SuperCom (SPCB) 20-F 16 May 16 2015 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2015shares
Document and Entity Information [Abstract]
Document Type	20-F
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Registrant Name	SuperCom Ltd
Entity Central Index Key	1,291,855
Trading Symbol	SPCB
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-Known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	15,493,615

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 22,246	$ 4,789
Restricted bank deposit	3,274	5,195
Trade accounts receivable, net of allowance for doubtful accounts of $1,576 and $4,390 as of December 31,2015 and 2014, respectively (Note 14)	15,122	11,628
Deferred tax short term	2,639	3,958
Other accounts receivable and prepaid expenses (Note 3)	1,199	1,190
Inventories, net (Note 4)	3,602	1,614
TOTAL CURRENT ASSETS	48,082	28,374
LONG-TERM ASSETS
Severance pay funds (Note 2.j)	216	325
Deferred tax long term	1,433	301
Property and equipment, net (Note 6)	888	616
Customer Contracts	4,052	4,587
Software and other IP	4,595	$ 4,949
Other Intangible assets (Note 7)	1,988
Goodwill	4,688	$ 3,722
TOTAL ASSETS	65,942	42,874
CURRENT LIABILITIES
Trade accounts payable	3,705	2,892
Employees and payroll accruals	1,488	944
Related parties	77	341
Accrued expenses and other liabilities (Note 8)	$ 2,917	2,755
Advances from customers		2,864
Short-term liability for future earn-out	$ 2,051	2,870
TOTAL CURRENT LIABILITIES	10,238	12,666
LONG-TERM LIABILITIES
Long-term liability for future earn-out	931	1,477
Accrued severance pay	341	425
TOTAL LONG TERM LIABILITIES	1,272	1,902
TOTAL LIABILITIES	11,510	14,568
SHAREHOLDERS' EQUITY (Note 11)
Ordinary shares, NIS 0.25 par value - authorized 18,000,000 shares, 15,493,615 shares issued and outstanding at December 31, 2015 and 13,742,585 shares issued and outstanding at December 31, 2014	1,053	937
Additional paid-in capital	83,201	58,210
Accumulated deficit	(29,822)	(30,841)
Total shareholders' equity	54,432	28,306
Total liabilities and shareholders' equity	$ 65,942	$ 42,874

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares
CONSOLIDATED BALANCE SHEETS [Abstract]
Trade receivables, allowance for doubtful accounts | $	$ 1,576	$ 4,390
Ordinary shares, shares authorized	18,000,000	18,000,000
Ordinary shares, shares issued	15,493,615	13,742,585
Ordinary shares, shares outstanding	15,493,615	13,742,585

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
REVENUES	$ 28,340	$ 29,703	$ 8,822
COST OF REVENUES	10,446	7,301	1,896
GROSS PROFIT	17,894	22,402	6,926
OPERATING EXPENSES:
Research and development	3,669	3,359	564
Sales and marketing	6,611	7,036	3,158
General and administrative	3,947	2,773	1,183
Other expenses	2,174	1,225	507
Total operating expenses	16,401	14,393	5,412
OPERATING INCOME	1,493	8,009	1,514
Financial expenses, net	(277)	(133)	(156)
INCOME BEFORE INCOME TAXES	1,216	7,876	1,358
Income tax benefit (expense)	(197)	(1,675)	5,108
NET INCOME FOR THE YEAR	$ 1,019	$ 6,201	$ 6,466
Net income per share:
Basic	$ 0.07	$ 0.46	$ 0.71
Diluted	$ 0.07	$ 0.45	$ 0.70
Shares used in calculation of net income per share:
Basic (in shares)	15,047,496	13,560,490	9,107,130
Diluted (in shares)	15,202,303	13,662,151	9,194,865

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	Total	Ordinary Shares [Member]	Additional Paid-in Capital [Member]	Amount of liability extinguished on account of shares [Member]	Accumulated deficit [Member]
Balance at Dec. 31, 2012	$ 711	$ 574	$ 43,518	$ 127	$ (43,508)
Balance (in shares) at Dec. 31, 2012		8,651,703
Exercise of options and warrants	$ 140	$ 11	129
Exercise of options and warrants (in shares)		155,141
Shares, warrants issued in connection with extinguishments of liabilities (see Note 11d)		$ 72	55	$ (127)
Shares, warrants issued in connection with extinguishments of liabilities (see Note 11d) (in shares)		1,027,300
Issuance of share capital, net of issuance costs	$ 12,043	$ 247	11,796
Issuance of share capital, net of issuance costs (in shares)	3,450,000	3,450,000
Stock based compensation	$ 32		$ 32
Net income for the year	6,466				$ 6,466
Balance at Dec. 31, 2013	19,392	$ 904	$ 55,530		$ (37,042)
Balance (in shares) at Dec. 31, 2013		13,284,144
Exercise of options and warrants	82	$ 7	75
Exercise of options and warrants (in shares)		100,441
Issuance of share capital, net of issuance costs	$ 2,458	$ 26	2,432
Issuance of share capital, net of issuance costs (in shares)	358,000	358,000
Stock based compensation	$ 173		$ 173
Net income for the year	6,201				$ 6,201
Balance at Dec. 31, 2014	28,306	$ 937	$ 58,210		$ (30,841)
Balance (in shares) at Dec. 31, 2014		13,742,585
Exercise of options and warrants	193	$ 7	186
Exercise of options and warrants (in shares)		110,966
Issuance of share capital, net of issuance costs	27,126	$ 159	26,967
Issuance of share capital, net of issuance costs (in shares)		2,415,000
Treasury shares acquired	(3,741)	$ (50)	(3,691)
Treasury shares acquired (in shares)		(774,936)
Issuance of warrants	503		503
Stock based compensation	1,026		$ 1,026
Net income for the year	1,019				$ 1,019
Balance at Dec. 31, 2015	$ 54,432	$ 1,053	$ 83,201		$ (29,822)
Balance (in shares) at Dec. 31, 2015		15,493,615

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
CASH FLOWS - OPERATING ACTIVITIES
Net income for the year	$ 1,019	$ 6,201		$ 6,466
Adjustments to reconcile net income to net cash from operations:
Depreciation and amortization	1,673	1,615		48
Stock-based compensation	1,529	173		32
Deferred tax	$ 187	1,854		$ (5,080)
Capital loss on disposal of property and equipment		1
Increase in trade receivables, net	$ (3,666)	(8,532)		$ (1,498)
Decrease (increase) in other accounts receivable and prepaid expenses	39	2,175		(2,779)
Increase in inventories, net	(1,988)	(907)		(84)
Increase (decrease) in trade payables	721	1,203		(142)
Increase in employees and payroll accruals	404	525		257
Increase (decrease) in accrued severance pay	(110)	26		$ 163
Increase (decrease) in advances from customer	(2,864)	2,864
Increase (decrease ) in accrued expenses and other liabilities, related parties and liability for earn-out	(618)	(927)		$ 2,050
Net cash provided by (used in) operating activities	(3,674)	6,271		(567)
CASH FLOWS - INVESTING ACTIVITIES
Purchase of property and equipment	(541)	$ (544)		$ (103)
Capitalization of software development costs	(2,099)
Acquisition of a business entity	(988)			$ (8,788)
Decrease (Increase) in severance pay fund	109	$ (31)		(91)
Restricted bank deposits, net	1,921	(5,110)		(85)
Net cash used in investing activities	$ (1,598)	(5,685)		(9,067)
CASH FLOWS - FINANCING ACTIVITIES
Short-term bank credit, net		$ (1)		$ (101)
Treasury shares acquired	$ (3,741)
Proceeds from issuance of share capital, net of issuance costs	27,126	$ 2,458		$ 12,043
Payment of liability for future earn-out in business combination	(849)	(1,009)	[1]
Proceeds from exercise of options and warrants, net	193	82		$ 140
Net cash provided by financing activities	22,729	1,530		12,082
Increase in cash and cash equivalents	17,457	2,116		2,448
Cash and cash equivalents - beginning of year	4,789	2,673		225
Cash and cash equivalents - end of year	$ 22,246	$ 4,789		$ 2,673
[1]	Reclassified from investing activities

