GlucoTrack (GCTK) 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	15-May-15
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Entity Registrant Name	Integrity Applications, Inc.
Entity Central Index Key	1506983
Current Fiscal Year End Date	-19
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,451,228

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$4,695,269	$5,827,560
Accounts receivable, net	4,069	23,250
Inventories	75,205	83,653
Other current assets	111,578	113,842
Total current assets	4,886,121	6,048,305
Property and Equipment, Net	123,006	122,491
Funds in Respect of Employee Rights Upon Retirement	173,413	177,470
Total assets	5,182,540	6,348,266
Current Liabilities
Accounts payable	221,570	104,711
Other current liabilities	506,974	440,764
Long-Term Loans from Stockholders, current portion		454,532
Total current liabilities	728,544	1,000,007
Long-Term Liabilities
Long-Term Loans from Stockholders	156,063	163,459
Liability for Employee Rights Upon Retirement	205,883	210,700
Warrants with Down-Round Protection	977,377	2,057,618
Total long-term liabilities	1,339,323	2,431,777
Total liabilities	2,067,867	3,431,784
Commitments and Contingent Liabilities
Temporary Equity
Convertible Preferred Stock of $ 0.001 par value ("Preferred Stock"): 10,000,000 shares of Preferred Stock authorized as of March 31, 2015 and as of December 31, 2014	7,389,088	7,748,685
Stockholders' Deficit
Common Stock of $ 0.001 par value ("Common Stock"): 40,000,000 shares authorized as of March 31, 2015 and December 31, 2014; issued and outstanding 5,359,092 shares and 5,323,058 shares as of March 31, 2015 and December 31, 2014, respectively	5,360	5,324
Additional paid in capital	20,420,563	18,182,866
Accumulated other comprehensive income	25,007	66,670
Accumulated deficit	-24,725,345	-23,087,063
Total stockholders' deficit	-4,274,415	-4,832,203
Total liabilities, temporary equity and stockholders' deficit	5,182,540	6,348,266
Series A Preferred Stock [Member]
Temporary Equity
Convertible Preferred Stock of $ 0.001 par value ("Preferred Stock"): 10,000,000 shares of Preferred Stock authorized as of March 31, 2015 and as of December 31, 2014	1,803,390	4,356,657
Series B Preferred Stock [Member]
Temporary Equity
Convertible Preferred Stock of $ 0.001 par value ("Preferred Stock"): 10,000,000 shares of Preferred Stock authorized as of March 31, 2015 and as of December 31, 2014	$5,585,698	$3,392,028

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Temporary Equity
Common Stock, par value per share	$0.00	$0.00
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	5,359,092	5,323,058
Common Stock, shares outstanding	5,359,092	5,323,058
Preferred Stock [Member]
Temporary Equity
Convertible Preferred Stock, par value per share	$0.00	$0.00
Convertible Preferred Stock, shares authorized	10,000,000	10,000,000
Series A Preferred Stock [Member]
Temporary Equity
Convertible Preferred Stock, shares issued	3,066	7,407
Convertible Preferred Stock, shares outstanding	3,066	7,407
Series B Preferred Stock [Member]
Temporary Equity
Convertible Preferred Stock, shares issued	12,841	8,500
Convertible Preferred Stock, shares outstanding	12,841	8,500

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract]
Revenues	$75,825
Research and development expenses	478,325	451,084
Selling, marketing and general and administrative expenses	478,197	436,102
Total operating expenses	956,522	887,186
Operating loss	880,697	887,186
Financing (income) expenses, net	653,834	-150,267
Loss for the period	1,534,531	736,919
Other comprehensive (income) loss:
Foreign currency translation adjustment	41,663	-872
Comprehensive loss for the period	$1,576,194	$736,047
Loss per share (Basic and Diluted)	$0.31	$0.16
Common shares used in computing loss per share (Basic and Diluted)	5,323,459	5,302,980

