NanoVibronix (NAOV) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Registrant Name	NanoVibronix, Inc.
Entity Central Index Key	1,326,706
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	NVBXU
Entity Common Stock, Shares Outstanding		2,632,710

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 799	$ 1,614
Trade receivables	7	5
Prepaid expenses and other accounts receivable	123	86
Inventories	59	71
Total current assets	988	1,776
PROPERTY AND EQUIPMENT, NET	14	10
SEVERANCE PAY FUND	235	197
Total assets	1,237	1,983
CURRENT LIABILITIES:
Accounts payable	28	58
Other accounts payable	289	239
Total current liabilities	317	297
LONG-TERM LIABILITIES:
Warrants to purchase Common stock	1,843	1,696
Accrued severance pay	237	199
Total long-term liabilities	2,080	1,895
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY (DEFICIENCY):
Stock capital - Common stock of $ 0.001 par value - Authorized: 20,000,000 shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 2,623,710 and 2,611,328 shares at June 30, 2016 and December 31, 2015, respectively.	2	2
Additional paid-in capital	19,675	19,521
Accumulated deficit	(20,839)	(19,734)
Total stockholders' equity (deficiency)	(1,160)	(209)
Total liabilities and stockholders' equity (deficiency)	1,237	1,983
Series C Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIENCY):
Stock capital - Series C Preferred stock of $ 0.001 par value -Authorized: 5,000,000 shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 1,951,261 at June 30, 2016 and December 31, 2015, respectively	$ 2	$ 2

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	2,623,710	2,611,328
Common Stock, Shares, Outstanding	2,623,710	2,611,328
Series C Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	1,951,261	1,951,261
Preferred Stock, Shares Outstanding	1,951,261	1,951,261

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues	$ 62	$ 39	$ 119	$ 68
Cost of revenues	22	15	49	25
Gross profit	40	24	70	43
Operating expenses:
Research and development	173	115	287	210
Selling and marketing	126	25	271	134
General and administrative	197	199	442	325
Total operating expenses	496	339	1,000	669
Operating loss	456	315	930	626
Financial expense, net	144	114	156	429
Loss before taxes on income	600	429	1,086	1,055
Taxes on income	10	5	19	9
Net loss	610	434	1,105	1,064
Total comprehensive loss	$ 610	$ 434	$ 1,105	$ 1,064
Common stock and Preferred C stock basic and diluted net loss per share (Note 6) (in dollar per share)	$ (0.13)	$ (0.10)	$ (0.24)	$ (0.43)
Weighted average number of shares of Common stock and Preferred C stock used in computing basic and diluted net loss per share (Note 6) (in shares)	4,574,971	4,227,688	4,573,773	2,487,301

