Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information | |
Entity Registrant Name | JACADA LTD |
Entity Central Index Key | 1,095,747 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer | No |
Is Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 4,517,938 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,517 | $ 3,438 |
Short-term bank deposit | 502 | |
Marketable securities | 456 | 1,898 |
Trade receivables, net | 2,059 | 2,207 |
Restricted cash | 679 | 585 |
Prepaid expenses | 498 | 349 |
Other current assets | 635 | 496 |
Total current assets | 9,346 | 8,973 |
LONG-TERM ASSETS: | ||
Marketable securities | 455 | 1,161 |
Severance pay fund | 163 | 148 |
Deferred taxes | 46 | 72 |
Other assets | 81 | 120 |
Property and equipment, net | 439 | 388 |
Total long-term assets | 1,184 | 1,889 |
Total assets | 10,530 | 10,862 |
CURRENT LIABILITIES: | ||
Trade payables | 1,087 | 1,074 |
Accrued expenses and other liabilities | 1,195 | 1,636 |
Deferred revenues | 2,867 | 1,485 |
Total current liabilities | 5,149 | 4,195 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 660 | 202 |
Accrued severance pay | 401 | 418 |
Other long-term liabilities | 700 | 646 |
Total long-term liabilities | 1,761 | 1,266 |
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.04 par value - Authorized: 7,500,000 shares at December 31, 2016 and 2015; Issued: 5,629,734 and 5,297,054 shares at December 31, 2016 and 2015, respectively; Outstanding: 4,517,938 and 4,185,258 shares at December 31, 2016 and 2015, respectively. | 64 | 61 |
Additional paid-in capital | 78,122 | 76,202 |
Treasury shares at cost: 1,111,796 Ordinary shares at December 31, 2016 and 2015 | (17,863) | (17,863) |
Accumulated other comprehensive income, net | 131 | 388 |
Accumulated deficit | (56,834) | (53,387) |
Total shareholders' equity | 3,620 | 5,401 |
Total liabilities and shareholders' equity | $ 10,530 | $ 10,862 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Ordinary shares, shares authorized | 7,500,000 | 7,500,000 |
Ordinary shares, shares issued | 5,629,734 | 5,297,054 |
Ordinary shares, shares outstanding | 4,517,938 | 4,185,258 |
Treasury shares at cost, shares | 1,111,796 | 1,111,796 |
NIS | ||
Ordinary shares, par value per share | ₪ 0.04 | ₪ 0.04 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Software licenses | $ 1,743 | $ 4,459 | $ 2,437 |
Services | 8,145 | 8,443 | 9,687 |
Maintenance | 4,583 | 4,421 | 4,249 |
Total revenues | 14,471 | 17,323 | 16,373 |
Cost of revenues: | |||
Software licenses | 282 | 97 | 175 |
Services | 6,067 | 6,408 | 5,813 |
Maintenance | 563 | 479 | 496 |
Total cost of revenues | 6,912 | 6,984 | 6,484 |
Gross profit | 7,559 | 10,339 | 9,889 |
Operating expenses: | |||
Research and development | 2,933 | 3,177 | 3,481 |
Sales and marketing | 4,993 | 5,223 | 5,052 |
General and administrative | 3,212 | 3,058 | 2,998 |
Total operating expenses | 11,138 | 11,458 | 11,531 |
Operating loss | (3,579) | (1,119) | (1,642) |
Financial income (expense), net | 121 | (38) | 1,941 |
Income (loss) before taxes | (3,458) | (1,157) | 299 |
Income tax benefit (expenses) | 11 | (84) | (967) |
Net loss | $ (3,447) | $ (1,241) | $ (668) |
Basic net earnings (loss) per share | $ (0.81) | $ (0.30) | $ (0.16) |
Diluted net earnings (loss) per share | $ (0.81) | $ (0.30) | $ (0.16) |
Weighted average number of shares used in computing basic net earnings (loss) per share | 4,233,189 | 4,166,433 | 4,159,576 |
Weighted average number of shares used in computing diluted net earnings (loss) per share | 4,233,189 | 4,166,433 | 4,159,576 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (3,447) | $ (1,241) | $ (668) |
Other comprehensive loss | |||
Foreign currency translation adjustments | (28) | (128) | (125) |
Change in unrealized gains (losses) on cash flow hedges: | |||
Unrealized gain (loss) on cash flow hedges arising during the period | 8 | 8 | (226) |
Reclassification to earnings of realized losses (gains) on cash flow hedges | (46) | 134 | 45 |
Total Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (66) | 14 | (306) |
Change in unrealized gains (losses) on marketable securities: | |||
Unrealized gains (losses) on marketable securities, net of tax expense (benefit) | (56) | (345) | 581 |
Gains of marketable securities reclassified into earning, net of tax expenses | (135) | (1) | (1,624) |
Total Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (191) | (346) | (1,043) |
Other comprehensive loss, net of tax | (257) | (332) | (1,349) |
Comprehensive loss | $ (3,704) | $ (1,573) | $ (2,017) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary shares | Additional Paid-In Capital | Treasury Stock | Accumulated other comprehensive income | Accumulated Deficit | Total | |
Balance at Dec. 31, 2013 | $ 60 | $ 75,955 | $ (17,863) | $ 2,069 | $ (51,478) | $ 8,743 | |
Balance, shares at Dec. 31, 2013 | 4,159,134 | 4,159,134 | |||||
Exercise of stock options | [1] | 1 | $ 1 | ||||
Exercise of stock options, shares | 442 | ||||||
Stock-based compensation | 66 | 66 | |||||
Net loss | (668) | (668) | |||||
Other comprehensive loss | (1,349) | (1,349) | |||||
Balance at Dec. 31, 2014 | $ 60 | 76,022 | (17,863) | 720 | (52,146) | $ 6,793 | |
Balance Shares at Dec. 31, 2014 | 4,159,576 | 4,159,576 | |||||
Exercise of stock options | $ 1 | 36 | $ 37 | ||||
Exercise of stock options, shares | 25,682 | ||||||
Stock-based compensation | 144 | 144 | |||||
Net loss | (1,241) | (1,241) | |||||
Other comprehensive loss | (332) | (332) | |||||
Balance at Dec. 31, 2015 | $ 61 | 76,202 | (17,863) | 388 | (53,387) | $ 5,401 | |
Balance Shares at Dec. 31, 2015 | 4,185,258 | 4,185,258 | |||||
Issuance of shares, net | $ 3 | 1,249 | $ 1,252 | ||||
Issuance of shares, net, shares | 261,287 | ||||||
Exercise of stock options | [1] | 102 | $ 102 | ||||
Exercise of stock options, shares | 71,393 | 71,393 | |||||
Stock-based compensation | 569 | $ 569 | |||||
Net loss | (3,447) | (3,447) | |||||
Other comprehensive loss | (257) | (257) | |||||
Balance at Dec. 31, 2016 | $ 64 | $ 78,122 | $ (17,863) | $ 131 | $ (56,834) | $ 3,620 | |
Balance Shares at Dec. 31, 2016 | 4,517,938 | 4,517,938 | |||||
[1] | Represents an amount lower than $ 1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (3,447) | $ (1,241) | $ (668) |
Adjustments required to reconcile net loss from continuing operations to net cash used in operating activities: | |||
Depreciation | 174 | 151 | 190 |
Stock-based compensation | 569 | 144 | 66 |
Gain on sale of marketable securities | (135) | (1) | (1,862) |
Increase (decrease) in accrued severance pay, net | (32) | 30 | 23 |
Deferred taxes expense (benefit) | (127) | 49 | 230 |
Decrease (increase) in trade receivables | 63 | 805 | (443) |
Decrease (increase) in prepaid expenses and other current assets | (253) | (256) | 158 |
Increase (decrease) in trade payables | 40 | (110) | (9) |
Increase (decrease) in accrued expenses and other liabilities | (425) | (221) | 352 |
Increase (decrease) in deferred revenue | 1,888 | (853) | 34 |
Increase (decrease) in other long-term liabilities | 54 | 408 | (41) |
Other | 1 | ||
Net cash used in operating activities | (1,631) | (1,095) | (1,969) |
Cash flows from investing activities: | |||
Investment in short-term bank deposit | (502) | ||
Proceeds from sale of marketable securities | 5,793 | 3,350 | 7,879 |
Investment in marketable securities | (3,548) | (1,899) | (6,048) |
Purchase of property and equipment | (225) | (142) | (150) |
Decrease (increase) in restricted cash | (94) | 202 | (190) |
Net cash provided by investing activities | 1,424 | 1,511 | 1,491 |
Cash Flows from financing activities | |||
Proceeds from the issuance of shares, net | 1,252 | ||
Proceeds from exercise of stock options | 102 | 37 | 1 |
Net cash provided by financing activities | 1,354 | 37 | 1 |
Effect of exchange rate changes on cash | (68) | (63) | (107) |
Increase (decrease) in cash and cash equivalents | 1,079 | 390 | (584) |
Cash and cash equivalents at the beginning of the year | 3,438 | 3,048 | 3,632 |
Cash and cash equivalents at the end of the year | 4,517 | 3,438 | 3,048 |
Supplemental disclosure of cash flows activities: | |||
Cash paid during the year for taxes on income | 67 | 90 | 219 |
Non-cash investing information: | |||
Investment in leasehold improvements, computers and peripheral equipment upon accrued expenses and other liabilities and other long-term liabilities | $ 59 | $ 17 | $ 10 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL Jacada Ltd. ("Jacada") and its subsidiaries (collectively - "the Company") develop, market and support unified service desktop process optimization and omnichannel solutions that simplify and automate customer service processes and interactions across various channels including mobile, web, voice and chat. The Company generates revenues from licensing its software products and from services such as implementation and customization, consulting, training and maintenance and support. Jacada Ltd.'s wholly-owned subsidiaries include Jacada Inc., a corporation organized under the laws of the state of Delaware and Jacada (Europe) Limited, a company organized under the laws of England. Jacada (Europe) Limited owns 100% of the stock of Jacada Deutschland GmbH, a limited liability company organized under the laws of Germany. The majority of the Company's sales are made in North America and Europe. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars: Jacada'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 Jacada and certain of its subsidiaries operate. Thus, the functional and reporting currency of Jacada and certain of its subsidiaries is the U.S. dollar Jacada and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standard Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement 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 loss in shareholders' equity. c. Principles of consolidation: The consolidated financial statements include the accounts of Jacada and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. e. Short-term bank deposit: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values f. Investments in marketable securities: The Company accounts for investments in debt and equity marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income (expenses), net. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and if the entity has the intent to sell the security, including whether it is more likely than not that it will be required to sell the security before recovery of its cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations as financial income, net, and, with respect to debt securities which the entity does not expect to sell No other-than-temporary impairments were identified in 2016, 2015 and 2014. The gain on sale of marketable securities previously impaired amounted to $ 11, $ 0 and $ 172 for the years ended December 31, 2016, 2015 and 2014, respectively. g. Restricted cash: Restricted cash is invested in bank deposits, which are pledged in favor of the banks which provide to the Company guarantees with respect to office lease agreements, credit card and hedging transactions. h. Long-term lease deposits: Long-term deposits include long-term deposits for motor vehicles under operating leases, presented at their cost and are included in other assets in the consolidated balance sheets. i. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 14 - 33 Office furniture and equipment 7 - 15 Motor Vehicles 17 Leasehold improvements Over the shorter of the related lease period or the life of the asset j. Impairment of long-lived assets: The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During 2016, 2015 and 2014, no impairment losses were identified. k. Research and development costs: Research and development costs are charged to the statement of operations as incurred. ASC 985-20 "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. No material costs are incurred by the Company between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs have been expensed as incurred. l. 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, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company implements a two-step approach to recognize and measure 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. The Company classifies interest as income tax expenses. m. Revenue recognition: The Company derives its revenue principally from: · initial sales of licenses to use the Company's software either on a perpetual or term basis, including professional services such as customization, implementation and integration services, and associated support and maintenance, also called post-contract support or PCS, and · subscription fees for accessing the Company’s cloud-based software services, known as Software-as-a-Service. Perpetual or Term Licenses The basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Sales of software licenses are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond customary payment terms not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. The Company does not grant a right of return to its customers. In transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified subjective criteria, or for evaluation purposes, the Company recognizes revenues only when such acceptance has been obtained or as the acceptance provision lapses. However, in transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified objective criteria, the Company recognizes revenue if it can demonstrate that the delivered product meets the specified criteria prior to customer acceptance. The Company usually sells its software licenses as part of an overall solution offered to a customer that combines the sale of software licenses with customization, implementation and integration services. In arrangements which include significant customization of software and services, the Company accounts for the services together with the software under contract accounting in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". Revenues recognized in accordance with ASC 605-35 are accounted for using the percentage of completion method. The percentage of completion method is used when the required services are quantifiable, based on the estimated number of labor hours necessary to complete the project, and under that method revenues are recognized using labor hours incurred as the measure of progress towards completion. Revenue from software that does not require services, including licenses sold subsequent to the initial installation, and post-implementation consulting services, are recognized upon delivery, assuming all other revenue recognition criteria has been met. Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. Revenues from software arrangements involving multiple elements, such as software, PCS, consulting and training, are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. The residual method of allocation requires an entity to first allocate revenue to the fair value of the undelivered elements (maintenance and other services) and the residual revenue to the delivered element (software licenses). Any discount in the arrangement is allocated to the delivered element. VSOE of fair value for maintenance and other services is generally determined based on the price charged for the undelivered element when sold separately. The Company's process for establishing VSOE of fair value of PCS is through performance of VSOE compliance test which is an analysis of the entire population of PCS renewal activity for its installed base of customers. The Company's process for the establishment of VSOE of fair value for professional services is through a performance of an analysis of the entire population of separate sales of services. In certain instances, the Company does not have VSOE of fair value for PCS. In these instances, the entire arrangement consideration is recognized ratably over the contract term. Software as a Service (“SaaS”) SaaS contracts are accounted for under ASC 605, “Revenue Recognition”. The Company enters into SaaS arrangements with multiple deliverables that generally include subscription fees, PCS and professional services. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately with subscription services being recognized ratably over the contract term and professional services being recognized as performed. In determining whether professional services have standalone value, the Company considers the availability of the services from other vendors and the nature of the professional services. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value. Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its VSOE, if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. For professional services, the Company uses the established VSOE as the relative selling price. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription. The Company accounts for reimbursements received for out-of-pocket expenses incurred, in accordance with ASC 605-45-45, "Reimbursements Received for Out-of-Pocket Expenses Incurred", under which reimbursements received for out-of-pocket expenses incurred should be characterized as revenue in the statements of operations. The reimbursements received for out-of-pocket expenses for years ended December 31, 2016, 2015 and 2014 amounted to $ 362 $ 452 and $ 305, respectively. n. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all stock-based payment awards made to employees and directors. 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 statements of operations. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Forfeitures are 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. The Company estimates the fair value of stock options awards using the Black-Scholes option pricing model. This option-pricing model requires a number of assumptions, described below. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company used its historical stock prices for calculating volatility. The risk-free interest rate assumption is based on the yield from U.S. treasury bonds with an equivalent term of the Company's employee stock options. The Company determined the expected life of the options according to the average of the vesting period and the expiration period. The fair value for options granted in 2016, 2015 and 2014 was estimated at the date of grant using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Dividend yield 0% 0% 0% Expected volatility 65% 65% 64% Risk-free interest 1.37% 1.75% 1.83% Expected term (years) 5.6 5.5 5.5 The Company applies ASC 505-50, "Equity-Based Payments to Non-Employees" ("ASC 505") with respect to options issued to non-employees. o. Advertising expenses: Advertising expenses are charged to the statements of operations, as incurred. Advertising expenses for the years ended December 31, 2016, 2015 and 2014 were $ 301, $ 220 and $ 228, respectively. p. Severance pay: The Company's liability for severance pay for its Israeli employees 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. Israeli employees are entitled to severance equal to one month's salary for each year of employment or a portion thereof. The Company's liability for its Israeli employees, not under section 14 discussed below, is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits (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. Commencing from 2005, new employees of the Company are subject to Section 14 of the Severance Pay Law, under which the payments to the pension funds and insurance companies discharge the Company's obligation to the employees. Accumulated amounts in the pension funds and with the insurance companies are not under the control or administration of the Company, and accordingly, neither