GlucoTrack (GCTK) 10-Q 13 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 13, 2019
Document And Entity Information
Entity Registrant Name	Integrity Applications, Inc.
Entity Central Index Key	0001506983
Document Type	10-Q
Document Period End Date	Sep. 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		162,063,299
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 1,222,280	$ 97,079
Accounts receivable, net	30,369	22,779
Inventories	139,129	170,999
Other current assets	48,514	23,288
Total current assets	1,440,292	314,145
Operating lease right-of-use assets, net	147,042
Property and Equipment, Net	144,912	149,779
Long-Term Restricted Cash	56,624	52,605
Funds in Respect of Employee Rights Upon Retirement	184,771	171,657
Total assets	1,973,641	688,186
Current Liabilities
Accounts payable	1,553,955	2,064,259
Operating lease liabilities, current	122,507
Other current liabilities	763,760	1,157,350
Total current liabilities	2,440,222	3,221,609
Long-Term Liabilities
Long-Term Loans from Stockholders	186,929	168,221
Operating lease liabilities, non-current	24,535
Liability for Employee Rights Upon Retirement	184,771	171,657
Total long-term liabilities	396,235	339,878
Total liabilities	2,836,457	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 September 30, 2019 and December 31, 2018; 162,063,299 and 141,634,700 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	162,071	141,638
Additional paid in capital	88,944,576	84,007,612
Accumulated other comprehensive income	134,607	164,232
Accumulated deficit	(90,104,070)	(87,186,783)
Total stockholders' (deficit) surplus	(862,816)	(2,873,301)
Total liabilities and stockholders' deficit	$ 1,973,641	$ 688,186

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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	162,063,299	141,634,700
Common stock, shares outstanding	162,063,299	141,634,700

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenues	$ 4,175		$ 140,255	$ 43,488
Research and development expenses	377,377	534,129	1,203,616	1,818,108
Selling and marketing expenses	168,259	265,282	444,555	857,386
General and administrative expenses	439,012	811,695	1,391,916	2,894,553
Total operating expenses	984,648	1,611,106	3,040,087	5,570,847
Operating loss	(980,473)	(1,611,106)	(2,899,832)	(5,527,171)
Financing income (expenses), net	(16,304)	38,228	(17,455)	144,016
Loss for the period	(996,777)	(1,572,878)	(2,917,287)	(5,383,155)
Other comprehensive income:
Foreign currency translation adjustment	(2,987)	4,740	(29,625)	40,370
Comprehensive loss for the period	$ (999,764)	$ (1,568,138)	$ (2,946,912)	$ (5,342,785)
Loss per share (Basic)	$ (0.01)	$ (0.31)	$ (0.01)	$ (0.96)
Loss per share (Diluted)	$ (0.01)	$ (0.31)	$ (0.01)	$ (0.96)
Common shares used in computing Basic loss per share	162,012,688	8,249,442	152,240,776	7,745,275
Common shares used in computing Diluted loss per share	162,012,688	8,249,442	152,240,776	7,745,275