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (USD $)	Total	Common Stock [Member]	Additional paid in capital [Member]	Accumulated other comprehensive income (loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2014	($4,832,203)	$5,324	$18,182,866	$66,670	($23,087,063)
Balance, shares at Dec. 31, 2014	5,323,058	5,323,058
Loss for the period of three months	-1,534,531				-1,534,531
Other comprehensive loss	-41,663			-41,663
Amounts allocated to Series B-1 and Series B-2 Warrants, net	2,147,365		2,147,365
Stock dividend on Series B Preferred Stock		36	83,201
Stock dividend on Series B Preferred Stock					-83,237
Stock dividend on Preferred Stock		36,034
Cash dividend on Series A Preferred Stock	-20,514				-20,514
Stock-based compensation	7,131		7,131
Stock-based compensation, shares
Balance at Mar. 31, 2015	($4,274,415)	$5,360	$20,420,563	$25,007	($24,725,345)
Balance, shares at Mar. 31, 2015	5,359,092	5,359,092

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Loss for the period	($1,534,531)	($736,919)
Adjustments to reconcile income (loss) for the period to net cash used in operating activities:
Depreciation	8,770	8,096
Stock-based compensation	7,131	14,701
Change in the fair value of Warrants with down-round protection	-65,770	-145,870
Linkage difference on principal of loans from stockholders	-3,680	-4,717
Loss on partial extinguishment of Series A Preferred Stock and Series A Warrants	773,297
Changes in assets and liabilities:
Increase in accounts receivable	18,759
Increase in inventory	6,574
Decrease (increase) in other current assets	-340	4,126
Increase in accounts payable	118,838	85,925
Increase in other current liabilities	75,539	86,389
Net cash used in operating activities	-595,413	-688,269
Cash flows from investment activities:
Purchase of property and equipment	-12,105	-8,854
Net cash used in investment activities	-12,105	-8,854
Cash flows from financing activities
Credit from banking institutions		23,793
Cash dividend on Series A Preferred Stock	-20,514	-92,674
Repayment of loan from stockholders	-439,939
Net cash used in financing activities	-460,453	-68,881
Effect of exchange rate changes on cash and cash equivalents	-64,320	-2,786
Increase (decrease) in cash and cash equivalents	-1,132,291	-768,790
Cash and cash equivalents at beginning of the period	5,827,560	2,385,911
Cash and cash equivalents at end of the period	$4,695,269	$1,617,121

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Exchange One [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Conversion of Stock [Line Items]
Number of units converted	898,146
Non-cash charge included in finance expenses	$773,297
Series B-1 Warrant [Member]
Conversion of Stock [Line Items]
Stock issued upon conversion	748,454
Amount allocated	1,143,139
Series B-2 Warrant [Member]
Conversion of Stock [Line Items]
Stock issued upon conversion	748,454
Amount allocated	1,004,226
Series A Warrant [Member]
Conversion of Stock [Line Items]
Amount of stock converted	1,014,471
Series A Preferred Stock [Member]
Conversion of Stock [Line Items]
Number of units converted	4,341
Amount of stock converted	2,553,267
Series B Preferred Stock [Member]
Conversion of Stock [Line Items]
Stock issued upon conversion	4,341
Amount allocated	$2,193,670