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2015
GENERAL [Abstract]
GENERAL	NOTE 1: GENERAL a. SuperCom Ltd. (the “Company") is an Israeli resident company organized in 1988 in Israel. On January 24, 2013 the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, the Company's ordinary shares were approved for listing on the NASDAQ Capital Market and began trading under the ticker symbol “SPCB” on September 17, 2013. Previously, the Company's ordinary shares traded on the OTCQB® electronic quotation service. The Company is a global provider of traditional and digital identity solutions, providing advanced safety, identification, tracking and security products to governments and organizations,both private and public, throughout the world The Company provides cutting edge real-time positioning, tracking, monitoring and verification solutions enabled by its RFID &Mobile pure security advanced solutions suite of products and technologies, all connected to a web-based, secure, proprietary, interactive and user-friendly interface. The Company offers a wide range of solutions including, national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management using the common platform ("MAGNA"). The Company sells its products through marketing offices in the U.S, Tanzania, Panama, Ecuador and Israel. b. On December 26, 2013 the Company acquired the SmartID Division of On Track Innovations Ltd. (NASDAQ: OTIV) (“OTI”), consisting of customer contracts, software, other related technologies and IP assets. The Company paid OTI $ 8.8 10 12.5 In June 2015 the Company has completed an offering which included an issuance of 2,415,000 27,126 As of December 31, 2015, the Company's principal activities were conducted mainly through SuperCom Ltd. and Supercom Inc. and through SuperCom Tanzania and SuperCom Ecuador that were acquired in December 2013 as part of the acquisition of the SmartID division. c. Concentration of risk that may have a significant impact on the Company: In year 2015, the Company derived most of its revenues from five major customers (2014 four major customers). Throughout the 2013 period the Company derived most of its revenues from one major customer. See also Note 13c. The Company purchases certain services and products used by it to generate revenues in its projects and sales from several sole suppliers. Although there are only a limited number of manufacturers of those particular services and products, management believe that other suppliers could provide similar services and products on comparable terms without affecting operating results.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). a. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to allowance for doubtful accounts and contingencies. b. Financial statements in U.S. dollars: Most of the revenues of the Company and its subsidiaries are received in U.S. dollars. In addition, a substantial portion of the costs of the Company and its subsidiaries are incurred in U.S. dollars. Therefore, management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. Monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing at the end of the reporting period in accordance with provisions of ASC 835-10. All transaction gains and losses from the re-measurement of monetary balance sheet items are reflected in the statements of operations as financial income or financial expenses as appropriate. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Material intercompany transactions and balances were eliminated upon consolidation. Material profits from intercompany sales, not yet realized outside the group, were also eliminated. d. Cash and cash equivalents: The Company considers unrestricted short-term highly liquid investments originally purchased with maturities of three months or less to be cash equivalents. e. Allowance for doubtful accounts: The allowance for doubtful accounts is determined with respect to specific amounts the Company has determined to be doubtful of collection. In determining the allowance for doubtful accounts, the Company considers, among other things, its past experience with such customers and the information available regarding such customers. f. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are mainly provided to cover risks arising from slow-moving items or technological obsolescence. Cost is determined for all types of inventory using the moving average cost method . g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method, over the estimated useful lives, at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 20 Leasehold improvements Over the shorter of the term of the lease or the life of the asset h. Impairment of long-lived assets and intangible assets: The Company's long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. i. Goodwill: The Company's goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed as follows: An initial qualitative assessment of the likelihood of impairment may be performed. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. In step one of the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment. In the second step, the reporting unit's fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit's goodwill is less than its carrying value, the difference is recorded as impairment. j. Accrued severance pay and severance pay fund: The liabilities of the Company for severance pay of its Israeli employees are calculated pursuant to Israel's Severance Pay Law. Employees are entitled to one month's salary for each year of employment, or portion thereof. The Company's liability for all its employees is presented under "accrued severance pay". The Company deposits on a monthly basis to severance pay funds and insurance policies. The value of these policies is presented as an asset on the Company's balance sheet. The deposited funds include accrued income up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the Company's obligation pursuant to Israel's Severance Pay Law or labor agreements. Severance expenses for the years ended December 31, 2015, 2014 and 2013 amounted to $ 607 308 128 k. Revenue recognition: The Company and its subsidiaries generate their revenues from the sale of products, maintenance, royalties and long term contracts (including training and installation). Product sales are recognized in accordance with ASC 605-10, when persuasive evidence of an agreement exists, delivery of the product has occurred or services have been rendered, the fee is fixed or determinable, collectability is reasonably assured, and inconsequential or perfunctory performance obligations remain. If the product requires specific customer acceptance, revenue is deferred until customer acceptance occurs or the acceptance provision lapses. The Company recognized certain long-term contract revenues in accordance with ASC Topic 605-35, "Construction-Type and Production-Type Contracts". Pursuant to ASC Topic 605-35, revenues from these contracts are recognized under the percentage of completion method. The Company measures the percentage of completion based on output or input criteria, such as contract milestones, percentage of engineering completion or number of units shipped, as applicable to each contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first identified, in the amount of the estimated loss on the entire contract. As of December 31, 2015, no such estimated losses were identified. The Company's management believes that the use of the percentage of completion method is appropriate in these cases since most of our contracts specify milestones achievements in details, as to allow determination of progress made towards completion. In addition, our contracts include provisions that clearly specify the enforceable rights of the parties to the contract, the consideration to be exchanged and the manner and terms of settlement. In all cases, the Company expects to perform its contractual obligations and the parties are expected to satisfy their obligations under the contract. Revenues from maintenance services are recognized over the term of the contracts. The Company is not obligated to accept returned products or issue credit for returned products, unless a product return has been approved by the Company in advance and according to specific terms and conditions. As of December 31, 2015, the Company had no allowance for customer returns at an insignificant amount. Warranty period is usually 12 months. Based primarily on historical experience, the Company does not provide for warranty costs when revenue is recognized, since such costs are not material. l. Research and development costs and software development costs: Research and development costs are expensed as incurred. Software development costs eligible for capitalization are accounted for in accordance with 985-20 Software — Costs of Software to be Sold, Leased or Marketed. Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. Amortization is calculated and provided over the estimated economic life of the software, using the straight-line method. Amortization commences when developed software is available for general release to clients. The estimated useful life of capitalized software development costs is between 3 5 m. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, "Income Taxes". This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws, that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise's financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition and measurement threshold. The Company's accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2015, 2014 or 2013 financial statements. n. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash deposits and trade receivables. The Company's trade receivables are derived from sales to limited number of customers located primarily in Eastern Europe, Africa, the United States and Ecuador. The Company performs ongoing credit evaluations of its customers' financial condition. The allowance for doubtful accounts is determined with respect to specific debts that the Company has determined to be doubtful of collection. Cash and cash equivalents and restricted cash deposits are deposited with major banks in Israel and the United States. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company has no significant off-balance-sheet concentration of credit risk. o. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus the dilutive potential of stock options and warrants outstanding during the year using the treasury stock method and the dilutive potential, if any, of convertible bonds using the “if-converted method”. The numbers of potential shares from the conversion of options and warrants that have been excluded from the calculation were 392,124 35,193 121,196 p. Fair value of financial instruments: At December 31, 2015 and 2014, the carrying amounts of cash and cash equivalents, restricted cash deposits, current trade receivables, other accounts receivable, trade payables and other accounts payable approximate their fair value due to the short-term maturity of such financial instruments. q. Accounting for stock-based compensation: Stock-based compensation, including grants of stock options, is recognized in the consolidated statement of operations as an operating expense, based on the fair value of the award on the date of grant. The fair value of stock-based compensation is estimated 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 statement of operations. The Company estimates the fair value of employee stock options using a Black-Scholes valuation model. The Company amortizes compensation costs using the graded vesting attribution method over the vesting period, net of estimated forfeitures. r. Acquisition-related intangible assets The Company accounts for its business combinations in accordance with ASC 805 “Business Combinations” and with ASC 350-20 “Goodwill and Other Intangible Assets” (“ASC 350-20”). ASC 805-10 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. Acquisition-related intangible assets result from the Company's acquisitions of businesses accounted for under the purchase method and consist of the value of identifiable intangible assets including developed software products and trade names, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related intangible assets are reported at cost, net of accumulated amortization.

OTHER ACCOUNTS RECEIVABLE AND P

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES	12 Months Ended
	Dec. 31, 2015
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES [Abstract]
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES	NOTE 3: OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2015 2014 $ $ Prepaid expenses 176 55 Government institutions 780 945 Others 243 190 1,199 1,190

INVENTORIES, NET

INVENTORIES, NET	12 Months Ended
	Dec. 31, 2015
INVENTORIES, NET [Abstract]
INVENTORIES, NET	NOTE 4: INVENTORIES, NET December 31, 2015 2014 $ $ Raw materials, parts and supplies 928 759 Finished products 2,674 855 3,602 1,614 As of December 31, 2015 and 2014, inventory is presented net of write offs for slow inventory in the amount of approximately $ 151 121

