Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | MIND CTI LTD |
Trading Symbol | MNDO |
Document Type | 20-F/A |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 20,124,326 |
Amendment Flag | true |
Amendment Description | This Amendment No. 1 (this “Amendment”) to the Annual Report on Form 20-F of MIND C.T.I. Ltd. (the “Company”) for the year ended December 31, 2022, filed on March 14, 2023 (the “Annual Report”), is being filed solely for the purpose of adding the report of the independent registered public accounting firm that audited the Company’s consolidated financial statements as of, and for the two years ended, December 31, 2021 (the “Report”), which was inadvertently omitted from the original filing.This Amendment consists of a cover page, this explanatory note, the financial statements referenced in Item 18 (with the addition of the Report and resulting renumbering of the “F” pages), Item 19, the signature page and the Exhibits (as updated to include new certifications of our Chief Executive Officer and Chief Financial Officer).Other than as expressly set forth above, this Amendment does not amend the information in any other item of the Annual Report or reflect any events that have occurred after the Annual Report was originally filed. |
Entity Central Index Key | 0001119083 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 000-31215 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 2 HaCarmel Street |
Entity Address, City or Town | Yoqneam |
Entity Address, Postal Zip Code | 2066724 |
Entity Address, Country | IL |
Title of 12(b) Security | Ordinary Shares, nominal value NIS 0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1375 |
Auditor Name | Fahn Kanne & Co. Grant Thornton Israel |
Auditor Location | Tel-Aviv |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 2 HaCarmel Street |
Entity Address, City or Town | Yoqneam |
Entity Address, Postal Zip Code | 2066724 |
Entity Address, Country | IL |
Contact Personnel Name | Arie Abramovich |
City Area Code | +972 |
Local Phone Number | -4-9936666 |
Contact Personnel Email Address | investor@mindcti.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,265 | $ 4,182 |
Short-term bank deposits | 12,040 | 14,071 |
Marketable securities | 174 | 208 |
Trade receivables, net | 2,357 | 1,803 |
Other current assets | 293 | 145 |
Prepaid expenses | 169 | 124 |
Total current assets | 20,298 | 20,533 |
NON-CURRENT ASSETS: | ||
Trade receivables | 58 | |
Severance pay fund | 1,914 | 2,325 |
Deferred income taxes | 143 | 184 |
Property and equipment, net | 225 | 175 |
Right-of-use assets, net | 946 | 1,463 |
Intangible assets, net | 374 | 522 |
Goodwill | 7,785 | 7,929 |
Total assets | 31,743 | 33,131 |
CURRENT LIABILITIES: | ||
Trade payables | 937 | 839 |
Other current liabilities and accruals | 1,978 | 2,265 |
Current maturities of lease liabilities | 271 | 376 |
Deferred revenues | 1,986 | 2,155 |
Total current liabilities | 5,172 | 5,635 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 107 | 154 |
Lease liabilities, net of current maturities | 615 | 1,098 |
Accrued severance pay | 1,930 | 2,361 |
Deferred income taxes | 112 | 157 |
Total liabilities | 7,936 | 9,405 |
Share capital - Ordinary shares of NIS 0.01 par value – Authorized: 88,000,000 shares at December 31, 2022 and 2021; Issued: 21,660,010 shares at December 31, 2022 and 2021; Outstanding: 20,124,326 and 20,057,326 shares at December 31, 2022 and 2021, respectively | 54 | 54 |
Additional paid-in capital | 27,546 | 27,324 |
Accumulated other comprehensive loss | (1,073) | (836) |
Accumulated deficit | (1,662) | (1,722) |
Treasury shares - 1,535,684 and 1,602,684 shares at December 31, 2022 and 2021, respectively | (1,058) | (1,094) |
Total shareholders’ equity | 23,807 | 23,726 |
Total liabilities and shareholders’ equity | $ 31,743 | $ 33,131 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - ₪ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in New Shekels per share) | ₪ 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 | 20,124,326 | 20,057,326 |
Treasury shares | 1,535,684 | 1,602,684 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Sales of licenses | $ 611 | $ 1,548 | $ 1,366 |
Services | 20,940 | 24,783 | 22,008 |
Total revenues | 21,551 | 26,331 | 23,374 |
COST OF REVENUES | |||
Cost of sales of licenses | 108 | 86 | 82 |
Cost of services | 9,936 | 12,364 | 11,071 |
Total cost of revenues | 10,044 | 12,450 | 11,153 |
GROSS PROFIT | 11,507 | 13,881 | 12,221 |
OPERATING EXPENSES: | |||
Research and development | 3,495 | 4,048 | 3,963 |
Selling and marketing | 965 | 1,403 | 973 |
General and administrative | 1,523 | 1,602 | 1,822 |
Total operating expenses | 5,983 | 7,053 | 6,758 |
OPERATING INCOME | 5,524 | 6,828 | 5,463 |
FINANCIAL INCOME, net | 93 | 55 | 379 |
INCOME BEFORE TAXES ON INCOME | 5,617 | 6,883 | 5,842 |
TAXES ON INCOME | 330 | 936 | 459 |
NET INCOME | $ 5,287 | $ 5,947 | $ 5,383 |
Basic (in Dollars per share) | $ 0.26 | $ 0.3 | $ 0.27 |
Diluted (in Dollars per share) | $ 0.26 | $ 0.29 | $ 0.27 |
Basic (in Shares) | 20,099 | 20,006 | 19,907 |
Diluted (in Shares) | 20,397 | 20,270 | 20,138 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | |||
NET INCOME | $ 5,287 | $ 5,947 | $ 5,383 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Translation adjustments | (237) | (314) | 362 |
TOTAL COMPREHENSIVE INCOME | $ 5,050 | $ 5,633 | $ 5,745 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Share capital | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Treasury shares | Total |
Balance at Dec. 31, 2019 | $ 54 | $ 27,050 | $ (884) | $ (3,080) | $ (1,204) | $ 21,936 |
Balance (in Shares) at Dec. 31, 2019 | 19,896 | |||||
Comprehensive income | 362 | 5,383 | 5,745 | |||
Dividend paid (Note 6c) | (4,775) | (4,775) | ||||
Employees share-based compensation expenses | 213 | 213 | ||||
Exercise of options issued to employees from treasury shares | (61) | 61 | ||||
Exercise of options issued to employees from treasury shares (in Shares) | 90 | |||||
Balance at Dec. 31, 2020 | $ 54 | 27,202 | (522) | (2,472) | (1,143) | 23,119 |
Balance (in Shares) at Dec. 31, 2020 | 19,986 | |||||
Comprehensive income | (314) | 5,947 | 5,633 | |||
Dividend paid (Note 6c) | (5,197) | (5,197) | ||||
Employees share-based compensation expenses | 171 | 171 | ||||
Exercise of options issued to employees from treasury shares | (49) | 49 | ||||
Exercise of options issued to employees from treasury shares (in Shares) | 71 | |||||
Balance at Dec. 31, 2021 | $ 54 | 27,324 | (836) | (1,722) | (1,094) | 23,726 |
Balance (in Shares) at Dec. 31, 2021 | 20,057 | |||||
Comprehensive income | (237) | 5,287 | 5,050 | |||
Dividend paid (Note 6c) | (5,227) | (5,227) | ||||
Employees share-based compensation expenses | 258 | 258 | ||||
Exercise of options issued to employees from treasury shares | (36) | 36 | ||||
Exercise of options issued to employees from treasury shares (in Shares) | 67 | |||||
Balance at Dec. 31, 2022 | $ 54 | $ 27,546 | $ (1,073) | $ (1,662) | $ (1,058) | $ 23,807 |
Balance (in Shares) at Dec. 31, 2022 | 20,124 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid per share | $ 0.26 | $ 0.26 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 5,287 | $ 5,947 | $ 5,383 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 193 | 194 | 200 |
Deferred income taxes, net | 7 | (96) | (128) |
Accrued severance pay | 41 | 83 | 118 |
Unrealized loss (gain) from marketable securities | 34 | 1 | (51) |
Realized loss (gain) on sale of marketable securities, net | 11 | (3) | (25) |
Realized gain on sale of property and equipment | (3) | ||
Employees share-based compensation | 258 | 171 | 213 |
Changes in operating asset and liability items: | |||
Decrease (increase) in trade receivables, net | (666) | 243 | 1,073 |
Decrease (increase) in other current assets | (149) | 117 | 323 |
Decrease (increase) in prepaid expenses | (45) | 149 | (45) |
Increase (decrease) in trade payables | 139 | (363) | (901) |
Increase (decrease) in other current liabilities and accruals | (265) | 399 | 58 |
Change in operation lease liability | (71) | (52) | 78 |
Increase (decrease) in deferred revenues | (216) | 111 | 203 |
Net cash provided by operating activities | 4,558 | 6,898 | 6,499 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales of (investment in) marketable securities, net | (11) | 1,370 | 545 |
Purchase of property and equipment | (130) | (82) | (68) |
Proceeds from sales of property and equipment | 3 | ||
Severance pay funds | (61) | (89) | (126) |
Proceeds from (investment in) short-term bank deposits | 2,031 | (6,891) | (385) |
Net cash provided by (used in) investing activities | 1,829 | (5,689) | (34) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Dividend paid | (5,227) | (5,197) | (4,775) |
Net cash used in financing activities | (5,227) | (5,197) | (4,775) |
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVILENTS | (77) | (90) | 91 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,083 | (4,078) | 1,781 |
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 4,182 | 8,260 | 6,479 |
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR | 5,265 | 4,182 | 8,260 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH ACTIVITIES: | |||
Taxes paid | 413 | 903 | 454 |
