec a total sum of $ 69 considering the fact that only a small portion of the claimed sum was granted to Vitec. After the Arbitration Award was given, the Company made efforts to execute the Arbitration Award with no further delay, in order to comply with the Arbitrator's decision and to avoid paying unnecessary interests. The Company didn't come to any understating with Vitec. Hence, on September 1, 2013, the Company submitted with the Tel-Aviv District Court a motion requesting the confirmation and validation of the Arbitration Award. On September 17, 2013, Vitec responded to the Company's motion by submitting a motion of its own, asking the Court to nullify some parts of the Arbitration Award, or alternatively ask the arbitrator to do so, mainly regarding sums received by the Company after the closing of the transaction. Vitec claimed that the Arbitration Award did not include final rulings regarding such sums. Vitec also claimed that the arbitrator made a calculating mistake in favor of the Company, in the amount of $ 400 which should be paid to Vitec. On February 27, 2014, the Court gave its final ruling. The Court rejected all of Vitec's claims, dismissed its motion to nullify the Arbitration Award and confirmed and validated the Arbitration Award in it's entirely. The Court also ruled that Vitec will bear the legal expenses of this proceeding including the costs of the translation of the Arbitration Award. Following the Court's ruling, the Company and Vitec instructed the court's treasury and ADAD Trust company Ltd. to release $ 200 and $ 1,000, respectively, deposited as Escrow Funds. On March 20, 2014, the funds were released and a net sum of $ 715 was transferred to the Company. 2. Personal Claim against Adv. Doron Afik: As part of the Agreement the Company, Vitec and Adv. Afik as trustee (the "Trustee") entered into the Consortium Escrow Agreement of March 16, 2010 (the "Consortium Agreement"). Under the Consortium Agreement, $ 300 of the consideration were held in escrow $ 100 per each EC Consortium Agreement to be transferred from the Company to Vitec under the Agreement. Due to the Trustee's refusal to transfer the escrow funds to the Company, the Company filed in June 2011, a statement of claim for damages of approximately $ 268 against the Trustee. On July 30, 2013, along with the Arbitration Award regarding the arbitration with Vitec, the Arbitrator gave his decision regarding the personal claim against Adv. Afik and Afik Counter Claim. The arbitrator chose to accept most of the Company's claims and rejected most of Adv. Afik's claims. The Arbitrator awarded Adv. Afik the sum of $ 36 only for damages caused by the lien imposed on Adv. Afik's bank accounts and $ 10 for legal expenses. Adv. Afik claims regarding libel were utterly rejected. The Company paid these amounts. Following the Court's ruling regarding the validation of the Arbitration Award, as mentioned above, the parties filed a motion to Court, with consent, to return the securities deposited by the Company during the imposition of the lien. On March 6, 2014 the court rendered its decision and ordered to return these escrow funds to the Company. 3. On October 26, 2014, the Company received a letter on behalf of two purported shareholders (the "Shareholders") demanding the Company to file a derivative claim against its controlling shareholder and directors and officers, according to procedures of the Companies Law and requesting discovery of internal documents. The demand alleges, among other things, breach of fiduciary duties by directors and officers with respect to the approval of the transaction to acquire condominium units in Miami Beach, Florida, (the "Transaction"). The Shareholders are seeking damages which were not specified in the letter allegedly caused to the Company by its controlling shareholder and its directors and officers. In accordance with the Companies Law. The Company presented the Shareholders, at their request, with certain materials in connection with the Transaction for their review. On May 12, 2015 the Company has been served with a motion to approve the filing of a derivative claim against its controlling shareholder, directors and CEO and against certain former controlling shareholder and directors, (the " ") The Claim alleges, among other things, a breach of fiduciary duties by the Company directors, officers and controlling shareholder, and an exploitation of a business opportunity by the Company current and former controlling shareholder with respect to certain private placements of the Company's shares to its controlling shareholder. The Claim further alleges, that such private placements constitute a prohibited distribution as the shares were issued for an unfair consideration. As a result of the above, the Applicants request the Court to allow them to continue with this derivative claim and ultimately to require all the defendants to pay the Company an aggregate amount of approximately $41,900, as well as required the Companies shareholder (current and former) to pay to the Company approximately $2,800 plus interest (for the exploitation of a business opportunity). The Applicants further require reimbursement of expenses, legal fees and award to the Applicants. On November 8, 2015, The Company has submitted its response to the Motion and Claim together with an expert opinion. The Company has raised several arguments against the Motion including, inter alia in-limine On December 9, 2015, a court hearing was held during which the court suggested the parties to reach a mutual agreement. The Company gave its consent to the proposed outline and the court ordered the parties to act accordingly. On January 4, 2016, the Applicants submitted an application for discovery of documents. On January 25, 2016, The Company has submitted a motion to dismiss the discovery's application. On March 29, 2016 the Applicants submitted an application to attach an expert opinion. A Pre-trial hearing is scheduled for July 7, 2016. At this preliminary stage the Company cannot provide an assessment as to the chances of the claim and the exposure to the Company. 4. On March 1, 2010, the Company's subsidiary in Luxembourg entered into an Option Agreement, (the "Option Agreement"), with Swiss Pro who introduced the Company the Rümlang property and facilitated the acquisition and financing of the commercial building acquired by the Company in October, 2009 in Rümlang, Switzerland. According to the Option Agreement, the Company's subsidiary granted Swiss Pro an option to purchase twenty percent (20%) of its share capital in consideration of CHF 315 for the option. The exercise price under the Option Agreement is calculated based on twenty percent (20%) of acquisition costs for the Rümlang Property plus interest and an adjustment for proceeds that are distributed to the shareholders. The shares that would be issued to Swiss Pro upon exercise of the option will not have voting rights and would be subject to transfer restrictions in favor of the Company. The option granted under the Option Agreement will expire within eight years from the entrance into the agreement, i.e.: on February 28, 2018. On May 19, 2015, The Company received a letter on behalf of Swiss Pro, demanding the Company to provide Swiss Pro with certain relevant data in connection with the option agreement. The Company sent a response letter on August 18, 2015 in which the Company rejected all allegations. On December 24, 2015 Swiss Pro sent another letter repeating its arguments and the Company sent its response to the letter on December 31, 2015. At this preliminary stage the Company cannot provide an assessment as to the chances of the arguments raised by Swiss Pro and the exposure to the Company 5. Eldista had a dispute with Swiss Pro Capital ("Swiss Pro"), a company organized under the Switzerland laws, arising from the consultancy agreement entered between the parties and dated May 19, 2011 (the "Consultancy Agreement"). The Consultancy Agreement stated that Swiss Pro would provide services to Eldista in exchange for the payment of a certain consultancy fee (the "Services"). Pursuant to the Consultancy Agreement, Eldista undertook to pay Swiss Pro a bonus in the manner calculated in the Consultancy Agreement. Pursuant to the Consultancy Agreement, Eldista had a right at any time following the second anniversary of the Consultancy Agreement, to elect to prepay to Swiss Pro the bonus in full by delivering written notice to Swiss Pro (the "Prepayment Notice") and by paying Swiss Pro the prepayment amount as calculated pursuant to the Consultancy Agreement. On July 14, 2013, Eldista delivered to Swiss Pro a prepayment notice calculating the prepayment amount based on the property appraisal concluding that no prepayment amount was due to Swiss Pro. On July 18, 2013 Swiss Pro delivered a notice to Eldista disputing such determination of the prepayment amount. On August 21, 2014 Eldista and Swiss Pro entered into a settlement agreement, according to which Eldista will pay Swiss Pro an agreed prepayment amount of CHF 400 as consulting fees in full settlement of all dispute between the parties and their affiliates regarding the Consultancy Agreement. Eldista 6. On April 16, 2015, the Company's subsidiary Eldista GmbH, filed a claim to the court in Switzerland in an amount of CHF 961 (approximately $1,000) due to damages and unpaid amounts from a specific tenant. Shortly thereafter, the tenant filed a counterclaim against Eldista GmbH in an amount of CHF 157 (approximately $171) for damages allegedly caused to it. The court suggested the parties to transfer to mediation proceedings which failed. At this time, testimonies hearings are taking place. At this stage, the Company cannot assess whether the court will receive Elista's or the tenant's arguments. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 12:- FAIR VALUE MEASUREMENTS a. Recurring fair value measurements: As of December 31, 2015 and 2014, the Company had an interest rate swap agreements for loan amounts of $ 21,632 and $ 74,019, respectively that are measured at fair value on a recurring basis. As of December 31, 2015 and 2014, the fair value of the interest rate swaps consisted of a liability of $ 264 and $ 539, respectively. The balance as of December 31, 2015 is included in long term liabilities in the Company consolidated balance sheet. The net unrealized income on the Company interest rate swaps was $ 264 for the year ended December 31, 2015 and is included in in the Company consolidated statements of operation. The fair value of the interest rate swaps is based on the estimated amount the Company would receive or pay to terminate the contract at the reporting date and is determined using interest rate pricing models and observable inputs. The balance as of December 31, 2014 is included in short term liabilities in the Company consolidated balance sheet. The net unrealized income on the Company interest rate swaps was $ 508 for the year ended December 31, 2014 and is included in financial expenses, net in the Company consolidated statements of operation. The fair value of the interest rate swaps is based on the estimated amount the Company would receive or pay to terminate the contract at the reporting date and is determined using interest rate pricing models and observable inputs. b. Valuation methods: In accordance with ASC 820, the Company measures its interest rate swap derivative instruments at fair value using the market approach valuation technique. The fair value of interest rate swap derivative instruments is classified within Level 2 value hierarchy, as the valuation inputs are based on quoted prices. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 13:- TAXES ON INCOME a. Corporate tax rates: The Israeli corporate tax rate was 26.5% in 2015 and 2014 and 25% in 2013. A company in Israel is taxable on its real (non-inflationary) capital gains at the corporate tax rate of 26.5% in the year of sale. Taxable income of the Company's subsidiary in Luxemburg, Switzerland and the United States is subject to the following tax rates: Year ended December 31, 2015 2014 2013 Luxemburg 29 % 29 % 29 % Switzerland 24 % 24 % 24 % United States 34 % 34 % 34 % Germany 16 % - - b. Tax assessments: The Company has final tax assessments through the tax year 2011. c. Deferred tax assets and liabilities: Deferred tax assets and liabilities mainly derive from the acquisitions of commercial buildings in Switzerland. The deferred taxes are computed at the average tax rate of 24%, based on the corporate income tax in Switzerland, which is the tax rate that will be in effect when the differences are expected to reverse. December 31, 2015 2014 Deferred tax assets: NOLs $ 28,417 $ 29,809 Lease provision 1,539 1,567 Swap instrument - 129 Mortgage loan 210 216 Reserves and allowances - 92 Deferred tax assets 30,166 31,813 Dferred tax liabilities: Land (5,327 ) (5,336 ) Building (10,504 ) (10,667 ) Other assets, net (96 ) (146 ) Reserves and allowances (163 ) - Deferred tax liabilities (16,090 ) (16,149 ) Valuation allowance (28,254 ) (29,901 ) Deferred tax liabilities, net $ (14,178 ) $ (14,237 ) d. Net operating losses carry-forward: Through December 31, 2015, Optibase Ltd. had net operating losses carry-forward for tax purposes in Israel of approximately $ 61 million which may be carried forward and offset against taxable income in the future, for an indefinite period. As of December 31, 2015, Optibase Inc. had U.S. federal net operating loss carry-forward of approximately $ 32 million that can be carried forward and offset against taxable income for 20 years, no later than 2033. Utilization of U.S. net operating losses may be subject to the substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986, and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. Based upon the weight of available evidence, which includes the Company's historical operating performance and the recorded cumulative net losses in all prior fiscal periods, the Company has provided a full valuation allowance against it Israeli and U.S deferred tax assets. e. Reconciliation of the theoretical tax expenses to the actual tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to the income of the Company and the actual tax expense as reported in the statements of operations is as follows: Year ended December 31, 2015 2014 2013 Income before taxes as reported $ 2,811 $ 7,133 $ 5,314 Theoretical tax benefit computed at the statutory rate (26.5% and 25% for the years 2015, 2014 and 2013, respectively) $ 745 $ 1,890 $ 1,329 Differences in tax rates on income deriving from foreign subsidiaries 5 14 (170 ) Tax adjustments in respect of currency translation 42 121 (203 ) Deferred taxes on losses and other temporary differences for which valuation allowance was provided 463 - 223 Realization of carry forward losses - (769 ) - Taxes for previous years 45 - - Other non-deductible expenses 309 246 339 Income tax expense $ 1,609 $ 1,502 $ 1,518 f. Income (loss) before taxes on income consists of the following: Year ended December 31, 2015 2014 2013 Domestic $ 1,218 $ (1,000 ) $ 328 Foreign 1,593 8,133 4,986 $ 2,811 $ 7,133 $ 5,314 g. Income tax expenses are comprised as follows: Year ended December 31, 2015 2014 2013 Current $ 1,648 $ 1,489 $ 1,397 Deferred (39 ) 13 121 $ 1,609 $ 1,502 $ 1,518 Domestic $ - $ - $ - Foreign 1,609 1,502 1,518 $ 1,609 $ 1,502 $ 1,518 h. As of December 31, 2015 and 2014 the Company has no liability for unrecognized income tax benefits, and there was no change in its liability for unrecognized income tax benefits during all years presented. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 14:- SHAREHOLDERS' EQUITY a. General: 1. The Ordinary shares of the Company are traded on the NASDAQ Global Market since April 1999 and on the Tel Aviv Stock Exchange Ltd. Since April 2015. Ordinary shares confer on their holders the right to receive notice to participate and vote in general meetings of the Company, the right to a share in excess assets upon liquidation of the Company and the right to receive dividends, if declared. 2. On December 31, 2013 following the approval of the Company board of directors and the approval of the Company shareholders, the Company issued a net sum of 1,300,580 ordinary shares in consideration for the purchase of twelve luxury condominium units in Miami Beach, Florida from a private companies indirectly controlled by Capri, The Company's controlling shareholder. See Note 1b(2). b. Stock options: In 1999, the Company adopted an Israeli Option Plan ("1999 Israeli option plan"), and a U.S. Option Plan ("1999 U.S. option plan") (collectively, the "1999 plans"). Under the terms of the above option plans, options may be granted to employees, officers, directors and consultants. The options generally become exercisable monthly over a four-year period, commencing one year after date of the grant, subject to the continued employment of the employee. The options generally expire no later than seven years from the date of the grant. In May 2003 the Company amended its 1999 Plan to provide for the grant of options to Israeli optionees under Section 102 of the Israeli Tax Ordinance. The exercise price of the options granted under the above mentioned plans may not be less than the nominal value of the shares into which such options are exercised. Any options, which are forfeited or cancelled before expiration, become available for future grants. The total number of options available for future grants as of December 31, 2015 was 482,722 . Year ended December 31, 2015 Amount Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at the beginning of the year 112,000 $ 8.65 3.01 Granted - Forfeited - Outstanding at the end of the year 112,000 $ 8.65 2.01 Exercisable options at the end of the year 112,000 $ 8.65 2.01 Options vested and expected to vest at end of year 112,000 $ 8.65 2.01 The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing stock value as of December 31, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. This amount may change based on the fair market value of the Company's stock. As of December 31, 2015 and 2014, the total intrinsic value of outstanding options was $ 0. As of December 31, 2015, the compensation cost related to options granted under the Company's stock option plans were fully recognized. c. Non-vested shares: In May 2006, the Board of Directors approved the adoption of the 2006 Israeli Incentive Compensation Plan (the "2006 Plan"). The 2006 Plan provides for the grant of options, restricted shares and restricted share units in accordance with various Israeli tax tracks. The Company currently uses the 2006 Plan for the grant of restricted shares only. The restricted shares are granted at no consideration and with a vesting schedule of two years (50% each year). The restricted shares are granted in accordance with the Israeli capital gains tax track. In November 2013 and in August 2014, the Company's board of directors approved the increase of 50,000 shares and 150,000 shares under the 2006 Plan. As of December 31, 2015 the pool consists of 260,000 Shares, where an aggregate sum of 183,690 ordinary shares has been reserved for issuance under the 2006 Plan, respectively. A summary of the status of the entity's non-vested shares as of December 31, 2015, and changes during the year ended December 31, 2015, is presented below: Non-vested shares Shares Weighted average grant date fair value Non-vested at January 1, 2015 10,000 $ 5.76 Granted 8,000 $ 7.32 Exercised (6,000 ) $ 5.76 Non-vested at December 31, 2015 12,000 $ 6.8 As of December 31, 2015, there was $ 15 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted to employees under the Plan. That cost is expected to be recognized over a period of up to two years. d. The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2015, 2014 and 2013, was comprised as follows: Year ended December 31, 2015 2014 2013 General and administrative $ 98 $ 97 $ 118 |
