Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | CYREN Ltd. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 74,940,534 | ||
Entity Public Float | $ 31,400,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001084577 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 000-26495 | ||
Entity Incorporation, State or Country Code | L3 | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 9,296 | $ 11,551 |
Trade receivables (net of allowances of $201 and $129 as of December 31, 2020 and 2019, respectively) | 960 | 2,187 |
Deferred commissions | 980 | 948 |
Prepaid expenses and other receivables | 779 | 819 |
Total current assets | 12,015 | 15,505 |
LONG-TERM ASSETS: | ||
Long-term deferred commissions | 1,125 | 1,580 |
Long-term lease deposits and prepaids | 937 | 767 |
Operating lease right-of-use assets | 10,900 | 8,695 |
Severance pay fund | 745 | 659 |
Property and equipment, net | 3,948 | 4,410 |
Intangible assets, net | 7,797 | 8,966 |
Goodwill | 21,476 | 20,246 |
Total long-term assets | 46,928 | 45,323 |
Total assets | 58,943 | 60,828 |
CURRENT LIABILITIES: | ||
Trade payables | 799 | 1,184 |
Convertible notes (related party) | 10,000 | |
Employees and payroll accruals | 3,813 | 3,427 |
Accrued expenses and other liabilities ($37 and $32 attributable to related parties, respectively) | 1,420 | 1,145 |
Operating lease liabilities | 1,983 | 1,946 |
Deferred revenues | 6,934 | 7,208 |
Total current liabilities | 24,949 | 14,910 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 644 | 1,956 |
Convertible notes (related party) | 10,000 | |
Convertible Debentures ($234 and $- attributable to related parties) | 9,248 | |
Long-term operating lease liabilities | 9,866 | 7,174 |
Deferred tax liability, net | 655 | 796 |
Accrued severance pay | 838 | 811 |
Other liabilities | 706 | 470 |
Total long-term liabilities | 21,957 | 21,207 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares nominal value ILS 0.15 par value - Authorized: 110,000,000 and 110,000,000 shares as of December 31, 2020 and 2019; Issued: 61,271,910 and 59,372,173 shares as of December 31, 2020 and 2019; Outstanding: 61,271,910 and 59,372,173 shares as of December 31, 2020 and 2019, respectively | 2,392 | 2,309 |
Additional paid-in capital | 258,962 | 255,741 |
Accumulated other comprehensive loss | (725) | (2,010) |
Accumulated deficit | (248,592) | (231,329) |
Total shareholders’ equity | 12,037 | 24,711 |
Total liabilities and shareholders’ equity | $ 58,943 | $ 60,828 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) $ in Thousands | Dec. 31, 2020USD ($)shares | Dec. 31, 2020₪ / shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019₪ / shares |
Statement of Financial Position [Abstract] | ||||
Allowances for doubtful accounts | $ | $ 201 | $ 129 | ||
Accrued expenses and other liabilities attributable to related parties | $ | 37 | 32 | ||
Convertible debentures attributable to related parties | $ | $ 234 | |||
Ordinary shares, par value | ₪ / shares | ₪ 0.15 | ₪ 0.15 | ||
Ordinary shares, authorized | shares | 110,000,000 | 110,000,000 | ||
Ordinary shares, issued | shares | 61,271,910 | 59,372,173 | ||
Ordinary shares, outstanding | shares | 61,271,910 | 59,372,173 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 36,388 | $ 38,391 |
Cost of revenues | 14,786 | 15,557 |
Gross profit | 21,602 | 22,834 |
Operating expenses: | ||
Research and development, net | 16,083 | 15,801 |
Sales and marketing | 11,678 | 13,825 |
General and administrative | 9,583 | 10,877 |
Total operating expenses | 37,344 | 40,503 |
Operating loss | (15,742) | (17,669) |
Other income, net | 5 | 266 |
Financial expenses, net ($590 and $567 attributable to related parties, respectively) | (1,647) | (727) |
Loss before taxes on income | (17,384) | (18,130) |
Tax benefit | 121 | 112 |
Net loss | $ (17,263) | $ (18,018) |
Basic and diluted net loss per share (in Dollars per share) | $ (0.29) | $ (0.33) |
Weighted average number of shares used in computing basic and diluted net loss per share (in Shares) | 60,327,181 | 55,166,573 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Financial expenses, net attributable to related parties | $ 590 | $ 567 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (17,263) | $ (18,018) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | 1,285 | (344) |
Comprehensive loss | $ (15,978) | $ (18,362) |
Statements of Changes in Shareh
Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Number of outstanding ordinary shares | Additional paid-in capital | Treasury shares | Accumulated other comprehensive loss | [1] | Accumulated deficit | Total |
Beginning Balance at Dec. 31, 2018 | $ 2,097 | $ 245,570 | $ (998) | $ (1,666) | $ (213,143) | $ 31,860 | |
Beginning Balance (in Shares) at Dec. 31, 2018 | 54,057,208 | ||||||
Issuance of treasury shares upon exercise of options and vesting of restricted share units | (403) | 998 | (168) | 427 | |||
Issuance of treasury shares upon exercise of options and vesting of restricted share units (in Shares) | 348,673 | ||||||
Issuance of ordinary shares upon exercise of option | $ 10 | 306 | 316 | ||||
Issuance of ordinary shares upon exercise of option (in Shares) | 248,226 | ||||||
Payment of interest in shares | $ 3 | 140 | 143 | ||||
Payment of interest in shares (in Shares) | 82,482 | ||||||
Stock-based compensation related to employees, directors, and consultants | 2,360 | 2,360 | |||||
Issuance of ordinary shares upon rights offering | $ 199 | 7,768 | 7,967 | ||||
Issuance of ordinary shares upon rights offering (in Shares) | 4,635,584 | ||||||
Other comprehensive loss | (344) | (344) | |||||
Net loss | (18,018) | (18,018) | |||||
Ending Balance at Dec. 31, 2019 | $ 2,309 | 255,741 | (2,010) | (231,329) | 24,711 | ||
Ending Balance (in Shares) at Dec. 31, 2019 | 59,372,173 | ||||||
Restricted stock units vested | $ 38 | (38) | |||||
Restricted stock units vested (in Shares) | 856,132 | ||||||
Payment of interest in shares | $ 24 | 551 | 575 | ||||
Payment of interest in shares (in Shares) | 560,596 | ||||||
Stock-based compensation related to employees, directors, and consultants | 2,391 | 2,391 | |||||
Issuance of shares upon early conversion of a convertible debenture | $ 21 | 317 | 338 | ||||
Issuance of shares upon early conversion of a convertible debenture (in Shares) | 483,009 | ||||||
Other comprehensive loss | 1,285 | 1,285 | |||||
Net loss | (17,263) | (17,263) | |||||
Ending Balance at Dec. 31, 2020 | $ 2,392 | $ 258,962 | $ (725) | $ (248,592) | $ 12,037 | ||
Ending Balance (in Shares) at Dec. 31, 2020 | 61,271,910 | ||||||
[1] | Relates to foreign currency translation adjustments. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (17,263) | $ (18,018) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on disposal of property and equipment | 14 | |
Depreciation | 2,349 | 1,946 |
Stock-based compensation | 2,391 | 2,360 |
Amortization of intangible assets | 2,823 | 3,755 |
Amortization of deferred commissions | 1,517 | 1,199 |
Non-cash operating lease expense | 2,157 | 1,331 |
Interest on convertible notes | 575 | 568 |
Interest and amortization of debt issuance costs on Convertible Debentures | 601 | |
Other expenses related to the earn-out consideration | (257) | |
Deferred taxes, net | (184) | (322) |
Changes in assets and liabilities: | ||
Trade receivables, net | 1,299 | 1,535 |
Prepaid expenses and other receivables | 57 | (171) |
Deferred commissions | (1,095) | (961) |
Change in long-term lease deposits | (116) | 45 |
Trade payables | (399) | (759) |
Employees and payroll accruals, accrued expenses, and other liabilities | 149 | (1,028) |
Deferred revenues | (1,856) | 2,932 |
Accrued severance pay, net | (60) | 58 |
Operating lease liabilities | (1,606) | (1,246) |
Other long-term liabilities | 237 | 151 |
Net cash used in operating activities | (8,410) | (6,882) |
Cash flows from investing activities: | ||
Capitalization of technology | (1,482) | (3,696) |
Proceeds from sale of property and equipment | 6 | 3 |
Purchase of property and equipment | (1,766) | (1,470) |
Net cash used in investing activities | (3,242) | (5,163) |
Cash flows from financing activities: | ||
Proceeds from a Rights offering, net | 7,967 | |
Proceeds from Convertible Debentures, net of debt issuance costs | 9,442 | |
Payment of earn-out consideration | (2,680) | |
Proceeds from options exercised | 743 | |
Net cash provided by financing activities | 9,442 | 6,030 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (14) |
(Decrease) in cash, cash equivalents and restricted cash | (2,213) | (6,029) |
Cash, cash equivalents and restricted cash at the beginning of the period | 12,127 | 18,156 |
Cash, cash equivalents and restricted cash at the end of the period | 9,914 | 12,127 |
Cash paid (received) during the year for: | ||
Interest | 288 | 769 |
Non-cash transactions: | ||
Unpaid purchases of property and equipment | (18) | (273) |
Operating lease right-of-use asset exchanged for lease obligations | 3,956 | |
Net change in accrued payroll expenses related to capitalization of technology | (24) | (288) |
Issuance of shares for payment of interest on convertible notes | 575 | 143 |
Issuance of shares on early conversion of Convertible Debentures | 338 | |
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flow: | ||
Cash and cash equivalents | 9,296 | 11,551 |
Restricted cash included in long-term restricted lease deposits | 618 | 576 |
Total cash, cash equivalents and restricted cash | $ 9,914 | $ 12,127 |
General
General | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1: GENERAL a. Cyren Ltd. (henceforth “Cyren”) was incorporated under the laws of the State of Israel on February 10, 1991 and its legal form is a company limited by shares. Cyren listed its shares to the public on July 15, 1999 under the name Commtouch Software Ltd. and changed its legal name to Cyren Ltd. in January 2014. Cyren and its subsidiaries, unless otherwise indicated will be referred to in these consolidated financial statements as the “Company”. The Company is engaged in developing and marketing information security solutions for protecting web, email, and mobile transactions. The Company sells its cloud-based solutions worldwide, in both embedded and Security-as-a-Service models, to Original Equipment Manufacturers (“OEMs”), service providers and enterprises. The Company operates in one reportable segment, which constitutes its reporting unit. b. Over the past several years, the Company has devoted substantially most of its effort to research and development, product development and increasing revenues through additional investments in sales & marketing. The Company has incurred losses since inception and expects to continue to incur losses for the foreseeable future. At December 31, 2020, the Company’s cash and cash equivalents position is not sufficient to fund the Company’s planned operations for at least a year beyond the date of the filing date of the consolidated financial statements. Those factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months through a combination of actions that may include existing cash on hand, reducing operating spend, divesting non-core assets and future issuances of equity and/or debt securities. On February 11, 2021, the Company entered into securities purchase agreements with several institutional investors for the purchase and sale, in a registered direct offering, of 12,000,000 of the Company’s ordinary shares at a purchase price of $1.15 per share for net proceeds of approx. $12,500. For additional information, please refer to Note 14. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The consolidated financial statements for the year ended December 31, 2020 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars: Cyren’s revenues, and certain of its subsidiary’s revenues, are generated mainly in U.S. dollars. In addition, most of their costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which Cyren and certain of its subsidiaries operate. Thus, the functional and reporting currency of Cyren and certain of its subsidiaries is the U.S. dollar. Cyren and certain subsidiaries’ transactions and balances denominated in U.S. dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. c. Principles of consolidation: The consolidated financial statements include the accounts of Cyren and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. d. Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or prior to the conditions or events that create the going concern risk. The consolidated financial statements as of December 31, 2020 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. e. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. f. Restricted deposits: The Company maintains certain deposits amounts restricted as to withdrawal or use. On December 31, 2020, the Company maintained a balance of $618 which is restricted and is held as collateral for a bank guarantee and a letter of credit provided to the lessors of two of the Company’s offices. The balance is presented on the balance sheets within the long-term restricted lease deposits balance. g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the asset or improvement. Cost of maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as outlined below: Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 3-10 h. Leases: The Company determines if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance lease. In determining the leases classification the Company assesses among other criteria: (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and long-term operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net, other current liabilities, and long-term finance lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. i. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 20 years. Acquired customer contracts and relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer contracts and relationships arrangements as compared to the straight-line method. Technology, Intellectual Property and Trademark are amortized over their estimated useful lives on a straight-line basis. j. Impairment of long-lived assets: The Company’s long-lived assets (assets group) to be held or used, including right-of-use assets and identifiable intangibles 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 these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. In the fourth quarter of 2019, we have recognized an impairment loss of $224 related to, an acquired intangible asset from a prior acquisition. We have determined that the benefit of the acquired R&D would not be realized. This amount has been recognized in cost of revenue. The Company did not record an impairment related to the year-ended December 31, 2020. k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The Company performs an annual impairment test at December 31, of each fiscal year, or more frequently if impairment indicators are present. For each of the two years in the period ended December 31, 2020, no impairment losses have been identified. l. Fair value measurements: The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses, other receivables, trade payables and other payables, approximate their fair values due to the short-term maturities of such financial instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instruments are categorized as Level 3. 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. m. Derivative financial instruments: The Company accounts for derivatives based on ASC 815 (“Derivatives and Hedging”). ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value. Under these standards, the Company separately accounts for the liability and derivative component as an implicit or explicit term that affects some or all of the cash flows or the value of other exchanges required by a contract in a manner similar to a derivative instrument. The derivative component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The liability component is presented at its discounted value based on the excess of the principal amount of the debentures over the fair value of the derivative component, after adjusting for an allocation of debt issuance costs. The effective portion of the gain or loss on the derivative instrument is reported in the consolidated statements of operations under financial expenses, net. n. Revenue recognition: The Company derives its revenues in accordance with ASC 606 from the sale of real-time cloud-based services for each of Cyren’s email security, web security, anti-malware, and advanced threat protection offerings. The Company sells all of its solutions as subscription services, either through OEMs, which are considered end-users, or as complete security services directly to enterprises. The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company applies the following five-step approach: 1) Identification of the contract, or contracts, with the customer 2) Identification of the performance obligation in the contract 3) Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Generally, the Company does not provide price protection, stock rotation, rebates, or right of return. In 2019, one contract contained a significant financing component. Variable Consideration - 4) Allocation of the transaction price to the performance obligations in the contract - 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Subscription Service Revenue Deferred Revenue - In the event cash payments were not received in advance and the issuance of the invoice resulted only in entry to trade receivables and deferred revenue, these amounts would not be reflected on the balance sheet. Deferred commissions The Company capitalizes sales commissions paid to internal sales personnel that are generally incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration factors such as peer estimates of technology lives, and customer lives as well as the Company’s own historical data. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented. For the years ended December 31, 2020 and 2019, the Company capitalized $1,095 and $961 of commission costs, respectively, and amortized $1,517 and 1,199, respectively. o. Research and development costs, net: Research and development costs are charged to statements of operations as incurred, except for capitalized technology. p. Capitalized technology: The Company capitalizes development costs incurred during the application development stage which are related to internal-use technology that supports its security services. Costs related to preliminary project activities and post implementation activities are expensed as incurred as research and development costs on the statements of operations. Capitalized internal-use technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally one to three years. Amortization expenses are recognized under cost of goods sold. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. q. Concentrations of credit risk: The Company has no significant off-balance-sheet concentration of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The majority of the Company’s cash and cash equivalents are invested in dollars and are deposited in major banks in the United States, Germany, Iceland, UK, and Israel. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are derived from transactions with companies located primarily in North America, Europe, Israel, and Asia. A provision for credit loss account is determined based on historical collection experience, customer creditworthiness, current and future economic conditions and market conditions with respect to those amounts that the Company has determined to be doubtful of collection. The provision for credit loss amounted $201 and $129 at December 31, 2020 and 2019, respectively. Bad debt benefit for December 31, 2020 was $5 and an expense of $138 for December 31, 2019. r. Accounting for stock-based compensation: ASC 718 - “Compensation-stock Compensation”- (“ASC 718”) requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expense for the value of its awards on a straight-line basis over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. 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. Estimated forfeitures are based on actual historical pre-vesting forfeitures (pursuant to the adoption of ASU 2016-09, the Company made a policy election to estimate the number of awards that are expected to vest). The Company estimates the fair value of stock options granted using the Black-Scholes 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 was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted represents the period of time that options granted are expected to be outstanding, based upon historical experience. 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 for options granted in 2020 and 2019 is estimated at the date of grant using a Black-Scholes options pricing model with the following assumptions: Year ended December 31, Stock options 2020 2019 Volatility 47% - 60 % 46% - 50 % Risk-free interest rate 0.23% - 1.40 % 1.5% - 2.5 % Dividend yield 0 % 0 % Expected term (years) 4.10 3.7-4.0 s. Basic and diluted net loss per share: Basic net loss per share has been computed using the weighted-average number of ordinary shares outstanding during the year. Diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus the weighted average number of dilutive potential ordinary shares considered outstanding during the year. In 2020 and 2019 there is no difference between the denominator of basic and diluted net loss per share. In periods where the Company reports a net loss, the effect of anti-dilutive stock options, restricted stock units, Convertible Notes, Convertible Debentures, and warrants are excluded and diluted net loss per share is equal to basic loss per share. For the years ended December 31, 2020 and 2019, 23,803,669 and 11,352,573 ordinary shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect, respectively. t. Severance pay: The Company’s liability for severance pay in Israel is calculated pursuant to Israel’s Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s obligation for all of its Israeli employees is fully provided by monthly deposits with severance pay funds and insurance policies, and by an accrual. The value of those funds and policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. Effective October 2014, the Company’s agreements with new employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payment is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. Severance benefit for the year ended December 31, 2020 was $40 and the Severance expense for the year ended December 31, 2019 was $47. u. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). 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 provides a valuation allowance to reduce deferred tax assets to amounts more likely than not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. v. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive loss 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 other comprehensive income (loss) relate to gains and losses from functional currency translation adjustments on behalf of subsidiaries whose functional currency has been determined to be their local currency. w. Recently issued and adopted pronouncements: In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update to the standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Entities can choose to adopt the ASU 2018-15 prospectively or retrospectively. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used. The new accounting standard was effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. x. New accounting pronouncements not yet adopted: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact that the adoption of ASU 2019-12 will have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 3: PROPERTY AND EQUIPMENT, NET December 31 2020 2019 Cost: Computers and peripheral equipment $ 13,080 $ 12,965 Office furniture and equipment 875 977 Leasehold improvements 861 812 14,816 14,754 Less accumulated depreciation (10,868 ) (10,344 ) Property and equipment, net $ 3,948 $ 4,410 Depreciation expense amounted to $2,349 and $1,946 in 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 4: INTANGIBLE ASSETS, NET a. Definite-lived intangible assets: December 31, 2020 2019 Original amounts: Customer contracts and relationships $ 5,398 $ 5,144 Technology 21,903 (*) 21,965 (*) Trademarks 1,630 1,574 Total original amounts 28,931 28,683 Accumulated amortization: Customer contracts and relationships (4,863 ) (4,400 ) Technology (14,934 ) (14,183 ) Trademarks (1,337 ) (1,134 ) Accumulated amortization (21,134 ) (19,717 ) Intangible assets, net $ 7,797 $ 8,966 (*) Includes $14,405 and $14,852 capitalized technology as of December 31, 2020 and 2019, respectively. Capitalized technology includes $725 and $5,303 for which amortization has not yet begun as of December 31, 2020 and 2019, respectively. In the fourth quarter of 2019, the Company recognized an impairment loss of $224 related to R&D, an acquired intangible asset from a prior acquisition. We have determined that the benefit of the acquired R&D would not be realized. This amount has been recognized in cost of revenue. In the third quarter of 2020, the Company wrote-off in-process R&D as it was determined that the accumulated costs associated with a project would not materialize into a saleable product. As a result, $696 of expense has been recognized in operating expenses and $49 associated with capitalized interest, included within financial expenses, net. b. The intangible assets that are subject to amortization are amortized over their estimated useful lives using the straight-line method, except for customer relations which are amortized on an accelerated basis. The following table sets forth the weighted average remaining amortization period for the major classes of intangible assets: (In Years) Customer contracts and relationships 11.9 Technology 2.7 Trademarks 1.8 c. Amortization expense for 2020 was $2,823. Amortization expense for 2019 amounted to $3,755, which includes $224 of an impairment loss. d. The estimated aggregate amortization expenses for the succeeding fiscal years are as follows: 2021 $ 3,028 2022 2,987 2023 1,076 2024 264 2025 132 Thereafter 310 Total $ 7,797 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 5: GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2020 and 2019 are as follows: Year ended December 31, 2020 2019 Balance at the beginning of the year $ 20,246 $ 20,519 Foreign currency translation adjustments 1,230 (273 ) Balance at the year end $ 21,476 $ 20,246 |
