Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 13, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Interactive Data Current | Yes | ||
Entity Registrant Name | DarioHealth Corp. | ||
Entity Current Reporting Status | Yes | ||
Entity Central Index Key | 0001533998 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 19,929,614 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Trading Symbol | DRIO | ||
Entity Common Stock, Shares Outstanding | 3,101,410 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 20,395 | $ 10,997 |
Short-term restricted bank deposits | 191 | 180 |
Trade Receivables | 672 | 168 |
Inventories | 1,414 | 1,377 |
Other accounts receivable and prepaid expenses | 267 | 380 |
Total current assets | 22,939 | 13,102 |
NON-CURRENT ASSETS: | ||
Deposits | 17 | 43 |
Operation lease right of use assets | 765 | 0 |
Long-term assets | 200 | 211 |
Property and equipment, net | 648 | 733 |
Total non-current assets | 1,630 | 987 |
Total assets | 24,569 | 14,089 |
CURRENT LIABILITIES: | ||
Trade payables | 1,656 | 2,574 |
Deferred Revenues | 1,223 | 736 |
Operating lease liability | 317 | 0 |
Other accounts payable and accrued expenses | 2,024 | 1,854 |
Total current liabilities | 5,220 | 5,164 |
OPERATING LEASE LIABILITY | 455 | 0 |
STOCKHOLDERS' EQUITY | ||
Common Stock of $0.0001 par value - Authorized: 160,000,000 shares at December 31, 2019 and 2018; Issued and Outstanding: 2,235,649 and 1,831,746 shares at December 31, 2019 and 2018, respectively ***) | 0 | 0 |
Preferred Stock of $0.0001 par value - Authorized: 5,000,000 shares at December 31, 2019 and 2018; Issued and Outstanding: 21,375 at December 31, 2019 | 0 | 0 |
Additional paid-in capital | 129,039 | 98,179 |
Accumulated deficit | (110,145) | (89,254) |
Total stockholders' equity | 18,894 | 8,925 |
Total liabilities and stockholders' equity | $ 24,569 | $ 14,089 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 2,235,649 | 1,831,746 |
Common stock, shares, outstanding | 2,235,649 | 1,831,746 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 21,375 | |
Preferred stock, shares outstanding | 21,375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Revenues | $ 7,559 | $ 7,394 |
Cost of revenues | 4,962 | 5,629 |
Gross profit | 2,597 | 1,765 |
Operating expenses: | ||
Research and development | 3,692 | 3,676 |
Sales and marketing | 11,127 | 10,309 |
General and administrative | 5,483 | 5,468 |
Total operating expenses | 20,302 | 19,453 |
Operating loss | (17,705) | (17,688) |
Revaluation of warrants | 0 | (1) |
Financial expense, net | (31) | (116) |
Total financial expenses, net | (31) | (115) |
Net loss | (17,736) | (17,803) |
Deemed dividend | 3,155 | 493 |
Net loss attributable to holders of Common Stock | $ (20,891) | $ (18,296) |
Net loss per share: | ||
Basic and diluted loss per share ***) | $ 8 | $ 15.63 |
Weighted average number of Common Stock used in computing basic and diluted net loss per share ***) | 2,266,135 | 1,170,645 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 0 | $ 0 | $ 74,899,000 | $ (70,958,000) | $ 3,941,000 |
Balance (in shares) at Dec. 31, 2017 | 705,067 | 0 | |||
Payment for executives and directors under stock for salary program | $ 0 | $ 0 | 1,055,000 | 0 | 1,055,000 |
Payment for executives and directors under stock for salary program (in shares) | 38,285 | 0 | |||
Issuance of Common Stock to directors and employees | $ 0 | $ 0 | 1,786,000 | 0 | 1,786,000 |
Issuance of Common Stock to directors and employees (in shares) | 57,642 | 0 | |||
Issuance of Common Stock to consultants and service provider | $ 0 | $ 0 | 504,000 | 0 | 504,000 |
Issuance of Common Stock to consultants and service provider (in shares) | 18,500 | 0 | |||
Issuance of Common stock in May 2018 warrant exchange agreement | $ 0 | $ 0 | 493,000 | (493,000) | 0 |
Issuance of Common stock in May 2018 warrant exchange agreement (In Shares) | 31,838 | 0 | |||
Issuance of Common Stock in 2018 private placements, net of issuance cost | $ 0 | $ 0 | 9,354,000 | 0 | 9,354,000 |
Issuance of Common Stock in 2018 private placements, net of issuance cost (in shares) | 478,954 | ||||
Issuance of Preferred Stock in 2018 Private placement, net of issuance cost | $ 0 | $ 0 | 9,269,000 | 0 | 9,269,000 |
Issuance of Preferred Stock in 2018 Private placement, net of issuance cost (in shares) | 156,217 | ||||
Conversion of Preferred Stock to Common Stock | $ 0 | $ 0 | 0 | 0 | 0 |
Conversion of Preferred Stock to Common Stock (in shares) | 501,460 | (156,217) | |||
Stock-based compensation | $ 0 | $ 0 | 819,000 | 0 | 819,000 |
Net loss | 0 | 0 | 0 | (17,803,000) | (17,803,000) |
Balance at Dec. 31, 2018 | $ 0 | $ 0 | 98,179,000 | (89,254,000) | 8,925,000 |
Balance (in shares) at Dec. 31, 2018 | 1,831,746 | 0 | |||
Payment for executives and directors under stock for salary program | $ 0 | $ 0 | 1,011,000 | 0 | 1,011,000 |
Payment for executives and directors under stock for salary program (in shares) | 104,363 | 0 | |||
Exercise of options | $ 0 | $ 0 | 0 | 0 | $ 0 |
Exercise of options (In Shares) | 406 | 0 | 406 | ||
Issuance of Common Stock to directors and employees | $ 0 | $ 0 | 795,000 | 0 | $ 795,000 |
Issuance of Common Stock to directors and employees (in shares) | 51,613 | 0 | |||
Issuance of Common Stock to consultants and service provider | $ 0 | $ 0 | 59,000 | 0 | 59,000 |
Issuance of Common Stock to consultants and service provider (in shares) | 4,753 | 0 | |||
Issuance of Common Stock and Pre-funded warrants in 2019 Public Offering, net of issuance costs | $ 0 | $ 0 | 6,558,000 | 0 | 6,558,000 |
Issuance of Common Stock and Pre-funded warrants in 2019 Public Offering, net of issuance costs (in shares) | 242,768 | 0 | |||
Issuance of Preferred Stock in 2019 Private placement, net of issuance cost | $ 0 | $ 0 | 18,689,000 | 0 | 18,689,000 |
Issuance of Preferred Stock in 2019 private placement, net of issuance cost(in shares) | 0 | 21,375 | |||
Deemed dividend related to issue of preferred shares | $ 0 | $ 0 | 3,155,000 | (3,155,000) | 0 |
Deemed dividend related to issue of preferred shares (in Shares) | 0 | 0 | |||
Stock-based compensation | $ 0 | $ 0 | 593,000 | 0 | 593,000 |
Net loss | 0 | 0 | 0 | (17,736,000) | (17,736,000) |
Balance at Dec. 31, 2019 | $ 0 | $ 0 | $ 129,039,000 | $ (110,145,000) | $ 18,894,000 |
Balance (in shares) at Dec. 31, 2019 | 2,235,649 | 21,375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (17,736) | $ (17,803) |
Adjustments required to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation, common stock and stock for salary to directors, employees, consultants and service provider | 2,257 | 3,758 |
Depreciation | 183 | 207 |
Change in operating lease right of use assets | 368 | 0 |
Decrease (increase) in trade receivables | (504) | 114 |
Decrease in other accounts receivable and prepaid expenses and Long-term assets | 124 | 13 |
Increase in inventories | (37) | (193) |
Increase (decrease) in trade payables | (918) | 722 |
Increase in other accounts payable and accrued expenses | 371 | 977 |
Increase in deferred revenues | 487 | 736 |
Change in fair value of warrants to purchase shares of Common Stock | 0 | (1) |
Change in operating lease liability | (320) | 0 |
Net cash used in operating activities | (15,725) | (11,470) |
Cash flows from investing activities: | ||
Investment in deposit | (15) | (1) |
Purchase of property and equipment | (98) | (71) |
Net cash provided by (used in) investing activities | (113) | (72) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock in 2019 Public Offering and Preferred stock in 2019 and 2018 private placement, net of issuance cost | 25,247 | 18,743 |
Net cash provided by financing activities | 25,247 | 18,743 |
Increase in cash, cash equivalents and short-term restricted bank deposits | 9,409 | 7,201 |
Cash, cash equivalents and short-term restricted bank deposits at beginning of year | 11,126 | 3,925 |
Cash, cash equivalents and short-term restricted bank deposits at end of year | $ 20,535 | $ 11,126 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2019 | |
GENERAL | |
GENERAL | NOTE 1:- GENERAL a. DarioHealth Corp. (the “Company”) was incorporated in Delaware and commenced operations on August 11, 2011. In July 2016, the Company’s Board of Directors approved the change of the Company’s name to DarioHealth Corp., which became effective on July 28, 2016. The Company is a digital health (mHealth) company that is developing and commercializing a patented and proprietary technology providing consumers with laboratory-testing capabilities using smart phones and other mobile devices. The Company’s flagship product, Dario™, also referred to as the Dario™ Smart Diabetes Management Solution, is a mobile, real-time, cloud-based, diabetes management solution based on an innovative, multi-feature software application combined with a stylish, ‘all-in-one’, pocket-sized, blood glucose monitoring device, which is called the Dario™ Smart Meter. b. The Company’s wholly owned subsidiary, LabStyle Innovation Ltd. (“Ltd.” or “Subsidiary”), was incorporated and commenced operations on September 14, 2011 in Israel. Its principal business activity is to hold the Company’s intellectual property and to perform research and development, manufacturing, marketing and other business activities. Ltd. has a wholly-owned subsidiary, LabStyle Innovations US LLC, a Delaware limited liability company, which was established in 2014, however it has not started its operations to date and was dissolved at the end of 2017. c. During the year ended December 31, 2019, the Company incurred recurring operating losses and negative cash flows from operating activities amounting to $17,705 and $15,725, respectively. The Company will be required to obtain additional liquidity resources in the near term in order to support the commercialization of its products and maintain its research and development activities. The Company is addressing its liquidity needs by seeking additional funding from public and/or private sources and by ramping up its commercial sales. There are no assurances, however, that the Company will be able to obtain an adequate level of financial resources that are required for the short and long-term development and commercialization of its product. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. d. In December 2015, the United States Food and Drug Administration granted the Subsidiary 510(k) clearance for the Dario Blood Glucose Monitoring System, including its components, the Dario Blood Glucose Meter, Dario Blood Glucose Test Strips, Dario Glucose Control Solutions and the Dario app on the Apple iOS 6.1 platform and higher. e. On March 4, 2016, the Company’s Common Stock, par value $0.0001 per share (the “Common Stock”) and warrants to purchase shares of Common Stock were approved for listing on the Nasdaq Capital Market under the symbols “DRIO” and “DRIOW,” respectively. f. On November 18, 2019, the Company affected a 1-for-20 reverse stock split (referred to herein as the Reverse Stock Split) of its Common Stock. No fractional shares were issued, and no cash or other consideration were paid as a result of the Reverse Stock Split. Instead, the Company issued one additional whole share of the post-Reverse Stock Split Common Stock to any shareholder who otherwise would have received a fractional share as a result of the Reverse Stock Split. The amount of authorized Common Stock was not affected. All issued and outstanding share and per share amounts included in the accompanying consolidated financial statements have been adjusted to reflect this Reverse Stock Split for all periods presented. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”). a. Use of estimates: The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP and requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material. Management believes the Company’s critical accounting policies and estimates are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars (“$,” “dollar” or “dollars”): The accompanying consolidated financial statements have been prepared in dollars. The Company’s revenues and financing activities are incurred in U.S. dollars. Although a portion of the Subsidiary’s expenses is denominated in New Israeli Shekels (“NIS”) (mainly cost of personnel), a substantial portion of its expenses is denominated in dollars. Accordingly, the Company’s management believes that the currency of the primary economic environment in which the Company and its subsidiary operate is the dollar; thus, the dollar is the functional currency of the Company. Transactions and balances denominated in dollars are presented at their original amounts. Monetary accounts denominated in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standard Codification (“ASC”) 830, “Foreign Currency Matters”. All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the consolidated statements of comprehensive loss as financial income or expenses, as appropriate. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. d. Cash and cash equivalents: The Company considers all highly liquid investments, which are readily convertible to cash with a maturity of three months or less at the date of acquisition, to be cash equivalents. e. Short-term restricted bank deposits: Short-term restricted bank deposits are restricted deposits with maturities of up to one year and are pledged in favor of the bank as a security for the bank guaranties issued to the landlords of the Company’s offices and credit card payments. The short-term restricted bank deposits are denominated in NIS and USD and bear interest at an average rate of 0.02% as of December 31, 2019 and 2018. The short-term restricted bank deposits are presented at their cost, including accrued interest. As of December 31, 2019, and 2018, the Company had, a short-term restricted bank deposits which are used as collateral for rent in the amount of $ 128 and $ 119, respectively. As of December 31, 2019, and 2018, the Company had, a short-term restricted bank deposits which are used as collateral for credit payments in amounts of $ 63 and $ 61, respectively. The following table provides a reconciliation of the cash balances reported on the balance sheets and the cash, cash equivalents and short-term restricted bank deposits balances reported in the statements of cash flows: December 31, 2019 2018 Cash, and cash equivalents as reported on the balance sheets $ 20,395 $ 10,997 Short-term restricted bank deposits, as reported on the balance sheets $ 140 $ 129 Cash, restricted cash, cash equivalents and short-term restricted bank deposits as reported in the statements of cash flows $ 20,535 $ 11,126 f. Inventories: Inventories are stated at the lower of cost or net realized value. Cost is determined on a “moving average” basis. Inventory write-down is provided to cover technological obsolescence, excess inventories and discontinued products. Inventory write-down represents the difference between the cost of the inventory and net realizable value. Inventory write-down is charged to the cost of revenues and ramp up of manufacturing when a new lower cost basis is established. Subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Work-in-process is immaterial, given the typically short manufacturing cycle, and therefore is disclosed in conjunction with raw materials. Total write-offs during the years ended December 31, 2019 and 2018 amounted to $62 and $41, respectively. g. Long-term assets: Long-term lease deposits during the years ended December 31, 2019 and 2018 include mainly long-term deposits for the Company’s rent and leased vehicles, respectively. h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, and peripheral equipment 15-33 Office furniture and equipment 6-15 Production lines 14-20 Leasehold improvements Over the shorter of the lease term or i. Impairment of long-lived assets: Property and equipment are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. As of December 31, 2019 and 2018, no impairment was recorded. j. Revenue recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC 606. The standard replaced the revenue recognition guidance in U.S. generally accepted accounting principles under ASC 605, and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional Accounting Standard Updates (each an “ASU”) related to ASU No. 2014-09, collectively referred to as the “new revenue standards,” which became effective for the Company beginning January 1, 2019. The Company adopted the standard using the modified retrospective method. The adoption of ASC 606 did not have a significant impact on the Company’s Consolidated Financial Statements. See Note 5 for further information. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company considers customer and distributers purchase orders to be the contracts with a customer. For each contract, the Company considers the promise to transfer tangible products and services, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to rebates and adjustments to determine the net consideration to which the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling price. Revenue from tangible products is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. The revenues from fixed-price services are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred. The Company's standard arrangements with its customers typically do not allow for rights of return. k. Cost of revenues: Cost of revenues is comprised of the cost of production, data center costs, shipping and handling inventory, personnel and related overhead costs, depreciation of production line and related equipment costs, amortization of deferred costs and inventory write-downs l. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term restricted bank deposits and trade receivables. All of the cash and cash equivalents and short-term restricted bank deposits of the Company and its Subsidiary are invested in deposits and current accounts with major U.S. and Israeli banks. Such cash and cash equivalents and short-term restricted bank deposits may be in excess of insured limits and are not insured in other jurisdictions. Generally, cash and cash equivalents and short-term restricted bank deposits may be redeemed and therefore a minimal credit risk exists with respect to these deposits and investments. The Company’s trade receivables are derived mainly from sales to distributers and to end-users world-wide. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those specific amounts that the Company has determined to be doubtful of collection. The Company had no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. m. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). This guidance prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. As of December 31, 2019, and 2018 a full valuation allowance was provided by the Company. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. As of December 31, 2019, and 2018, no liability for unrecognized tax benefits was recorded as a result of the implementation of ASC 740. n. Research and development costs: Research and development costs are charged to the consolidated statements of comprehensive loss, as incurred. o. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statement of comprehensive loss. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon historical volatility of the Company. The expected option term represents the period that the Company’s stock options are expected to be outstanding and is determined based on the simplified method until sufficient historical exercise data will support using expected life assumptions. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. p. Fair value of financial instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent from the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The carrying amounts of cash and cash equivalents, short-term restricted bank deposits, trade receivables, other accounts receivable and prepaid expenses, trade payables and other accounts payable and accrued expenses approximate their fair value due to the short-term maturity of such instruments. Some of the inputs to these models are unobservable in the market and are significant. The Company has no financial assets or liabilities measured using Level 1, Level 2, or Level 3 inputs. q. Basic and diluted net loss per share: Basic net loss per share is computed based on the weighted average number of shares of Common Stock outstanding during each year. Diluted net loss per share is computed based on the weighted average number of shares of Common Stock outstanding during each year, plus dilutive potential Common Stock considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”. The Company follows the two-class method when computing net loss per common share when shares are issued that meet the definition of participating securities. The two-class method determines net income (loss) per common share for each class of common shares and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between common shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company's convertible preferred shares contractually entitle the holders of such shares to participate in dividends. The total number of shares related to the outstanding options, warrant and preferred shares excluded from the calculations of diluted net loss per share due to their anti-dilutive effect was 6,545,910 and 997,906 for the year ended December 31, 2019 and 2018, respectively. r. Severance pay: Since inception date, all Ltd. employees who are entitled to receive severance pay in accordance with the applicable law in Israel, have been included under section 14 of the Israeli Severance Compensation Law (“Section 14”). Under this section, they are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made by the employer on their behalf with insurance companies. Payments in accordance with Section 14 release Ltd. from any future severance payments in respect of those employees. Payments under Section 14 are not recorded as an asset in the Company’s balance sheet. Severance pay expense for the year ended December 31, 2019 and 2018 amounted to $346 and $259, respectively. s. Legal and other contingencies: The Company accounts for its contingent liabilities in accordance with ASC 450 “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2018 and 2019, the Company is not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Legal costs incurred in connection with loss contingencies are expensed as incurred. t. Recently adopted accounting pronouncements: In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC 606. The standard replaced the revenue recognition guidance in U.S. generally accepted accounting principles under ASC 605, and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional Accounting Standard Updates (each an “ASU”) related to ASU No. 2014-09, collectively referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2019. The Company adopted the standard using the modified retrospective method. The adoption of ASC 606 did not have a significant impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASC 842”). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. The standard became effective for the Company beginning January 1, 2019. The Company adopted ASC 842 using the modified retrospective approach, by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under ASC 840. The Company elected the package of practical expedients permitted under ASC 842, which also allowed the Company to carry forward historical lease classifications. The Company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the ROU assets and lease liabilities. As a result of the adoption of ASC 842 on January 1, 2019, the Company recorded both operating lease ROU assets and operating lease liabilities of $847. The adoption did not impact the Company's beginning retained earnings, or prior year consolidated statements of comprehensive loss and statements of cash flows. See Note 6 for further information on leases. Under ASC 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index. As most of the Company's leases do not provide an implicit rate, the Company, with the assistance of a third-party valuation firm, determined the incremental borrowing rate in determining the present value of lease payments. The ROU assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. The Company lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating leases are included in operating lease ROU assets, current and non-current operating lease liabilities, on the Company's consolidated balance sheets. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This ASU supersedes ASC 505-50, “Equity—Equity Based Payments to Non-Employees,” and expands the scope of ASC 718, “Compensation—Stock Compensation,” to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. The standard became effective for the Company beginning January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective from the first quarter of 2019. Recently issued accounting pronouncements, not yet adopted: In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” (“ASU No. 2018-13”) which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; the ASU allows for early adoption in any interim period after issuance of the update. The adoption of this ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In September 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. The guidance also requires increased disclosures. For the Company, the amendments in the update were originally effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective date of ASU 2016-13 for smaller reporting companies (as defined by the U.S. Securities and Exchange Commission) and other non-SEC reporting entities to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted. The Company is currently assessing the impact the guidance will have on its consolidated financial statements. |
OTHER ACCOUNTS RECEIVABLE AND P
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 3:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2019 2018 Prepaid expenses $ 203 $ *) 243 Deferred costs 24 71 Government authorities 40 66 $ 267 $ 380 *) Reclassified |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | NOTE 4:- INVENTORIES December 31, 2019 2018 Raw materials $ 536 $ 424 Finished products 878 953 $ 1,414 $ 1,377 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE | |