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY) - USD ($) $ in Thousands	Total		Preferred stock		Common stock		Additional paid-in capital		Accumulated deficit
Balance at Dec. 31, 2014	$ (5,616)		$ 0	[1]	$ 0	[1]	$ 11,234		$ (16,850)
Balance (in shares) at Dec. 31, 2014			394,232		163,580
Issuance of Common stock, net of issuance costs	511		$ 0		$ 0	[1]	511		0
Issuance of Common stock, net of issuance costs (in shares)			0		216,667
Issuance of Preferred C stock, net of issuance costs	1,964		$ 0	[1]	$ 0		1,964		0
Issuance of Preferred C stock, net of issuance costs (in shares)			833,333		0
Issuance of warrants to Common stock	446		$ 0		$ 0		446		0
Conversion of Promissory Notes into Preferred B-1 stock and Preferred C stock	1,359		$ 1		$ 0		1,358		0
Conversion of Promissory Notes into Preferred B-1 stock and Preferred C stock (in shares)			683,651		0
Conversion of Promissory Notes into Preferred B-2 stock and Preferred C stock	2,101		$ 2		$ 0		2,099		0
Conversion of Promissory Notes into Preferred B-2 stock and Preferred C stock (in shares)			1,508,001		0
Conversion of Preferred A-1, A-2, B-1 and B-2 stock into Common stock	0		$ (2)		$ 2		0		0
Conversion of Preferred A-1, A-2, B-1 and B-2 stock into Common stock (in shares)			(2,128,868)		2,131,081
Conversion of Convertible Promissory Notes into Preferred C stock	1,606		$ 1		$ 0		1,605		0
Conversion of Convertible Promissory Notes into Preferred C stock (in shares)			603,769		0
Issuance of warrants to consultant	84		$ 0		$ 0		84		0
Issuance of warrants to consultant (in shares)			0		0
Issuance of Preferred C stock to a consultant	$ 0	[1]	$ 0	[1]	$ 0		0	[1]	0
Issuance of Preferred C stock to a consultant (in shares)	0		57,143
Issuance of Common stock to a consultant	$ 0		$ 0		$ 0	[1]	0	[1]	0
Issuance of Common stock to a consultant (in shares)			0		100,000
Stock-based compensation related to options granted to consultants and employees	220		$ 0		$ 0		220		0
Total comprehensive loss	(2,884)		0		0		0		(2,884)
Balance at Dec. 31, 2015	(209)		$ 2		$ 2		19,521		(19,734)
Balance (in shares) at Dec. 31, 2015			1,951,261		2,611,328
Issuance of Common Stock upon exercise of options	33		$ 0		$ 0	[1]	33		0
Issuance of Common Stock upon exercise of options (in shares)			0		12,382
Stock-based compensation related to options granted to consultants and employees	121		$ 0		$ 0		121		0
Total comprehensive loss	(1,105)		0		0		0		(1,105)
Balance at Jun. 30, 2016	$ (1,160)		$ 2		$ 2		$ 19,675		$ (20,839)
Balance (in shares) at Jun. 30, 2016			1,951,261		2,623,710
[1]	Represents amount less than $1.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (1,105)	$ (1,064)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	4	5
Stock-based compensation	121	81
Benefit component of Promissory Notes	0	384
Valuation of warrants to purchase Common stock	147	(36)
Decrease (increase) in trade receivables	(2)	7
Increase in prepaid expenses and other accounts receivable	(37)	(79)
Decrease (increase) in inventories	12	(18)
Increase (decrease) in accounts payable	(30)	(62)
Increase (decrease) in other accounts payable	50	(118)
Increase (decrease) in accrued severance pay, net	0	(1)
Accrued interest on Promissory Notes	0	65
Net cash used in operating activities	(840)	(836)
Cash flows from investment activities:
Purchase of property and equipment	(8)	(1)
Net cash used in investment activities	(8)	(1)
Cash flows from financing activities:
Proceeds from issuance of Common stock, Preferred stock and warrants, net of issuance costs	0	3,005
Proceeds from exercise of options	33	0
Net cash provided by financing activities	33	3,005
Increase (decrease) in cash and cash equivalents	(815)	2,168
Cash and cash equivalents at the beginning of the period	1,614	90
Cash and cash equivalents at the end of the period	799	2,258
Supplemental information and disclosure of non-cash financing transactions:
Conversion of Promissory Notes into Preferred B-1, B-2 stock and Preferred C stock	$ 0	$ 5,066

GENERAL

GENERAL	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1:- GENERAL a. NanoVibronix, Inc. ("the Company"), a U.S. (Delaware) corporation, commenced operations on October 20, 2003 and is a medical device company focusing on noninvasive biological response-activating devices that target wound healing and pain therapy and can be administered at home, without the assistance of medical professionals. b. The Company’s ability to continue to operate is dependent mainly on its ability to successfully market and sell its products and the receipt of additional financing until profitability is achieved. The Company has incurred losses in the amount of $ 1,105 20,839 840 c. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position and results of operations of the Company. These consolidated financial statements and notes thereto are unaudited and should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, as found in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 30, 2016. The balance sheet for December 31, 2015 was derived from the Company’s audited financial statements for the year ended December 31, 2015. The results of operations for the six and three months ended June 30, 2016 are not necessarily indicative of results that could be expected for the entire fiscal year. d. On February 9, 2015, the Company filed a Registration Statement on Form 10 under the Securities Exchange Act of 1934, as amended, to register its Common stock under Section 12(g) of that act. The Form 10 was effective on April 10, 2015.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2015 are applied consistently in these financial statements. Recent accounting pronouncements: In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements.

