DarioHealth (DRIO) 10-Q 11 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document Information [Line Items]
Entity Registrant Name	LabStyle Innovations Corp.
Entity Central Index Key	1,533,998
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	DRIO
Entity Common Stock, Shares Outstanding		5,581,216
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 8,267	$ 2,671
Short-term bank deposits	82	80
Inventories	1,005	601
Other accounts receivable and prepaid expenses	894	935
Total current assets	10,248	4,287
LEASE DEPOSITS	33	41
PROPERTY AND EQUIPMENT, NET	682	749
Total assets	10,963	5,077
CURRENT LIABILITIES:
Trade payables	556	978
Deferred revenues	8	31
Other accounts payable and accrued expenses	925	681
Total current liabilities	1,489	1,690
LIABILITY RELATED TO WARRANTS	$ 1,863	$ 2,610
COMMITMENTS AND CONTINGENT LIABILITIES
CONVERTIBLE PREFERRED SHARES:
Series A Preferred Stock of $0.0001 par value - Authorized: 60,000 shares at March 31, 2016 (unaudited) and December 31, 2015; Issued and Outstanding: None and 1,984 shares at March 31, 2016 (unaudited) and December 31, 2015, respectively; Aggregate liquidation preference of none and $3,560 at March 31, 2016 (unaudited) and December 31, 2015, respectively	$ 0	$ 2,357
STOCKHOLDERS' EQUITY (DEFICIENCY)
Common Stock of $0.0001 par value - Authorized: 160,000,000 shares at March 31, 2016 (unaudited) and December 31, 2015; Issued and Outstanding: 5,575,633 and 2,911,788 shares at March 31, 2016 (unaudited) and December 31, 2015, respectively	6	5
Preferred Stock of $0.0001 par value - Authorized: 4,940,000 shares at March 31, 2016 (unaudited) and December 31, 2015; Issued and Outstanding: None at March 31, 2016 (unaudited) and December 31, 2015	0	0
Additional paid-in capital	52,603	41,769
Accumulated deficit	(44,998)	(43,354)
Total stockholders' equity (deficiency)	7,611	(1,580)
Total liabilities and stockholders' equity (deficiency)	$ 10,963	$ 5,077

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
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	5,575,633	2,911,788
Common stock, shares, outstanding	5,575,633	2,911,788
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	4,940,000	4,940,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A Preferred Stock [Member]
Temporary equity, par value (in dollars per share)	$ 0.0001	$ 0.0001
Temporary Equity, Shares Authorized	60,000	60,000
Temporary Equity, Shares Issued	0	1,984
Temporary Equity, Shares Outstanding	0	1,984
Temporary Equity, Liquidation Preference	$ 0	$ 3,560

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues	$ 568	$ 67
Cost of revenues	670	297
Gross loss	102	230
Operating expenses:
Research and development	397	883
Sales and marketing	519	252
General and administrative	905	412
Total operating expenses	1,821	1,547
Operating loss	1,923	1,777
Financial expenses (income), net:
Revaluation of warrants	(747)	(150)
Other financial expense, net	13	11
Total financial expenses (income), net	(734)	(139)
Net loss	1,189	1,638
Deemed dividend related to Series A Preferred Stock exchange agreement	455	0
Net loss attributable to holders of Common Stock	$ 1,644	$ 1,638
Net loss per share
Basic and diluted loss per share (in dollars per share)	$ (0.33)	$ (1.39)
Weighted average number of Common Stock used in computing basic and diluted net loss per share (in shares)	3,652,474	1,175,603

