Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 09, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | DarioHealth Corp. | |
Entity Central Index Key | 1,533,998 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | DRIO | |
Entity Common Stock, Shares Outstanding | 25,936,165 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 11,427 | $ 3,718 | |
Short-term bank deposits | 184 | 258 | |
Trade Receivables | 374 | 282 | |
Inventories | 1,020 | 1,184 | |
Other accounts receivable and prepaid expenses | 523 | 604 | |
Total current assets | 13,528 | 6,046 | |
LEASE DEPOSITS | 47 | 42 | |
PROPERTY AND EQUIPMENT, NET | 758 | 869 | |
Total assets | 14,333 | 6,957 | |
CURRENT LIABILITIES: | |||
Trade payables | 2,203 | 1,852 | |
Deferred revenues | 385 | 0 | |
Other accounts payable and accrued expenses | 1,334 | 1,163 | |
Total current liabilities | 3,922 | 3,015 | |
LIABILITY RELATED TO WARRANTS | 0 | 1 | |
STOCKHOLDERS' EQUITY | |||
Common Stock of $0.0001 par value - Authorized: 160,000,000 shares at September 30, 2018 (unaudited) and December 31, 2017; Issued and Outstanding: 25,691,724 and 14,074,238 shares at September 30, 2018 (unaudited) and December 31, 2017, respectively | 7 | 7 | |
Preferred Stock of $0.0001 par value - Authorized: 5,000,000 shares at September 30, 2018 (unaudited) and December 31, 2017; Issued and Outstanding: 1,890,257 and 0 shares at September 30, 2018 (unaudited) and December 31, 2017, respectively | [1] | 0 | |
Additional paid-in capital | 94,675 | 74,892 | |
Accumulated deficit | (84,271) | (70,958) | |
Total stockholders' equity | 10,411 | 3,941 | |
Total liabilities and stockholders' equity | $ 14,333 | $ 6,957 | |
[1] | Represents an amount lower than $1. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 25,691,724 | 14,074,238 |
Common stock, shares, outstanding | 25,691,724 | 14,074,238 |
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 | 1,890,257 | 0 |
Preferred stock, shares outstanding | 1,890,257 | 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenues | $ 1,879 | $ 1,375 | $ 5,694 | $ 3,592 | |
Cost of revenues | 1,411 | 1,099 | 4,152 | 2,850 | |
Gross profit | 468 | 276 | 1,542 | 742 | |
Operating expenses: | |||||
Research and development | 997 | 797 | 2,749 | 2,450 | |
Sales and marketing | 2,693 | 1,677 | 6,820 | 5,707 | |
General and administrative | 709 | 781 | 4,506 | 3,887 | |
Total operating expenses | 4,399 | 3,255 | 14,075 | 12,044 | |
Operating loss | (3,931) | (2,979) | (12,533) | (11,302) | |
Financial income (expenses), net: | |||||
Revaluation of warrants | [1] | 1 | 1 | (1,169) | |
Other financial (expense) income, net | (132) | 5 | (288) | (7) | |
Total financial income (expenses), net | (132) | 6 | (287) | (1,176) | |
Net loss | (4,063) | (2,973) | (12,820) | (12,478) | |
Deemed dividend related to warrant exchange agreement | 0 | 0 | 493 | 0 | |
Net loss attributable to holders of Common Stock | $ (4,063) | $ (2,973) | $ (13,313) | $ (12,478) | |
Net loss per share | |||||
Basic and diluted loss per share | $ (0.17) | $ (0.30) | $ (0.67) | $ (1.40) | |
Weighted average number of Common Stock used in computing basic and diluted net loss per share | 23,533,328 | 9,950,443 | 19,733,291 | 8,931,460 | |
