MIND C.T.I. (MNDO) 20-F 6 Apr 17 2016 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	MIND CTI LTD
Entity Central Index Key	1,119,083
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	20-F
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	19,261,418

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 9,165	$ 11,475
Short-term bank deposits	5,033	1,498
Marketable securities	4,784	5,151
Accounts receivable, net:
Trade	1,098	2,243
Other	176	213
Prepaid expenses	319	232
Deferred cost of revenues	0	78
Inventories	5	9
Total current assets	20,580	20,899
INVESTMENTS AND OTHER NON-CURRENT ASSETS:
Marketable securities - available-for-sale	832	1,441
Severance pay fund	1,565	1,623
Deferred income taxes	95	241
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization	498	591
GOODWILL	5,430	5,430
Total assets	29,000	30,225
Accounts payable and accruals:
Trade	51	237
Other	1,233	2,264
Deferred revenues	4,079	3,664
Total current liabilities	5,363	6,165
LONG-TERM LIABILITIES:
Deferred revenues	665	426
Employees' rights upon retirement	1,687	1,786
Total liabilities	7,715	8,377
Commitments and contingencies	0	0
SHAREHOLDERS' EQUITY:
Share capital- Ordinary shares of NIS 0.01 par value - Authorized: 88,000,000 shares at December 31, 2016 and 2015; Issued: 21,660,010 shares at December 31, 2016 and 2015; Outstanding: 19,261,418 and 19,202,418 shares at December 31, 2016 and 2015, respectively	54	54
Additional paid-in capital	25,998	25,862
Accumulated other comprehensive loss	(867)	(1,072)
Accumulated deficit	(2,293)	(1,304)
Treasury shares - 2,398,592 and 2,457,592 shares at December 31, 2016 and 2015, respectively	(1,607)	(1,692)
Total shareholders' equity	21,285	21,848
Total liabilities and shareholders' equity	$ 29,000	$ 30,225

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Ordinary shares, par value	₪ 0.01	₪ 0.01
Ordinary shares, shares authorized	88,000,000	88,000,000
Ordinary shares, shares issued	21,660,010	21,660,010
Ordinary shares, shares outstanding	19,261,418	19,202,418
Treasury shares	2,398,592	2,457,592

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
REVENUES:
Sales of licenses	$ 3,924	$ 3,942	$ 5,397
Services	14,128	16,986	19,623
Revenues, Total	18,052	20,928	25,020
COST OF REVENUES
Cost of sales of licenses	349	418	488
Cost of services	6,482	8,212	9,462
Cost of Revenue, Total	6,831	8,630	9,950
GROSS PROFIT	11,221	12,298	15,070
RESEARCH AND DEVELOPMENT EXPENSES	3,517	2,943	4,539
SELLING AND MARKETING EXPENSES	1,105	1,173	1,140
GENERAL AND ADMINISTRATIVE EXPENSES	1,393	1,766	1,934
OPERATING INCOME	5,206	6,416	7,457
FINANCIAL INCOME (EXPENSES) - net	166	(114)	(306)
INCOME BEFORE TAXES ON INCOME	5,372	6,302	7,151
TAXES ON INCOME	1,169	1,284	1,668
NET INCOME	$ 4,203	$ 5,018	$ 5,483
EARNINGS PER SHARE -
Basic and diluted	$ 0.22	$ 0.26	$ 0.29
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - IN THOUSANDS
Basic	19,234	19,183	18,949
Diluted	19,307	19,283	19,032

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
COMPREHENSIVE INCOME
Net Income	$ 4,203	$ 5,018	$ 5,483
OTHER COMPREHENSIVE INCOME (LOSS)
Currency translation adjustments	0	0	81
Unrealized gain (loss) from available-for-sale securities	205	(132)	(94)
Total other comprehensive income (loss)	205	(132)	(13)
TOTAL COMPREHENSIVE INCOME	$ 4,408	$ 4,886	$ 5,470

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Share capital	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit	Treasury shares
Beginning Balance at Dec. 31, 2013	$ 20,989	$ 54	$ 30,196	$ (927)	$ (6,047)	$ (2,287)
Beginning Balance, Shares at Dec. 31, 2013		18,885
Comprehensive income	5,470	$ 0	0	(13)	5,483	0
Dividend paid (Note 7c)	(4,544)	0	(4,544)	0	0	0
Employees share based compensation expenses	72	0	72	0	0	0
Exercise of options issued to employees from treasury shares	424	$ 0	0	0	0	424
Exercise of options issued to employees from treasury shares, Shares		225
Ending Balance at Dec. 31, 2014	22,411	$ 54	25,724	(940)	(564)	(1,863)
Ending Balance, Shares at Dec. 31, 2014		19,110
Comprehensive income	4,886	$ 0	0	(132)	5,018	0
Dividend paid (Note 7c)	(5,758)	0	0	0	(5,758)	0
Employees share based compensation expenses	138	0	138	0	0	0
Exercise of options issued to employees from treasury shares	171	$ 0	0	0	0	171
Exercise of options issued to employees from treasury shares, Shares		92
Ending Balance at Dec. 31, 2015	21,848	$ 54	25,862	(1,072)	(1,304)	(1,692)
Ending Balance, Shares at Dec. 31, 2015		19,202
Comprehensive income	4,408	$ 0	0	205	4,203	0
Dividend paid (Note 7c)	(5,192)	0	0	0	(5,192)	0
Employees share based compensation expenses	136	0	136	0	0	0
Exercise of options issued to employees from treasury shares	85	$ 0		0	0	85
Exercise of options issued to employees from treasury shares, Shares		59
Ending Balance at Dec. 31, 2016	$ 21,285	$ 54	$ 25,998	$ (867)	$ (2,293)	$ (1,607)
Ending Balance, Shares at Dec. 31, 2016		19,261

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 income	$ 4,203	$ 5,018	$ 5,483
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	161	173	233
Deferred income taxes, net	146	(46)	101
Accrued severance pay	(123)	105	68
Foreign currency exchange rate loss from marketable securities - available-for-sale	128	0	0
Unrealized loss (gain) from marketable securities, net	23	98	(26)
Employees share-based compensation	136	138	72
Realized gain on sale of marketable securities - available-for-sale, net	(44)	0	(9)
Decrease (increase) in accounts receivable:
Trade	1,145	352	(1,354)
Other	37	21	(70)
Decrease (increase) in prepaid expenses and deferred cost of revenues	(9)	95	(77)
Decrease in inventories	4	1	0
Increase (decrease) in accounts payable and accruals:
Trade	(186)	99	(387)
Other	(1,031)	(42)	1,153
Increase (decrease) in deferred revenues	654	285	(1,346)
Net cash provided by operating activities	5,244	6,297	3,841
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities - available-for-sale	(1,000)	0	(1,664)
Proceeds from sales of marketable securities - available-for-sale	1,730	0	522
Purchase of property and equipment	(68)	(146)	(201)
Severance pay funds	82	(32)	(109)
Proceeds from (investment in) short-term bank deposits	(3,535)	3,053	3,746
Proceeds from (investment in) marketable securities	344	(210)	(2,176)
Net cash provided by (used in) investing activities	(2,447)	2,665	118
CASH FLOWS FROM FINANCING ACTIVITIES:
Employee stock options exercised and paid	85	171	424
Dividend paid	(5,192)	(5,758)	(4,544)
Net cash used in financing activities	(5,107)	(5,587)	(4,120)
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS	0	0	49
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2,310)	3,375	(112)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	11,475	8,100	8,212
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR	9,165	11,475	8,100
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH ACTIVITIES-
Taxes paid	$ 841	$ 414	$ 1,266