Net lease liabilities arising from obtaining right-of-use asset | $ 599 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 (the “Group”), provides 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, through its subsidiaries, also provides enterprise and wholesale messaging. The Company has wholly-owned subsidiaries in the United States (MIND Software Inc.), Romania (MIND Software Srl), United Kingdom (MIND Software Limited) and Germany (MIND CTI GmbH, Message Mobile GmbH (“Message Mobile”) and “GTX Messaging GmbH (“GTX”)). 2) Accounting principles: The consolidated financial statements were prepared in accordance with the 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 for projects that apply the percentage of completion measurement and goodwill impairment. 4) Functional currency: The currency of the primary economic environment in which the operations of the Company and certain subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s and its non-German subsidiaries’ revenues are derived from sales which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and investments are denominated in dollars. Thus, the functional currency of the Company and certain subsidiaries is the dollar. The Company and certain subsidiaries transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. The currency of the primary economic environment in which the operations of the Company’s German subsidiaries, Message Mobile, GTX and MIND CTI GmbH, are conducted is the Euro. Most of the revenues of the German subsidiaries, are denominated primarily in Euros. Thus, the functional currency of such subsidiaries is the Euro. For those subsidiaries, assets and liabilities are translated at year-end exchange rates and statement of operations’ items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. 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 (loss): The purpose of reporting comprehensive income (loss) 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 (the “CODM”) of the Company is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has two reporting segments, see Note 10. e. Cash and 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, cash equivalents, short-term bank deposits, marketable securities, accounts receivable, accounts payable and accruals have carrying amounts which is equal or approximate fair value due to the short-term maturity of these instruments. The measurement of cash and cash equivalents and marketable derivatives are classified within Level 1. 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. These deposits are presented at cost and earn interest at market rates which present the fair value. 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 assets at fair value through profit or loss are 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. 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 BBB- 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. i. Leases: The Company adopted ASC 842, “Leases”. In accordance with ASC 842, the Company first determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception. ASC 842 requires the recognition of right-of-use assets and lease liabilities for the Company’s operating leases. The Company elected to adopt the package of practical expedients permitted under ASC 842. Therefore, the Company was not required to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) the classification of any expired or existing leases; and (iii) initial direct costs for any existing leases. j. Property and equipment: These assets are stated at cost, less accumulated depreciation and amortization. The assets are depreciated by the straight-line method, on basis of their estimated useful life which best reflects the pattern of use. Annual rates of depreciation are as follows: % Computers and electronic equipment 15-33 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. k. Intangible assets: Intangible assets with definite lives are amortized over their estimated useful lives using the straight-line method which best reflects the pattern of use, at the following annual periods ranges: Years Core technology 10.75 Customer relationships 5.75 Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. During the years ended December 31, 2022, 2021 and 2020, no impairment losses have been identified with respect to intangible assets. l. Goodwill: Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under ASC 350, “Intangibles – Goodwill and Others”, goodwill is not amortized but rather tested for impairment at least annually or most often if indicators of impairment are present. Events or changes in circumstances that could trigger an impairment review include macroeconomic and other industry specific factors including, among others, 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 the Company’s use of the acquired assets or the strategy for its 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. Alternatively, the Company may elect to proceed directly to the impairment test and bypass the qualitative assessment. Goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company performed the annual impairment tests as of September 30, 2022, 2021 and 2020 and did not identify any indication for impairment losses (see Note 4b). The impairment test was based on a valuation performed by management. Judgments and assumptions used in the discounted cash flow model which included projected net cash flows from operations, short-term and long-term growth rates, weighted average cost of capital, interest, capital expenditures, cash flows, and market conditions. 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 in respect of the deferred tax assets are provided for if, based upon the weight of available evidence, it is more likely than not that all or a portion of the deferred income tax assets will not be realized. Deferred tax liabilities and assets are classified as non-current. 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 expenses. n. Revenue recognition: The Company generates its revenues from software licensing, sales of professional services including integration and implementation, maintenance services, managed services and mobile messaging services. The Company applies ASC 606, “Revenue from Contracts with Customers”. Under ASC 606, revenue is measured as the amount of consideration the Company expects to be entitled to, in exchange for transferring products or providing services to its customers and is recognized when performance obligations under the terms of contracts with the Company’s customers are satisfied. ASC 606 prescribes a five-step model for recognizing revenue from contracts with customers: (i) identify contract(s) with the customer; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the separate performance obligations in the contract; and (v) recognize revenue when (or as) each performance obligation is satisfied. The Company applies the provisions of ASC 606, as follows: i) Sale of standard licensed products Revenue from perpetual licenses is classified as software license revenue. Software license revenue is recognized as a point in time upon transfer of control to the customer which usually occurs when the licensed product and the utility that enables the customer to access authorization keys is delivered, provided that a signed contract has been received. ii) Services Revenues from ongoing maintenance and support fees are recognized over time on a pro-rated basis over the duration of the contract. Revenues earned from time and material arrangements, usually based on a pre agreed monthly rates, recognized over time, based on the duration of the contract and the service time provided to date. Ongoing work on customizations performed for existing customers is generally provided on a fixed price basis and as such revenue is recognized when the related services are performed. Contracts may include a combination of the Company’s various products and services offerings, software, consulting services, and maintenance. For contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. Significant judgment may be required to identify distinct obligations within a contract. The total transaction price is allocated to the individual performance obligations based on the ratio of the relative established standalone selling prices (SSP), or the Company’s best estimate of SSP, of each distinct product or service in the contract. Revenue is then recognized for each distinct performance obligation. Measuring Progress towards Completion Where a performance obligation is satisfied over time for an upgrade or implementation project that requires significant customer modifications and complex implementation, revenue is recognized over time, as the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right to payment, including a reasonable profit, Managed Services Revenues from managed services include a monthly fee for services and a right to access the Company’s software and are recorded as service revenues. The Company does not provide the customer with the contractual right to take possession of the software at any time during the period under these contracts. The monthly fee is based mainly on the number of subscribers or customer’s business volume and the contracts include a minimum monthly charge. These revenues are recognized over time on a monthly basis when those services are satisfied. iii) Mobile Messaging Transactions Certain of the Company’s subsidiaries provide mobile messaging services, via text messages (SMS) and IP (Internet Protocol) messaging channels. Revenues from mobile messaging services are recognized when the messaging service has been rendered, i.e., the messages are delivered to recipient. The revenue amount is based on the price specified in the contract. 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 of shareholders’ equity, at their cost to the Company, under “Treasury shares.” t. Concentration of credit risks: Most of the cash and cash equivalents and short-term deposits of the Company and its subsidiaries are 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 adopted accounting pronouncements: In November 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-10, ASC Topic 832, “Disclosures by Business Entities about Government Assistance”, which requires annual disclosures that increase the transparency of transactions involving government grants, including (i) information about the nature of the transactions and the related accounting policy used to account for the transactions, (ii) the line items on the balance sheet and statement of operations that are affected by the transactions, and the amounts applicable to each financial statement line item, and (iii) significant terms and conditions of the transactions. The Company applied the guidance prospectively to all in-scope transactions beginning fiscal year 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers”. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. Adopting the new guidance in an interim period other than the first fiscal quarter requires an entity to apply the new guidance to all prior business combinations that have occurred since the beginning of the annual period in which the new guidance was adopted. The Company plans to adopt the new accounting standard effective January 1, 2023 and will apply the guidance prospectively to business combinations with an acquisition date occurring on or after January 2023. The Company has evaluated other recently issued accounting pronouncements and does not currently believe that any of these pronouncements will have a material impact on its consolidated financial statements and related disclosures. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 2 - PROPERTY AND EQUIPMENT, NET a. Composition of assets, grouped by major classification, is as follows: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Computers and electronic equipment $ 2,089 $ 1,977 Office furniture and equipment 158 157 Vehicles 121 87 Leasehold improvements 27 27 2,395 2,248 Less - accumulated depreciation and amortization (2,170 ) (2,073 ) $ 225 $ 175 b. Depreciation expenses totaled $77 thousand, $63 thousand and $77 thousand in the years ended December 31, 2022, 2021 and 2020, respectively. c. Property and equipment, net - by geographical location: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Israel $ 74 $ 62 Romania 70 67 Germany 81 46 Total $ 225 $ 175 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 3 – LEASES The following represents the aggregate right-of-use assets and related lease liabilities from operating lease agreements for certain offices as: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Amounts recognized in the consolidated balance sheet $ 946 $ 1,463 Current liabilities $ 271 $ 376 Long-term liabilities 615 1,098 Total operating leased liabilities $ 886 $ 1,474 In the third quarter of 2022, the Company returned one floor of office space in Romania, which resulted in a decrease of the right-of-use asset and in the lease liability in the amount of approximately $173 thousand. There were no additional changes in the lease terms. The weighted average lease term and weighted average discount rate as of December 31, 2022 were as follows: Weighted average lease term – operating lease 4.28 years Weighted average discount rate – operating lease 6.9 % The future cash flows related to the operating lease liabilities as of December 31, 2022 were as follows: U.S. dollars Years ending December 31: 2023 $ 294 2024 248 2025 146 2026 142 2027 142 Thereafter 38 Total lease payments (undiscounted) 1,010 Less – discount to net present value (124 ) Present value of lease liabilities $ 886 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS a. Definite-lived intangible assets: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Core technology $ 312 $ 312 Customer relationships 545 545 857 857 Less – accumulated amortization (524 ) (348 ) 333 509 Functional currency translation adjustments 41 13 Total intangible assets, net $ 374 $ 522 b. Goodwill Billing and Messaging Total U.S. dollars in thousands Balance as of January 1, 2021 $ 5,430 $ 2,709 $ 8,139 Changes during the year ended December 31, 2021: Functional currency translation adjustments - (210 ) (210 ) Balance as of December 31, 2021 $ 5,430 $ 2,499 $ 7,929 Changes during the year ended December 31, 2022: Functional currency translation adjustments - (144 ) (144 ) Balance as of December 31, 2022 $ 5,430 $ 2,355 $ 7,785 |
Severance Pay
Severance Pay | 12 Months Ended |
Dec. 31, 2022 | |
Severance Pay [Abstract] | |
SEVERANCE PAY | NOTE 5 – SEVERANCE PAY 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 partially 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 Company has entered into an agreement with some of its employees implementing Section 14 of the Israeli Severance Pay Law, 1963 and the general approval of the Minister of Labor dated June 30, 1998, issued in accordance with such Section 14. The agreement mandates that upon termination of such employees’ employment, all the amounts accrued in their severance funds, pension funds and by the insurance policies will be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet, as the severance pay risks have been irrevocably transferred to the severance funds, pension funds and insurance companies. The amounts accrued and the portions funded, with severance pay funds, pension funds and by the insurance policies are reflected in the financial statements as follows: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Accrued severance pay $ 1,930 $ 2,361 Severance pay fund (1,914 ) (2,325 ) Unfunded balance $ 16 $ 36 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. The severance pay expenses were $61 thousand, $89 thousand and $126 thousand in the years ended December 31, 2022, 2021 and 2020, respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 6 - SHAREHOLDERS’ EQUITY a. Share capital: The Company’s ordinary shares are traded in the United States on the Nasdaq Global Market, under the symbol MNDO. Ordinary shares of the Company confer upon their holders the right to receive notice to participate and vote in general meetings of the Company and the right to receive dividends, if and when, declared. b. Treasury shares: During the period between September 2008 and December 2009, the Company has purchased an aggregate number 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, 2022, the remaining treasury shares are 1,535,684 which amounted to $1,058 thousand. The treasury shares are mainly utilized by the Company to settle exercise of options by employees. c. Dividend: Dividends paid per share in the years ended December 31, 2022, 2021 and 2020 were $0.26, $0.26 and $0.24, respectively. The Company paid dividends to its shareholders in the amounts of approximately $5.2 million, $5.2 million and $4.8 million during the years ended December 31, 2022, 2021 and 2020, respectively. d. Stock option plan: In 2011, the Board of Directors and 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 can be granted to employees, directors, consultants or contractors of the Company and its subsidiaries. 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 abovementioned plan vest over 2-4 years on service basis. Options not exercised will expire five years after the day of grant. The compensation costs charged against income for the 2011 Share Incentive Plan were comprised as follows: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Cost of revenues $ 63 $ 49 $ 65 Research and development expenses 159 90 109 Selling and marketing expenses 1 4 9 General and administrative expenses 35 28 30 $ 258 $ 171 $ 213 Under Section 102 of the Israeli Income Tax Ordinance, 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) are subject to a lower tax rate on part of the capital gains accruing to them in respect of Section 102 awards. However, the Company is not allowed to claim as an expense for tax purposes the amounts credited to such employees. 1) The following is a summary of the status of the 2011 Share Incentive Plan as of December 31, 2022, 2021 and 2020, and changes during the years ended on those dates: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Options outstanding at the beginning of year 269,500 $ 0.003 266,500 $ 0.003 352,000 $ 0.23 Changes during year: Granted (a) 304,000 $ 0.003 172,000 $ 0.003 64,000 $ 0.003 Exercised (67,000 ) $ 0.003 (71,500 ) $ 0.003 (89,500 ) $ 0.003 Forfeited (54,000 ) $ 0.003 (96,500 ) $ 0.003 (56,000 ) $ 1.233 Expired - $ 0.003 (1,000 ) $ 0.003 (4,000 ) $ 2.688 Options outstanding at the end of year 452,500 $ 0.003 269,500 $ 0.003 266,500 $ 0.003 Options exercisable at the end of year 25,500 $ 0.003 30,000 $ 0.003 23,000 $ 0.003 Weighted average grant date fair value of options granted during the year (b) $ 1.58 $ 1.79 $ 1.32 (a) In the years ended December 31, 2022 and 2021 and 2020, the options were granted with an exercise price equal to par value of NIS 0.01 ($0.003). (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 2 2 2 0 2 1 2 0 2 0 Dividend yield 9.69 % 8.73 % 10.3 % Expected volatility* 30 % 34 % 22 % Average risk-free interest rate 1.99 % 0.81 % 0.53 % 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, 2022, there were approximately $623 thousand of total unrecognized compensation costs, net of expected forfeitures, related to unvested share-based compensation awards granted under the 2011 Share Incentive Plan. The costs are expected to be recognized over a weighted average period of 1.54 years. 2) The following table summarizes information about options outstanding and exercisable as of December 31, 2022: 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 2022 life price 2022 life price Years Years $ 0.003 452,500 3.7 $ 0.003 25,500 1.45 $ 0.003 The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 were approximately $184 thousand, $235 thousand and $212 thousand, respectively. As of December 31, 2022 the aggregate intrinsic value of the outstanding options is $949 thousand, and the aggregate intrinsic value of the exercisable options is $53 thousand. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 7 - TAXES ON INCOME a. Israeli corporate tax 1) 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 Income Tax (Inflationary Adjustments) Law, 1985. 2) Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”): On February 18, 2018 and on February 16, 2022, the Company received a status of “Technologic Preferred Enterprise” as defined under the Investment Law (the “Approvals”). In accordance with the Approvals, starting in 2017 and until 2026, income originating from granting the right of use as defined in the Approval, will be defined as Technologic Preferred Income, as defined under the Law, and will be subject to a tax rate of 7.5%. The reduced tax rate applies only with respect to the revenue attributable to the portion of intellectual property developed in Israel. The Preferred Technological Income is calculated for each tax year by applying the “Nexus” formula as detailed in the Israeli regulations. Dividend distributed from income which is attributed to a “Technologic Preferred Enterprise” will be subject to withholding tax of 20%, subject to a reduced tax rate under the provisions of an applicable double taxation treaty. b. Other applicable tax rates: 1) Income from other sources in Israel The tax rate relevant to corporates in Israel in the year 2021 and thereafter is 23%. 