those amounts nor the corresponding accrual for severance pay are reflected in the balance sheet. The severance pay expense for the years ended December 31, 2016, 2015 and 2014 amounted to $ 159, $ 221 and $ 213, respectively. q. Fair value of financial instruments: The Company measures its investments in marketable securities and its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposit, restricted cash, trade receivables, other current assets, trade payables and other liabilities approximate their fair value due to the short-term maturities of such instruments. The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015: December 31, 2016 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: Equity $ 911 - $ 911 Foreign currency derivative contracts - (28 ) (28 ) $ 911 $ (28 ) $ 883 December 31, 2015 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: US Government treasuries $ 1,898 $ - $ 1,898 Equity 1,161 - 1,161 Foreign currency derivative contracts - 10 10 $ 3,059 $ 10 $ 3,069 r. Derivative instruments: The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company's exposure in currencies other than the dollar. The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative meets the definition of a hedge and is so designated, changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative designated as a hedge is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. s. Basic and diluted loss per share: Basic net loss per share is computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net loss per share is computed based on the weighted average number of Ordinary shares outstanding during each year, plus potentially dilutive Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". All outstanding stock options have been excluded from the calculation of the diluted net loss per share in 2016, 2015 and 2014. The total weighted average number of shares related to the outstanding stock options excluded from the calculations of diluted net loss per share due to their anti-dilutive effect was 778,545, 595,439 and 515,053 for the years ended December 31, 2016, 2015 and 2014, respectively. t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term bank deposits, marketable securities, trade receivables, restricted cash and foreign currency derivative contracts. The Company's marketable securities include investments in equity and US treasury bills. The Company's investment policy limits the amount the Company may invest in any one type of issuer, thereby reducing credit risk concentrations. In addition, the policy establishes minimum credit ratings for all types of securities. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The provision for doubtful accounts amounted $ 20 and $ 0 at December 31, 2016 and 2015, respectively. Bad debt expense amounted to $ 20 for the year ended December 31, 2016 and $ 0 for the years ended December 31, 2015 and 2014. u. Treasury shares: The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. v. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC 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 comprehensive loss relate to foreign currency translation adjustments, gains (losses) on hedging derivative instruments and unrealized gains (losses) on marketable securities. The following table shows the components of accumulated other comprehensive income, net of taxes, for the year ended December 31, 2016: Year ended December 31, 2016 Unrealized gains on marketable securities Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance 464 (86 ) 10 388 Other comprehensive income (loss) 97 (28 ) 8 77 Amounts reclassified from accumulated other comprehensive income (288 ) - (46 ) (334 ) Net current-period other comprehensive loss (191 ) (28 ) (38 ) (257 ) Ending balance 273 (114 ) (28 ) 131 v. Impact of recently issued accounting standards: In May 2014, the Financial Accounting Standards Board ("FASB") issued an ASU No. 2014-09 on revenue from contracts with customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In 2015, the FASB issued guidance to defer the effective date to fiscal years beginning after December 15, 2017 with early adoption for fiscal years beginning after December 15, 2016. In March, April, May and December 2016, the FASB issued additional updates regarding certain principal versus agent considerations, identifying performance obligations and licensing, various narrow scope improvements and technical corrections and improvements based on practical questions raised by users. The standard requires revenue to be recognized when control of promised goods or services is transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the standard is applied only to the period of adoption and the cumulative effect of applying the standard would be recognized at the beginning of that period. The Company is currently evaluating the timing and method of adoption of the new revenue standard and also the impact that the standard will have on its consolidated financial statements and related disclosures. In 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The Company adopted the provisions of ASU 2014-15 for the year ended December 31, 2016. In February 2016, the FASB issued ASU 2016-02 - Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The ASU is expected to impact our consolidated financial statements as we have certain operating lease arrangements. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017 and is applied retrospectively. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact that this ASU will have on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The Company will adopt this ASU on its effective date of January 1, 2017. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016- 13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company does not expect that this new guidance will have a material impact on the Company’s Consolidated Financial Statements. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES The Company invests in US Government treasuries and equity marketable securities, which are classified as available-for-sale. The following is a summary of the Company's investment in marketable securities: December 31, 2016 December 31, 2015 Gross unrealized Gross unrealized Fair Gross unrealized Gross unrealized Fair Cost gains Losses value Cost gains losses value Available-for-sale: US Government treasuries $ - $ - $ - $ - $ 1,898 $ - $ - $ 1,898 Equity securities $ 491 $ 420 $ - $ 911 $ 703 $ 458 $ - $ 1,161 $ 491 $ 420 $ - $ 911 $ 2,601 $ 458 $ - $ 3,059 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4:- PROPERTY AND EQUIPMENT, NET December 31, 2016 2015 Cost: Computers and peripheral equipment $ 2,561 $ 2,906 Office furniture and equipment 195 498 Motor vehicles 13 13 Leasehold improvements 359 352 3,128 3,769 Accumulated depreciation 2,689 3,381 Depreciated cost $ 439 $ 388 Depreciation expense for the years ended December 31, 2016, 2015 and 2014 amounted to $ 174, $ 151 and $ 190, respectively. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 5:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2016 2015 Employees and payroll accruals $ 921 $ 1,399 Accrued expenses 274 237 $ 1,195 $ 1,636 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Company's facilities are leased under various operating lease agreements, which expire on various dates, the latest of which is in 2020. Future minimum lease payments under non-cancelable operating leases as of December 31, 2016 are as follows: 2017 $ 398 2018 258 2019 221 2020 37 $ 914 Total rent expenses for the years ended December 31, 2016, 2015 and 2014 were $ 381, $ 400 and $ 396, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 7:- DERIVATIVE FINANCIAL INSTRUMENTS In order to reduce the impact of changes in foreign currency exchange rates on its results, the Company enters into foreign currency exchange forward contracts and option strategies to purchase and sell foreign currencies to hedge a significant portion of its anticipated New Israeli Shekel ("NIS") payroll payments. The Company designates these contracts for accounting purposes as cash flow hedges. The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. The effective portion of the gain or loss on the derivative instruments is initially recorded as a component of other comprehensive income, a separate component of shareholders' equity, and subsequently reclassified into earnings to the same line item as the related forecasted transaction and in the same period or periods during which the hedged exposure affects earnings. Hedge ineffectiveness, if any, are recognized immediately in financial income (expenses), net. Gain (loss) on the derivative instruments, which partially offset the foreign currency impact from the underlying exposures, reclassified from other comprehensive income into cost of services and operating expenses for the year ended December 31, 2016 were $ 2, and $ 62, respectively. The ineffective portion of the change in fair value of a cash flow hedge for the years ended December 31, 2016, 2015 and 2014 amounted to $ (18), $ 10 and $ 4, respectively. The notional amounts of the Company's derivative instruments as of December 31, 2016 amounted to $ 2,641. Gross notional amounts do not quantify risk or represent assets or liabilities of the Company, but are used in the calculation of settlements under the contracts. As of December 31, 2016, amounts related to derivatives designated as cash flow hedges and recorded in accumulated other comprehensive income (loss) totaled $ (28) which will be reclassified into statements of operations within the next 12 months and will partially offset the foreign currency impact from the underlying exposures. The amount ultimately realized in earnings will likely differ due to future changes in foreign exchange rates. The Company records all derivative instruments on the balance sheet at fair value. The fair value of the open foreign exchange contracts appears on the consolidated balance sheets as of December 31, 2016, as a liability in other current liabilities, in the amount of $ 28. The fair value of the Company's outstanding derivative instruments qualified as hedging instruments as of December 31, 2016 and 2015 is summarized below: Location in Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) statement Year ended December 31, of operations 2016 2015 2014 Derivatives in cash flow hedging relationship Foreign exchange option contracts Cost of sales and operating expenses $ - $ - $ 8 Foreign exchange forward contracts Financial expense (18 ) (10 ) 4 Foreign exchange forward contracts Cost of sales and operating expenses 64 (124 ) (57 ) $ 46 $ (134 ) $ (45 ) |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