GENERAL

GENERAL	3 Months Ended
	Mar. 31, 2015
GENERAL [Abstract]
GENERAL	NOTE 1	–	GENERAL
		A.	Integrity Applications, Inc. (the "Company") was incorporated on May 18, 2010 under the laws of the State of Delaware.  On July 15, 2010, Integrity Acquisition Corp. Ltd. (hereinafter: "Integrity Acquisition"), a wholly owned Israeli subsidiary of the Company, which was established on May 23, 2010, completed a merger with A.D. Integrity Applications Ltd. (hereinafter: "Integrity Israel"), an Israeli corporation that was previously held by the stockholders of the Company.  Pursuant to the merger, all equity holders of Integrity Israel received the same proportional ownership in the Company as they had in Integrity Israel prior to the merger. Following the merger, Integrity Israel remained a wholly-owned subsidiary of the Company.  As the merger transaction constituted a structural reorganization, the merger has been accounted for at historical cost in a manner similar to a pooling of interests.  Integrity Israel was incorporated in 2001 and commenced its operations in 2002.  Integrity Israel, a medical device company, focuses on the design, development and commercialization of non-invasive glucose monitoring devices for home use by persons suffering with diabetes.
		B.	Going concern uncertainty
	Since its incorporation, the Company did not conduct any material operations other than those carried out by Integrity Israel.  The development and commercialization of Integrity Israel's product is expected to require substantial expenditures.  Integrity Israel and the Company (collectively, the "Group") have not yet generated material revenues from operations, and therefore they are dependent upon external sources for financing their operations. As of March 31, 2015, the Group has incurred accumulated deficit of $24,725,345, stockholder's deficit of $4,274,415 and negative operating cash flows.  These factors raise substantial doubt about the Group's ability to continue as a going concern.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.  During 2012, the Company raised a total amount of approximately $1.0 million (net of related expenses) from the issuance of Common Stock. During 2013, the Company raised funds in an approximate amount of $5.3 million (net of related cash expenses) from the issuance of units (the “Series A Units”) consisting of shares of the Company's Series A Convertible Preferred Stock (the “Series A Preferred Stock”) and detachable warrants to purchase shares of the Company's Common Stock (the “Series A Warrants” or “Warrants with down-round protection”).  As more fully described in Note 11B to the Company's annual report on Form 10-K for the year ended December 31, 2014, the Company is not permitted to, among other things, incur indebtedness without the written consent of the holders of a majority in stated value of the outstanding Series A Preferred Stock. During the period between August and December of 2014, the Company raised funds in an aggregate amount of approximately $7.3 million (net of related cash expenses) from the issuance of units (the “Series B Units”), each consisting of (a) one share of the Company's newly designated Series B 5.5% Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”), convertible into Common Stock at an initial conversion price of $5.80 per share, (b) a five year warrant to purchase, at an exercise price of $5.80 per share, up to such number of shares of Common Stock issuable upon conversion of such share of Series B Preferred Stock (each a “Series B-1 Warrant”) and (c) a five year warrant to purchase, at an exercise price of $10.00 per share, up to such number of shares of Common Stock issuable upon conversion of such share of Series B Preferred Stock (each a “Series B-2 Warrant” and, together with the Series B-1 Warrants, collectively, the “Series B Warrants”). See Note 3B regarding the exchange of certain Series A Units into Series B Units.
	Until such time as the Group generates sufficient revenue to fund its operations (if ever), the Group plans to finance its operations through the sale of equity or equity-linked securities and/or debt securities and, to the extent available, short term and long term loans. There can be no assurance that the Group will succeed in obtaining the necessary financing to continue its operations.
		C.	Risk factors
	The Group has a limited operating history and faces a number of risks, including uncertainties regarding finalization of the development process, demand and market acceptance of the Group's products, the effects of technological changes, competition and the development of products by competitors.  Additionally, other risk factors also exist, such as the ability to manage growth and the effect of planned expansion of operations on the Group's future results. In addition, the Group expects to continue incurring significant operating costs and losses in connection with the development of its products and marketing efforts. The Group has not yet generated material revenues from its operations to fund its activities and therefore the Group is dependent on the receipt of additional funding from its stockholders and investors in order to continue as a going concern (See Note 1B).
		D.	Use of estimates in the preparation of financial statements