2) Income of non-Israeli subsidiaries Non-Israeli subsidiaries are taxed according to tax laws in their countries of residence (19% in the U.K, 30% in Germany, 21% in U.S. and 16% in Romania). 3) On October 8, 2021, 136 countries approved a statement known as the OECD BEPS Inclusive Framework, which builds upon the OECD’s continuation of the BEPS project. The first pillar is focused on the allocation of taxing rights between countries for in-scope multinational enterprises that sell goods and services into countries with little or no local physical presence. The second pillar is focused on developing a global minimum tax rate of at least 15 percent applicable to in-scope multinational enterprises. The Company is monitoring the developments closely to ensure that the Company is compliant with the various requirements. c. Deferred income taxes: 1) Provided in respect of the following December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Research and development expenses $ 105 $ 104 Carryforward tax losses, see (2) below 1,388 1,588 Other 10 18 Less - valuation allowance, see (2) below (1,360 ) (1,526 ) $ 143 $ 184 Deferred income tax assets are presented in the balance sheet among non-current assets. Also, as of December 31, 2022 and 2021, the Company has deferred income tax liability in amount of $112 thousand and $157 thousand, respectively which is calculated on temporary difference on intangible assets, which were recorded as a part of Message Mobile’s acquisition. Deferred income tax liability is presented in the balance sheet among long-term liabilities. 2) As of December 31, 2022 and 2021, the Company has provided valuation allowances in respect of certain deferred tax assets in certain subsidiaries resulting from tax losses carryforward due to uncertainty concerning their realization. Taxes on income included in the statements of operations: 1) As follows: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Current: In Israel $ 335 $ 687 $ 420 Outside Israel (12 ) 346 167 323 1,033 587 Deferred: In Israel 1 (18 ) (59 ) Outside Israel 6 (79 ) (69 ) $ 330 $ 936 $ 459 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 b above), and the actual tax expense: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 5,617 $ 6,883 $ 5,842 Theoretical tax expense 1,292 1,583 1,344 Less - tax benefits arising from Technologic Preferred Enterprise status, see a. above (797 ) (739 ) (796 ) 495 844 548 Increase (decrease) in taxes resulting from other differences: Disallowable deductions 20 38 52 Taxes on income from previous years (80 ) 169 - Changes in valuation allowance (119 ) (127 ) (152 ) Other 14 12 11 Taxes on income for the reported years: $ 330 $ 936 $ 459 * As follows: Taxable in Israel $ 5,144 $ 4,936 $ 5,135 Taxable outside Israel 473 1,947 707 $ 5,617 $ 6,883 $ 5,842 d. Tax assessments: As of December 31, 2022, the Company’s tax assessments through the 2017 tax year, are deemed final. |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary Balance Sheet Information [Abstract] | |
SUPPLEMENTARY BALANCE SHEET INFORMATION | NOTE 8 - SUPPLEMENTARY BALANCE SHEET INFORMATION a. Cash and short-term bank deposits: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Cash $ 4,535 $ 4,182 Cash equivalents 730 - Total cash and cash equivalents $ 5,265 $ 4,182 Short-term bank deposits* $ 12,040 $ 14,071 * The average interest rate of short-term deposits is 4.15% and 0.73%, as of December 31, 2022 and 2021, respectively. b. Other current assets: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Government institutions $ 36 $ 55 Employees 31 27 Interest receivable 185 24 Sundry 41 39 $ 293 $ 145 c. Other current liabilities and accruals: December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Payroll and related expenses $ 840 $ 946 Government institutions 277 453 Accrued vacation pay 64 87 Accrued expenses and sundry 797 779 $ 1,978 $ 2,265 |
Selected Statement of Operation
Selected Statement of Operations Data | 12 Months Ended |
Dec. 31, 2022 | |
Selected Statement of Operations Data [Abstract] | |
SELECTED STATEMENT OF OPERATIONS DATA | NOTE 9 - SELECTED STATEMENT OF OPERATIONS DATA a. Revenues: 1) The Company’s revenues derive from sale of software products and services in two operating segments. The Company has three product lines: (i) product line “A” - billing and customer care solutions for service providers; (ii) product line “B” - call accounting and call management solutions for enterprises; and (iii) product line “C” – mobile messaging and communication solutions. Product lines “A” and “B” relate to the billing and related services reporting segment and product line “C” relates to the messaging reporting segment. The following table sets forth the revenues classified by product lines: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Product line “A” $ 11,545 $ 12,069 $ 11,986 Product line “B” 2,343 2,286 2,642 Product line “C” 7,663 11,976 8,746 $ 21,551 $ 26,331 $ 23,374 2) The following table sets forth the geographical revenues classified by geographical location of the customers: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands The Americas $ 8,536 $ 9,421 $ 10,355 Europe 11,382 14,702 11,734 Israel 825 1,366 893 Other 808 842 392 $ 21,551 $ 26,331 $ 23,374 b. Financial income, net: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 262 $ 110 $ 172 Interest on non-current trade receivables 58 - - Non-dollar currency gains, net - - 147 Income from marketable securities - - 83 Realized gain from sale of available-for-sale securities - 3 - 320 113 402 Expenses: Non-dollar currency losses, net (99 ) (8 ) - Interest (60 ) - - Unrealized loss from marketable securities (34 ) (1 ) - Realized loss from sale of marketable securities (11 ) - - Bank commissions and charges (23 ) (49 ) (23 ) (227 ) (58 ) (23 ) $ 93 $ 55 $ 379 c. Earnings per ordinary share (“EPS”): The following table sets forth the computation of the Company’s basic and diluted EPS: Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 In thousands Weighted average number of shares issued and outstanding - used in computation of basic EPS 20,099 20,006 19,907 Incremental shares from assumed exercise of options 298 264 231 Weighted average number of shares used in computation of diluted EPS 20,397 20,270 20,138 |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2022 | |
Reportable Segments [Abstract] | |
REPORTABLE SEGMENTS | NOTE 10 - REPORTABLE SEGMENTS The Company applies ASC 280, “Segment Reporting”. ASC 280 establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. As mentioned in Note 1d, the CODM of the Company is the Chief Executive Officer. The CODM assesses the performance of each segment and allocates resources to those segments based on net revenues and operating results and does not evaluate the Company’s reportable segments using discrete asset information. Year Ended December 31, 2022 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 13,888 $ 7,663 $ 21,551 Operating income $ 5,105 $ 419 $ 5,524 Year Ended December 31, 2021 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 14,355 $ 11,976 $ 26,331 Operating income $ 4,818 $ 2,010 $ 6,828 Year Ended December 31, 2020 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 14,628 $ 8,746 $ 23,374 Operating income $ 4,412 $ 1,051 $ 5,463 Revenues from one customer of the Company’s billing and related services segment represents approximately 12%, 7% and 9% of the total revenues for the years ended December 31, 2022, 2021 and 2020, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 11 - RELATED PARTIES a. Balances As of December 31, 2022 and 2021, the Company had an accrual in the amount of $240 thousand, pursuant to the compensation policy regarding the Chief Executive Officer’s annual bonus. b. Transactions During the years ended December 31, 2022, 2021 and 2020, the Company recorded salary expenses, cash bonus and directors’ fees to its related parties in the amount of $615 thousand, $596 thousand and $596 thousand, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 12 - SUBSEQUENT EVENT On March 8, 2023, the Company declared a cash dividend to its shareholders in the amount of approximately $4.8 million ($0.24 per share). |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 (the “Group”), provides 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, through its subsidiaries, also provides enterprise and wholesale messaging. The Company has wholly-owned subsidiaries in the United States (MIND Software Inc.), Romania (MIND Software Srl), United Kingdom (MIND Software Limited) and Germany (MIND CTI GmbH, Message Mobile GmbH (“Message Mobile”) and “GTX Messaging GmbH (“GTX”)). |
Accounting principles | 2) Accounting principles: The consolidated financial statements were prepared in accordance with the 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 for projects that apply the percentage of completion measurement and goodwill impairment. |
Functional currency | 4) Functional currency: The currency of the primary economic environment in which the operations of the Company and certain subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s and its non-German subsidiaries’ revenues are derived from sales which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and investments are denominated in dollars. Thus, the functional currency of the Company and certain subsidiaries is the dollar. The Company and certain subsidiaries transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. The currency of the primary economic environment in which the operations of the Company’s German subsidiaries, Message Mobile, GTX and MIND CTI GmbH, are conducted is the Euro. Most of the revenues of the German subsidiaries, are denominated primarily in Euros. Thus, the functional currency of such subsidiaries is the Euro. For those subsidiaries, assets and liabilities are translated at year-end exchange rates and statement of operations’ items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Principles of consolidation | b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. 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 (loss) | c. Comprehensive income (loss): The purpose of reporting comprehensive income (loss) 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 (the “CODM”) of the Company is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has two reporting segments, see Note 10. |