SHAREHOLDERS' EQUITY: | |
SHAREHOLDERS' EQUITY | NOTE 8:- SHAREHOLDERS' EQUITY a. General: Ordinary shares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. The Company’s shares are traded in the over-the-counter market in the OTCQB Marketplace. b. Options issued to employees and directors: As of December 31, 2016, the Company had two Incentive Share Option Plans (the 2003 and 2012 plans) under which options are outstanding. The 2003 and 2012 plans provide for the grant of options to officers, management, employees and key employees, directors, consultants and others. The options granted generally become fully exercisable after four years and expire 7 years from the grant date. Any options from the 2003 and 2012 plans that are forfeited or canceled before expiration become available for future grants. Pursuant to the option plans, the exercise price of options shall be determined by the Company's Board of Directors or the Company's compensation committee but may not be less than the fair value of the Ordinary share on the grant date. As of December 31, 2016, an aggregate of 831,551 Ordinary shares of the Company were still available for future grant under the Incentive Share Option Plans. A summary of the Company's option activity and related information with respect to options granted to employees and directors for the year ended December 31, 2016 is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at the beginning of the year 641,089 $ 2.76 4.20 $ 718 Granted 164,000 $ 3.30 Exercised (71,393 ) $ 1.44 Forfeited (61,982 ) $ 4.70 Outstanding at end of year 671,714 $ 2.85 4.13 $ 1,534 Exercisable options at end of year 395,154 $ 2.27 2.96 $ 1,135 Vested and expected-to-vest at end of year 637,347 $ 2.79 4.04 $ 1,496 The total intrinsic value of stock options exercised during 2016, 2015 and 2014 was $ 264, $ 73 and $ 3, respectively. c. Options issued to consultants: The Company's outstanding options to consultants as of December 31, 2016, were as follows: Grant date Options for Ordinary shares Exercise price per share Options exercisable Exercisable through October, 2015 54,075 $ 4.52 16,898 October, 2022 54,075 16,898 d. As of December 31, 2016, there was $ 255 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.52 years. e. Stock-based compensation expense: The following table presents the stock-based compensation included in the line items below in the Company's consolidated statements of operations: Year ended December 31, 2016 2015 2014 Cost of revenues $ 26 $ 19 $ 4 Research and development 16 19 3 Sales and marketing 82 45 14 General and administrative 445 61 45 Total $ 569 $ 144 $ 66 f. In 2008, g. On November 14, 2016, as part of a securities purchase agreement, the Company issued 261,287 ordinary shares, nominal value NIS 0.04 per share, at an offering price of $ 5.25 per share. The Company received total proceeds of $ 1,252, net of $ 120 issuance expenses. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 9:- TAXES ON INCOME a. Corporate tax rates in Israel: Various industrial projects of Jacada have been granted "Approved Enterprise" and "Privileged Enterprise" status, which provides certain benefits, including tax exemptions and reduced tax rates. According to the provisions of the Investment Law, the Company's income is tax-exempt for a period of two years commencing with the year it first earns taxable income, and subject to corporate taxes at the reduced rates of 10% to 25%, for an additional period of five to eight years depending upon the level of foreign ownership of the Company. In January 2011, the Law for Economic Policy for 2011 and 2012 (Amended Legislation) was passed, and among other things, amended the Law, ("the Amendment") effective January 1, 2011. According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company will be able to opt to apply (the waiver is non-recourse) the Amendment and from then on it will be subject to the amended tax rates of 16%. In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law ("Amendment 73") was published. The Amendment prescribes special tax tracks for technological enterprises, which are subject to rules that are to be issued by the Minister of Finance by March 31, 2017. As the Company currently has no taxable income, these benefits have not yet commenced for all programs since inception. Income not eligible for Approved Enterprise benefits are taxed at a regular rate, as follows: 2016 – 25% and for 2015 and 2014 – 26.5%. On December 29, 2016, the Israeli Government legislated a reduction in corporate income tax rates from 25.0% to 24.0% in 2017 and to 23.0% in 2018 and thereafter. The Company estimates that the effect of the change in tax rates will not lead to material change in the amounts in the consolidated financial statements. b. Tax benefits under the Law for the Encouragement of Industry (Taxation), 1969: The Company believes it meets all the criteria to be classified as "industrial company", as defined by this law and, as such, is entitled to certain tax benefits, mainly accelerated depreciation of machinery and equipment, as prescribed by regulations published under the Inflationary Adjustments Law, the right to claim public issuance expenses and amortization of intangible property rights as a deduction for tax purposes. c. Net operating losses carryforward: As of December 31, 2016, the Company had an Israeli net operating loss carryforward of approximately $ 48,870 which can be carried forward and offset against taxable income with no expiration date. As of December 31, 2016, the European subsidiaries had net operating losses carryforward for income tax purposes, of approximately $ 1,895 which can be carried forward and offset against taxable income with no expiration date. d. Theoretical tax: The main reconciling items between the statutory tax rate of the Company and the effective tax rate are the losses outside of the U.S, mainly in Israel, amounting to $ 3,368, $ 1,931 and $ 2,258 for the years ended December 31, 2016, 2015 and 2014, respectively, for which valuation allowance was provided in each year.. e. 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. Significant components of the Company's deferred tax assets are as follows: December 31, 2016 2015 Deferred tax assets: Operating loss carryforward $ 11,833 $ 12,309 Reserves and allowances 1,025 1,216 Total deferred tax asset before valuation allowance 12,858 13,525 Valuation allowance (12,644 ) (13,272 ) Deferred tax assets 214 253 Deferred tax liabilities (168 ) (181 ) Deferred taxes $ 46 $ 72 The Company's subsidiary in Israel has provided valuation allowance in respect of deferred tax assets resulting from carry forward of net operating loss. f. Income (loss) before taxes is comprised as follows: Year ended December 31, 2016 2015 2014 Domestic $ (3,808 ) $ (1,931 ) $ (2,258 ) Foreign 350 774 2,557 $ (3,458 ) $ (1,157 ) $ 299 g. Income tax expense (benefit) is comprised as follows: Year ended December 31, 2016 2015 2014 Current tax expenses (benefit) $ 116 $ 35 $ 737 Deferred tax expenses (benefit) (127 ) 49 230 (11 ) $ 84 $ 967 Domestic $ - $ - $ - Foreign (11 ) 84 967 $ (11 ) $ 84 $ 967 h. Uncertain tax positions: The following table represents the amount of unrecognized tax benefits with respect to uncertain tax positions. The entire balance of unrecognized tax benefits, if recognized, would reduce the Company's annual effective tax rate. Year ended December 31, 2016 2015 Beginning balance $ 448 $ 30 Change in unrecognized tax benefits with respect to uncertain tax positions: 95 418 Ending Balance $ 543 $ 448 As of December 31, 2016 and 2015, accrued interest related to uncertain tax positions amounted to $ 51 and $ 30, respectively. As of December 31, 2016, Jacada's 2012 tax filling has received final tax assessments. |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | NOTE 10:- GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA a. Summary information about geographical areas: The Company manages its business on a basis of one reportable segment (see Note 1a for a brief description of the Company's business) and follows the requirements of ASC 280 "Segment Reporting". The following is a summary of revenues within geographic areas based on the end-customer's location: Year ended December 31, 2016 2015 2014 United States $ 6,970 $ 8,536 $ 9,929 United Kingdom 1,930 1,518 1,513 Germany 1,549 1,316 1,976 Netherlands 1,465 1,577 1,668 South Africa 933 1,479 613 Ireland 182 1,230 - Other 1,442 1,667 674 $ 14,471 $ 17,323 $ 16,373 December 31, 2016 2015 Property and equipment: Israel $ 282 $ 202 North America 157 186 $ 439 $ 388 b. Major customers' data as a percentage of total revenues: Year ended December 31, 2016 2015 2014 Customer A 11 % 8 % 12 % Customer B 10 % 9 % 10 % Customer C 2 % 3 % 23 % |
SUPPLEMENTARY DATA ON SELECTED
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Income Statement Elements [Abstract] | |