SELECTED STATEMENT OF OPERATION
SELECTED STATEMENT OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
SELECTED STATEMENT OF OPERATIONS DATA | NOTE 15:- SELECTED STATEMENT OF OPERATIONS DATA Financial income (expenses): Year ended December 31, 2015 2014 2013 Financial income: Interest $ 18 $ 3 $ 7 Remeasurement of derivatives 578 1,025 1,223 Foreign currency translation adjustments 255 - - 851 1,028 1,230 Financial expenses: Interest (2,658 ) (2,109 ) (2,486 ) Foreign currency translation adjustments - (70 ) (87 ) (2,658 ) (2,179 ) (2,573 ) $ (1,807 ) $ (1,151 ) $ (1,343 ) |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 16:- GEOGRAPHIC INFORMATION Summary information about geographic areas: The Company manages its business on a basis of one reportable segment (see Note 1 for a brief description of the Company activity). The data is presented in accordance with ASC 280, "Segment Reporting". Revenues in the table below are attributed to geographical areas based on the location of the end customers. The following presents total revenues for the years ended December 31, 2015, 2014 and 2013 and real estate property as of December, 31, 2015, 2014 and 2013: 2015 2014 2013 Real estate Real estate Real estate Total revenues property, net Total revenues property, net Total revenues property, net Switzerland $ 12,503 $ 165,371 $ 12,830 $ 166,921 $ 12,973 $ 187,990 Germany 1,914 30,820 - - - - United States 856 18,649 1,108 18,283 738 21,771 $ 15,273 $ 214,840 $ 13,938 $ 185,204 $ 13,711 $ 209,761 |
MAJOR SHAREHOLDERS AND RELATED
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | NOTE 17:- MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS a. Controlling shareholders: To the Company's knowledge there are no arrangements, the operation of which may at a subsequent date result in a change in control of the Company. To the best of The Company's knowledge, the Company's ordinary shares. b. Related party transactions: 1. On July 2013, following the Company audit committee and board of directors approved, in accordance with the Israeli Companies Regulations (Relieves for Transactions with Interested Parties) of 2000, the receipt of guarantees, (the "Guarantees"), from the Companys controlling shareholder or any affiliate thereof, or collectively, (the "Controlling Shareholder"), to financing institutions in connection with the Company subsidiaries' or affiliated companies' real estate and real estate related activities. The purpose of the receipt of the Guarantees is to increase the Company financial resources in order to expand the Company Real Estate Activities. The Guarantees will be provided by the Controlling Shareholder to financing institutions in for a credit or loan to be provided in the event the Company is unable to provide sufficient equity in connection with the Real Estate Activities. The Guarantees will be provided for credit or loan amounts that will not exceed $ 20,000 per year, effective as of July 18, 2013, and up to $ 60,000 for a three-year period. The Guarantees will be in effect for the entire duration of the credit agreement or loan facility. The Company will not bear any costs or expenses in connection with the provision of the Guarantees and will not indemnify the Controlling Shareholder in case such Guarantees are exercised.On May 26, 2015 the Company utilized the guaranty given by its controlling shareholder and drew a total of Euro 5,000 that was used to partially finance the closing of the Retail Portfolio in Germany transaction. The funds were drawn in a form of a monthly credit facility bearing a yearly rate of approximately 76 basis points (0.76%). On July 24, 2015 the Company covered the monthly credit facility in full. 2. On December 19, 2013, and following the approval of the Company's audit committee, compensation committee, board of directors, and the Company's shareholders the Company approved the compensation terms of Mr. Shlomo (Tom) Wyler, for his service as Chief Executive Officer of the Company's subsidiary Optibase Inc. The yearly gross base salary will be $ 170 as well as reimbursement of health insurance expenses of up to $ 24 per year, and including reimbursement of reasonable work-related expenses incurred up to $ 50 per year. 3. On December 19, 2013, and following the approval Of the Company's audit committee, board of directors, and the Company's shareholders approved the a service agreement between the Company and Mr. Reuwen Schwarz, currently serves also as a member of the Company’s board of directors, who is a relative of the beneficiaries of Capri, the Company's controlling shareholder, for the provision of real estate related consulting services in consideration for a monthly fee of € 4 plus applicable value added tax (if applicable) and reimbursement for expenses incurred up to € 12 per year. 4. On December 31, 2013 following the approval of the Company's audit committee, board of directors and the Company's shareholders, the Company, through its subsidiary Optibase Inc., completed the purchase of twelve (12) residential units in Flamingo South Beach One Condominium and the Continuum on South Beach Condominium, both located in Miami Beach, Florida from a private companies indirectly controlled by the Company's controlling shareholder (the "seller") for an aggregate net consideration of $ 7,153 following the set off of rental income of one unit for a period of three years to the seller, representing the fair value of 1.31 million new ordinary shares of the Company issued to the seller. 5. On October 22, 2014, following the approval by the Company audit committee and board of directors the Company shareholders approved the entrance into a registration rights agreement with Mr. Shlomo (Tom) Wyler and Capri, for the filing of a registration statement in order to register for resale all of the Companys Ordinary shares of held by them. As of December 31, 2015 registration has not been implemented yet. 6. On September 17, 2014, following the approval of the Company audit committee and board of directors, the company entered into a transaction to sell the eleven (11) Flamingo Units, to an unrelated third party, in consideration for an aggregate price of approximately $ 6.4 million. The transaction was conditioned on the purchaser's execution of a purchase and sale agreement to acquire an additional nineteen (19) condominium units located in the Flamingo Condominium from a company affiliated with the Companys controlling shareholder. Therefore, in the interest of caution, the Company treated the transaction as a transaction between a public company and another party, in which the company's controlling shareholder has personal interest. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18:- SUBSEQUENT EVENTS On January 4, 2016, as part of the motion to approve the filing of a derivative claim the applicants submitted an application for discovery of documents. On January 25, 2016, The Company has submitted a motion to dismiss the discovery's application. On March 29, 2016 the Applicants submitted an application to attach an expert opinion. A Pre-trial hearing is scheduled for July 7, 2016. See Note 11d(3). |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation of the financial statements | a. Basis of presentation of the financial statements: The preparation of financial statements in conformity with U.S generally accepted accounting principles 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, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Functional currency, presentation currency and foreign currency | b. Functional currency, presentation currency and foreign currency: The functional currency of the Company is the U.S Dollar. The functional currencies of Optibase's subsidiaries are CHF, EUR and U.S dollar. The Company has elected to use U.S dollar as its reporting currency for all years presented. While the functional currency of the Company's subsidiaries in the United States is the U.S dollars, the functional currency of the subsidiaries in Switzerland and Germany is their lead currency, i.e. CHF and EUR. Since the Company's functional and reporting currency is the USD, the financial statements of Optibase Real Estate SARL and OPCTN S.A. has been translated into U.S. dollars. Assets and liabilities of these subsidiaries are translated at the year-end exchange rates and their statement of operations items are translated using the actual exchange rates at the dates on which those items are recognized. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income in shareholders' equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. |
Non-controlling Interests | d. Non-controlling interests: Non-controlling interests generally represent the portion of equity that the Company does not own in the consolidated entities. The Company accounts for and reports its non-controlling interests in accordance with the provisions required under the Consolidation Topic of the FASB ASC 810. Non-controlling interests are separately presented within the equity section of the consolidated balance sheets. The amounts of consolidated net earnings attributable to the Company and to the non-controlling interests are presented on the consolidated statement of operations. |
Cash equivalents | e. Cash equivalents: Cash equivalents include short-term, highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired. |
Property and equipment | f. Property and equipment: Real estate and equipment are stated at cost net of accumulated depreciation. Costs include those related to acquisition, including building improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Years Building 25 - 63 Buildings' improvements 5 - 20 Condominium units 30 |