	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these condensed consolidated interim financial statements, the most significant estimates and assumptions relate to (i) the fair value estimate of the Warrants with down-round protection, (ii) the fair value measurement of the Series B Units and the loss estimate arising for the partial extinguishment of the Series A Units with Series B Units, and (iii) the going concern assumptions.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2	–	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
		A.	Basis of presentation
	Accounting Principles
	The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“fiscal 2014”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) related to interim financial statements. As permitted under those rules, certain information and footnote disclosures normally required or included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. The financial information contained herein is unaudited; however, management believes all adjustments have been made that are considered necessary to present fairly the results of the Company's financial position and operating results for the interim periods. All such adjustments are of a normal recurring nature.
	The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period or for any future period.
	Principles of Consolidation
	The consolidated financial statements include the accounts of the Company and the wholly- owned subsidiary. All significant intercompany balances have been eliminated in consolidation.
		B.	Warrants with down-round protection
	The Company has determined its derivative warrant liability with respect to the Series A Warrants to be a Level 3 fair value measurement and has used the Binomial pricing model to calculate its fair value. Because the warrants contain a price protection feature, the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations.  The key inputs used in the fair value calculations were as follows:
			31-Mar-15
	Dividend yield (%)			-
	Expected volatility (%) (*)			105.14
	Risk free interest rate (%)			0.89
	Expected term of options (years) (**)			2.95
	Exercise price (US dollars)			5.8
	Share price (US dollars) (***)			2.31
	Fair value (US dollars)			1.06
		(*)
	Due to the low trading volume of the Company's Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.
				(	**)	Due to the fact that the Company does not have sufficient historical exercise data, the expected term was determined based on the "simplified method" in accordance with Staff Accounting Bulletin No. 110.
		(***)	The Common Stock price, per share reflects the Company's management's estimation of the fair value per share of Common Stock as of March 31, 2015. In reaching its estimation, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series B Units.
		C.	Recently issued accounting pronouncements
		1	Accounting Standard Update 2014-09, “Revenue from Contracts with Customers”
	In May 2014, the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09").
	ASU 2014-09 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 also requires entities to disclose sufficient information, both quantitative and qualitative, to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
	An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented with a possibility to elect certain practical expedients, or, 2. Retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. If an entity elects the latter transition method, it also should provide certain additional disclosures.
	For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (the first quarter of fiscal year 2017 for the Company). Early application is not permitted.
	The Company is in the process of assessing the impact, if any, of ASU 2014-09 on its consolidated financial statements.
		2	Accounting Standards Update 2014-15, “Presentation of Financial Statements—Going Concern”
	In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15").
	ASU 2014-15 provide guidance on management's responsibility in evaluating whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable).
	ASU 2014-15 also provide guidance related to the required disclosures as a result of management evaluation.
	The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.
	The Company is in the process of assessing the impact, if any, of ASU 2014-15 on its consolidated financial statements or related disclosures.
		3	Accounting Standard Update 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity”
	In November 2014, the FASB issued Accounting Standard Update 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity ("ASU 2014-16").
	The amendments in ASU 2014-16 clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The assessment of the substance of the relevant terms and features should incorporate a consideration of the characteristics of the terms and features themselves; the circumstances under which the hybrid financial instrument was issued or acquired; and the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes.
	The amendments ASU 2014-16 apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share.
	The amendments in ASU 2014-16 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (fiscal 2016 for the Company). Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.
	The effects of initially adopting the amendments in ASU 2014-16 should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods.
	The Company is in the process of assessing the impact, if any, of ASU 2014-16 on its consolidated financial statements.