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($) $ in Thousands	Total		Common Stock [Member]		Additional Paid-in Capital [Member]		Accumulated deficit [Member]
Balance at Dec. 31, 2014	$ (5,295)		$ 2		$ 30,761		$ (36,058)
Balance (in shares) at Dec. 31, 2014			902,068
Issuance of Common Stock and warrants in February 2015 at $3.24 per unit, net of issuance cost	1,956		$ 1		1,955		0
Issuance of Common Stock and warrants in February 2015 at $3.24 per unit, net of issuance cost (in shares)			627,035
Issuance of Common Stock in July and August 2015 at $5.40 per unit, net of issuance cost	2,325		$ 1		2,324		0
Issuance of Common Stock in July and August 2015 at $5.40 per unit, net of issuance cost (in shares)			480,368
Issuance of Common stock in November 2015 at $5.40 per unit, net of issuance cost	2,294		$ 1		2,293		0
Issuance of Common stock in November 2015 at $5.40 per unit, net of issuance cost (in shares)			446,223
Issuance of Common stock in December 2015 at $6.16 per unit, net of issuance cost	500		$ 0	[1]	500		0
Issuance of Common stock in December 2015 at $6.16 per unit, net of issuance cost (in shares)			81,222
Issuance of Common Stock in April, August and December 2015 to service provider	118		$ 0	[1]	118		0
Issuance of Common Stock in April, August and December 2015 to service provider (in shares)			16,668
Issuance of Common Stock in September 2015 to employees as compensation	591		$ 0	[1]	591		0
Issuance of Common Stock in September 2015 to employees as compensation (in shares)			97,121
Issuance of Common Stock in September 2015 to service provider	16		$ 0	[1]	16		0
Issuance of Common Stock in September 2015 to service provider (in shares)			2,778
Payment for executives and directors under Salary Program	304		$ 0	[1]	304		0
Payment for executives and directors under Salary Program (in shares)			55,474
Exercise of warrants into Common Stock, net of issuance cost	453		$ 0	[1]	453		0
Exercise of warrants into Common Stock, net of issuance cost (in shares)			106,881
Deemed dividend related to inducement of warrant exercise in May 2015	0		$ 0		154		(154)
Issuance of warrants related to warrant replacement agreement in November and December 2015	822		0		822		0
Receipts on Account of shares	20		0		20		0
Conversion of Series A Preferred Stock into Common Stock	400		$ 0	[1]	400		0
Conversion of Series A Preferred Stock into Common Stock (in shares)			84,812
Exercise of warrants	60		$ 0	[1]	60		0
Exercise of warrants (in shares)			10,804
Exercise of options	0	[1]	$ 0	[1]	0	[1]	0
Exercise of options (in shares)			334
Stock-based compensation	998		$ 0		998		0
Net loss	(7,142)		0		0		(7,142)
Balance at Dec. 31, 2015	(1,580)		$ 5		41,769		(43,354)
Balance (in shares) at Dec. 31, 2015			2,911,788
Issuance of Common Stock in March 2016 Public Offering, net of issuance cost	5,038		$ 1		5,037		0
Issuance of Common Stock in March 2016 Public Offering, net of issuance cost (in shares)			1,333,333
Issuance of Common Stock in March 2016 Private Placement, net of issuance cost	2,500		$ 0	[1]	2,500		0
Issuance of Common Stock in March 2016 Private Placement, net of issuance cost (in shares)			599,999
Issuance of Common Stock in January 2016 to service provider	37		$ 0	[1]	37		0
Issuance Of Common Stock In January 2016 To Service Provider Shares			5,556
Payment for executives and directors under Salary Program	75		$ 0	[1]	75		0
Payment for executives and directors under Salary Program (in shares)			9,849
Issuance of Common Stock in March 2016 to officer	86		$ 0	[1]	86		0
Issuance of Common Stock in March 2016 to officer (in shares)			20,000
Exercise of warrants into Common Stock, net of issuance cost	190		$ 0	[1]	190		0
Exercise of warrants into Common Stock, net of issuance cost (in shares)			71,436
Deemed dividend related to change in the conversion terms of Series A Preferred Stock into Common Stock in March 2016	0		$ 0		455		(455)
Deemed dividend related to change in the conversion terms of Series A Preferred Stock into Common Stock in March 2016 (in shares)			124,737
Conversion of Series A Preferred Stock into Common Stock	2,277		$ 0	[1]	2,277		0
Conversion of Series A Preferred Stock into Common Stock (in shares)			498,935
Stock-based compensation	177		$ 0		177		0
Net loss	(1,189)		0		0		(1,189)
Balance at Mar. 31, 2016	$ 7,611		$ 6		$ 52,603		$ (44,998)
Balance (in shares) at Mar. 31, 2016			5,575,633
[1]	Represents an amount lower than $1.