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS | NOTE 11:- SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS a. Financial income (expenses), net: Year ended December 31, 2016 2015 2014 Financial income: Foreign currency translation adjustments $ - $ - $ 12 Realized gain on marketable securities 135 1 1,862 Interest income and amortization/accretion of premium/discount on marketable securities or bank deposits 3 1 2 Dividend on equity marketable securities 25 30 85 163 32 1,961 Financial expenses: Bank charges (28 ) (25 ) (20 ) Foreign currency translation adjustments (14 ) (45 ) - (42 ) (70 ) (20 ) $ 121 $ (38 ) $ 1,941 |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: Jacada'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 Jacada and certain of its subsidiaries operate. Thus, the functional and reporting currency of Jacada and certain of its subsidiaries is the U.S. dollar Jacada and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standard Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement 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 loss in shareholders' equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of Jacada and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. |
Short-term bank deposit | e. Short-term bank deposit: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values |
Investments in marketable securities | f. Investments in marketable securities: The Company accounts for investments in debt and equity marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income (expenses), net. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and if the entity has the intent to sell the security, including whether it is more likely than not that it will be required to sell the security before recovery of its cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations as financial income, net, and, with respect to debt securities which the entity does not expect to sell No other-than-temporary impairments were identified in 2016, 2015 and 2014. The gain on sale of marketable securities previously impaired amounted to $ 11, $ 0 and $ 172 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Restricted cash | g. Restricted cash: Restricted cash is invested in bank deposits, which are pledged in favor of the banks which provide to the Company guarantees with respect to office lease agreements, credit card and hedging transactions. |
Long-term lease deposits | h. Long-term lease deposits: Long-term deposits include long-term deposits for motor vehicles under operating leases, presented at their cost and are included in other assets in the consolidated balance sheets. |
Property and equipment, net | i. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 14 - 33 Office furniture and equipment 7 - 15 Motor Vehicles 17 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Impairment of long-lived assets | j. Impairment of long-lived assets: The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During 2016, 2015 and 2014, no impairment losses were identified. |
Research and development costs | k. Research and development costs: Research and development costs are charged to the statement of operations as incurred. ASC 985-20 "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. No material costs are incurred by the Company between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs have been expensed as incurred. |
Income taxes | l. 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, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company implements a two-step approach to recognize and measure 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. The Company classifies interest as income tax expenses. |
Revenue recognition | m. Revenue recognition: The Company derives its revenue principally from: · initial sales of licenses to use the Company's software either on a perpetual or term basis, including professional services such as customization, implementation and integration services, and associated support and maintenance, also called post-contract support or PCS, and · subscription fees for accessing the Company’s cloud-based software services, known as Software-as-a-Service. Perpetual or Term Licenses The basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Sales of software licenses are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond customary payment terms not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. The Company does not grant a right of return to its customers. In transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified subjective criteria, or for evaluation purposes, the Company recognizes revenues only when such acceptance has been obtained or as the acceptance provision lapses. However, in transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified objective criteria, the Company recognizes revenue if it can demonstrate that the delivered product meets the specified criteria prior to customer acceptance. The Company usually sells its software licenses as part of an overall solution offered to a customer that combines the sale of software licenses with customization, implementation and integration services. In arrangements which include significant customization of software and services, the Company accounts for the services together with the software under contract accounting in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". Revenues recognized in accordance with ASC 605-35 are accounted for using the percentage of completion method. The percentage of completion method is used when the required services are quantifiable, based on the estimated number of labor hours necessary to complete the project, and under that method revenues are recognized using labor hours incurred as the measure of progress towards completion. Revenue from software that does not require services, including licenses sold subsequent to the initial installation, and post-implementation consulting services, are recognized upon delivery, assuming all other revenue recognition criteria has been met. Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. Revenues from software arrangements involving multiple elements, such as software, PCS, consulting and training, are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. The residual method of allocation requires an entity to first allocate revenue to the fair value of the undelivered elements (maintenance and other services) and the residual revenue to the delivered element (software licenses). Any discount in the arrangement is allocated to the delivered element. VSOE of fair value for maintenance and other services is generally determined based on the price charged for the undelivered element when sold separately. The Company's process for establishing VSOE of fair value of PCS is through performance of VSOE compliance test which is an analysis of the entire population of PCS renewal activity for its installed base of customers. The Company's process for the establishment of VSOE of fair value for professional services is through a performance of an analysis of the entire population of separate sales of services. In certain instances, the Company does not have VSOE of fair value for PCS. In these instances, the entire arrangement consideration is recognized ratably over the contract term. Software as a Service (“SaaS”) SaaS contracts are accounted for under ASC 605, “Revenue Recognition”. The Company enters into SaaS arrangements with multiple deliverables that generally include subscription fees, PCS and professional services. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately with subscription services being recognized ratably over the contract term and professional services being recognized as performed. In determining whether professional services have standalone value, the Company considers the availability of the services from other vendors and the nature of the professional services. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value. Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its VSOE, if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. For professional services, the Company uses the established VSOE as the relative selling price. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription. The Company accounts for reimbursements received for out-of-pocket expenses incurred, in accordance with ASC 605-45-45, "Reimbursements Received for Out-of-Pocket Expenses Incurred", under which reimbursements received for out-of-pocket expenses incurred should be characterized as revenue in the statements of operations. The reimbursements received for out-of-pocket expenses for years ended December 31, 2016, 2015 and 2014 amounted to $ 362 $ 452 and $ 305, respectively. |
Accounting for stock-based compensation | n. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all stock-based payment awards made to employees and directors. 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 statements of operations. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Forfeitures are 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. The Company estimates the fair value of stock options awards using the Black-Scholes option pricing model. This option-pricing model requires a number of assumptions, described below. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company used its historical stock prices for calculating volatility. The risk-free interest rate assumption is based on the yield from U.S. treasury bonds with an equivalent term of the Company's employee stock options. The Company determined the expected life of the options according to the average of the vesting period and the expiration period. The fair value for options granted in 2016, 2015 and 2014 was estimated at the date of grant using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Dividend yield 0% 0% 0% Expected volatility 65% 65% 64% Risk-free interest 1.37% 1.75% 1.83% Expected term (years) 5.6 5.5 5.5 The Company applies ASC 505-50, "Equity-Based Payments to Non-Employees" ("ASC 505") with respect to options issued to non-employees. |
