InspireMD (NSPR) 10-Q 12 Nov 13 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Entity Registrant Name	'InspireMD, Inc.	'
Entity Central Index Key	'0001433607	'
Current Fiscal Year End Date	'--06-30	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	34,512,568

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS:	'	'
Cash and cash equivalents	$11,440	$14,820
Restricted cash	93	93
Accounts receivable:	'	'
Trade	2,128	1,739
Other	447	388
Prepaid expenses	144	272
Inventory	1,392	1,593
Total current assets	15,644	18,905
PROPERTY, PLANT AND EQUIPMENT, net	591	550
NON-CURRENT ASSETS:	'	'
Funds in respect of employees rights upon retirement	436	406
Long term prepaid expenses	143	'
Royalties buyout	873	884
Total other non-current assets	1,452	1,290
Total assets	17,687	20,745
Accounts payable and accruals:	'	'
Trade	850	831
Other	3,016	3,028
Advanced payment from customers	176	174
Deferred revenues	'	10
Total current liabilities	4,042	4,043
LONG-TERM LIABILITIES:	'	'
Liability for employees rights upon retirement	637	600
Total long-term liabilities	637	600
COMMITMENTS AND CONTINGENT LIABILITIES (Note 9)	'	'
Total liabilities	4,679	4,643
EQUITY :	'	'
Common stock, par value $0.0001 per share; 125,000,000 shares authorized; 33,965,950 and 33,888,845 shares issued and outstanding at September 30, 2013 and June 30, 2013, respectively	3	3
Additional paid-in capital	89,930	89,079
Accumulated deficit	-76,925	-72,980
Total equity	13,008	16,102
Total liabilities and equity	$17,687	$20,745

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Jun. 30, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]	'	'
Common stock, par value per share	$0.00	$0.00
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	33,965,950	33,888,845
Common stock, shares outstanding	33,965,950	33,888,845

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]	'	'
REVENUES	$1,552	$509
COST OF REVENUES	750	230
GROSS PROFIT	802	279
OPERATING EXPENSES:	'	'
Research and development	1,544	946
Selling and marketing	830	402
General and administrative (including $795 and $819 of share-based compensation for the 3 months ended September 30, 2013 and 2012, respectively)	2,313	2,212
Total operating expenses	4,687	3,560
LOSS FROM OPERATIONS	-3,885	-3,281
FINANCIAL EXPENSES, net:	'	'
Interest on convertible loan and revaluation of contingently redeemable warrants and others	77	4,213
Other financial expenses (income)	-20	5
LOSS BEFORE INCOME TAXES	-3,942	-7,499
TAX EXPENSES	3	7
NET LOSS	($3,945)	($7,506)
NET LOSS PER SHARE - basic and diluted	($0.12)	($0.44)
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK USED IN COMPUTING NET LOSS PER SHARE - basic and diluted	33,959,773	17,074,235

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (General and Administrative Expense [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
General and Administrative Expense [Member]	'	'
Allocation of share-based compensation expense:	'	'
Total share-based compensation expense	$795	$819

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($3,945)	($7,506)
Adjustments required to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	50	34
Change in liability for employees right upon retirement	37	40
Financial expenses	75	3,984
Share-based compensation expenses	851	931
Changes in operating asset and liability items:	'	'
Decrease (increase) in prepaid expenses	-15	37
Decrease (increase) in trade receivables	-389	746
Increase in other receivables	-59	-144
Decrease in inventory on consignment	'	41
Decrease (increase) in inventory on hand	201	-332
Increase in trade payables	19	115
Decrease in deferred revenues	-10	'
Decrease in other payables and advance payment from customers	-87	-302
Net cash used in operating activities	-3,272	-2,356
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchase of property, plant and equipment	-80	-35
Amounts funded in respect of employee rights upon retirement, net	-30	-22
Net cash used in investing activities	-110	-57
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Exercise of options and warrants	'	432
Net cash provided by financing activities	'	432
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	2	-6
DECREASE IN CASH AND CASH EQUIVALENTS	-3,380	-1,987
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	14,820	10,284
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	$11,440	$8,297