Cash equivalents | e. Cash and 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, cash equivalents, short-term bank deposits, marketable securities, accounts receivable, accounts payable and accruals have carrying amounts which is equal or approximate fair value due to the short-term maturity of these instruments. The measurement of cash and cash equivalents and marketable derivatives are classified within Level 1. |
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. These deposits are presented at cost and earn interest at market rates which present the fair value. |
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 assets at fair value through profit or loss are 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. 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 BBB- 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. |
Leases | i. Leases: The Company adopted ASC 842, “Leases”. In accordance with ASC 842, the Company first determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception. ASC 842 requires the recognition of right-of-use assets and lease liabilities for the Company’s operating leases. The Company elected to adopt the package of practical expedients permitted under ASC 842. Therefore, the Company was not required to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) the classification of any expired or existing leases; and (iii) initial direct costs for any existing leases. |
Property and equipment | j. Property and equipment: These assets are stated at cost, less accumulated depreciation and amortization. The assets are depreciated by the straight-line method, on basis of their estimated useful life which best reflects the pattern of use. Annual rates of depreciation are as follows: % Computers and electronic equipment 15-33 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. |
Intangible assets | k. Intangible assets: Intangible assets with definite lives are amortized over their estimated useful lives using the straight-line method which best reflects the pattern of use, at the following annual periods ranges: Years Core technology 10.75 Customer relationships 5.75 Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. During the years ended December 31, 2022, 2021 and 2020, no impairment losses have been identified with respect to intangible assets. |
Goodwill | l. Goodwill: Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under ASC 350, “Intangibles – Goodwill and Others”, goodwill is not amortized but rather tested for impairment at least annually or most often if indicators of impairment are present. Events or changes in circumstances that could trigger an impairment review include macroeconomic and other industry specific factors including, among others, 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 the Company’s use of the acquired assets or the strategy for its 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. Alternatively, the Company may elect to proceed directly to the impairment test and bypass the qualitative assessment. Goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company performed the annual impairment tests as of September 30, 2022, 2021 and 2020 and did not identify any indication for impairment losses (see Note 4b). The impairment test was based on a valuation performed by management. Judgments and assumptions used in the discounted cash flow model which included projected net cash flows from operations, short-term and long-term growth rates, weighted average cost of capital, interest, capital expenditures, cash flows, and market conditions. |
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 in respect of the deferred tax assets are provided for if, based upon the weight of available evidence, it is more likely than not that all or a portion of the deferred income tax assets will not be realized. Deferred tax liabilities and assets are classified as non-current. 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 expenses. |
Revenue recognition | n. Revenue recognition: The Company generates its revenues from software licensing, sales of professional services including integration and implementation, maintenance services, managed services and mobile messaging services. The Company applies ASC 606, “Revenue from Contracts with Customers”. Under ASC 606, revenue is measured as the amount of consideration the Company expects to be entitled to, in exchange for transferring products or providing services to its customers and is recognized when performance obligations under the terms of contracts with the Company’s customers are satisfied. ASC 606 prescribes a five-step model for recognizing revenue from contracts with customers: (i) identify contract(s) with the customer; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the separate performance obligations in the contract; and (v) recognize revenue when (or as) each performance obligation is satisfied. The Company applies the provisions of ASC 606, as follows: i) Sale of standard licensed products Revenue from perpetual licenses is classified as software license revenue. Software license revenue is recognized as a point in time upon transfer of control to the customer which usually occurs when the licensed product and the utility that enables the customer to access authorization keys is delivered, provided that a signed contract has been received. ii) Services Revenues from ongoing maintenance and support fees are recognized over time on a pro-rated basis over the duration of the contract. Revenues earned from time and material arrangements, usually based on a pre agreed monthly rates, recognized over time, based on the duration of the contract and the service time provided to date. Ongoing work on customizations performed for existing customers is generally provided on a fixed price basis and as such revenue is recognized when the related services are performed. Contracts may include a combination of the Company’s various products and services offerings, software, consulting services, and maintenance. For contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. Significant judgment may be required to identify distinct obligations within a contract. The total transaction price is allocated to the individual performance obligations based on the ratio of the relative established standalone selling prices (SSP), or the Company’s best estimate of SSP, of each distinct product or service in the contract. Revenue is then recognized for each distinct performance obligation. Measuring Progress towards Completion Where a performance obligation is satisfied over time for an upgrade or implementation project that requires significant customer modifications and complex implementation, revenue is recognized over time, as the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right to payment, including a reasonable profit, Managed Services Revenues from managed services include a monthly fee for services and a right to access the Company’s software and are recorded as service revenues. The Company does not provide the customer with the contractual right to take possession of the software at any time during the period under these contracts. The monthly fee is based mainly on the number of subscribers or customer’s business volume and the contracts include a minimum monthly charge. These revenues are recognized over time on a monthly basis when those services are satisfied. iii) Mobile Messaging Transactions Certain of the Company’s subsidiaries provide mobile messaging services, via text messages (SMS) and IP (Internet Protocol) messaging channels. Revenues from mobile messaging services are recognized when the messaging service has been rendered, i.e., the messages are delivered to recipient. The revenue amount is based on the price specified in the contract. |
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 of shareholders’ equity, at their cost to the Company, under “Treasury shares.” |
Concentration of credit risks | t. Concentration of credit risks: Most of the cash and cash equivalents and short-term deposits of the Company and its subsidiaries are 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 adopted accounting pronouncements | u. Recently adopted accounting pronouncements: In November 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-10, ASC Topic 832, “Disclosures by Business Entities about Government Assistance”, which requires annual disclosures that increase the transparency of transactions involving government grants, including (i) information about the nature of the transactions and the related accounting policy used to account for the transactions, (ii) the line items on the balance sheet and statement of operations that are affected by the transactions, and the amounts applicable to each financial statement line item, and (iii) significant terms and conditions of the transactions. The Company applied the guidance prospectively to all in-scope transactions beginning fiscal year 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers”. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. Adopting the new guidance in an interim period other than the first fiscal quarter requires an entity to apply the new guidance to all prior business combinations that have occurred since the beginning of the annual period in which the new guidance was adopted. The Company plans to adopt the new accounting standard effective January 1, 2023 and will apply the guidance prospectively to business combinations with an acquisition date occurring on or after January 2023. The Company has evaluated other recently issued accounting pronouncements and does not currently believe that any of these pronouncements will have a material impact on its consolidated financial statements and related disclosures. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of annual rates of depreciation property and equipment | % Computers and electronic equipment 15-33 Office furniture and equipment 6-7 Vehicles 15 |
