Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Integrity Applications, Inc. | |
Entity Central Index Key | 0001506983 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 161,947,019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 2,276,293 | $ 97,079 |
Accounts receivable, net | 22,812 | 22,779 |
Inventories | 129,868 | 170,999 |
Other current assets | 76,531 | 23,288 |
Total current assets | 2,505,504 | 314,145 |
Operating lease right-of-use assets, net | 172,950 | |
Property and Equipment, Net | 140,870 | 149,779 |
Long-Term Restricted Cash | 55,290 | 52,605 |
Funds in Respect of Employee Rights Upon Retirement | 180,418 | 171,657 |
Total assets | 3,055,032 | 688,186 |
Current Liabilities | ||
Accounts payable | 1,628,384 | 2,064,259 |
Operating lease liabilities, current | 122,143 | |
Other current liabilities | 877,214 | 1,157,350 |
Total current liabilities | 2,627,741 | 3,221,609 |
Long-Term Liabilities | ||
Long-Term Loans from Stockholders | 180,715 | 168,221 |
Operating lease liabilities, non-current | 50,807 | |
Liability for Employee Rights Upon Retirement | 180,418 | 171,657 |
Total long-term liabilities | 411,940 | 339,878 |
Total liabilities | 3,039,681 | 3,561,487 |
Stockholders' Deficit | ||
Common Stock of $ 0.001 par value ("Common Stock"): 200,000,000 and 200,000,000 shares authorized as of June 30, 2019 and December 31, 2018; 161,947,019 and 141,634,700 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 161,955 | 141,638 |
Additional paid in capital | 88,823,095 | 84,007,612 |
Accumulated other comprehensive income | 137,594 | 164,232 |
Accumulated deficit | (89,107,293) | (87,186,783) |
Total stockholders' (deficit) surplus | 15,351 | (2,873,301) |
Total liabilities and stockholders' deficit | $ 3,055,032 | $ 688,186 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 161,947,019 | 141,634,700 |
Common stock, shares outstanding | 161,947,019 | 141,634,700 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 110,518 | $ 15,279 | $ 136,080 | $ 43,488 |
Research and development expenses | 401,122 | 691,894 | 826,239 | 1,284,591 |
Selling and marketing expenses | 150,953 | 283,467 | 276,296 | 592,104 |
General and administrative expenses | 452,749 | 1,046,174 | 952,904 | 2,082,858 |
Total operating expenses | 1,004,824 | 2,021,535 | 2,055,439 | 3,959,553 |
Operating loss | (894,306) | (2,006,256) | (1,919,359) | (3,916,065) |
Financing income (loss), net | (4,551) | 43,773 | (1,151) | 105,788 |
Loss for the period | (898,857) | (1,962,483) | (1,920,510) | (3,810,277) |
Other comprehensive income: | ||||
Foreign currency translation income (loss) | 6,510 | 28,326 | (26,638) | 35,630 |
Comprehensive loss for the period | $ (892,347) | $ (1,934,157) | $ (1,947,148) | $ (3,774,647) |
Loss per share (Basic) | $ (0.01) | $ (0.33) | $ (0.01) | $ (0.67) |
Loss per share (Diluted) | $ (0.01) | $ (0.33) | $ (0.01) | $ (0.67) |
Common shares used in computing Basic income (loss) per share | 149,776,875 | 7,555,761 | 147,256,546 | 7,290,123 |
Common shares used in computing Diluted income (loss) per share | 149,776,875 | 7,555,761 | 147,256,546 | 7,290,123 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 6,824 | $ 30,676,180 | $ 110,675 | $ (47,368,612) | $ (16,574,933) |
Balance, shares at Dec. 31, 2017 | 6,821,792 | ||||
Loss for the period | (3,810,277) | (3,810,277) | |||
Other comprehensive income (loss) | 35,630 | 35,630 | |||
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net | 1,018,495 | 1,018,495 | |||
Stock dividend on Series C Preferred Stock | $ 190 | 467,243 | (467,433) | ||
Stock dividend on Series C Preferred Stock shares | 190,712 | ||||
Stock dividend on Series B Preferred Stock | $ 239 | 585,082 | (585,321) | ||
Stock dividend on Series B Preferred Stock, shares | 238,809 | ||||
Cash dividend on Series A Preferred Stock | (8,970) | (8,970) | |||
Amounts allocated to issuance of Common Stock from Series D offering | $ 622 | 1,220,141 | 1,220,763 | ||
Amounts allocated to issuance of Common Stock from Series D offering, shares | 621,556 | ||||
Stock-based compensation | $ 134 | 1,134,397 | 1,134,531 | ||
Stock-based compensation, shares | 13,338 | ||||
Balance at Jun. 30, 2018 | $ 8,009 | 35,101,538 | 146,305 | (52,240,613) | (16,984,761) |
Balance, shares at Jun. 30, 2018 | 7,886,207 | ||||
Balance at Mar. 31, 2018 | $ 7,532 | 33,312,949 | 117,979 | (49,724,998) | (16,286,538) |
Balance, shares at Mar. 31, 2018 | 7,469,604 | ||||
Loss for the period | (1,962,483) | (1,962,483) | |||
Other comprehensive income (loss) | 28,326 | 28,326 | |||
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net | 302,402 | 302,402 | |||
Stock dividend on Series C Preferred Stock | $ 99 | 243,601 | (243,700) | ||
Stock dividend on Series C Preferred Stock shares | 99,429 | ||||