ACQUISITION

ACQUISITION	12 Months Ended
	Dec. 31, 2015
ACQUISITION [Abstract]
ACQUISITION	NOTE 5: ACQUISITION Purchase agreement with OTI On August 13, 2013, the Company entered into an asset purchase agreement with OTI, to acquire OTI's SmartID Division, including all contracts, software, other related technologies and IP assets. The acquisition closed on December 26, 2013. The Company agreed to pay OTI $ 10 12.5 7.5 7 In 2015 and in 2014, the Company paid an amount of $ 0.8 1 respectively, based Furthermore, if the Company or any of its affiliates are awarded or otherwise receive orders under certain potential projects that were disclosed to the Company as part of the acquisition, then the gross amount of all potential revenues under all such orders or awards during each of the three 20 1,667 5 12 In April, 2016 the Company has concluded further negotiations with OTI with respect to the earn-out liability following by which an agreement with OTI was signed. Under this agreement the remaining earn-out amount was set to a maximum $ 3,550 2,050 1,500 The application of purchase accounting under ASC 805 Business Combinations requires that the total purchase price be allocated to the fair value of assets acquired and liabilities assumed at the acquisition date, with amounts exceeding the fair values being recorded as goodwill. In the allocation process, the valuation of the fair value of acquired assets and assumed liabilities were based on, but not limited to: future expected discounted cash flows for customer contracts and liability for future earn-out, current replacement cost for software and other IP and certain property and equipment, and expected settlement amounts for contingencies. The purchase price allocation for the SmartID division acquisition was finalized during 2014. The change in the fair value of the net assets of the acquired division was retrospectively applied with changes allocated to goodwill. The following table summarizes the calculation of the acquisition price, including the estimated fair value of the liability for future earn-out as of the acquisition date: Cash paid to OTI upon Closing $ 8,788 Contingent consideration: Short-term 1,950 Long-term 3,359 Total fair value of consideration paid $ 14,097 The following table summarizes the estimated fair values of the intangible assets acquired from OTI: Customer contracts $ 5,745 Software and other IP 5,303 Goodwill 3,722 Total intangible assets acquired 14,770 The customer contracts will be amortized over 13 15 11,988 1,271 1,511 The expected intangible assets amortization expenses for the customer contracts and for software and other IP, are as follows: $ 2016 1,101 2017 966 2018 855 2019 764 2020 690 2021 629 2022-2028 3,261 Purchase of Prevision Ltd. In November, 2015 the Company acquired 100 1.1 0.3 1.4 250,000 four Acquisitions completed subsequent to December 31, 2015 Refer to note 16, Subsequent events.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT, NET [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 6: PROPERTY AND EQUIPMENT, NET December 31, 2015 2014 $ $ Cost: Computers and peripheral equipment 1,131 726 Office furniture and equipment 351 230 Leasehold improvements 295 192 Vehicle 29 - 1,806 1,148 Accumulated depreciation: Computers and peripheral equipment 648 360 Office furniture and equipment 202 160 Leasehold improvements 39 12 Vehicle 29 - 918 532 Depreciated cost 888 616 (1) Depreciation expenses for the years ended December 31, 2015, 2014 and 2013, were $ 291 103 48 (2) Property plant and equipment in connection with business combination includes cost of $ 117 95

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
OTHER INTANGIBLE ASSETS [Abstract]
OTHER INTANGIBLE ASSETS	NOTE 7: OTHER INTANGIBLE ASSETS Other Intangible assets include development costs of software to be sold, eased or marketed. Development costs capitalized in during the year ended December 31, 2015 amounted to $ 2,099 111

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	NOTE 8: ACCRUED EXPENSES AND OTHER LIABILITIES December 31 2015 2014 $ $ Liabilities related with the Smart ID acquisition 813 813 Accrued marketing expenses 838 437 Employees Benefits 495 417 Authorities 113 277 Overheads 129 255 Legal service providers 298 93 Other accrued expenses 231 463 2,917 2,755

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 9: COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Company's facilities and those of certain subsidiaries are rented under several operating lease agreements for periods ending 2016 to 2019. The monthly lease amount, including management fees of the leased property, is approximately 76 Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, are as follows: 2016 908 2017 735 2018 735 2019 245 2,623 b. Guarantees, indemnity and liens: 1. The Company issued bank guaranties in the total amount of $ 2.9 million as a part of the ongoing terms of the contracts with existing customers and for tenders. 2. The Company issued a bank guarantee of up to NIS 510 131 3. On April 29, 2012, the Company's board of directors approved the recording of a floating charge on all of the Company's assets in favor of the Company's current and former chairmen of the board of directors, unlimited in amount, in order to secure personal guarantees granted by them in favor of the Company, such as to a bank in order to secure short-term loans that are given by them from time to time to the Company. c. Litigation: As part of the acquisition of the SmartID division of OTI, the Company assumed a dispute with Merwell Inc. (“Merwell”). Merwell has alleged that it has not received the full payment it is entitled to for its services in respect of a drivers' license project. OTI alleged that Merwell breached its commitments under the service agreement and also acted in concert with third parties to damage OTI's business activities. This matter is now subject to an arbitration proceeding. An appropriate provision is included in the financial statements.

INCOME TAX

INCOME TAX	12 Months Ended
	Dec. 31, 2015
INCOME TAX [Abstract]
INCOME TAX	NOTE 10: INCOME TAX a. Changes in Israeli corporate tax rates: The regular corporate tax rate in Israel in 2015 is 26.5 26.5 25 On August 5, 2013 the Israeli parliament (the Knesset) passed the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) - 2013, by which, inter alia, the corporate tax rate would be raised by 1.5 1.5 25 b. Non-Israeli subsidiaries are taxed according to the tax laws of the countries in which they are located. c. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets of the Company and its subsidiaries are as follows: December 31, 2015 2014 $ $ Operating loss carry forwards 7,656 8,081 Reserves and allowances 1,629 1,525 Net deferred tax assets before valuation allowance 9,285 9,606 Valuation allowance (5,213 ) (5,347 ) Net deferred tax assets 4,072 4,259 Deferred income taxes consist of the following: Domestic 4,027 4,259 Valuation allowance - - Net deferred tax assets 4,027 4,259 Foreign 5,258 5,347 Valuation allowance (5,213 ) ( 5,347 ) 45 - As of December 31, 2015, the Company has provided a valuation allowance of $5,213 in respect of deferred tax assets resulting from tax loss carryforwards and other temporary differences in its subsidiaries. O ther tax loss carryforwards and temporary differences in the amount of $ 4,072 d. Carryforward tax losses: SuperCom Ltd. has accumulated losses for tax purposes as of December 31, 2015 of approximately $ 9,116 13,617 As of December 31, 2015, SuperCom's subsidiaries in the United States have estimated total available carryforward tax losses of approximately $ 13,100 3,413 e. SuperCom Ltd has assessments which are considered as final until the tax year ended December 31, 2010. SuperCom's subsidiaries in the United States and Israel have not received final assessments since their incorporation. f. Income (loss) before income tax consists of the following: Year ended December 31, 2015 2014 2013 $ $ $ Domestic 915 6,281 1,495 Foreign 301 1,595 ( 137 ) 1,216 7,876 1,358 g. Reconciliation of the theoretical tax benefit to the actual tax benefit: A reconciliation of theoretical tax expense, assuming all income is taxed at the statutory rate applicable to the income of companies in Israel, and the actual tax expense (benefit), is as follows: Year ended December 31, 2015 2014 2013 $ $ $ Income before income tax, as reported in the consolidated statements of operations 1,216 7,876 1,358 Statutory tax rate in Israel 26.5 % 26.5 % 25 % Theoretical tax expense 322 2,087 340 Current year carryforward losses and other differences for which a valuation allowance was recorded 2 67 ( 908 ) Changes in valuation allowance (211 ) ( 1,332 ) ( 3,668 ) Changes in foreign currency exchange rate 44 674 (425 ) Changes in tax rate - - ( 334 ) Non-deductible expenses and other differences 40 179 ( 113 ) Actual income tax expense (benefit) 197 1,675 ( 5,108 )