REVENUE | NOTE 5:- REVENUE On January 1, 2019, the Company adopted ASC 606 using the modified retrospective method and applied the standard to those contracts which were not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 605. The following tables represent The Company total revenues for the year ended December 31, 2019 and 2018 by performance obligation type as a result of implementing ASC 606 (prior period amounts have not been adjusted under the modified retrospective method): December 31, 2019 2018 Products $ 5,490 $ 7,158 Services 2,069 236 $ 7,559 $ 7,394 Consolidated revenues by category type are as follows (in thousands): December 31, 2019 2018 Consumer Products and other revenues $ 4,478 $ 6,832 Membership services 2,930 562 $ 7,559 $ 7,394 The Company recognizes contract liabilities, or deferred revenues, when it receives advance payments from customers before performance obligations primarily related services have been performed. Advance payments are received at the beginning of the service period and the related deferred revenues are reclassified to revenue ratably over the service period. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period. The following table presents the significant changes in the deferred revenue balance during the year ended December 31, 2019: Balance, beginning of the period $ 736 New performance obligations 3,417 Reclassification to revenue as a result of satisfying performance obligations 2,930 Balance, end of the period $ 1,223 Because all performance obligations in the Company’s contracts with customers relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 6:- LEASES At the beginning of the Company’s fiscal 2019, the Company adopted ASC 842. The adoption of ASC 842 did not have a significant impact on the Company’s consolidated financial statements. The Company has entered into various non-cancelable operating lease agreements for certain of its offices and car leases. The Company's leases have original lease periods expiring between 2019 and 2022. Many leases include one or more options to renew. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. The Company's 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: Twelve Months Ended December 31, 2019 Lease cost Operating lease cost $ 353 Short term lease cost 84 Variable lease cost 2 Total lease cost 439 Weighted Average Remaining Lease Term Operating leases 2.78 years Weighted Average Discount Rate Operating leases 7.34 % The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2019: Operating Leases 2020 $ 327 2021 299 2022 218 Total undiscounted cash flows 844 Less imputed interest (72) Present value of lease liabilities $ 772 Supplemental cash flow information related to leases are as follows: Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 353 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 244 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 7:- PROPERTY AND EQUIPMENT, NET Composition of assets, grouped by major classification, is as follows: December 31, 2019 2018 Cost: Computers and peripheral equipment $ 233 $ 180 Office furniture and equipment 131 114 Production lines 748 736 Leasehold improvement 147 143 1,259 1,173 Accumulated depreciation: Computers and peripheral equipment 134 97 Office furniture and equipment 33 25 Production lines 412 301 Leasehold improvement 32 17 611 440 Property and equipment, net $ 648 $ 733 Depreciation expenses for the year ended December 31, 2019 and 2018 amounted to $183 and $207, respectively. |
OTHER ACCOUNTS PAYABLE AND ACCR
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8:- OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2019 2018 Employees and payroll accruals $ 1,137 $ 974 Accrued expenses 887 880 $ 2,024 $ 1,854 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 9:- COMMITMENTS AND CONTINGENT LIABILITIES As of December 31, 2019, Ltd. had established guarantees to cover rent agreements and credit cards commitments that amounted to $191 . |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2019 | |
TAXES ON INCOME | |
TAXES ON INCOME | NOTE 10:- TAXES ON INCOME The Company and Ltd. are separately taxed under the domestic tax laws of the state of incorporation of each entity a. Tax Reform On December 22, 2017, the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law. The TCJA makes broad and complex changes to the Internal Revenue Code of 1986 (the “Code”) that impact the Company’s provision for income taxes. The changes include, but are not limited to: · Decreasing the corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017 (“Rate Reduction”); · The Deemed Repatriation Transition Tax; and · Taxation of Global Intangible Low-Taxed Income (“GILTI”) earned by foreign subsidiaries beginning after December 31, 2017. The GILTI tax imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations Accounting for the TCJA In March 2018, the FASB issued ASU 2018‑05, "Income Taxes Topic (740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118" ("ASU 2018‑05"), to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations), in reasonable detail, to complete the accounting for certain income tax effects of the TCJA. The Company completed the accounting treatment related to the tax effects of the TCJA. As a result: · The Company recognizes its accounting for changes in the U.S. federal rate and deferred tax impact for the rate change to be complete. · The Company’s analysis for the Deemed Repatriation Transition Tax has been filed with its December 31, 2017 tax return and the Company considered its accounting relating to the TCJA to be complete as of such date and did not make any measurement-period adjustments related to it. · The Company accounted for the tax impact related to other areas of the TCJA and believes its analysis to be completed and consistent with the guidance in ASU 2018‑05. In particular, the Company concluded that for 2019, it should not be subject to any tax on account of GILTI or base erosion and anti-abuse payments made by U.S. corporations to foreign related parties. The Company recognizes that the Internal Revenue Service, the FASB and the Securities and Exchange Commission are continuing to publish and finalize ongoing guidance with respect to the TCJA which may modify accounting interpretation for the TCJA, the Company will account for these impacts in the period in which any changes are enacted. b. Tax rates applicable to Ltd.: Corporate tax rate in Israel in 2018 and 2019 was 23%. c. Net operating loss carryforward: Ltd. has accumulated net operating losses for Israeli income tax purposes as of December 31, 2019 in the amount of approximately $62,470. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period. As of December 31, 2019, the Company had a U.S. federal net operating loss carryforward of approximately $11,046, of which $7,120 was generated from tax years 2011-2017 and can be carried forward and offset against taxable income and that expires during the years 2031 to 2037. Utilization of U.S. loss carryforward may be subject to substantial annual limitation due to the “change in ownership” provisions of the Code and similar state provisions. The annual limitations may result in the expiration of losses before utilization. The remaining $3,926 of NOLs were generated in years 2018 and 2019, and are subject to the TCJA, which modified the rules regarding utilization of net operating losses (“NOL”). NOLs generated after December 31 2017 can only be used to offset 80% of taxable income with an indefinite carryforward period for unused carryforwards (i.e., they should not expire). Utilization of the federal and state net operating losses and credits may be subject to a substantial annual limitation due to an additional ownership change. The annual limitation may result in the expiration of net operating losses and credits before utilization and in the event the Company's has a change of ownership, utilization of the carryforwards could be restricted. d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: December 31, 2019 2018 Deferred tax assets: Net operating loss and capital losses carry forward $ 16,879 $ 10,294 Temporary differences 888 791 Deferred tax assets before valuation allowance 17,767 11,085 Valuation allowance (17,767) (11,085) Net deferred tax asset $ — $ — The deferred tax balances included in the consolidated financial statements as of December 31, 2019 are calculated according to the tax rates that were in effect as of the reporting date and do take into account the potential effects of the reduction in the tax rate. The net change in the total valuation allowance for the year ended December 31, 2019 was an increase of $6,682 and is mainly relates to increase in deferred taxes on net operating loss for which a full valuation allowance was recorded. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences and tax loss carryforward are deductible. Management considers the projected taxable income and tax-planning strategies in making this assessment. In consideration of the Company’s accumulated losses and the uncertainty of its ability to utilize its deferred tax assets in the future, management currently believes that it is more likely than not that the Company will not realize its deferred tax assets and accordingly recorded a valuation allowance to fully offset all the deferred tax assets. e. Loss before taxes on income consists of the following: Year ended December 31, 2019 2018 Domestic $ 4,418 $ 3,801 Foreign 13,318 14,002 $ 17,736 $ 17,803 f. The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 11:- STOCKHOLDERS’ EQUITY a. The holders of Common Stock have the right to one vote for each share of Common Stock held of record by such holder with respect to all matters on which holders of Common Stock are entitled to vote, to receive dividends as they may be declared in the discretion of the Company’s Board of Directors and to participate in the balance of the Company’s assets remaining after liquidation, dissolution or winding up, ratably in proportion to the number of shares of Common Stock held by them after giving effect to any rights of holders of preferred stock. Except for contractual rights of certain investors, the holders of Common Stock have no pre-emptive or similar rights and are not subject to redemption rights and carry no subscription or conversion rights. b. On April 3, 2015, the Company’s Board of Directors approved stock for salary program pursuant to which the Company will issue compensation shares of restricted Common Stock (“Compensation Shares”) to directors, officers and employees of the Company as consideration for a reduction in or waiver of cash salary, bonus or fees owed to such individuals. The waiver of cash salary will be done upon the average closing price of the Common Stock for the 30 trading days prior to the date the Compensation Shares are granted. c. During the year ended December 31, 2019 and 2018, the Company issued 104,363 and 38,285, Compensation Shares, respectively, to certain members of the Board of Directors, officers and employees as consideration for a waiver of cash owed to such individuals amounting to $1,011 and $1,055, respectively. d. During the year ended December 31, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 18,500 shares of Common Stock in lieu of $504 owed to service providers and the grant of an option to purchase 10,093 shares of Common Stock in lieu of $298 owed to a service provider of the Company. Of such share of Common Stock issued, 4,225 shares and the options were issued under the 2012 Plan (refer to note 11m). e. On February 28, 2018 and March 6, 2018, the Company closed two concurrent private placements offerings consisting of 113,110 shares of the Company’s Common Stock at $28.00 per share, 61,704 shares of the Company’s Series C Convertible Preferred Stock (the “Series C Preferred Stock”), for aggregate gross proceeds of approximately $6,623 ($6,034 net of issuance expenses) at $56.00 per share, and warrants to purchase up to 189,218 shares of Common Stock. The shares of Series C Preferred Stock were convertible into an aggregate of 123,408 shares of Common Stock based on a conversion price of $28.00 per share. Such conversion price was not subject to any future price-based anti-dilution adjustments except for standard anti-dilution protection. The shares of Series C Preferred Stock were not redeemable nor contingently redeemable. The holders of the Series C Preferred Stock were not be entitled to convert such preferred stock into shares of the Company’s Common Stock until the Company obtained stockholder approval for such issuance and upon obtaining such stockholder approval, automatically converted into shares of Common Stock. The holders of the Series C Preferred Stock did not possess any voting rights, but the Series C Preferred Stock did carry a liquidation preference for each holder equal to the investment made by such holder in the Offering. In addition, the holders of Series C Preferred Stock were eligible to participate in dividends and other distributions by the Company on an as converted basis. The warrants issued in the concurrent private placements are exercisable after the six-month anniversary of each respective closing and will expire on the 18‑month anniversary of their issuance. Following the receipt of stockholder approval in May 2018, the shares of Series C Preferred Stock were converted into shares of Common Stock. In conjunction with these offerings the Company issued 1,613 shares of Common Stock to certain finders. The shares were issued under the 2012 Plan (refer to note 11m). f. In May 2018, the Company entered into exchange agreements (each, an “Exchange Agreement”) with certain Company warrant holders who were granted warrants to purchase shares of Common Stock in March 2016 and January 2017. Pursuant to the terms of the Exchange Agreements, the warrant holders agreed to surrender their warrants to purchase an aggregate of 51,018 shares of Common Stock for cancellation and received, as consideration for such cancellation, an aggregate of 31,838 restricted shares of Common Stock creating a benefit to the warrant holders. As such the Company recorded a deemed dividend in the amount of $493. g. In June and July 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 57,642 shares to directors, officers, employees and consultants of the Company, and the grant of 12,200 and 1,050 options to employees and consultants of the Company, respectively, at an exercise price of $34.58 per share. The stock options vest over a period of three years commencing on the respective grant dates. All of the aforementioned options have a six-year term. All shares and options were issued under the 2012 Plan (refer to note 11m). h. On September 13, 2018 and September 26, 2018, the Company closed concurrent private placements offerings consisting of 213,340 shares of the Company’s Common Stock at $18.00 per share, 94,513 shares of the Company’s Series D Convertible Preferred Stock (the “Series D Preferred Stock”) at $72.00 per share, and warrants to purchase up to 473,131 shares of Common Stock, for aggregate gross proceeds of approximately $10,645 ($9,686 net of issuance expenses). The shares of Series D Preferred Stock were convertible into an