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				(5,383,155)	(5,383,155)
Other comprehensive income (loss)			40,370		40,370
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net		1,983,502			1,983,502
Stock dividend on Series C Preferred Stock	$ 364	892,905		(893,269)
Stock dividend on Series C Preferred Stock shares	364,451
Stock dividend on Series B Preferred Stock	$ 456	1,118,094		(1,118,550)
Stock dividend on Series B Preferred Stock, shares	456,365
Cash dividend on Series A Preferred Stock				(13,141)	(13,141)
Amounts allocated to issuance of Common Stock from Series D offering	$ 1,206	2,373,230			2,374,436
Amounts allocated to issuance of Common Stock from Series D offering, shares	1,206,444
Stock-based compensation	$ 16	1,577,000		1,577,016
Stock-based compensation, shares	15,560
Balance at Sep. 30, 2018	$ 8,866	38,620,911	151,045	(54,776,727)	(15,995,905)
Balance, shares at Sep. 30, 2018	8,864,612
Balance at Jun. 30, 2018	$ 8,009	35,104,538	146,305	(52,240,613)	(16,984,761)
Balance, shares at Jun. 30, 2018	7,886,207
Loss for the period				(1,572,878)	(1,572,878)
Other comprehensive income (loss)			4,740		4,740
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net		965,007			965,007
Stock dividend on Series C Preferred Stock	$ 174	425,662		(425,835)
Stock dividend on Series C Preferred Stock shares	173,739
Stock dividend on Series B Preferred Stock	$ 217	533,012		(533,230)
Stock dividend on Series B Preferred Stock, shares	217,556
Cash dividend on Series A Preferred Stock				(4,172)	(4,172)
Amounts allocated to issuance of Common Stock from Series D offering	$ 584	1,153,089			1,153,673
Amounts allocated to issuance of Common Stock from Series D offering, shares	584,888
Stock-based compensation	$ (118)	442,603			442,485
Stock-based compensation, shares	2,222
Balance at Sep. 30, 2018	$ 8,866	38,620,911	151,045	(54,776,727)	(15,995,905)
Balance, shares at Sep. 30, 2018	8,864,612
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				(2,917,287)	(2,917,287)
Other comprehensive income (loss)			(29,625)		(29,625)
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
Stock-based compensation	$ 351	451,416			451,767
Stock-based compensation, shares	348,840
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
Balance at Sep. 30, 2019	$ 162,071	88,944,576	134,607	(90,104,070)	(862,816)
Balance, shares at Sep. 30, 2019	162,063,299
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
Loss for the period				(996,777)	(996,777)
Other comprehensive income (loss)			(2,987)		(2,987)
Amounts allocated to Series D-1, D-2 and Series D-3 Warrants, net
Stock-based compensation	$ 116	121,481			121,597
Stock-based compensation, shares	116,280
Issuance of shares as settlement of financial liabilities
Issuance of shares as settlement of financial liabilities, shares
Warrants issued as consideration for placement services
Balance at Sep. 30, 2019	$ 162,071	$ 88,944,576	$ 134,607	$ (90,104,070)	$ (862,816)
Balance, shares at Sep. 30, 2019	162,063,299

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Loss for the period	$ (2,917,287)	$ (5,383,155)
Adjustments to reconcile (loss) for the period to net cash used in operating activities:
Depreciation	38,253	58,789
Stock-based compensation	451,767	1,577,016
Change in the fair value of warrants with down-round protection		(251,790)
Linkage difference on principal of loans from stockholders	5,708	(1,266)
Changes in assets and liabilities:
Decrease in accounts receivable	(5,777)	(5,590)
Increase in inventory	43,140	20,979
(Decrease) increase in other current assets	(23,566)	(31,717)
Operating Lease right-of-use assets	77,695
(Decrease) increase in accounts payable	(573,014)	(165,580)
Increase in other current liabilities	(121,732)	379,854
Operating lease liabilities	(77,695)
Net cash used in operating activities	(3,102,508)	(3,802,460)
Cash flows from investing activities:
Purchase of property and equipment	(22,554)	(3,505)
Increase in long-term restricted cash		(10,164)
Net cash used in investing activities	(22,554)	(13,669)
Cash flows from financing activities
Proceeds allocated to Common Stock from Series D offering, net of cash issuance expenses	4,165,079	2,563,839
Proceeds allocated to Series D Warrants, net of cash issuance expenses	33,495	2,141,989
Net cash provided by financing activities	4,198,574	4,705,828
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	55,708	(1,612)
Increase (decrease) in cash, cash equivalents, and restricted cash	1,129,220	888,087
Cash, cash equivalents, and restricted cash at beginning of the period	149,684	53,782
Cash, cash equivalents, and restricted cash at end of the period	$ 1,278,904	$ 941,869