DESCRIPTION_OF_BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2013
DESCRIPTION OF BUSINESS [Abstract]	'
DESCRIPTION OF BUSINESS	'
	NOTE 1 - DESCRIPTION OF BUSINESS
	InspireMD, Inc., a Delaware corporation (the "Company"), together with its subsidiaries, is a medical device company focused on the development and commercialization of its proprietary stent platform technology, MGuard™. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. The Company's initial products are marketed for use in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). The Company markets its products through distributors in international markets, mainly in Europe and Latin America.
	Due to the Security and Loan Agreement as described in Note 12, the Company believes that it has sufficient cash to continue its operations into 2015. However, depending on the operating results in 2014, the Company may need to obtain additional cash in 2015 to continue to fund its operations.

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2013
BASIS OF PRESENTATION [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 2 - BASIS OF PRESENTATION
	The accompanying unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements. In the opinion of management, the 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 June 30, 2013, as found in the Company Report on Form 10-K, filed with the Securities and Exchange Commission on September 17, 2013. The balance sheet for June 30, 2013 was derived from the Company's audited financial statements for the year ended June 30, 2013. The results of operations for the three months ended September 30, 2013 are not necessarily indicative of results that could be expected for the entire fiscal year.

EQUITY

EQUITY	3 Months Ended
	Sep. 30, 2013
EQUITY [Abstract]	'
EQUITY	'
	NOTE 3- EQUITY:
		a.	During the three months ended September 30, 2013, the Company issued a total of 77,103 shares of its common stock in connection with the exercise of 77,103 options, for consideration of less than $1,000.
		b.	During the three months ended September 30, 2013, a director of the Company was granted options to purchase shares of the Company's common stock. See Note 9.

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	3 Months Ended
	Sep. 30, 2013
NET LOSS PER SHARE [Abstract]	'
NET LOSS PER SHARE	'
	NOTE 4- NET LOSS PER SHARE:
	Basic and diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share excludes potential share issuances of common stock upon the exercise of share options, warrants, convertible loans and restricted stock as the effect is anti-dilutive.
	For the three month periods ended September 30, 2013 and 2012, all shares of common stock underlying outstanding options, warrants, convertible loans and restricted stock have been excluded from the calculation of the diluted loss per share since their effect was anti-dilutive. The total number of shares of common stock related to outstanding options, warrants, convertible loans and restricted stock excluded from the calculations of diluted loss per share were 8,180,669 and 8,047,714 for the three month periods ended September 30, 2013 and 2012, respectively.

FAIR_VALUE_MEASUREMENT

FAIR VALUE MEASUREMENT	3 Months Ended
	Sep. 30, 2013
FAIR VALUE MEASUREMENT [Abstract]	'
FAIR VALUE MEASUREMENT	'
	NOTE 5 - FAIR VALUE MEASURMENT:
	Financial Assets and Liabilities Not Measured Using Fair Value Method
	The carrying amounts of financial instruments included in working capital approximate their fair value either because these amounts are presented at fair value or due to the relatively short-term maturities of such instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. As of September 30, 2013, the carrying amount of cash and cash equivalents, accounts receivable, other current assets and accounts payables and accrued expenses approximates their fair values due to the short-term maturities of these instruments.

INVENTORY

INVENTORY	3 Months Ended
	Sep. 30, 2013
INVENTORY [Abstract]	'
INVENTORY	'
	NOTE 6 - INVENTORY:
		September 30,		June 30,
		2013		2013
		($ in thousands)
	Finished goods	$	551	$	364
	Work in process		707		1,111
	Raw materials and supplies		134		118
		$	1,392	$	1,593
		As of September 30, 2013 and June 30, 2013, the Company had provisions for slow moving inventory of approximately $356,000 and $379,000, respectively.