aggregate of 378,052 shares of Common Stock based on a conversion price of $18.00 per share. Such conversion price was not subject to any future price-based anti-dilution adjustments except for standard anti-dilution protection. The shares of Series D Preferred Stock were not redeemable nor contingently redeemable. The holders of the Series D Preferred Stock were not be entitled to convert such preferred stock into shares of the Company’s Common Stock until the Company obtained stockholder approval for such issuance and upon obtaining such stockholder approval, automatically converted into shares of Common Stock. The holders of the Series D Preferred Stock did not possess any voting rights, but the Series D Preferred Stock did carry a liquidation preference for each holder equal to the investment made by such holder in the Offering. In addition, the holders of Series D Preferred Stock were eligible to participate in dividends and other distributions by the Company on an as converted basis. The warrants issued in the concurrent private placements are exercisable after the six-month anniversary of each respective closing and will expire on the 36‑month anniversary of their issuance. Following receipt of stockholder approval in November 2018, the shares of Series D Preferred Stock were converted into shares of Common Stock. In conjunction with these offerings the Company issued 4,167 shares of Common Stock to certain finders. i. On December 13, 2018, and December 27, 2018, the Company closed a private placement offering consisting of 152,504 shares of the Company’s Common Stock at $20.00 per share and warrants to purchase up to 152,504 shares of Common Stock, for aggregate gross proceeds of approximately $3,050 ($3,023 net of issuance expenses). The warrants issued in the private placement are exercisable after the six-month anniversary of each respective closing and will expire on the 36‑month anniversary of their issuance. j. On May 24, 2019, the Company closed a public offering (the “2019 Public Offering”) of (i) 242,768 shares of Common Stock, at a price of $12 per share and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to 358,779 shares of Common Stock, for aggregate consideration of $6,558, net of issuance expenses. The Pre-Funded Warrants were sold at a public offering price of $11.998 per Pre-Funded Warrant, which represents the per share public offering price per Share, less a $0.0001 per share exercise price for each such Pre-Funded Warrant. The shares and Pre-Funded Warrants were offered, issued and sold pursuant to a shelf registration statement filed with the Securities and Exchange Commission. The Pre-Funded Warrants have been accounted for as equity instruments. The Pre-Funded Warrants are exercisable at any time after the date of issuance. A holder of Pre-Funded Warrants may not exercise the warrant if the holder, together with any group that the holder is a member, would beneficially own more than 4.99% (or, at the election of the purchaser, 9.99%) of the number of shares of common stock outstanding immediately after giving effect to such exercise. A holder of Pre-Funded Warrants may terminate, increase or decrease this percentage by providing at least 61 days’ prior notice to the Company. A holder of Pre-Funded Warrants is also subject to a limitation on exercise of the Pre-Funded Warrant if such exercise would result in such holder, together with any group that the holder is a member, beneficially owning more 19.99% of the number of shares of common stock outstanding immediately before giving effect to such exercise, unless shareholder approval is obtained. k. In November and December, 2019, the Company entered into subscription agreements (the “Series A, A-1, A-2, A-3 and A-4 Subscription Agreement”) for a sale of an aggregate of 21,375 shares of newly designated Series A, A-1, A-2, A-3 and A-4 Preferred Stock (the “Series A Preferred Stock”), at a purchase price of $1,000 per share (the “Stated Value”), for aggregate proceeds, net of issuance expenses to the Company, of approximately $21,375 ($18,689 net of issuance expenses). The initial conversion price for the Series A, A-1, A-2, A-3 and A-4 Preferred Stock was $4.05, $4.05, $4.28, $4.98 and $5.90, respectively, subject to adjustment in the event of stock splits, stock dividends, and similar transactions). As such, the Company recorded a deemed dividend in the amount of $2,860 for the benefit created to the series A-2, A-3 and A-4 holders. The holders of series A Preferred Stock (excluding Series A-1 Preferred Stock, which do not possess any voting rights) shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series A Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of the Certificate of Incorporation, Holders of Series A Preferred Stock shall vote together with the holders of Common Stock as a single class. Upon any liquidation, dissolution or winding-up of the Company, after the satisfaction in full of the debts of the Company and payment of the liquidation preference to the Senior Securities, holders of Series A Preferred Stock shall be entitled to be paid, on a pari passu basis with the payment of any liquidation preference afforded to holders of any Parity Securities, the remaining assets of the Company available for distribution to its stockholders. For these purposes, (i) “Parity Securities” means the Common Stock, Series A Preferred Stock and any other class or series of capital stock of the Company hereinafter created that expressly ranks pari passu with the Series A Preferred Stock; and (ii) “Senior Securities” shall mean any class or series of capital stock of the Company hereafter created which expressly ranks senior to the Parity Securities. Each share of Series A Preferred Stock is convertible at the option of the holder, subject to certain beneficial ownership limitations as set forth in the Series A Certificate of Designation into such number of shares of Company’s Common Stock equal to the number of Series A Preferred Shares to be converted, multiplied by the Stated Value, divided by the conversion price in effect at the time of the conversion. The Series A Preferred Stock will automatically convert into shares of Common Stock, subject to certain beneficial ownership limitations, on the earliest to occur of (i) upon the approval of the holders at least 50.1% of the outstanding shares of Series A Preferred with respect to the Series A Preferred Stock; or (ii) the 36-month anniversary of each of the Series A Effective Date. The holders of Series A Preferred Stock will also be entitled dividends payable as follows: (i) a number of shares of Common Stock equal to ten percent (10%) of the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock then held by such holder on the 12-month anniversary of the Series A Effective Date, (ii) a number of shares of Common Stock equal to fifteen percent (15%) of the number of shares of Common Stock issuable upon conversion of the Series A Preferred then held by such holder on the 24-month anniversary of the Series A Effective Date, and (iii) a number of shares of Common Stock equal to twenty percent (20%) of the shares of Common Stock issuable upon conversion of the Series A Preferred Stock then held by such holder on the 36-month anniversary of the Series A Effective Date. The Company accounted for the dividend as a deemed dividend in a total amount of $295. Pursuant to the Placement Agency Agreement (the “Placement Agency Agreement”) executed by and between the Company and the registered broker dealer retained to act as the Company’s exclusive placement agent (the “Placement Agent”) for the offering of the Series A Preferred Stock, the Company paid the Placement Agent an aggregate cash fee of $1,788, non-accountable expense allowance of $641 and was required to issue to the Placement Agent or its designees warrants to purchase 719,243 shares of Common Stock at an exercise price ranging from $4.05 to $5.90 per share (the “Placement Agent Warrants”). The Placement Agent Warrants are exercisable for a period of five years from the date of the final closing of the Series A Preferred Stock Offering. l. The table below summarizes the outstanding warrants as of December 31, 2019: Warrants outstanding as of Exercise December 31, 2019 price $ Expiration date February 2015 PPM A (*) 232 November 25,2015 March 2016 Public Offering -Warrants 76,417 March 8, 2021 March 2016 Public Offering - Representative's Warrants 7,172 March 8, 2021 March 2017 Public Offering - Representative's Warrants 1,820 March 31, 2022 September 2018 PPM 459,796 September 13, 2021 September 2018 PPM (Finder Warrants) 7,030 September 13, 2021 September 2018 PPM 2 nd closing 13,335 September 26, 2021 December 2018 PPM 150,004 December 14, 2021 December 2018 PPM 2 nd closing 2,500 December 27, 2021 Placement Agent Warrants A-1 December 2019 485,688 December 19, 2024 Placement Agent Warrants A-2 December 2019 64,976 December 19, 2024 Placement Agent Warrants A-3 December 2019 150,214 December 19, 2024 Placement Agent Warrants A-4 December 2019 18,365 December 19, 2024 Total outstanding (**) 1,437,549 (*) (**) No warrants were exercised in 2019 and 2018. m. Stock-based compensation: On January 23, 2012, an equity incentive plan (the “2012 Plan”) was adopted by the Board of Directors of the Company and approved by a majority of the Company’s stockholders, under which options to purchase shares of Common Stock have been reserved. Under the 2012 Plan, options to purchase shares of Common Stock may be granted to employees and non-employees of the Company or any affiliate, each option granted can be exercised to one share of Common Stock. During 2018, the Company’s stockholders approved an amendment to the 2012 Plan to increase the number of shares authorized for issuance under the 2012 Plan by 250,000 shares, from 143,650 to 393,650. During 2019, the Company’s stockholders approved an amendment to the 2012 Plan to increase the number of shares authorized for issuance under the 2012 Plan by 225,000 shares, from 393,650 to 618,650. The following options were issued under the 2012 Plan during 2018 and 2019: On April 23, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of 4,688 options to a consultant of the Company, at an exercise price of $0.0001 per share. The option fully vested on the grant date and has a six-year term. This option was issued in lieu of a cash waiver of $150 by the consultant. On July 23, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of 3,541 options to consultants of the Company, at an exercise price of $0.0001 per share. 3,141 options fully vested on the grant date, and 400 will vest in 12 equal monthly installments. The options have a six-year term. These options were issued in lieu of a cash waiver of $102 by the consultants. In June and July 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 57,642 shares to directors, officers, employees and consultants of the Company, and the grant of 12,206 and 1,048 options to employees and consultants of the Company, respectively, at an exercise price of $34.58 per share. The stock options shall vest over a period of three years commencing on the respective grant dates. All of the aforementioned options have a six-year term. On November 22, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of 6,000 options to its President and Chief Commercial Officer, at exercise prices of $15.90 per share. The options will vest over a three years period from the grant date and have a six-year term. On November 22, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of 1,864 options to consultants of the Company, at an exercise price of $0.0001 per share. The options fully vested on the grant date and have a six-year term. These options were issued in lieu of a cash waiver of $45 by the consultants. In addition, the Company’s Compensation Committee of the Board of Directors approved the grant of 1,313 options to a consultant of the Company at an exercise price of $19.96 per share. The options will vest over a three year period from the grant date and have a six-year term. On December 10, 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 2,346 options to employees of the Company, at an exercise price of $18.54 per share. The stock options will vest over a three years period commencing on the grant date and have a six-year term. On April 29, 2019, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 51,613 shares to directors, officers and employees of the Company, and the grant of 29,236 options to employees, directors and consultants of the Company, respectively, at exercise prices of $14.40 and $15.40 per share. The stock options vest over a period of three years commencing on the respective grant dates. All of the aforementioned options have a six-year term. In September and October 2019, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 5,378 shares of Common Stock to service providers of which 4,753 were issued during the third and fourth quarters, and the grant of 3,939 options to consultants of the Company, at exercise price of $12.00 per share, and 462 options in lieu of $8 owed in cash to a consultant. On December 24, 2019, the Company’s Compensation Committee of the Board of Directors approved the grant of 42,500 options to employees of the Company, at exercise prices of $5.63 and $6.35 per share. The stock options vest over a period of three years commencing on the respective grant dates. All of the aforementioned options have a six-year term. Transactions related to the grant of options to employees, directors and non-employees under the above plans during the year ended December 31, 2019 were as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual Intrinsic options**) price life value $ Years $ Options outstanding at beginning of year 89,436 111.74 368 Options granted 76,137 Options exercised 406 *)- Options expired 5,286 Options forfeited 11,801 Options outstanding at end of year 148,080 192 Options vested and expected to vest at end of year 132,517 185 Exercisable at end of year 72,532 127.3 156 *) Represents an amount lower than $1. **) Reverse Stock Split, see note 1f. Weighted average fair value of options granted during the year ended December 31, 2019 and 2018 is $9.41 and $11.20, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on the last day of fiscal 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2019. This amount is impacted by the changes in the fair market value of the Common Stock. The following table presents the assumptions used to estimate the fair values of the options granted to employees and directors in the period presented: Year ended December 31, 2019 2018 Volatility 84.34 % - 90.82 % 83.41 % - 105.38 % Risk-free interest rate 1.69 % - 2.28 % 2.69 % - 2.88 % Dividend yield 0 % 0 % Expected life (years) - - 4.5 The following table presents the assumptions used to estimate the fair values of the options granted to non-employees in the period presented: Year ended December 31, 2019 2018 Volatility 84.34 % - 90.82 % 82.61 % ‑ 107.42 % Risk-free interest rate 1.41 % - 2.28 % 2.41 % ‑ 2.96 % Dividend yield 0 % 0 % Expected life (years) 3.5 - 4.5 2.96 ‑ 5.94 As of December 31, 2019, the total unrecognized estimated compensation cost related to non-vested stock options granted prior to that date was $977, which is expected to be recognized over a weighted average period of approximately 1.41 year. The total compensation cost related to all of the Company’s equity-based awards, recognized during year ended December 31, 2019 and 2018 were comprised as follows: Year ended December 31, 2019 2018 Cost of revenues $ 59 $ 116 Research and development 236 404 Sales and marketing 300 607 General and administrative 1,721 2,631 Total stock-based compensation expenses $ 2,316 $ 3,758 |