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2019USD ($)$ / shares
Payment of management fee | $	$ 307,056
Fair value of warrants issued as consideration for placement agent services | $	$ 249,612
Expected term of options (years)	5 years
Share price	$ 0.258	[1]
Minimum [Member]
Exercise price	0.258
Fair value	0.004
Maximum [Member]
Exercise price	5.400
Fair value	$ 0.130
Dividend Yield [Member]
Fair value of warrant measurement inputs	0
Expected Volatility [Member]
Fair value of warrant measurement inputs	0.5621	[2]
Risk Free Interest Rate [Member]
Fair value of warrant measurement inputs	0.025
Five Board Members and Three Members of the Senior Management Team [Member]
Issuance of shares of common stock | $	$ 1,190,141
[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 June 2019. In reaching its estimation for such periods, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series D Units at December 31, 2018.
[2]	Due to the low trading volume of the Company's Common Stock, the expected volatility was based on a sample of 248 companies operating in the Healthcare Products industry.

General

General	9 Months Ended
	Sep. 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 September 30, 2019, the Group has incurred accumulated deficit of $90,104,070, 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 nine months ended September 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	9 Months Ended
	Sep. 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 nine months ended September 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. Recently issued accounting pronouncements 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. 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	9 Months Ended
	Sep. 30, 2019
Recent Events
Recent Events	NOTE 3 – RECENT EVENTS During the first nine 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 September 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	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE 4 – INVENTORIES US dollars September 30, December 31, 2019 2018 (unaudited) Raw materials 23,195 13,522 Work in process 1,489,646 1,546,764 Finished products 82,885 67,310 1,595,726 1,627,596 Less – provision for slow moving inventory (*) (1,456,597 ) (1,456,597 ) 139,129 170,999

Leases

Leases	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2019 (unaudited) Operating lease cost: Office space 90,000 Vehicle 5,799 95,799 Remaining Lease Term Office space 1.17 years vehicle 1.67 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 September 30, 2019: US dollars September 30, 2019 (unaudited) Period: The remainder of 2019 31,939 2020 117,758 2021 6,774 Total operating lease payments 156,471 Less: imputed interest 9,429 Present value of lease liabilities 147,042

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	NOTE 6 – OTHER CURRENT LIABILITIES US dollars September 30, 2019 December 31, 2018 (unaudited) Employees and related institutions 211,709 239,964 Accrued expenses and other 552,051 917,386 763,760 1,157,350

Financing Income (Expense), Net

Financing Income (Expense), Net	9 Months Ended
	Sep. 30, 2019
Other Income and Expenses [Abstract]
Financing Income (Expense), Net	NOTE 7 – FINANCING INCOME (EXPENSE), NET US dollars US dollars Nine-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Israeli CPI linkage difference on principal of loans from stockholders (5,708 ) 1,266 (1,843 ) (697 ) Exchange rate differences 1,808 (14,410 ) (8,761 ) (8,789 ) Change in fair value of warrants with down round protection - 251,790 - 91,762 Interest expenses on credit from banks and other (13,555 ) (11,853 ) (5,700 ) (5,551 ) Late fee penalty of dividend payments - (82,777 ) - (38,497 ) (17,455 ) 144,016 (16,304 ) 38,228

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 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 nine and three month periods ended September 30, 2019 and 2018 are as follows: US dollars US dollars Nine-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Loss for the period (2,917,287) (5,383,155 ) (996,777 ) (1,572,878 ) Cash dividend on Series A Preferred Stock - (13,141 ) - (4,171 ) Stock dividend on Series B Preferred Stock - (1,118,550 ) - (533,229 ) Stock dividend on Series C Preferred Stock - (893,269 ) - (425,836 ) Loss for the period attributable to common stockholders (2,917,287 ) (7,408,115 ) (996,777 ) (2,536,114 ) Number of shares Number of shares Nine-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 152,240,776 7,745,275 162,012,688 8,249,442 Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*) 78,900,534 26,938,336 81,527,505 28,470,324 (*) 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