Stock dividend on Series B Preferred Stock | $ 125 | 305,037 | (305,162) | ||
Stock dividend on Series B Preferred Stock, shares | 124,505 | ||||
Cash dividend on Series A Preferred Stock | (4,270) | (4,270) | |||
Amounts allocated to issuance of Common Stock from Series D offering | $ 186 | 364,567 | 364,753 | ||
Amounts allocated to issuance of Common Stock from Series D offering, shares | 186,000 | ||||
Stock-based compensation | $ 67 | 572,982 | 573,049 | ||
Stock-based compensation, shares | 6,669 | ||||
Balance at Jun. 30, 2018 | $ 8,009 | 35,101,538 | 146,305 | (52,240,613) | (16,984,761) |
Balance, shares at Jun. 30, 2018 | 7,886,207 | ||||
Balance at Dec. 31, 2018 | $ 141,638 | 84,007,612 | 164,232 | (87,186,783) | (2,873,301) |
Balance, shares at Dec. 31, 2018 | 141,634,700 | ||||
Loss for the period | (1,920,510) | (1,920,510) | |||
Other comprehensive income (loss) | (26,638) | (26,638) | |||
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net | 31,915 | 31,915 | |||
Amounts allocated to issuance of Common Stock from Series D offering | $ 18,892 | 3,898,155 | 3,917,047 | ||
Amounts allocated to issuance of Common Stock from Series D offering, shares | 18,889,618 | ||||
Issuance of shares as settlement of financial liabilities | $ 1,190 | 305,866 | 307,056 | ||
Issuance of shares as settlement of financial liabilities, shares | 1,190,141 | ||||
Warrants issued as consideration for placement services | 249,612 | 249,612 | |||
Stock-based compensation | $ 235 | 329,935 | 330,170 | ||
Stock-based compensation, shares | 232,560 | ||||
Balance at Jun. 30, 2019 | $ 161,955 | 88,823,095 | 137,594 | (89,107,293) | 15,351 |
Balance, shares at Jun. 30, 2019 | 161,947,019 | ||||
Balance at Mar. 31, 2019 | $ 146,447 | 85,244,557 | 131,084 | (88,208,436) | (2,686,348) |
Balance, shares at Mar. 31, 2019 | 146,440,814 | ||||
Loss for the period | (898,857) | (898,857) | |||
Other comprehensive income (loss) | 6,510 | 6,510 | |||
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net | 26,287 | 26,287 | |||
Amounts allocated to issuance of Common Stock from Series D offering | $ 15,392 | 3,197,418 | 3,212,810 | ||
Amounts allocated to issuance of Common Stock from Series D offering, shares | 15,389,925 | ||||
Warrants issued as consideration for placement services | 203,366 | 203,366 | |||
Stock-based compensation | $ 116 | 151,467 | 151,583 | ||
Stock-based compensation, shares | 116,280 | ||||
Balance at Jun. 30, 2019 | $ 161,955 | $ 88,823,095 | $ 137,594 | $ (89,107,293) | $ 15,351 |
Balance, shares at Jun. 30, 2019 | 161,947,019 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Loss for the period | $ (1,920,510) | $ (3,810,277) |
Adjustments to reconcile (loss) for the period to net cash used in operating activities: | ||
Depreciation | 26,252 | 58,789 |
Stock-based compensation | 330,170 | 1,134,531 |
Change in the fair value of warrants with down-round protection | (160,028) | |
Linkage difference on principal of loans from stockholders | 3,865 | (1,963) |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | 1,184 | (4,175) |
Decrease in inventory | 49,228 | 22,113 |
(Increase) decrease in other current assets | (52,194) | (24,113) |
Operating lease right-of-use assets | 51,787 | |
(Decrease) increase in accounts payable | (481,558) | (7,404) |
Increase in other current liabilities | 2,520 | 350,318 |
Operating lease liabilities | (51,787) | |
Net cash used in operating activities | (2,041,043) | (2,442,209) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (9,913) | (1,912) |
Net cash used in investing activities | (9,913) | (1,912) |
Cash flows from financing activities | ||
Proceeds allocated to Common Stock from Series D offering, net of cash issuance expenses | 4,165,079 | 1,318,350 |
Proceeds allocated to Series D Warrants, net of cash issuance expenses | 33,495 | 1,100,140 |
Net cash provided by (used in) financing activities | 4,198,574 | 2,418,490 |
Effect of exchange rate changes on cash and cash equivalents | 34,281 | (12,789) |
Increase (decrease) in Cash, Cash equivalents, and restricted cash | 2,181,899 | (38,420) |
Cash, Cash equivalents, and restricted cash at beginning of the period | 149,684 | 93,344 |
Cash, cash equivalents, and restricted cash at end of the period | $ 2,331,583 | $ 54,924 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Payment of management fee | $ 307,056 |
Fair value of warrants issued as consideration for placement agent services | 249,612 |
Five Board Members and Three Members of the Senior Management Team [Member] | |