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES a. General: 1) Nature of operations MIND C.T.I. Ltd. (the “Company”) is an Israeli company, which together with its subsidiaries operate in one business segment, providing integrated products and services. The Company designs, develops, markets, supports, implements and operates billing and customer care systems, including consulting and managed services, primarily to wireless, wireline, next-generation service providers throughout the world. The Company also provides a call management system used by enterprises for call accounting, traffic analysis, and fraud detection. The Company has wholly-owned subsidiaries in the United States ("Mind Software Inc." or "Sentori"), Romania ("Mind Software SRL"), and U.K ("Mind Software Limited" or "Omni"). 2) Accounting principles The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP"). 3) Use of estimates in preparation of financial statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that 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 revenues and expenses during the reporting years. Actual results could differ from those estimates. The most significant estimates with regard to the Company's consolidated financial statements relate to revenue recognition of products and service sales using the percentage of completion method and the impairment of goodwill. 4) Functional currency The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s revenues are derived from sales outside of Israel, which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and financing activities are denominated in dollars. Thus, the functional currency of the Company and its subsidiaries is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are re-measured into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (detailed below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions: exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items, such as depreciation and amortization, etc.) - historical exchange rates. The resulting currency translation gains or losses are carried to financial income or expenses, as appropriate. b. Principles of consolidation: 1) The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. 2) Inter-company balances and transactions have been eliminated in consolidation. Profits from inter-company sales, not yet realized outside the Company and its subsidiaries, have also been eliminated. c. Comprehensive Income: The purpose of reporting comprehensive income is to report a measure of all changes in equity of an entity that result from recognized transactions and other economic events of the period resulting from transactions from non-owner sources. d. Segment Reporting: The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that the Company operates in one reportable segment. e. Cash equivalents: The Company and its subsidiaries consider all highly liquid investments, which include short-term bank deposits (up to three months from original date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents. f. Fair Value of Financial Instruments: The Company records its financial assets and liabilities at fair value. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company recognizes transfers among Level 1, Level 2 and Level 3 classifications as of the actual date of the events or change in circumstances that caused the transfers. The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying amounts which approximate fair value due to the short-term maturity of these instruments. g. Short-term bank deposits: Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost. h. Marketable securities: Marketable securities are classified as "financial assets held at fair value through profit or loss" when held for trading or are designated upon initial recognition as financial assets at fair value through profit or loss. Financial asset at fair value through profit or loss is shown at fair value. Any gain or loss arising from changes in fair value, including those originating from changes in exchange rates is recognized in profit or loss in the period in which the change occurred. Net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset. i. Available-for-sale ("AFS ") financial assets: Available-for-sale investments are classified within cash and cash equivalents, short-term investments, or long-term investments based on the remaining maturity of the investment, and are reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity (deficit) within accumulated other comprehensive income. All realized gains and losses and unrealized losses resulting from declines in fair value that are other-than-temporary are recorded in other expense, net in the period of occurrence. The Company uses the specific identification method to determine the realized gains and losses on investments. For all investments in marketable securities, the Company assesses whether the impairment is other-than-temporary. If the fair value of a security is less than its amortized cost basis, an impairment is considered other-than-temporary if (i) the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (ii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on condition (i), the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (ii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security, will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income. The Company evaluates both qualitative and quantitative factors such as duration and severity of the unrealized losses, credit ratings, default and loss rates of the underlying collateral, structure and credit enhancements to determine if a credit loss may exist. See also Note 2. j. Inventories: Inventories are valued at the lower of cost or market value. Cost is determined by the “first-in, first-out” method. Most of the inventories consist of acquired hardware. k. Property and equipment: 1) These assets are stated at cost less accumulated depreciation. 2) The assets are depreciated by the straight-line method, on basis of their estimated useful life. Annual rates of depreciation are as follows: % Computers and electronic equipment 15-33 (mainly 33) Office furniture and equipment 6-7 Vehicles 15 Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements. l. Goodwill: Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under Accounting Standards Codification (“ASC”) 350, "Goodwill" is not amortized but rather tested for impairment at least annually. The Company has a single reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company performs annual testing for impairment of the goodwill during the third quarter of each year, see also Note 4. m. Income taxes: The Company accounts for income taxes, in accordance with the provisions of ASC 740 "Income Taxes" under the liability method of accounting. Under the liability method, deferred taxes are determined based on the differences between the financial statement and tax basis of assets and liabilities at enacted tax rates in effect in the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts expected to be realized. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. For uncertain tax positions, the Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within income tax expense. n. Revenue recognition: The Company’s revenues consist of revenues generated from software licensing, sales of professional services, including integration and implementation, sales of third-party hardware and software, maintenance services, managed services and training. The Company applies the provisions of Statement of ASC 985-605, "Software -Revenue Recognition" and ASC 605-35, "Construction-Type and Production-Type Contracts", as follows: i) Licenses Revenue from sale of products is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collection is probable. If collection is not considered probable, revenue is recognized when the fee is collected. The Company generally does not grant a right of return on products sold to its customers. ii) Services The services the Company provides consist of implementation, training, hardware installation, maintenance, support and project management. All services are priced on a fixed price basis and are recognized ratably over the period in which the services are provided except services which are recognized under the percentage-of-completion method as described below. Products are mainly supplied with maintenance for a period of one year from delivery. When revenue on sale of the products is recognized, the Company defers a portion of the sales price and recognizes it as maintenance revenue ratably over the above period. The portion of the sales price that is deferred is determined based on the fair value of the service as priced in transactions in which the Company renders maintenance solely. Where vendor specific objective evidence for fair value cannot be determined, the entire sale is being recognized over the maintenance period. Where the services are considered essential to the functionality of the software products, both the software product revenue and the revenue related to the integration and implementation services are recognized under the percentage-of-completion method in accordance with ASC 605-35. The Company generally determines the percentage-of-completion by comparing the labor performed to date to the estimated total labor required to complete the project. When the estimate indicates that a loss will be incurred, such loss is recorded in the period identified. Significant judgments and estimates are involved in determining the percent complete of each contract. Different assumptions could yield materially different results. (iii) Managed Services Revenues from managed services include a monthly fee for services and for right of use and are recorded as service revenues and license revenues, respectively. The monthly fee is based mainly on number of subscribers or customer’s business volume and the agreements include a minimum monthly charge. These revenues are recognized on a monthly basis. Where installation services are sold together with a managed services contract, the installation services are being recognized over the entire contract term, commencing the deployment finalization. Deferred costs of revenues are presented net of related advances from customers. o. Research and development expenses: Pursuant to ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed", development costs related to software products are expensed as incurred until the “technological feasibility” of the product has been established. Because of the relatively short time period between "technological feasibility" and product release, and the insignificant amount of costs incurred during such period, no software development costs have been capitalized. p. Allowance for doubtful accounts: The allowance is determined for specific debts doubtful of collection. q. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method over the requisite service period for the entire award, net of estimated forfeitures. r. Earnings per share ("EPS"): Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the year, net of treasury shares. Diluted EPS reflects the increase in the weighted average number of shares outstanding that would result from the assumed exercise of employee stock options, calculated using the treasury-stock-method. s. Treasury shares: Treasury shares are presented as a reduction in shareholders' equity, at their cost to the Company, under "Treasury shares". t. Concentration of credit risks: Most of the Company’s and its subsidiaries' cash and cash equivalents as of December 31, 2016 and 2015 were deposited with Israeli, European and U.S. banks. The Company is not aware of any specific credit risks in respect of these banks. The Company's revenues have been generated from a large number of customers. Consequently, the exposure to credit risks relating to trade receivables is limited. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts. u. Recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price(s); (4) allocate the transaction price(s) to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires advanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of FASB’s revenue standard under ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. As a result of ASU 2015-14, the guidance under ASU 2014-09 shall apply for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU 2016-12, which amends guidance in the new revenue standard on collectibility, noncash consideration, presentation of sales tax and transition. ASU 2016-08, ASU 2016-10 and ASU 2016-12 must be adopted together with the new revenue standard. The Company is currently reviewing and evaluating this guidance and its impact on its consolidated financial statements. In November 2015 the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The Company adopted this ASU, and applied it on a retrospective basis, in the fourth quarter of fiscal year 2016. See Note 8 for the effects of its adoption on the Company’s consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities”, which provides targeted improvements to the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. Specific accounting areas addressed include, equity investments, financial liabilities reported under the fair value option and valuation allowance assessment resulting from unrealized losses on available-for-sale securities. The ASU also changes certain presentation and disclosure requirements for financial instruments. The Update is to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company in its first quarter of fiscal year 2018. Early adoption, with certain exceptions, is not permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which amends, among other things, the existing guidance by requiring lessees to recognize lease assets (right-to-use) and liabilities (for reasonably certain lease payments) arising from operating leases on the balance sheet. For leases with a term of twelve months or less, ASU 2016-02 permits an entity to make an accounting policy election to recognize such leases as lease expense, generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. The Company is currently evaluating ASU 2016-02 and its impact on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies certain provisions associated with the accounting for stock compensation. Among other things, ASU 2016-09 requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of income and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities in the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company is currently reviewing and evaluating this guidance and its impact on its consolidated financial statements

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2016
Marketable Securities [Abstract]
MARKETABLE SECURITIES	NOTE 2 - MARKETABLE SECURITIES December 31, Maturity year 2 0 1 6 2 0 1 5 U.S. dollars in thousands Short-term (a): Municipal bond $ 4,117 $ 4,446 Corporate bond 667 705 $ 4,784 $ 5,151 Long-term - security bond (b) Perpetual $ 832 $ 1,441 a. The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company’s investment policy requires investments to be investment grade, rated single -A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets. b. As of December 31, 2016 the Company held a long-term security bond which is classified as available-for-sale security and is presented on its fair value. The fair value of the available-for-sale security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC 820).

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 - PROPERTY AND EQUIPMENT a. Composition of assets, grouped by major classification, is as follows: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Computers and electronic equipment $ 1,807 $ 1,756 Land 263 263 Office furniture and equipment 152 166 Vehicles 146 201 Leasehold improvements 8 8 2,376 2,394 Less - accumulated depreciation and amortization 1,878 1,803 $ 498 $ 591 b. Depreciation and amortization expenses totaled $161 thousand, $173 thousand and $233 thousand in the years ended December 31, 2016, 2015 and 2014, respectively.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2016
Goodwill [Abstract]
GOODWILL	NOTE 4 - GOODWILL Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired in our business combinations. Goodwill is not amortized and is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Events or changes in circumstances that could trigger an impairment review include a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, additional impairment testing is not required. However, if the Company concludes otherwise, the Company is required to perform the first step of a two-step impairment test. Alternatively, the Company may elect to proceed directly to the first step of the two-step impairment test and bypass the qualitative assessment. The first step of the impairment test involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, the carrying amount of the goodwill is compared to its implied fair value. The estimate of implied fair value of goodwill may require valuations of certain internally generated and unrecognized intangible assets. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The Company performed the annual impairment tests during the third quarter of 2016, 2015 and 2014 and did not identify any impairment losses.