Long-lived assets including intangible assets | g. Long-lived assets including intangible assets: The Company and its subsidiarie'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 held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. The Company reviews assets on a component-level basis, which is the lowest level of assets for which there are identifiable cash flows that can be distinguished operationally and for financial reporting purposes. The carrying amount of the asset group was compared with the related expected undiscounted future cash flows to be generated by those assets over the estimated remaining useful life of the primary asset. In cases where the expected future cash flows were less than the carrying amounts of the assets, those assets were considered impaired and written down to their fair values. Fair value was established based on discounted cash flows. As of December 31, 2015, 2014 and 2013 no impairment losses have been identified. |
Investments in companies | h. Investments in companies: Investments in non-marketable equity securities of companies in which the Company does not have control or the ability to exercise significant influence over their operation and financial policies are recorded at cost. The management evaluates investments in non-marketable equity securities as evidence of other-than temporary declines in value. When relevant factors indicate a decline in value that is other-than temporary the Company recognizes an impairment loss for the decline in value. |
Investments in associates | i. Investments in associates: Associates are companies in which the Company has significant influence over the financial and operating policies without having control. The investment in associates is accounted for using the equity method of accounting. Under the equity method, the investment in associates is accounted for in the financial statements at cost plus changes in the Group's share of net assets, including other comprehensive income (loss) of the associates. The equity method is applied until the loss of significant influence or classification of the investment as non-current asset held-for-sale. The accounting policy in the financial statements of the associates has been applied consistently and uniformly with the policy applied in the financial statements of the Group. |
Intangible assets | j. Intangibles assets: Intangible assets consist of above-market value of in-place leases that were recorded in connection with the acquisition of the properties. Intangible assets are amortized and accreted using the straight-line method over the term of the related leases. When a lease is terminated early, any remaining unamortized balances under lease intangible assets or liabilities are charged to earnings. |
Derivative instruments | k. Derivative instruments: The Company accounts for derivatives and hedging based on ASC No. 815, "Derivatives and Hedging". ASC No. 815 requires the Company to recognize all derivatives at fair value. The accounting for changes in the fair value of a derivative instrument (i.e., gains or losses) depends on whether it has been designated and qualified as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualified as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is recognized in earnings. As of December 31, 2015, the Company had outstanding hedging instruments in amount of $264. At times, the Company may use derivative instruments to manage exposure to variable interest rate risk. Occasionally, the Company enters into interest rate swaps to manage its exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. The Company generally enters into derivative instruments that qualify as cash flow hedges and it does not enter into derivative instruments for speculative purposes. |
Revenue recognition | l. Revenue recognition: The Company generates revenues from fixed income real-estate derived from its buildings held through its subsidiaries in Switzerland (Rümlang and Geneva), Germany and Miami FL. Rental income includes minimum rents which are recognized on an accrual basis over the terms of the related leases on a straight-line basis. Lease revenue recognition commences when the lessee is given possession of the leased space and there are no contingencies offsetting the lessee's obligation to pay rent. Revenue of maintenance expenses recoveries from the tenants for mainly electricity, heating and water is reported net from the related expenses. |
Contingencies | m. Contingencies: The Company periodically estimates the impact of various conditions, situations and/or circumstances involving uncertain outcomes to its financial condition and operating results. The Company accounts for contingent events as required by ASC 450 "Contingencies". ASC 450 defines a contingency as "an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur". Legal proceedings are a form of such contingencies. In accordance with ASC 450, accruals for exposures or contingencies are being provided when the expected outcome is probable. However, it is possible that future results of operations for any particular quarter or annual period could be materially affected by changes in the Company's assumptions, the actual outcome of such proceedings or as a result of the effectiveness of the Company strategies related to these proceedings. |
Income taxes | n. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, "Income Taxes" "ASC 740", prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of 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 and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized. ASC 740 clarifies the accounting for uncertainties in income taxes by establishing minimum standards for the recognition and measurement of tax positions taken or expected to be taken in a tax return. Under the requirements of ASC 740, the Company must review all of its tax positions and make a determination as to whether its position is more-likely-than-not to be sustained upon examination by regulatory authorities. If a tax position meets the more-likely–than-not standard, then the related tax benefit is measured based on a cumulative probability analysis of the amount that is more-likely-than-not to be realized upon ultimate settlement or disposition of the underlying issue. The Company policy is to accrue interest and penalties related to unrecognized tax benefits in its financial expenses. The Company believes that its tax positions are all highly certain of being upheld upon examination. As such, as of December 31, 2015 and 2014 the Company has not recorded a liability for uncertain tax positions. |
Concentrations of credit risk | o. Concentrations of credit risk: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, accounts receivables and long-term lease deposits. Cash and cash equivalents are invested in U.S. dollar deposits with major banks in Israel, the United States, Switzerland and Germany. Cash and cash equivalents in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. Accounts receivable includes amounts billed to tenants and accrued expense recoveries due from tenants. The Company makes estimates of un-collectability from its accounts receivable using the specific identification method related to base rents, straight-line rent balances, expense reimbursements and other revenues. The Company also analyzes accounts receivable and historical bad debt levels, tenant credit-worthiness, payment history and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Accounts receivable are written-off when they are deemed to be uncollectible and the Company is no longer actively pursuing collection. The Company's reported net income is directly affected by the management's estimate of the collectability of accounts receivable. |
Earnings (loss) per share | p. Earnings (loss) per share: Basic net earnings (losses) per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings (losses) per share is computed based on the weighted average number of Ordinary shares outstanding during each year, plus dilutive potential Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earning Per Share". Option and restricted shares that have been excluded from the calculations of diluted net income per share was 5,546 and 3,578 for the years ended December 31, 2014 and 2013, respectively. |
Accounting for stock-based compensation | q. Accounting for stock-based compensation: ASC Topic 718 "Compensation - Stock Compensation" "ASC 718", requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company recognizes these compensation costs net of forfeiture rate and recognizes the compensation costs for only those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of stock options granted using the Black-Scholes- Merton option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility is calculated based upon actual historical stock price movements. The expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value was estimated at the date of grant using the following weighted average assumptions for the Black-Scholes model for the year ended December 31, 2011. During 2015 and 2014 there were no new grants. |
Treasury Shares | r. Treasury Shares: During the past years, the Company repurchased certain Ordinary shares on the open market and holds such shares as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction from the shareholders' equity. From time to time the Company reissues treasury shares under the stock purchase plan, upon exercise of option and upon vesting of restricted stock units. When treasury stock is reissued, the Company accounts for the re-issuance in accordance with ASC No. 505-30, "Treasury Stock" and charges the excess of the purchase cost, including related stock-based compensation expenses, over the re-issuance price to retained earnings. The purchase cost is calculated based on the specific identification method. In case the purchase cost is lower than the re-issuance price, the Company credits the difference to additional paid-in capital. |