SELECTED STATEMENTS OF OPERATIO
SELECTED STATEMENTS OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2019 | |
SELECTED STATEMENTS OF OPERATIONS DATA | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 12:- SELECTED STATEMENTS OF OPERATIONS DATA Financial expenses (income), net: Year ended December 31, 2019 2018 Bank charges $ 27 $ 18 Foreign currency adjustments losses, net 20 98 Change in the fair value of warrants — (1) Interest income (16) — Total Financial income, net $ 31 $ 115 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13:- SUBSEQUENT EVENTS In January 2020, 47,074 shares of Common Stock were issued to certain members of the Board of Directors, officers and employees as consideration for a reduction in or waiver of cash salary or fees amounting to $201 owed to such individuals and approved the grant of 25,000 options to employees of the Company, at exercise prices of $8.27 and $8.41 per share. The stock options vest over a period of three years commencing on the respective grant dates. All of the aforementioned options have a six-year term. The shares and options were issued under the Company’s 2012 Plan. In January 2020, the Company entered into exchange agreements (each an "Exchange Agreement") with certain Company warrant holders who were granted warrants to purchase up to an aggregate of 139,336 shares of Common Stock in September 2018. Pursuant to the terms of the Exchange Agreements, the warrant holders agreed to surrender such warrants for cancellation and received, as consideration for the cancellation of such 2018 warrants, in the aggregate 97,536 restricted shares of Common Stock, thereby creating a benefit to these warrant holders. On January 29, 2020, the Board of Directors authorized the Company to issue warrants to purchase up to 13,750 and 250,000 shares of Common Stock to certain consultants of the Company, at a purchase price of $12.00 and $6.56, respectively. In addition, the Board of Directors approved the grant of 50,000 shares of Common Stock to a consultant of the Company. On January 30, 2020, the Compensation Committee of the Board of Directors approved the grant of a non-qualified stock option award to purchase 90,000 shares of the Company’s Common Stock, as well as an additional non-qualified performance-based stock option award to purchase an additional 90,000 shares of the Company’s Common Stock outside of the Company’s existing equity compensation plans, pursuant to Nasdaq Listing Rule 5635(c)(4), in connection with the employment of its President and General Manager of North America. On February 5, 2020, the Company’s stockholders approved an amendment to the 2012 Plan to increase the number of shares authorized for issuance under the 2012 Plan by 1,350,000 shares, from 618,650 to 1,968,650. On February 12, 2020, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 654,246 shares to directors, officers, employees and consultants of the Company, and the grant of 335,991 options to employees and consultants of the Company, at exercise prices of $7.736 and $9.237 per share. The stock options vest over a period of three years commencing on the respective grant dates. All the aforementioned options have a six-year term. All options were issued under the 2012 Plan. On February 27, 2020, the Compensation Committee of the Board of Directors approved the grant of a non-qualified stock option award to purchase 90,000 shares of the Company’s common stock to director, at exercise prices of $7.30 per share. The stock options vest over a period of three years commencing on the respective grant date. All options were issued under the 2012 Plan. On March 2, 2020, the Compensation Committee of the Board of Directors approved the grant of a non-qualified stock option award to purchase 50,000 shares of the Company’s Common Stock outside of the Company’s existing equity compensation plans, pursuant to Nasdaq Listing Rule 5635(c)(4) in connection with the employment of its Chief medical Officer. In March 2020, 16,280 shares of Common Stock and 540 options to purchase Common Stock were issued to certain consultants of the Company, a portion of which were made in lieu of cash owed to such consultants. All options were issued under the 2012 Plan. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP and requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material. Management believes the Company’s critical accounting policies and estimates are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial statements in U.S. dollars ("$", "dollar" or "dollars") | a. Financial statements in U.S. dollars (“$,” “dollar” or “dollars”): The accompanying consolidated financial statements have been prepared in dollars. The Company’s revenues and financing activities are incurred in U.S. dollars. Although a portion of the Subsidiary’s expenses is denominated in New Israeli Shekels (“NIS”) (mainly cost of personnel), a substantial portion of its expenses is denominated in dollars. Accordingly, the Company’s management believes that the currency of the primary economic environment in which the Company and its subsidiary operate is the dollar; thus, the dollar is the functional currency of the Company. Transactions and balances denominated in dollars are presented at their original amounts. Monetary accounts denominated in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standard Codification (“ASC”) 830, “Foreign Currency Matters”. All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the consolidated statements of comprehensive loss as financial income or expenses, as appropriate. |
Principles of consolidation | a. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. |
Cash and cash equivalents | a. Cash and cash equivalents: The Company considers all highly liquid investments, which are readily convertible to cash with a maturity of three months or less at the date of acquisition, to be cash equivalents. |
Short-term restricted bank deposits | a. Short-term restricted bank deposits: Short-term restricted bank deposits are restricted deposits with maturities of up to one year and are pledged in favor of the bank as a security for the bank guaranties issued to the landlords of the Company’s offices and credit card payments. The short-term restricted bank deposits are denominated in NIS and USD and bear interest at an average rate of 0.02% as of December 31, 2019 and 2018. The short-term restricted bank deposits are presented at their cost, including accrued interest. As of December 31, 2019, and 2018, the Company had, a short-term restricted bank deposits which are used as collateral for rent in the amount of $ 128 and $ 119, respectively. As of December 31, 2019, and 2018, the Company had, a short-term restricted bank deposits which are used as collateral for credit payments in amounts of $ 63 and $ 61, respectively. The following table provides a reconciliation of the cash balances reported on the balance sheets and the cash, cash equivalents and short-term restricted bank deposits balances reported in the statements of cash flows: December 31, 2019 2018 Cash, and cash equivalents as reported on the balance sheets $ 20,395 $ 10,997 Short-term restricted bank deposits, as reported on the balance sheets $ 140 $ 129 Cash, restricted cash, cash equivalents and short-term restricted bank deposits as reported in the statements of cash flows $ 20,535 $ 11,126 |
Inventories | a. Inventories: Inventories are stated at the lower of cost or net realized value. Cost is determined on a “moving average” basis. Inventory write-down is provided to cover technological obsolescence, excess inventories and discontinued products. Inventory write-down represents the difference between the cost of the inventory and net realizable value. Inventory write-down is charged to the cost of revenues and ramp up of manufacturing when a new lower cost basis is established. Subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Work-in-process is immaterial, given the typically short manufacturing cycle, and therefore is disclosed in conjunction with raw materials. Total write-offs during the years ended December 31, 2019 and 2018 amounted to $62 and $41, respectively. |
Long-term assets | a. Long-term assets: Long-term lease deposits during the years ended December 31, 2019 and 2018 include mainly long-term deposits for the Company’s rent and leased vehicles, respectively. |
Property and equipment | a. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, and peripheral equipment 15-33 Office furniture and equipment 6-15 Production lines 14-20 Leasehold improvements Over the shorter of the lease term or |
Impairment of long-lived assets | a. Impairment of long-lived assets: Property and equipment are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. As of December 31, 2019 and 2018, no impairment was recorded. |
Revenue Recognition | a. Revenue recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC 606. The standard replaced the revenue recognition guidance in U.S. generally accepted accounting principles under ASC 605, and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional Accounting Standard Updates (each an “ASU”) related to ASU No. 2014-09, collectively referred to as the “new revenue standards,” which became effective for the Company beginning January 1, 2019. The Company adopted the standard using the modified retrospective method. The adoption of ASC 606 did not have a significant impact on the Company’s Consolidated Financial Statements. See Note 5 for further information. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company considers customer and distributers purchase orders to be the contracts with a customer. For each contract, the Company considers the promise to transfer tangible products and services, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to rebates and adjustments to determine the net consideration to which the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling price. Revenue from tangible products is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. The revenues from fixed-price services are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred. The Company's standard arrangements with its customers typically do not allow for rights of return. |
Cost of revenues | a. Cost of revenues: Cost of revenues is comprised of the cost of production, data center costs, shipping and handling inventory, personnel and related overhead costs, depreciation of production line and related equipment costs, amortization of deferred costs and inventory write-downs |
Concentrations of credit risk | a. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term restricted bank deposits and trade receivables. All of the cash and cash equivalents and short-term restricted bank deposits of the Company and its Subsidiary are invested in deposits and current accounts with major U.S. and Israeli banks. Such cash and cash equivalents and short-term restricted bank deposits may be in excess of insured limits and are not insured in other jurisdictions. Generally, cash and cash equivalents and short-term restricted bank deposits may be redeemed and therefore a minimal credit risk exists with respect to these deposits and investments. The Company’s trade receivables are derived mainly from sales to distributers and to end-users world-wide. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those specific amounts that the Company has determined to be doubtful of collection. The Company had no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. |
Income taxes | a. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). This guidance prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. As of December 31, 2019, and 2018 a full valuation allowance was provided by the Company. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. As of December 31, 2019, and 2018, no liability for unrecognized tax benefits was recorded as a result of the implementation of ASC 740. |