Employees' Rights upon Retireme

Employees' Rights upon Retirement	12 Months Ended
	Dec. 31, 2016
Employees' Rights upon Retirement [Abstract]
EMPLOYEES' RIGHTS UPON RETIREMENT	NOTE 5 - EMPLOYEES' RIGHTS UPON RETIREMENT a. Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The severance pay liability of the Company to its Israeli employees, based upon the number of years of service and the latest monthly salary, is partly covered by regular deposits with severance pay funds and pension funds, and by purchase of insurance policies; under labor agreements, the deposits with recognized pension funds and the insurance policies, as above, are in the employees' names and are, subject to certain limitations, the property of the employees. The amounts accrued and the portions funded, with severance pay funds and by the insurance policies are reflected in the financial statements as follows: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Accrued severance pay $ 1,687 $ 1,786 Less - amounts funded (presented in “investment and other non-current assets”) (1,565 ) (1,623 ) Unfunded balance $ 122 $ 163 The amounts of accrued severance pay as above cover the Company’s severance pay liability in accordance with labor agreements in force and based on salary components which, in management’s opinion, create entitlement to severance pay. The Company records the obligation as if it was payable at each balance sheet date on an undiscounted basis. Withdrawals from the funds are generally made for the purpose of paying severance pay. b. The severance pay expenses were $169 thousand, $271 thousand and $181 thousand in the years ended December 31, 2016, 2015 and 2014, respectively.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2016
Commitments and Contingent Liabilities [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 6 - COMMITMENTS AND CONTINGENT LIABILITIES a. Commitments: The Company and its subsidiaries entered into premises lease agreements that will expire between 2017 and 2025. Future minimum lease commitments of the Company and its subsidiaries under the above leases, at exchange rates in effect on December 31, 2016, are as follows: U.S. dollars in thousands Years ending December 31: 2017 $ 528 2018 238 2019 44 2020 44 2021-2025 184 $ 1,038 Rental expense totaled $542 thousand, $529 thousand and $603 thousand in the years ended December 31, 2016, 2015 and 2014, respectively. b. Contingent liabilities: The Company has provided bank guarantees relating to future performance on certain contracts. As of December 31, 2016, contingent liabilities on outstanding bank guarantees aggregated to an amount of approximately $41 thousand.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2016
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 7 - SHAREHOLDERS’ EQUITY a. Share capital: The Company’s ordinary shares are traded in the United States on the NASDAQ National Market, under the symbol MNDO. b. Treasury shares: During the period between September 2008 and December 2009, the Company has purchased an aggregate amount of 3,165,092 ordinary shares for a total consideration of approximately $2.8 million. Currently, the Company does not have an active buyback plan. As of December 31, 2016 the remaining treasury shares are 2,398,592 which amounted to $1.6 million after exercise of options issued to employees from treasury shares in the amount of $85 thousand, $171 thousand and $424 thousand in the years ended December 31, 2016, 2015 and 2014 respectively. c. Dividend: Dividends paid per share in the years ended December 31, 2016, 2015 and 2014 were $0.27, $0.30 and $0.24, respectively. The Company paid dividends to its shareholders in the amounts of $5.2 million, $5.8 million and $4.5 million during the years ended December 31, 2016, 2015 and 2014, respectively. Since, at the time of the 2014 distribution, the Company had insufficient statutory retained earnings, the distribution was done by way of reduction of additional paid-in capital, after due approval by an Israeli court order, in accordance with the Israeli Companies Law, 1999. d. Stock option plans: In 2011, the Board of Directors and the 2011 Annual General Meeting of the Company’s shareholders approved a share incentive plan (the “2011 Share Incentive Plan”). Under the 2011 Share Incentive Plan, options for up to 1,800,000 ordinary shares of NIS 0.01 par value are to be granted to employees of the Company and its subsidiaries, directors, consultants or contractors of the Company. Each option can be exercised to purchase one ordinary share. Immediately upon issuance, the ordinary shares issuable upon the exercise of the options will confer on holders the same rights as the other ordinary shares. The Board of Directors determines the exercise price and the vesting period of the options granted. The outstanding options granted under the above mentioned plans vest over 3-5 years. Options not exercised will expire approximately 5-7 years after the day of grant. The compensation costs charged against income for all of the Company's equity incentive plans during the years ended December 31, 2016, 2015 and 2014 were approximately $137 thousand, $138 thousand and $72 thousand, respectively without any reduction in income taxes. As a result of a change made to Section 102 of the Israeli Income Tax Ordinance as part of the Israeli tax reform of 2003, and pursuant to an election made by the Company thereunder, Israeli employees (except for employees who are deemed “Controlling Members” under the Israeli Income Tax Ordinance) will be subject to a lower tax rate on capital gains accruing to them in respect of Section 102 awards made after December 31, 2002. However, the Company will not be allowed to claim as an expense for tax purposes the amounts credited to such employees as a benefit when the related capital gains tax is payable by them, as it had previously been entitled to do under Section 102. The following is a summary of the status of the 2011 Share Incentive Plan as of December 31, 2016, 2015 and 2014, and changes during the years ended on those dates: 1) Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Options outstanding at beginning of year 710,300 $ 2.51 851,600 $ 2.63 460,000 $ 1.93 Changes during year: Granted (a) 344,000 $ 0.003 116,800 $ 1.66 666,000 $ 2.81 Exercised (59,000 ) $ 1.45 (92,100 ) $ 1.85 (225,400 ) $ 1.88 Forfeited (117,800 ) $ 2.49 (166,000 ) $ 2.88 (49,000 ) $ 2.03 Expired (2,000 ) $ 2.16 - - - - Options outstanding at end of year 875,500 $ 1.60 710,300 $ 2.51 851,600 $ 2.63 Options exercisable at end of year 246,500 $ 2.87 51,000 $ 1.98 43,600 $ 2.00 Vested and expected to vest at end of year 771,084 $ 1.81 Weighted average grant date fair value of options granted during the year (b) $ 1.46 $ 0.94 $ 0.51 (a) In the year ended December 31, 2016 the options were granted with an exercise price equal to par value of NIS 0.01. In the years ended December 31, 2015 and 2014 the options were granted with an exercise price equal to the average closing price per share of the Company’s ordinary shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to par value of NIS 0.01. (b) The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Dividend yield 11 % 10 % 11 % Expected volatility* 35 % 48 % 44 % Average risk-free interest rate 2.0 % 1.5 % 1.5 % Expected average term - in years 3.88 3.88 3.88 * Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. As of December 31, 2016 there were approximately $525 thousand of total unrecognized compensation costs, net of expected forfeitures, related to nonvested share-based compensation awards granted under the stock option plan. The costs are expected to be recognized over a weighted average period of 1.70 years. 2) The following table summarizes information about options outstanding and exercisable as of December 31, 2016: Options Outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted exercisable average Weighted Range of at remaining average at remaining average exercise December 31, contractual exercise December 31, contractual exercise prices 2 0 1 6 life price 2 0 1 6 life price Years Years $ 0.003 – 2.160 423,000 4.33 $ 0.18 19,000 1.18 $ 2.16 $ 2.410 – 2.947 452,500 2.81 $ 2.93 227,500 2.75 $ 2.93 875,500 3.54 $ 1.60 246,500 2.63 $ 2.87 The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 were approximately $51 thousand, $176 thousand and $322 thousand, respectively. As of December 31, 2016, the aggregate intrinsic value of the outstanding options is $966 thousand, and the aggregate intrinsic value of the exercisable options is $6 thousand.