Issuance of shares of common stock | $ 1,190,141 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 became 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 use by people with diabetes. B. Going concern uncertainty Since its incorporation, the Company has not conducted 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 significant revenues from operations, and therefore they are dependent upon external sources for financing their operations. As of June 30, 2019, the Group has incurred accumulated deficit of $89,107,293, immaterial amount of stockholder’s surplus of $15,351, negative operating cash flows and negative working capital. Management considered the significance of such conditions in relation to the Group’s ability to meet its current and future obligations and determined that these conditions 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 the six months ended June 30, 2019, the Company raised funds in an aggregate amount of approximately $4,198,574 (net of related cash expenses) through the issuance of 1,083,004 units (the “Series D Units”) consisting of (a) 18,889,618 shares (collectively, the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), (b) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $1.80 per share (c) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $3.60 per share, and (d) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $5.40 per share. C. 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 consolidated financial statements, the most significant estimates and assumptions relate to (i) the going concern assumptions , |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018, filed with the Securities and Exchange Commission (“SEC”) on April 15, 2019. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the 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 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 six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 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 its subsidiary. Significant intercompany balances and transactions have been eliminated in consolidation. B. Recently issued accounting pronouncements 1. Accounting Standard Update 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued Accounting Standard Update 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Consistent with the accounting requirement for employee share-based payment awards, awards within the scope of Topic 718 will be measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share-based payment awards will be measured at the grant date. With respect to awards with performance conditions ASU 2018-07 concludes that, consistent with the accounting for employee share-based payment awards, an entity will consider the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. ASU 2018-07 also requires that the classification of equity classified nonemployee share-based payment awards will continue to be subject to the requirements of Topic 718 unless the award was modified after the good has been delivered, the service has been rendered, any other conditions necessary to earn the right to benefit from the instruments have been satisfied, and the nonemployee is no longer providing goods or services. This eliminates the requirement to reassess classification of such awards upon vesting. In addition, ASU 2018-07 includes certain Non-public Entity-Specific Amendments ASU 2018-07 is effective for Public entities in annual periods beginning after December 15, 2018, and interim periods within those years (first quarter of 2019 for the company). Early adoption is permitted, including in an interim period, but not before an entity adopts the new revenue guidance (which was adopted by the Company in its interim financial statements for 2018). An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. The adoption of ASU 2018-07 did not have a significant impact on its consolidated financial statements. 2. Accounting Standards Update 2016-02, “Leases” In February 2016, the FASB issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1. A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and, 2. A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year Company). Early application is permitted for all public business entities upon issuance. The company applied the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach do not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The new standard also provides practical expedients for an entity’s ongoing accounting. The company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means, for those leases, the company does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. In addition, the company also elected the transition expedient for short-term leases. Accordingly, the new guidance was not applied for leases that has a term of 12 or fewer months at commencement and does not have a purchase option that the lessee is reasonably certain to exercise. Upon adoption, the company recognized total right of use (“ROU”) assets of $225 thousand, with corresponding liabilities of $225 thousand on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of income and statements of cash flows. Under Topic 842, we determine if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only payments that are fixed and determinable at the time of commencement. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremented borrowing rate is the expected interest rate that the company would have to pay to borrow on a collateralized basis on similar terms and amounts equal to the lease payment and under similar economic environment. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and operating lease liabilities, non-current on our condensed consolidated balance sheets. See also Note 5. |