ACCOUNTS_PAYABLE_AND_ACCRUALS_

ACCOUNTS PAYABLE AND ACCRUALS - OTHER	3 Months Ended
	Sep. 30, 2013
ACCOUNTS PAYABLE AND ACCRUALS - OTHER [Abstract]	'
ACCOUNTS PAYABLE AND ACCRUALS - OTHER	'
	NOTE 7 - ACCOUNTS PAYABLE AND ACCRUALS - OTHER:
		September 30,		June 30,
		2013		2013
		($ in thousands)
	Employees and employee institutions	$	729	$	626
	Accrued vacation and recreation pay		305		313
	Accrued clinical trial expenses		760		513
	Provision for sales commissions		148		205
	Accrued expenses		1,051		1,343
	Other		23		28
		$	3,016	$	3,028

FINANCIAL_EXPENSES_NET

FINANCIAL EXPENSES, NET	3 Months Ended
	Sep. 30, 2013
FINANCIAL EXPENSES, NET [Abstract]	'
FINANCIAL EXPENSES, NET	'
	NOTE 8 - FINANCIAL EXPENSES, NET:
		3 Months ended
		September 30,
		2013			2012
		($ in thousands)
	Bank commissions	$	11		$	9
	Interest income		(2	)		(9	)
	Exchange rate differences		(29	)		5
	Interest expense (including debt issuance costs)					988
	Change in fair value of warrants, embedded derivatives and other		77			3,225
		$	57		$	4,218

RELATED_PARTIES

RELATED PARTIES	3 Months Ended
	Sep. 30, 2013
RELATED PARTIES [Abstract]	'
RELATED PARTIES	'
	NOTE 9 - RELATED PARTIES:
	On September 3, 2013, the board of directors of the Company appointed a new director with a term expiring at the Company's 2014 annual meeting of stockholders.
	In connection with his appointment, the director was granted an option to purchase 125,000 shares of the Company's common stock at an exercise price of $2.12 per share (the "$2.12 Option"). The $2.12 Option is exercisable in three equal annual installments beginning on the one-year anniversary of the date of grant.
	In calculating the fair value of the $2.12 Option, the Company used the following assumptions: dividend yield of 0% and expected term of 5.5-6.5 years; expected volatility of 68%-69% ; and risk-free interest rate of 1.84%- 2.15%. The option has a term of 10 years from the date of grant, and the fair value of the option on the date of grant, using the Black-Scholes option-pricing model, was approximately $164,000.