Taxes on Income

Taxes on Income	12 Months Ended
	Dec. 31, 2016
Taxes on Income [Abstract]
TAXES ON INCOME	NOTE 8 - TAXES ON INCOME a. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: The Company is an “industrial company”, as defined by this law. As such, the Company is entitled to claim depreciation at increased rates for equipment used in industrial activity, as stipulated by regulations published under the inflationary adjustments law. b. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”): 1) Tax benefits prior to the 2011 Amendment Substantially all of the Company’s production facilities have been granted “Approved Enterprise” status under the above law (including Amendment No. 60 to the law that was published in April 2005). Income derived from the approved enterprise was tax exempt for a period of ten years commencing in the first year in which the Company earned taxable income from the approved enterprise (provided the maximum period to which it is restricted by law has not elapsed). According to the above law, in the event of distribution of cash dividends from income that was tax exempt as above, the Company would have to pay the 25% tax in respect of the amount distributed. The entitlement to the above benefits was conditional upon the Company’s fulfilling the conditions stipulated by the above law, regulations published thereunder and the certificate of approval for the specific investments in approved enterprises. In the event of failure to comply with these conditions, the benefits may be cancelled and the Company may be required to refund the amount of the benefits, in whole or in part, with the addition of linkage differences to the Israeli CPI and interest. 2) Tax benefits under the 2011 Amendment On January 6, 2011 an amendment (Amendment No. 68) to the Investment Law (the "2011 Amendment") was published. The 2011 Amendment significantly revised the tax incentive regime in Israel, commencing on January, 1 2011. The 2011 Amendment introduced a new status of “Preferred Enterprise”. Similarly to the “Approved Enterprise” status, a Preferred Company is an industrial company meeting certain conditions (including a minimum threshold of 25% export). However, under the 2011 Amendment the requirement for a minimum investment in productive assets in order to be eligible for the benefits granted under the Investments Law as with respect to “approved enerprise”status was cancelled. Dividends distributed from income which is attributed to a “Preferred Enterprise” will be subject to withholding tax at source at the following rates: (i) Israeli resident corporations - 0%, (ii) Israeli resident individuals – 15% (iii) non-Israeli residents - 15%, subject to a reduced tax rate under the provisions of an applicable double tax treaty. On July 30, 2013 the Israeli Parliament passed a Law for the change in the order of National Priorities (Legislative amendments to achieve budget objectives for 2013 and 2014), 2013. As part of the legislation, the Investment Law was amended so that the tax rate applicable to a “Preferred Enterprise” in this period in Development Area A will be 9% and the tax rate in other parts of the country will be 16%. Similarly, it was determined that the tax rate on dividends distributed to individuals and foreign residents out of preferred income will be increased to 20% as from January 1, 2014 as opposed to the current rate of 15%. The following table summarise the reduced flat tax rate with respect to the income attributed to the Preferred Enterprise: Tax Year Development Region “A” Other Areas within Israel 2011-2012 10 % 15 % 2013 7 % 12.5 % 2014 and thereafter 9 % 16 % The Company is located in Development Region "A" and during 2011 had chosen the status of the 2011 Amendment. If only a portion of the Company's capital investments is approved, its effective tax rate will be the result of a weighted combination of the applicable rates. The tax benefits from any certificate of approval relate only to taxable income attributable to the specific “Preferred Enterprise”. Income derived from activity that is not integral to the activity of the “Preferred Enterprise” will not enjoy tax benefits. The Company's entitlement to the above benefits is subject to fulfillment of certain conditions under the Investment Law and related regulations. During 2013, the Company applied for a tax ruling with respect to 2012 and future years. During 2014, the Company obtained the ruling, which provides that the portion of the income attributed to the “Preferred Enterprise” (and thereby subject to lower tax rates) will be calculated each year based on, among other things, the ratio between the number of the employees in Israel and abroad. According to the ruling, the tax rate on income in Israel in the year ended December 31, 2016 was approximately 22%. c. Other applicable tax rates: 1) Income from other sources in Israel In January 2016, a legislation to amend the corporate income tax law was published. The legislation determined a decrease of the corporate income tax law as of January 1, 2016 to 25% (1.5% decrease). In December 2016, a legislation to amend the corporate income tax law was published. The legislation determined a decrease of the corporate income tax law as of January 1, 2017 to 24% and another decrease of the corporate income tax law as of January 1, 2018 to 23%. 2) Income of non-Israeli subsidiaries Non-Israeli subsidiaries are taxed according to tax laws in their countries of residence. d. Deferred income taxes: December 31 2 0 1 6 2 0 1 5 U.S. dollars in thousands 1) Provided in respect of the following: Research and development expenses $ 51 $ 54 Carryforward tax losses 1,867 1,494 Other 44 187 Less - valuation allowance (1,867 ) (1,494 ) $ 95 $ 241 In fiscal year 2016 the Company adopted ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. Upon retrospectively adoption the Company included its current deferred income tax assets with its noncurrent deferred income tax assets; no adjustments were made to deferred tax liabilities. 2) As of December 31, 2016, the carryforward tax losses are related mainly to the Company’s subsidiaries (in the U.S. and U.K.) and amounted to approximately $5.5 million. The Company has provided valuation allowance in respect of deferred tax assets resulting from carryforward tax losses of the Company's subsidiaries. Management currently believes that it is more likely than not that those deferred tax losses will not be realized in the foreseeable future. e. Taxes on income included in the statements of operations: 1) As follows: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Current: In Israel $ 945 $ 1,283 $ 1,473 Outside Israel 78 99 94 1,023 1,382 1,567 Taxes in respect of previous years - (52 ) - Deferred taxes in Israel 146 (46 ) 101 $ 1,169 $ 1,284 $ 1,668 2) Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates applicable to companies in Israel (see c. above), and the actual tax expense: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 5,372 $ 6,302 $ 7,151 Theoretical tax expense 1,343 1,670 1,895 Less - tax benefits arising from approved enterprise status, see a. above (208 ) (271 ) (401 ) 1,135 1,399 1,494 Increase (decrease) in taxes resulting from permanent differences: Disallowable deductions 42 42 22 Taxes in respect of previous years - (52 ) - Changes in valuation allowance 373 (747 ) 62 Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other (381 ) 642 90 Taxes on income for the reported years: $ 1,169 $ 1,284 $ 1,668 * As follows: Taxable in Israel $ 4,406 $ 5,346 $ 6,145 Taxable outside Israel 966 956 1,006 $ 5,372 $ 6,302 $ 7,151 f. Tax assessments: The Company has received final assessments from the tax authorities, through the year ended December 31, 2011. The subsidiaries, except Omni, have not been assessed since incorporation. Omni has received final tax assessments through tax year 2006. g. Sale of MIND Software SRL: On July 2014, the Company sold its holdings in “MIND Software SRL” to “MIND Software Limited” for $3,880 thousand. Following the sale, the Company recognized a capital gain, which was offset against carryforward capital losses from previous years.

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	12 Months Ended
	Dec. 31, 2016
Selected Statement of Operations Data [Abstract]
SUPPLEMENTARY BALANCE SHEET INFORMATION	NOTE 9 - SUPPLEMENTARY BALANCE SHEET INFORMATION a. Cash and cash equivalents: The balance as of December 31, 2016 and 2015 includes $8.6 million and $6.8 million, respectively, of highly liquid bank deposits. The deposits are mainly denominated in dollars and, as of December 31, 2016, bear weighted average annual interest of 1.06%. b. Accounts receivable: 1) Trade: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Open accounts $ 1,098 $ 2,488 Less - allowance for doubtful accounts * - (245 ) $ 1,098 $ 2,243 * The changes in allowance for doubtful accounts are composed as follows: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Balance at beginning of year $ 245 $ - $ - Increase (decrease) during the year (245 ) 245 - Balance at end of year $ - $ 245 $ - 2) Other: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Government of Israel $ 10 $ 19 Employees 8 26 Sundry 158 168 $ 176 $ 213 c. Accounts payable and accruals - other: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Payroll and related expenses $ 702 $ 964 Government institutions 348 1,166 Accrued vacation pay 67 63 Accrued expenses and sundry 116 71 $ 1,233 $ 2,264

Selected Statement of Operation

Selected Statement of Operations Data	12 Months Ended
	Dec. 31, 2016
Selected Statement of Operations Data [Abstract]
SELECTED STATEMENT OF OPERATIONS DATA	NOTE 10 - SELECTED STATEMENT OF OPERATIONS DATA a. Revenues: 1) The Company's revenues derive from sale of software products in one operating segment. The Company has two product lines: (i) product line “A” - billing and customer care solutions for service providers; and (ii) product line “B” - call accounting and call management solutions for enterprises. Revenues from Sentori and Omni product lines are included in product line “A”. The following table sets forth the revenues classified by product lines: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Product line “A” $ 14,544 $ 16,567 $ 20,990 Product line “B” 3,508 4,361 4,030 $ 18,052 $ 20,928 $ 25,020 2) The following table sets forth the geographical revenues classified by geographical location of the customers: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands United States $ 12,711 $ 11,292 $ 14,411 United Kingdom 589 904 763 Rest of Europe 2,744 5,793 6,402 Israel 880 1,417 2,256 Other 1,128 1,522 1,188 $ 18,052 $ 20,928 $ 25,020 Property and equipment - by geographical location: December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Israel $ 119 $ 182 Romania 378 407 United States 1 2 $ 498 $ 591 b. Research and development expenses: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 2,682 $ 2,148 $ 3,614 Rent and related expenses 330 321 367 Depreciation and amortization 53 72 114 Subcontracting 307 202 189 Other 145 200 255 $ 3,517 $ 2,943 $ 4,539 c. Selling and marketing expenses: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 911 $ 949 $ 963 Depreciation and amortization 5 4 3 Travel and conventions 71 123 79 Other 118 97 95 $ 1,105 $ 1,173 $ 1,140 d. General and administrative expenses: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 1,039 $ 923 $ 1,298 Depreciation and amortization 18 19 17 Insurance 50 55 65 Office expenses 69 68 99 Professional services 242 276 269 Allowance for doubtful accounts and bad debts (245 ) 245 - Other 220 180 186 $ 1,393 $ 1,766 $ 1,934 e. Financial income (expense) - net: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 49 $ 54 $ 151 Non-dollar currency gains - net 69 - - Income from marketable securities 143 102 148 Realized gain from sale of available-for-sale securities - - 38 Interest on available for sale securities 58 59 33 319 215 370 Expenses: Non-dollar currency losses - net (56 ) (315 ) (663 ) Realized loss from sale of available-for-sale securities (84 ) - - Bank commissions and charges (13 ) (14 ) (13 ) (153 ) (329 ) (676 ) $ 166 $ (114 ) $ (306 ) f. Earnings per ordinary share (“EPS”): The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Weighted average number of shares issued and outstanding - used in computation of basic EPS 19,234 19,183 18,949 Add - incremental shares from assumed exercise of options 73 100 83 Weighted average number of shares used in computation of diluted EPS 19,307 19,283 19,032 In the years ended December 31, 2016, 2015 and 2014, options that their effect was anti-dilutive, were not taken into account in computing the diluted EPS. The number of options that could potentially dilute EPS in the future and were not included in the computation of diluted EPS is 489,500 options, 708,000 options and 636,000 options, for the years ended December 31, 2016, 2015 and 2014 respectively.