Recent Events
Recent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Recent Events | NOTE 3 – RECENT EVENTS During the first six months of 2019, we received aggregate net proceeds of approximately $4.2 million (net of related cash expenses), from the issuance and sale in a private placement transaction of 1,083,004 Series D Units consisting of (a) 18,889,618 shares (collectively, the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), (b) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $1.80 per share, (c) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $3.60 per share, and (d) a five year warrant to purchase up to 1,083,004 shares of Common Stock, at an exercise price of $5.40 per share. As of June 30, 2019, the Series D Warrants (issued on December 1, 2017, during 2018 and during the first six months of 2019) are exercisable for an aggregate of 7,351,680 shares of Common Stock, in each case subject to adjustment in certain circumstances. Pursuant to a placement agent agreement (the “Placement Agent Agreement”) with the placement agent, the Company paid the placement agent, as a commission, an amount equal to 10% of the aggregate sales price of the Series D Units sold in each closing, plus a non-accountable expense allowance equal to 3% of the aggregate sales price of the Series D Units sold in such closing. In addition, pursuant to the Placement Agent Agreement, in connection with the closings in the first half of 2019, the Company is required to issue to the placement agent: (a) 5-year warrants to purchase up to 1,888,966 shares of Common Stock at an exercise price of $0.258 per share, (b) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $1.80 per share.(c) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $3.60 per share, and d) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $5.40 per share The terms of such warrants are substantially similar to the Series D Warrants except that the warrants issued to the placement agent are exercisable on a cashless basis and include full ratchet anti-dilution protection. On January 1, 2019, we issued a ten-year non-qualified stock option to our President, for the purchase of 75,000 shares of Common Stock at an exercise price of $4.50 per share, with three-year quarterly vesting commencing on the first quarter after the effective date. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 – INVENTORIES US dollars June 30, December 31, 2019 2018 (unaudited) Raw materials 14,564 13,522 Work in process 1,503,440 1,546,764 Finished products 68,461 67,310 1,586,465 1,627,596 Less – provision for slow moving inventory (*) (1,456,597 ) (1,456,597 ) 129,868 170,999 (*) Management evaluates whether inventory reserve for slow-moving or obsolete items is required. To date, as a result of low volume of revenues generated from the sales of the GlucoTrack® model DF-F glucose monitoring device the Group has recorded reserves with respect to its inventory in the amount of approximately US$ 1,457 thousand during 2017 and 2018. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 5 – LEASES We have entered into several non-cancelable operating lease agreements for our offices and one vehicle. Our leases have original lease periods expiring between 2019 and 2021. Payments due under such lease contracts include primarily fix payments. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs, lease term and discount rate are as follows: US dollars Six Months Ended June 30, 2019 (unaudited) Operating lease cost: Office space 60,000 vehicle 3,826 63,826 Remaining Lease Term Office space 1.42 years vehicle 1.92 years Weighted Average Discount Rate Office space 10 % vehicle 10 % The following is a schedule, by years, of maturities of operating lease liabilities as of June 30, 2019: US dollars June 30, 2019 (unaudited) Period: The remainder of 2019 63,878 2020 117,758 2021 3,878 Total operating lease payments 185,514 Less: imputed interest 12,564 Present value of lease liabilities 172,950 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | NOTE 6 – OTHER CURRENT LIABILITIES US dollars June 30, 2019 December 31, 2018 (unaudited) Employees and related institutions 264,778 239,964 Accrued expenses and other 612,436 917,386 877,214 1,157,350 |