UNAUDITED INTERIM FINANCIAL STA

UNAUDITED INTERIM FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Financial Statements [Text Block]	NOTE 3:- UNAUDITED INTERIM FINANCIAL STATEMENTS The accompanying unaudited consolidated financial statements as of June 30, 2016 have been prepared in accordance with the U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s consolidated financial position as of June 30, 2016 and the Company’s consolidated results of operation and the consolidated cash flows for the six and three months ended June 30, 2016.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure [Text Block]	NOTE 4:- FAIR VALUE MEASUREMENTS ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value. Level 1 - quoted prices in active markets for identical assets or liabilities; Level 2 - inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. During February 2013, the Company signed a convertible Promissory Notes agreement (the “Agreement”) pursuant to which the Company issued secured convertible Promissory Notes (the “Notes”) to certain investors on February 5, 2013. On each of March 28, 2013, June 3, 2013, August 5, 2013, October 7, 2013, December 9, 2013, February 6, 2014, April 1, 2014, May 15, 2014, June 16, 2014, August 7, 2014, September 7, 2014, October 13, 2014, November 19, 2014 and December 11, 2014, the Agreement and the Notes were amended and restated to increase the principal amount by $ 100 37,594 2.66 In April 2015, the holders of the Notes elected to convert the outstanding principal and interest thereunder into shares of the Company’s series C preferred stock. On that date, an aggregate principal balance of $ 1,500 106 603,769 The Company measures the warrants at fair value by applying the Black-Scholes option pricing model in each reporting period until they are exercised or expired, with changes in fair value being recognized in the Company’s consolidated statement of comprehensive loss as financial income or expense. June 30, 2016 Dividend yield (1) 0% Expected volatility (2) 64.1-64.7% Risk-free interest (3) 0.58%-0.71% Expected term (years) (4) 1.4-3.3 (1) Dividend yield - was based on the fact that the Company has not paid dividends to its stockholders in the past and does not expect to pay dividends to its stockholders in the future. (2) Expected volatility - was calculated based on actual historical stock price movements of companies in the same industry over a term that is equivalent to the expected term of the warrants. (3) Risk-free interest – was based on yield rate of non-index linked U.S. Federal Reserve treasury stock. (4) Expected term - was based on the maturity date of the warrants. Fair value measurement using significant unobservable inputs (Level 3): Fair value of Balance at January 1, 2016 $ 1,696 Change in fair value of warrants 147 Balance at June 30, 2016 $ 1,843 In addition, the Company’s financial instruments also include cash and cash equivalents, trade receivables, prepaid expenses and other accounts receivable, accounts payable and other accounts payable. The fair value of these financial instruments was not materially different from their carrying values as of June 30, 2016 due to the short-term maturities of such instruments.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 5:- COMMITMENTS AND CONTINGENT LIABILITIES a. The Company leases office facilities and motor vehicles under operating leases, which expire on various dates, the latest of which is 2017. Year ended December 31, Operating leases 2016 $ 18 2017 15 Total $ 33 Rent and related expenses were $ 15 27 7 15 Motor vehicle leases, and related expenses were $ 5 11 3 5 b. Royalties to the Office of the Chief Scientist ("the OCS"): Under the Company's subsidiary research and development agreements with the OCS and pursuant to applicable laws, the Company is required to pay royalties at the rate of 3 3.5 As of June 30, 2016, the Company has a contingent obligation to pay royalties in the principal amount of approximately $ 477