Significant Accounting Polici18

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
Nature of operations	1) Nature of operations MIND C.T.I. Ltd. (the “Company”) is an Israeli company, which together with its subsidiaries operate in one business segment, providing integrated products and services. The Company designs, develops, markets, supports, implements and operates billing and customer care systems, including consulting and managed services, primarily to wireless, wireline, next-generation service providers throughout the world. The Company also provides a call management system used by enterprises for call accounting, traffic analysis, and fraud detection. The Company has wholly-owned subsidiaries in the United States ("Mind Software Inc." or "Sentori"), Romania ("Mind Software SRL"), and U.K ("Mind Software Limited" or "Omni").
Accounting principles	2) Accounting principles The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP").
Use of estimates in preparation of financial statements	3) Use of estimates in preparation of financial statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that 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 revenues and expenses during the reporting years. Actual results could differ from those estimates. The most significant estimates with regard to the Company's consolidated financial statements relate to revenue recognition of products and service sales using the percentage of completion method and the impairment of goodwill.
Functional currency	4) Functional currency The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s revenues are derived from sales outside of Israel, which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and financing activities are denominated in dollars. Thus, the functional currency of the Company and its subsidiaries is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are re-measured into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (detailed below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions: exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items, such as depreciation and amortization, etc.) - historical exchange rates. The resulting currency translation gains or losses are carried to financial income or expenses, as appropriate.
Principles of consolidation	b. Principles of consolidation: 1) The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. 2) Inter-company balances and transactions have been eliminated in consolidation. Profits from inter-company sales, not yet realized outside the Company and its subsidiaries, have also been eliminated.
Comprehensive Income	c. Comprehensive Income: The purpose of reporting comprehensive income is to report a measure of all changes in equity of an entity that result from recognized transactions and other economic events of the period resulting from transactions from non-owner sources.
Segment Reporting	d. Segment Reporting: The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that the Company operates in one reportable segment.
Cash equivalents	e. Cash equivalents: The Company and its subsidiaries consider all highly liquid investments, which include short-term bank deposits (up to three months from original date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents.
Fair Value of Financial Instruments	f. Fair Value of Financial Instruments: The Company records its financial assets and liabilities at fair value. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company recognizes transfers among Level 1, Level 2 and Level 3 classifications as of the actual date of the events or change in circumstances that caused the transfers. The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying amounts which approximate fair value due to the short-term maturity of these instruments.
Short-term bank deposits	g. Short-term bank deposits: Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost.
Marketable securities	h. Marketable securities: Marketable securities are classified as "financial assets held at fair value through profit or loss" when held for trading or are designated upon initial recognition as financial assets at fair value through profit or loss. Financial asset at fair value through profit or loss is shown at fair value. Any gain or loss arising from changes in fair value, including those originating from changes in exchange rates is recognized in profit or loss in the period in which the change occurred. Net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset.
Available-for-sale ("AFS ") financial assets	i. Available-for-sale ("AFS ") financial assets: Available-for-sale investments are classified within cash and cash equivalents, short-term investments, or long-term investments based on the remaining maturity of the investment, and are reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity (deficit) within accumulated other comprehensive income. All realized gains and losses and unrealized losses resulting from declines in fair value that are other-than-temporary are recorded in other expense, net in the period of occurrence. The Company uses the specific identification method to determine the realized gains and losses on investments. For all investments in marketable securities, the Company assesses whether the impairment is other-than-temporary. If the fair value of a security is less than its amortized cost basis, an impairment is considered other-than-temporary if (i) the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (ii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on condition (i), the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (ii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security, will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income. The Company evaluates both qualitative and quantitative factors such as duration and severity of the unrealized losses, credit ratings, default and loss rates of the underlying collateral, structure and credit enhancements to determine if a credit loss may exist. See also Note 2.
Inventories	j. Inventories: Inventories are valued at the lower of cost or market value. Cost is determined by the “first-in, first-out” method. Most of the inventories consist of acquired hardware.
Property and equipment	k. Property and equipment: 1) These assets are stated at cost less accumulated depreciation. 2) The assets are depreciated by the straight-line method, on basis of their estimated useful life. Annual rates of depreciation are as follows: % Computers and electronic equipment 15-33 (mainly 33) Office furniture and equipment 6-7 Vehicles 15 Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements.
Goodwill	l. Goodwill: Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under Accounting Standards Codification (“ASC”) 350, "Goodwill" is not amortized but rather tested for impairment at least annually. The Company has a single reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company performs annual testing for impairment of the goodwill during the third quarter of each year, see also Note 4.
Income taxes	m. Income taxes: The Company accounts for income taxes, in accordance with the provisions of ASC 740 "Income Taxes" under the liability method of accounting. Under the liability method, deferred taxes are determined based on the differences between the financial statement and tax basis of assets and liabilities at enacted tax rates in effect in the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts expected to be realized. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. For uncertain tax positions, the Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within income tax expense.
Revenue recognition	n. Revenue recognition: The Company’s revenues consist of revenues generated from software licensing, sales of professional services, including integration and implementation, sales of third-party hardware and software, maintenance services, managed services and training. The Company applies the provisions of Statement of ASC 985-605, "Software -Revenue Recognition" and ASC 605-35, "Construction-Type and Production-Type Contracts", as follows: i) Licenses Revenue from sale of products is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collection is probable. If collection is not considered probable, revenue is recognized when the fee is collected. The Company generally does not grant a right of return on products sold to its customers. ii) Services The services the Company provides consist of implementation, training, hardware installation, maintenance, support and project management. All services are priced on a fixed price basis and are recognized ratably over the period in which the services are provided except services which are recognized under the percentage-of-completion method as described below. Products are mainly supplied with maintenance for a period of one year from delivery. When revenue on sale of the products is recognized, the Company defers a portion of the sales price and recognizes it as maintenance revenue ratably over the above period. The portion of the sales price that is deferred is determined based on the fair value of the service as priced in transactions in which the Company renders maintenance solely. Where vendor specific objective evidence for fair value cannot be determined, the entire sale is being recognized over the maintenance period. Where the services are considered essential to the functionality of the software products, both the software product revenue and the revenue related to the integration and implementation services are recognized under the percentage-of-completion method in accordance with ASC 605-35. The Company generally determines the percentage-of-completion by comparing the labor performed to date to the estimated total labor required to complete the project. When the estimate indicates that a loss will be incurred, such loss is recorded in the period identified. Significant judgments and estimates are involved in determining the percent complete of each contract. Different assumptions could yield materially different results. (iii) Managed Services Revenues from managed services include a monthly fee for services and for right of use and are recorded as service revenues and license revenues, respectively. The monthly fee is based mainly on number of subscribers or customer’s business volume and the agreements include a minimum monthly charge. These revenues are recognized on a monthly basis. Where installation services are sold together with a managed services contract, the installation services are being recognized over the entire contract term, commencing the deployment finalization. Deferred costs of revenues are presented net of related advances from customers.
Research and development expenses	o. Research and development expenses: Pursuant to ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed", development costs related to software products are expensed as incurred until the “technological feasibility” of the product has been established. Because of the relatively short time period between "technological feasibility" and product release, and the insignificant amount of costs incurred during such period, no software development costs have been capitalized.
Allowance for doubtful accounts	p. Allowance for doubtful accounts: The allowance is determined for specific debts doubtful of collection.
Share-based compensation	q. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method over the requisite service period for the entire award, net of estimated forfeitures.
Earnings per share ("EPS")	r. Earnings per share ("EPS"): Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the year, net of treasury shares. Diluted EPS reflects the increase in the weighted average number of shares outstanding that would result from the assumed exercise of employee stock options, calculated using the treasury-stock-method.
Treasury shares	s. Treasury shares: Treasury shares are presented as a reduction in shareholders' equity, at their cost to the Company, under "Treasury shares".
Concentration of credit risks	t. Concentration of credit risks: Most of the Company’s and its subsidiaries' cash and cash equivalents as of December 31, 2016 and 2015 were deposited with Israeli, European and U.S. banks. The Company is not aware of any specific credit risks in respect of these banks. The Company's revenues have been generated from a large number of customers. Consequently, the exposure to credit risks relating to trade receivables is limited. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts.
Recently issued accounting pronouncements	u. Recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price(s); (4) allocate the transaction price(s) to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires advanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of FASB’s revenue standard under ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. As a result of ASU 2015-14, the guidance under ASU 2014-09 shall apply for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU 2016-12, which amends guidance in the new revenue standard on collectibility, noncash consideration, presentation of sales tax and transition. ASU 2016-08, ASU 2016-10 and ASU 2016-12 must be adopted together with the new revenue standard. The Company is currently reviewing and evaluating this guidance and its impact on its consolidated financial statements. In November 2015 the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The Company adopted this ASU, and applied it on a retrospective basis, in the fourth quarter of fiscal year 2016. See Note 8 for the effects of its adoption on the Company’s consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities”, which provides targeted improvements to the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. Specific accounting areas addressed include, equity investments, financial liabilities reported under the fair value option and valuation allowance assessment resulting from unrealized losses on available-for-sale securities. The ASU also changes certain presentation and disclosure requirements for financial instruments. The Update is to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company in its first quarter of fiscal year 2018. Early adoption, with certain exceptions, is not permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which amends, among other things, the existing guidance by requiring lessees to recognize lease assets (right-to-use) and liabilities (for reasonably certain lease payments) arising from operating leases on the balance sheet. For leases with a term of twelve months or less, ASU 2016-02 permits an entity to make an accounting policy election to recognize such leases as lease expense, generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. The Company is currently evaluating ASU 2016-02 and its impact on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies certain provisions associated with the accounting for stock compensation. Among other things, ASU 2016-09 requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of income and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities in the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company is currently reviewing and evaluating this guidance and its impact on its consolidated financial statements