COMMITMENT_AND_CONTINGENT_LIAB

COMMITMENT AND CONTINGENT LIABILITIES	3 Months Ended
	Sep. 30, 2013
COMMITMENT AND CONTINGENT LIABILITIES [Abstract]	'
COMMITMENT AND CONTINGENT LIABILITIES	'
	NOTE 10 - COMMITMENT AND CONTINGENT LIABILITIES:
		a.	Commitment
	In March 2010, the Company entered into a license agreement (the "License Agreement") to use a stent design ("MGuard Prime") developed by a company owned by a former director of InspireMD Ltd. (the "Licensor"). Pursuant to the agreement, the Licensor was entitled to receive royalty payments of 7% of net sales outside the United States and, for sales within the U.S., royalty payments as follows: 7% of the first $10,000,000 in net sales and 10% of net sales exceeding $10,000,000.
	On October 20, 2012, the Company, InspireMD Ltd. and the Licensor entered into an amendment (the "First Amendment") to the License Agreement, pursuant to which, amongst other things, the Licensor agreed to reduce the royalty owed with respect to sales of MGuard Prime to 2.9% of all net sales both inside and outside the U.S. in exchange for (i) InspireMD Ltd. waiving $85,000 in regulatory fees for the CE Mark that were owed by the Licensor to InspireMD Ltd., (ii) InspireMD Ltd. making full payment of royalties in the amount of $205,587 due to the Licensor as of September 30, 2012 and (iii) 215,000 shares of the Company's common stock, that were valued at the closing price of the common stock on October 19, 2012 at $8.20 per share. The total amount paid to the Licensor was valued at $1,848,000, inclusive of the shares issued as well as the $85,000 waiver, and was allocated in the consolidated financial statements for the year ended June 30, 2013 as follows: approximately $930,000 was allocated to royalties' buyout and approximately $918,000 was allocated to "research and development" expenses based on the MGuard Prime registration status in various territories. The royalties' buyout amortization is calculated using the economic pattern of the Company's estimated future revenues over the estimated useful life of the royalties' buyout. The amortization is recorded in "Cost of Revenues" in the consolidated statements of operations.
	On August 22, 2013, the Company, InspireMD Ltd. and the Licensor entered into an amendment to the License Agreement (the "Second Amendment"), pursuant to which the Company and the Licensor agreed to amend the royalty fee from 2.9% of all net sales during the term of the agreement to (i) 2% of the first $10.56 million of net sales from July 1, 2013 through June 30, 2015, provided that the Company makes an advance royalty payment of $192,000 on the date of the amendment, (ii) 2.5% of net sales in excess of $10.56 million from July 1, 2013 through June 30, 2015, payable within 45 days of June 30, 2015, and (iii) 2.9% of all net sales beginning on July 1, 2015. The above referenced advance royalty payment has been included in long term prepaid expenses.
		b.	Litigation
	In July 2012, a purported assignee of options in InspireMD Ltd. submitted a statement of claim against the Company, InspireMD Ltd., and the Company's former CEO and President for a declaratory and enforcement order that it is entitled to options to purchase 83,637 shares of the Company's common stock at an exercise price of $0.76 per share. In January 2013, the defendants submitted a motion to dismiss the claim or move it to the Economic Department to the Tel Aviv District Court due to the lack of material jurisdiction of the court where the claim was filed. The court accepted such motion and transferred the case to the Economic Department to the Tel Aviv District Court. In April 2013, the Company's former CEO and President submitted a motion to dismiss the claim against them on the grounds that the letter of claims does not present any legal case against any of them. The first hearing in the case was held on April 23, 2013, during which the judge suggested the parties try to solve the dispute through mediation. On July 3, 2013, the parties held a first mediation meeting. After considering the views of its legal counsel as well as other factors, the Company's management believes that a loss to the Company is neither probable nor in an amount or range of loss that is estimable.
	In December 2012, a former service provider of InspireMD GmbH filed a claim with the Labor Court in Buenos Aires, Argentina in the amount of $193,378 plus interest (6% in dollars or 18.5% in pesos), social benefits, legal expenses and fees (25% of the award) against InspireMD Ltd. and InspireMD GmbH. The court dismissed the claim based on a lack of jurisdiction. Following this dismissal, the plaintiff appealed the ruling. While the Company believes that this claim is wholly without merit, the Company's management, after considering the views of its legal counsel as well as other factors, recorded a provision of $250,000 in the financial statements for the quarter ended December 31, 2012. The Company's management estimates that the ultimate resolution of this matter could result in a loss of up to $80,000 in excess of the amount accrued.
		c.	Liens and pledges
	As of September 30, 2013, the Company had fixed liens aggregating $93,000 to Bank Mizrahi in connection with the Company's credit cards.