STATEMENTS OF CHANGES IN STOCK6

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) (Parenthetical)	12 Months Ended
	Dec. 31, 2015$ / shares
Issuance Of Common Stock and Warrants In February 2015	$ 3.24
Issuance Of Common Stock In July And August 2015	5.40
Issuance Of Common Stock November 2015	5.40
Issuance Of Common Stock December 2015	$ 6.16

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (1,189)	$ (1,638)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation and Common Stock to service providers	324	125
Depreciation	102	79
Increase is trade receivables	0	(22)
Decrease in accounts receivables and prepaid expenses	10	22
Increase in inventories	(404)	0
Increase (decrease) in trade payables	(422)	145
Increase (decrease) in deferred revenues	(23)	32
Increase (decrease) in other accounts payable and accrued expenses	244	(118)
Decrease in fair value of warrants	(747)	(150)
Net cash used in operating activities	(2,105)	(1,525)
Cash flows from investing activities:
Proceeds of maturities of short-term bank deposit	0	(13)
Investment in restricted cash	0	13
Maturity of (investment in) lease deposits	8	7
Purchase of property and equipment	(35)	(36)
Net cash used in investing activities	(27)	(29)
Cash flows from financing activities:
Proceeds from issuance of Common Stock and warrants, net of issuance cost	7,538	$ 1,956
Proceeds from exercise of options and warrants	190		[1]
Net cash provided by financing activities	7,728	$ 1,956
Increase in cash and cash equivalents	5,596	402
Cash and cash equivalents at the beginning of the period	2,671	1,453
Cash and cash equivalents at the end of the period	8,267	1,855
Non-cash investing and financing activities:
Purchase of property and equipment	0	29
Conversion of Series A Preferred Stock into Common Stock	2,277	102
Payment for directors under Salary Program	$ 51	$ 0
[1]	Represents an amount lower than $1.

GENERAL

GENERAL	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1:- GENERAL a. LabStyle Innovations Corp. (the “Company”) was incorporated in Delaware and commenced operations on August 11, 2011. 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 TM TM TM 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 (“LabStyle US”), which was established in 2014, however it has not started its operations to date. c. During the three months ended March 31, 2016, the Company incurred operating losses and negative cash flows from operating activities amounting to $1,923 and $2,105, respectively. The Company will be required to obtain additional liquidity resources 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. According to management estimates, the Company has sufficient liquidity resources to continue its planned activity into July 2017. 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. On June 15, 2015, the Company held its 2015 Annual Meeting of Stockholders in which, among other matters, Company stockholders approved an amendment to the Company’s certificate of incorporation with respect to a reverse split of the Company’s issued and outstanding Common Stock in a ratio to be determined by the Company’s Board of Directors. On February 17, 2016, the Company’s Board of Directors approved a reverse split in a ratio of one-to-eighteen. The 2016 reverse split was implemented on February 26, 2016 (the "2016 Reverse Split"). The amount of authorized Common Stock as well as the par value for the Common Stock were not affected. Any fractional shares resulting from the 2016 Reverse Split were rounded up to the nearest whole share. All Common Stock, warrants, options and per share amounts set forth herein are presented to give retroactive effect to the 2016 Reverse Split for all periods presented. e. In December 2015, the United States Food and Drug Administration (“FDA”) granted the Subsidiary 510(k) clearance for the Dario TM TM TM f. On March 4, 2016, the Company's Common Stock and warrants were approved for listing on NASDAQ Capital Market under the symbols “DRIO” and “DRIOW,” respectively .

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 are applied consistently in these unaudited interim consolidated financial statements.

UNAUDITED INTERIM FINANCIAL STA

UNAUDITED INTERIM FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting [Text Block]	NOTE 3:- UNAUDITED INTERIM FINANCIAL STATEMENTS The accompanying unaudited interim consolidated financial statements as of March 31, 2016, have been prepared in accordance with U.S. generally accepted accounting principles and standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of March 31, 2016, and the Company's consolidated results of operations and the Company's consolidated cash flows for the three months ended March 31, 2016. Results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 4:- INVENTORIES March 31, December 31, 2016 2015 Unaudited Raw materials $ 508 $ 469 Finished products 497 132 $ 1,005 $ 601 During the three months period ended March 31, 2016 and the year ended December 31, 2015, total inventory write-off expenses amounted to $94 and $193, respectively.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 5:- COMMITMENTS AND CONTINGENT LIABILITIES From time to time the Company is involved in claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss.