Schedule of intangible assets amortized over their estimated useful lives | Years Core technology 10.75 Customer relationships 5.75 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Schedule of composition of assets, grouped by major classification | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Computers and electronic equipment $ 2,089 $ 1,977 Office furniture and equipment 158 157 Vehicles 121 87 Leasehold improvements 27 27 2,395 2,248 Less - accumulated depreciation and amortization (2,170 ) (2,073 ) $ 225 $ 175 |
Schedule of property and equipment by geographical location | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Israel $ 74 $ 62 Romania 70 67 Germany 81 46 Total $ 225 $ 175 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of right-of-use assets of lease liabilities | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Amounts recognized in the consolidated balance sheet $ 946 $ 1,463 Current liabilities $ 271 $ 376 Long-term liabilities 615 1,098 Total operating leased liabilities $ 886 $ 1,474 |
Schedule of weighted average lease term and weighted average discount rate | Weighted average lease term – operating lease 4.28 years Weighted average discount rate – operating lease 6.9 % |
Schedule of cash flows related operating lease liabilities | U.S. dollars Years ending December 31: 2023 $ 294 2024 248 2025 146 2026 142 2027 142 Thereafter 38 Total lease payments (undiscounted) 1,010 Less – discount to net present value (124 ) Present value of lease liabilities $ 886 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of definite-lived intangible assets | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Core technology $ 312 $ 312 Customer relationships 545 545 857 857 Less – accumulated amortization (524 ) (348 ) 333 509 Functional currency translation adjustments 41 13 Total intangible assets, net $ 374 $ 522 |
Schedule of goodwill | Billing and Messaging Total U.S. dollars in thousands Balance as of January 1, 2021 $ 5,430 $ 2,709 $ 8,139 Changes during the year ended December 31, 2021: Functional currency translation adjustments - (210 ) (210 ) Balance as of December 31, 2021 $ 5,430 $ 2,499 $ 7,929 Changes during the year ended December 31, 2022: Functional currency translation adjustments - (144 ) (144 ) Balance as of December 31, 2022 $ 5,430 $ 2,355 $ 7,785 |
Severance Pay (Tables)
Severance Pay (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Severance Pay [Abstract] | |
Schedule of amounts accrued and the portions funded, with severance pay funds and by the insurance policies | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Accrued severance pay $ 1,930 $ 2,361 Severance pay fund (1,914 ) (2,325 ) Unfunded balance $ 16 $ 36 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of compensation costs charged against income for the 2011 share incentive plan | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Cost of revenues $ 63 $ 49 $ 65 Research and development expenses 159 90 109 Selling and marketing expenses 1 4 9 General and administrative expenses 35 28 30 $ 258 $ 171 $ 213 |
Schedule of status of the 2011 share incentive plan | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 Number Weighted average exercise price Number Weighted average exercise price Number Weighted average exercise price Options outstanding at the beginning of year 269,500 $ 0.003 266,500 $ 0.003 352,000 $ 0.23 Changes during year: Granted (a) 304,000 $ 0.003 172,000 $ 0.003 64,000 $ 0.003 Exercised (67,000 ) $ 0.003 (71,500 ) $ 0.003 (89,500 ) $ 0.003 Forfeited (54,000 ) $ 0.003 (96,500 ) $ 0.003 (56,000 ) $ 1.233 Expired - $ 0.003 (1,000 ) $ 0.003 (4,000 ) $ 2.688 Options outstanding at the end of year 452,500 $ 0.003 269,500 $ 0.003 266,500 $ 0.003 Options exercisable at the end of year 25,500 $ 0.003 30,000 $ 0.003 23,000 $ 0.003 Weighted average grant date fair value of options granted during the year (b) $ 1.58 $ 1.79 $ 1.32 (a) In the years ended December 31, 2022 and 2021 and 2020, the options were granted with an exercise price equal to par value of NIS 0.01 ($0.003). (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: |
Schedule of stock option granted is computed on the date of grant according to the black-scholes option pricing model | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 Dividend yield 9.69 % 8.73 % 10.3 % Expected volatility* 30 % 34 % 22 % Average risk-free interest rate 1.99 % 0.81 % 0.53 % 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. |
Schedule of 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 2022 life price 2022 life price Years Years $ 0.003 452,500 3.7 $ 0.003 25,500 1.45 $ 0.003 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Research and development expenses $ 105 $ 104 Carryforward tax losses, see (2) below 1,388 1,588 Other 10 18 Less - valuation allowance, see (2) below (1,360 ) (1,526 ) $ 143 $ 184 |
Schedule of taxes on income included in statements of operations | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Current: In Israel $ 335 $ 687 $ 420 Outside Israel (12 ) 346 167 323 1,033 587 Deferred: In Israel 1 (18 ) (59 ) Outside Israel 6 (79 ) (69 ) $ 330 $ 936 $ 459 |
Schedule of reconciliation of theoretical tax expense | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 5,617 $ 6,883 $ 5,842 Theoretical tax expense 1,292 1,583 1,344 Less - tax benefits arising from Technologic Preferred Enterprise status, see a. above (797 ) (739 ) (796 ) 495 844 548 Increase (decrease) in taxes resulting from other differences: Disallowable deductions 20 38 52 Taxes on income from previous years (80 ) 169 - Changes in valuation allowance (119 ) (127 ) (152 ) Other 14 12 11 Taxes on income for the reported years: $ 330 $ 936 $ 459 * As follows: Taxable in Israel $ 5,144 $ 4,936 $ 5,135 Taxable outside Israel 473 1,947 707 $ 5,617 $ 6,883 $ 5,842 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary Balance Sheet Information [Abstract] | |
Schedule of cash and short term bank deposits | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Cash $ 4,535 $ 4,182 Cash equivalents 730 - Total cash and cash equivalents $ 5,265 $ 4,182 Short-term bank deposits* $ 12,040 $ 14,071 * The average interest rate of short-term deposits is 4.15% and 0.73%, as of December 31, 2022 and 2021, respectively. |
Schedule of other current assets | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Government institutions $ 36 $ 55 Employees 31 27 Interest receivable 185 24 Sundry 41 39 $ 293 $ 145 |
Schedule of other current liabilities and accruals | December 31, 2 0 2 2 2 0 2 1 U.S. dollars in thousands Payroll and related expenses $ 840 $ 946 Government institutions 277 453 Accrued vacation pay 64 87 Accrued expenses and sundry 797 779 $ 1,978 $ 2,265 |
Selected Statement of Operati_2
Selected Statement of Operations Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Selected Statement of Operations Data [Abstract] | |
Schedule of revenues classified by product lines | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Product line “A” $ 11,545 $ 12,069 $ 11,986 Product line “B” 2,343 2,286 2,642 Product line “C” 7,663 11,976 8,746 $ 21,551 $ 26,331 $ 23,374 |
Schedule of geographical revenues classified by geographical location of the customers | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands The Americas $ 8,536 $ 9,421 $ 10,355 Europe 11,382 14,702 11,734 Israel 825 1,366 893 Other 808 842 392 $ 21,551 $ 26,331 $ 23,374 |
Schedule of financial income, net | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 262 $ 110 $ 172 Interest on non-current trade receivables 58 - - Non-dollar currency gains, net - - 147 Income from marketable securities - - 83 Realized gain from sale of available-for-sale securities - 3 - 320 113 402 Expenses: Non-dollar currency losses, net (99 ) (8 ) - Interest (60 ) - - Unrealized loss from marketable securities (34 ) (1 ) - Realized loss from sale of marketable securities (11 ) - - Bank commissions and charges (23 ) (49 ) (23 ) (227 ) (58 ) (23 ) $ 93 $ 55 $ 379 |
Schedule of earnings per ordinary share EPS | Years Ended December 31, 2 0 2 2 2 0 2 1 2 0 2 0 In thousands Weighted average number of shares issued and outstanding - used in computation of basic EPS 20,099 20,006 19,907 Incremental shares from assumed exercise of options 298 264 231 Weighted average number of shares used in computation of diluted EPS 20,397 20,270 20,138 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reportable Segments [Abstract] | |
Schedule of reportable segments using discrete asset information | Year Ended December 31, 2022 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 13,888 $ 7,663 $ 21,551 Operating income $ 5,105 $ 419 $ 5,524 Year Ended December 31, 2021 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 14,355 $ 11,976 $ 26,331 Operating income $ 4,818 $ 2,010 $ 6,828 Year Ended December 31, 2020 Billing and Related Services Messaging Total U.S. dollars in thousands Revenues $ 14,628 $ 8,746 $ 23,374 Operating income $ 4,412 $ 1,051 $ 5,463 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Tax benefit, percentage | 50% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Computers and electronic equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment [Line Items] | |
Property, plant and equipment, depreciation percentage | 15% |
Computers and electronic equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment [Line Items] | |
Property, plant and equipment, depreciation percentage | 33% |
Office furniture and equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment [Line Items] | |
Property, plant and equipment, depreciation percentage | 6% |
Office furniture and equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment [Line Items] | |
Property, plant and equipment, depreciation percentage | 7% |
Vehicles [Member] | |
Significant Accounting Policies (Details) - Schedule of annual rates of depreciation property and equipment [Line Items] | |
Property, plant and equipment, depreciation percentage | 15% |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of intangible assets amortized over their estimated useful lives | 12 Months Ended |