Earn-Out Consideration
Earn-Out Consideration | 12 Months Ended |
Dec. 31, 2020 | |
Earnout Consideration [Abstract] | |
EARN-OUT CONSIDERATION | NOTE 6: EARN-OUT CONSIDERATION In conjunction with the 2012 acquisition of eleven, the Company entered into an earn-out agreement with the former shareholders that would pay additional consideration based on the revenue performance for the years ending 2012-2015. Subsequently in 2014, the Company had a legal dispute regarding the amount and timing of the earn-out payments and had entered into arbitral proceedings with the former shareholders of eleven. On March 9, 2017, the Company received the arbitral judgement. Pursuant to the judgement, the earn-out consideration balance was increased to reflect additional legal expenses and interest expenses covering the period up to December 31, 2016. During 2017 and 2018, the Company continued to accrue interest on the unpaid earn-out consideration balance. Such interest is reflected in the consolidated statements of operations under financial expenses, net. In May 2018, the Company made a partial payment of the earn-out consideration to five of the six former shareholders, in an amount of $0.6 million. The earn-out consideration balance presented on our balance sheet as of December 31, 2019 reflected the complete remaining liability relating to the earn-out, including accrued interest. In February 2019, the parties agreed to resolve all pending claims, and on February 28, 2019, the Company paid approximately $2.7 million to settle the earn-out consideration in full. As of December 31, 2020, the balance of the earn-out liability is zero. For additional information, please refer to Note 7b. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7: COMMITMENTS AND CONTINGENCIES a. Cyren Ltd., which was incorporated in Israel, partially financed its research and development expenditures under programs sponsored by the Israel Innovation Authority (“IIA”) for the support of certain research and development activities conducted in Israel. In connection with specific research and development, the Company received $3,699 of participation payments from the IIA through December 31, 2020, but no grants since 2018. In return for the IIA’s participation in this program, the Company is committed to pay royalties at a rate of 3% of the program’s developed product sales, up to 100% of the amount of grants received plus interest at annual LIBOR rate. The Company’s total commitment for royalties payable with respect to future sales, based on IIA participations received, net of royalties paid or accrued, totaled $2,714 and $2,765 as of December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, $137 and $186, respectively, were recorded as cost of revenues with respect to royalties due to the IIA. b. Litigations: i. Between 2014 and 2015 the Company entered into arbitral proceedings with the former shareholders of eleven regarding an escrow account and the earn-out consideration related to the purchase agreement of former eleven. With respect to these claims, on March 9, 2017, the arbitrational panel provided their ruling in which it accepted the claims submitted by the former eleven shareholders with respect to the escrow amount and the 2013 earn-out liability. The arbitrational panel also ruled that Cyren pay legal expenses and interest on the claimed amounts, which were reflected in the year ending December 31, 2016 on the Company’s balance sheet and in the consolidated statements of operations under adjustment to earn-out consideration. The escrow account has been released to the former shareholders. The arbitrational award related to the 2013 earn-out consideration was declared enforceable by the applicable courts in Germany. Accordingly, on May 30, 2018, the Company paid the portion of the earn-out consideration in the amount of $604 that was declared enforceable by the German district court. The Company did not pay the remainder of the earn-out consideration, including accrued legal and interest, which appear on the Company’s consolidated balance sheets as of December 31, 2019, and has filed an appeal to the German Federal Supreme Court challenging the enforceability of the remaining amounts. In February 2019, the parties signed a settlement agreement to resolve all pending claims, and on February 28, 2019 the Company paid $2,680 to settle the earn-out consideration in full. The total amount paid to resolve all claims was $256 less than the accrued liability, which generated “other income” as previously reflected in the consolidated statement of operations for the period ending December 31, 2019. ii. On June 28, 2017 a vendor filed a Statement of Claim in the Tel Aviv District Court (the “SOC”). According to the vendor’s SOC, the Company entered into an agreement with the vendor for receipt of services, based on a database developed by the vendor. In September 2015, the Company terminated the agreement with the vendor, effective as of December 31, 2015. The vendor claims that the Company continues to make use of the vendor’s database post termination thus breaching the agreement, infringing on the vendor’s rights and commercial secrets, and being unjustly enriched. The vendor claimed license fees of approximately $3,150 and an injunction relief ordering the Company and/or its customers to delete any remaining data and to cease from utilizing such data. The Company denied all claims and filed a Statement of Defense on November 15, 2017. Pretrial was scheduled for May 15, 2018. In accordance with the court’s recommendation from November 28, 2017, the parties agreed to examine a non-binding mediation process and have appointed a mediator. The parties agreed to conduct a third-party audit of the Company’s databases in the scope of the mediation and the audit is currently being conducted. In September 2018 and January 2019, the same vendor filed a lawsuit against two of the Company’s customers in the United States. The vendor alleged that the clients misappropriated the vendor’s trade secrets and sought injunctive relief and monetary damages in an amount to be determined. Both customers contended that the allegations relate to the services they receive from the Company, and the Company agreed to indemnify both clients against these claims. On September 30, 2019, the court dismissed one of the lawsuits in its entirety for lack of personal jurisdiction and, in the second lawsuit, dismissed part of the claims with prejudice but granted the vendor the right to amend its other claims. On October 31, 2019, the vendor filed an amended complaint. In December 2019, the Company reached a settlement with the vendor. As a part of the settlement, the Company agreed to pay $750; $375 in December 2019 and the remaining portion in January 2020. As of December 31, 2019, the $375 was accrued in accrued expenses and other liabilities on the consolidated balance sheet and the amount was paid in January 2020. No amounts are outstanding at December 31, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 8: LEASES The Company leases offices and vehicles under operating leases. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments according to their term. Several of the Company’s leases include renewal options and some have termination options that are factored into the Company’s determination of the lease payments when appropriate. The Company estimates the incremental borrowing rate in order to discount the lease payments based on the information available at the lease commencement date. The Company has various operating leases for office space and vehicles that expire through 2030. Below is a summary of our operating right-of-use assets and operating lease liabilities as of December 31, 2020: Operating lease right-of-use assets $ 10,900 Operating lease liabilities, current $ 1,983 Operating lease liabilities long-term 9,866 Total operating lease liabilities $ 11,849 Minimum lease payments for our right of use assets over the remaining lease periods as of December 31, 2020, are as follows: Year ended December 31, 2021 $ 2,433 2022 1,843 2023 1,635 2024 1,650 2025 1,663 Thereafter 4,574 Total undiscounted lease payments $ 13,798 Less: Interest (1,949 ) Present value of lease liabilities $ 11,849 Premises rent expense was $2,803 and $2,371 for the year ended December 31, 2020 and 2019, respectively. As of December 31, 2020, Cyren subleases two real estate properties. Sublease receipts were $525 and $277 for the twelve months ended December 31, 2020 and 2019, respectively. The Company has elected the practical expedient to not separate lease components from non-lease components. The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2020: Remaining lease term and discount rate: Weighted average remaining lease term (years) 4.37 % Weighted average discount rate 7.2 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 9: SHAREHOLDERS’ EQUITY a. General: Ordinary shares confer upon their holders the right to receive notice to participate and vote in general shareholder meetings of the Company and to receive dividends, if declared. b. Issuance of convertible notes: On December 5, 2018 the Company issued $10,000 aggregate principal amount of convertible notes in a private offering. The notes are unsecured, unsubordinated obligations of Cyren and carry a 5.75% interest rate, payable semi-annually in (i) 50% cash and (ii) 50% cash or ordinary shares at Cyren’s election. The notes have a 3-year term and are expected to mature in December 2021, unless converted in accordance with their terms prior to maturity. The notes were issued with a conversion price of $3.90 per share which was subject to adjustment using a weighted average ratchet mechanism based on the size and price of future equity offerings and the total shares outstanding. On November 7, 2019 Cyren announced the closing of a rights offering that raised gross proceeds of $8,019. As a result of this offering, the conversion price of the convertible notes was adjusted to $3.73. In addition, the notes would be subject to immediate conversion upon any change in control in the Company (or subject to repayment if the price in the change in control transaction is less than the conversion price). The Company incurred interest expense of $574 and $568 for the years ended December 31, 2020, and 2019, respectively. During the twelve months ending December 31, 2019, the Company paid semi-annual interest payments totaling $575, of which $431 was paid in cash and the remaining portion through the issuance of 82,482 shares. During the twelve months ending December 31, 2020, the Company paid semi-annual interest payments totaling $575, of which $288 was paid in cash and the remaining portion through the issuance of 279,650 shares. The Company has accrued interest of $32 as of December 31, 2020, and 2019 respectively. The principal balance of the convertible notes as of December 31, 2020 was $10.0 million. c. Issuance of Convertible Debentures: In March 2020, the Company entered into purchase agreements with a select group of accredited investors for the purchase of $10.25 million aggregate principal amount of Convertible Debentures in a private placement. Upon the closing, the Company received approximately $9.4 million (net of $0.8 million in issuance expenses). The debentures are unsecured, subordinated obligations of Cyren and carry a 5.75% interest rate per annum, payable semi-annually in cash or ordinary shares at Cyren’s election. The debentures have a four-year term and mature in March 2024, unless converted in accordance with their terms prior to maturity. The debentures have a conversion price of $0.75 per share and are convertible into 1,333 ordinary shares per $1,000 principal amount of debentures. The conversion price is subject to adjustment based on the price and timing of future equity offerings and other customary adjustments. Upon the satisfaction of price and other conditions, Cyren has the right to force the conversion