Significant Accounting Polici19

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
Schedule of annual rates of depreciation property and equipment	% Computers and electronic equipment 15-33 (mainly 33) Office furniture and equipment 6-7 Vehicles 15

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Marketable Securities [Abstract]
Schedule of marketable securities	December 31, Maturity year 2 0 1 6 2 0 1 5 U.S. dollars in thousands Short-term (a): Municipal bond $ 4,117 $ 4,446 Corporate bond 667 705 $ 4,784 $ 5,151 Long-term - security bond (b) Perpetual $ 832 $ 1,441 a. The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company’s investment policy requires investments to be investment grade, rated single -A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets. b. As of December 31, 2016 the Company held a long-term security bond which is classified as available-for-sale security and is presented on its fair value. The fair value of the available-for-sale security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC 820).

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment [Abstract]
Schedule of composition of assets, grouped by major classification	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Computers and electronic equipment $ 1,807 $ 1,756 Land 263 263 Office furniture and equipment 152 166 Vehicles 146 201 Leasehold improvements 8 8 2,376 2,394 Less - accumulated depreciation and amortization 1,878 1,803 $ 498 $ 591

Employees' Rights upon Retire22

Employees' Rights upon Retirement (Tables)	12 Months Ended
	Dec. 31, 2016
Employees' Rights upon Retirement [Abstract]
Summary of amounts accrued and the portions funded, with severance pay funds and by the insurance policies	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Accrued severance pay $ 1,687 $ 1,786 Less - amounts funded (presented in “investment and other non-current assets”) (1,565 ) (1,623 ) Unfunded balance $ 122 $ 163

Commitments and Contingent Li23

Commitments and Contingent Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingent Liabilities [Abstract]
Schedule of future minimum lease commitments	U.S. dollars in thousands Years ending December 31: 2017 $ 528 2018 238 2019 44 2020 44 2021-2025 184 $ 1,038

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Shareholders' Equity [Abstract]
Summary of the status of the 2011 share incentive plan	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Options outstanding at beginning of year 710,300 $ 2.51 851,600 $ 2.63 460,000 $ 1.93 Changes during year: Granted (a) 344,000 $ 0.003 116,800 $ 1.66 666,000 $ 2.81 Exercised (59,000 ) $ 1.45 (92,100 ) $ 1.85 (225,400 ) $ 1.88 Forfeited (117,800 ) $ 2.49 (166,000 ) $ 2.88 (49,000 ) $ 2.03 Expired (2,000 ) $ 2.16 - - - - Options outstanding at end of year 875,500 $ 1.60 710,300 $ 2.51 851,600 $ 2.63 Options exercisable at end of year 246,500 $ 2.87 51,000 $ 1.98 43,600 $ 2.00 Vested and expected to vest at end of year 771,084 $ 1.81 Weighted average grant date fair value of options granted during the year (b) $ 1.46 $ 0.94 $ 0.51
Summary of fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 Dividend yield 11 % 10 % 11 % Expected volatility* 35 % 48 % 44 % Average risk-free interest rate 2.0 % 1.5 % 1.5 % Expected average term - in years 3.88 3.88 3.88 * Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise.
Summarizes information about options outstanding and exercisable	Options Outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted exercisable average Weighted Range of at remaining average at remaining average exercise December 31, contractual exercise December 31, contractual exercise prices 2 0 1 6 life price 2 0 1 6 life price Years Years $ 0.003 – 2.160 423,000 4.33 $ 0.18 19,000 1.18 $ 2.16 $ 2.410 – 2.947 452,500 2.81 $ 2.93 227,500 2.75 $ 2.93 875,500 3.54 $ 1.60 246,500 2.63 $ 2.87

Taxes on Income (Tables)

Taxes on Income (Tables)	12 Months Ended
	Dec. 31, 2016
Taxes on Income [Abstract]
Summary of reduced flat tax rate	Tax Year Development Region “A” Other Areas within Israel 2011-2012 10 % 15 % 2013 7 % 12.5 % 2014 and thereafter 9 % 16 %
Summary of income tax examinations	December 31 2 0 1 6 2 0 1 5 U.S. dollars in thousands 1) Provided in respect of the following: Research and development expenses $ 51 $ 54 Carryforward tax losses 1,867 1,494 Other 44 187 Less - valuation allowance (1,867 ) (1,494 ) $ 95 $ 241
Schedule of taxes on income included in statements of operations	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Current: In Israel $ 945 $ 1,283 $ 1,473 Outside Israel 78 99 94 1,023 1,382 1,567 Taxes in respect of previous years - (52 ) - Deferred taxes in Israel 146 (46 ) 101 $ 1,169 $ 1,284 $ 1,668
Schedule of reconciliation of theoretical tax expense	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 5,372 $ 6,302 $ 7,151 Theoretical tax expense 1,343 1,670 1,895 Less - tax benefits arising from approved enterprise status, see a. above (208 ) (271 ) (401 ) 1,135 1,399 1,494 Increase (decrease) in taxes resulting from permanent differences: Disallowable deductions 42 42 22 Taxes in respect of previous years - (52 ) - Changes in valuation allowance 373 (747 ) 62 Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other (381 ) 642 90 Taxes on income for the reported years: $ 1,169 $ 1,284 $ 1,668 * As follows: Taxable in Israel $ 4,406 $ 5,346 $ 6,145 Taxable outside Israel 966 956 1,006 $ 5,372 $ 6,302 $ 7,151

Supplementary Balance Sheet I26

Supplementary Balance Sheet Information (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Statement of Operations Data [Abstract]
Schedule of accounts receivable, trade	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Open accounts $ 1,098 $ 2,488 Less - allowance for doubtful accounts * - (245 ) $ 1,098 $ 2,243 * The changes in allowance for doubtful accounts are composed as follows: Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Balance at beginning of year $ 245 $ - $ - Increase (decrease) during the year (245 ) 245 - Balance at end of year $ - $ 245 $ -
Schedule of accounts receivable, other	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Government of Israel $ 10 $ 19 Employees 8 26 Sundry 158 168 $ 176 $ 213
Schedule of accounts payable and accruals - other	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Payroll and related expenses $ 702 $ 964 Government institutions 348 1,166 Accrued vacation pay 67 63 Accrued expenses and sundry 116 71 $ 1,233 $ 2,264