Fair value of financial instruments | s. Fair value of financial instruments: The carrying amounts of the Company's financial instruments, including cash and cash equivalents, other accounts receivable, trade payables, other accounts payable, and accrued liabilities, approximate fair value because of their generally short-term maturities. ASC 820 clarifies that 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. As a basis for considering such assumptions, ASC 820 establishes a three-level value hierarchy, which prioritizes the 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 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The 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. Swap instrument are measured at fair value under ASC 820 on a recurring basis as of December 31, 2015 and 2014. |
Comprehensive income | t. Comprehensive income: 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. |
Recent Accounting Pronouncements | u. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Companys consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. The Company still evaluating the effect that the updated standard will have on the Companys consolidated financial statements and related disclosures. 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 early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior periods have been retrospectively adjusted. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-period Adjustments." This new guidance requires an acquirer in a business combination to recognize adjustments to the provisional amounts that are identified during the measurement period to be reported in the period in which the adjustment amounts are determined. In addition, the effect on earnings of changes in depreciation, amortization and other items as a result of the change to the provisional amounts, calculated as if the accounting had been complete as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal periods beginning after December 15, 2015 and must be applied prospectively. Early adoption is permitted. The Company has not yet adopted ASU 2015-16 and do not expect the adoption of this guidance to have a material impact on the Companys consolidated financial position or results of operations. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, as part of its initiative to reduce complexity in accounting standards. To simplify presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update), which allows an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The updated standards are effective for financial statements issued for annual and interim periods beginning after December 15, 2015. The updated standards are not expected to materially impact the Companys financial position or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The ASU is expected to impact the Companys consolidated financial statements as the Company has certain operating and land lease arrangements for which the Company are the lessee. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company financial position or results of operations. In January 2016, the FASB issued ASC 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU makes the following targeted changes for financial assets and liabilities: i) requiring equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income; ii) simplifying the impairment assessment of equity securities without readily determinable fair values using a qualitative approach; iii) eliminating disclosure of the method and significant assumptions used to fair value instruments measured at amortized cost on the balance sheet; iv) requiring use of the exit price notion when measuring the fair value of instruments for disclosure purposes; v) for financial liabilities where the fair value option has been elected, requiring the portion of the fair value change related to instrument-specific credit risk (which includes a Company's own credit risk) to be separately reported in other comprehensive income; vi) requiring the separate presentation of financial assets and liabilities by measurement category and form of financial asset (liability) on the balance sheet or accompanying notes; and vii) clarifying that the evaluation of a valuation allowance on a deferred tax asset related to available-for-sale securities should be performed in combination with the entity's other deferred tax assets. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years Early adoption of item (v) above is permitted for financial statements (both annual and interim periods) that have not yet been issued. The Company have not determined when the Company will adopt item (v) above of this ASU. The Company will adopt the remaining provisions of the ASU on January 1, 2018. The Company are evaluating the impact of this ASU on Ambac's financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis (Topic 810), requiring entities to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The revised consolidation model: (1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (2) eliminates the presumption that a general partner should consolidate a limited partnership, (3) affects the consolidation analysis of reporting entities that are involved with VIEs, and (4) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. The updated standard is effective for financial statements issued for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The updated standard may be applied retrospectively or using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The adoption of this guidance is not expected to have an impact on the Companys financial statements and related disclosures. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allocation of Purchase Price for Retail Portfolio in Bavaria, Germany | USD Real estate property 31,399 Other assets, net 74 Total purchase price 31,473 |
Schedule of Disposal Groups, Including Discontinued Operations | Year ended December 31, 2015 2014 Liabilities: Other accounts payable and accrued expenses $ 2,109 $ 2,153 Total liabilities $ 2,109 $ 2,153 |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Years Building 25 - 63 Buildings' improvements 5 - 20 Condominium units 30 |
REAL ESTATE PROPERTY, NET (Tabl
REAL ESTATE PROPERTY, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties | Land Building Condominium units Currency translation adjustment Total Cost: At January 1, 2014 $ 26,486 $ 158,849 $ 22,309 $ 10,595 $ 218,239 Additions - 544 549 (19,202 ) (18,109 ) Disposals - - (3,643 ) - (3,643 ) At December 31, 2014 26,486 159,393 19,215 (8,607 ) 196,487 Additions 7,388 25,467 759 (359 ) 33,255 At December 31, 2015 33,874 184,860 19,974 (8,966 ) 229,742 Accumulated depreciation: At January 1, 2014 - 7,676 538 264 8,478 Depreciation charge for the year - 2,888 472 (477 ) 2,883 Disposals - - (78 ) - (78 ) At December 31, 2014 - 10,564 932 (213 ) 11,283 Depreciation charge for the year - 3,314 394 (89 ) 3,619 At December 31, 2015 - 13,878 1,326 (302 ) 14,902 Real estate property, net: At December 31, 2015 33,874 170,982 18,648 (8,664 ) 214,840 At December 31, 2014 $ 26,486 $ 148,829 $ 18,283 $ (8,394 ) $ 185,204 |
Schedule of estimated depreciation expenses | Year Estimated depreciation expenses 2016 $ 3,587 2017 3,587 2018 3,587 2019 3,587 2020 and thereafter 166,618 $ 180,966 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Other Intangible Assets | Above, below market value of in-place leases Currency translation adjustment Total Cost: At January 1, 2014 $ 1,784 $ 146 $ 1,930 Additions - (193 ) (193 ) Disposals (334 ) - (334 ) At December 31, 2014 1,450 (47 ) 1,403 Additions 74 (3 ) 71 At December 31, 2015 1,524 (50 ) 1,474 Accumulated depreciation: At January 1, 2014 752 37 789 Depreciation charge for the year 453 (114 ) 339 Disposals (334 ) - (334 ) At December 31, 2014 871 (77 ) 794 Depreciation charge for the year 217 (7 ) 210 At December 31, 2015 1,088 (84 ) 1,004 Other assets, net: At December 31, 2015 $ 436 $ 34 $ 470 At December 31, 2014 $ 579 $ 30 $ 609 |
Schedule of Other Intangible Assets, Amortization Expenses | Year Estimated amortization expenses 2016 $ 217 2017 183 2018 27 2019 11 2020 and thereafter 32 $ 470 |
OTHER ACCOUNTS RECEIVABLE AND31
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 Receivables and Prepaid Expenses | December 31, 2015 2014 Escrow (1) - $ 1,271 Prepaid expenses 131 49 Income receivable 109 7 Deposit 6 39 Others 72 30 $ 318 $ 1,396 |
LONG TERM DEPOSIT (Tables)
LONG TERM DEPOSIT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LONG TERM DEPOSIT [Abstract] | |
Schedule of Long Term Deposit | December 31, 2015 2014 Bonds deposit (1) $ 1,685 $ - Restricted account (2) 931 - Other 54 54 $ 2,670 $ 54 |
INVESTMENTS IN COMPANIES AND 33
INVESTMENTS IN COMPANIES AND ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment | December 31, 2015 2014 Invested in equity $ 4,025 $ 4,025 Accumulated net loss (504 ) (472 ) Total investment $ 3,521 $ 3,553 |
Summariezed data of financial statements associates | December 31, 2015 2014 Assets $ 278 ,402 $ 65,408 Liabilities 337 ,599 56 ,595 Fixed income from real estate rent 11,215 10,393 Net income (loss) 97 (859 ) |
OTHER ACCOUNTS PAYABLE AND AC34
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2015 2014 Employees and payroll accruals $ 225 $ 195 Accrued expenses 671 748 Government (mainly tax provision) 1,311 3,580 Advance tenants payments 848 313 Tenant security deposits 119 98 Other 123 57 Total $ 3,297 $ 4,991 |
LONG TERM LOANS (Tables)
LONG TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Swiss Bank Loan [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Loan Maturities | Year ended December 31, 2016 (current maturity) $ 379 Long-term portion: 2017 379 2018 379 2019 379 2020 379 Thereafter 14,797 Total $ 16,313 |
Credit Suisse Loan [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Loan Maturities | Year ended December 31, 2016 (current maturity) $ 2,018 Long-term portion: 2017 2,018 2018 2,018 2019 2,018 2020 2,018 Thereafter 83,109 Total $ 91,181 |
DG HYP Loan [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Loan Maturities | Year ended December 31, 2016 (current maturity) $ 459 Long-term portion: 2017 459 2018 459 2019 459 2020 19,671 Total $ 21,048 |