Dec. 31, 2022 | |
Core technology [Member] | |
Significant Accounting Policies (Details) - Schedule of intangible assets amortized over their estimated useful lives [Line Items] | |
Intangible assets amortized over their estimated useful lives | 10 years 9 months |
Customer relationships [Member] | |
Significant Accounting Policies (Details) - Schedule of intangible assets amortized over their estimated useful lives [Line Items] | |
Intangible assets amortized over their estimated useful lives | 5 years 9 months |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 77 | $ 63 | $ 77 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of composition of assets, grouped by major classification - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,395 | $ 2,248 |
Less - accumulated depreciation and amortization | (2,170) | (2,073) |
Property and equipment, net | 225 | 175 |
Computers and electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,089 | 1,977 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 158 | 157 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 121 | 87 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 27 | $ 27 |
Property and Equipment, Net (_3
Property and Equipment, Net (Details) - Schedule of property and equipment by geographical location - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property and Equipment, Net (Details) - Schedule of property and equipment by geographical location [Line Items] | ||
Property, Plant and Equipment, Net | $ 225 | $ 175 |
Israel [Member] | ||
Property and Equipment, Net (Details) - Schedule of property and equipment by geographical location [Line Items] | ||
Property, Plant and Equipment, Net | 74 | 62 |
Romania [Member] | ||
Property and Equipment, Net (Details) - Schedule of property and equipment by geographical location [Line Items] | ||
Property, Plant and Equipment, Net | 70 | 67 |
Germany [Member] | ||
Property and Equipment, Net (Details) - Schedule of property and equipment by geographical location [Line Items] | ||
Property, Plant and Equipment, Net | $ 81 | $ 46 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Right-of-use asset | $ 173 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of right-of-use assets of lease liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Right Of Use Assets Of Lease Liabilities Abstract | ||
Amounts recognized in the consolidated balance sheet – right-of-use assets, net | $ 946 | $ 1,463 |
Current liabilities | 271 | 376 |
Long-term liabilities | 615 | 1,098 |
Total operating leased liabilities | $ 886 | $ 1,474 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average lease term and weighted average discount rate | Dec. 31, 2022 |
Schedule Of Weighted Average Lease Term And Weighted Average Discount Rate Abstract | |
Weighted average lease term – operating lease | 4 years 3 months 10 days |
Weighted average discount rate – operating lease | 6.90% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of cash flows related operating lease liabilities $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Schedule Of Cash Flows Related Operating Lease Liabilities Abstract | |
2023 | $ 294 |
2024 | 248 |
2025 | 146 |
2026 | 142 |
2027 | 142 |
Thereafter | 38 |
Total lease payments (undiscounted) | 1,010 |
Less – discount to net present value | (124) |
Present value of lease liabilities | $ 886 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - Schedule of definite-lived intangible assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Other Intangible Assets (Details) - Schedule of definite-lived intangible assets [Line Items] | ||
Other intangible assets, gross | $ 857 | $ 857 |
Less – accumulated amortization | (524) | (348) |
Total Intangible assets | 333 | 509 |
Functional currency translation adjustments | 41 | 13 |
Total intangible assets, net | 374 | 522 |
Core technology [Member] | ||
Goodwill and Other Intangible Assets (Details) - Schedule of definite-lived intangible assets [Line Items] | ||
Other intangible assets, gross | 312 | 312 |
Customer relationships [Member] | ||
Goodwill and Other Intangible Assets (Details) - Schedule of definite-lived intangible assets [Line Items] | ||
Other intangible assets, gross | $ 545 | $ 545 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details) - Schedule of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance at beginning | $ 7,929 | $ 8,139 |
Changes during the year ended December 31, 2021: | ||
Functional currency translation adjustments | (144) | (210) |
Balance at ending | 7,785 | 7,929 |
Billing and related services [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 5,430 | 5,430 |
Changes during the year ended December 31, 2021: | ||
Functional currency translation adjustments | ||
Balance at ending | 5,430 | 5,430 |
Messaging [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 2,499 | 2,709 |
Changes during the year ended December 31, 2021: | ||
Functional currency translation adjustments | (144) | (210) |
Balance at ending | $ 2,355 | $ 2,499 |
Severance Pay (Details)
Severance Pay (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Severance [Member] | |||
Severance Pay (Details) [Line Items] | |||
Severance pay expenses | $ 61 | $ 89 | $ 126 |
Severance Pay (Details) - Sched
Severance Pay (Details) - Schedule of amounts accrued and the portions funded, with severance pay funds and by the insurance policies - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Amounts Accrued And The Portions Funded With Severance Pay Funds And By The Insurance Policies Abstract | ||
Accrued severance pay | $ 1,930 | $ 2,361 |
Severance pay fund | (1,914) | (2,325) |
Unfunded balance | $ 16 | $ 36 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2009 USD ($) shares | Sep. 30, 2008 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2011 ₪ / shares shares | |
Shareholders' Equity (Details) [Line Items] | ||||||
Purchased an aggregate amount of ordinary shares (in Shares) | shares | 3,165,092 | 3,165,092 | ||||
Total consideration | $ 2,800 | $ 2,800 | ||||
Treasury shares (in Shares) | shares | 1,535,684 | 1,602,684 | ||||
Treasury value | $ 1,058 | $ 1,094 | ||||
Dividends paid per share (in Dollars per share) | $ / shares | $ 0.26 | $ 0.26 | $ 0.24 | |||
Paid dividends to shareholders | $ 5,200 | $ 5,200 | $ 4,800 | |||
Options granted exercise price of ordinary shares term | 5 years | |||||
Total unrecognized compensation costs | $ 623 | |||||
Total compensation cost not yet recognized, weighted average period for recognition | 1 year 6 months 14 days | |||||
Total intrinsic value of options exercised | $ 184 | $ 235 | $ 212 | |||
Aggregate intrinsic value of the outstanding options | 949 | |||||
Aggregate intrinsic value of the exercisable options | $ 53 | |||||
2011 Share Incentive Plan [Member] | ||||||
Shareholders' Equity (Details) [Line Items] | ||||||
Options granted exercise price of ordinary shares, description | In the years ended December 31, 2022 and 2021 and 2020, the options were granted with an exercise price equal to par value of NIS 0.01 ($0.003). | |||||
Minimum [Member] | ||||||
Shareholders' Equity (Details) [Line Items] | ||||||
Outstanding options granted, vesting period | 2 years | |||||
Maximum [Member] | ||||||
Shareholders' Equity (Details) [Line Items] | ||||||
Outstanding options granted, vesting period | 4 years | |||||
Israel, New Shekels [Member] | 2011 Share Incentive Plan [Member] | ||||||
Shareholders' Equity (Details) [Line Items] | ||||||
Options for ordinary shares (in Shares) | shares | 1,800,000 | |||||
Par value granted to employees (in New Shekels per share) | ₪ / shares | ₪ 0.01 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of compensation costs charged against income for the 2011 share incentive plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Compensation Costs Charged Against Income For The2011 Share Incentive Plan Abstract | |||
Cost of revenues | $ 63 | $ 49 | $ 65 |
Research and development expenses | 159 | 90 | 109 |
Selling and marketing expenses | 1 | 4 | 9 |
General and administrative expenses | 35 | 28 | 30 |
Total | $ 258 | $ 171 | $ 213 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of status of the 2011 share incentive plan - Common Stock [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Shareholders' Equity (Details) - Schedule of status of the 2011 share incentive plan [Line Items] | ||||
Number, options outstanding at the beginning of year (in Shares) | 269,500 | 266,500 | 352,000 | |
Weighted average exercise price, options outstanding at the beginning of year | $ 0.003 | $ 0.003 | $ 0.23 | |
Number, granted (in Shares) | [1] | 304,000 | 172,000 | 64,000 |
Weighted average exercise price, granted | [1] | $ 0.003 | $ 0.003 | $ 0.003 |
Number of options, exercised (in Shares) | (67,000) | (71,500) | (89,500) | |
Weighted average exercise price, exercised | $ 0.003 | $ 0.003 | $ 0.003 | |
Number, forfeited (in Shares) | (54,000) | (96,500) | (56,000) | |
Weighted average exercise price, forfeited | $ 0.003 | $ 0.003 | $ 1.233 | |
Number, expired (in Shares) | (1,000) | (4,000) | ||
Weighted average exercise price, expired | $ 0.003 | $ 0.003 | $ 2.688 | |
Number, outstanding at end of year (in Shares) | 452,500 | 269,500 | 266,500 | |
Weighted average exercise price, exercisable at end of year | $ 0.003 | $ 0.003 | $ 0.003 | |
Number, exercisable at end of year (in Shares) | 25,500 | 30,000 | 23,000 | |
Weighted average exercise price, exercisable at end of year | $ 0.003 | $ 0.003 | $ 0.003 | |
Weighted average grant date fair value of options granted during the year | [2] | $ 1.58 | $ 1.79 | $ 1.32 |
[1]In the years ended December 31, 2022 and 2021 and 2020, the options were granted with an exercise price equal to par value of NIS 0.01 ($0.003).[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_3
Shareholders' Equity (Details) - Schedule of stock option granted is computed on the date of grant according to the black-scholes option pricing model | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Stock Option Granted Is Computed On The Date Of Grant According To The Black Scholes Option Pricing Model Abstract | ||||