Selected Statement of Operati27

Selected Statement of Operations Data (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Statement of Operations Data [Abstract]
Schedule of revenues classified by product lines	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Product line “A” $ 14,544 $ 16,567 $ 20,990 Product line “B” 3,508 4,361 4,030 $ 18,052 $ 20,928 $ 25,020
Schedule of geographical revenues classified by geographical location of the customers	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands United States $ 12,711 $ 11,292 $ 14,411 United Kingdom 589 904 763 Rest of Europe 2,744 5,793 6,402 Israel 880 1,417 2,256 Other 1,128 1,522 1,188 $ 18,052 $ 20,928 $ 25,020
Schedule of property and equipment - by geographical location	December 31, 2 0 1 6 2 0 1 5 U.S. dollars in thousands Israel $ 119 $ 182 Romania 378 407 United States 1 2 $ 498 $ 591
Schedule of research and development expenses	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 2,682 $ 2,148 $ 3,614 Rent and related expenses 330 321 367 Depreciation and amortization 53 72 114 Subcontracting 307 202 189 Other 145 200 255 $ 3,517 $ 2,943 $ 4,539
Schedule of selling and marketing expenses	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 911 $ 949 $ 963 Depreciation and amortization 5 4 3 Travel and conventions 71 123 79 Other 118 97 95 $ 1,105 $ 1,173 $ 1,140
Schedule of general and administrative expenses	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Payroll and related expenses $ 1,039 $ 923 $ 1,298 Depreciation and amortization 18 19 17 Insurance 50 55 65 Office expenses 69 68 99 Professional services 242 276 269 Allowance for doubtful accounts and bad debts (245 ) 245 - Other 220 180 186 $ 1,393 $ 1,766 $ 1,934
Schedule of financial income (expense) - net	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 49 $ 54 $ 151 Non-dollar currency gains - net 69 - - Income from marketable securities 143 102 148 Realized gain from sale of available-for-sale securities - - 38 Interest on available for sale securities 58 59 33 319 215 370 Expenses: Non-dollar currency losses - net (56 ) (315 ) (663 ) Realized loss from sale of available-for-sale securities (84 ) - - Bank commissions and charges (13 ) (14 ) (13 ) (153 ) (329 ) (676 ) $ 166 $ (114 ) $ (306 )
Schedule of earnings per ordinary share (''EPS'')	Years ended December 31, 2 0 1 6 2 0 1 5 2 0 1 4 U.S. dollars in thousands Weighted average number of shares issued and outstanding - used in computation of basic EPS 19,234 19,183 18,949 Add - incremental shares from assumed exercise of options 73 100 83 Weighted average number of shares used in computation of diluted EPS 19,307 19,283 19,032

Significant Accounting Polici28

Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2016
Computers and electronic equipment [Member] | Minimum [Member]
Significant Accounting Policies (Textual)
Property, plant and equipment, depreciation percentage	15.00%
Computers and electronic equipment [Member] | Maximum [Member]
Significant Accounting Policies (Textual)
Property, plant and equipment, depreciation percentage	33.00%
Office furniture and equipment [Member] | Minimum [Member]
Significant Accounting Policies (Textual)
Property, plant and equipment, depreciation percentage	6.00%
Office furniture and equipment [Member] | Maximum [Member]
Significant Accounting Policies (Textual)
Property, plant and equipment, depreciation percentage	7.00%
Vehicles [Member]
Significant Accounting Policies (Textual)
Property, plant and equipment, depreciation percentage	15.00%

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Long-term - security bond Maturity year	[1]	Perpetual
Short-term	[2]	$ 4,784	$ 5,151
Long-term - security bond	[1]	832	1,441
Municipal bond [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term	[2]	4,117	4,446
Corporate bond [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term	[2]	$ 667	$ 705
[1]	As of December 31, 2016 the Company held a long-term security bond which is classified as available-for-sale security and is presented on its fair value. The fair value of the available-for-sale security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC 820).
[2]	The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company's investment policy requires investments to be investment grade, rated single -A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets.

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,376	$ 2,394
Less - accumulated depreciation and amortization	1,878	1,803
Property and equipment, net	498	591
Computers and electronic equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,807	1,756
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	263	263
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	152	166
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	146	201
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8	$ 8

Property and Equipment (Detai31

Property and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment (Textual)
Depreciation and amortization expenses	$ 161	$ 173	$ 233

Employees' Rights upon Retire32

Employees' Rights upon Retirement (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Employees' Rights upon Retirement [Abstract]
Accrued severance pay	$ 1,687	$ 1,786
Less - amounts funded (presented in ''investment and other non-current assets'')	(1,565)	(1,623)
Unfunded balance	$ 122	$ 163

Employees' Rights upon Retire33

Employees' Rights upon Retirement (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employees' Rights Upon Retirement (Textual)
Severance pay expenses	$ (123)	$ 105	$ 68
Employee severance [Member]
Employees' Rights Upon Retirement (Textual)
Severance pay expenses	$ 169	$ 271	$ 181

Commitments and Contingent Li34

Commitments and Contingent Liabilities (Details) $ in Thousands	Dec. 31, 2016USD ($)
Years ending December 31:
2,017	$ 528
2,018	238
2,019	44
2,020	44
2021-2025	184
Future minimum lease commitments	$ 1,038

Commitments and Contingent Li35

Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingent Liabilities (Textual)
Rental expense	$ 542	$ 529	$ 603
Operation lease, description	Lease agreements that will expire between 2017 and 2025.

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Common Stock [Member] - $ / shares		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, outstanding at beginning of year		710,300	851,600	460,000
Number of options, granted	[1]	344,000	116,800	666,000
Number of options, exercised		(59,000)	(92,000)	(225,000)
Number of options, forfeited		(117,800)	(166,000)	(49,000)
Number of options, expired		(2,000)
Number of options, outstanding at end of year		875,500	710,300	851,600
Number of options, exercisable at end of year		246,500	51,000	43,600
Vested and expected to vest at end of year, Number		771,084
Weighted average exercise price, options outstanding at beginning of year		$ 2.51	$ 2.63	$ 1.93
Weighted average exercise price, options granted	[1]	0.003	1.66	2.81
Weighted average exercise price, options exercised		1.45	1.85	1.88
Weighted average exercise price, options forfeited		2.49	2.88	2.03
Weighted average exercise price, options expired		2.16
Weighted average exercise price, options options outstanding at end of year		1.60	2.51	2.63
Weighted average exercise price, options exercisable at end of year		2.87	1.98	2
Vested and expected to vest at end of year, Weighted average exercise price		1.81
Weighted average grant date fair value of options granted during the year	[2]	$ 1.46	$ 0.94	$ 0.51
[1]	In the year ended December 31, 2016 the options were granted with an exercise price equal to par value of NIS 0.01. In the years ended December 31, 2015 and 2014 the options were granted with an exercise price equal to the average closing price per share of the Company's ordinary shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to par value of NIS 0.01.
[2]	The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions:

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shareholders' Equity [Abstract]
Dividend yield		11.00%	10.00%	11.00%
Expected volatility	[1]	35.00%	48.00%	44.00%
Average risk-free interest rate		2.00%	1.50%	1.50%
Expected average term - in years		3 years 10 months 17 days	3 years 10 months 17 days	3 years 10 months 17 days
[1]	Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise.

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number outstanding at December 31, 2 0 1 6 | shares	875,500
Options Outstanding, Weighted average remaining contractual life (Year)	3 years 6 months 15 days
Options Outstanding, Weighted average exercise price	$ 1.60
Options Exercisable, Number exercisable at December 31, 2 0 1 6 | shares	246,500
Options Exercisable, Weighted average remaining contractual life (Years)	2 years 7 months 17 days
Options Exercisable, Weighted average exercise price	$ 2.87
0.003 - 2.160 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices (Lower Range Limit)	0.003
Range of exercise prices (Upper Range Limit)	$ 2.160
Options Outstanding, Number outstanding at December 31, 2 0 1 6 | shares	423,000
Options Outstanding, Weighted average remaining contractual life (Year)	4 years 3 months 29 days
Options Outstanding, Weighted average exercise price	$ 0.18
Options Exercisable, Number exercisable at December 31, 2 0 1 6 | shares	19,000
Options Exercisable, Weighted average remaining contractual life (Years)	1 year 2 months 5 days
Options Exercisable, Weighted average exercise price	$ 2.16
2.410 - 2.947 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices (Lower Range Limit)	2.410
Range of exercise prices (Upper Range Limit)	$ 2.947
Options Outstanding, Number outstanding at December 31, 2 0 1 6 | shares	452,500
Options Outstanding, Weighted average remaining contractual life (Year)	2 years 9 months 22 days
Options Outstanding, Weighted average exercise price	$ 2.93
Options Exercisable, Number exercisable at December 31, 2 0 1 6 | shares	227,500
Options Exercisable, Weighted average remaining contractual life (Years)	2 years 9 months
Options Exercisable, Weighted average exercise price	$ 2.93

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) $ / shares in Units, $ in Thousands	12 Months Ended			16 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2009USD ($)shares	Dec. 31, 2016₪ / shares	Dec. 31, 2011₪ / sharesshares
Shareholders' Equity (Textual)
Purchased an aggregate amount of ordinary shares | shares				3,165,092
Total consideration				$ 2,800
Dividends paid per share | $ / shares	$ 0.27	$ 0.30	$ 0.24
Compensation costs	$ 137	$ 138	$ 72
Total unrecognized compensation costs	$ 525
Total compensation cost not yet recognized, weighted average period for recognition	1 year 8 months 12 days
Exercise of options issued to employees from treasury shares	$ 85	$ 171	424
Treasury shares | shares	2,398,592	2,457,592
Total intrinsic value of options exercised	$ 51	$ 176	$ 322
Aggregate intrinsic value of the outstanding options	966
Aggregate intrinsic value of the exercisable options	$ 6
Minimum [Member]
Shareholders' Equity (Textual)
Outstanding options granted, vesting period	3 years
Options not exercised, expiration period after the day of grant	5 years
Maximum [Member]
Shareholders' Equity (Textual)
Outstanding options granted, vesting period	5 years
Options not exercised, expiration period after the day of grant	7 years
2011 Share Incentive Plan [Member]
Shareholders' Equity (Textual)
Options for ordinary shares | shares						1,800,000
Par value granted to employees | ₪ / shares					₪ 0.01	₪ 0.01
Options granted exercise price of ordinary shares, description	The options were granted with an exercise price equal to the average closing price per share of the Company's ordinary shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to par value of NIS 0.01.