City National Bank of Florida Loan [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Loan Maturities | Year ended December 31, 2016 (current maturity) $ 3,117 Long-term portion: 2017 4,987 2018 6,553 Total $ 11,540 |
LONG TERM BONDS (Tables)
LONG TERM BONDS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Excluding Current Maturities [Abstract] | |
Schedule of Long Term Bond Maturities | Year ended December 31, 2016 (current maturity) $ 2,562 Long-term portion: 2017 2,562 2018 2,562 2019 2,562 2020 2,562 Thereafter 2,235 Total $ 12,483 |
COMMITMENTS AND CONTIGENT LIABI
COMMITMENTS AND CONTIGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Year ended December 31, 2016 $ 116 2017 117 2018 110 2019 108 2020 and thereafter 732 Total $ 1,183 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Corporate Tax Rates | Year ended December 31, 2015 2014 2013 Luxemburg 29 % 29 % 29 % Switzerland 24 % 24 % 24 % United States 34 % 34 % 34 % Germany 16 % - - |
Schedule of Deferred Tax Liabilities | December 31, 2015 2014 Deferred tax assets: NOLs $ 28,417 $ 29,809 Lease provision 1,539 1,567 Swap instrument - 129 Mortgage loan 210 216 Reserves and allowances - 92 Deferred tax assets 30,166 31,813 Dferred tax liabilities: Land (5,327 ) (5,336 ) Building (10,504 ) (10,667 ) Other assets, net (96 ) (146 ) Reserves and allowances (163 ) - Deferred tax liabilities (16,090 ) (16,149 ) Valuation allowance (28,254 ) (29,901 ) Deferred tax liabilities, net $ (14,178 ) $ (14,237 ) |
Schedule of Reconciliation between Theoretical Tax Expense and Actual Tax Expense | Year ended December 31, 2015 2014 2013 Income before taxes as reported $ 2,811 $ 7,133 $ 5,314 Theoretical tax benefit computed at the statutory rate (26.5% and 25% for the years 2015, 2014 and 2013, respectively) $ 745 $ 1,890 $ 1,329 Differences in tax rates on income deriving from foreign subsidiaries 5 14 (170 ) Tax adjustments in respect of currency translation 42 121 (203 ) Deferred taxes on losses and other temporary differences for which valuation allowance was provided 463 - 223 Realization of carry forward losses - (769 ) - Taxes for previous years 45 - - Other non-deductible expenses 309 246 339 Income tax expense $ 1,609 $ 1,502 $ 1,518 |
Schedule of Income (Loss) Before Taxes on Income | Year ended December 31, 2015 2014 2013 Domestic $ 1,218 $ (1,000 ) $ 328 Foreign 1,593 8,133 4,986 $ 2,811 $ 7,133 $ 5,314 |
Schedule of Components of Income Tax Expense | Year ended December 31, 2015 2014 2013 Current $ 1,648 $ 1,489 $ 1,397 Deferred (39 ) 13 121 $ 1,609 $ 1,502 $ 1,518 Domestic $ - $ - $ - Foreign 1,609 1,502 1,518 $ 1,609 $ 1,502 $ 1,518 |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Options Activity | Year ended December 31, 2015 Amount Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at the beginning of the year 112,000 $ 8.65 3.01 Granted - Forfeited - Outstanding at the end of the year 112,000 $ 8.65 2.01 Exercisable options at the end of the year 112,000 $ 8.65 2.01 Options vested and expected to vest at end of year 112,000 $ 8.65 2.01 |
Schedule of Nonvested Shares Activity | Non-vested shares Shares Weighted average grant date fair value Non-vested at January 1, 2015 10,000 $ 5.76 Granted 8,000 $ 7.32 Exercised (6,000 ) $ 5.76 Non-vested at December 31, 2015 12,000 $ 6.8 |
Schedule of Equity-based Compensation Expense | Year ended December 31, 2015 2014 2013 General and administrative $ 98 $ 97 $ 118 |
SELECTED STATEMENT OF OPERATI40
SELECTED STATEMENT OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Financial Income (Expenses) | Year ended December 31, 2015 2014 2013 Financial income: Interest $ 18 $ 3 $ 7 Remeasurement of derivatives 578 1,025 1,223 Foreign currency translation adjustments 255 - - 851 1,028 1,230 Financial expenses: Interest (2,658 ) (2,109 ) (2,486 ) Foreign currency translation adjustments - (70 ) (87 ) (2,658 ) (2,179 ) (2,573 ) $ (1,807 ) $ (1,151 ) $ (1,343 ) |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of total revenues and real estate property | 2015 2014 2013 Real estate Real estate Real estate Total revenues property, net Total revenues property, net Total revenues property, net Switzerland $ 12,503 $ 165,371 $ 12,830 $ 166,921 $ 12,973 $ 187,990 Germany 1,914 30,820 - - - - United States 856 18,649 1,108 18,283 738 21,771 $ 15,273 $ 214,840 $ 13,938 $ 185,204 $ 13,711 $ 209,761 |
GENERAL (Business Acquisition)
GENERAL (Business Acquisition) (Details) € in Thousands, $ in Thousands | Dec. 29, 2015USD ($) | Jul. 08, 2015USD ($) | Jul. 08, 2015EUR (€) | Jun. 02, 2015USD ($)m² | Jun. 02, 2015EUR (€)m² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||||||
Acquisition costs, including real estate taxes | $ 2,352 | |||||||
300 South Riverside Plaza [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | $ 12,900 | |||||||
Acquisition costs | $ 242 | |||||||
Interest percentage in joint venture | 30.00% | |||||||
Retail Portfolio In Germany [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Square footage of real estate property acquired | m² | 37,000 | 37,000 | ||||||
Payment for acquisition | $ 5,224 | $ 26,249 | ||||||
Acquisition costs, including real estate taxes | 2,352 | |||||||
Retail Portfolio In Germany [Member] | Euro [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | € | € 4,750 | € 24,000 | ||||||
Acquisition costs, including real estate taxes | $ 2,075 |
GENERAL (Real Estate Investment
GENERAL (Real Estate Investments) (Details) - USD ($) $ in Thousands | Dec. 18, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Business Acquisition [Line Items] | ||||
Purchase of real estate | $ 1,093 | $ 5,795 | ||
Shares issued for real estate investment | 1,300,580 | |||
Retail Portfolio of Twenty Seven Supermarkets [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective date of transaction completion | May 31, 2015 | |||
Luxury Suite Condominium [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase of real estate | 4,800 | |||
Flamingo South Beach Condominium [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase of real estate | $ 7,153 | |||
Time period | 3 years | |||
Business Acquisition Three [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 40,559 |
GENERAL (Purchase Price Allocat
GENERAL (Purchase Price Allocation) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Real estate property | $ 31,399 |
Other assets, net | 74 |
Total purchase price | 31,473 |
Retail Portfolio In Germany [Member] | |
Real estate property | 31,399 |
Other assets, net | 74 |
Total purchase price | $ 31,473 |
GENERAL (Discontinued Operation
GENERAL (Discontinued Operations) (Details) $ in Thousands | Sep. 17, 2014USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Residential Condominium Units [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of residential condominium units sold | 11 | |||
Cash received from sale of discontinued operations | $ 6,411 | |||
Video Activity [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received from sale of discontinued operations | $ 8,000 | |||
Liabilities: | ||||
Other accounts payable and accrued expenses | $ 2,109 | $ 2,153 | ||
Total liabilities | $ 2,109 | $ 2,153 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] - item | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Number of major customers | 2 | 2 | 2 |
Threshold percentage for disclosure | 10.00% | 10.00% | 10.00% |
Major customer two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 12.00% | 10.00% |
Major customer one [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 23.00% | 23.00% |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Cash flow hedges | $ 264 | ||
Earnings (loss) per share | |||
Option and restricted shares that have been excluded from the calculations of diluted net income per share | 5,546 | 3,578 | |
Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 63 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | ||
Condominium Units [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 30 years |
REAL ESTATE PROPERTY, NET (Deta
REAL ESTATE PROPERTY, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cost: | |||
Real estate property cost, beginning | $ 196,487 | $ 218,239 | |
Additions | 33,255 | (18,109) | |
Disposals | (3,643) | ||
Real estate property cost, ending | 229,742 | 196,487 | |
Accumulated depreciation: | |||
Real estate property accumulated depreciation, beginning | 11,283 | 8,478 | |
Depreciation expense | 3,619 | 2,883 | |
Disposals | (78) | ||
Real estate property accumulated depreciation, ending | 14,902 | 11,283 | |
Real estate property, net: | |||
Real estate property, net | 214,840 | 185,204 | $ 209,761 |
Land [Member] | |||
Cost: | |||
Real estate property cost, beginning | 26,486 | $ 26,486 | |
Additions | 7,388 | ||
Disposals | |||
Real estate property cost, ending | $ 33,874 | $ 26,486 | |
Accumulated depreciation: | |||
Real estate property accumulated depreciation, beginning | |||
Depreciation expense | |||
Disposals | |||
Real estate property accumulated depreciation, ending | |||
Real estate property, net: | |||
Real estate property, net | $ 33,874 | $ 26,486 | 26,486 |
Building [Member] | |||
Cost: | |||
Real estate property cost, beginning | 159,393 | 158,849 | |
Additions | 25,467 | $ 544 | |
Disposals | |||
Real estate property cost, ending | 184,860 | $ 159,393 | |
Accumulated depreciation: | |||
Real estate property accumulated depreciation, beginning | 10,564 | 7,676 | |
Depreciation expense | 3,314 | $ 2,888 | |
Disposals | |||
Real estate property accumulated depreciation, ending | 13,878 | $ 10,564 | |
Real estate property, net: | |||
Real estate property, net | 170,982 | 148,829 | 151,173 |
Condominium Units [Member] | |||
Cost: | |||
Real estate property cost, beginning | 19,215 | 22,309 | |
Additions | 759 | 549 | |
Disposals | (3,643) | ||
Real estate property cost, ending | 19,974 | 19,215 | |
Accumulated depreciation: | |||
Real estate property accumulated depreciation, beginning | 932 | 538 | |
Depreciation expense | 394 | 472 | |
Disposals | (78) | ||
Real estate property accumulated depreciation, ending | 1,326 | 932 | |