ENTITY_WIDE_DISCLOSURE

ENTITY WIDE DISCLOSURE	3 Months Ended
	Sep. 30, 2013
ENTITY WIDE DISCLOSURE [Abstract]	'
ENTITY WIDE DISCLOSURE	'
	NOTE 11 - ENTITY WIDE DISCLOSURE:
	The Company operates in one reportable segment.
	Disaggregated financial data is provided below as follows:
	(1) Revenues by geographic area and
	(2) Revenues from principal customers.
	Revenues are attributed to geographic areas based on the location of the customers. The following is a summary of revenues by geographic areas:
		3 months ended
		September 30,
		2013			2012
		($ in thousands)
	Russia	$	454		$	24
	Spain		162			101
	South Africa		59			57
	Israel		57			75
	Other		820			252
		$	1,552		$	509
	The following is a summary of revenues by principal customers:
		3 months ended
		September 30,
		2013			2012
	Customer A		29	%		5	%
	Customer B		10	%		20	%
	Customer C		4	%		11	%
	Customer D		4	%		15	%
		All tangible long-lived assets are located in Israel.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 12 - SUBSEQUENT EVENTS:
		a.	Rights agreement
	On October 22, 2013, the Board adopted a stockholder rights plan (the "Rights Plan") and declared a dividend distribution to the Company's stockholders of record at the close of business on November 15, 2013, of one preferred stock purchase right (a "Right") for each outstanding share of common stock that will entitle the registered holder to purchase from the Company one one-thousandth (1/1,000) of a share of Series A Preferred Stock at a purchase price of $21.00 per one one-thousandth (1/1,000) of a share, subject to adjustment.
	Initially, the Rights will not be exercisable and will trade with the Company's shares of common stock.
	Under the Rights Plan, the Rights will generally become exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company's common stock in a transaction not approved by the Company's Board.  In that situation, each holder of a Right (other than the acquiring person, whose Rights will become void and will not be exercisable) will be entitled to purchase, at the then-current exercise price, additional shares of common stock having a value of twice the exercise price of the Right.  In addition, if the Company is acquired in a merger or other business combination after an unapproved party acquires more than 15% of the Company's common stock, each holder of a Right would then be entitled to purchase at the then-current exercise price, shares of the acquiring company's stock, having a value of twice the exercise price of the Right.
	The Company's Board may redeem the Rights for a nominal amount at any time before an event that causes the Rights to become exercisable.  Under the terms of the Rights Plan, it will expire on October 22, 2014.
		b.	Security and Loan Agreement
	On October 23, 2013, the Company and InspireMD Ltd. entered into a Loan and Security Agreement (the "Loan and Security Agreement"), pursuant to which a lender made a term loan to the Company and InspireMD Ltd. in the aggregate amount of $10 million (the "Loan"). The interest on the Loan is determined on a daily basis at a variable rate equal to the greater of either (i) 10.5%, or (ii) the sum of (A) 10.5%, plus (B) the prime rate minus 5.5%. Payments under the Loan and Security Agreement are for the interest portion only for 9 months, followed by 30 monthly payments of principal and interest through the scheduled maturity date on February 1, 2017. The Company and InspireMD Ltd.'s obligations under the Loan and Security Agreement are secured by a grant of a security interest in all of the Company's and InspireMD Ltd.'s assets (other than their intellectual property).
	The Company is permitted to prepay all or a portion of the Loan. However, any prepayments of the Loan will be subject to a penalty of (i) 2%, if the prepayment occurs within 12 months of the Loan being requested by the Company and InspireMD Ltd. (the "Advance Date"), (ii) 1%, if the prepayment occurs between 12 and 24 months after the Advance Date, and (iii) 0.5%, if the prepayment occurs more than 24 months after the Advance Date. The Company and InspireMD Ltd. will also pay the lender an aggregate end of term charge of $500,000 when the Loan is paid in full or matures.
	The Loan and Security Agreement contains a variety of standard events of default, as well as the following events: (i) the occurrence of a material adverse effect (as defined in the Loan and Security Agreement), (ii) breach of covenants and (iii) finding of a judgment against the Company or InspireMD Ltd. of at least $1 million.
	The Loan and Security Agreement contains standard, as well as the following, covenants: (i) a prohibition on the incurrence of additional indebtedness or liens, subject to certain exemptions, (ii) a prohibition on making investments in third parties and (iii) a prohibition on entering a change of control transaction.
	The lender has the right to invest up to $1 million in any future financing of the Company or InspireMD Ltd. that is in the aggregate amount of at least $10 million.
		c.	Warrant Agreement
	On October 23, 2013, in connection with the Loan and Security Agreement, the Company issued the lender a warrant to purchase 168,351 shares of common stock at a per share exercise price of $2.97 (the "Warrant"). The Warrant is immediately exercisable and has a five year term. The Warrant may also be exercised on a cashless basis. The exercise price of the Warrant and the number of shares issuable upon exercise of the Warrant are subject to adjustments for stock splits, combinations or similar events.
	Upon the occurrence of a transaction involving a change of control of the Company in which the consideration is either all cash or securities that are either registered for sale on an exchange or quotation system or otherwise unrestricted, the Warrant, to the extent not previously exercised, may be exchanged, at the holder's request, for the consideration the holder would have received, less the exercise price, had the holder exercised the Warrant immediately prior to the change of control. For all other changes of control of the Company, the Warrant will be assumed by the successor or surviving entity with similar rights to the Warrant as if it had been exercised immediately prior to the change of control. The Warrant contains piggyback registration rights for the shares of common stock underlying the Warrant.
		d.	Security Documents
	On October 23, 2013, InspireMD Ltd. issued the lender a Fixed Charge Debenture and a Floating Charge Debenture (collectively, the "Israeli Security Agreements") in order to create a security interest in all the assets and property of InspireMD Ltd. securing the Company's and InspireMD Ltd.'s obligations under the Loan and Security Agreement. In addition, on October 23, 2013, the Company entered into a Deposit Account Control Agreement with the lender and Bank Leumi USA (the "Deposit Account Control Agreement") in order to perfect the lender's security interest in the Company's bank account. Pursuant to the Loan and Security Agreement, the Israeli Security Agreements and the Deposit Account Control Agreement, the Company's obligations to the lender are secured by a first priority perfected security interest in all of the assets and properties of the Company and InspireMD Ltd., other than the intellectual property of the Company and InspireMD Ltd. In addition, the Company is obligated to enter into an account control agreement for its account with Bank of America Merrill Lynch within 60 days of October 23, 2013.