Research and development costs | a. Research and development costs: Research and development costs are charged to the consolidated statements of comprehensive loss, as incurred. |
Accounting for stock-based compensation | a. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statement of comprehensive loss. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon historical volatility of the Company. The expected option term represents the period that the Company’s stock options are expected to be outstanding and is determined based on the simplified method until sufficient historical exercise data will support using expected life assumptions. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. |
Fair Value of Financial Instruments | a. Fair value of financial instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent from the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The carrying amounts of cash and cash equivalents, short-term restricted bank deposits, trade receivables, other accounts receivable and prepaid expenses, trade payables and other accounts payable and accrued expenses approximate their fair value due to the short-term maturity of such instruments. Some of the inputs to these models are unobservable in the market and are significant. The Company has no financial assets or liabilities measured using Level 1, Level 2, or Level 3 inputs. |
Basic and diluted net loss per share | a. Basic and diluted net loss per share: Basic net loss per share is computed based on the weighted average number of shares of Common Stock outstanding during each year. Diluted net loss per share is computed based on the weighted average number of shares of Common Stock outstanding during each year, plus dilutive potential Common Stock considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”. The Company follows the two-class method when computing net loss per common share when shares are issued that meet the definition of participating securities. The two-class method determines net income (loss) per common share for each class of common shares and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between common shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company's convertible preferred shares contractually entitle the holders of such shares to participate in dividends. The total number of shares related to the outstanding options, warrant and preferred shares excluded from the calculations of diluted net loss per share due to their anti-dilutive effect was 6,545,910 and 997,906 for the year ended December 31, 2019 and 2018, respectively. |
Severance pay | a. Severance pay: Since inception date, all Ltd. employees who are entitled to receive severance pay in accordance with the applicable law in Israel, have been included under section 14 of the Israeli Severance Compensation Law (“Section 14”). Under this section, they are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made by the employer on their behalf with insurance companies. Payments in accordance with Section 14 release Ltd. from any future severance payments in respect of those employees. Payments under Section 14 are not recorded as an asset in the Company’s balance sheet. Severance pay expense for the year ended December 31, 2019 and 2018 amounted to $346 and $259, respectively. |
Legal and other contingencies | a. Legal and other contingencies: The Company accounts for its contingent liabilities in accordance with ASC 450 “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2018 and 2019, the Company is not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recently adopted accounting pronouncements | a. Recently adopted accounting pronouncements: In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC 606. The standard replaced the revenue recognition guidance in U.S. generally accepted accounting principles under ASC 605, and was required to be applied retrospectively to each prior period presented or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional Accounting Standard Updates (each an “ASU”) related to ASU No. 2014-09, collectively referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2019. The Company adopted the standard using the modified retrospective method. The adoption of ASC 606 did not have a significant impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASC 842”). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. The standard became effective for the Company beginning January 1, 2019. The Company adopted ASC 842 using the modified retrospective approach, by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under ASC 840. The Company elected the package of practical expedients permitted under ASC 842, which also allowed the Company to carry forward historical lease classifications. The Company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the ROU assets and lease liabilities. As a result of the adoption of ASC 842 on January 1, 2019, the Company recorded both operating lease ROU assets and operating lease liabilities of $847. The adoption did not impact the Company's beginning retained earnings, or prior year consolidated statements of comprehensive loss and statements of cash flows. See Note 6 for further information on leases. Under ASC 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index. As most of the Company's leases do not provide an implicit rate, the Company, with the assistance of a third-party valuation firm, determined the incremental borrowing rate in determining the present value of lease payments. The ROU assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. The Company lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating leases are included in operating lease ROU assets, current and non-current operating lease liabilities, on the Company's consolidated balance sheets. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This ASU supersedes ASC 505-50, “Equity—Equity Based Payments to Non-Employees,” and expands the scope of ASC 718, “Compensation—Stock Compensation,” to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. The standard became effective for the Company beginning January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective from the first quarter of 2019. Recently issued accounting pronouncements, not yet adopted: In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” (“ASU No. 2018-13”) which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; the ASU allows for early adoption in any interim period after issuance of the update. The adoption of this ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In September 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. The guidance also requires increased disclosures. For the Company, the amendments in the update were originally effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective date of ASU 2016-13 for smaller reporting companies (as defined by the U.S. Securities and Exchange Commission) and other non-SEC reporting entities to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted. The Company is currently assessing the impact the guidance will have on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of reconciliation of the cash balances reported on the balance sheets and the cash, cash equivalents and short-term restricted bank deposits balances | The following table provides a reconciliation of the cash balances reported on the balance sheets and the cash, cash equivalents and short-term restricted bank deposits balances reported in the statements of cash flows: December 31, 2019 2018 Cash, and cash equivalents as reported on the balance sheets $ 20,395 $ 10,997 Short-term restricted bank deposits, as reported on the balance sheets $ 140 $ 129 Cash, restricted cash, cash equivalents and short-term restricted bank deposits as reported in the statements of cash flows $ 20,535 $ 11,126 |
Schedule of annual rates of depreciation of Property and equipment | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, and peripheral equipment 15-33 Office furniture and equipment 6-15 Production lines 14-20 Leasehold improvements Over the shorter of the lease term or |
OTHER ACCOUNTS RECEIVABLE AND_2
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | |
Schedule of other accounts receivable and prepaid expenses | December 31, 2019 2018 Prepaid expenses $ 203 $ *) 243 Deferred costs 24 71 Government authorities 40 66 $ 267 $ 380 *) Reclassified |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | December 31, 2019 2018 Raw materials $ 536 $ 424 Finished products 878 953 $ 1,414 $ 1,377 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE | |
Schedule of aggregate revenue | The following tables represent The Company total revenues for the year ended December 31, 2019 and 2018 by performance obligation type as a result of implementing ASC 606 (prior period amounts have not been adjusted under the modified retrospective method): December 31, 2019 2018 Products $ 5,490 $ 7,158 Services 2,069 236 $ 7,559 $ 7,394 |
Schedule of Net Revenue | Consolidated revenues by category type are as follows (in thousands): December 31, 2019 2018 Consumer Products and other revenues $ 4,478 $ 6,832 Membership services 2,930 562 $ 7,559 $ 7,394 |
Schedule of significant changes in deferred revenue | The following table presents the significant changes in the deferred revenue balance during the year ended December 31, 2019: Balance, beginning of the period $ 736 New performance obligations 3,417 Reclassification to revenue as a result of satisfying performance obligations 2,930 Balance, end of the period $ 1,223 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of lease costs lease term and discount rate | The components of lease costs, lease term and discount rate are as follows: Twelve Months Ended December 31, 2019 Lease cost Operating lease cost $ 353 Short term lease cost 84 Variable lease cost 2 Total lease cost 439 Weighted Average Remaining Lease Term Operating leases 2.78 years Weighted Average Discount Rate Operating leases 7.34 % |
Schedule of maturities of lease liabilities | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2019: Operating Leases 2020 $ 327 2021 299 2022 218 Total undiscounted cash flows 844 Less imputed interest (72) Present value of lease liabilities $ 772 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases are as follows: Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 353 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 244 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property, Plant and Equipment | Composition of assets, grouped by major classification, is as follows: December 31, 2019 2018 Cost: Computers and peripheral equipment $ 233 $ 180 Office furniture and equipment 131 114 Production lines 748 736 Leasehold improvement 147 143 1,259 1,173 Accumulated depreciation: Computers and peripheral equipment 134 97 Office furniture and equipment 33 25 Production lines 412 301 Leasehold improvement 32 17 611 440 Property and equipment, net $ 648 $ 733 |
OTHER ACCOUNTS PAYABLE AND AC_2
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Schedule of other accounts payable and accrued expenses | December 31, 2019 2018 Employees and payroll accruals $ 1,137 $ 974 Accrued expenses 887 880 $ 2,024 $ 1,854 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TAXES ON INCOME | |
Schedule of Significant components of the Company's deferred tax assets | Significant components of the Company’s deferred tax assets are as follows: December 31, 2019 2018 Deferred tax assets: Net operating loss and capital losses carry forward $ 16,879 $ 10,294 Temporary differences 888 791 Deferred tax assets before valuation allowance 17,767 11,085 Valuation allowance (17,767) (11,085) Net deferred tax asset $ — $ — |
Schedule of Loss before taxes on income | Year ended December 31, 2019 2018 Domestic $ 4,418 $ 3,801 Foreign 13,318 14,002 $ 17,736 $ 17,803 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Stockholders' Equity, outstanding Warrants | a. The table below summarizes the outstanding warrants as of December 31, 2019: Warrants outstanding as of Exercise December 31, 2019 price $ Expiration date February 2015 PPM A (*) 232 November 25,2015 March 2016 Public Offering -Warrants 76,417 March 8, 2021 March 2016 Public Offering - Representative's Warrants 7,172 March 8, 2021 March 2017 Public Offering - Representative's Warrants 1,820 March 31, 2022 September 2018 PPM 459,796 September 13, 2021 September 2018 PPM (Finder Warrants) 7,030 September 13, 2021 September 2018 PPM 2 nd closing 13,335 September 26, 2021 December 2018 PPM 150,004 December 14, 2021 December 2018 PPM 2 nd closing 2,500 December 27, 2021 Placement Agent Warrants A-1 December 2019 485,688 December 19, 2024 Placement Agent Warrants A-2 December 2019 64,976 December 19, 2024 Placement Agent Warrants A-3 December 2019 150,214 December 19, 2024 Placement Agent Warrants A-4 December 2019 18,365 December 19, 2024 Total outstanding (**) 1,437,549 (*) (**) No warrants were exercised in 2019 and 2018. |
Schedule of Stock option activity | Transactions related to the grant of options to employees, directors and non-employees under the above plans during the year ended December 31, 2019 were as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual Intrinsic options**) price life value $ Years $ Options outstanding at beginning of year 89,436 111.74 368 Options granted 76,137 Options exercised 406 *)- Options expired 5,286 Options forfeited 11,801 Options outstanding at end of year 148,080 192 Options vested and expected to vest at end of year 132,517 185 Exercisable at end of year 72,532 127.3 156 *) Represents an amount lower than $1. **) Reverse Stock Split, see note 1f. |
Schedule of Compensation cost | Year ended December 31, 2019 2018 Cost of revenues $ 59 $ 116 Research and development 236 404 Sales and marketing 300 607 General and administrative 1,721 2,631 Total stock-based compensation expenses $ 2,316 $ 3,758 |