Real estate property, net: | |||
Real estate property, net | 18,648 | 18,283 | 21,771 |
Currency translation adjustment [Member] | |||
Cost: | |||
Real estate property cost, beginning | (8,607) | 10,595 | |
Additions | $ (359) | $ (19,202) | |
Disposals | |||
Real estate property cost, ending | $ (8,966) | $ (8,607) | |
Accumulated depreciation: | |||
Real estate property accumulated depreciation, beginning | (213) | 264 | |
Depreciation expense | (89) | $ (477) | |
Disposals | |||
Real estate property accumulated depreciation, ending | (302) | $ (213) | |
Real estate property, net: | |||
Real estate property, net | $ (8,664) | $ (8,394) | $ 10,331 |
REAL ESTATE PROPERTY, NET (Esti
REAL ESTATE PROPERTY, NET (Estimated Depreciation Expenses) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Real Estate Properties Estimated Depreciation Expenses [Abstract] | |
2,016 | $ 3,587 |
2,017 | 3,587 |
2,018 | 3,587 |
2,019 | 3,587 |
2020 and thereafter | 166,618 |
Estimated amortization expenses | $ 180,966 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cost: | |||
Cost, beginning | $ 1,403 | $ 1,930 | |
Additions | 71 | (193) | |
Disposals | (334) | ||
Cost, ending | 1,474 | 1,403 | |
Accumulated depreciation: | |||
Accumulated depreciation, beginning | 794 | 789 | |
Depreciation charge for the year | 210 | 339 | |
Disposals | (334) | ||
Accumulated depreciation, ending | 1,004 | 794 | |
Other assets, net: | |||
Intangible assets, net | 470 | 609 | $ 1,141 |
Estimated amortization expenses: | |||
2,016 | 217 | ||
2,017 | 183 | ||
2,018 | 27 | ||
2,019 | 11 | ||
2020 and thereafter | 32 | ||
Total future amortization expense | 470 | 609 | 1,141 |
Above Market Leases [Member] | |||
Cost: | |||
Cost, beginning | 1,450 | $ 1,784 | |
Additions | 74 | ||
Disposals | $ (334) | ||
Cost, ending | 1,524 | 1,450 | |
Accumulated depreciation: | |||
Accumulated depreciation, beginning | 871 | 752 | |
Depreciation charge for the year | 217 | 453 | |
Disposals | (334) | ||
Accumulated depreciation, ending | 1,088 | 871 | |
Other assets, net: | |||
Intangible assets, net | 436 | 579 | 1,032 |
Estimated amortization expenses: | |||
Total future amortization expense | 436 | 579 | 1,032 |
Finite Lived Intangible Assets Currency Translation Adjustments [Member] | |||
Cost: | |||
Cost, beginning | (47) | 146 | |
Additions | (3) | $ (193) | |
Disposals | |||
Cost, ending | (50) | $ (47) | |
Accumulated depreciation: | |||
Accumulated depreciation, beginning | (77) | 37 | |
Depreciation charge for the year | (7) | $ (114) | |
Disposals | |||
Accumulated depreciation, ending | (84) | $ (77) | |
Other assets, net: | |||
Intangible assets, net | 34 | 30 | 109 |
Estimated amortization expenses: | |||
Total future amortization expense | $ 34 | $ 30 | $ 109 |
OTHER ACCOUNTS RECEIVABLE AND51
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] | |||
Escrow | [1] | $ 1,271 | |
Prepaid expenses | $ 131 | 49 | |
Income receivable | 109 | 7 | |
Deposit | 6 | 39 | |
Others | 72 | 30 | |
Other accounts receivable and prepaid expenses | $ 318 | $ 1,396 | |
[1] | Deposit paid into an escrow account as part of the purchase agreement in connection with Retail Portfolio in Germany transaction (see details in Note 1b(6)) |
LONG TERM DEPOSIT (Details)
LONG TERM DEPOSIT (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
LONG TERM DEPOSIT [Abstract] | |||
Bonds deposit | [1] | $ 1,685 | |
Restricted account | [2] | 931 | |
Other | 54 | $ 54 | |
Total | $ 2,670 | $ 54 | |
[1] | Bonds deposit of one payment of principal and interest reserves. See Note 10. | ||
[2] | Restricted account of 931 funded relates to an interest reserve for Miami Loan. See Note 9d. |
INVESTMENTS IN COMPANIES AND 53
INVESTMENTS IN COMPANIES AND ASSOCIATES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 29, 2015 | Dec. 31, 2012 |
Texas Shopping Centers [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Beneficial interest | 4.00% | |
Capital contribution | $ 4,000 | |
300 South Riverside Plaza [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Payment for acquisition | $ 12,900 | |
Acquisition costs | $ 242 | |
Interest percentage in joint venture | 30.00% |
INVESTMENTS IN COMPANIES AND 54
INVESTMENTS IN COMPANIES AND ASSOCIATES (Two Penn Center Plaza) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||
Accumulated net loss | $ (31) | $ (186) | $ (172) | $ (32) |
Two Penn Center Plaza [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Invested in equity | 4,025 | 4,025 | ||
Accumulated net loss | (504) | (472) | ||
Total investment | $ 3,521 | $ 3,553 |
INVESTMENTS IN COMPANIES AND 55
INVESTMENTS IN COMPANIES AND ASSOCIATES (Summarized Data of Financial Statements of Associates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments In Companies And Associates Summarized Data Of Financial Statements Of Associates Details | ||
Assets | $ 278,402 | $ 65,408 |
Liabilities | 337,599 | 56,595 |
Fixed income from real estate rent | 11,215 | 10,393 |
Net income (loss) | $ 97 | $ (859) |
OTHER ACCOUNTS PAYABLE AND AC56
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 225 | $ 195 |
Accrued expenses | 671 | 748 |
Government (mainly tax provision) | 1,311 | 3,580 |
Advance tenants payments | 848 | 313 |
Tenant security deposits | 119 | 98 |
Other | 123 | 57 |
Other accounts payable and accrued expenses | $ 3,297 | $ 4,991 |
LONG TERM LOANS (Details)
LONG TERM LOANS (Details) € in Thousands, SFr in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015CHF (SFr) | Dec. 31, 2014USD ($) | ||
Debt Instrument [Line Items] | ||||||
Restricted cash deposit | [1] | $ 931 | ||||
Swiss Bank Loan [Member] | Mortgages [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | SFr | SFr 18,800 | |||||
Variable interest rate spread | 0.80% | |||||
Annual principal payment | SFr | 379 | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||
2016 (current maturity) | 379 | |||||
2,017 | 379 | |||||
2,018 | 379 | |||||
2,019 | 379 | |||||
2,020 | 379 | |||||
Thereafter | 14,797 | |||||
Total | $ 16,313 | |||||
Credit Suisse Loan [Member] | Mortgages [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | SFr | SFr 100,000 | |||||
Interest rate | 0.83% | 0.83% | 0.83% | |||
Annual principal payment | SFr | SFr 2,000 | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||
2016 (current maturity) | $ 2,018 | |||||
2,017 | 2,018 | |||||
2,018 | 2,018 | |||||
2,019 | 2,018 | |||||
2,020 | 2,018 | |||||
Thereafter | 83,109 | |||||
Total | $ 91,181 | |||||
DG HYP Loan [Member] | Mortgages [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 21,000 | |||||
Gross amount | € | € 20,000 | |||||
Interest rate | 2.15% | 2.15% | 2.15% | |||
Quarterly principal payment | € | € 105 | |||||
Terms of loan agreement | The terms of the loan includes a debt service cover ratio requirement of between 130% and 110%, and a loan to value requirement of 70% in the first three years and 65% in the fourth and fifth years. | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||
2016 (current maturity) | $ 459 | |||||
2,017 | 459 | |||||
2,018 | 459 | |||||
2,019 | 459 | |||||
2,020 | 19,671 | |||||
Total | 21,048 | |||||
City National Bank of Florida Loan [Member] | Mortgages [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 15,000 | |||||
Gross amount | $ 15,000 | |||||
Loan term | 3 years | |||||
Interest rate | 2.65% | 2.65% | 2.65% | |||
Debt issuance costs | $ 429 | |||||
Restricted cash deposit | 1,000 | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||
2016 (current maturity) | 3,117 | |||||
2,017 | 4,987 | |||||
2,018 | 6,553 | |||||
Total | $ 11,540 | |||||
[1] | Restricted account of 931 funded relates to an interest reserve for Miami Loan. See Note 9d. |
LONG TERM BONDS (Details)
LONG TERM BONDS (Details) ₪ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015ILS (₪) | Dec. 31, 2014USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Total | $ 12,483 | ||
Bonds [Member] | Series A Bonds [Member] | |||
Gross amount | $ 15,700 | ||
Interest rate | 6.70% | 6.70% | |
Debt issuance costs | $ 384 | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2016 (current maturity) | 2,562 | ||
2,017 | 2,562 | ||
2,018 | 2,562 | ||
2,019 | 2,562 | ||
2,020 | 2,562 | ||
Thereafter | 2,235 | ||
Total | $ 12,483 | ||
Bonds [Member] | Series A Bonds [Member] | Shekels [Member] | |||
Gross amount | ₪ | ₪ 60,000 |
COMMITMENTS AND CONTINGENT LI59
COMMITMENTS AND CONTINGENT LIABILITIES (Commitments) (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Future minimum lease commitments: | |
2,016 | $ 116 |
2,017 | 117 |
2,018 | 110 |
2,019 | 108 |
2020 and thereafter | 732 |
Future minimum lease commitments | $ 1,183 |
Royalty Commitment with Office of Chief Scientist [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Maximum royalties as a percent of grants received | 100.00% |
Minimum [Member] | Royalty Commitment with Office of Chief Scientist [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Royalty percentage | 3.00% |
Maximum [Member] | Royalty Commitment with Office of Chief Scientist [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Royalty percentage | 3.50% |
COMMITMENTS AND CONTINGENT LI60
COMMITMENTS AND CONTINGENT LIABILITIES (Contingencies) (Details) SFr in Thousands, $ in Thousands | Apr. 16, 2015USD ($) | Apr. 16, 2015CHF (SFr) | Aug. 21, 2014CHF (SFr) | Mar. 01, 2010CHF (SFr) | Mar. 20, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) |
Loss Contingencies [Line Items] | ||||||||
Escrow release by court's treasury | $ 200 | |||||||
Escrow release by Trust | 1,000 | |||||||
Proceeds from settlement | $ 715 | |||||||
Swiss Pro Capital [Member] | Consultancy Agreement [Member] | Eldista [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Consulting fees | SFr | SFr 400 | |||||||
Swiss Pro Capital [Member] | Option Agreement [Member] | Subsidiaries [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Share capital percentage for which Company's subsidiary granted option to purchase | 20.00% | |||||||