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 9 – SUBSEQUENT EVENTS On October 25, 2019, David Podwalski resigned as an officer and director of Integrity Applications, Inc., retroactive to September 17, 2019, in order to pursue other business interests. In conjunction with this separation, he has been issued $25,000 of the Company’s common stock, at the closing price on September 17, 2019, which was $0.50 per share, in a transaction exempt from registration under Section 4(a)(2) under the Securities Act of 1933, as amended, and will receive a cash payment of $25,000 at the time the Company raises an additional $2,000,000 in net proceeds from sale of its securities. He has also agreed to not sell any shares of common stock owned by him for one year and thereafter can only sell shares subject to volume limitations set forth in the Separation Agreement between the Company and him, of even date. Effective October 31, 2019, the Company appointed Allen E. Danzig to the Company’s Board of Directors and as Chair of the Nominating, Governance and Compensation Committee. Mr. Danzig has been qualified as an independent director, as defined under Nasdaq rules, and he will be compensated for his service consistent with the Company’s compensation structure for non-employee directors.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 nine months ended September 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	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. 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)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	US dollars September 30, December 31, 2019 2018 (unaudited) Raw materials 23,195 13,522 Work in process 1,489,646 1,546,764 Finished products 82,885 67,310 1,595,726 1,627,596 Less – provision for slow moving inventory (*) (1,456,597 ) (1,456,597 ) 139,129 170,999

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2019 (unaudited) Operating lease cost: Office space 90,000 Vehicle 5,799 95,799 Remaining Lease Term Office space 1.17 years vehicle 1.67 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 September 30, 2019: US dollars September 30, 2019 (unaudited) Period: The remainder of 2019 31,939 2020 117,758 2021 6,774 Total operating lease payments 156,471 Less: imputed interest 9,429 Present value of lease liabilities 147,042

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	US dollars September 30, 2019 December 31, 2018 (unaudited) Employees and related institutions 211,709 239,964 Accrued expenses and other 552,051 917,386 763,760 1,157,350

Financing Income (Expense), N_2

Financing Income (Expense), Net (Tables)	9 Months Ended
	Sep. 30, 2019
Other Income and Expenses [Abstract]
Schedule of Financing Income (Expense), Net	US dollars US dollars Nine-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Israeli CPI linkage difference on principal of loans from stockholders (5,708 ) 1,266 (1,843 ) (697 ) Exchange rate differences 1,808 (14,410 ) (8,761 ) (8,789 ) Change in fair value of warrants with down round protection - 251,790 - 91,762 Interest expenses on credit from banks and other (13,555 ) (11,853 ) (5,700 ) (5,551 ) Late fee penalty of dividend payments - (82,777 ) - (38,497 ) (17,455 ) 144,016 (16,304 ) 38,228

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 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 nine and three month periods ended September 30, 2019 and 2018 are as follows: US dollars US dollars Nine-month period Three-month period 2019 2018 2019 2018 (unaudited) (unaudited) Loss for the period (2,917,287) (5,383,155 ) (996,777 ) (1,572,878 ) Cash dividend on Series A Preferred Stock - (13,141 ) - (4,171 ) Stock dividend on Series B Preferred Stock - (1,118,550 ) - (533,229 ) Stock dividend on Series C Preferred Stock - (893,269 ) - (425,836 ) Loss for the period attributable to common stockholders (2,917,287 ) (7,408,115 ) (996,777 ) (2,536,114 ) Number of shares Number of shares Nine-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 152,240,776 7,745,275 162,012,688 8,249,442 Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*) 78,900,534 26,938,336 81,527,505 28,470,324 (*) 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 ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accumulated deficit	$ 90,104,070		$ 87,186,783
Proceeds from issuance of common stock, net of issuance expenses	$ 4,165,079	$ 2,563,839
Common stock par value	$ 0.001		$ 0.001
Warrant term	5 years
Common Stock [Member]
Number of common stock issued	18,889,618
Common stock par value	$ 0.001
Series D Units [Member] | Exercise Price Three [Member]
Warrant term	5 years
Warrants to purchase common stock	1,083,004
Warrant exercise price	$ 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
Warrants to purchase common stock	1,083,004
Warrant exercise price	$ 1.80
Series D Units [Member] | Exercise Price Two [Member]
Warrant term	5 years
Warrants to purchase common stock	1,083,004
Warrant exercise price	$ 3.60