Advertising expenses | o. Advertising expenses: Advertising expenses are charged to the statements of operations, as incurred. Advertising expenses for the years ended December 31, 2016, 2015 and 2014 were $ 301, $ 220 and $ 228, respectively. |
Severance pay | p. Severance pay: The Company's liability for severance pay for its Israeli employees 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. Israeli employees are entitled to severance equal to one month's salary for each year of employment or a portion thereof. The Company's liability for its Israeli employees, not under section 14 discussed below, is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits (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. Commencing from 2005, new employees of the Company are subject to Section 14 of the Severance Pay Law, under which the payments to the pension funds and insurance companies discharge the Company's obligation to the employees. Accumulated amounts in the pension funds and with the insurance companies are not under the control or administration of the Company, and accordingly, neither those amounts nor the corresponding accrual for severance pay are reflected in the balance sheet. The severance pay expense for the years ended December 31, 2016, 2015 and 2014 amounted to $ 159, $ 221 and $ 213, respectively. |
Fair value of financial instruments | q. Fair value of financial instruments: The Company measures its investments in marketable securities and its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposit, restricted cash, trade receivables, other current assets, trade payables and other liabilities approximate their fair value due to the short-term maturities of such instruments. The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015: December 31, 2016 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: Equity $ 911 - $ 911 Foreign currency derivative contracts - (28 ) (28 ) $ 911 $ (28 ) $ 883 December 31, 2015 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: US Government treasuries $ 1,898 $ - $ 1,898 Equity 1,161 - 1,161 Foreign currency derivative contracts - 10 10 $ 3,059 $ 10 $ 3,069 |
Derivative instruments | r. Derivative instruments: The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company's exposure in currencies other than the dollar. The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative meets the definition of a hedge and is so designated, changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative designated as a hedge is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. |
Basic and diluted loss per share | s. Basic and diluted loss per share: Basic net loss per share is computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net loss per share is computed based on the weighted average number of Ordinary shares outstanding during each year, plus potentially dilutive Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". All outstanding stock options have been excluded from the calculation of the diluted net loss per share in 2016, 2015 and 2014. The total weighted average number of shares related to the outstanding stock options excluded from the calculations of diluted net loss per share due to their anti-dilutive effect was 778,545, 595,439 and 515,053 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Concentrations of credit risk | t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term bank deposits, marketable securities, trade receivables, restricted cash and foreign currency derivative contracts. The Company's marketable securities include investments in equity and US treasury bills. The Company's investment policy limits the amount the Company may invest in any one type of issuer, thereby reducing credit risk concentrations. In addition, the policy establishes minimum credit ratings for all types of securities. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The provision for doubtful accounts amounted $ 20 and $ 0 at December 31, 2016 and 2015, respectively. Bad debt expense amounted to $ 20 for the year ended December 31, 2016 and $ 0 for the years ended December 31, 2015 and 2014. |
Treasury shares | u. Treasury shares: The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. |
Comprehensive loss | v. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC 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 comprehensive loss relate to foreign currency translation adjustments, gains (losses) on hedging derivative instruments and unrealized gains (losses) on marketable securities. The following table shows the components of accumulated other comprehensive income, net of taxes, for the year ended December 31, 2016: Year ended December 31, 2016 Unrealized gains on marketable securities Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance 464 (86 ) 10 388 Other comprehensive income (loss) 97 (28 ) 8 77 Amounts reclassified from accumulated other comprehensive income (288 ) - (46 ) (334 ) Net current-period other comprehensive loss (191 ) (28 ) (38 ) (257 ) Ending balance 273 (114 ) (28 ) 131 |
Impact of recently issued accounting standards | v. Impact of recently issued accounting standards: In May 2014, the Financial Accounting Standards Board ("FASB") issued an ASU No. 2014-09 on revenue from contracts with customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In 2015, the FASB issued guidance to defer the effective date to fiscal years beginning after December 15, 2017 with early adoption for fiscal years beginning after December 15, 2016. In March, April, May and December 2016, the FASB issued additional updates regarding certain principal versus agent considerations, identifying performance obligations and licensing, various narrow scope improvements and technical corrections and improvements based on practical questions raised by users. The standard requires revenue to be recognized when control of promised goods or services is transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the standard is applied only to the period of adoption and the cumulative effect of applying the standard would be recognized at the beginning of that period. The Company is currently evaluating the timing and method of adoption of the new revenue standard and also the impact that the standard will have on its consolidated financial statements and related disclosures. In 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The Company adopted the provisions of ASU 2014-15 for the year ended December 31, 2016. In February 2016, the FASB issued ASU 2016-02 - Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The ASU is expected to impact our consolidated financial statements as we have certain operating lease arrangements. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017 and is applied retrospectively. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact that this ASU will have on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The Company will adopt this ASU on its effective date of January 1, 2017. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016- 13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company does not expect that this new guidance will have a material impact on the Company’s Consolidated Financial Statements. |
SIGNIFICANT ACCOUNTING POLICI20
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 14 - 33 Office furniture and equipment 7 - 15 Motor Vehicles 17 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Schedule of Weighted Average Assumptions Used | The fair value for options granted in 2016, 2015 and 2014 was estimated at the date of grant using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Dividend yield 0% 0% 0% Expected volatility 65% 65% 64% Risk-free interest 1.37% 1.75% 1.83% Expected term (years) 5.6 5.5 5.5 |
Schedule of Measurement of Fair value of assets and Liabilities | The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015: December 31, 2016 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: Equity $ 911 - $ 911 Foreign currency derivative contracts - (28 ) (28 ) $ 911 $ (28 ) $ 883 December 31, 2015 Fair value measurements using input type Level 1 Level 2 Total Marketable securities: US Government treasuries $ 1,898 $ - $ 1,898 Equity 1,161 - 1,161 Foreign currency derivative contracts - 10 10 $ 3,059 $ 10 $ 3,069 |
Schedule of components of accumulated other comprehensive income | The following table shows the components of accumulated other comprehensive income, net of taxes, for the year ended December 31, 2016: Year ended December 31, 2016 Unrealized gains on marketable securities Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance 464 (86 ) 10 388 Other comprehensive income (loss) 97 (28 ) 8 77 Amounts reclassified from accumulated other comprehensive income (288 ) - (46 ) (334 ) Net current-period other comprehensive loss (191 ) (28 ) (38 ) (257 ) Ending balance 273 (114 ) (28 ) 131 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | The following is a summary of the Company's investment in marketable securities: December 31, 2016 December 31, 2015 Gross unrealized Gross unrealized Fair Gross unrealized Gross unrealized Fair Cost gains Losses value Cost gains losses value Available-for-sale: US Government treasuries $ - $ - $ - $ - $ 1,898 $ - $ - $ 1,898 Equity securities $ 491 $ 420 $ - $ 911 $ 703 $ 458 $ - $ 1,161 $ 491 $ 420 $ - $ 911 $ 2,601 $ 458 $ - $ 3,059 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | December 31, 2016 2015 Cost: Computers and peripheral equipment $ 2,561 $ 2,906 Office furniture and equipment 195 498 Motor vehicles 13 13 Leasehold improvements 359 352 3,128 3,769 Accumulated depreciation 2,689 3,381 Depreciated cost $ 439 $ 388 |