SHARE CAPITAL

SHARE CAPITAL	12 Months Ended
	Dec. 31, 2015
SHARE CAPITAL [Abstract]
SHARE CAPITAL	NOTE 11: SHARE CAPITAL a. The Company's ordinary shares are quoted under the symbol “SPCB” on the NASDAQ Capital Market in the United States. On August 22, 2013, a 1 for 4.250002 reverse split of the Company's ordinary shares became effective. Pursuant to this reverse share split, each 4.250002 ordinary shares of NIS 0.0588235 0.25 15 All amounts of shares and per shares have been retroactively amended to give effect to the In December 2013, 3,450,000 13,800 During 2014, 358,000 2,458 In June 2015, 2,415,000 28,980 27,126 In December 2015, as part of the Company's stock repurchase plan, the Company repurchased 774,936 4.80 b. Shareholders' rights: The ordinary shares confer upon the holders the right to receive notice to participate and vote in the general meetings of the Company, and the right to receive dividends, if declared. c. Stock options: 1. In 2003, the Company adopted a stock option plan under which the Company issues stock options (the “Option Plan”). The Option Plan is intended to provide incentives to the Company's employees, officers, directors and/or consultants by providing them with the opportunity to purchase ordinary shares of the Company. Subject to the provisions of the Israeli Companies Law, the Option Plan is administered by the Compensation Committee, and is designed: (i) to comply with Section 102 of the Israeli Tax Ordinance or any provision which may amend or replace it and the rules promulgated thereunder and to enable the Company and grantees thereunder to benefit from Section 102 of the Israeli Tax Ordinance and the Commissioner's Rules; and (ii) to enable the Company to grant options and issue shares outside the context of Section 102 of the Israeli Tax Ordinance. Options granted under the Option Plan will become exercisable ratably over a period of three five 10 As a result of an amendment to Section 102 of the Israeli Tax Ordinance as part of the 2003 Israeli tax reform, and pursuant to an election made by the Company thereunder, capital gains derived by optionees arising from the sale of shares issued pursuant to the exercise of options granted to them under Section 102 after January 1, 2003, will generally be subject to a flat capital gains tax rate of 25%. However, as a result of this election, the Company will no longer be allowed to claim as an expense for tax purposes the amounts credited to such employees as a benefit when the related capital gains tax is payable by them, as the Company had previously been entitled to do under Section 102. On June 27, 2007, the Compensation Committee and board of directors of the Company approved a new option plan under which the Company may grant stock options to the U.S. employees of the Company and its subsidiaries. Under this new option plan, the Company may grant both qualified (for preferential tax treatment) and non-qualified stock options. On August 15, 2007, the new option plan was approved by the shareholders of the Company at the general shareholders meeting. During 2013, the Company issued options to purchase up to 152,949 137 0.72 4 ten In June 2013, the Option plan was extended for another period of 10 years, until December, 31, 2023. During the year 2014, the Company issued option to purchase up to 36,765 189 1.86 31,765 During the year 2015, the Company issued option to purchase up to 500,530 3,974 5.80 41,882 81,000 2. A summary of the Company's stock option activity and related information is as follows: Year ended December 31 2015 2014 2013 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price $ $ $ Outstanding at Beginning of year 137,855 2.64 204,931 2.06 128,952 4.12 Granted 500,530 5.80 36,765 1.86 152,949 0.72 Exercised (65,411 ) 3.10 ( 100,441 ) 0.82 ( 6,000 ) 0.85 Canceled and forfeited (85,542 ) 6.64 ( 3,400 ) 13.00 ( 70,970 ) 5.74 Outstanding at end of year 487,432 5.12 137,855 2.64 204,931 2.06 Exercisable at end of year 95,709 4.81 44,618 5.90 78,457 4.25 The weighted average fair value of options granted during the reported periods was $ 7.94 5.15 1.09 The fair value of these options was estimated on the date of grant using the Black & Scholes option pricing model. The following weighted average assumptions were used for the 2015 grants: risk-free rate of 1.28 0 362.86 3.11 0.34 0 314.47 1.9 The expected volatility was based on the historical volatility of the Company's stock. The expected term was based on the historical experience and based on Management estimate. Compensation expenses recognized by the Company related to its stock-based employee compensation awards and warrants were $1,529, $173, and $32 for the years ended December 31, 2015, 2014 and 2013, respectively. The following table summarizes the allocation of the stock-based compensation and warrants charge Year ended December 31, 2015 2014 2013 $ $ $ Cost of revenues 264 - - Research and development expenses 311 35 20 Selling and marketing expenses 249 - - General and administrative expenses 705 138 12 1,529 173 32 The options outstanding and exercisable as of December 31, 2015, have been separated into ranges of exercise prices as follows: Range of exercise price Options outstanding as of December 31, 2015 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value Options exercisable as of December 31, 2015 Weighted average exercise price Aggregate intrinsic value $ $ $ $ $ 0.00 0.85 97,512 6.61 0.68 442,471 38,687 0.67 175,906 3.00 5.00 237,648 3.04 4.40 195,626 28,000 4.31 25,395 7.00 10.00 145,000 4.09 8.57 - 21,750 7.92 - 18.75 22.00 7,272 1.33 19.43 - 7,272 19.43 - 487,432 4.04 5.12 638,097 95,709 4.81 201,301 The total intrinsic value of options exercised for the years ended December 31, 2015, 2014 and 2013 was $ 138 943 23 9.39 9.17 2.63 A summary of the status of the Company's non-vested options granted to employees as of December 31, 2015 and changes during the year ended December 31, 2015 is presented below: Options Weighted– average grant-date fair value Non-vested at January 1, 2015 93,237 1.58 Granted 500,530 7.94 Vested (128,294 ) 6.35 Forfeited (81,000) 7.62 Non-vested at December 31, 2015 384,473 6.95 As of December 31, 2015, there was $ 3,069 d. Private placements and warrants: A summary of the Company's warrants activity to investors (including warrants issued in connection with convertible bonds and extinguishment of liabilities) ,to settle obligation to service providers, and related information is as follows: Year ended December 31, 2015 2014 2013 Number of warrants (*) Weighted average exercise price Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price - $ - $ - $ Outstanding at beginning of year 4,000 20.00 4,000 20.00 864,590 0.55 Granted 48,055 0.38 - - 0 0 Exercised (48,055 ) 0.38 - - (844,353 ) 0.16 Canceled and forfeited - - - - (16,237 ) 16.96 Outstanding at end of year 4,000 20.00 4,000 20.00 4,000 20.00 Exercisable at end of year 4,000 20.00 4,000 20.00 4,000 20.00 (*) The weighted average remaining contractual life (years) is 0.99 The fair value of the warrants granted amounts to $ 503 e. Dividends: No dividends were declared in the reported periods. In the event that cash dividends are declared in the future, such dividends will be paid in NIS. The Company does not intend to distribute cash dividends in the foreseeable future.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12: RELATED PARTY TRANSACTIONS a. On July 25, 2010, the board of directors of the Company elected Mrs. Tsviya Trabelsi to serve as Chairman. Mrs. Trabelsi is an officer at Sigma Wave Ltd., which is the controlling shareholder of the Company and is also the wife of the Company's chief executive officer. On May 12, 2011, the special general meeting approved a service agreement with Mrs. Trabelsi whereby she will receive a monthly fee equal to 60 b. Mr. Trabelsi has served as the chief executive officer of the Company since June 1, 2012. Mr. Trabelsi is the sole director of Sigma Wave, which is the controlling shareholder of the Company. On May 9, 2013, the general meeting of shareholders of the Company approved the payment of management fees to Mr. Trabelsi of $ 10.6 2 0.5 c. As of December 31, 2015, the Company accrued $ 77 d. On April 29, 2012, the board of directors approved the recording of a floating charge on all of the Company's assets in favor of Mrs. and Mr. Trabelsi, unlimited in amount, in order to secure personal guarantees granted by them in favor of the Company to a bank and in order to secure short-term loans that are given by them from time to time to the Company. The short terms loans provided by Mrs. and Mr. Trabelsi during the years 2010 until 2013 ranged from NIS 10,000 1,965,000 1 256

SEGMENTS, MAJOR CUSTOMERS AND G

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION	12 Months Ended
	Dec. 31, 2015
SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION [Abstract]
SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION	NOTE 13: SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION a. Summary information about geographic areas: The Company manages its business on the basis of one reportable segment (see Note 1 for a brief description of the Company's business) and follows the requirements of ASC Topic 280, "Segment Reporting". The following is a summary of revenues from external customers of the continued operations within geographic areas and data regarding property and equipment, net: Year ended December 31, 2015 2014 2013 Total Property and Total Property and Total Property and Revenues Equipment, net revenues Equipment, net revenues Equipment, net $ $ $ $ $ $ Africa 25,204 - 24,083 - 903 - European countries 1,325 - 3,901 - 7,455 - South America 1,420 - 1,479 - 33 - United States 121 14 126 16 199 17 Israel 161 874 50 600 232 159 Other 109 - 64 - - - 28,340 888 29,703 616 8,822 176 - Revenues were attributed to countries based on the customer's location. - Property and equipment were classified based on geographic areas in which such property and equipment items are held. b. Summary of revenues from external customers based on products and services: Year ended December 31, 2015 2014 2013 $ $ $ Raw materials and equipment 9,427 4,982 5,392 Maintenance, royalties and project management 18,913 24,721 3,430 28,340 29,703 8,822 c. Major customer data as a percentage of total sales: Year ended December 31, 2015 2014 2013 Customer A 17 % 42 % - Customer B 30 % 19 % - Customer C 30 % 18 % - Customer D 3 % 13 % 73 % Customer E 9 % - - Customer F 5 % 5 % -

OTHER EXPENSES

OTHER EXPENSES	12 Months Ended
	Dec. 31, 2015
OTHER EXPENSES [Abstract]
OTHER EXPENSES	NOTE 14: OTHER EXPENSES Year ended December 31, 2015 2014 2013 $ $ $ Doubtful debt provision 1,576 1,225 358 Acquisition related expenses 598 - 149 Total 2,174 1,225 507 Bad debt The following is a summary of the accounts receivables allowance for doubtful accounts for the years ended December 31: Year ended December 31, 2015 2014 2013 $ $ $ Balance at beginning of period 4,390 2,084 1,726 Provision during the period 1,576 2,306 358 Doubtful account classified as bad debt (4,390 ) - - Reversal of allowance for doubtful account - - - Balance at end of period 1,576 4,390 2,084

FINANCIAL (EXPENSES) INCOME, NE

FINANCIAL (EXPENSES) INCOME, NET	12 Months Ended
	Dec. 31, 2015
FINANCIAL (EXPENSES) INCOME, NET [Abstract]
FINANCIAL (EXPENSES) INCOME, NET	NOTE 15: FINANCIAL (EXPENSES) INCOME, NET 2015 2014 2013 $ $ $ Financial expenses: Interest, bank charges and fees (211 ) (165 ) (67 ) Exchange differences, net (66 ) - (89 ) Total financial expenses (277 ) (165 ) (156 ) Financial income: Exchange differences, net - 32 - Total financial income - 32 - Total financial expenses, net (277 ) (133 ) (156 )

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	NOTE 16: SUBSEQUENT EVENTS a. In January, 2016 the Company acquired 100 3,000 b. Subsequent to the balance sheet date the Company re-purchased 476 2,381 c. In March, 2016 the Company acquired 100 1,500 d. On April 18, 2016 we acquired the Assets, IP, Inventory and Receivable of PowaPOS, a division of POWA Technologies Ltd.. PowaPOS provides fully-integrated mobile and tablet-based system innovative POS platform. The assets acquisition's consideration amounted to approximately $ 1,135 e. In April, 2016 the Company signed an agreement which among others finalizes the earn-out liability in connection with the acquisition of the SmartID Division from OTI. Refer to Note 5a. for additional information.