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Right-of-use assets	$ 147,042
Operating liabilities	147,042
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	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Common stock par value		$ 0.001		$ 0.001		$ 0.001
Warrant term		5 years		5 years
Common Stock [Member]
Number of common stock issued				18,889,618
Common stock par value		$ 0.001		$ 0.001
Number of stock option issued		116,280	2,222	348,840	15,560
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 ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 23,195	$ 13,522
Work in process	1,489,646	1,546,764
Finished products	82,885	67,310
Total	1,595,726	1,627,596
Less - provision for slow moving inventory	(1,456,597)	(1,456,597)
Inventory, net	$ 139,129	$ 170,999

Leases - Schedule of Lease Cost

Leases - Schedule of Lease Costs, Lease Term and Discount (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Operating lease cost	$ 95,799
Office Space [Member]
Operating lease cost	$ 90,000
Remaining Lease Term	1 year 2 months 1 day
Weighted Average Discount Rate	10.00%
Vehicles [Member
Operating lease cost	$ 5,799
Remaining Lease Term	1 year 8 months 2 days
Weighted Average Discount Rate	10.00%

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Maturity Payments (Details)	Sep. 30, 2019USD ($)
Leases [Abstract]
The remainder of 2019	$ 31,939
2020	117,758
2021	6,774
Total operating lease payments	156,471
Less: imputed interest	9,429
Present value of lease liabilities	$ 147,042

Other Current Liabilities - Sch

Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Employees and related institutions	$ 211,709	$ 239,964
Accrued expenses and other	552,051	917,386
Other Current Liabilities	$ 763,760	$ 1,157,350

Financing Income (Expense), N_3

Financing Income (Expense), Net - Schedule of Financing Income (Expense), Net (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Income and Expenses [Abstract]
Israeli CPI linkage difference on principal of loans from stockholders	$ (1,843)	$ (697)	$ (5,708)	$ 1,266
Exchange rate differences	(8,761)	(8,789)	1,808	(14,410)
Change in fair value of warrants with down round protection		91,762		251,790
Interest expenses on credit from banks and other	(5,700)	(5,551)	(13,555)	(11,853)
Late fee penalty of dividend payments		(38,497)		(82,777)
Financing (income) expenses, net	$ (16,304)	$ 38,228	$ (17,455)	$ 144,016

Loss Per Share - Schedule of Lo

Loss Per Share - Schedule of Loss and Weighted Average Number of Shares (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2019		Sep. 30, 2018		Sep. 30, 2019		Sep. 30, 2018
Loss for the period	$ (996,777)		$ (1,572,878)		$ (2,917,287)		$ (5,383,155)
Loss for the period attributable to common stockholders	$ (996,777)		$ (2,536,114)		$ (2,917,287)		$ (7,408,115)
Weighted average number of shares used in the computation of basic and diluted earnings per share	162,012,688		8,249,442		152,240,776		7,745,275
Total weighted average number of common shares related to outstanding options and warrants excluded from the calculations of diluted loss per share	81,527,505	[1]	28,470,324	[1]	78,900,534	[1]	26,938,336
Series A Preferred Stock [Member]
Cash Dividend on Preferred Stock			$ (4,171)				$ (13,141)
Series B Preferred Stock [Member]
Cash Dividend on Preferred Stock			(533,229)				(1,118,550)
Series C Preferred Stock [Member]
Cash Dividend on Preferred Stock			$ (425,836)				$ (893,269)
[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

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Oct. 25, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Issuance of common stock, value				$ 2,503,385
Proceeds from issuance of common stock		$ 4,165,079	$ 2,563,839
Annual revenue				$ 17,000,000,000
Subsequent Event [Member]
Issuance of common stock, value	$ 25,000
Share issued price per share	$ 0.50
Proceeds from issuance of common stock	$ 25,000
Net proceeds from sale of its securities	$ 2,000,000