ACCRUED EXPENSES AND OTHER LI23
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | December 31, 2016 2015 Employees and payroll accruals $ 921 $ 1,399 Accrued expenses 274 237 $ 1,195 $ 1,636 |
COMMITMENTS AND CONTINGENT LI24
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Operating Leases | The Company's facilities are leased under various operating lease agreements, which expire on various dates, the latest of which is in 2020. Future minimum lease payments under non-cancelable operating leases as of December 31, 2016 are as follows: 2017 $ 398 2018 258 2019 221 2020 37 $ 914 |
DERIVATIVE FINANCIAL INSTRUME25
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Outstanding Derivative Instruments | The fair value of the Company's outstanding derivative instruments qualified as hedging instruments as of December 31, 2016 and 2015 is summarized below: Location in Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) statement Year ended December 31, of operations 2016 2015 2014 Derivatives in cash flow hedging relationship Foreign exchange option contracts Cost of sales and operating expenses $ - $ - $ 8 Foreign exchange forward contracts Financial expense (18 ) (10 ) 4 Foreign exchange forward contracts Cost of sales and operating expenses 64 (124 ) (57 ) $ 46 $ (134 ) $ (45 ) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | A summary of the Company's option activity and related information with respect to options granted to employees and directors for the year ended December 31, 2016 is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at the beginning of the year 641,089 $ 2.76 4.20 $ 718 Granted 164,000 $ 3.30 Exercised (71,393 ) $ 1.44 Forfeited (61,982 ) $ 4.70 Outstanding at end of year 671,714 $ 2.85 4.13 $ 1,534 Exercisable options at end of year 395,154 $ 2.27 2.96 $ 1,135 Vested and expected-to-vest at end of year 637,347 $ 2.79 4.04 $ 1,496 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHAREHOLDERS' EQUITY: | |
Stock Option Activity | A summary of the Company's option activity and related information with respect to options granted to employees and directors for the year ended December 31, 2016 is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at the beginning of the year 641,089 $ 2.76 4.20 $ 718 Granted 164,000 $ 3.30 Exercised (71,393 ) $ 1.44 Forfeited (61,982 ) $ 4.70 Outstanding at end of year 671,714 $ 2.85 4.13 $ 1,534 Exercisable options at end of year 395,154 $ 2.27 2.96 $ 1,135 Vested and expected-to-vest at end of year 637,347 $ 2.79 4.04 $ 1,496 |
Schedule of Outstanding Options to Consultants | The Company's outstanding options to consultants as of December 31, 2016, were as follows: Grant date Options for Ordinary shares Exercise price per share Options exercisable Exercisable through October, 2015 54,075 $ 4.52 16,898 October, 2022 54,075 16,898 |
Schedule of Stock-Based Compensation Expense | The following table presents the stock-based compensation included in the line items below in the Company's consolidated statements of operations: Year ended December 31, 2016 2015 2014 Cost of revenues $ 26 $ 19 $ 4 Research and development 16 19 3 Sales and marketing 82 45 14 General and administrative 445 61 45 Total $ 569 $ 144 $ 66 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | 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. Significant components of the Company's deferred tax assets are as follows: December 31, 2016 2015 Deferred tax assets: Operating loss carryforward $ 11,833 $ 12,309 Reserves and allowances 1,025 1,216 Total deferred tax asset before valuation allowance 12,858 13,525 Valuation allowance (12,644 ) (13,272 ) Deferred tax assets 214 253 Deferred tax liabilities (168 ) (181 ) Deferred taxes $ 46 $ 72 |
Schedule of Loss (Income) from Operations before Taxes | Income (loss) before taxes is comprised as follows: Year ended December 31, 2016 2015 2014 Domestic $ (3,808 ) $ (1,931 ) $ (2,258 ) Foreign 350 774 2,557 $ (3,458 ) $ (1,157 ) $ 299 |
Schedule of Income Tax Expense | Income tax expense (benefit) is comprised as follows: Year ended December 31, 2016 2015 2014 Current tax expenses (benefit) $ 116 $ 35 $ 737 Deferred tax expenses (benefit) (127 ) 49 230 (11 ) $ 84 $ 967 Domestic $ - $ - $ - Foreign (11 ) 84 967 $ (11 ) $ 84 $ 967 |
Shedule of Unrecognized tax benefits | The following table represents the amount of unrecognized tax benefits with respect to uncertain tax positions. The entire balance of unrecognized tax benefits, if recognized, would reduce the Company's annual effective tax rate. Year ended December 31, 2016 2015 Beginning balance $ 448 $ 30 Change in unrecognized tax benefits with respect to uncertain tax positions: 95 418 Ending Balance $ 543 $ 448 |
GEOGRAPHIC INFORMATION AND MA29
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Area | The following is a summary of revenues within geographic areas based on the end-customer's location: Year ended December 31, 2016 2015 2014 United States $ 6,970 $ 8,536 $ 9,929 United Kingdom 1,930 1,518 1,513 Germany 1,549 1,316 1,976 Netherlands 1,465 1,577 1,668 South Africa 933 1,479 613 Ireland 182 1,230 - Other 1,442 1,667 674 $ 14,471 $ 17,323 $ 16,373 |
Schedule of Long-Lived Assets by Geographic Area | December 31, 2016 2015 Property and equipment: Israel $ 282 $ 202 North America 157 186 $ 439 $ 388 |
Percentage of Total Revenues | Major customers' data as a percentage of total revenues: Year ended December 31, 2016 2015 2014 Customer A 11 % 8 % 12 % Customer B 10 % 9 % 10 % Customer C 2 % 3 % 23 % |
SUPPLEMENTARY DATA ON SELECTE30
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Income Statement Elements [Abstract] | |
Supplemental Income Statement | Financial income (expenses), net: Year ended December 31, 2016 2015 2014 Financial income: Foreign currency translation adjustments $ - $ - $ 12 Realized gain on marketable securities 135 1 1,862 Interest income and amortization/accretion of premium/discount on marketable securities or bank deposits 3 1 2 Dividend on equity marketable securities 25 30 85 163 32 1,961 Financial expenses: Bank charges (28 ) (25 ) (20 ) Foreign currency translation adjustments (14 ) (45 ) - (42 ) (70 ) (20 ) $ 121 $ (38 ) $ 1,941 |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 14 years |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 33 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 17 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Over the shorter of the related lease period  or the life of the asset |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 65.00% | 65.00% | 64.00% |
Risk-free interest | 1.37% | 1.75% | 1.83% |
Expected term (years) | 5 years 7 months 6 days | 5 years 6 months | 5 years 6 months |
SIGNIFICANT ACCOUNTING POLICI33
SIGNIFICANT ACCOUNTING POLICIES (Fair value measurement of assets and Liabilities) (Details) (USD $) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | $ 10 | |
Foreign currency derivative contracts, liabilities | $ (28) | |
Total | 883 | 3,069 |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 911 | 1,161 |
US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 1,898 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | ||
Foreign currency derivative contracts, liabilities | ||
Total | 911 | 3,059 |
Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 911 | 1,161 |
Level 1 [Member] | US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 1,898 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | 10 | |
Foreign currency derivative contracts, liabilities | (28) | |
Total | 10 | |
Total | (28) | |
Level 2 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | ||
Level 2 [Member] | US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities |
SIGNIFICANT ACCOUNTING POLICI34
SIGNIFICANT ACCOUNTING POLICIES (Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 388 | ||
Other comprehensive income (loss) | 77 | ||
Amounts reclassified from accumulated other comprehensive income | (334) | ||
Net current-period other comprehensive loss | (257) | $ (332) | $ (1,349) |
Ending balance | 131 | 388 | |
Unrealized gains on marketable securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 464 | ||
Other comprehensive income (loss) | 97 | ||
Amounts reclassified from accumulated other comprehensive income | (288) | ||
Net current-period other comprehensive loss | (191) | ||
Ending balance | 273 | 464 | |
Foreign currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (86) | ||
Other comprehensive income (loss) | (28) | ||
Amounts reclassified from accumulated other comprehensive income | |||
Net current-period other comprehensive loss | (28) | ||
Ending balance | (114) | (86) | |
Unrealized gains (losses) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 10 | ||
Other comprehensive income (loss) | 8 | ||
Amounts reclassified from accumulated other comprehensive income | (46) | ||
Net current-period other comprehensive loss | (38) | ||
Ending balance | $ (28) | $ 10 |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Other than temporary impairment of marketable securities | $ 0 | $ 0 | $ 0 |
Gain on sale of marketable securities previously impaired | 11 | 0 | 172 |
Reimbursement revenue | 362 | 452 | 305 |
Advertising expense | 301 | 220 | 228 |
Severance expense | $ 159 | $ 221 | $ 213 |
Weighted average number of anti-dilutive shares excluded from the calculation of diluted net earnings | 778,545 | 595,439 | 515,053 |
Provision for doubtful accounts | $ 20 | $ 0 | |
Bad debt expense | $ 20 | $ 0 | $ 0 |
MARKETABLE SECURITIES (Investme
MARKETABLE SECURITIES (Investments In Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 491 | $ 2,601 |
Gross unrealized Gains | 420 | 458 |
Gross unrealized Losses | ||
Fair value | 911 | 3,059 |
US Government treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,898 | |
Gross unrealized Gains | ||