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	NOTE 6:- LOSS PER SHARE All outstanding share options and warrants for the six months and three months ended June 30, 2016 and for the six months and three months ended June 30, 2015 have been excluded from the calculation of the diluted net loss per share because all such securities are anti-dilutive for all periods presented. Retrospective adjustment of net loss per share information The Company has shares of Series C Preferred Stock outstanding which were issued in early 2015. The specific terms and conditions of the Series C Preferred Shares are disclosed in Note 10 to the Company’s December 31, 2015 audited consolidated financial statements which should be read along with these unaudited interim consolidated financial statements. When preparing its consolidated financial statements for the year ended December 31, 2015, its interim consolidated financial statements for the respective quarters and year to date periods contained during 2015, and also the interim consolidated financial statements for the quarter ended March 31, 2016, the Company considered these convertible security to be a common stock equivalents but excluded them from its dilutive earnings (loss) per share computation as it concluded that the securities would be anti-dilutive in nature if or when converted. However, upon further analysis and when preparing it interim consolidated financial statements for the second quarter of 2016, the Company has concluded that these securities participate equally with common shares in the profits, losses and liquidation values of the Company, and while limited in voting they can be readily converted into voting common shares at any time. The Company has concluded that they are participating securities that should have been included as a component of both basic and dilutive earnings (loss) per share for all periods previously presented. Quarter ended Quarter ended Six months ended Quarter ended Nine months ended Year end Quarter ended Net loss 630 434 1,064 1,039 2,103 2,884 495 Weighted average common shares as previously reported 281,543 2,388,220 1,336,085 2,611,328 1,767,417 1,978,395 2,621,191 Weighted average Series C Preferred shares outstanding 460,127 1,839,468 1,151,216 1,951,261 1,421,819 1,557,953 1,951,261 Basic and dilutive weighted average shares outstanding, as adjusted 741,670 4,227,688 2,487,301 4,562,589 3,189,236 3,536,348 4,572,452 Basic and dilutive loss per share, as adjusted -0.85 -0.10 -0.43 -0.23 -0.66 -0.82 -0.11 The Company has retrospectively adjusted for the foregoing matter in the accompanying interim consolidated financial statements for the six month periods ended June 30, 2016 and 2015.

GEOGRAPHIC INFORMATION AND MAJO

GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 7:- GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA Summary information about geographic areas: Six months ended Three months ended 2016 2015 2016 2015 United States $ 36 $ 30 $ 17 $ 11 Europe 38 8 17 5 Israel 7 5 6 4 India 9 7 3 4 Rest of the world 29 18 19 15 $ 119 $ 68 $ 62 $ 39 During the six and three month period ended June 30, 2016, revenues from distributors accounted for 33 27 24 26 The Company's long-lived assets are all located in Israel.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 8:- SUBSEQUENT EVENTS The Company evaluates events or transactions that occur after the balance sheet date but prior to the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For its interim consolidated financial statements as of June 30, 2016 (unaudited) and for the three months period then ended (unaudited), the Company evaluated subsequent events through August 15, 2016 the date that the consolidated financial statements were issued. In July 2016, the Company issued 9,000

SIGNIFICANT ACCOUNTING POLICI15

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recent accounting pronouncements: In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	In estimating the warrants' fair value, the Company used the following assumptions: June 30, 2016 Dividend yield (1) 0% Expected volatility (2) 64.1-64.7% Risk-free interest (3) 0.58%-0.71% Expected term (years) (4) 1.4-3.3 (1) Dividend yield - was based on the fact that the Company has not paid dividends to its stockholders in the past and does not expect to pay dividends to its stockholders in the future. (2) Expected volatility - was calculated based on actual historical stock price movements of companies in the same industry over a term that is equivalent to the expected term of the warrants. (3) Risk-free interest – was based on yield rate of non-index linked U.S. Federal Reserve treasury stock. (4) Expected term - was based on the maturity date of the warrants.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Fair value measurement using significant unobservable inputs (Level 3): Fair value of Balance at January 1, 2016 $ 1,696 Change in fair value of warrants 147 Balance at June 30, 2016 $ 1,843

COMMITMENTS AND CONTINGENT LI17

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases of Lessee Disclosure [Table Text Block]	Future minimum lease commitments under non-cancelable operating lease agreements as of June 30, 2016 are as follows: Year ended December 31, Operating leases 2016 $ 18 2017 15 Total $ 33

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Adjusted figures are presented below to reflect this revised conclusion. Quarter ended Quarter ended Six months ended Quarter ended Nine months ended Year end Quarter ended Net loss 630 434 1,064 1,039 2,103 2,884 495 Weighted average common shares as previously reported 281,543 2,388,220 1,336,085 2,611,328 1,767,417 1,978,395 2,621,191 Weighted average Series C Preferred shares outstanding 460,127 1,839,468 1,151,216 1,951,261 1,421,819 1,557,953 1,951,261 Basic and dilutive weighted average shares outstanding, as adjusted 741,670 4,227,688 2,487,301 4,562,589 3,189,236 3,536,348 4,572,452 Basic and dilutive loss per share, as adjusted -0.85 -0.10 -0.43 -0.23 -0.66 -0.82 -0.11