INVENTORY_Tables

INVENTORY (Tables)	3 Months Ended
	Sep. 30, 2013
INVENTORY [Abstract]	'
Schedule of Inventory	'
		September 30,		June 30,
		2013		2013
		($ in thousands)
	Finished goods	$	551	$	364
	Work in process		707		1,111
	Raw materials and supplies		134		118
		$	1,392	$	1,593

ACCOUNTS_PAYABLE_AND_ACCRUALS_1

ACCOUNTS PAYABLE AND ACCRUALS - OTHER (Tables)	3 Months Ended
	Sep. 30, 2013
ACCOUNTS PAYABLE AND ACCRUALS - OTHER [Abstract]	'
Schedule of Accounts Payable and Accruals	'
		September 30,		June 30,
		2013		2013
		($ in thousands)
	Employees and employee institutions	$	729	$	626
	Accrued vacation and recreation pay		305		313
	Accrued clinical trial expenses		760		513
	Provision for sales commissions		148		205
	Accrued expenses		1,051		1,343
	Other		23		28
		$	3,016	$	3,028

FINANCIAL_EXPENSES_NET_Tables

FINANCIAL EXPENSES, NET (Tables)	3 Months Ended
	Sep. 30, 2013
FINANCIAL EXPENSES, NET [Abstract]	'
Schedule of Financial Expenses, Net	'
		3 Months ended
		September 30,
		2013			2012
		($ in thousands)
	Bank commissions	$	11		$	9
	Interest income		(2	)		(9	)
	Exchange rate differences		(29	)		5
	Interest expense (including debt issuance costs)					988
	Change in fair value of warrants, embedded derivatives and other		77			3,225
		$	57		$	4,218

ENTITY_WIDE_DISCLOSURE_Tables

ENTITY WIDE DISCLOSURE (Tables)	3 Months Ended
	Sep. 30, 2013
ENTITY WIDE DISCLOSURE [Abstract]	'
Schedule of Revenues Attributed to Geographic Areas	'
		3 months ended
		September 30,
		2013			2012
		($ in thousands)
	Russia	$	454		$	24
	Spain		162			101
	South Africa		59			57
	Israel		57			75
	Other		820			252
		$	1,552		$	509
Schedule of Principal Customers	'
		3 months ended
		September 30,
		2013			2012
	Customer A		29	%		5	%
	Customer B		10	%		20	%
	Customer C		4	%		11	%
	Customer D		4	%		15	%