STOCKHOLDERS' EQUITY (DEFICIENC

STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 6:- STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES a. Series A Preferred Stock: On February 18, 2016, the Company entered into a Preferred Stock Conversion Agreement (the "Preferred Stock Conversion Agreement") with the holders of the Series A Preferred Stock according to which the then currently outstanding 1,984 623,672 25 2,277 455 b. On April 3, 2015, the Company's Board of Directors approved the following: 1. To reserve 22,224 5,556 37 5,556 2. Issuance 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 or fees owed to such individuals. During the three month period ended March 31, 2016, the Company issued 9,849 75 c. On March 8, 2016, the Company closed a public offering (the “Public Offering”) of 1,333,333 4.50 1,333,333 five-year one share 4.50 0.01 5,038 111,112 500 The March 2016 Warrants are exercisable for cash or on a cashless basis if no registration statement covering the resale of the shares issuable upon exercise of the Warrants is available. In addition, the Company granted to the underwriters in the offering a 45-day option period to purchase up to 200,000 200,000 4.185 0.0093 five-year 153,333 5.625 On March 3, 2016, concurrent with the Public Offering, the Company entered into securities purchase agreements (the “Securities Purchase Agreements”) with certain existing shareholders (the “Investors”) with respect to the sale in a private placement (the “Private Offering”) of 555,555 4.50 2,500 4.50 5 555,555 666,666 In connection with the Private Offering, the Company agreed to issue to two non-U.S. finders an aggregate of 44,444 73,333 4.50 5 from the date of issuance, and 38,889 0.0001 The Public Offering and Private Offering triggered the anti-dilution mechanism of the warrants issued in the 2011-2012 Private Placement (as hereinafter defined) by adjusting the current exercise price of the warrants for the investors and placement agent to $ 3.59 415,316 78,662 3.33 48,054 d. In March 2016, the Company issued 20,000 86 e. Stock option compensation: Transactions related to the grant of options to employees, directors and non-employees under the above plans during the three month period ended March 31, 2016 were as follows: Number Weighted Weighted Aggregate $ Years $ Options outstanding at beginning of year 587,678 16.87 5.80 1.26 Options granted - - Options exercised - - Options expired (153) 35.89 Options forfeited (8,385) 6.90 Options outstanding at period end (unaudited) 579,140 16.86 99.31 9.33 Options vested and expected to vest at period end (unaudited) 539,074 17.49 5.54 9.33 Exercisable at period end (unaudited) 253,729 30.25 5.53 9.42 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 the first quarter of 2016 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 March 31, 2016. This amount is impacted by the changes in the fair market value of the Common Stock. As of March 31, 2016, the total amount of unrecognized stock-based compensation expense was approximately $ 965 1.02 Three months ended 2016 2015 Unaudited Cost of revenues $ 9 $ 41 Research and development 26 139 Sales and marketing 31 69 General and administrative 111 519 Total stock-based compensation expenses $ 177 $ 768