Financing Income (Expense), Net
Financing Income (Expense), Net | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Financing Income (Expense), Net | NOTE 7 – FINANCING INCOME (EXPENSE), NET US dollars US dollars Six-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Israeli CPI linkage difference on principal of loans from stockholders (3,865 ) 1,963 (3,342 ) 1,052 Exchange rate differences 10,569 (5,621 ) 2,506 8,006 Change in fair value of warrants with down round protection - 160,028 - 82,081 Interest expenses on credit from banks and other (7,855 ) (6,302 ) (3,715 ) (3,086 ) Late fee penalty of dividend payments - (44,280 ) - (44,280 ) (1,151 ) 105,788 (4,551 ) 43,773 |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 8 – 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 dividends 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 six and three month periods ended June 30, 2018 and 2017 are as follows: US dollars US dollars Six-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Loss for the period (1,920,510 ) (3,810,277 ) (898,857 ) (1,962,483 ) Cash dividend on Series A Preferred Stock - (8,970 ) - (4,270 ) Stock dividend on Series B Preferred Stock - (585,321 ) - (305,162 ) Stock dividend on Series C Preferred Stock - (467,433 ) - (243,700 ) Loss for the period attributable to common stockholders (1,920,510 ) (4,872,001 ) (898,857 ) (2,515,615 ) Number of shares Number of shares Six-month period Three-month period 2019 2018 2019 2018 Number of shares: Weighted average number of shares used in the computation of basic and diluted earnings per share 147,256,546 7,290,123 149,776,875 7,555,761 Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*) 77,558,958 27,017,190 78,029,732 26,274,884 (*) All outstanding 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 determined to be anti-dilutive |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018, filed with the Securities and Exchange Commission (“SEC”) on April 15, 2019. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the 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 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 six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 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 its subsidiary. Significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | 1. Accounting Standard Update 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued Accounting Standard Update 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Consistent with the accounting requirement for employee share-based payment awards, awards within the scope of Topic 718 will be measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share-based payment awards will be measured at the grant date. With respect to awards with performance conditions ASU 2018-07 concludes that, consistent with the accounting for employee share-based payment awards, an entity will consider the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. ASU 2018-07 also requires that the classification of equity classified nonemployee share-based payment awards will continue to be subject to the requirements of Topic 718 unless the award was modified after the good has been delivered, the service has been rendered, any other conditions necessary to earn the right to benefit from the instruments have been satisfied, and the nonemployee is no longer providing goods or services. This eliminates the requirement to reassess classification of such awards upon vesting. In addition, ASU 2018-07 includes certain Non-public Entity-Specific Amendments ASU 2018-07 is effective for Public entities in annual periods beginning after December 15, 2018, and interim periods within those years (first quarter of 2019 for the company). Early adoption is permitted, including in an interim period, but not before an entity adopts the new revenue guidance (which was adopted by the Company in its interim financial statements for 2018). An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. The adoption of ASU 2018-07 did not have a significant impact on its consolidated financial statements. 