Taxes on Income (Details)

Taxes on Income (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Expenses Benefit [Line Items]
Reduced flat tax rate				25.00%
Development Region ''A'' [Member]
Income Tax Expenses Benefit [Line Items]
Reduced flat tax rate	9.00%	7.00%	10.00%
Other Areas within Israel [Member]
Income Tax Expenses Benefit [Line Items]
Reduced flat tax rate	16.00%	12.50%	15.00%

Taxes on Income (Details 1)

Taxes on Income (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Taxes on Income [Abstract]
Research and development expenses	$ 51	$ 54
Carryforward tax losses	1,867	1,494
Other	44	187
Less - valuation allowance	(1,867)	(1,494)
Deferred income taxes	$ 95	$ 241

Taxes on Income (Details 2)

Taxes on Income (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expenses Benefit [Line Items]
Current income tax expense benefit	$ 1,023	$ 1,382	$ 1,567
Taxes in respect of previous years	0	(52)	0
Deferred taxes in Israel	146	(46)	101
Income tax expense benefit	1,169	1,284	1,668
In Israel [Member]
Income Tax Expenses Benefit [Line Items]
Current state and local tax expense benefit	945	1,283	1,473
Outside Israel [Member]
Income Tax Expenses Benefit [Line Items]
Current foreign tax expense benefit	$ 78	$ 99	$ 94

Taxes on Income (Details 3)

Taxes on Income (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Taxes on Income [Abstract]
Income before taxes on income, as reported in the statements of operations*	$ 5,372	$ 6,302	$ 7,151
Theoretical tax expense	1,343	1,670	1,895
Less - tax benefits arising from approved enterprise status, see a. above	(208)	(271)	(401)
Theoretical tax expense net of tax benefits	1,135	1,399	1,494
Increase (decrease) in taxes resulting from permanent differences:
Disallowable deductions	42	42	22
Taxes in respect of previous years	0	(52)	0
Changes in valuation allowance	373	(747)	62
Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other	(381)	642	90
Taxes on income for the reported years:	1,169	1,284	1,668
* As follows:
Taxable in Israel	4,406	5,346	6,145
Taxable outside Israel	966	956	1,006
Total	$ 5,372	$ 6,302	$ 7,151

Taxes on Income (Details Textua

Taxes on Income (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2016	Dec. 31, 2011
Income Tax Expenses Benefit [Line Items]
Effective income tax rate reconciliation, deductions, dividends		25.00%
Tax rate			25.00%
Tax rate on dividends distributed to individuals and foreign residents		15.00%
Israeli resident corporations [Member]
Income Tax Expenses Benefit [Line Items]
Withholding tax rate		0.00%
Israeli resident individuals [Member]
Income Tax Expenses Benefit [Line Items]
Withholding tax rate		15.00%
Non-Israeli residents [Member]
Income Tax Expenses Benefit [Line Items]
Withholding tax rate		15.00%
Subsidiaries [Member]
Income Tax Expenses Benefit [Line Items]
Tax credit carryforward, amount		$ 5,500
MIND Software Limited [Member]
Income Tax Expenses Benefit [Line Items]
Proceeds from sale of productive assets	$ 3,880
January 1, 2014 [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate on dividends distributed to individuals and foreign residents		20.00%
January 1, 2016 [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		25.00%
Development Area A [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		9.00%
Other Areas within Israel [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		16.00%
In Israel [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		22.00%
January 2016 legislation to amend [Member] | January 1, 2016 [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		25.00%
December 2016 legislation to amend [Member] | January 1 2017 [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		24.00%
December 2016 legislation to amend [Member] | January 1 2018 [Member]
Income Tax Expenses Benefit [Line Items]
Tax rate		23.00%

Supplementary Balance Sheet I45

Supplementary Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Trade:
Open accounts	$ 1,098	$ 2,488
Less - allowance for doubtful accounts	0	(245)	$ 0	$ 0
Trade	$ 1,098	$ 2,243

Supplementary Balance Sheet I46

Supplementary Balance Sheet Information (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Changes in allowance for doubtful accounts
Balance at beginning of year	$ 245	$ 0	$ 0
Increase (decrease) during the year	(245)	245	0
Balance at end of year	$ 0	$ 245	$ 0

Supplementary Balance Sheet I47

Supplementary Balance Sheet Information (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other:
Nontrade Receivables, Current	$ 176	$ 213
Government of Israel [Member]
Other:
Nontrade Receivables, Current	10	19
Employees [Member]
Other:
Nontrade Receivables, Current	8	26
Sundry [Member]
Other:
Nontrade Receivables, Current	$ 158	$ 168

Supplementary Balance Sheet I48

Supplementary Balance Sheet Information (Details 3) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts payable and accruals - other:
Payroll and related expenses	$ 702	$ 964
Government institutions	348	1,166
Accrued vacation pay	67	63
Accrued expenses and sundry	116	71
Accounts payable and accruals - other	$ 1,233	$ 2,264

Supplementary Balance Sheet I49

Supplementary Balance Sheet Information (Details Textual) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Supplementary Balance Sheet Information (Textual)
Cash and cash equivalents	$ 8.6	$ 6.8
Weighted average annual interest rate	1.06%

Selected Statement of Operati50

Selected Statement of Operations Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 18,052	$ 20,928	$ 25,020
Product line "A" [Member]
Revenues	14,544	16,567	20,990
Product line "B" [Member]
Revenues	$ 3,508	$ 4,361	$ 4,030

Selected Statement of Operati51

Selected Statement of Operations Data (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 18,052	$ 20,928	$ 25,020
United States [Member]
Revenues	12,711	11,292	14,411
United Kingdom [Member]
Revenues	589	904	763
Rest of Europe [Member]
Revenues	2,744	5,793	6,402
Israel [Member]
Revenues	880	1,417	2,256
Other [Member]
Revenues	$ 1,128	$ 1,522	$ 1,188

Selected Statement of Operati52

Selected Statement of Operations Data (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment - by geographical location
Property and equipment, net	$ 498	$ 591
Israel [Member]
Property and equipment - by geographical location
Property and equipment, net	119	182
Romania [Member]
Property and equipment - by geographical location
Property and equipment, net	378	407
United States [Member]
Property and equipment - by geographical location
Property and equipment, net	$ 1	$ 2

Selected Statement of Operati53

Selected Statement of Operations Data (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Research and development expenses:
Research and development expenses	$ 3,517	$ 2,943	$ 4,539
Research and development expense [Member]
Research and development expenses:
Payroll and related expenses	2,682	2,148	3,614
Rent and related expenses	330	321	367
Depreciation and amortization	53	72	114
Subcontracting	307	202	189
Other	$ 145	$ 200	$ 255

Selected Statement of Operati54

Selected Statement of Operations Data (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Selling and marketing expenses:
Selling and marketing expenses	$ 1,105	$ 1,173	$ 1,140
Selling and marketing expense [Member]
Selling and marketing expenses:
Payroll and related expenses	911	949	963
Depreciation and amortization	5	4	3
Travel and conventions	71	123	79
Other	$ 118	$ 97	$ 95

Selected Statement of Operati55

Selected Statement of Operations Data (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
General and administrative expenses:
General and administrative expenses	$ 1,393	$ 1,766	$ 1,934
General and administrative expense [Member]
General and administrative expenses:
Payroll and related expenses	1,039	923	1,298
Depreciation and amortization	18	19	17
Insurance	50	55	65
Office expenses	69	68	99
Professional services	242	276	269
Allowance for doubtful accounts and bad debts	(245)	245	0
Other	$ 220	$ 180	$ 186

Selected Statement of Operati56

Selected Statement of Operations Data (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income:
Interest on bank deposits and short-term investments	$ 49	$ 54	$ 151
Non-dollar currency gains - net	69	0	0
Income from marketable securities	143	102	148
Realized gain from sale of available-for-sale securities	0	0	38
Interest on available for sale securities	58	59	33
Other Nonoperating Income	319	215	370
Expenses:
Non-dollar currency losses - net	(56)	(315)	(663)
Realized loss from sale of available-for-sale securities	(84)	0	0
Bank commissions and charges	(13)	(14)	(13)
Other Nonoperating Expense	(153)	(329)	(676)
Financial income (expense) - net	$ 166	$ (114)	$ (306)

Selected Statement of Operati57

Selected Statement of Operations Data (Details 7) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings per ordinary share (''EPS''):
Weighted average number of shares issued and outstanding - used in computation of basic EPS	19,234	19,183	18,949
Add - incremental shares from assumed exercise of options	73	100	83
Weighted average number of shares used in computation of diluted EPS	19,307	19,283	19,032

Selected Statement of Operati58

Selected Statement of Operations Data (Details Textual) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	489,500	708,000	636,000