FAIR VALUE MEASURMENTS

FAIR VALUE MEASURMENTS	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	NOTE 7:- FAIR VALUE MEASURMENTS ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities; Level 2 - inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. a. On March 30, 2012, the Company consummated the final closing of the 2011 - 2012 Private Placement pursuant to which certain accredited investors purchased an aggregate of 27,345 shares of Common Stock and warrants to purchase 27,345 shares of Common Stock at an exercise price of $135.00 per share for total consideration of $2,461 (the “2011-2012 Private Placement”). The placement agent for the 2011 - 2012 Private Placement and its permitted designees were granted warrants to purchase an aggregate of (i) 5,358 shares of Common Stock at the exercise price of $90.00 per share and (ii) 5,358 shares of Common Stock at the exercise price of $135.00 per share. Subsequent to the issuance of the 2011 - 2012 Private Placement warrants the original exercise price of the warrants for the investors and placement agent was adjusted from $135.00 per share to $3.59 per share and additional 950,152 and 180,557 warrants were issued, respectively. In addition, the exercise price for the placement agent warrants of the 2011 - 2012 Private Placement, with an original exercise price of $90.00 per share was adjusted to $3.33 per share and an additional 119,705 warrants were issued. b. On September 23, 2014, the Company consummated the September 2014 Private Placement. The warrants of the 2011-2012 Private Placement contain non-standard anti-dilution protection provisions and the warrants of the September 2014 Private Placement contain a net settlement cash feature and liquidated damages penalties and therefore the Company accounts for such warrants as a liability according to the provisions of ASC 815-40 “Contracts in entity’s own equity,” and re-measures such liability using the Binomial option-pricing model as described below. In estimating the warrants' fair value, the Company used the following assumptions: March 31, Risk-free interest rate (1) 0.42 % Expected volatility (2) 95.76 % Expected life (in years) (3) 0.57 Expected dividend yield (4) 0 % Fair value per warrant $ 1.52 March 31, Risk-free interest rate (1) 0.05 % Expected volatility (2) 140.82 % Expected life (in years) (3) 0.02 Expected dividend yield (4) 0 % Fair value per warrant $ 0.82-1.03 March 31, Risk-free interest rate (1) 0.80 % Expected volatility (2) 99.65 % Expected life (in years) (3) 2.48 Expected dividend yield (4) 0 % Fair value per warrant $ 1.80 (1) Risk-free interest rate - based on yield rates of non-index linked U.S. Federal Reserve treasury bonds. (2) Expected volatility - was calculated based on actual historical stock price movements of the Company together with companies in the same industry over a term that is equivalent to the expected term of the option. (3) Expected life - the expected life was based on the expiration date of the warrants. (4) Expected dividend yield - was based on the fact that the Company has not paid dividends to its shareholders in the past and does not expect to pay dividends to its shareholders in the future. Fair value of liability Balance at December 31, 2015 $ 2,610 Change in fair value of warrants during the period (747 ) Balance at March 31, 2016 (unaudited) $ 1,863 As of March 31, 2016, there were outstanding warrants to purchase 1,340,368 shares of Common Stock from the above issuances which were recorded as a liability.

FINANCIAL EXPENSES (INCOME), NE

FINANCIAL EXPENSES (INCOME), NET	3 Months Ended
	Mar. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information [Text Block]	NOTE 8:- FINANCIAL EXPENSES (INCOME), NET Three months ended 2016 2015 Unaudited Bank charges $ 4 $ 4 Foreign currency translation adjustments 9 7 Change in fair value of warrants (747) (150) Total financial expenses (income), net $ (734) $ (139)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 9:- SUBSEQUENT EVENTS In May 2016 the Company issued 583 5,227 5,000 5,000

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	March 31, December 31, 2016 2015 Unaudited Raw materials $ 508 $ 469 Finished products 497 132 $ 1,005 $ 601

STOCKHOLDERS' EQUITY (DEFICIE18

STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Transactions related to the grant of options to employees, directors and non-employees under the above plans during the three month period ended March 31, 2016 were as follows: Number Weighted Weighted Aggregate $ Years $ Options outstanding at beginning of year 587,678 16.87 5.80 1.26 Options granted - - Options exercised - - Options expired (153) 35.89 Options forfeited (8,385) 6.90 Options outstanding at period end (unaudited) 579,140 16.86 99.31 9.33 Options vested and expected to vest at period end (unaudited) 539,074 17.49 5.54 9.33 Exercisable at period end (unaudited) 253,729 30.25 5.53 9.42
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	The total compensation cost related to all of the Company's equity-based awards recognized during the three month period ended March 31, 2016 and 2015 was comprised as follows: Three months ended 2016 2015 Unaudited Cost of revenues $ 9 $ 41 Research and development 26 139 Sales and marketing 31 69 General and administrative 111 519 Total stock-based compensation expenses $ 177 $ 768

FAIR VALUE MEASURMENTS (Tables)