of the debentures. The Company incurred interest expense of $601 for the year-ended December 31, 2020. In September 2020, the Company paid semi-annual interest payments totaling, $289, which was paid through the issuance of 280,946 shares. During the twelve months ending December 31, 2020, three of the debenture holders converted $364 of principal plus interest of their debentures, which was a portion of their holding. The principal and interest were paid through the issuance of 483,009 shares. The Company has accrued interest of $167 as of December 31, 2020. The next required payment is in March 2021. The Convertible Debentures balance, net of det issuance costs, as of December 31, 2020 was $9.2 million. The principal balance of the Convertible Debentures as of December 31, 2020 was $9.9 million. As of December 31, 2020, the total estimated fair value of the Convertible Debentures was approximately $10.2 million. The fair value was determined based on the closing trading price of $1.03 per share multiplied by the Convertible Debentures principal balance as of the last day of trading for the period The fair value of the Convertible Debentures is considered a Level 2 within the fair value hierarchy and was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Convertible Debentures in an over-the-counter market. d . Equity Incentive Plan: On December 22, 2016, the Company’s shareholders approved a new equity plan - the 2016 Equity Incentive Plan (the “Equity Incentive Plan”). This plan, along with its respective Israeli appendix, replaced all then-existing employee and consultants stock option plans. The Equity Incentive Plan allows for the issuance of Restricted Stock Units (“RSUs”), as well as options. The options and RSUs generally vest over a period of four years. Options granted under the Equity Incentive Plan generally expire after six years from the date of grant. Options and RSUs cease vesting upon termination of the optionee’s employment or other relationship with the Company. The per share exercise price for options shall be no less than 100% of the fair market value per ordinary share on the date of grant. Any options and RSUs that are cancelled or not exercised within the option term become available for future grant. On July 30, 2019, the shareholders of the Company approved an increase in the number of Ordinary Shares reserved for issuance under the 2016 Equity Incentive Plan and its respective Israeli Appendix to a total of 11,200,000. As of December 31, 2020, an aggregate of 8,837,945 ordinary shares of the Company are still available for future grant under the Equity Incentive Plan. e . Non-Employee Directors stock option plan: On December 22, 2016, the Company’s shareholders approved a new equity plan - the 2016 Non-Employee Director Equity Incentive Plan (the “Non-Employee Director Plan”). This plan, along with its respective Israeli appendix, replaced all existing Directors stock option plans. The Non-Employee Director Plan allows for the issuance of Restricted Stock Units (“RSUs”), as well as options. Each option and RSU granted under the Non-Employee Plan generally vests over a period of four years. Each option has an exercise price equal to the fair market value of the ordinary shares on the grant date of such option. Options granted under the Non-Employee Director Plan generally expire after six years from the date of grant. Options and RSUs cease vesting upon termination of the relationship with the Company. On July 30, 2019 the shareholders of the Company approved an increase in the number of Ordinary Shares reserved for issuance under the Non-Employee Director Plan and its respective Israeli Appendix to a total of 1,150,000 Ordinary Shares. As of December 31, 2020, an aggregate of 864,550 ordinary shares of the Company are still available for future grant to non-employee directors. f . A summary of the Company’s employees and directors’ stock option activity under the plans is as follows: Number of options Weighted average exercise Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at January 1, 2020 7,299,667 $ 2.16 3.81 $ - Granted 235,500 1.50 Exercised - - Expired and forfeited (1,329,307 ) 2.38 Outstanding at December 31, 2020 6,205,860 $ 2.09 3.18 $ - Options vested and expected to vest at December 31, 2020 6,036,777 $ 2.10 3.14 $ - Exercisable options at December 31, 2020 4,068,205 $ 2.18 2.50 $ - Weighted average fair value of options granted during the year $ 0.66 The aggregate intrinsic value in the tables above represents the total intrinsic value (the difference between the fair value of the Company’s ordinary shares as of the last day of each period 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 the last day of each period. The total intrinsic value of options exercised during the years ended December 31, 2020 and 2019 was $0, and $201, respectively. The weighted average grant date fair value of options granted to employees and directors during the years ended December 31, 2020, and 2019, was $0.66 and $0.72, respectively As of December 31, 2020, the Company had $1,662 of unrecognized compensation expense related to non-vested stock options, expected to be recognized over a remaining weighted average period of 2.22 years. g . The employee and directors’ options outstanding as of December 31, 2020, have been separated into ranges of exercise prices, as follows: Outstanding Exercisable Exercise price per share Options outstanding Weighted average remaining contractual life in years Weighted average exercise Options exercisable Weighted average exercise $1.44 - $1.93 1,460,100 3.66 $ 1.57 742,452 $ 1.53 $2.00 - $2.13 1,605,800 3.09 $ 1.85 1,176,121 $ 1.90 $2.14 - $2.75 1,322,778 3.89 $ 2.09 661,314 $ 2.10 $2.90 - $3.07 763,182 3.26 $ 2.39 512,805 $ 2.38 $3.20 - $3.32 1,054,000 1.67 $ 2.97 975,513 $ 2.97 6,205,860 3.18 $ 2.09 4,068,205 $ 2.18 h . Options to non-employees and non-directors: Issuance date Options outstanding Exercise price per share Options exercisable Exercisable through February 18, 2015 3,000 $ 3.00 3,000 Feb-21 February 10, 2016 40,000 $ 1.44 40,000 Feb-22 January 24, 2017 25,000 $ 2.00 25,000 Jan-23 68,000 68,000 The options vest and become exercisable at a rate of 1/16 of the options every three months. As of December 31, 2020, the Company did not have any unrecognized compensation expense related to non-employee non-vested stock options. i . A summary of the Company’s RSUs activity for employees, directors and non-employees under the plans is as follows: Number of RSUs Weighted Average Awarded and unvested at December 31, 2019 1,733,132 $ 2.09 Granted 1,359,000 1.28 Vested (856,132 ) 2.30 Forfeited (52,500 ) 2.30 Awarded and unvested at December 31, 2020 2,183,500 1.50 As of December 31, 2020, the Company had approximately $2,348 of unrecognized compensation expense related to RSUs, expected to be recognized over a weighted average period of 2.59 years. j . The total stock-based compensation expense related to all of the Company’s equity-based awards, recognized for the years ended December 31, 2020 and 2019, was as follows: Year ended December 31, 2020 2019 Cost of revenues $ 105 $ 241 Research and development 291 467 Sales and marketing 244 356 General and administrative 1,751 1,296 $ 2,391 $ 2,360 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10: INCOME TAXES a. Corporate tax structure: i. Corporate tax rates and real capital gains tax in Israel were 23% in 2020 and 2019. ii. The Company’s German subsidiary is subject to German tax at a consolidated rate of approximately 30%. iii. Other Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The Company does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely. As of December 31, 2020, and 2019, there are no undistributed earnings of foreign subsidiaries. b. Tax benefits under Israel’s Law for the Encouragement of Industry (Taxation), 1969: The Company may currently qualify as an “industrial company” within the definition of the Law for the Encouragement of Industry (Taxation), as such, it may be eligible for certain tax benefits, including, inter alia, special depreciation rates for machinery, equipment and buildings, amortization of patents, certain other intangible property rights and deduction of share issuance expenses. c. Net operating loss carry-forwards: As of December 31, 2020, Cyren Ltd.’s net operating loss carryforwards for tax purposes amounted to $102,027 and capital loss carryforwards of $17,845 which may be carried forward and offset against taxable income in the future, for an indefinite period. As of December 31, 2020, the U.S. subsidiary had net operating loss carryforwards of $40,687 for federal tax purposes and $10,595 for state tax purposes. These losses may offset any future U.S. taxable income of the U.S. subsidiary and will expire in the years 2021 through 2040. Management currently believes that based upon its estimations for future taxable income, it is more likely than not that the deferred tax assets regarding the loss carryforwards will not be utilized in the foreseeable future. Thus, a valuation allowance was provided to reduce deferred tax assets to their realizable value. d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2020, and 2019, the Company’s deferred taxes were in respect of the following: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 32,628 $ 29,532 Capital loss carryforwards 4,104 4,105 Other 3,651 4,357 Deferred tax assets before valuation allowance 40,383 37,994 Valuation allowance (39,831 ) (37,044 ) Deferred tax asset, net of valuation allowance 552 950 Deferred tax liabilities: Intangibles (823 ) (1,497 ) Temporary Differences (384 ) (249 ) Deferred tax liability (1,207 ) (1,746 ) Deferred tax liability, net (*) $ (655 ) $ (796 ) (*) The entire amount is due to foreign deferred taxes e. Reconciliation of the theoretical tax benefit (expense): For the year ended December 31, 2020, the main reconciling item between the Company’s statutory tax rate and the effective tax rate relates to the increase in the valuation allowance in the amount of $3,554 due to the increase in carryforward losses. For the year ended December 31, 2019, the main reconciling item between the Company’s statutory tax rate and the effective tax rate relates to the increase in the valuation allowance in the amount of $1,096 due to the increase in carryforward losses. The statutory tax rate used in the reconciliation is the Israeli corporate tax rate. f. Loss before tax benefit (expense) consists of the following: Year ended December 31, 2020 2019 Domestic $ (11,967 ) $ (11,503 ) Foreign (5,417 ) (6,627 ) Loss before tax benefit (expense) $ (17,384 ) $ (18,130 ) g. Tax benefit (expense) is comprised of the following: Year ended December 31, 2020 2019 Current taxes: Foreign $ (64 ) $ (204 ) Domestic - - $ (64 ) $ (204 ) Deferred taxes: Foreign $ 185 $ 316 Domestic - - $ 185 $ 316 Tax benefit (expense), net $ 121 $ 112 h. A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31, 2020 2019 Beginning balance $ 470 $ 354 Increases (decrease) related to tax positions taken during prior years 12 123 Effect of exchange rate 44 (7 ) Ending balance $ 526 $ 470 The entire amount of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. Unrecognized tax benefits are presented on the consolidated balance sheets under other long-term liabilities. i. Tax assessments: As of December 31, 2020, the Company and certain of its subsidiaries filed Israeli and foreign income tax returns. The statute of limitations relating to the consolidated Israeli income tax return is closed for all tax years up to and including 2015. The statute of limitations related to tax returns of the Company’s U.S subsidiary is closed for all tax years up to and including 2016. The statute of limitations related to tax returns of the Company’s German subsidiary is closed for all tax years up to and including 2015. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to tax audits and settlements. The final tax outcome of any Company tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income (loss) in the period in which such determination is made. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 11: SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are reported in a manner consistent with the internal reporting supported and defined by the components of an enterprise about which separate financial information is available, provided and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis. The company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, the Company determined that it has one operating and reportable segment. a. The following sets forth total revenue by solutions offered by geographic area based on billing address of the customer: Year ended December 31, 2020 2019 United States $ 17,377 $ 17,971 Germany 8,500 8,778 Europe-Other 4,006 3,601 Asia Pacific 1,790 2,530 Israel 4,203 5,188 Other 512 323 $ 36,388 $ 38,391 b. Major customers: During the year ended December 31, 2020, 23% of the Company’s revenues were derived from customer A. During the year ended December 31, 2019, 20% of the Company’s revenues were derived from customer A. c. Remaining performance obligations: As of December 31, 2020, approximately $39,011 of revenue is expected to be recognized from remaining performance obligations that are unsatisfied (or partially unsatisfied) for non-cancelable contracts. The Company expects to recognize revenue on approximately 67% of these remaining performance obligations in 2021, and approximately 23% in 2022, with the remainder recognized thereafter. d. Revenue generated by Customer Type: Three months ended Twelve months ended 2020 2019 2020 2019 OEM/Embedded Security (*) $ 6,694 $ 7,699 $ 29,465 $ 31,062 Enterprise/SMB (**) 1,750 1,830 6,923 7,329 $ 8,444 $ 9,529 $ 36,388 $ 38,391 (*) This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. (**) In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. e. The following sets forth the Company’s long-lived tangible assets, net by geographic area: December 31 2020 2019 Israel $ 6,490 $ 7,439 United States 1,964 2,876 Germany 5,247 1,345 Other 1,147 1,445 $ 14,848 $ 13,105 |