EVENTS_DURING_THE_REPORTED_PER

EVENTS DURING THE REPORTED PERIOD	3 Months Ended
	Mar. 31, 2015
EVENTS DURING THE REPORTED PERIOD [Abstract]
EVENTS DURING THE REPORTED PERIOD	NOTE 3	–	EVENTS DURING THE REPORTED PERIOD
		A.	As more fully described in Note 10.D and Note 19 to the Company's annual report on Form 10-K for the year ended December 31, 2014, from June of 2011 Integrity Israel, Avner Gal, David Malka, Zvi Cohen, Ilana Freger and Alexander Reykhman, on the one hand, and Y.H. Dimri Holdings ("Dimri"), on the other hand, which was a shareholder of Integrity Israel prior to the reorganization and merger (described in Note 1 to the Company's annual report on Form 10-K for the year ended December 31, 2014) were involved in arbitration proceedings resulting from certain claims asserted by Dimri following such reorganization. On March 11, 2015, the arbitrator issued a binding arbitration decision (the “Arbitration Decision”) which documents the parties' negotiated settlement of such arbitration proceedings.  Pursuant to the terms of the Arbitration Decision, (1) Avner Gal, David Malka, Zvi Cohen, Ilana Freger and Alexander Reykhman transferred to Dimri, on March 18, 2015, an aggregate of 440,652 shares of the Company's outstanding Common Stock, (2) Integrity Israel (A) paid to Dimri on March 23, 2015, NIS 1,767,674 or $439,939 (based on the exchange rate of 4.018 NIS:$1 as of March 23, 2015), as repayment in full of the outstanding principal amount under the Investment Agreement, as adjusted for changes in the Israeli consumer price index since the date on which the loan was made, and (B) paid to Dimri on April 30, 2015, NIS 316,100 or $81,870 (based on the exchange rate of 3.861 NIS:$1 as of April 30, 2015), as partial reimbursement of Dimri's attorney's fees in the arbitration. The Company accrued for the fee reimbursement obligation as part of professional fees within selling, marketing and general and administrative expenses included in its Annual Report on Form 10-K for the fiscal year ended December 31. As of March 31, 2015 such amount is presented as part of accrued expenses under current liabilities.
		Following the completion of the abovementioned transfers and payments, the Arbitration Decision released Integrity Israel, the Company and the other defendants in the arbitration from any legal claim by Yigal Dimri, the principal shareholder of Dimri, and any other companies under his control in respect of the subject matter of the arbitration, including the shareholder loan granted under and any claim of anti-dilution rights under the Investment Agreement, and similarly released Mr. Dimri and all companies under his control from any legal claim by Integrity Israel, the Company and the other defendants in the arbitration in respect of the subject matter of the arbitration.
		B.	As more fully described in Note 11 to the Company's annual report on Form 10-K for the year ended December 31, 2014, on March 13, 2013, the Company entered into a Securities Purchase Agreement (“Purchase Agreement”) with certain accredited investors (the “Series A Unit Purchasers”) pursuant to which the Company issued to the Series A Unit Purchasers an aggregate of 6,300 Series A Units.    Based on the terms the Purchase Agreement, so long as any initial Series A Unit purchaser holds any shares of Series A Preferred Stock, if (1) the Company sells any shares of Common Stock or other securities convertible into, or rights to acquire, Common Stock and (2) a Purchaser then holding Series A Preferred Stock, Warrants, Conversion Shares or Warrant Shares reasonably believes that any of the terms and conditions appurtenant to such issuance or sale are more favorable to the purchaser in such subsequent sale of securities than are the terms and conditions granted to such Purchaser, then the Purchaser will be permitted to require the Company to amend the terms of this transaction (only with respect to such Purchaser) so as to match the terms of the subsequent issuance (including, for the avoidance of doubt, any terms and provisions that are or may be less favorable to such Purchaser).
		During August and September of 2014, the Company issued to certain accredited investors 8,500 Series B Units. Pursuant to the Purchase Agreement, the Company was required to and did notify the holders of the Series A Preferred Stock of the closing of the sale of the Series B Units, and following receipt thereof such holders of Series A Preferred Stock were entitled, pursuant to the “most favored nation” provisions contained in the Purchase Agreement (as described above),  to elect to amend the terms of their purchase of Series A Units to match the terms of the Series B Units. The Company is obligated to amend the terms of any of Series A Units who timely makes such election and tenders its Series A Units for exchange.
		As of March 31, 2015, 4,341 Unit A holders elected to amend the terms of their Series A Units. Accordingly, the Company has exchange 4,341share of Series A Preferred Stock into 4,341shares of Series B Stock and 898,146 Warrants with down-round protection into 748,454 Series B-1 Warrants and 748,454 Series B-2 Warrants. Due to the differences in the contractual terms of each of the financial instruments exchanged management determined that the exchange constitutes an extinguishment of the exiting instruments and an issuance of new financial instruments. As a result of the exchange elections, the Company recorded a non-cash loss on extinguishment of Series A Preferred Stock and Series A Warrants in the amount of $773,297, resulting from the differences between the fair market value of the new Series B Units less the net book value of the exchanged Series A Preferred Stock and less the fair value of the exchanged Warrants with down-round protection (See Note 2B above).
		As of April 30, 2015, the holders of approximately 2,440 additional Series A Units have complied with the conditions for the amendment of the terms of their Series A Units as described above. As a result of the additional exchanges, the Company expects to recognize during the three months period ending June 30, 2015, a non-cash loss on extinguishment of Series A Preferred Stock and Series A Warrants in the amount of approximately $250,000.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2015
INVENTORIES [Abstract]
INVENTORIES	NOTE 4	–	INVENTORIES
			US dollars
			March 31,		December 31,
			2015		2014
			(unaudited)
	Raw materials			50,005		55,557
	Work in progress			13,218		16,459
	Finished products			11,982		11,637
				75,205		83,653

FINANCING_INCOME_EXPENSES_NET

FINANCING (INCOME) EXPENSES, NET	3 Months Ended
	Mar. 31, 2015
FINANCING (INCOME) EXPENSES, NET [Abstract]
FINANCING (INCOME) EXPENSES, NET	NOTE 5	–	FINANCING (INCOME) EXPENSES, NET
			US dollars
			Three month period
			ended March 31,
			2015			2014
			(unaudited)
	Israeli CPI linkage difference on principal of loans from stockholders			(3,680	)		(4,717	)
	Exchange rate differences			(52,603	)		(1,967	)
	Change in fair value of Warrants with down round protection			(65,770	)		(145,870	)
	Interest expenses on credit from banks and other			2,590			2,287
	Loss on partial extinguishment of Series A Preferred Stock and Series A Warrants			773,297			-
				653,834			(150,267	)