SIGNIFICANT ACCOUNTING POLICI23

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Use of estimates	a. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to allowance for doubtful accounts and contingencies.
Financial statements in U.S. dollars	b. Financial statements in U.S. dollars: Most of the revenues of the Company and its subsidiaries are received in U.S. dollars. In addition, a substantial portion of the costs of the Company and its subsidiaries are incurred in U.S. dollars. Therefore, management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. Monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing at the end of the reporting period in accordance with provisions of ASC 835-10. All transaction gains and losses from the re-measurement of monetary balance sheet items are reflected in the statements of operations as financial income or financial expenses as appropriate.
Principles of consolidation	c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Material intercompany transactions and balances were eliminated upon consolidation. Material profits from intercompany sales, not yet realized outside the group, were also eliminated.
Cash and cash equivalents	d. Cash and cash equivalents: The Company considers unrestricted short-term highly liquid investments originally purchased with maturities of three months or less to be cash equivalents.
Allowance for doubtful accounts	e. Allowance for doubtful accounts: The allowance for doubtful accounts is determined with respect to specific amounts the Company has determined to be doubtful of collection. In determining the allowance for doubtful accounts, the Company considers, among other things, its past experience with such customers and the information available regarding such customers.
Inventories	f. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are mainly provided to cover risks arising from slow-moving items or technological obsolescence. Cost is determined for all types of inventory using the moving average cost method .
Property and equipment	g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method, over the estimated useful lives, at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 20 Leasehold improvements Over the shorter of the term of the lease or the life of the asset
Impairment of long-lived assets and intangible assets	h. Impairment of long-lived assets and intangible assets: The Company's long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Goodwill	i. Goodwill: The Company's goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed as follows: An initial qualitative assessment of the likelihood of impairment may be performed. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. In step one of the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment. In the second step, the reporting unit's fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit's goodwill is less than its carrying value, the difference is recorded as impairment.
Accrued severance pay and severance pay fund	j. Accrued severance pay and severance pay fund: The liabilities of the Company for severance pay of its Israeli employees are calculated pursuant to Israel's Severance Pay Law. Employees are entitled to one month's salary for each year of employment, or portion thereof. The Company's liability for all its employees is presented under "accrued severance pay". The Company deposits on a monthly basis to severance pay funds and insurance policies. The value of these policies is presented as an asset on the Company's balance sheet. The deposited funds include accrued income up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the Company's obligation pursuant to Israel's Severance Pay Law or labor agreements. Severance expenses for the years ended December 31, 2015, 2014 and 2013 amounted to $ 607 308 128
Revenue recognition	k. Revenue recognition: The Company and its subsidiaries generate their revenues from the sale of products, maintenance, royalties and long term contracts (including training and installation). Product sales are recognized in accordance with ASC 605-10, when persuasive evidence of an agreement exists, delivery of the product has occurred or services have been rendered, the fee is fixed or determinable, collectability is reasonably assured, and inconsequential or perfunctory performance obligations remain. If the product requires specific customer acceptance, revenue is deferred until customer acceptance occurs or the acceptance provision lapses. The Company recognized certain long-term contract revenues in accordance with ASC Topic 605-35, "Construction-Type and Production-Type Contracts". Pursuant to ASC Topic 605-35, revenues from these contracts are recognized under the percentage of completion method. The Company measures the percentage of completion based on output or input criteria, such as contract milestones, percentage of engineering completion or number of units shipped, as applicable to each contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first identified, in the amount of the estimated loss on the entire contract. As of December 31, 2015, no such estimated losses were identified. The Company's management believes that the use of the percentage of completion method is appropriate in these cases since most of our contracts specify milestones achievements in details, as to allow determination of progress made towards completion. In addition, our contracts include provisions that clearly specify the enforceable rights of the parties to the contract, the consideration to be exchanged and the manner and terms of settlement. In all cases, the Company expects to perform its contractual obligations and the parties are expected to satisfy their obligations under the contract. Revenues from maintenance services are recognized over the term of the contracts. The Company is not obligated to accept returned products or issue credit for returned products, unless a product return has been approved by the Company in advance and according to specific terms and conditions. As of December 31, 2015, the Company had no allowance for customer returns at an insignificant amount. Warranty period is usually 12 months. Based primarily on historical experience, the Company does not provide for warranty costs when revenue is recognized, since such costs are not material.
Research and development costs and software development costs:	l. Research and development costs and software development costs: Research and development costs are expensed as incurred. Software development costs eligible for capitalization are accounted for in accordance with 985-20 Software — Costs of Software to be Sold, Leased or Marketed. Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. Amortization is calculated and provided over the estimated economic life of the software, using the straight-line method. Amortization commences when developed software is available for general release to clients. The estimated useful life of capitalized software development costs is between 3 5
Income taxes	m. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, "Income Taxes". This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws, that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise's financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition and measurement threshold. The Company's accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2015, 2014 or 2013 financial statements.
Concentrations of credit risk	n. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash deposits and trade receivables. The Company's trade receivables are derived from sales to limited number of customers located primarily in Eastern Europe, Africa, the United States and Ecuador. The Company performs ongoing credit evaluations of its customers' financial condition. The allowance for doubtful accounts is determined with respect to specific debts that the Company has determined to be doubtful of collection. Cash and cash equivalents and restricted cash deposits are deposited with major banks in Israel and the United States. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company has no significant off-balance-sheet concentration of credit risk.
Basic and diluted earnings per share	o. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus the dilutive potential of stock options and warrants outstanding during the year using the treasury stock method and the dilutive potential, if any, of convertible bonds using the “if-converted method”. The numbers of potential shares from the conversion of options and warrants that have been excluded from the calculation were 392,124 35,193 121,196
Fair value of financial instruments	p. Fair value of financial instruments: At December 31, 2015 and 2014, the carrying amounts of cash and cash equivalents, restricted cash deposits, current trade receivables, other accounts receivable, trade payables and other accounts payable approximate their fair value due to the short-term maturity of such financial instruments.
Accounting for share-based compensation	q. Accounting for stock-based compensation: Stock-based compensation, including grants of stock options, is recognized in the consolidated statement of operations as an operating expense, based on the fair value of the award on the date of grant. The fair value of stock-based compensation is estimated 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 statement of operations. The Company estimates the fair value of employee stock options using a Black-Scholes valuation model. The Company amortizes compensation costs using the graded vesting attribution method over the vesting period, net of estimated forfeitures.
Acquisition-related intangible assets	r. Acquisition-related intangible assets The Company accounts for its business combinations in accordance with ASC 805 “Business Combinations” and with ASC 350-20 “Goodwill and Other Intangible Assets” (“ASC 350-20”). ASC 805-10 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. Acquisition-related intangible assets result from the Company's acquisitions of businesses accounted for under the purchase method and consist of the value of identifiable intangible assets including developed software products and trade names, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related intangible assets are reported at cost, net of accumulated amortization.

SIGNIFICANT ACCOUNTING POLICI24

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Depreciation of Property and Equipment	% Computers and peripheral equipment 33 Office furniture and equipment 6 20 Leasehold improvements Over the shorter of the term of the lease or the life of the asset

OTHER ACCOUNTS RECEIVABLE AND25

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES [Abstract]
Schedule of Other Accounts Receivable and Prepaid Expenses	December 31, 2015 2014 $ $ Prepaid expenses 176 55 Government institutions 780 945 Others 243 190 1,199 1,190

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	12 Months Ended
	Dec. 31, 2015
INVENTORIES, NET [Abstract]
Schedule of Inventory, Net	December 31, 2015 2014 $ $ Raw materials, parts and supplies 928 759 Finished products 2,674 855 3,602 1,614

ACQUISITION (Tables)

ACQUISITION (Tables)	12 Months Ended
	Dec. 31, 2015
ACQUISITION [Abstract]
Schedule of Consideration Transferred	Cash paid to OTI upon Closing $ 8,788 Contingent consideration: Short-term 1,950 Long-term 3,359 Total fair value of consideration paid $ 14,097
Schedule of Intangible Assets Acquired	Customer contracts $ 5,745 Software and other IP 5,303 Goodwill 3,722 Total intangible assets acquired 14,770
Schedule of Future Amortization Expense	$ 2016 1,101 2017 966 2018 855 2019 764 2020 690 2021 629 2022-2028 3,261

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT, NET [Abstract]
Schedule of Property and Equipment, Net	December 31, 2015 2014 $ $ Cost: Computers and peripheral equipment 1,131 726 Office furniture and equipment 351 230 Leasehold improvements 295 192 Vehicle 29 - 1,806 1,148 Accumulated depreciation: Computers and peripheral equipment 648 360 Office furniture and equipment 202 160 Leasehold improvements 39 12 Vehicle 29 - 918 532 Depreciated cost 888 616