GEOGRAPHIC INFORMATION AND MA19

GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	The Company manages its business on the basis of one reportable segment, and derives revenues from selling its products directly to patients as well as through distributor agreements. The following is a summary of revenues within geographic areas: Six months ended Three months ended 2016 2015 2016 2015 United States $ 36 $ 30 $ 17 $ 11 Europe 38 8 17 5 Israel 7 5 6 4 India 9 7 3 4 Rest of the world 29 18 19 15 $ 119 $ 68 $ 62 $ 39

GENERAL (Details Textual)

GENERAL (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net loss	$ (610)	$ (434)	$ (1,105)	$ (1,064)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations			(840)	$ (836)
Retained Earnings (Accumulated Deficit)	$ (20,839)		$ (20,839)		$ (19,734)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Dividend yield	0.00%	[1]
Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected volatility	64.70%	[2]
Risk-free interest	0.71%	[3]
Expected term (years)	3 years 3 months 18 days	[4]
Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected volatility	64.10%	[2]
Risk-free interest	0.58%	[3]
Expected term (years)	1 year 4 months 24 days	[4]
[1]	Dividend yield - was based on the fact that the Company has not paid dividends to its stockholders in the past and does not expect to pay dividends to its stockholders in the future.
[2]	Expected volatility - was calculated based on actual historical stock price movements of companies in the same industry over a term that is equivalent to the expected term of the warrants.
[3]	Risk-free interest – was based on yield rate of non-index linked U.S. Federal Reserve treasury stock.
[4]	Expected term - was based on the maturity date of the warrants.

FAIR VALUE MEASUREMENTS (Deta22

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of warrants	$ (147)	$ 36
Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at January 1, 2016	1,696
Change in fair value of warrants	147
Balance at June 30, 2016	$ 1,843

FAIR VALUE MEASUREMENTS (Deta23

FAIR VALUE MEASUREMENTS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	23 Months Ended
	Apr. 30, 2015	Dec. 31, 2014	Feb. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			37,594
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 2.66
Proceeds From Issuance Of Warrants And Notes		$ 100
Series C Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	603,769
Debt Instrument, Annual Principal Payment	$ 1,500
Debt Instrument, Increase, Accrued Interest	$ 106

COMMITMENTS AND CONTINGENT LI24

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands	Jun. 30, 2016USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,016	$ 18
2,017	15
Total	$ 33

COMMITMENTS AND CONTINGENT LI25

COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating Leased Assets [Line Items]
Contingent Obligation to Royalty	$ 477		$ 477
Motor Vehicle Leases And Related Expenses [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	3	$ 5	5	$ 11
Rent And Related Expenses [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 7	$ 15	$ 15	$ 27
Maximum [Member]
Operating Leased Assets [Line Items]
Percentage of Royalty on sales			3.50%
Minimum [Member]
Operating Leased Assets [Line Items]
Percentage of Royalty on sales			3.00%

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					6 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2015
Net loss		$ 495	$ 1,039	$ 434	$ 630		$ 1,064	$ 2,103	$ 2,884
Basic and dilutive weighted average shares outstanding, as adjusted	4,574,971	4,572,452	4,562,589	4,227,688	741,670	4,573,773	2,487,301	3,189,236	3,536,348
Basic and dilutive loss per share, as adjusted	$ (0.13)	$ (0.11)	$ (0.23)	$ (0.10)	$ (0.85)	$ (0.24)	$ (0.43)	$ (0.66)	$ (0.82)
Scenario, Previously Reported [Member]
Basic and dilutive weighted average shares outstanding, as adjusted		2,621,191	2,611,328	2,388,220	281,543		1,336,085	1,767,417	1,978,395
Scenario, Adjustment [Member]
Basic and dilutive weighted average shares outstanding, as adjusted		1,951,261	1,951,261	1,839,468	460,127		1,151,216	1,421,819	1,557,953

GEOGRAPHIC INFORMATION AND MA27

GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 62	$ 39	$ 119	$ 68
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17	11	36	30
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17	5	38	8
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6	4	7	5
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3	4	9	7
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 19	$ 15	$ 29	$ 18

GEOGRAPHIC INFORMATION AND MA28

GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration Risk, Percentage	27.00%	26.00%	33.00%	24.00%

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual)	1 Months Ended
	Jul. 31, 2016shares
Subsequent Event [Member] | Restricted Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Issued for Services	9,000