LOSS_PER_SHARE

LOSS PER SHARE	3 Months Ended
	Mar. 31, 2015
LOSS PER SHARE [Abstract]
LOSS PER SHARE	NOTE 6	–	LOSS PER SHARE
	In periods of net loss, basic loss per share is computed by dividing net loss for the period after consideration of the effect of dividend on preferred stock by the weighted average number of shares outstanding during the period.
	The loss and the weighted average number of shares used in computing basic and diluted loss per share for the three month periods ended March 31, 2015 and 2014 are as follows:
			US dollars
			Three month period
			ended March 31,
			2015		2014
			(unaudited)
	Loss for the period			1,534,531		736,919
	Cash dividend on Series A Preferred Stock			20,514		92,674
	Stock dividend on Series B Preferred Stock			83,237		-
	Loss for the period attributable to common stockholders			1,638,282		829,593
			Number of share
			Three month period
			ended March 31,
			2015		2014
			(unaudited)
	Number of shares:
	Weighted average number of shares used in the computation of basic and diluted earnings per share			5,323,459		5,302,980
	Total weighted average number of common shares related to outstanding convertible preferred stock, options and warrants excluded from the calculations of diluted loss per share (*)			9,195,295		3,417,231
		(*)	All outstanding convertible Preferred Stock, stock options and warrants have been excluded from the calculation of the diluted net loss per share for all the reported periods, because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	3 Months Ended
	Mar. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of presentation		A.	Basis of presentation
	Accounting Principles
	The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“fiscal 2014”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) related to interim financial statements. As permitted under those rules, certain information and footnote disclosures normally required or included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. The financial information contained herein is unaudited; however, management believes all adjustments have been made that are considered necessary to present fairly the results of the Company's financial position and operating results for the interim periods. All such adjustments are of a normal recurring nature.
	The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period or for any future period.
	Principles of Consolidation
	The consolidated financial statements include the accounts of the Company and the wholly- owned subsidiary. All significant intercompany balances have been eliminated in consolidation.
Warrants with Down-Round Protection		B.	Warrants with down-round protection
	The Company has determined its derivative warrant liability with respect to the Series A Warrants to be a Level 3 fair value measurement and has used the Binomial pricing model to calculate its fair value. Because the warrants contain a price protection feature, the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations.  The key inputs used in the fair value calculations were as follows:
			31-Mar-15
	Dividend yield (%)			-
	Expected volatility (%) (*)			105.14
	Risk free interest rate (%)			0.89
	Expected term of options (years) (**)			2.95
	Exercise price (US dollars)			5.8
	Share price (US dollars) (***)			2.31
	Fair value (US dollars)			1.06
		(*)
	Due to the low trading volume of the Company's Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.
				(	**)	Due to the fact that the Company does not have sufficient historical exercise data, the expected term was determined based on the "simplified method" in accordance with Staff Accounting Bulletin No. 110.
		(***)	The Common Stock price, per share reflects the Company's management's estimation of the fair value per share of Common Stock as of March 31, 2015. In reaching its estimation, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series B Units.
Recently issued accounting pronouncements		C.	Recently issued accounting pronouncements
		1	Accounting Standard Update 2014-09, “Revenue from Contracts with Customers”
	In May 2014, the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09").
	ASU 2014-09 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 also requires entities to disclose sufficient information, both quantitative and qualitative, to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
	An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented with a possibility to elect certain practical expedients, or, 2. Retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. If an entity elects the latter transition method, it also should provide certain additional disclosures.
	For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (the first quarter of fiscal year 2017 for the Company). Early application is not permitted.
	The Company is in the process of assessing the impact, if any, of ASU 2014-09 on its consolidated financial statements.
		2	Accounting Standards Update 2014-15, “Presentation of Financial Statements—Going Concern”
	In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15").
	ASU 2014-15 provide guidance on management's responsibility in evaluating whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable).
	ASU 2014-15 also provide guidance related to the required disclosures as a result of management evaluation.
	The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.
	The Company is in the process of assessing the impact, if any, of ASU 2014-15 on its consolidated financial statements or related disclosures.
		3	Accounting Standard Update 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity”
	In November 2014, the FASB issued Accounting Standard Update 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity ("ASU 2014-16").
	The amendments in ASU 2014-16 clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The assessment of the substance of the relevant terms and features should incorporate a consideration of the characteristics of the terms and features themselves; the circumstances under which the hybrid financial instrument was issued or acquired; and the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes.
	The amendments ASU 2014-16 apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share.
	The amendments in ASU 2014-16 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (fiscal 2016 for the Company). Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.
	The effects of initially adopting the amendments in ASU 2014-16 should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods.
	The Company is in the process of assessing the impact, if any, of ASU 2014-16 on its consolidated financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Fair Value Assumptions Used			31-Mar-15
	Dividend yield (%)			-
	Expected volatility (%) (*)			105.14
	Risk free interest rate (%)			0.89
	Expected term of options (years) (**)			2.95
	Exercise price (US dollars)			5.8
	Share price (US dollars) (***)			2.31
	Fair value (US dollars)			1.06
		(*)
	Due to the low trading volume of the Company's Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.
				(	**)	Due to the fact that the Company does not have sufficient historical exercise data, the expected term was determined based on the "simplified method" in accordance with Staff Accounting Bulletin No. 110.
		(***)	The Common Stock price, per share reflects the Company's management's estimation of the fair value per share of Common Stock as of March 31, 2015. In reaching its estimation, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series B Units.