2. Accounting Standards Update 2016-02, “Leases” In February 2016, the FASB issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1. A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and, 2. A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year Company). Early application is permitted for all public business entities upon issuance. The company applied the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach do not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The new standard also provides practical expedients for an entity’s ongoing accounting. The company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means, for those leases, the company does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. In addition, the company also elected the transition expedient for short-term leases. Accordingly, the new guidance was not applied for leases that has a term of 12 or fewer months at commencement and does not have a purchase option that the lessee is reasonably certain to exercise. Upon adoption, the company recognized total right of use (“ROU”) assets of $225 thousand, with corresponding liabilities of $225 thousand on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of income and statements of cash flows. Under Topic 842, we determine if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only payments that are fixed and determinable at the time of commencement. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremented borrowing rate is the expected interest rate that the company would have to pay to borrow on a collateralized basis on similar terms and amounts equal to the lease payment and under similar economic environment. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and operating lease liabilities, non-current on our condensed consolidated balance sheets. See also Note 5. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | US dollars June 30, December 31, 2019 2018 (unaudited) Raw materials 14,564 13,522 Work in process 1,503,440 1,546,764 Finished products 68,461 67,310 1,586,465 1,627,596 Less – provision for slow moving inventory (*) (1,456,597 ) (1,456,597 ) 129,868 170,999 (*) Management evaluates whether inventory reserve for slow-moving or obsolete items is required. To date, as a result of low volume of revenues generated from the sales of the GlucoTrack® model DF-F glucose monitoring device the Group has recorded reserves with respect to its inventory in the amount of approximately US$ 1,457 thousand during 2017 and 2018. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Costs, Lease Term and Discount | The components of lease costs, lease term and discount rate are as follows: US dollars Six Months Ended June 30, 2019 (unaudited) Operating lease cost: Office space 60,000 vehicle 3,826 63,826 Remaining Lease Term Office space 1.42 years vehicle 1.92 years Weighted Average Discount Rate Office space 10 % vehicle 10 % |
Schedule of Operating Lease Maturity Payments | The following is a schedule, by years, of maturities of operating lease liabilities as of June 30, 2019: US dollars June 30, 2019 (unaudited) Period: The remainder of 2019 63,878 2020 117,758 2021 3,878 Total operating lease payments 185,514 Less: imputed interest 12,564 Present value of lease liabilities 172,950 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | US dollars June 30, 2019 December 31, 2018 (unaudited) Employees and related institutions 264,778 239,964 Accrued expenses and other 612,436 917,386 877,214 1,157,350 |
Financing Income (Expense), N_2
Financing Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Financing Income (Expense), Net | US dollars US dollars Six-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Israeli CPI linkage difference on principal of loans from stockholders (3,865 ) 1,963 (3,342 ) 1,052 Exchange rate differences 10,569 (5,621 ) 2,506 8,006 Change in fair value of warrants with down round protection - 160,028 - 82,081 Interest expenses on credit from banks and other (7,855 ) (6,302 ) (3,715 ) (3,086 ) Late fee penalty of dividend payments - (44,280 ) - (44,280 ) (1,151 ) 105,788 (4,551 ) 43,773 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Loss and Weighted Average Number of Shares | The loss and the weighted average number of shares used in computing basic and diluted loss per share for the six and three month periods ended June 30, 2018 and 2017 are as follows: US dollars US dollars Six-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Loss for the period (1,920,510 ) (3,810,277 ) (898,857 ) (1,962,483 ) Cash dividend on Series A Preferred Stock - (8,970 ) - (4,270 ) Stock dividend on Series B Preferred Stock - (585,321 ) - (305,162 ) Stock dividend on Series C Preferred Stock - (467,433 ) - (243,700 ) Loss for the period attributable to common stockholders (1,920,510 ) (4,872,001 ) (898,857 ) (2,515,615 ) Number of shares Number of shares Six-month period Three-month period 2019 2018 2019 2018 Number of shares: Weighted average number of shares used in the computation of basic and diluted earnings per share 147,256,546 7,290,123 149,776,875 7,555,761 Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*) 77,558,958 27,017,190 78,029,732 26,274,884 (*) All outstanding 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 determined to be anti-dilutive |
General (Details Narrative)
General (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated deficit | $ 89,107,293 | $ 89,107,293 | $ 87,186,783 | |||||