FAIR VALUE MEASURMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The changes in Level 3 liabilities associated with the 2011-2012 Private Placement and the September 2014 Private Placement warrants are measured at fair value on a recurring basis. The following tabular presentation reflects the components of the liability associated with such warrants as of March 31, 2016: Fair value of liability Balance at December 31, 2015 $ 2,610 Change in fair value of warrants during the period (747 ) Balance at March 31, 2016 (unaudited) $ 1,863
Investors Warrants [Member] | Private Placement Warrants 2011-2012 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Investors' warrants in 2011-2012 Private Placement: March 31, Risk-free interest rate (1) 0.42 % Expected volatility (2) 95.76 % Expected life (in years) (3) 0.57 Expected dividend yield (4) 0 % Fair value per warrant $ 1.52
Investors Warrants [Member] | September 2014 Private Placement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Investors' warrants in September 2014 Private Placement: March 31, Risk-free interest rate (1) 0.80 % Expected volatility (2) 99.65 % Expected life (in years) (3) 2.48 Expected dividend yield (4) 0 % Fair value per warrant $ 1.80 (1) Risk-free interest rate - based on yield rates of non-index linked U.S. Federal Reserve treasury bonds. (2) Expected volatility - was calculated based on actual historical stock price movements of the Company together with companies in the same industry over a term that is equivalent to the expected term of the option. (3) Expected life - the expected life was based on the expiration date of the warrants. (4) Expected dividend yield - was based on the fact that the Company has not paid dividends to its shareholders in the past and does not expect to pay dividends to its shareholders in the future.
Placement Agent Warrants [Member] | Private Placement Warrants 2011-2012 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Placement agent's warrants 2011-2012 Private Placement: March 31, Risk-free interest rate (1) 0.05 % Expected volatility (2) 140.82 % Expected life (in years) (3) 0.02 Expected dividend yield (4) 0 % Fair value per warrant $ 0.82-1.03

FINANCIAL EXPENSES (INCOME), 20

FINANCIAL EXPENSES (INCOME), NET (Tables)	3 Months Ended
	Mar. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Other Nonoperating Income (Expense) [Table Text Block]	Three months ended 2016 2015 Unaudited Bank charges $ 4 $ 4 Foreign currency translation adjustments 9 7 Change in fair value of warrants (747) (150) Total financial expenses (income), net $ (734) $ (139)

GENERAL (Details Textual)

GENERAL (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Organization And Presentation Of Financial Statements [Line Items]
Operating Income (Loss)	$ 1,923	$ 1,777
Net Cash Provided by (Used in) Operating Activities	$ 2,105	$ 1,525

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 508	$ 469
Finished products	497	132
Inventory, Net	$ 1,005	$ 601

INVENTORIES (Details Textual)

INVENTORIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Inventory [Line Items]
Inventory Write-down	$ 94	$ 193

STOCKHOLDERS' EQUITY (DEFICIE24

STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable at end of year, Weighted average remaining contractual life	5 years 6 months 11 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at beginning of year, Number of options	587,678
Options granted, Number of options	0
Options exercised, Number of options	0
Options expired, Number of options	(153)
Options forfeited, Number of options	(8,385)
Options outstanding at end of year, Number of options	579,140	587,678
Options vested and expected to vest at end of year, Number of options	539,074
Exercisable at end of year, Number of options	253,729
Options outstanding at beginning of year, Weighted average exercise price	$ 16.87
Options granted, Weighted average exercise price	0
Options exercised, Weighted average exercise price	0
Options expired, Weighted average exercise price	35.89
Options forfeited, Weighted average exercise price	6.9
Options outstanding at end of year, Weighted average exercise price	16.86	$ 16.87
Options vested and expected to vest at end of year, Weighted average exercise price	17.49
Exercisable at end of year, Weighted average exercise price	$ 30.25
Options outstanding at, Weighted average remaining contractual life	99 years 3 months 22 days	5 years 9 months 18 days
Options vested and expected to vest at end of year, Weighted average remaining contractual life	5 years 6 months 14 days
Options outstanding, Aggregate Intrinsic value	$ 9,330	$ 1,260
Options vested and expected to vest at end of year, Aggregate Intrinsic value	9,330
Exercisable at end of year, Aggregate Intrinsic value	$ 9,420

STOCKHOLDERS' EQUITY (DEFICIE25

STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expenses	$ 177	$ 768
Cost of revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expenses	9	41
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expenses	26	139
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expenses	31	69
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expenses	$ 111	$ 519