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2015
INVENTORIES [Abstract]
Schedule of Inventory		US dollars
		March 31,		December 31,
		2015		2014
		(unaudited)
	Raw materials		50,005		55,557
	Work in progress		13,218		16,459
	Finished products		11,982		11,637
			75,205		83,653

FINANCING_INCOME_EXPENSES_NET_

FINANCING (INCOME) EXPENSES, NET (Tables)	3 Months Ended
	Mar. 31, 2015
FINANCING (INCOME) EXPENSES, NET [Abstract]
Schedule of Financing (Income) Expenses, Net		US dollars
		Three month period
		ended March 31,
		2015			2014
		(unaudited)
	Israeli CPI linkage difference on principal of loans from stockholders		(3,680	)		(4,717	)
	Exchange rate differences		(52,603	)		(1,967	)
	Change in fair value of Warrants with down round protection		(65,770	)		(145,870	)
	Interest expenses on credit from banks and other		2,590			2,287
	Loss on partial extinguishment of Series A Preferred Stock and Series A Warrants		773,297			-
			653,834			(150,267	)

LOSS_PER_SHARE_Tables

LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2015
LOSS PER SHARE [Abstract]
Schedule of Loss and Weighted Average Number of Shares			US dollars
			Three month period
			ended March 31,
			2015		2014
			(unaudited)
	Loss for the period			1,534,531		736,919
	Cash dividend on Series A Preferred Stock			20,514		92,674
	Stock dividend on Series B Preferred Stock			83,237		-
	Loss for the period attributable to common stockholders			1,638,282		829,593
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share			Number of share
			Three month period
			ended March 31,
			2015		2014
			(unaudited)
	Number of shares:
	Weighted average number of shares used in the computation of basic and diluted earnings per share			5,323,459		5,302,980
	Total weighted average number of common shares related to outstanding convertible preferred stock, options and warrants excluded from the calculations of diluted loss per share (*)			9,195,295		3,417,231
		(*)	All outstanding convertible Preferred Stock, stock options and warrants have been excluded from the calculation of the diluted net loss per share for all the reported periods, because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.