EQUITY_Details

EQUITY (Details) (Employee Stock Option [Member], USD $)	3 Months Ended
	Sep. 30, 2013
Employee Stock Option [Member]	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Shares issued in connection with exercise of options and warrants	77,103
Aggregate cash proceeds from exercise of options and warrants	'

NET_LOSS_PER_SHARE_Details

NET LOSS PER SHARE (Details)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
NET LOSS PER SHARE [Abstract]	'	'
Number of ordinary shares related to outstanding options, warrants and convertible loans excluded from the calculations of diluted loss per share	8,180,669	8,047,714

INVENTORY_Details

INVENTORY (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
INVENTORY [Abstract]	'	'
Finished goods	$551	$364
Work in process	707	1,111
Raw materials and supplies	134	118
Inventory on hand	1,392	1,593
Provisions for slow moving inventory	$356	$379

ACCOUNTS_PAYABLE_AND_ACCRUALS_2

ACCOUNTS PAYABLE AND ACCRUALS - OTHER (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
ACCOUNTS PAYABLE AND ACCRUALS - OTHER [Abstract]	'	'
Employees and employee institutions	$729	$626
Accrued vacation and recreation pay	305	313
Accrued clinical trial expenses	760	513
Provision for sales commissions	148	205
Accrued expenses	1,051	1,343
Other	23	28
Total accounts payable and accruals - other	$3,016	$3,028

FINANCIAL_EXPENSES_NET_Details

FINANCIAL EXPENSES, NET (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating Data:	'	'
Bank commissions	$11	$9
Interest income	-2	-9
Exchange rate differences	-29	5
Interest expense (including debt issuance costs)	'	988
Change in fair value of warrants, embedded derivatives and other	77	3,225
Total financial expenses, net	$57	$4,218

RELATED_PARTIES_Details

RELATED PARTIES (Details) (Director [Member], Employee Stock Option [Member], USD $)	0 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 03, 2013
Related Party Transaction [Line Items]	'
Options granted	125,000
Option exercise price	$2.12
Vesting period	'3 years
Dividend yield	0.00%
Expected volatility, minimum	68.00%
Expected volatility, maximum	69.00%
Risk-free interest rate, minimum	1.84%
Risk-free interest rate, maximum	2.15%
Option term	'10 years
Equity awards, fair value	$164
Minimum [Member]	'
Related Party Transaction [Line Items]	'
Expected term	'5 years 6 months
Maximum [Member]	'
Related Party Transaction [Line Items]	'
Expected term	'6 years 6 months

COMMITMENT_AND_CONTINGENT_LIAB1

COMMITMENT AND CONTINGENT LIABILITIES (Commitments, Liens and Pledges) (Details) (USD $)	0 Months Ended	1 Months Ended
	Aug. 22, 2013	Oct. 20, 2012	Mar. 31, 2010	Sep. 30, 2013	Oct. 19, 2012
Commitment:	'	'	'	'	'
Royalty percent on foreign sales	'	2.90%	7.00%	'	'
Royalty percent on sales under threshold in the US	'	2.90%	7.00%	'	'
Royalty percentage, under sales threshold	2.00%	'	'	'	'
Royalty percentage, exceeding sales threshold	2.50%	'	'	'	'
Sales threshold for determining royalty fee	$10,560,000	'	$10,000,000	'	'
Royalty percent on sales exceeding threshold in the US	'	2.90%	10.00%	'	'
Payment of royalties	192,000	205,587	'	'	'
Waiver of fees	'	85,000	'	'	'
Shares issued for license agreement	'	215,000	'	'	'
Closing price per share	'	'	'	'	$8.20
Total value of amount paid	'	1,848,000	'	'	'
Value allocated to royalties buyout	'	930,000	'	'	'
Compensation expense	'	918,000	'	'	'
Liens and pledges	'	'	'	'	'
Restricted cash	'	'	'	$93,000	'
Scenario, Plan [Member]	'	'	'	'	'
Commitment:	'	'	'	'	'
Royalty percentage, under sales threshold	2.90%	'	'	'	'