Financial Expense, Net
Financial Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
FINANCIAL EXPENSE, NET | NOTE 12: FINANCIAL EXPENSE, NET Year ended December 31, 2020 2019 Income: Interest on cash and cash equivalents $ 2 $ 32 Expenses: Interest and accretion of discount (1,259 ) (565 ) Foreign currency exchange differences, net (325 ) (130 ) Other (65 ) (64 ) (1,649 ) (759 ) Total $ (1,647 ) $ (727 ) |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 13: RELATED PARTIES a. Balances with related parties: December 31 2020 2019 Interest expense accrual – Convertible Notes (*) $ 32 $ 32 Interest expense accrual – Convertible Debentures (*) 4 - Short term Convertible Notes (**) 10,000 - Long term Convertible Notes (**) - 10,000 Long term Convertible Debentures (***) 234 - (*) Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See notes 9b and 9c, respectively for further details. (**) Related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. (***) Related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. b. Transactions with related parties: Year ended December 31, 2020 2019 Interest expense on Convertible Notes (*) $ 575 $ 567 Interest expense on Convertible Debentures (**) $ 15 $ - (*) Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. (**) Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14: SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the filing date of this Form 10-K with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of December 31, 2020, and events which occurred subsequently but were not recognized in the financial statements. Except as noted below, there were no other subsequent events which required recognition, adjustment to or disclosure in the financial statements. Entry into a Securities Purchase Agreement On February 11, 2021, the Company entered into securities purchase agreements with several institutional investors for the purchase and sale, in a registered direct offering, of 12,000,000 of the Company’s ordinary shares at a purchase price of $1.15 per share for gross proceeds of $13,000. The Company agreed to pay the placement agent a cash fee equal to 7% of the aggregate gross proceeds from the securities offering. The Company also agreed to pay the placement agent a management fee equal to 1% of the aggregate gross proceeds from the securities offering. The Company also incurred various other issuance costs associated with the securities purchase agreement. The Company also agreed to issue to the placement agent or its designees warrants (“Placement Agent Warrants”) to purchase up to 720,000 ordinary shares (the “Warrant Shares”), representing 6% of the aggregate number of Ordinary Shares sold in the Offering. The Placement Agent Warrants will have an exercise price equal to $1.4375, or 125% of the offering price, per ordinary share and will be exercisable commencing on August 16, 2021 for five years from the effective date of the Offering. The closing of the securities offering closed on February 16, 2021. The net proceeds to the Company from the securities offering, after deducting the placement agent’s fees and other offering expenses payable by the Company, are approximately $12,500. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: Cyren’s revenues, and certain of its subsidiary’s revenues, are generated mainly in U.S. dollars. In addition, most of their costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which Cyren and certain of its subsidiaries operate. Thus, the functional and reporting currency of Cyren and certain of its subsidiaries is the U.S. dollar. Cyren and certain subsidiaries’ transactions and balances denominated in U.S. dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of Cyren and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. |
Going Concern | d. Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or prior to the conditions or events that create the going concern risk. The consolidated financial statements as of December 31, 2020 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. |
Cash equivalents | e. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. |
Restricted deposits | f. Restricted deposits: The Company maintains certain deposits amounts restricted as to withdrawal or use. On December 31, 2020, the Company maintained a balance of $618 which is restricted and is held as collateral for a bank guarantee and a letter of credit provided to the lessors of two of the Company’s offices. The balance is presented on the balance sheets within the long-term restricted lease deposits balance. |
Property and equipment | g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the asset or improvement. Cost of maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as outlined below: Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 3-10 |
Leases | h. Leases: The Company determines if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance lease. In determining the leases classification the Company assesses among other criteria: (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and long-term operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net, other current liabilities, and long-term finance lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. |
Intangible assets | i. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 20 years. Acquired customer contracts and relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer contracts and relationships arrangements as compared to the straight-line method. Technology, Intellectual Property and Trademark are amortized over their estimated useful lives on a straight-line basis. |
Impairment of long-lived assets | j. Impairment of long-lived assets: The Company’s long-lived assets (assets group) to be held or used, including right-of-use assets and identifiable intangibles 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 these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. In the fourth quarter of 2019, we have recognized an impairment loss of $224 related to, an acquired intangible asset from a prior acquisition. We have determined that the benefit of the acquired R&D would not be realized. This amount has been recognized in cost of revenue. The Company did not record an impairment related to the year-ended December 31, 2020. |
Goodwill | k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The Company performs an annual impairment test at December 31, of each fiscal year, or more frequently if impairment indicators are present. For each of the two years in the period ended December 31, 2020, no impairment losses have been identified. |
Fair value measurements | l. Fair value measurements: The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses, other receivables, trade payables and other payables, approximate their fair values due to the short-term maturities of such financial instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instruments are categorized as Level 3. 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. |
Derivative financial instruments | m. Derivative financial instruments: The Company accounts for derivatives based on ASC 815 (“Derivatives and Hedging”). ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value. Under these standards, the Company separately accounts for the liability and derivative component as an implicit or explicit term that affects some or all of the cash flows or the value of other exchanges required by a contract in a manner similar to a derivative instrument. The derivative component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The liability component is presented at its discounted value based on the excess of the principal amount of the debentures over the fair value of the derivative component, after adjusting for an allocation of debt issuance costs. The effective portion of the gain or loss on the derivative instrument is reported in the consolidated statements of operations under financial expenses, net. |
Revenue recognition | n. Revenue recognition: The Company derives its revenues in accordance with ASC 606 from the sale of real-time cloud-based services for each of Cyren’s email security, web security, anti-malware, and advanced threat protection offerings. The Company sells all of its solutions as subscription services, either through OEMs, which are considered end-users, or as complete security services directly to enterprises. The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company applies the following five-step approach: 1) Identification of the contract, or contracts, with the customer 2) Identification of the performance obligation in the contract 3) Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Generally, the Company does not provide price protection, stock rotation, rebates, or right of return. In 2019, one contract contained a significant financing component. Variable Consideration - 4) Allocation of the transaction price to the performance obligations in the contract - 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Subscription Service Revenue Deferred Revenue - In the event cash payments were not received in advance and the issuance of the invoice resulted only in entry to trade receivables and deferred revenue, these amounts would not be reflected on the balance sheet. Deferred commissions The Company capitalizes sales commissions paid to internal sales personnel that are generally incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration factors such as peer estimates of technology lives, and customer lives as well as the Company’s own historical data. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented. For the years ended December 31, 2020 and 2019, the Company capitalized $1,095 and $961 of commission costs, respectively, and amortized $1,517 and 1,199, respectively. |
Research and development costs, net | o. Research and development costs, net: Research and development costs are charged to statements of operations as incurred, except for capitalized technology. |
Capitalized technology | p. Capitalized technology: The Company capitalizes development costs incurred during the application development stage which are related to internal-use technology that supports its security services. Costs related to preliminary project activities and post implementation activities are expensed as incurred as research and development costs on the statements of operations. Capitalized internal-use technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally one to three years. Amortization expenses are recognized under cost of goods sold. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Concentrations of credit risk: | q. Concentrations of credit risk: The Company has no significant off-balance-sheet concentration of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The majority of the Company’s cash and cash equivalents are invested in dollars and are deposited in major banks in the United States, Germany, Iceland, UK, and Israel. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are derived from transactions with companies located primarily in North America, Europe, Israel, and Asia. A provision for credit loss account is determined based on historical collection experience, customer creditworthiness, current and future economic conditions and market conditions with respect to those amounts that the Company has determined to be doubtful of collection. The provision for credit loss amounted $201 and $129 at December 31, 2020 and 2019, respectively. Bad debt benefit for December 31, 2020 was $5 and an expense of $138 for December 31, 2019. |