Consideration of option granted | SFr | SFr 315 | |||||||
Percentage of acquisition costs used to calculate exercise price | 20.00% | |||||||
Expiration term | 8 years | |||||||
Tenant Claim [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages and unpaid amounts sought from tenant | $ 1,000 | |||||||
Damages sought | $ 171 | |||||||
Tenant Claim [Member] | CHF [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages and unpaid amounts sought from tenant | SFr | SFr 961 | |||||||
Damages sought | SFr | SFr 157 | |||||||
Derivative Claim [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | $ 41,900 | |||||||
Derivative Claim [Member] | Shareholders [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | 2,800 | |||||||
Trustee [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Litigation escrow | 300 | |||||||
Litigation escrow per Consortium Agreement | 100 | |||||||
Amount of settlement | 36 | |||||||
Costs of the arbitration and lawyers' fees | $ 10 | |||||||
Vitec [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of settlement | $ 442 | |||||||
Costs of the arbitration and lawyers' fees | 69 | |||||||
Damages sought | $ 400 | |||||||
Positive Outcome of Litigation [Member] | ||||||||
Gain Contingencies [Line Items] | ||||||||
Damages sought by the Company | $ 268 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Interest Rate Swap [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan amount | $ 21,632 | $ 74,019 |
Other liability amount | 264 | 539 |
Net unrealized income | $ 264 | $ 508 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Open tax year | 2,011 | |||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Change in unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax rate | 26.50% | 26.50% | 25.00% | |
Luxemburg [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax rate | 29.00% | 29.00% | 29.00% | |
Switzerland [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax rate | 24.00% | 24.00% | 24.00% | |
United States [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax rate | 34.00% | 34.00% | 34.00% | |
Net operating losses carryforward | $ 32,000 | |||
Net operating loss carryforward expiration period | 20 years | |||
Expiration of operating loss carry forward | Dec. 31, 2033 | |||
Germany [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax rate | 16.00% | |||
Israel [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses carryforward | $ 61,000 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
NOLs | $ 28,417 | $ 29,809 |
Lease provision | $ 1,539 | 1,567 |
Swap instrument | 129 | |
Mortgage loan | $ 210 | 216 |
Reserves and allowances | 92 | |
Deferred tax assets | $ 30,166 | 31,813 |
Deferred tax liabilities: | ||
Land | (5,327) | (5,336) |
Building | (10,504) | (10,667) |
Other assets, net | (96) | $ (146) |
Reserves and allowances | (163) | |
Deferred tax liabilities | (16,090) | $ (16,149) |
Valuation allowance | (28,254) | (29,901) |
Deferred tax liabilities, net | $ (14,178) | $ (14,237) |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Theoretical Tax Expense to Actual Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes as reported | $ 2,811 | $ 7,133 | $ 5,314 |
Statutory tax rate | 26.50% | 26.50% | 25.00% |
Increase (reduction) in income taxes resulting from | |||
Theoretical tax benefit computed at the statutory rate (26.5% and 25% for the years 2015, 2014 and 2013, respectively) | $ 745 | $ 1,890 | $ 1,329 |
Differences in tax rates on income deriving from foreign subsidiaries | 5 | 14 | (170) |
Tax adjustments in respect of currency translation | 42 | $ 121 | (203) |
Deferred taxes on losses and other temporary differences for which valuation allowance was provided | $ 463 | $ 223 | |
Realization of carry forward losses | $ (769) | ||
Taxes for previous years | $ 45 | ||
Other non-deductible expenses | 309 | $ 246 | $ 339 |
Income tax expense | $ 1,609 | $ 1,502 | $ 1,518 |
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) before taxes on income: | |||
Domestic | $ 1,218 | $ (1,000) | $ 328 |
Foreign | 1,593 | 8,133 | 4,986 |
Income (loss) before taxes on income | $ 2,811 | $ 7,133 | $ 5,314 |
TAXES ON INCOME (Schedule of 66
TAXES ON INCOME (Schedule of Income Tax Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax expenses: | |||
Current | $ 1,648 | $ 1,489 | $ 1,397 |
Deferred | (39) | 13 | 121 |
Income tax expense | $ 1,609 | $ 1,502 | $ 1,518 |
Income tax expenses by jurisdiction: | |||
Domestic | |||
Foreign | $ 1,609 | $ 1,502 | $ 1,518 |
Income tax expense | $ 1,609 | $ 1,502 | $ 1,518 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ||||
Shares issued for real estate investment | 1,300,580 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration term | 7 years | |||
Available for grant | 482,722 | |||
Aggregate intrinsic value of options outstanding | $ 0 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Authorized for issuance | 260,000 | |||
Additional shares authorized | 150,000 | 50,000 | ||
Ordinary shares reserved for issuance | 183,690 | |||
Unrecognized compensation cost | $ 1,500 | |||
Unrecognized compensation cost, recognition period | 2 years | |||
Restricted Stock [Member] | Year One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Restricted Stock [Member] | Year Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amount | ||
Outstanding at the beginning of the year | 112,000 | |
Granted | ||
Forfeited | ||
Outstanding at the end of the year | 112,000 | 112,000 |
Exercisable options at the end of the year | 112,000 | |
Options vested and expected to vest at end of year | 112,000 | |
Weighted average exercise price | ||
Outstanding at the beginning of the year | $ 8.65 | |
Outstanding at the end of the year | 8.65 | $ 8.65 |
Exercisable options at the end of the year | 8.65 | |
Options vested and expected to vest at end of year | $ 8.65 | |
Weighted average Remaining contractual term (years) | ||
Outstanding | 2 years 4 days | 3 years 4 days |
Exercisable | 2 years 4 days | |
Options vested and expected to vest | 2 years 4 days |
SHAREHOLDERS' EQUITY (Schedul69
SHAREHOLDERS' EQUITY (Schedule of Nonvested Shares Activity) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares | |
Non-vested, beginning balance | shares | 10,000 |
Granted | shares | 8,000 |
Exercised | shares | (6,000) |
Non-vested, ending balance | shares | 12,000 |
Weighted average grant date fair value | |
Non-vested, beginning balance | $ / shares | $ 5.76 |
Granted | $ / shares | 7.32 |
Exercised | $ / shares | 5.76 |
Non-vested, ending balance | $ / shares | $ 6.80 |
SHAREHOLDERS' EQUITY (Schedul70
SHAREHOLDERS' EQUITY (Schedule of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and Administrative from Continued Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Equity-based compensation expense | $ 98 | $ 97 | $ 118 |
SELECTED STATEMENT OF OPERATI71
SELECTED STATEMENT OF OPERATIONS DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial income: | |||
Interest | $ 18 | $ 3 | $ 7 |
Remeasurement of derivatives | 578 | $ 1,025 | $ 1,223 |
Foreign currency translation adjustments | 255 | ||
Total financial income | 851 | $ 1,028 | $ 1,230 |
Financial expenses: | |||
Interest | $ (2,658) | (2,109) | (2,486) |
Foreign currency translation adjustments | (70) | (87) | |
Total financial expenses: | $ (2,658) | (2,179) | (2,573) |
Financial income (expenses), net | $ (1,807) | $ (1,151) | $ (1,343) |
GEOGRAPHIC INFORMATION (Schedul
GEOGRAPHIC INFORMATION (Schedule of Revenues and Real Estate Property) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | item | 1 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 15,273 | $ 13,938 | $ 13,711 |
Real Estate Property, net | 214,840 | 185,204 | 209,761 |
Switzerland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 12,503 | 12,830 | 12,973 |
Real Estate Property, net | 165,371 | $ 166,921 | $ 187,990 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 1,914 | ||
Real Estate Property, net | 30,820 | ||
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 856 | $ 1,108 | $ 738 |
Real Estate Property, net | $ 18,649 | $ 18,283 | $ 21,771 |
MAJOR SHAREHOLDERS AND RELATE73
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS (Details) € in Thousands, $ in Thousands | Sep. 17, 2014USD ($) | Dec. 19, 2013USD ($) | Dec. 19, 2013EUR (€) | Jul. 24, 2015EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014 | Dec. 31, 2013USD ($)shares | Jul. 13, 2013USD ($) |
Related Party Transactions [Abstract] | ||||||||
Shares issued for real estate investment | shares | 1,300,580 | |||||||
Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reimbursement of reasonable work-related expenses | € | € 12 | € 12 | ||||||
Majority Shareholder [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 74.00% | 73.00% | ||||||
Transaction amount | $ 7,153 | |||||||
Time period | 3 years | |||||||
Maximum [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly consulting fee | € | € 4 | € 4 | ||||||
Financial Guarantee [Member] | Majority Shareholder [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum annual guarantee obligation under credit agreement carrying value | $ 20,000 | |||||||
Maximum aggregate guarantee obligation under credit agreement carrying value | $ 60,000 | |||||||
Term of loan guarantee | 3 years | |||||||
Proceeds from related party guarantee | € | € 5,000 | |||||||
Related party yearly rate | 0.76% | |||||||
Flamingo South Beach Condominium [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Time period | 3 years | |||||||
Aggregate price of consideration from sale of units | $ 6,400 | |||||||
Subsidiaries [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Limited partnership | 20.00% | |||||||
Subsidiaries [Member] | Chief Executive Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Salary to CEO | $ 170 | |||||||
Subsidiaries [Member] | Maximum [Member] | Chief Executive Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reimbursement of health insurance expenses | 24 | |||||||
Reimbursement of reasonable work-related expenses | $ 50 |