ACCRUED EXPENSES AND OTHER LI29

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Schedule of Accrued Expenses and Other Liabilities	December 31 2015 2014 $ $ Liabilities related with the Smart ID acquisition 813 813 Accrued marketing expenses 838 437 Employees Benefits 495 417 Authorities 113 277 Overheads 129 255 Legal service providers 298 93 Other accrued expenses 231 463 2,917 2,755

COMMITMENTS AND CONTINGENT LI30

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
Schedule of Future Minimum Payments under Operating Leases	2016 908 2017 735 2018 735 2019 245 2,623

INCOME TAX (Tables)

INCOME TAX (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAX [Abstract]
Schedule of Deferred Tax Assets and Liabilities	December 31, 2015 2014 $ $ Operating loss carry forwards 7,656 8,081 Reserves and allowances 1,629 1,525 Net deferred tax assets before valuation allowance 9,285 9,606 Valuation allowance (5,213 ) (5,347 ) Net deferred tax assets 4,072 4,259 Deferred income taxes consist of the following: Domestic 4,027 4,259 Valuation allowance - - Net deferred tax assets 4,027 4,259 Foreign 5,258 5,347 Valuation allowance (5,213 ) ( 5,347 ) 45 -
Schedule of Income (Loss) before Income Tax	Year ended December 31, 2015 2014 2013 $ $ $ Domestic 915 6,281 1,495 Foreign 301 1,595 ( 137 ) 1,216 7,876 1,358
Schedule of Effective Income Tax Reconciliation	Year ended December 31, 2015 2014 2013 $ $ $ Income before income tax, as reported in the consolidated statements of operations 1,216 7,876 1,358 Statutory tax rate in Israel 26.5 % 26.5 % 25 % Theoretical tax expense 322 2,087 340 Current year carryforward losses and other differences for which a valuation allowance was recorded 2 67 ( 908 ) Changes in valuation allowance (211 ) ( 1,332 ) ( 3,668 ) Changes in foreign currency exchange rate 44 674 (425 ) Changes in tax rate - - ( 334 ) Non-deductible expenses and other differences 40 179 ( 113 ) Actual income tax expense (benefit) 197 1,675 ( 5,108 )

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	12 Months Ended
	Dec. 31, 2015
SHARE CAPITAL [Abstract]
Schedule of Stock Option Activity	Year ended December 31 2015 2014 2013 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price $ $ $ Outstanding at Beginning of year 137,855 2.64 204,931 2.06 128,952 4.12 Granted 500,530 5.80 36,765 1.86 152,949 0.72 Exercised (65,411 ) 3.10 ( 100,441 ) 0.82 ( 6,000 ) 0.85 Canceled and forfeited (85,542 ) 6.64 ( 3,400 ) 13.00 ( 70,970 ) 5.74 Outstanding at end of year 487,432 5.12 137,855 2.64 204,931 2.06 Exercisable at end of year 95,709 4.81 44,618 5.90 78,457 4.25
Schedule of Stock-Based Compensation Charge	Year ended December 31, 2015 2014 2013 $ $ $ Cost of revenues 264 - - Research and development expenses 311 35 20 Selling and marketing expenses 249 - - General and administrative expenses 705 138 12 1,529 173 32
Schedule of Options Outstanding and Exercisable	Range of exercise price Options outstanding as of December 31, 2015 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value Options exercisable as of December 31, 2015 Weighted average exercise price Aggregate intrinsic value $ $ $ $ $ 0.00 0.85 97,512 6.61 0.68 442,471 38,687 0.67 175,906 3.00 5.00 237,648 3.04 4.40 195,626 28,000 4.31 25,395 7.00 10.00 145,000 4.09 8.57 - 21,750 7.92 - 18.75 22.00 7,272 1.33 19.43 - 7,272 19.43 - 487,432 4.04 5.12 638,097 95,709 4.81 201,301
Schedule of Nonvested Option Activity	Options Weighted– average grant-date fair value Non-vested at January 1, 2015 93,237 1.58 Granted 500,530 7.94 Vested (128,294 ) 6.35 Forfeited (81,000) 7.62 Non-vested at December 31, 2015 384,473 6.95
Schedule of Warrant Activity	Year ended December 31, 2015 2014 2013 Number of warrants (*) Weighted average exercise price Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price - $ - $ - $ Outstanding at beginning of year 4,000 20.00 4,000 20.00 864,590 0.55 Granted 48,055 0.38 - - 0 0 Exercised (48,055 ) 0.38 - - (844,353 ) 0.16 Canceled and forfeited - - - - (16,237 ) 16.96 Outstanding at end of year 4,000 20.00 4,000 20.00 4,000 20.00 Exercisable at end of year 4,000 20.00 4,000 20.00 4,000 20.00 (*) The weighted average remaining contractual life (years) is 0.99 The fair value of the warrants granted amounts to $ 503

SEGMENTS, MAJOR CUSTOMERS AND33

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION [Abstract]
Schedule of External Customer Revenues by Geographic Area	Year ended December 31, 2015 2014 2013 Total Property and Total Property and Total Property and Revenues Equipment, net revenues Equipment, net revenues Equipment, net $ $ $ $ $ $ Africa 25,204 - 24,083 - 903 - European countries 1,325 - 3,901 - 7,455 - South America 1,420 - 1,479 - 33 - United States 121 14 126 16 199 17 Israel 161 874 50 600 232 159 Other 109 - 64 - - - 28,340 888 29,703 616 8,822 176 - Revenues were attributed to countries based on the customer's location. - Property and equipment were classified based on geographic areas in which such property and equipment items are held.
Schedule of Revenues by External Customers by Products and Services	Year ended December 31, 2015 2014 2013 $ $ $ Raw materials and equipment 9,427 4,982 5,392 Maintenance, royalties and project management 18,913 24,721 3,430 28,340 29,703 8,822
Schedule of Major Customers, Precent of Total Sales	Year ended December 31, 2015 2014 2013 Customer A 17 % 42 % - Customer B 30 % 19 % - Customer C 30 % 18 % - Customer D 3 % 13 % 73 % Customer E 9 % - - Customer F 5 % 5 % -

OTHER EXPENSES (Tables)

OTHER EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
OTHER EXPENSES [Abstract]
Schedule of Other (Income) Expenses	Year ended December 31, 2015 2014 2013 $ $ $ Doubtful debt provision 1,576 1,225 358 Acquisition related expenses 598 - 149 Total 2,174 1,225 507
Summary of the Allowance for Doubtful Accounts	Year ended December 31, 2015 2014 2013 $ $ $ Balance at beginning of period 4,390 2,084 1,726 Provision during the period 1,576 2,306 358 Doubtful account classified as bad debt (4,390 ) - - Reversal of allowance for doubtful account - - - Balance at end of period 1,576 4,390 2,084

FINANCIAL (EXPENSES) INCOME, 35

FINANCIAL (EXPENSES) INCOME, NET (Tables)	12 Months Ended
	Dec. 31, 2015
FINANCIAL (EXPENSES) INCOME, NET [Abstract]
Schedule of Financial (Expenses) Income, Net	2015 2014 2013 $ $ $ Financial expenses: Interest, bank charges and fees (211 ) (165 ) (67 ) Exchange differences, net (66 ) - (89 ) Total financial expenses (277 ) (165 ) (156 ) Financial income: Exchange differences, net - 32 - Total financial income - 32 - Total financial expenses, net (277 ) (133 ) (156 )

GENERAL (Details)

GENERAL (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
GENERAL [Abstract]
Cash paid for acquisition				$ 10,000
Cash paid for acquisition, net		$ 988		$ 8,788
Business Acquisition, Contingent Consideration [Line Items]
Issuance of share capital, net of issuance costs (in shares)	2,415,000		358,000	3,450,000
Total net proceeds from issuance of share capital	$ 27,126	$ 27,126	$ 2,458	$ 12,043
Earn-out Agreement [Member]
Business Acquisition, Contingent Consideration [Line Items]
Maximum contingent payments				$ 12,500

SIGNIFICANT ACCOUNTING POLICI37

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Severance expenses		$ 607	$ 308	$ 128
Antidilutive shares		392,124	35,193	121,196
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate		33.00%
Office furniture and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate		6.00%
Office furniture and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate		20.00%
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciation rate	[1]
capitalized software development costs [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life		3 years
capitalized software development costs [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life		5 years
[1]	Over the shorter of the term of the lease or the life of the asset

OTHER ACCOUNTS RECEIVABLE AND38

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES [Abstract]
Prepaid expenses	$ 176	$ 55
Government institutions	780	945
Others	243	190
Other accounts receivable and prepaid expenses	$ 1,199	$ 1,190

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
INVENTORIES, NET [Abstract]
Raw materials, parts and supplies	$ 928	$ 759
Finished products	2,674	855
Inventories, net	3,602	1,614
Valuation adjustment for slow inventory	$ 151	$ 121