Accounting for stock-based compensation | r. Accounting for stock-based compensation: ASC 718 - “Compensation-stock Compensation”- (“ASC 718”) requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expense for the value of its awards on a straight-line basis over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. 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. Estimated forfeitures are based on actual historical pre-vesting forfeitures (pursuant to the adoption of ASU 2016-09, the Company made a policy election to estimate the number of awards that are expected to vest). The Company estimates the fair value of stock options granted using the Black-Scholes 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 was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted represents the period of time that options granted are expected to be outstanding, based upon historical experience. 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 for options granted in 2020 and 2019 is estimated at the date of grant using a Black-Scholes options pricing model with the following assumptions: Year ended December 31, Stock options 2020 2019 Volatility 47% - 60 % 46% - 50 % Risk-free interest rate 0.23% - 1.40 % 1.5% - 2.5 % Dividend yield 0 % 0 % Expected term (years) 4.10 3.7-4.0 |
Basic and diluted net loss per share | s. Basic and diluted net loss per share: Basic net loss per share has been computed using the weighted-average number of ordinary shares outstanding during the year. Diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus the weighted average number of dilutive potential ordinary shares considered outstanding during the year. In 2020 and 2019 there is no difference between the denominator of basic and diluted net loss per share. In periods where the Company reports a net loss, the effect of anti-dilutive stock options, restricted stock units, Convertible Notes, Convertible Debentures, and warrants are excluded and diluted net loss per share is equal to basic loss per share. For the years ended December 31, 2020 and 2019, 23,803,669 and 11,352,573 ordinary shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect, respectively. |
Severance pay | t. Severance pay: The Company’s liability for severance pay in Israel is calculated pursuant to Israel’s Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment or a portion thereof. The Company’s obligation for all of its Israeli employees is fully provided by monthly deposits with severance pay funds and insurance policies, and by an accrual. The value of those funds and policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. Effective October 2014, the Company’s agreements with new employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payment is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. Severance benefit for the year ended December 31, 2020 was $40 and the Severance expense for the year ended December 31, 2019 was $47. |
Income taxes | u. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). 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 provides a valuation allowance to reduce deferred tax assets to amounts more likely than not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. |
Comprehensive loss | v. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive loss 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 other comprehensive income (loss) relate to gains and losses from functional currency translation adjustments on behalf of subsidiaries whose functional currency has been determined to be their local currency. |
Recently issued and adopted pronouncements | w. Recently issued and adopted pronouncements: In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update to the standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Entities can choose to adopt the ASU 2018-15 prospectively or retrospectively. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used. The new accounting standard was effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. |
New accounting pronouncements not yet adopted | x. New accounting pronouncements not yet adopted: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact that the adoption of ASU 2019-12 will have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets | Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 3-10 |
Schedule of share-based payment award, stock options, valuation assumptions | Year ended December 31, Stock options 2020 2019 Volatility 47% - 60 % 46% - 50 % Risk-free interest rate 0.23% - 1.40 % 1.5% - 2.5 % Dividend yield 0 % 0 % Expected term (years) 4.10 3.7-4.0 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31 2020 2019 Cost: Computers and peripheral equipment $ 13,080 $ 12,965 Office furniture and equipment 875 977 Leasehold improvements 861 812 14,816 14,754 Less accumulated depreciation (10,868 ) (10,344 ) Property and equipment, net $ 3,948 $ 4,410 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of weighted average annual rates of amortization for intangible assets | December 31, 2020 2019 Original amounts: Customer contracts and relationships $ 5,398 $ 5,144 Technology 21,903 (*) 21,965 (*) Trademarks 1,630 1,574 Total original amounts 28,931 28,683 Accumulated amortization: Customer contracts and relationships (4,863 ) (4,400 ) Technology (14,934 ) (14,183 ) Trademarks (1,337 ) (1,134 ) Accumulated amortization (21,134 ) (19,717 ) Intangible assets, net $ 7,797 $ 8,966 |
Schedule of weighted average annual rates of amortization for intangible assets | (In Years) Customer contracts and relationships 11.9 Technology 2.7 Trademarks 1.8 |
Schedule of estimated aggregate amortization expenses for five succeeding fiscal years | 2021 $ 3,028 2022 2,987 2023 1,076 2024 264 2025 132 Thereafter 310 Total $ 7,797 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | Year ended December 31, 2020 2019 Balance at the beginning of the year $ 20,246 $ 20,519 Foreign currency translation adjustments 1,230 (273 ) Balance at the year end $ 21,476 $ 20,246 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of operating right-of-use assets and operating lease liabilities | Operating lease right-of-use assets $ 10,900 Operating lease liabilities, current $ 1,983 Operating lease liabilities long-term 9,866 Total operating lease liabilities $ 11,849 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases | Year ended December 31, 2021 $ 2,433 2022 1,843 2023 1,635 2024 1,650 2025 1,663 Thereafter 4,574 Total undiscounted lease payments $ 13,798 Less: Interest (1,949 ) Present value of lease liabilities $ 11,849 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases | Remaining lease term and discount rate: Weighted average remaining lease term (years) 4.37 % Weighted average discount rate 7.2 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of employees and directors' stock option activity | Number of options Weighted average exercise Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at January 1, 2020 7,299,667 $ 2.16 3.81 $ - Granted 235,500 1.50 Exercised - - Expired and forfeited (1,329,307 ) 2.38 Outstanding at December 31, 2020 6,205,860 $ 2.09 3.18 $ - Options vested and expected to vest at December 31, 2020 6,036,777 $ 2.10 3.14 $ - Exercisable options at December 31, 2020 4,068,205 $ 2.18 2.50 $ - Weighted average fair value of options granted during the year $ 0.66 |
Schedule of employee and director options outstanding | Outstanding Exercisable Exercise price per share Options outstanding Weighted average remaining contractual life in years Weighted average exercise Options exercisable Weighted average exercise $1.44 - $1.93 1,460,100 3.66 $ 1.57 742,452 $ 1.53 $2.00 - $2.13 1,605,800 3.09 $ 1.85 1,176,121 $ 1.90 $2.14 - $2.75 1,322,778 3.89 $ 2.09 661,314 $ 2.10 $2.90 - $3.07 763,182 3.26 $ 2.39 512,805 $ 2.38 $3.20 - $3.32 1,054,000 1.67 $ 2.97 975,513 $ 2.97 6,205,860 3.18 $ 2.09 4,068,205 $ 2.18 |
Schedule of options to non-employees | Issuance date Options outstanding Exercise price per share Options exercisable Exercisable through February 18, 2015 3,000 $ 3.00 3,000 Feb-21 February 10, 2016 40,000 $ 1.44 40,000 Feb-22 January 24, 2017 25,000 $ 2.00 25,000 Jan-23 68,000 68,000 |
Schedule of RSUs activity | Number of RSUs Weighted Average Awarded and unvested at December 31, 2019 1,733,132 $ 2.09 Granted 1,359,000 1.28 Vested (856,132 ) 2.30 Forfeited (52,500 ) 2.30 Awarded and unvested at December 31, 2020 2,183,500 1.50 |
Schedule of stock-based compensation expense | Year ended December 31, 2020 2019 Cost of revenues $ 105 $ 241 Research and development 291 467 Sales and marketing 244 356 General and administrative 1,751 1,296 $ 2,391 $ 2,360 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred taxes | December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 32,628 $ 29,532 Capital loss carryforwards 4,104 4,105 Other 3,651 4,357 Deferred tax assets before valuation allowance 40,383 37,994 Valuation allowance (39,831 ) (37,044 ) Deferred tax asset, net of valuation allowance 552 950 Deferred tax liabilities: Intangibles (823 ) (1,497 ) Temporary Differences (384 ) (249 ) Deferred tax liability (1,207 ) (1,746 ) Deferred tax liability, net (*) $ (655 ) $ (796 ) |
Schedule of loss before tax benefit (expense) | Year ended December 31, 2020 2019 Domestic $ (11,967 ) $ (11,503 ) Foreign (5,417 ) (6,627 ) Loss before tax benefit (expense) $ (17,384 ) $ (18,130 ) |
Schedule of tax benefit (expense) | Year ended December 31, 2020 2019 Current taxes: Foreign $ (64 ) $ (204 ) Domestic - - $ (64 ) $ (204 ) Deferred taxes: Foreign $ 185 $ 316 Domestic - - $ 185 $ 316 Tax benefit (expense), net $ 121 $ 112 |
Schedule of unrecognized tax benefits related to uncertain tax positions | December 31, 2020 2019 Beginning balance $ 470 $ 354 Increases (decrease) related to tax positions taken during prior years 12 123 Effect of exchange rate 44 (7 ) Ending balance $ 526 $ 470 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of total revenue by solutions offered by geographic area | Year ended December 31, 2020 2019 United States $ 17,377 $ 17,971 Germany 8,500 8,778 Europe-Other 4,006 3,601 Asia Pacific 1,790 2,530 Israel 4,203 5,188 Other 512 323 $ 36,388 $ 38,391 |
Schedule of revenue generated by Customer Type | Three months ended Twelve months ended 2020 2019 2020 2019 OEM/Embedded Security (*) $ 6,694 $ 7,699 $ 29,465 $ 31,062 Enterprise/SMB (**) 1,750 1,830 6,923 7,329 $ 8,444 $ 9,529 $ 36,388 $ 38,391 (*) This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. (**) In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. |
Schedule of net amount of property and equipment | December 31 2020 2019 Israel $ 6,490 $ 7,439 United States 1,964 2,876 Germany 5,247 1,345 Other 1,147 1,445 $ 14,848 $ 13,105 |
Financial Expense, Net (Tables)
Financial Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of financial expense, net | Year ended December 31, 2020 2019 Income: Interest on cash and cash equivalents $ 2 $ 32 Expenses: Interest and accretion of discount (1,259 ) (565 ) Foreign currency exchange differences, net (325 ) (130 ) Other (65 ) (64 ) (1,649 ) (759 ) Total $ (1,647 ) $ (727 ) |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party balances | December 31 2020 2019 Interest expense accrual – Convertible Notes (*) $ 32 $ 32 Interest expense accrual – Convertible Debentures (*) 4 - Short term Convertible Notes (**) 10,000 - Long term Convertible Notes (**) - 10,000 Long term Convertible Debentures (***) 234 - (*) Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See notes 9b and 9c, respectively for further details. (**) Related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. (***) Related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. |
Schedule of related party transactions | Year ended December 31, 2020 2019 Interest expense on Convertible Notes (*) $ 575 $ 567 Interest expense on Convertible Debentures (**) $ 15 $ - (*) Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. (**) Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. |
General (Details)
General (Details) - Subsequent Event [Member] | Feb. 11, 2021USD ($)$ / sharesshares |
General (Details) [Line Items] | |
Ordinary shares issue | shares | 12,000,000 |
Purchase price | $ / shares | $ 1.15 |
Net proceeds | $ | $ 12,500 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies (Details) [Line Items] | ||
Restricted cash | $ 618 | |
Impairment loss | $ 224 | |
Issuance of treasury shares upon exercise of options and vesting of restricted share units | 1 | |
Deferred commissions | 1,095 | 961 |
Amortization of deferred commissions | 1,517 | 1,199 |
Provision for doubtful accounts | 201 | 129 |
Bad debt expense | $ 5 | $ 138 |
Ordinary shares were excluded (in Shares) | 23,803,669 | 11,352,573 |
Severance benefit | $ 40 | $ 47 |
largest amount percentage | 50.00% | |
Leases description | (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. | |
Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 1 year | |
Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 20 years | |
Capitalized Technology [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 1 year | |
Capitalized Technology [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 3 years |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets | 12 Months Ended |
Dec. 31, 2020 | |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 3 years |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 7 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 5 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 14 years |
Leasehold improvements [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over estimated useful lives of assets [Line Items] | |
Property and equipment | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of share-based payment award, stock options, valuation assumptions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies (Details) - Schedule of share-based payment award, stock options, valuation assumptions [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected term (years) | 4 years 36 days | |
Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of share-based payment award, stock options, valuation assumptions [Line Items] | ||
Volatility | 47.00% | 46.00% |
Risk-free interest rate | 0.23% | 1.50% |
Expected term (years) | 3 years 255 days | |
Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of share-based payment award, stock options, valuation assumptions [Line Items] | ||
Volatility | 60.00% | 50.00% |
Risk-free interest rate | 1.40% | 2.50% |
Expected term (years) | 4 years |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,349 | $ 1,946 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,816 | $ 14,754 |
Less accumulated depreciation | (10,868) | (10,344) |
Property and equipment, net | 3,948 | 4,410 |
Computers and peripheral equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,080 | 12,965 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 875 | 977 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 861 | $ 812 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets, Net (Details) [Line Items] | |||
Includes capitalized technology amount | $ 14,405 | $ 14,852 | |
Capitalized technology includes which amortization has not yet begun | 725 | 5,303 | |
Operating expenses | 37,344 | 40,503 | |
Amortization expense | $ 2,823 | 3,755 | |
Impairment loss | 224 | ||
R&D [Member] | |||
Intangible Assets, Net (Details) [Line Items] | |||
Impairment loss on intangible assets | $ 224 | ||
Operating expenses | $ 696 | ||
Capitalized interest | $ 49 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of definite-lived intangible assets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Original amounts: | |||
Total original amounts | $ 28,931 | $ 28,683 | |
Accumulated amortization: | |||
Accumulated amortization | (21,134) | (19,717) | |
Intangible assets, net | 7,797 | 8,966 | |
Customer contracts and relationships [Member] | |||
Original amounts: | |||
Total original amounts | 5,398 | 5,144 | |
Accumulated amortization: | |||
Accumulated amortization | (4,863) | (4,400) | |
Technology [Member] | |||
Original amounts: | |||
Total original amounts | [1] | 21,903 | 21,965 |
Accumulated amortization: | |||
Accumulated amortization | (14,934) | (14,183) | |
Trademarks [Member] | |||
Original amounts: | |||
Total original amounts | 1,630 | 1,574 | |
Accumulated amortization: | |||
Accumulated amortization | $ (1,337) | $ (1,134) | |
[1] | Includes $14,405 and $14,852 capitalized technology as of December 31, 2020 and 2019, respectively. Capitalized technology includes $725 and $5,303 for which amortization has not yet begun as of December 31, 2020 and 2019, respectively. |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of weighted average annual rates of amortization for intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Customer contracts and relationships [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average annual rates of amortization for intangible assets [Line Items] | |
Total intangible assets | 11 years 328 days |
Technology [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average annual rates of amortization for intangible assets [Line Items] | |
Total intangible assets | 2 years 255 days |
Trademarks [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average annual rates of amortization for intangible assets [Line Items] | |
Total intangible assets | 1 year 292 days |
Intangible Assets, Net (Detai_4
Intangible Assets, Net (Details) - Schedule of estimated aggregate amortization expenses for five succeeding fiscal years $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of estimated aggregate amortization expenses for five succeeding fiscal years [Abstract] | |
2021 | $ 3,028 |
2022 | 2,987 |
2023 | 1,076 |
2024 | 264 |
2025 | 132 |
Thereafter | 310 |
Total | $ 7,797 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of changes in carrying amount of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of changes in carrying amount of goodwill [Abstract] | ||
Beginning Balance | $ 20,246 | $ 20,519 |
Foreign currency translation adjustments | 1,230 | (273) |
Ending Balance | $ 21,476 | $ 20,246 |
Earn-Out Consideration (Details
Earn-Out Consideration (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Feb. 28, 2019 | May 31, 2018 | |
Earn-Out Consideration (Details) [Line Items] | ||
Payment of earn-out consideration | $ 2,700 | |
Earn out liabilities | $ 0 | |
Majority Shareholder [Member] | ||
Earn-Out Consideration (Details) [Line Items] | ||
Payment of earn-out consideration | $ 600 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | May 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies (Details) [Line Items] | ||||
Company received grants from the IIA | $ 3,699 | |||
Settlement agreement, description | In return for the IIA’s participation in this program, the Company is committed to pay royalties at a rate of 3% of the program’s developed product sales, up to 100% of the amount of grants received plus interest at annual LIBOR rate. | |||
Net of royalties paid or accrued | $ 2,714 | $ 2,765 | ||
Royalties due | 137 | 186 | ||
Payment of earn-out consideration | 2,680 | |||
Settle of earn-out consideration | $ 2,680 | 750 | 375 | |
Claims settlement amount | $ 256 | |||
License fees | $ 3,150 | |||
Other income | $ 375 | |||
Majority Shareholder [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Payment of earn-out consideration | $ 604 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disclosure Text Block [Abstract] | ||
Premises rent expense | $ 2,803 | $ 2,371 |
Number of real estate properties | 2 | |
Sublease receipts | $ 525 | $ 277 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating right-of-use assets and operating lease liabilities - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of operating right-of-use assets and operating lease liabilities [Abstract] | ||
Operating lease right-of-use assets | $ 10,900 | $ 8,695 |
Operating lease liabilities, current | 1,983 | 1,946 |
Operating lease liabilities long-term | 9,866 | $ 7,174 |
Total operating lease liabilities | $ 11,849 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of future minimum lease payments $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of future minimum lease payments [Abstract] | |
2021 | $ 2,433 |
2022 | 1,843 |
2023 | 1,635 |
2024 | 1,650 |
2025 | 1,663 |
Thereafter | 4,574 |
Total undiscounted lease payments | 13,798 |
Less: Interest | (1,949) |
Present value of lease liabilities | $ 11,849 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of weighted average remaining lease terms and discount rates for all of operating leases | Dec. 31, 2020 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases [Abstract] | |
Weighted average remaining lease term (years) | 4 years 135 days |
Weighted average discount rate | 7.20% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Mar. 31, 2020 | Nov. 07, 2019 | Dec. 05, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 30, 2019 | |
Shareholders' Equity (Details) [Line Items] | |||||||
Aggregate principal amount | $ 10,000,000 | ||||||
Debt instrument, description | The notes are unsecured, unsubordinated obligations of Cyren and carry a 5.75% interest rate, payable semi-annually in (i) 50% cash and (ii) 50% cash or ordinary shares at Cyren’s election. The notes have a 3-year term and are expected to mature in December 2021, unless converted in accordance with their terms prior to maturity. The notes were issued with a conversion price of $3.90 per share which was subject to adjustment using a weighted average ratchet mechanism based on the size and price of future equity offerings and the total shares outstanding. | the twelve months ending December 31, 2020, three of the debenture holders converted $364 of principal plus interest of their debentures, which was a portion of their holding. | |||||
Interest rate | 5.75% | ||||||
Gross proceeds | $ 8,019,000 | $ 316,000 | |||||
Conversion price, per share (in Dollars per share) | $ 3.73 | ||||||
Interest expense | $ 574,000 | 568,000 | |||||
Interest payments | 575,000 | 575,000 | |||||
Interest paid in cash | $ 288,000 | $ 431,000 | |||||
Issuance of shares (in Shares) | 279,650 | 82,482 | |||||
Accrued interest | $ 32,000 | ||||||
Issuance expenses | $ 800,000 | ||||||
Incurred interest expense | $ 601,000 | ||||||
Principal and interest issuance of shares (in Shares) | 483,009 | ||||||
Accrued interest | $ 167,000 | ||||||
Net of debt issuance costs | 9,200 | ||||||
Fair value of convertible debenture | $ 10,200 | ||||||
Debt Instrument, Convertible, Stock Price Trigger (in Dollars per share) | $ 1.03 | ||||||
Options grant/vest, description | The per share exercise price for options shall be no less than 100% of the fair market value per ordinary share on the date of grant. Any options and RSUs that are cancelled or not exercised within the option term become available for future grant. | ||||||
Ordinary shares available for future grant (in Shares) | 8,837,945 | 11,200,000 | |||||
Intrinsic value of options exercised | $ 0 | $ 201,000 | |||||
Weighted average grant date value of option granted (in Dollars per share) | $ 0.66 | $ 0.72 | |||||
Unrecognized compensation expense | $ 1,662,000 | ||||||
Recognized over remaining weighted average period | 2 years 80 days | ||||||
Options grant/vest, description | The options vest and become exercisable at a rate of 1/16 of the options every three months. | ||||||
Issuance of convertible notes [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Aggregate principal amount | $ 10,000,000 | ||||||
Convertible Notes Payable [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Aggregate principal amount | 10,250,000 | $ 1,000,000 | |||||
Interest rate | 5.75% | ||||||
Convertible Debentures [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Aggregate principal amount | $ 9,400,000 | ||||||
Conversion price, per share (in Dollars per share) | $ 0.75 | ||||||
Convertible shares (in Shares) | 1,333 | ||||||
Issuance of Convertible Debentures [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Aggregate principal amount | $ 9,900 | ||||||
Interest payments | $ 289,000 | ||||||
Issuance of shares (in Shares) | 280,946 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Weighted average grant date value of option granted (in Dollars per share) | $ 1.28 | ||||||
Unrecognized compensation expense | $ 2,348,000 | ||||||
Recognized over remaining weighted average period | 2 years 215 days | ||||||
Non-Employee Plan [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Number of ordinary shares reserved for issuance (in Shares) | 1,150,000 | ||||||
Ordinary shares available for future grant (in Shares) | 864,550 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of employees and directors' stock option activity - Employees and directors' stock option [Member] | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Shareholders' Equity (Details) - Schedule of employees and directors' stock option activity [Line Items] | |
Outstanding, Beginning balance (in Shares) | shares | 7,299,667 |
Outstanding, Beginning | $ 2.16 |
Outstanding, Beginning balance | 3 years 295 days |
Outstanding, Beginning balance (in Dollars) | $ | |
Granted (in Shares) | shares | 235,500 |
Granted | $ 1.50 |
Exercised (in Shares) | shares | |
Exercised | |
Expired and forfeited (in Shares) | shares | (1,329,307) |
Expired and forfeited | $ 2.38 |
Outstanding, Ending balance (in Shares) | shares | 6,205,860 |
Outstanding, Ending balance | $ 2.09 |
Outstanding, Ending balance | 3 years 65 days |
Outstanding, Ending balance (in Dollars) | $ | |
Options vested and expected to vest (in Shares) | shares | 6,036,777 |