STOCKHOLDERS' EQUITY (DEFICIE26

STOCKHOLDERS' EQUITY (DEFICIENCY) AND CONVERTIBLE PREFERRED SHARES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		12 Months Ended
		Mar. 31, 2016	Feb. 18, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Apr. 30, 2015	Mar. 30, 2012
Class of Stock [Line Items]
Stock Issued During Period, Value, New Issues				$ 5,038
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 965		$ 965
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year 7 days
Stock Issued During Period, Value, Conversion of Convertible Securities				$ 2,277	$ 102	$ 400
General and Administrative Expense				905	$ 412
Stock Issued During Period, Value, Share-based Compensation, Gross				75		$ 304
Deemed Dividend Related To Change In Conversion Term Of Series A Preferred Stock, Value				0
Preferred Stock Conversion Agreement [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, Conversion of Convertible Securities			$ 2,277
Percentage Of Increase In Original Common Stock Shares			25.00%
Deemed Dividend Related To Change In Conversion Term Of Series A Preferred Stock, Value			$ 455
Series A Preferred Stock [Member] | Preferred Stock Conversion Agreement [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities			1,984
Service Provider Agreement [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance							22,224
General and Administrative Expense				$ 37
Two Non-US Finder [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		73,333		73,333
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.50		$ 4.50
Exercisable Term		5 years
Two Non-US Finder [Member] | Non-Plan Stock Option [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares		38,889
Shares Issued, Price Per Share		$ 0.0001		$ 0.0001
Common Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, New Issues				$ 1
Stock Issued During Period, Shares, New Issues				1,333,333
Stock Issued During Period, Shares, Conversion of Convertible Securities				498,935		84,812
Stock Issued During Period, Value, Conversion of Convertible Securities	[1]			$ 0		$ 0
Stock Issued During Period, Shares, Share-based Compensation, Gross				9,849		55,474
Stock Issued During Period, Value, Share-based Compensation, Gross	[1]			$ 0		$ 0
Deemed Dividend Related To Change In Conversion Term Of Series A Preferred Stock, Value				$ 0
Common Stock [Member] | Preferred Stock Conversion Agreement [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities			623,672
Common Stock [Member] | Service Provider Agreement [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance		5,556		5,556
U.S. Members of the Board of Director [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Gross				9,849
Stock Issued During Period, Value, Share-based Compensation, Gross				$ 75
Officer [Member] | Equity Incentive Plan 2012 [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		20,000
Share-based Compensation, Total		$ 86
Restricted Stock [Member] | Service Provider Agreement [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance							5,556
Restricted Stock [Member] | Two Non-US Finder [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		44,444
Private Placement [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 90
Private Placement [Member] | Investor [Member]
Class of Stock [Line Items]
Units Issued during Period		555,555
Issuance of Units Purchase Price Per Unit		$ 4.50
Proceeds From Issue of Units		$ 2,500
Private Placement [Member] | Investor [Member] | Series A Warrants 2016 [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		555,555
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		666,666		666,666
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.50		$ 4.50
Exercisable Term		5 years
Private Placement [Member] | Common Stock [Member] | Investor [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 135
Second Private Placement 2011-2012 [Member] | Placement Agent Warrants [Member]
Class of Stock [Line Items]
Stock Issued During Period Warrants Exercised		48,054		48,054
2011-2012 Private Placement | Placement Agent Warrants [Member]
Class of Stock [Line Items]
Warrants Exercise Price Per Share Adjusted		$ 3.59		$ 3.59
Stock Issued During Period Warrants Exercised		415,316		415,316
2011-2012 Private Placement | Placement Agent Warrants One [Member]
Class of Stock [Line Items]
Warrants Exercise Price Per Share Adjusted		$ 3.33		$ 3.33
Stock Issued During Period Warrants Exercised		78,662		78,662
Public Offering [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		1,333,333
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		1,333,333		1,333,333
Proceeds from Warrant Exercises		$ 5,038
Exercisable Term		5 years
Shares Issued, Price Per Share		$ 4.50		$ 4.50
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right		1		1
Public Offering [Member] | March 2016 Warrants [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.50		$ 4.50
Shares Issued, Price Per Share		$ 0.01		$ 0.01
Public Offering [Member] | Chief Financial Officer [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, New Issues		$ 500
Stock Issued During Period, Shares, New Issues		111,112
Over-Allotment Option [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		200,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		200,000		200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.0093		$ 0.0093
Exercisable Term		5 years
Shares Issued, Price Per Share		$ 4.185		$ 4.185
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right		153,333		153,333
Over-Allotment Option [Member] | Replacememnt Agreement [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 5.625		$ 5.625
[1]	Represents an amount lower than $1.