ACQUISITION (Narrative) (Detail

ACQUISITION (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	May. 31, 2016	Nov. 30, 2015	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013	Apr. 30, 2016	Dec. 26, 2013
ACQUISITION [Abstract]
Cash paid for acquisition						$ 10,000
Payment of liability for future earn-out in business combination			$ 849	$ 1,009	[1]
Depreciated cost of assets acquired			11,988
Depreciation cost			1,271	1,511
Business Acquisition, Contingent Consideration [Line Items]
Total consideration						$ 14,097
Customer relations and goodwill			4,688	$ 3,722				$ 3,722
Prevision [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent payments cap		$ 250,000
Agreement term		4 years
Ownership interests		100.00%
Total consideration		$ 1,100
Net identifiable liabilities		300
Customer relations and goodwill		$ 1,400
Earn-out Agreement [Member]
Business Acquisition, Contingent Consideration [Line Items]
Maximum contingent payments						12,500
Contingent payments cap						$ 7,500
Agreement term						7 years
Additional contingent consideration			$ 1,500
Earn-out Agreement [Member] | Subsequent Event [Member] | Forecast [Member]
Business Acquisition, Contingent Consideration [Line Items]
Maximum contingent payments							$ 3,550
Additional contingent consideration	$ 2,050
Award Units [Member]
Business Acquisition, Contingent Consideration [Line Items]
Maximum contingent payments						$ 20,000
Contingent payments cap						$ 5,000
Agreement term						3 years
Additional contingent consideration						$ 1,667
Extension term						12 months
[1]	Reclassified from investing activities

ACQUISITION (Schedule of Consid

ACQUISITION (Schedule of Consideration Transferred) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ACQUISITION [Abstract]
Cash paid for acquisition, net	$ 988		$ 8,788
Short-term Liability for future earn-out			1,950
Long-term Liability for future earn-out			3,359
Total acquisition price			$ 14,097

ACQUISITION (Schedule of Assets

ACQUISITION (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 26, 2013
Assets acquired
Customer contracts				$ 5,745
Software and other IP				5,303
Goodwill		$ 4,688	$ 3,722	3,722
Total intangible assets acquired				$ 14,770
Customer Contracts [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization period	13 years
Intellectual Property [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization period	15 years

ACQUISITION (Schedule of Future

ACQUISITION (Schedule of Future Amortization Expense) (Details) $ in Thousands	Dec. 31, 2013USD ($)
Future amortization expense:
2,016	$ 1,101
2,017	966
2,018	855
2,019	764
2,020	690
2,021	629
2022-2028	$ 3,261

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
PROPERTY AND EQUIPMENT, NET [Abstract]
Depreciation expense	$ 291	$ 103	$ 48
Property plant and equipment cost in connection with business combination	117
Property plant and equipment depreciated cost	95
Property, Plant and Equipment [Line Items]
Property and equipment	1,806	1,148
Accumulated depreciation	918	532
Property and equipent, net	888	616	$ 176
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,131	726
Accumulated depreciation	648	360
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	351	230
Accumulated depreciation	202	160
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	295	192
Accumulated depreciation	39	$ 12
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	29
Accumulated depreciation	$ 29

OTHER INTANGIBLE ASSETS (Detail

OTHER INTANGIBLE ASSETS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
OTHER INTANGIBLE ASSETS [Abstract]
Development costs capitalized	$ 2,099
Amortization expenses	$ 111

ACCRUED EXPENSES AND OTHER LI46

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Liabilities related with the Smart ID acquisition	$ 813	$ 813
Accrued marketing expenses	838	437
Employees Benefits	495	417
Authorities	113	277
Overheads	129	255
Legal service providers	298	93
Other accrued expenses	231	463
Accrued expenses and other liabilities	$ 2,917	$ 2,755

COMMITMENTS AND CONTINGENT LI47

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - 12 months ended Dec. 31, 2015 ₪ in Thousands, $ in Thousands	USD ($)	ILS (₪)
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
Monthly lease amount	$ 76
Future minimum lease commitments
2,016	908
2,017	735
2,018	735
2,019	245
Total	2,623
Registration Payment Arrangement [Line Items]
Bank guarantee	2,900
Maximum
Registration Payment Arrangement [Line Items]
Bank guarantee	$ 131	₪ 510

INCOME TAX (Narrative) (Details

INCOME TAX (Narrative) (Details) - USD ($) $ in Thousands	Jan. 01, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax [Line Items]
Corporate tax rate (as a percent)		26.50%	26.50%	25.00%
Change in corporate tax rate (as a percent)			1.50%
Other carryforward		$ 4,072
Subsequent Event [Member]
Income Tax [Line Items]
Corporate tax rate (as a percent)	25.00%
Change in corporate tax rate (as a percent)	1.50%
Domestic [Member]
Income Tax [Line Items]
Operating loss carryforward		9,116
Domestic [Member] | Capital Loss Carryforward [Member]
Income Tax [Line Items]
Other carryforward		13,617
Foreign [Member]
Income Tax [Line Items]
Operating loss carryforward		13,100
Operating loss carryforward, subject to limitations		$ 3,413

INCOME TAX (Schedule of Deferre

INCOME TAX (Schedule of Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax [Line Items]
Operating loss carry forward	$ 7,656	$ 8,081
Reserves and allowances	1,629	1,525
Net deferred tax assets before valuation allowance	9,285	9,606
Valuation allowance	(5,213)	(5,347)
Net deferred tax assets	4,072	4,259
Domestic [Member]
Income Tax [Line Items]
Net deferred tax assets before valuation allowance	$ 4,027	$ 4,259
Valuation allowance
Net deferred tax assets	$ 4,027	$ 4,259
Foreign [Member]
Income Tax [Line Items]
Net deferred tax assets before valuation allowance	5,258	5,347
Valuation allowance	(5,213)	$ (5,347)
Net deferred tax assets	$ 45

INCOME TAX (Schedule of Income

INCOME TAX (Schedule of Income Tax Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INCOME TAX [Abstract]
Domestic	$ 915	$ 6,281	$ 1,495
Foreign	301	1,595	(137)
Income before income tax	$ 1,216	$ 7,876	$ 1,358
Statutory tax rate in Israel	26.50%	26.50%	25.00%
Theoretical tax expense	$ 322	$ 2,087	$ 340
Current year carryforward losses and other differences for which a valuation allowance was recorded	2	67	(908)
Change in valuation allowance	(211)	(1,332)	(3,668)
Changes in foreign currency exchange rate	$ 44	$ 674	(425)
Changes in tax rate			(334)
Non-deductible expenses and other differences	$ 40	$ 179	(113)
Actual income tax expense (benefit)	$ 197	$ 1,675	$ (5,108)

SHARE CAPITAL (Share Capital) (

SHARE CAPITAL (Share Capital) (Details) $ / shares in Units, $ in Thousands	Aug. 22, 2013₪ / shares	Dec. 31, 2015$ / shares₪ / sharesshares	Jun. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)shares	Dec. 31, 2013USD ($)shares	Dec. 31, 2014₪ / sharesshares	Dec. 31, 2013₪ / sharesshares
SHARE CAPITAL [Abstract]
Reverse stock split ratio	0.2353
Ordinary shares, par value per share | ₪ / shares	₪ 0.0588235	₪ 0.25					₪ 0.25	₪ 0.25
Ordinary shares, shares authorized | shares		18,000,000					18,000,000	15,000,000
Issuance of share capital | shares			2,415,000		358,000	3,450,000
Proceeds from issuance of share capital | $					$ 2,458	$ 13,800
Gross proceeds from public offering | $			$ 28,980
Total net proceeds from issuance of share capital | $			$ 27,126	$ 27,126	$ 2,458	$ 12,043
Treasury shares acquired (in shares) | shares		774,936
Treasury shares acquired, average cost per share | $ / shares		₪ 4.80

SHARE CAPITAL (Additional Stock

SHARE CAPITAL (Additional Stock Option Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Expiration term			10 years
Options granted	500,530	36,765	152,949
Exercise price of options granted	$ 5.80	$ 1.86	$ 0.72
Fair value of options granted	$ 3,974	$ 189	$ 137
Options exercised	65,411	100,441	6,000
Options cancelled	81,000
Weighted-average fair value of options granted	$ 7.94	$ 5.15	$ 1.09
Risk-free interest rate	1.28%	0.34%
Dividend yield	0.00%	0.00%
Expected volatility	362.86%	314.47%
Expected term	3 years 1 month 10 days	1 year 10 months 24 days
Intrinsic value of options exercised	$ 138	$ 943	$ 23
Average stock price	$ 9.39	$ 9.17	$ 2.63
Unrecognized compensation cost	$ 3,069
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Expiration term	10 years
Year 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised		31,765
Year 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised	41,882

SHARE CAPITAL (Schedule of Stoc

SHARE CAPITAL (Schedule of Stock Option Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares Under Options
Outstanding at beginning of year	137,855	204,931	128,952
Granted	500,530	36,765	152,949
Exercised	(65,411)	(100,441)	(6,000)
Canceled and forfeited	(85,542)	(3,400)	(70,970)
Outstanding at end of year	487,432	137,855	204,931
Exercisable at end of year	95,709	44,618	78,457
Weighted Average Exercise Price
Outstanding at beginning of year	$ 2.64	$ 2.06	$ 4.12
Granted	5.80	1.86	0.72
Exercised	3.10	0.82	0.85
Canceled and forfeited	6.64	13	5.74
Outstanding at end of year	5.12	2.64	2.06
Exercisable at end of year	$ 4.81	$ 5.90	$ 4.25