Employee And Director [Member] | |
Schedule of assumptions used to estimate the fair values of the options granted to employees, directors and non-employees | The following table presents the assumptions used to estimate the fair values of the options granted to employees and directors in the period presented: Year ended December 31, 2019 2018 Volatility 84.34 % - 90.82 % 83.41 % - 105.38 % Risk-free interest rate 1.69 % - 2.28 % 2.69 % - 2.88 % Dividend yield 0 % 0 % Expected life (years) - - 4.5 |
Non Employee [Member] | |
Schedule of assumptions used to estimate the fair values of the options granted to employees, directors and non-employees | The following table presents the assumptions used to estimate the fair values of the options granted to non-employees in the period presented: Year ended December 31, 2019 2018 Volatility 84.34 % - 90.82 % 82.61 % ‑ 107.42 % Risk-free interest rate 1.41 % - 2.28 % 2.41 % ‑ 2.96 % Dividend yield 0 % 0 % Expected life (years) 3.5 - 4.5 2.96 ‑ 5.94 |
SELECTED STATEMENTS OF OPERAT_2
SELECTED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SELECTED STATEMENTS OF OPERATIONS DATA | |
Schedule of other nonoperating income | Financial expenses (income), net: Year ended December 31, 2019 2018 Bank charges $ 27 $ 18 Foreign currency adjustments losses, net 20 98 Change in the fair value of warrants — (1) Interest income (16) — Total Financial income, net $ 31 $ 115 |
GENERAL (Details)
GENERAL (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 04, 2016 | |
GENERAL | |||
Operating Income (Loss) | $ 17,705 | $ 17,688 | |
Net Cash Provided by (Used in) Operating Activities | $ 15,725 | $ 11,470 | |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Summary of reconciliation of the cash balances reported on the balance sheets and the cash, cash equivalents and short-term restricted bank deposits balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SIGNIFICANT ACCOUNTING POLICIES | |||
Cash, and cash equivalents as reported on the balance sheets | $ 20,395 | $ 10,997 | |
Short-term restricted bank deposits, as reported on the balance sheets | 140 | 129 | |
Cash, restricted cash, cash equivalents and short-term restricted bank deposits as reported in the statements of cash flows | $ 20,535 | $ 11,126 | $ 3,925 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Summary of annual rates of depreciation of Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 15.00% |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 15.00% |
Production Lines [Member] | Minimum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 14.00% |
Production Lines [Member] | Maximum [Member] | |
Rate Of Depreciation [Line Items] | |
Rate Of Annual Depreciation | 20.00% |
Leasehold Improvement [Member] | |
Rate Of Depreciation [Line Items] | |
Annual Depreciation Description | Over the shorter of the lease term oruseful economic life |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Accounting Policies [Line Items] | |||
Short Term Restricted Bank Deposits, Collateral For Rent | $ 128 | $ 119 | |
Short Term Restricted Bank Deposits, Collateral For Credit Payment | 63 | 61 | |
Inventory Write-down | 62 | 41 | |
Asset Impairment Charges | 0 | $ 0 | |
Right Of Use Assets and Lease Liabilities Carrying Amount | $ 0 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,545,910 | 997,906 | |
Percentage Of Monthly Deposits Behalf Of Insurance Companies | 8.33% | ||
Severance Costs | $ 346 | $ 259 | |
Operating Lease, Right-of-Use Asset | 765 | $ 0 | |
Operating Lease, Liability | $ 772 | ||
Accounting Standards Update 2016-02 [Member] | |||
Accounting Policies [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 847 | ||
Operating Lease, Liability | $ 847 | ||
Bank Time Deposits [Member] | |||
Accounting Policies [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.02% | 0.02% |
OTHER ACCOUNTS RECEIVABLE AND_3
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | ||
Prepaid expenses | $ 203 | $ 243 |
Deferred costs | 24 | 71 |
Government authorities | 40 | 66 |
Prepaid Expense and Other Assets, Current | $ 267 | $ 380 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INVENTORIES | ||
Raw materials | $ 536 | $ 424 |
Finished products | 878 | 953 |
Inventory, Net | $ 1,414 | $ 1,377 |
REVENUE - Total revenues (Detai
REVENUE - Total revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 7,559 | $ 7,394 |
Product [Member] | ||
Revenues | 5,490 | 7,158 |
Service [Member] | ||
Revenues | 2,069 | 236 |
Consumer Products and other revenues | ||
Revenues | 4,478 | 6,832 |
Membership services | ||
Revenues | $ 2,930 | $ 562 |
REVENUE - Deferred revenue (Det
REVENUE - Deferred revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
REVENUE | |
Balance, beginning of the period | $ 736 |
New performance obligations | 3,417 |
Reclassification to revenue as a result of satisfying performance obligations | 2,930 |
Balance, end of the period | $ 1,223 |
LEASES - Lease costs, lease ter
LEASES - Lease costs, lease term and discount rate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
Operating lease cost | $ 353 |
Short term lease cost | 84 |
Variable lease cost | 2 |
Total lease cost | $ 439 |
Weighted Average Remaining Lease Term | |
Operating leases | 2 years 9 months 11 days |
Weighted Average Discount Rate | |
Operating leases | 7.34% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
LEASES | |
2020 | $ 327 |
2021 | 299 |
2022 | 218 |
Total undiscounted cash flows | 844 |
Less imputed interest | (72) |
Present value of lease liabilities | $ 772 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 353 |
Lease liabilities arising from obtaining right-of-use assets | |
Operating leases | $ 244 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 1,259 | $ 1,173 |
Accumulated depreciation | 611 | 440 |
Property, Plant and Equipment, Net, Total | 648 | 733 |
Computers and peripheral equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 233 | 180 |
Accumulated depreciation | 134 | 97 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 131 | 114 |
Accumulated depreciation | 33 | 25 |
Production Lines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 748 | 736 |
Accumulated depreciation | 412 | 301 |
Leasehold Improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 147 | 143 |
Accumulated depreciation | $ 32 | $ 17 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT, NET | ||
Depreciation | $ 183 | $ 207 |
OTHER ACCOUNTS PAYABLE AND AC_3
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Employees and payroll accruals | $ 1,137 | $ 974 |
Accrued expenses | 887 | 880 |
Other Accounts Payable and Accrued Expenses | $ 2,024 | $ 1,854 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Credit Card Receivable [Member] | |
Operating Leased Assets [Line Items] | |
Other Commitment | $ 191 |
Rental Agreement [Member] | |
Operating Leased Assets [Line Items] | |
Other Commitment | $ 191 |
TAXES ON INCOME - Deferred tax
TAXES ON INCOME - Deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss and capital losses carry forward | $ 16,879 | $ 10,294 |
Temporary differences | 888 | 791 |
Deferred tax assets before valuation allowance | 17,767 | 11,085 |
Valuation allowance | (17,767) | (11,085) |
Net deferred tax asset | $ 0 | $ 0 |
TAXES ON INCOME - Loss before t
TAXES ON INCOME - Loss before taxes on income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
TAXES ON INCOME | ||
Domestic | $ 4,418 | $ 3,801 |
Foreign | 13,318 | 14,002 |
Income Loss from Continuing Operations before Income Taxes | $ 17,736 | $ 17,803 |
TAXES ON INCOME - Additional in
TAXES ON INCOME - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 23.00% | 23.00% |
Operating Loss Carryforwards | $ 62,470 | |
Operating losses subject to expiration | 7,120 | |
Operating losses not subject to expiration | 3,926 | $ 3,926 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 6,682 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Percentage of income to be offset by net operating loss carry forwards | 80.00% | |
Scenario, Plan [Member] | ||
Valuation Allowance [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Maximum [Member] | ||
Valuation Allowance [Line Items] | ||
Operating Loss Carry forwards Expiration Period | 2037 | |
Minimum [Member] | ||
Valuation Allowance [Line Items] | ||
Operating Loss Carry forwards Expiration Period | 2031 | |
Domestic Tax Authority [Member] | ||
Valuation Allowance [Line Items] | ||
Operating Loss Carryforwards | $ 11,046 |
STOCKHOLDERS' EQUITY - Outstand
STOCKHOLDERS' EQUITY - Outstanding warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Sep. 26, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 1,437,549 | |
Exercise price | $ 18 | |
February 2015 PPM A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 232 | |
Exercise price | $ 86.40 | |
Expiration date | Nov. 25, 2015 | |
March 2016 Public Offering Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 76,417 | |
Exercise price | $ 86.80 | |
Expiration date | Mar. 8, 2021 | |
March 2016 Public Offering Representative Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 7,172 | |
Exercise price | $ 112.500 | |
Expiration date | Mar. 8, 2021 | |
March 2017 Public Offering Representative Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 1,820 | |
Exercise price | $ 77.500 | |
Expiration date | Mar. 31, 2022 | |
September 2018 PPM [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 459,796 | |
Exercise price | $ 25 | |
Expiration date | Sep. 13, 2021 | |
September 2018 PPM [Member] | Finder [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 7,030 | |
Exercise price | $ 25 | |
Expiration date | Sep. 13, 2021 | |
December 2018 PPM [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 150,004 | |
Exercise price | $ 25 | |
Expiration date | Dec. 14, 2021 | |
September 2018 PPM 2nd Closing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 13,335 | |
Exercise price | $ 25 | |
Expiration date | Sep. 26, 2021 | |
December 2018 PPM 2nd closing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 2,500 | |
Exercise price | $ 25 | |
Expiration date | Dec. 27, 2021 | |
Placement Agent Warrants A-1 December 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 485,688 | |
Exercise price | $ 4.05 | |
Expiration date | Dec. 19, 2024 | |
Placement Agent Warrants A-2 December 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 64,976 | |
Exercise price | $ 4.28 | |
Expiration date | Dec. 19, 2024 | |
Placement Agent Warrants A-3 December 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 150,214 | |
Exercise price | $ 4.98 | |
Expiration date | Dec. 19, 2024 | |
Placement Agent Warrants A-4 December 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding as of December | 18,365 | |
Exercise price | $ 5.90 | |
Expiration date | Dec. 19, 2024 |
STOCKHOLDERS' EQUITY - Stock op
STOCKHOLDERS' EQUITY - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
STOCKHOLDERS' EQUITY | ||
Options outstanding at beginning of year, Number of options | 89,436 | |
Options granted, Number of options | 76,137 | |
Options exercised, Number of options | 406 | |
Options expired, Number of options | 5,286 | |
Options forfeited, Number of options | 11,801 | |
Options outstanding at end of year, Number of options | 148,080 | 89,436 |
Options vested and expected to vest at end of year, Number of options | 132,517 | |
Exercisable at end of year, Number of options | 72,532 | |
Options outstanding at beginning of year, Weighted average exercise price | $ 111.74 | |
Options granted, Weighted average exercise price | 9.41 | |
Options exercised, Weighted average exercise price | 0 | |
Options expired, Weighted average exercise price | 63.22 | |
Options forfeited, Weighted average exercise price | 20.98 | |
Options outstanding at end of year, Weighted average exercise price | 68.56 | $ 111.74 |
Options vested and expected to vest at end of year, Weighted average exercise price | 73.81 | |
Exercisable at end of year, Weighted average exercise price | $ 127.30 | |
Options outstanding at, Weighted Average remaining contractual life | 4 years 4 months 28 days | 4 years 3 months 26 days |
Options vested and expected to vest at end of year, Weighted Average remaining contractual life | 4 years 3 months 22 days | |
Exercisable at end of year, Weighted Average remaining contractual life | 3 years 2 months 5 days | |
Options outstanding at beginning of year, Aggregate Intrinsic value | $ 368 | |
Options outstanding at end of year, Aggregate Intrinsic value | 192 | $ 368 |
Options vested and expected to vest at end of year, Aggregate Intrinsic value | 185 | |
Exercisable at end of year, Aggregate Intrinsic value | $ 156 |
STOCKHOLDERS' EQUITY - Assumpti
STOCKHOLDERS' EQUITY - Assumptions Used to estimate fair value (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee And Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility, Minimum | 84.34% | 83.41% |
Volatility, Maximum | 90.82% | 105.38% |
Risk-free interest rate, Minimum | 1.69% | 2.69% |
Risk-free interest rate, Maximum | 2.28% | 2.88% |
Dividend yield | 0.00% | 0.00% |
Employee And Director [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 6 months | 3 years 6 months |
Employee And Director [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years 6 months | 4 years 6 months |
Non Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility, Minimum | 84.34% | 82.61% |
Volatility, Maximum | 90.82% | 107.42% |
Risk-free interest rate, Minimum | 1.41% | 2.41% |
Risk-free interest rate, Maximum | 2.28% | 2.96% |
Dividend yield | 0.00% | 0.00% |
Non Employee [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 6 months | 2 years 11 months 16 days |
Non Employee [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years 6 months | 5 years 11 months 9 days |
STOCKHOLDERS' EQUITY - Compensa