Stockholder's deficit | $ 15,351 | $ (16,984,761) | 15,351 | $ (16,984,761) | $ (2,686,348) | $ (2,873,301) | $ (16,286,538) | $ (16,574,933) |
Proceeds from issuance of common stock, net of issuance expenses | $ 4,165,079 | 1,318,350 | ||||||
Common stock par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common Stock [Member] | ||||||||
Stockholder's deficit | $ 161,955 | $ 8,009 | $ 161,955 | $ 8,009 | $ 146,447 | $ 141,638 | $ 7,532 | $ 6,824 |
Number of common stock issued | 15,389,925 | 186,000 | 18,889,618 | 621,556 | ||||
Common stock par value | $ 0.001 | $ 0.001 | ||||||
Series D Units [Member] | Exercise Price Three [Member] | ||||||||
Warrant term | 5 years | 5 years | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||||
Warrant exercise price | $ 5.40 | $ 5.40 | ||||||
Series D Units [Member] | ||||||||
Proceeds from issuance of common stock, net of issuance expenses | $ 4,198,574 | |||||||
Number of common stock issued | 1,083,004 | |||||||
Series D Units [Member] | Exercise Price One [Member] | ||||||||
Warrant term | 5 years | 5 years | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||||
Warrant exercise price | $ 1.80 | $ 1.80 | ||||||
Series D Units [Member] | Exercise Price Two [Member] | ||||||||
Warrant term | 5 years | 5 years | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||||
Warrant exercise price | $ 3.60 | $ 3.60 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Right-of-use assets | $ 172,950 | |
Operating liabilities | 172,950 | |
ASU 2016-02 [Member] | ||
Right-of-use assets | 225,000 | |
Operating liabilities | $ 225,000 |
Recent Events (Details Narrativ
Recent Events (Details Narrative) - USD ($) | Jan. 02, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Common stock par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common Stock [Member] | ||||||
Number of common stock issued | 15,389,925 | 186,000 | 18,889,618 | 621,556 | ||
Common stock par value | $ 0.001 | $ 0.001 | ||||
Number of stock option issued | 116,280 | 6,669 | 232,560 | 13,338 | ||
Series D Units [Member] | Exercise Price Three [Member] | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 5.40 | $ 5.40 | ||||
Series D Units [Member] | ||||||
Net proceeds from issuance and sale through private placement | $ 4,200,000 | |||||
Number of common stock issued | 1,083,004 | |||||
Series D Units [Member] | Placement Agent Agreement [Member] | ||||||
Placement agent commission, description | The Company paid the placement agent, as a commission, an amount equal to 10% of the aggregate sales price of the Series D Units sold in each closing, plus a non-accountable expense allowance equal to 3% of the aggregate sales price of the Series D Units sold in such closing. In addition, pursuant to the Placement Agent Agreement, in connection with the closings in the first half of 2019, the Company is required to issue to the placement agent: (a) 5-year warrants to purchase up to 1,888,966 shares of Common Stock at an exercise price of $0.258 per share, (b) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $1.80 per share.(c) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $3.60 per share, and d) 5-year warrants to purchase up to 108,305 shares of Common Stock at an exercise price of $5.40 per share The terms of such warrants are substantially similar to the Series D Warrants except that the warrants issued to the placement agent are exercisable on a cashless basis and include full ratchet anti-dilution protection. | |||||
Percentage of agent commission equal to sale price | 10.00% | |||||
Percentage of non-accountable expense as allowance of sales price | 3.00% | |||||
Series D Units [Member] | Exercise Price One [Member] | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 1.80 | $ 1.80 | ||||
Series D Units [Member] | Exercise Price One [Member] | Placement Agent Agreement [Member] | ||||||
Warrants to purchase common stock | 1,888,966 | 1,888,966 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 0.258 | $ 0.258 | ||||
Series D Units [Member] | Exercise Price Two [Member] | ||||||
Warrants to purchase common stock | 1,083,004 | 1,083,004 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 3.60 | $ 3.60 | ||||
Series D Units [Member] | Exercise Price Two [Member] | Placement Agent Agreement [Member] | ||||||
Warrants to purchase common stock | 108,305 | 108,305 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 1.80 | $ 1.80 | ||||
Series D Units [Member] | Exercise Price Three [Member] | Placement Agent Agreement [Member] | ||||||
Warrants to purchase common stock | 108,305 | 108,305 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 3.60 | $ 3.60 | ||||
Series D Units [Member] | Exercise Price Four [Member] | Placement Agent Agreement [Member] | ||||||
Warrants to purchase common stock | 108,305 | 108,305 | ||||