SHARE CAPITAL (Schedule of St54

SHARE CAPITAL (Schedule of Stock-based Compensation Charge) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation charge	$ 1,529	$ 173	$ 32
Cost of revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation charge	264
Research and development expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation charge	311	$ 35	$ 20
Sales and marketing expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation charge	249
General and administration expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation charge	$ 705	$ 138	$ 12

SHARE CAPITAL (Summary of Optio

SHARE CAPITAL (Summary of Options Outstanding and Exercisable) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding | shares	487,432
Weighted average remaining contractual life	4 years 14 days
Weighted average exercise price	$ 5.12
Aggregate intrinsic value | $	$ 638,097
Options exercisable | shares	95,709
Weighted average exercise price	$ 4.81
Aggregate intrinsic value | $	$ 201,301
Exercise Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 0
Range of exercise price, upper limit	$ 0.85
Options outstanding | shares	97,512
Weighted average remaining contractual life	6 years 7 months 10 days
Weighted average exercise price	$ 0.68
Aggregate intrinsic value | $	$ 442,471
Options exercisable | shares	38,687
Weighted average exercise price	$ 0.67
Aggregate intrinsic value | $	$ 175,906
Exercise Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 3
Range of exercise price, upper limit	$ 5
Options outstanding | shares	237,648
Weighted average remaining contractual life	3 years 14 days
Weighted average exercise price	$ 4.40
Aggregate intrinsic value | $	$ 195,626
Options exercisable | shares	28,000
Weighted average exercise price	$ 4.31
Aggregate intrinsic value | $	$ 25,395
Exercise Price Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 7
Range of exercise price, upper limit	$ 10
Options outstanding | shares	145,000
Weighted average remaining contractual life	4 years 1 month 2 days
Weighted average exercise price	$ 8.57
Aggregate intrinsic value | $
Options exercisable | shares	21,750
Weighted average exercise price	$ 7.92
Aggregate intrinsic value | $
Exercise Price Range Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 18.75
Range of exercise price, upper limit	$ 22
Options outstanding | shares	7,272
Weighted average remaining contractual life	1 year 3 months 29 days
Weighted average exercise price	$ 19.43
Aggregate intrinsic value | $
Options exercisable | shares	7,272
Weighted average exercise price	$ 19.43
Aggregate intrinsic value | $

SHARE CAPITAL (Summary of Nonve

SHARE CAPITAL (Summary of Nonvested Options) (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Options
Non-vested at beginning of year | shares	93,237
Granted | shares	500,530
Vested | shares	(128,294)
Forfeited | shares	(81,000)
Non-vested at end of year | shares	384,473
Weighted-average grant-date fair value
Non-vested at beginning of year | $ / shares	$ 1.58
Granted | $ / shares	7.94
Vested | $ / shares	6.35
Forfeited | $ / shares	7.62
Non-vested at end of period | $ / shares	$ 6.95

SHARE CAPITAL (Schedule of Warr

SHARE CAPITAL (Schedule of Warrant Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Number of warrants
Outstanding at beginning of year	4,000	[1]	4,000		864,590
Granted	48,055	[1]			0
Exercised	(48,055)	[1]			(844,353)
Canceled and forfeited		[1]			(16,237)
Outstanding at end of year	4,000	[1]	4,000	[1]	4,000
Exercisable at end of year	4,000	[1]	4,000		4,000
Weighted average exercise price
Outstanding at beginning of year	$ 20		$ 20		$ 0.55
Granted	0.38				0
Exercised	$ 0.38				0.16
Canceled and forfeited					16.96
Outstanding at end of year	$ 20		$ 20		20
Exercisable at end of year	$ 20		$ 20		$ 20
Fair value of warrants granted	$ 503
[1]	The weighted average remaining contractual life (years) is 0.99. The fair value of the warrants granted amounts to $503.

SHARE CAPITAL (Summary of Warra

SHARE CAPITAL (Summary of Warrants Outstanding and Exercisable) (Details)	12 Months Ended
	Dec. 31, 2015
Class of Warrant or Right [Line Items]
Weighted average remaining contractual life	11 months 26 days

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - 12 months ended Dec. 31, 2015	USD ($)	ILS (₪)	ILS (₪)
Related Party Transaction [Line Items]
Accrued management services	$ 77,000
Bank guarantee	2,900,000
Maximum [Member]
Related Party Transaction [Line Items]
Bank guarantee	$ 131,000		₪ 510,000
Chairman [Member]
Related Party Transaction [Line Items]
Monthly fee equal to a percentage of CEO cost	60.00%	60.00%
Chairman and CEO [Member]
Related Party Transaction [Line Items]
Bank guarantee	$ 256,000		₪ 1,000,000
Chairman and CEO [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Transaction amount | ₪		₪ 10,000
Chairman and CEO [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Transaction amount | ₪		₪ 1,965,000
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Monthly payment	$ 10,600
Bonus as a percentage of net profit	2.00%	2.00%
Bonus as a percentage of revenue	0.50%	0.50%

SEGMENTS, MAJOR CUSTOMERS AND60

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Operations by Geographic Area) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 28,340	$ 29,703	$ 8,822
Property and equipment, net	888	616	176
Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 25,204	$ 24,083	$ 903
Property and equipment, net
European countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,325	$ 3,901	$ 7,455
Property and equipment, net
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,420	$ 1,479	$ 33
Property and equipment, net
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 121	$ 126	$ 199
Property and equipment, net	14	16	17
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	161	50	232
Property and equipment, net	874	600	$ 159
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 109	$ 64
Property and equipment, net

SEGMENTS, MAJOR CUSTOMERS AND61

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Revenues from External Customers by Products and Services) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue from External Customer [Line Items]
Revenues	$ 28,340	$ 29,703	$ 8,822
Raw Materials and Equipment [Member]
Revenue from External Customer [Line Items]
Revenues	9,427	4,982	5,392
Maintenance, Royalties and Project Management [Member]
Revenue from External Customer [Line Items]
Revenues	$ 18,913	$ 24,721	$ 3,430

SEGMENTS, MAJOR CUSTOMERS AND62

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Major Customer Concentration) (Details) - Customer [Member] - Sales [Member]	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Customer A [Member]
Concentration Risk [Line Items]
Concentration percentage	17.00%	42.00%
Customer B [Member]
Concentration Risk [Line Items]
Concentration percentage	30.00%	19.00%
Customer C [Member]
Concentration Risk [Line Items]
Concentration percentage	30.00%	18.00%
Customer D [Member]
Concentration Risk [Line Items]
Concentration percentage	3.00%	13.00%	73.00%
Customer E [Member]
Concentration Risk [Line Items]
Concentration percentage	9.00%
Customer F [Member]
Concentration Risk [Line Items]
Concentration percentage	5.00%	5.00%

OTHER EXPENSES (Schedule of Oth

OTHER EXPENSES (Schedule of Other Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OTHER EXPENSES [Abstract]
Doubtful debt provision	$ 1,576	$ 1,225	$ 358
Acquisition related expenses	598		149
Total	$ 2,174	$ 1,225	$ 507

OTHER EXPENSES (Schedule of Bad

OTHER EXPENSES (Schedule of Bad Debt) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OTHER EXPENSES [Abstract]
Balance at beginning of period	$ 4,390	$ 2,084	$ 1,726
Provision during the period	1,576	$ 2,306	$ 358
Doubtful account classified as bad debt	$ (4,390)
Reversal of allowance for doubtful account
Balance at end of period	$ 1,576	$ 4,390	$ 2,084

FINANCIAL (EXPENSES) INCOME, 65

FINANCIAL (EXPENSES) INCOME, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financial expenses:
Interest, bank charges and fees	$ (211)	$ (165)	$ (67)
Exchange differences, net	(66)		(89)
Total financial expenses	$ (277)	$ (165)	$ (156)
Financial income:
Exchange differences, net		32
Total financial income		32
Total financial expenses, net	$ (277)	$ (133)	$ (156)

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Apr. 18, 2016	Mar. 31, 2016	Jan. 31, 2016	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2013
Subsequent Event [Line Items]
Consideration						$ 14,097
Number of ordinary shares re-purchased				774,936
Ordinary shares re-purchased, consideration					$ 3,741
Subsequent Event [Member] | Forecast [Member]
Subsequent Event [Line Items]
Number of ordinary shares re-purchased		476
Ordinary shares re-purchased, consideration		$ 2,381
Subsequent Event [Member] | Leaders in Community Alternatives [Member]
Subsequent Event [Line Items]
Ownership interests			100.00%
Consideration			$ 3,000
Subsequent Event [Member] | Safend Ltd [Member] | Forecast [Member]
Subsequent Event [Line Items]
Ownership interests		100.00%
Consideration		$ 1,500
Subsequent Event [Member] | POWA Technologies Ltd [Member] | Forecast [Member]
Subsequent Event [Line Items]
Consideration	$ 1,135