STOCKHOLDERS' EQUITY - Compensation cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | $ 2,316 | $ 3,758 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 59 | 116 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 236 | 404 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 300 | 607 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | $ 1,721 | $ 2,631 |
STOCKHOLDERS' EQUITY- Additiona
STOCKHOLDERS' EQUITY- Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 24, 2019 | May 24, 2019 | Apr. 29, 2019 | Dec. 27, 2018 | Dec. 10, 2018 | Sep. 26, 2018 | Jul. 23, 2018 | Mar. 06, 2018 | Feb. 28, 2018 | Nov. 22, 2018 | Jul. 31, 2018 | Jul. 23, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 23, 2018 | Dec. 31, 2019 | Oct. 31, 2019 | Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 29, 2018 |
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 152,504 | $ 0 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 76,137 | ||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 9.41 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 378,052 | 21,375 | |||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | 0.0001 | $ 0.0001 | |||||||||||||||||||
Gross Proceeds from Issuance of Preferred Stock and Preference Stock | $ 21,375 | ||||||||||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 18,689 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.41 | $ 11.20 | |||||||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 977 | $ 977 | $ 977 | ||||||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 28 days | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 51,018 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 18 | ||||||||||||||||||||||
Proceeds from Warrant Exercises | $ 3,050 | $ 3,023 | |||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 6,034 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 42,500 | 3,141 | 1,313 | 400 | 462,000 | ||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 1,011 | $ 1,055 | |||||||||||||||||||||
Fair Value Adjustment of Warrants | $ 0 | (1) | |||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 152,504 | ||||||||||||||||||||||
Prefunded Purchase Warrants Excluded | 358,799 | ||||||||||||||||||||||
Service Fees Payable | $ 8 | $ 298 | |||||||||||||||||||||
Due to Related Parties | $ 45 | ||||||||||||||||||||||
Class Of Warrant Or Right Aggregate with Shares Consideration | 31,838 | ||||||||||||||||||||||
Dividends, Common Stock, Stock | $ 0 | ||||||||||||||||||||||
Shares Issued, Price Per Share | $ 20 | ||||||||||||||||||||||
Deemed Dividend Related To Warrant Exchange Agreement | $ 493 | ||||||||||||||||||||||
Shares of Common Stock Equal to 10 Percent of Stock Issuable on Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Conversion of Preferred Stock Share Holding Period | 12 months | ||||||||||||||||||||||
Shares of Common Stock Equal to 15 Percent of Stock Issuable on Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Conversion of Preferred Stock Share Holding Period | 24 months | ||||||||||||||||||||||
Shares of Common Stock Equal to 20 Percent of Stock Issuable on Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Conversion of Preferred Stock Share Holding Period | 36 months | ||||||||||||||||||||||
2012 Plan Amendment [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | 225,000 | |||||||||||||||||||||
2012 Plan Amendment [Member] | Minimum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 143,650 | 393,650 | |||||||||||||||||||||
2012 Plan Amendment [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 393,650 | 618,650 | |||||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 6,623 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 61,704 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 123,408 | ||||||||||||||||||||||
Pre Funded Warrant [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Sale of Stock, Price Per Share | $ 11.998 | ||||||||||||||||||||||
Holder Percentage of Owning, Number of Shares of Common Stock Outstanding | 4.99% | ||||||||||||||||||||||
Purchaser Percentage of Owning, Number of Shares of Common Stock Outstanding | 9.99% | ||||||||||||||||||||||
Limitation on Exercise of Warrant, Percentage of Holder Owning, Common Shares Outstanding | 19.99% | ||||||||||||||||||||||
Shares Issued, Price Per Share | $ 0.0001 | ||||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Conversion Price | $ 4.05 | ||||||||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | $ 295 | ||||||||||||||||||||||
Beneficial Ownership Approval Percentage, Conversion of Preferred Stock | 50.10% | ||||||||||||||||||||||
Conversion of Preferred Stock Share Holding Period | 36 months | ||||||||||||||||||||||
Series A One Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Conversion Price | $ 4.05 | ||||||||||||||||||||||
Series A Two Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Conversion Price | 4.28 | ||||||||||||||||||||||
Series A Three Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Conversion Price | 4.98 | ||||||||||||||||||||||
Series A Four Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Conversion Price | 5.90 | ||||||||||||||||||||||
Series A2, A3 and A4 Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | $ 2,860 | ||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 0 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,167 | 189,218 | 31,838 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 28 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 104,363 | 38,285 | |||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 0 | $ 0 | |||||||||||||||||||||
Service Fees Payable | $ 504 | ||||||||||||||||||||||
Conversion of Stock, Shares Issued | 501,460 | ||||||||||||||||||||||
Dividends, Common Stock, Stock | $ 0 | ||||||||||||||||||||||
Shares Issued, Price Per Share | 28 | ||||||||||||||||||||||
Warrants To Purchase Common Stock Exercise Price Per Share | $ 56 | ||||||||||||||||||||||
Placement Agent Warrants [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Non Accountable Expense Allowance | $ 641 | ||||||||||||||||||||||
Class of Warrants or Rights Exercisable Term | 5 years | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 719,243 | 719,243 | 719,243 | ||||||||||||||||||||
Placement Agent Warrants [Member] | Minimum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.05 | $ 4.05 | $ 4.05 | ||||||||||||||||||||
Placement Agent Warrants [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.90 | $ 5.90 | $ 5.90 | ||||||||||||||||||||
Placement Agent Warrants [Member] | Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Placement Agent Fee | $ 1,788 | ||||||||||||||||||||||
Board Of Director And Officers [Member] | Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.0001 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 1,864 | ||||||||||||||||||||||
President And Chief Commercial Officer [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 15.900 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 6,000 | ||||||||||||||||||||||
Employees [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 18.540 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 2,346 | 12,200 | 12,206 | ||||||||||||||||||||
Employees [Member] | Minimum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 5.63 | ||||||||||||||||||||||
Employees [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 6.35 | ||||||||||||||||||||||
Consultants [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 34.580 | $ 0.0001 | $ 0.0001 | $ 12 | $ 34.580 | ||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 1,050 | 3,541 | 4,688 | 3,939 | 1,048 | ||||||||||||||||||
Due to Related Parties | $ 102 | $ 102 | $ 150 | ||||||||||||||||||||
Employees Directors And Consultants [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 15.40 | $ 19.960 | |||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 29,236 | 57,642 | 57,642 | ||||||||||||||||||||
Board Of Directors, Officers And Employees [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 14.40 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 51,613 | ||||||||||||||||||||||
Board Of Directors, Officers And Employees [Member] | 2012 Plan Amendment [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,225 | ||||||||||||||||||||||
Board Of Directors, Officers And Employees [Member] | Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 104,363 | 38,285 | |||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 1,011 | $ 1,055 | |||||||||||||||||||||
Service Provider [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,378 | 4,753 | |||||||||||||||||||||
Service Provider [Member] | Amended And Restated 2012 Equity Incentive Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 1,613 | ||||||||||||||||||||||
Service Provider [Member] | Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 10,093,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 18,500 | ||||||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 213,340 | 113,110 | 113,110 | ||||||||||||||||||||
Private Placement [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Shares Issued, Price Per Share | $ 18 | ||||||||||||||||||||||
Private Placement [Member] | Series D Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 94,513 | ||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 9,686 | ||||||||||||||||||||||
Shares Issued, Price Per Share | $ 72 | ||||||||||||||||||||||
Gross Proceeds From Private Placement | $ 10,645 | ||||||||||||||||||||||
Private Placement [Member] | Warrant [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 473,131 | ||||||||||||||||||||||
Public Offering [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 242,768 | ||||||||||||||||||||||
Stock Issued Price Per Share | $ 12 | ||||||||||||||||||||||
Public Offering [Member] | Pre Funded Warrant [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Proceeds from Issuance Initial Public Offering | $ 6,558 | ||||||||||||||||||||||
Public Offering [Member] | Pre Funded Warrant [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 358,779 |
SELECTED STATEMENTS OF OPERAT_3
SELECTED STATEMENTS OF OPERATIONS DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SELECTED STATEMENTS OF OPERATIONS DATA | ||
Bank charges | $ 27 | $ 18 |
Foreign currency adjustments losses, net | 20 | 98 |
Change in the fair value of warrants | 0 | (1) |
Interest income | (16) | 0 |
Total Financial income, net | $ 31 | $ 115 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2020 | Feb. 27, 2020 | Feb. 12, 2020 | Jan. 30, 2020 | Jan. 29, 2020 | Dec. 24, 2019 | Jul. 23, 2018 | Mar. 31, 2020 | Jan. 31, 2020 | Nov. 22, 2018 | Jul. 23, 2018 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Feb. 05, 2020 | Dec. 31, 2018 | Nov. 29, 2018 | May 31, 2018 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 42,500 | 3,141 | 1,313 | 400 | 462,000 | |||||||||||||
Due to Related Parties | $ 45 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 76,137 | |||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 9.41 | |||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 51,018 | |||||||||||||||||
Class Of Warrant Or Right Aggregate with Shares Consideration | 31,838 | |||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Class Of Warrant Or Right Aggregate with Shares Consideration | 97,536 | |||||||||||||||||
Stock Issued During Period Shares Non Qualified Stock Option Gross | 90,000 | |||||||||||||||||
Stock Issued During Period Shares Non Qualified Performance Based Stock Option Gross | 90,000 | |||||||||||||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 139,336 | |||||||||||||||||
Consultants [Member] | Subsequent Event [Member] | ||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 50,000 | |||||||||||||||||
Consultants [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 6.56 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 13,750 | |||||||||||||||||
Consultants [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 12 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | |||||||||||||||||
Director [Member] | Subsequent Event [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 7.30 | |||||||||||||||||
Stock Issued During Period Shares Non Qualified Stock Option Gross | 90,000 | |||||||||||||||||
Twenty Twelve Plan [Member] | Subsequent Event [Member] | ||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 16,280 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 540 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||||||||
Twenty Twelve Plan [Member] | Board of Director and Officer [Member] | Subsequent Event [Member] | ||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 654,246 | 47,074 | ||||||||||||||||
Due to Related Parties | $ 201 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 7.736 | $ 8.27 | ||||||||||||||||
Twenty Twelve Plan [Member] | Employees [Member] | Subsequent Event [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 335,991 | 25,000 | ||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 9.237 | $ 8.41 | ||||||||||||||||
Twenty Twelve Plan [Member] | Chief medical Officer [Member] | Subsequent Event [Member] | ||||||||||||||||||
Stock Issued During Period Shares Non Qualified Stock Option Gross | 50,000 | |||||||||||||||||
2012 Plan Amendment [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | 225,000 | ||||||||||||||||
2012 Plan Amendment [Member] | Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 143,650 | 393,650 | ||||||||||||||||
2012 Plan Amendment [Member] | Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 393,650 | 618,650 | ||||||||||||||||
2012 Plan Amendment [Member] | Subsequent Event [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,350,000 | |||||||||||||||||
2012 Plan Amendment [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 618,650 | |||||||||||||||||
2012 Plan Amendment [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,968,650 | |||||||||||||||||
Service Provider [Member] | ||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,378 | 4,753 |