Dividend yield | 9.69% | 8.73% | 10.30% | |
Expected volatility | [1] | 30% | 34% | 22% |
Average risk-free interest rate | 1.99% | 0.81% | 0.53% | |
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_4
Shareholders' Equity (Details) - Schedule of information about options outstanding and exercisable - 0.003 [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices | $ 0.003 |
Options Outstanding, Number outstanding (in Shares) | shares | 452,500 |
Options Outstanding, Weighted average remaining contractual life | 3 years 8 months 12 days |
Options Outstanding, Weighted average exercise price | $ 0.003 |
Options Exercisable, Number exercisable (in Shares) | shares | 25,500 |
Options Exercisable, Weighted average remaining contractual life | 1 year 5 months 12 days |
Options Exercisable, Weighted average exercise price | $ 0.003 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 08, 2021 | Feb. 18, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 7.50% | |||
Withholding tax rate, percentage | 20% | |||
Tax rate, percentage | 15% | |||
Deferred income tax liability (in Dollars) | $ 112 | $ 157 | ||
Non-Israeli subsidiaries [Member] | U.K [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 19% | |||
Non-Israeli subsidiaries [Member] | Germany [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 30% | |||
Non-Israeli subsidiaries [Member] | U.S [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 21% | |||
Non-Israeli subsidiaries [Member] | Romania [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 16% | |||
Israel [Member] | ||||
Taxes on Income (Details) [Line Items] | ||||
Tax rate, percentage | 23% |
Taxes on Income (Details) - Sch
Taxes on Income (Details) - Schedule of deferred income taxes - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Deferred Income Taxes Abstract | ||
Research and development expenses | $ 105 | $ 104 |
Carryforward tax losses, see (2) below | 1,388 | 1,588 |
Other | 10 | 18 |
Less - valuation allowance, see (2) below | (1,360) | (1,526) |
Deferred income taxes | $ 143 | $ 184 |
Taxes on Income (Details) - S_2
Taxes on Income (Details) - Schedule of taxes on income included in statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Current income tax expense benefit | $ 323 | $ 1,033 | $ 587 |
Deferred: | |||
Deferred income tax expense benefit | 330 | 936 | 459 |
In Israel [Member] | |||
Current: | |||
Current income tax expense benefit | 335 | 687 | 420 |
Deferred: | |||
Deferred income tax expense benefit | 1 | (18) | (59) |
Outside Israel [Member] | |||
Current: | |||
Current income tax expense benefit | (12) | 346 | 167 |
Deferred: | |||
Deferred income tax expense benefit | $ 6 | $ (79) | $ (69) |
Taxes on Income (Details) - S_3
Taxes on Income (Details) - Schedule of reconciliation of theoretical tax expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Reconciliation Of Theoretical Tax Expense Abstract | |||
Income before taxes on income, as reported in the statements of operations | $ 5,617 | $ 6,883 | $ 5,842 |
Theoretical tax expense | 1,292 | 1,583 | 1,344 |
Less - tax benefits arising from Technologic Preferred Enterprise status, see a. above | (797) | (739) | (796) |
Theoretical tax expense net of tax benefits | 495 | 844 | 548 |
Increase (decrease) in taxes resulting from other differences: | |||
Disallowable deductions | 20 | 38 | 52 |
Taxes on income from previous years | (80) | 169 | |
Changes in valuation allowance | (119) | (127) | (152) |
Other | 14 | 12 | 11 |
Taxes on income for the reported years: | 330 | 936 | 459 |
* As follows: | |||
Taxable in Israel | 5,144 | 4,936 | 5,135 |
Taxable outside Israel | 473 | 1,947 | 707 |
Total | $ 5,617 | $ 6,883 | $ 5,842 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Selected Statement of Operations Data [Abstract] | ||
Average interest rate of short-term deposit | 4.15% | 0.73% |
Supplementary Balance Sheet I_4
Supplementary Balance Sheet Information (Details) - Schedule of cash and short term bank deposits - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Cash And Short Term Bank Deposits Abstract | |||
Cash | $ 4,535 | $ 4,182 | |
Cash equivalents | 730 | ||
Total cash and cash equivalents | 5,265 | 4,182 | |
Short-term bank deposits | [1] | $ 12,040 | $ 14,071 |
[1]The average interest rate of short-term deposits is 4.15% and 0.73%, as of December 31, 2022 and 2021, respectively. |
Supplementary Balance Sheet I_5
Supplementary Balance Sheet Information (Details) - Schedule of other current assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Supplementary Balance Sheet Information (Details) - Schedule of other current assets [Line Items] | ||
Other current assets | $ 293 | $ 145 |
Government institutions [Member] | ||
Supplementary Balance Sheet Information (Details) - Schedule of other current assets [Line Items] | ||
Other current assets | 36 | 55 |
Employees [Member] | ||
Supplementary Balance Sheet Information (Details) - Schedule of other current assets [Line Items] | ||
Other current assets | 31 | 27 |
Interest Receivable [Member] | ||
Supplementary Balance Sheet Information (Details) - Schedule of other current assets [Line Items] | ||
Other current assets | 185 | 24 |
Sundry [Member] | ||
Supplementary Balance Sheet Information (Details) - Schedule of other current assets [Line Items] | ||
Other current assets | $ 41 | $ 39 |
Supplementary Balance Sheet I_6
Supplementary Balance Sheet Information (Details) - Schedule of other current liabilities and accruals - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Other Current Liabilities and Accruals [Abstract] | ||
Payroll and related expenses | $ 840 | $ 946 |
Government institutions | 277 | 453 |
Accrued vacation pay | 64 | 87 |
Accrued expenses and sundry | 797 | 779 |
Other current liabilities and accruals | $ 1,978 | $ 2,265 |
Selected Statement of Operati_3
Selected Statement of Operations Data (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Selected Statement of Operations Data [Abstract] | |
Operating segments | 2 |
Selected Statement of Operati_4
Selected Statement of Operations Data (Details) - Schedule of revenues classified by product lines - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | |||
Revenues | $ 21,551 | $ 26,331 | $ 23,374 |
Product line “A” [Member] | |||
Product Information [Line Items] | |||
Revenues | 11,545 | 12,069 | 11,986 |
Product line “B” [Member] | |||
Product Information [Line Items] | |||
Revenues | 2,343 | 2,286 | 2,642 |
Product line "C" [Member] | |||
Product Information [Line Items] | |||
Revenues | $ 7,663 | $ 11,976 | $ 8,746 |
Selected Statement of Operati_5
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers [Line Items] | |||
Revenues | $ 21,551 | $ 26,331 | $ 23,374 |
The Americas [Member] | |||
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers [Line Items] | |||
Revenues | 8,536 | 9,421 | 10,355 |
Europe [Member] | |||
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers [Line Items] | |||
Revenues | 11,382 | 14,702 | 11,734 |
Israel [Member] | |||
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers [Line Items] | |||
Revenues | 825 | 1,366 | 893 |
Other [Member] | |||
Selected Statement of Operations Data (Details) - Schedule of geographical revenues classified by geographical location of the customers [Line Items] | |||
Revenues | $ 808 | $ 842 | $ 392 |
Selected Statement of Operati_6
Selected Statement of Operations Data (Details) - Schedule of financial income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income: | |||
Interest on bank deposits and short-term investments | $ 262 | $ 110 | $ 172 |
Interest on non-current trade receivables | 58 | ||
Non-dollar currency gains, net | 147 | ||
Income from marketable securities | 83 | ||
Realized gain from sale of available-for-sale securities | 3 | ||
Other Nonoperating Income | 320 | 113 | 402 |
Expenses: | |||
Non-dollar currency losses, net | (99) | (8) | |
Interest | (60) | ||
Unrealized loss from marketable securities | (34) | (1) | |
Realized loss from sale of marketable securities | (11) | ||
Bank commissions and charges | (23) | (49) | (23) |
Other Nonoperating Expense | (227) | (58) | (23) |
Financial income (expense) - net | $ 93 | $ 55 | $ 379 |
Selected Statement of Operati_7
Selected Statement of Operations Data (Details) - Schedule of earnings per ordinary share EPS - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Earnings Per Ordinary Share Eps Abstract | |||
Weighted average number of shares issued and outstanding - used in computation of basic EPS | 20,099 | 20,006 | 19,907 |
Incremental shares from assumed exercise of options | 298 | 264 | 231 |
Weighted average number of shares used in computation of diluted EPS | 20,397 | 20,270 | 20,138 |
Reportable Segments (Details)
Reportable Segments (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reconciliation [Abstract] | |||
Number of customers | 1 | ||
Total revenues percentage | 12% | 7% | 9% |
Reportable Segments (Details) -
Reportable Segments (Details) - Schedule of reportable segments using discrete asset information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reportable Segments (Details) - Schedule of reportable segments using discrete asset information [Line Items] | |||
Revenues | $ 21,551 | $ 26,331 | $ 23,374 |
Operating income | 5,524 | 6,828 | 5,463 |
Billing and Related Services [Member] | |||
Reportable Segments (Details) - Schedule of reportable segments using discrete asset information [Line Items] | |||
Revenues | 13,888 | 14,355 | 14,628 |
Operating income | 5,105 | 4,818 | 4,412 |
Messaging [Member] | |||
Reportable Segments (Details) - Schedule of reportable segments using discrete asset information [Line Items] | |||
Revenues | 7,663 | 11,976 | 8,746 |
Operating income | $ 419 | $ 2,010 | $ 1,051 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Accrual amount | $ 240 | $ 240 | |
Salary expenses, cash bonus and directors' fee to its related parties in the amount | $ 615 | $ 596 | $ 596 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Mar. 08, 2023 USD ($) $ / shares |
Subsequent Event (Details) [Line Items] | |
Declared dividend to its shareholders | $ | $ 4.8 |
Dividend per share | $ / shares | $ 0.24 |