Gross unrealized Losses | ||
Fair value | 1,898 | |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 491 | 703 |
Gross unrealized Gains | 420 | 458 |
Gross unrealized Losses | ||
Fair value | $ 911 | $ 1,161 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | $ 3,128 | $ 3,769 | |
Accumulated depreciation | 2,689 | 3,381 | |
Property and equipment, net | 439 | 388 | |
Depreciation cost | 174 | 151 | $ 190 |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 2,561 | 2,906 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 195 | 498 | |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 13 | 13 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | $ 359 | $ 352 |
ACCRUED EXPENSES AND OTHER LI38
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 921 | $ 1,399 |
Accrued expenses | 274 | 237 |
Accrued Liabilities, Current, Total | $ 1,195 | $ 1,636 |
COMMITMENTS AND CONTINGENT LI39
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,017 | $ 398 | ||
2,018 | 258 | ||
2,019 | 221 | ||
2,020 | 37 | ||
Total | 914 | ||
Rent expense | $ 381 | $ 400 | $ 396 |
DERIVATIVE FINANCIAL INSTRUME40
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Ineffective portion of the change in fair value of a cash flow hedge | $ (18) | $ 10 | $ 4 |
Exposure to loss due to credit risk by counterparties | 28 | ||
Notional amount | 2,641 | ||
Unrealized losses, net of tax, to be reclassified in next 12 months | (28) | ||
Cost of services [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in gains recognized in other comprehensive income (loss) on derivative (effective portion) | 2 | ||
Operating expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in gains recognized in other comprehensive income (loss) on derivative (effective portion) | $ 62 |
DERIVATIVE FINANCIAL INSTRUME41
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Gains (Losses) Reclassified From Other Comprehensive Income (Loss) into Income (Expenses) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | $ 46 | $ (134) | $ (45) |
Foreign Exchange Option [Member] | Cost of revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | 8 | ||
Foreign Exchange Forward [Member] | Cost of revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | 64 | (124) | (57) |
Foreign Exchange Forward [Member] | Other Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | $ (18) | $ (10) | $ 4 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | Nov. 14, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2008shares | Dec. 31, 2016₪ / shares | Nov. 14, 2016₪ / shares | Dec. 31, 2015₪ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, shares repurchased | shares | 1,111,796 | |||||
Issuance of shares | shares | 261,287 | |||||
Offering price | $ / shares | $ 5.25 | |||||
Proceed from Sale of share | $ | $ 1,252 | |||||
Issuance expenses | $ | $ 120 | |||||
NIS | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nominal value | ₪ / shares | ₪ 0.04 | ₪ 0.04 | ₪ 0.04 | |||
Incentive Share Option Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ordinary shares still available for future grant | shares | 831,551 | |||||
Vesting period for plan | 4 years | |||||
Expiration period of granted options | 7 years | |||||
Unrecognized compensation cost related to non-vested stock options | $ | $ 255 | |||||
Unrecognized compensation cost, recognition period | 1 year 6 months 7 days |
SHAREHOLDERS' EQUITY (Option Ac
SHAREHOLDERS' EQUITY (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of options | |||
Outstanding at the beginning of the year | 641,089 | ||
Granted | 164,000 | ||
Exercised | (71,393) | ||
Forfeited | (61,982) | ||
Outstanding at end of year | 671,714 | 641,089 | |
Exercisable options at end of year | 395,154 | ||
Vested and expected-to-vest at end of year | 637,347 | ||
Weighted-average exercise price | |||
Outstanding at the beginning of the year | $ 2.76 | ||
Granted | 3.30 | ||
Exercised | 1.44 | ||
Forfeited | 4.70 | ||
Outstanding at end of year | 2.85 | $ 2.76 | |
Exercisable options at end of year | 2.27 | 2.28 | |
Vested and expected-to-vest at end of year | $ 2.79 | $ 2.67 | |
Weighted-average remaining conractual term (in years) | |||
Weighted- average remaining contractual term | 4 years 1 month 17 days | 4 years 2 months 12 days | |
Exercisable options at end of year | 2 years 11 months 16 days | ||
Vested and expected-to-vest at end of year | 4 years 15 days | ||
Aggregate intrinsic value, beginning of the year | $ 718 | ||
Aggregate intrinsic value, Outstanding at end of year | 1,534 | $ 718 | |
Exercisable options at end of year, Aggregate intrinsic value | 1,135 | ||
Vested and expected-to-vest at end of year, Aggregate intrinsic value | 1,496 | ||
Total intrinsic value of stock options exercised | $ 264 | $ 73 | $ 3 |
SHAREHOLDERS' EQUITY (Options I
SHAREHOLDERS' EQUITY (Options Issued to Consultants) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options for Ordinary shares | 671,714 | 641,089 |
Exercise Price Range [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date | Oct. 31, 2015 | |
Options for Ordinary shares | 54,075 | |
Exercise price per share | $ 4.52 | |
Options exercisable | 16,898 | |
Exercisable through | October, 2022 |
SHAREHOLDERS' EQUITY (Allocatio
SHAREHOLDERS' EQUITY (Allocation of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 569 | $ 144 | $ 66 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 26 | 19 | 4 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 16 | 19 | 3 |
Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 82 | 45 | 14 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 445 | $ 61 | $ 45 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Income tax rates | 25.00% | 26.50% | 26.50% |
Net operating loss carry forwards | $ 48,870 | ||
Change in amount for which valuation allowance provided | 3,368 | $ 1,931 | $ 2,258 |
Accrued interest related to uncertain tax positions | 51 | $ 30 | |
European Subsidiaries [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carry forwards | $ 1,895 | ||
2017 [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 24.00% | ||
2018 [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 23.00% | ||
Amended Rate Year One [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 16.00% | ||
Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 10.00% | ||
Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 25.00% |
TAXES ON INCOME (Deferred Tax A
TAXES ON INCOME (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Operating loss carryforward | $ 11,833 | $ 12,309 |
Reserves and allowances | 1,025 | 1,216 |
Total deferred tax asset before valuation allowance | 12,858 | 13,525 |
Valuation allowance | (12,644) | (13,272) |
Deferred tax assets | 214 | 253 |
Deferred tax liabilities | (168) | (181) |
Deferred taxes | $ 46 | $ 72 |
TAXES ON INCOME (Loss (Income)
TAXES ON INCOME (Loss (Income) from Continuing Operations Before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (3,808) | $ (1,931) | $ (2,258) |
Foreign | 350 | 774 | 2,557 |
Income (loss) before taxes | $ (3,458) | $ (1,157) | $ 299 |
TAXES ON INCOME (Schedule of Co
TAXES ON INCOME (Schedule of Components of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current tax expenses (benefit) | $ 116 | $ 35 | $ 737 |
Deferred tax expenses (benefit) | (127) | 49 | 230 |
Current Income Tax Expense (Benefit), Total | $ (11) | $ 84 | $ 967 |
TAXES ON INCOME (Components of
TAXES ON INCOME (Components of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | |||
Foreign | (11) | 84 | 967 |
Current Income Tax Expense (Benefit), Total | $ (11) | $ 84 | $ 967 |
TAXES ON INCOME (Shedule of Unr
TAXES ON INCOME (Shedule of Unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxes On Income Shedule Of Unrecognized Tax Benefits Details | ||
Beginning balance | $ 448 | $ 30 |
Change in unrecognized tax benefits with respect to uncertain tax positions: | 95 | 418 |
Ending Balance | $ 543 | $ 448 |
GEOGRAPHIC INFORMATION AND MA52
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 14,471 | $ 17,323 | $ 16,373 |
United states | |||
Net sales | 6,970 | 8,536 | 9,929 |
United Kingdom | |||
Net sales | 1,930 | 1,518 | 1,513 |
Germany | |||
Net sales | 1,549 | 1,316 | 1,976 |
Netherlands | |||
Net sales | 1,465 | 1,577 | 1,668 |
South Africa | |||
Net sales | 933 | 1,479 | 613 |
Ireland | |||
Net sales | 182 | 1,230 | |
Other | |||
Net sales | $ 1,442 | $ 1,667 | $ 674 |
GEOGRAPHIC INFORMATION AND MA53
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Long-lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | $ 439 | $ 388 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | 282 | 202 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | $ 157 | $ 186 |
GEOGRAPHIC INFORMATION AND MA54
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Major customers) (Details) - Revenue [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total revenue from customer | 11.00% | 8.00% | 12.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total revenue from customer | 10.00% | 9.00% | 10.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total revenue from customer | 2.00% | 3.00% | 23.00% |
SUPPLEMENTARY DATA ON SELECTE55
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS (Income and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial income: | |||
Foreign currency translation adjustments | $ 12 | ||
Realized gain on marketable securities | 135 | 1 | 1,862 |
Interest income and amortization/accretion of premium/discount on marketable securities or bank deposits | 3 | 1 | 2 |
Dividend on equity marketable securities | 25 | 30 | 85 |
Financial income | 163 | 32 | 1,961 |
Financial expenses: | |||
Bank charges | (28) | (25) | (20) |
Foreign currency translation adjustments | (14) | (45) | |
Financial expense | (42) | (70) | (20) |
Financial Inome (Expense), Net | $ 121 | $ (38) | $ 1,941 |