COMMITMENT_AND_CONTINGENT_LIAB2

COMMITMENT AND CONTINGENT LIABILITIES (Litigation) (Details) (USD $)	0 Months Ended	1 Months Ended
	Jul. 31, 2012	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2012
	Statement of Claim by Assignee of Options [Member]	Previous Service Provider Litigation [Member]	Previous Service Provider Litigation [Member]	Previous Service Provider Litigation [Member]	Previous Service Provider Litigation [Member]
				United States of America, Dollars [Member]	Argentina, Pesos [Member]
Loss Contingencies [Line Items]	'	'	'	'	'
Maximum amount of claim	'	$193,378	$80,000	'	'
Number of securities covered by claim	83,637	'	'	'	'
Exercise price of securities covered by claim	$0.76	'	'	'	'
Provision included in financial statements	'	($250,000)	'	'	'
Interest rate	'	'	'	6.00%	18.50%
Legal fees as a percent of the award	'	25.00%	'	'	'

ENTITY_WIDE_DISCLOSURE_Schedul

ENTITY WIDE DISCLOSURE (Schedule of Revenues by Geographic Areas) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Revenues by geographic areas:	'	'
Revenues	$1,552	$509
Russia [Member]	'	'
Revenues by geographic areas:	'	'
Revenues	454	24
Spain [Member]	'	'
Revenues by geographic areas:	'	'
Revenues	162	101
South Africa [Member]	'	'
Revenues by geographic areas:	'	'
Revenues	59	57
Israel [Member]	'	'
Revenues by geographic areas:	'	'
Revenues	57	75
Other [Member]	'	'
Revenues by geographic areas:	'	'
Revenues	$820	$252

ENTITY_WIDE_DISCLOSURE_Schedul1

ENTITY WIDE DISCLOSURE (Schedule of Revenues by Principal Customers) (Details) (Sales [Member])	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Customer A [Member]	'	'
Revenues by principal customers:	'	'
Percentage of revenues per major customer	29.00%	5.00%
Customer B [Member]	'	'
Revenues by principal customers:	'	'
Percentage of revenues per major customer	10.00%	20.00%
Customer C [Member]	'	'
Revenues by principal customers:	'	'
Percentage of revenues per major customer	4.00%	11.00%
Customer D [Member]	'	'
Revenues by principal customers:	'	'
Percentage of revenues per major customer	4.00%	15.00%

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $)	1 Months Ended
	Oct. 22, 2013	Oct. 23, 2013	Oct. 23, 2013	Oct. 23, 2013	Oct. 23, 2013	Oct. 23, 2013
	Rights Agreement [Member]	Lender Warrants [Member]	Term Loan [Member]	Term Loan [Member]	Term Loan [Member]	Term Loan [Member]
				Scenario One [Member]	Scenario Two [Member]	Scenario Three [Member]
Subsequent Event [Line Items]	'	'	'	'	'	'
Number of shares called by each warrant	0.001	'	'	'	'	'
Number of shares covered by warrants	'	168,351	'	'	'	'
Exercise price of warrants issued	21	2.97	'	'	'	'
Ownership percentage	15.00%	'	'	'	'	'
Expiration date	22-Oct-14	'	'	'	'	'
Warrant term	'	'5 years	'	'	'	'
Debt instrument, principal amount	'	'	$10,000,000	'	'	'
Debt instrument, minimum interest rate	'	'	10.50%	'	'	'
Debt instrument, interest rate under prime rate	'	'	-5.50%	'	'	'
Debt instrument, maturity date	'	'	1-Feb-17	'	'	'
Debt instrument, prepayment penalty	'	'	'	2.00%	1.00%	0.50%
Debt instrument, end of term fee	'	'	500,000	'	'	'
Amount of future investment right	'	'	1,000,000	'	'	'
Amount of future financing activity	'	'	10,000,000	'	'	'
Debt instrument, default amount	'	'	$1,000,000	'	'	'