FAIR VALUE MEASURMENTS (Details

FAIR VALUE MEASURMENTS (Details)	3 Months Ended
	Mar. 31, 2016$ / shares
Investors Warrants [Member] | Private Placement Warrants 2011-2012 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.42%	[1]
Expected volatility	95.76%	[2]
Expected life (in years)	6 months 25 days	[3]
Expected dividend yield	0.00%	[4]
Fair value per warrant	$ 1.52
Investors Warrants [Member] | September 2014 Private Placement [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.80%	[1]
Expected volatility	99.65%	[2]
Expected life (in years)	2 years 5 months 23 days	[3]
Expected dividend yield	0.00%	[4]
Fair value per warrant	$ 1.8
Placement Agent Warrants [Member] | Private Placement Warrants 2011-2012 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.05%	[1]
Expected volatility	140.82%	[2]
Expected life (in years)	7 days	[3]
Expected dividend yield	0.00%	[4]
Placement Agent Warrants [Member] | Private Placement Warrants 2011-2012 [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value per warrant	$ 1.03
Placement Agent Warrants [Member] | Private Placement Warrants 2011-2012 [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value per warrant	$ 0.82
[1]	Risk-free interest rate - based on yield rates of non-index linked U.S. Federal Reserve treasury bonds.
[2]	Expected volatility - was calculated based on actual historical stock price movements of the Company together with companies in the same industry over a term that is equivalent to the expected term of the option.
[3]	Expected life - the expected life was based on the expiration date of the warrants.
[4]	Expected dividend yield - was based on the fact that the Company has not paid dividends to its shareholders in the past and does not expect to pay dividends to its shareholders in the future.

FAIR VALUE MEASURMENTS (Detai28

FAIR VALUE MEASURMENTS (Details 1) - Private Placement [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Balance at December 31, 2015	$ 2,610
Change in fair value of warrants during the period	(747)
Balance at March 31, 2016 (unaudited)	$ 1,863

FAIR VALUE MEASURMENTS (Detai29

FAIR VALUE MEASURMENTS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Mar. 30, 2012	Mar. 31, 2016
Private Placement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 90
2011-2012 Placement Agent And Investor [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise Price Of Warrants Adjusted	3.33
2011-2012 Placement Agent And Investor [Member] | Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise Price Of Warrants Adjusted	$ 3.59
2011-2012 Investor [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stock To Be Issued Upon Conversion Of Warrants Additional Issue	950,152
2011-2012 Placement agent $5.00 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stock To Be Issued Upon Conversion Of Warrants Additional Issue	119,705
2011-2012 Placement agent $7.50 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stock To Be Issued Upon Conversion Of Warrants Additional Issue	180,557
Placement Agents [Member] | Private Placement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise Price Of Warrants 1	$ 5,358
Warrants Issued	90
Placement Agents [Member] | 2011-2012 Placement Agent [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 135
Common Stock [Member] | Placement Agents [Member] | Private Placement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stock To Be Issued Upon Conversion Of Warrants1	5,358
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 135
Common Stock [Member] | Investor [Member] | Private Placement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stock To Be Issued Upon Conversion Of Warrants	27,345
Proceeds from Issuance of Private Placement (in dollars)	$ 2,461
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 135
Warrants Issued	27,345
Warrants Measured At Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding warrants		1,340,368

FINANCIAL EXPENSES (INCOME), 30

FINANCIAL EXPENSES (INCOME), NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Selected Statements Of Operations Data [Line Items]
Bank charges	$ 4	$ 4
Foreign currency translation adjustments	9	7
Change in fair value of warrants	(747)	(150)
Total financial expenses (income), net	$ (734)	$ (139)

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member]	1 Months Ended
	May. 31, 2016shares
Warrant [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	5,000
Number of Warrants Exercised	5,000
Private Placement [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	583
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	5,227