Options vested and expected to vest | $ 2.10 |
Options vested and expected to vest | 3 years 51 days |
Options vested and expected to vest (in Dollars) | $ | |
Exercisable options (in Shares) | shares | 4,068,205 |
Exercisable options | $ 2.18 |
Exercisable options | 2 years 6 months |
Exercisable options (in Dollars) | $ | |
Weighted average fair value of options granted during the quarter | $ 0.66 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of employee and director options outstanding | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
$1.44 - $1.93 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 1,460,100 |
Weighted average remaining contractual life in years | 3 years 240 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 1.57 |
Options exercisable | shares | 742,452 |
Weighted average exercise price per share, exercisable | $ / shares | $ 1.53 |
$2.00 - $2.13 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 1,605,800 |
Weighted average remaining contractual life in years | 3 years 32 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 1.85 |
Options exercisable | shares | 1,176,121 |
Weighted average exercise price per share, exercisable | $ / shares | $ 1.90 |
$2.14 - $2.75 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 1,322,778 |
Weighted average remaining contractual life in years | 3 years 324 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 2.09 |
Options exercisable | shares | 661,314 |
Weighted average exercise price per share, exercisable | $ / shares | $ 2.10 |
$2.90 - $3.07 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 763,182 |
Weighted average remaining contractual life in years | 3 years 94 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 2.39 |
Options exercisable | shares | 512,805 |
Weighted average exercise price per share, exercisable | $ / shares | $ 2.38 |
$3.20 - $3.32 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 1,054,000 |
Weighted average remaining contractual life in years | 1 year 244 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 2.97 |
Options exercisable | shares | 975,513 |
Weighted average exercise price per share, exercisable | $ / shares | $ 2.97 |
Exercise Price Range [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding | shares | 6,205,860 |
Weighted average remaining contractual life in years | 3 years 65 days |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 2.09 |
Options exercisable | shares | 4,068,205 |
Weighted average exercise price per share, exercisable | $ / shares | $ 2.18 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details) - Schedule of options to non-employees | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
February 18, 2015 [Member] | |
Shareholders' Equity (Details) - Schedule of options to non-employees [Line Items] | |
Options outstanding | 3,000 |
Exercise price per share (in Dollars per share) | $ / shares | $ 3 |
Options exercisable | 3,000 |
Exercisable through | Feb-21 |
February 10, 2016 [Member] | |
Shareholders' Equity (Details) - Schedule of options to non-employees [Line Items] | |
Options outstanding | 40,000 |
Exercise price per share (in Dollars per share) | $ / shares | $ 1.44 |
Options exercisable | 40,000 |
Exercisable through | Feb-22 |
January 24, 2017 [Member] | |
Shareholders' Equity (Details) - Schedule of options to non-employees [Line Items] | |
Options outstanding | 25,000 |
Exercise price per share (in Dollars per share) | $ / shares | $ 2 |
Options exercisable | 25,000 |
Exercisable through | Jan-23 |
Issuance date [Member] | |
Shareholders' Equity (Details) - Schedule of options to non-employees [Line Items] | |
Options outstanding | 68,000 |
Options exercisable | 68,000 |
Shareholders' Equity (Details_4
Shareholders' Equity (Details) - Schedule of RSUs activity - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shareholders' Equity (Details) - Schedule of RSUs activity [Line Items] | |
Awarded and unvested | shares | 1,733,132 |
Awarded and unvested | $ / shares | $ 2.09 |
Granted | shares | 1,359,000 |
Granted | $ / shares | $ 1.28 |
Vested | shares | (856,132) |
Vested | $ / shares | $ 2.30 |
Forfeited | shares | (52,500) |
Forfeited | $ / shares | $ 2.30 |
Awarded and unvested | shares | 2,183,500 |
Awarded and unvested | $ / shares | $ 1.50 |
Shareholders' Equity (Details_5
Shareholders' Equity (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 2,391 | $ 2,360 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 105 | 241 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 291 | 467 |
Sales and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 244 | 356 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 1,751 | $ 1,296 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes (Details) [Line Items] | ||
Corporate tax rate, percentage | 23.00% | 23.00% |
Capital loss carryforwards | $ 102,027 | |
Increase in valuation allowance amount | $ 3,554 | $ 1,096 |
Foreign Tax Authority [Member] | ||
Income Taxes (Details) [Line Items] | ||
Corporate tax rate, percentage | 30.00% | |
Internal Revenue Service (IRS) [Member] | ||
Income Taxes (Details) [Line Items] | ||
Capital loss carryforwards | $ 17,845 | |
Federal tax purposes | 40,687 | |
State tax purposes | $ 10,595 | |
Carryforward losses, description | expire in the years 2021 through 2040. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of deferred taxes - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of deferred taxes [Abstract] | |||
Net operating loss carryforwards | $ 32,628 | $ 29,532 | |
Capital loss carryforwards | 4,104 | 4,105 | |
Other | 3,651 | 4,357 | |
Deferred tax assets before valuation allowance | 40,383 | 37,994 | |
Valuation allowance | (39,831) | (37,044) | |
Deferred tax asset, net of valuation allowance | 552 | 950 | |
Deferred tax liabilities: | |||
Intangibles | (823) | (1,497) | |
Temporary Differences | (384) | (249) | |
Deferred tax liability | (1,207) | (1,746) | |
Deferred tax liability, net | [1] | $ (655) | $ (796) |
[1] | The entire amount is due to foreign deferred taxes |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of loss before tax benefit (expense) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of loss before tax benefit (expense) [Abstract] | ||
Domestic | $ (11,967) | $ (11,503) |
Foreign | (5,417) | (6,627) |
Loss before tax benefit (expense) | $ (17,384) | $ (18,130) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of tax benefit (expense) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current taxes: | ||
Foreign | $ (64) | $ (204) |
Domestic | ||
Total Current taxes | (64) | (204) |
Deferred taxes: | ||
Foreign | 185 | 316 |
Domestic | ||
Total Deferred taxes | 185 | 316 |
Tax benefit (expense), net | $ 121 | $ 112 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of unrecognized tax benefits related to uncertain tax positions - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of unrecognized tax benefits related to uncertain tax positions [Abstract] | ||
Beginning balance | $ 470 | $ 354 |
Increases (decrease) related to tax positions taken during prior years | 12 | 123 |
Effect of exchange rate | 44 | (7) |
Ending balance | $ 526 | $ 470 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Segment reporting, major customer's description | During the year ended December 31, 2020, 23% of the Company’s revenues were derived from customer A. During the year ended December 31, 2019, 20% of the Company’s revenues were derived from customer A. | During the year ended December 31, 2019, 20% of the Company’s revenues were derived from customer A. |
Revenue remaining performance obligation | $ 39,011 | |
Description of revenue remaining performance obligation | The Company expects to recognize revenue on approximately 67% of these remaining performance obligations in 2021, and approximately 23% in 2022, with the remainder recognized thereafter. |
Segment and Geographic Inform_4
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | $ 36,388 | $ 38,391 |
United States [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 17,377 | 17,971 |
Germany [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 8,500 | 8,778 |
Europe-Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 4,006 | 3,601 |
Asia Pacific [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 1,790 | 2,530 |
Israel [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 4,203 | 5,188 |
Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | $ 512 | $ 323 |
Segment and Geographic Inform_5
Segment and Geographic Information (Details) - Schedule of revenue generated by customer type - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue from External Customer [Line Items] | |||||
Revenues from external customers | $ 8,444 | $ 9,529 | $ 36,388 | $ 38,391 | |
OEM/Embedded Security [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues from external customers | [1] | 6,694 | 7,699 | 29,465 | 31,062 |
Enterprise/SMB [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues from external customers | [2] | $ 1,750 | $ 1,830 | $ 6,923 | $ 7,329 |
[1] | This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. | ||||
[2] | In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. |
Segment and Geographic Inform_6
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment [Line Items] | ||
Net amount of property and equipment | $ 14,848 | $ 13,105 |
Israel [Member] | ||
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment [Line Items] | ||
Net amount of property and equipment | 6,490 | 7,439 |
United States [Member] | ||
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment [Line Items] | ||
Net amount of property and equipment | 1,964 | 2,876 |
Germany [Member] | ||
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment [Line Items] | ||
Net amount of property and equipment | 5,247 | 1,345 |
Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of net amount of property and equipment [Line Items] | ||
Net amount of property and equipment | $ 1,147 | $ 1,445 |
Financial Expense, Net (Details
Financial Expense, Net (Details) - Schedule of financial expense, net - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | ||
Interest on cash and cash equivalents | $ 2 | $ 32 |
Expenses: | ||
Interest and accretion of discount | (1,259) | (565) |
Foreign currency exchange differences, net | (325) | (130) |
Other | (65) | (64) |
Total financial expenses | (1,649) | (759) |
Total | $ (1,647) | $ (727) |
Related Parties (Details) - Sch
Related Parties (Details) - Schedule of related party balances - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of related party balances [Abstract] | |||
Interest expense accrual – Convertible Notes | [1] | $ 32 | $ 32 |
Interest expense accrual – Convertible Debentures | [1] | 4 | |
Short term Convertible Notes | [2] | 10,000 | |
Long term Convertible Notes | [2] | 10,000 | |
Long term Convertible Debentures | [3] | $ 234 | |
[1] | Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See notes 9b and 9c, respectively for further details. | ||
[2] | Related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. | ||
[3] | Related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. |
Related Parties (Details) - S_2
Related Parties (Details) - Schedule of related party transactions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of related party transactions [Abstract] | |||
Interest expense on Convertible Notes | [1] | $ 575 | $ 567 |
Interest expense on Convertible Debentures | [2] | $ 15 | |
[1] | Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. See note 9b. for further details. | ||
[2] | Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See note 9c. for further details. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2021 | Feb. 16, 2021 |
Subsequent Events (Details) [Line Items] | ||
Gross proceeds | $ 13,000 | |
Subsequent Event [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Ordinary shares purchased | 12,000,000 | |
Purchase price per share | $ 1.15 | |
Gross proceeds | $ 12,500 | |
Placement agent, description | The Company agreed to pay the placement agent a cash fee equal to 7% of the aggregate gross proceeds from the securities offering. The Company also agreed to pay the placement agent a management fee equal to 1% of the aggregate gross proceeds from the securities offering. The Company also incurred various other issuance costs associated with the securities purchase agreement | |
Subsequent Event [Member] | Private Placement [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Ordinary shares purchased | 720,000 | |
Placement agent, description | representing 6% of the aggregate number of Ordinary Shares sold in the Offering. The Placement Agent Warrants will have an exercise price equal to $1.4375, or 125% of the offering price, per ordinary share and will be exercisable commencing on August 16, 2021 for five years from the effective date of the Offering. |