GENERAL_Details

GENERAL (Details) (USD $)	3 Months Ended	5 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2012	Mar. 31, 2015
GENERAL [Abstract]
Accumulated deficit		($23,087,063)		($24,725,345)
Stockholders' deficit		-4,832,203		-4,274,415
Proceeds from issuance of Common Stock, net of cash issuance expenses			1,000,000
Proceeds from convertible preferred stock and warrants	$5,300,000	$7,300,000
Series B-1 Warrant [Member]
Class of Stock [Line Items]
Warrant term				5 years
Warrant exercise price				$5.80
Series B-2 Warrant [Member]
Class of Stock [Line Items]
Warrant term				5 years
Warrant exercise price				$10
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Dividend rate				5.50%
Par value per share				$0.00
Conversion price				$5.80

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Common Stock [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Share price	$2.31	[1]
Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Dividend yield
Expected volatility	105.14%	[2]
Risk free interest rate	0.89%
Expected term of options	2 years 11 months 12 days	[3]
Exercise price	$5.80
Fair value	$1.06
[1]	The Common Stock price, per share reflects the Company's management's estimation of the fair value per share of Common Stock as of March 31, 2015. In reaching its estimation, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series B Units.
[2]	Due to the low trading volume of the Company's Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.
[3]	Due to the fact that the Company does not have sufficient historical exercise data, the expected term was determined based on the "simplified method" in accordance with Staff Accounting Bulletin No. 110.

EVENTS_DURING_THE_REPORTED_PER1

EVENTS DURING THE REPORTED PERIOD (Details)

0 Months Ended

5 Months Ended

3 Months Ended

1 Months Ended

3 Months Ended

Mar. 13, 2013

Dec. 31, 2014

Mar. 31, 2015

Mar. 31, 2015

Mar. 31, 2015

Apr. 30, 2015

Apr. 30, 2015

Apr. 30, 2015

Apr. 30, 2015

Mar. 23, 2015

Mar. 23, 2015

Mar. 18, 2015

Mar. 31, 2015

Mar. 31, 2015

Exchange One [Member]

Exchange One [Member]

Exchange One [Member]

Exchange Two [Member]

Exchange Two [Member]

Arbitration Proceedings with Shareholder [Member]

Arbitration Proceedings with Shareholder [Member]

Arbitration Proceedings with Shareholder [Member]

Arbitration Proceedings with Shareholder [Member]

Arbitration Proceedings with Shareholder [Member]

Series B-1 Warrant [Member]

Series B-2 Warrant [Member]

USD ($)

Series A Preferred Stock [Member]

Series B Preferred Stock [Member]

USD ($)

Series A Preferred Stock [Member]

USD ($)

ILS

USD ($)

ILS

Exchange One [Member]

Exchange One [Member]

Temporary Equity [Line Items]

Number of shares of the Company's outstanding Common Stock transferred

440,652

Amount paid as repayment in full of the outstanding principal amount under the Investment Agreement

$439,939

1,767,674

Exchange rate

3.861

4.018

Partial reimbursement of attorney's fees required to pay

81,870

316,100

Number of units sold

6,300

8,500

Number of units converted

898,146

4,341

2,440

Stock issued upon conversion

4,341

748,454

748,454

Non-cash charge included in finance expenses

$773,297

$250,000

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
INVENTORIES [Abstract]
Raw materials	$50,005	$55,557
Work in progress	13,218	16,459
Finished products	11,982	11,637
Total	$75,205	$83,653

FINANCING_INCOME_EXPENSES_NET_1

FINANCING (INCOME) EXPENSES, NET (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
FINANCING (INCOME) EXPENSES, NET [Abstract]
Israeli CPI linkage difference on principal of loans from stockholders	($3,680)	($4,717)
Exchange rate differences	-52,603	-1,967
Change in fair value of Warrants with down round protection	-65,770	-145,870
Interest expenses on credit from banks and other	2,590	2,287
Loss on partial extinguishment of Series A Preferred Stock and Series A Warrants	773,297
Financing expenses, net	$653,834	($150,267)

LOSS_PER_SHARE_Details

LOSS PER SHARE (Details) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Loss for the period	$1,534,531		$736,919
Loss for the period attributable to common stockholders	1,638,282		829,593
Number of shares:
Weighted average number of shares used in the computation of basic and diluted earnings per share	5,323,459		5,302,980
Total weighted average number of common shares related to outstanding convertible preferred stock, options and warrants excluded from the calculations of diluted loss per share	9,195,295	[1]	3,417,231	[1]
Series A Preferred Stock [Member]
Dividend on Preferred Stock	20,514		92,674
Series B Preferred Stock [Member]
Dividend on Preferred Stock	$83,237
[1]	All outstanding convertible Preferred Stock, stock options and warrants have been excluded from the calculation of the diluted net loss per share for all the reported periods, because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.