Warrant term | 5 years | 5 years | ||||
Warrant exercise price | $ 5.40 | $ 5.40 | ||||
Series D Units [Member] | Private Placement [Member] | ||||||
Number of common stock issued | 1,083,004 | |||||
Series D Units [Member] | Non Qualified Stock Option [Member] | President [Member] | ||||||
Number of stock option issued | 75,000 | |||||
Common stock exercise price | $ 4.50 | |||||
Non-qualified stock option, description | we issued a ten-year non-qualified stock option to our President, for the purchase of 75,000 shares of Common Stock at an exercise price of $4.50 per share | |||||
Vesting period, description | three-year quarterly vesting commencing on the first quarter after the effective date | |||||
Series D Warrants [Member] | ||||||
Warrants to purchase common stock | 7,351,680 | 7,351,680 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 14,564 | $ 13,522 | |
Work in process | 1,503,440 | 1,546,764 | |
Finished products | 68,461 | 67,310 | |
Total | 1,586,465 | 1,627,596 | |
Less - provision for slow moving inventory | [1] | (1,456,597) | (1,456,597) |
Inventory, net | $ 129,868 | $ 170,999 | |
[1] | Management evaluates whether inventory reserve for slow-moving or obsolete items is required. To date, as a result of low volume of revenues generated from the sales of the GlucoTrack® model DF-F glucose monitoring device the Group has recorded reserves with respect to its inventory in the amount of approximately US $1,457 thousand during 2017 and 2018 |
Inventories - Schedule of Inv_2
Inventories - Schedule of Inventories (Details) (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory | [1] | $ 1,456,597 | $ 1,456,597 | |
GlucoTrack Model DF-F Glucose Monitoring Device [Member] | ||||
Inventory | $ 1,456,597 | $ 1,456,597 | ||
[1] | Management evaluates whether inventory reserve for slow-moving or obsolete items is required. To date, as a result of low volume of revenues generated from the sales of the GlucoTrack® model DF-F glucose monitoring device the Group has recorded reserves with respect to its inventory in the amount of approximately US $1,457 thousand during 2017 and 2018 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs, Lease Term and Discount (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Operating lease cost | $ 63,826 |
Office Space [Member] | |
Operating lease cost | $ 60,000 |
Remaining Lease Term | 1 year 5 months 1 day |
Weighted Average Discount Rate | 10.00% |
Vehicles [Member | |
Operating lease cost | $ 3,826 |
Remaining Lease Term | 1 year 11 months 1 day |
Weighted Average Discount Rate | 10.00% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity Payments (Details) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
The remainder of 2019 | $ 63,878 |
2020 | 117,758 |
2021 | 3,878 |
Total operating lease payments | 185,514 |
Less: imputed interest | 12,564 |
Present value of lease liabilities | $ 172,950 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Employees and related institutions | $ 264,778 | $ 239,964 |
Accrued expenses and other | 612,436 | 917,386 |
Other Current Liabilities | $ 877,214 | $ 1,157,350 |
Financing Income (Expense), N_3
Financing Income (Expense), Net - Schedule of Financing Income (Expense), Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Israeli CPI linkage difference on principal of loans from stockholders | $ (3,342) | $ 1,052 | $ (3,865) | $ 1,963 |
Exchange rate differences | 2,506 | 8,006 | 10,569 | (5,621) |
Change in fair value of warrants with down round protection | 82,081 | 160,028 | ||
Interest expenses on credit from banks and other | (3,715) | (3,086) | (7,855) | (6,302) |
Late fee penalty of dividend payments | (44,280) | (44,280) | ||
Financing (income) expenses, net | $ (4,551) | $ 43,773 | $ (1,151) | $ 105,788 |
Loss Per Share - Schedule of Lo
Loss Per Share - Schedule of Loss and Weighted Average Number of Shares (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Loss for the period | $ (898,857) | $ (1,962,483) | $ (1,920,510) | $ (3,810,277) | |
Loss for the period attributable to common stockholders | $ (898,857) | $ (2,515,615) | $ (1,920,510) | $ (4,872,001) | |
Weighted average number of shares used in the computation of basic and diluted earnings per share | 149,776,875 | 7,555,761 | 147,256,546 | 7,290,123 | |
Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share | [1] | 78,029,732 | 26,274,884 | 77,558,958 | 27,017,190 |
Series A Preferred Stock [Member] | |||||
Cash Dividend on Preferred Stock | $ (4,270) | $ (8,970) | |||
Series B Preferred Stock [Member] | |||||
Cash Dividend on Preferred Stock | (305,162) | (585,321) | |||
Series C Preferred Stock [Member] | |||||
Cash Dividend on Preferred Stock | $ (243,700) | $ (467,433) | |||
[1] | All outstanding 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 determined to be anti-dilutive. |