[1] | Represents an amount lower than $1. |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | ||||
Balance at Dec. 31, 2016 | $ (6,541) | $ 6 | $ 0 | $ 48,413 | $ (54,960) | ||||
Balance (in shares) at Dec. 31, 2016 | 5,713,383 | 0 | |||||||
Issuance of Common Stock and warrants, net of issuance cost | 9,470 | $ 1 | $ 0 | 9,469 | 0 | ||||
Issuance of Common Stock and warrants, net of issuance cost (in shares) | 3,754,770 | 0 | |||||||
Payment for executives and directors under Stock for Salary Program | 707 | [1] | $ 0 | 707 | 0 | ||||
Payment for executives and directors under Stock for Salary Program (in shares) | 271,880 | 0 | |||||||
Issuance of Common Stock to employees | 1,514 | [1] | $ 0 | 1,514 | 0 | ||||
Issuance of Common Stock to employees (in shares) | 474,880 | 0 | |||||||
Issuance of Common Stock to consultants and service provider | 874 | [1] | $ 0 | 874 | 0 | ||||
Issuance of Common Stock to consultants and service provider (in shares) | 281,681 | 0 | |||||||
Reclassification of warrants from liability to equity on March 8, 2017 | 8,655 | $ 0 | $ 0 | 8,655 | 0 | ||||
Exercise of options | [1] | [1] | $ 0 | [1] | 0 | ||||
Exercise of options (in shares) | 91,855 | 0 | |||||||
Issuance of Preferred Stock and warrants, net of issuance cost | 3,711 | $ 0 | [1] | 3,711 | 0 | ||||
Issuance of Preferred Stock and warrants, net of issuance cost (in shares) | 0 | 2,307,654 | |||||||
Issuance of Common stock in November 2017 warrant exchange agreement | [1] | [1] | $ 0 | 0 | 0 | ||||
Issuance of Common stock in November 2017 warrant exchange agreement (in shares) | 1,039,676 | 0 | |||||||
Conversion of Preferred Stock to Common Stock | 0 | [1] | [1] | 0 | 0 | ||||
Conversion of Preferred Stock to Common Stock (in shares) | 2,307,654 | (2,307,654) | |||||||
Deemed dividend related to Stock dividend | 0 | [1] | $ 0 | 255 | (255) | ||||
Deemed dividend related to Stock dividend (in shares) | 138,459 | 0 | |||||||
Stock-based compensation | 1,294 | $ 0 | $ 0 | 1,294 | 0 | ||||
Net loss | (15,743) | 0 | 0 | 0 | (15,743) | ||||
Balance at Dec. 31, 2017 | 3,941 | $ 7 | $ 0 | 74,892 | (70,958) | ||||
Balance (in shares) at Dec. 31, 2017 | 14,074,238 | 0 | |||||||
Issuance of Common Stock and warrants, net of issuance cost | 6,332 | [1] | $ 0 | 6,332 | 0 | ||||
Issuance of Common Stock and warrants, net of issuance cost (in shares) | 6,529,069 | 0 | |||||||
Payment for executives and directors under Stock for Salary Program | 809 | [1] | $ 0 | 809 | 0 | ||||
Payment for executives and directors under Stock for Salary Program (in shares) | 521,254 | 0 | |||||||
Issuance of Common Stock to consultants and service provider | 431 | [1] | $ 0 | 431 | 0 | ||||
Issuance of Common Stock to consultants and service provider (in shares) | 309,411 | 0 | |||||||
Issuance of Preferred Stock and warrants, net of issuance cost | 9,269 | $ 0 | [1] | 9,269 | 0 | ||||
Issuance of Preferred Stock and warrants, net of issuance cost (in shares) | 0 | 3,124,337 | |||||||
Deemed dividend related to May 2018 warrant exchange agreement | 0 | $ 0 | $ 0 | 493 | (493) | ||||
Deemed dividend related to May 2018 warrant exchange agreement (in shares) | 636,752 | 0 | |||||||
Conversion of Preferred Stock to Common Stock | 0 | [1] | 0 | 0 | |||||
Conversion of Preferred Stock to Common Stock (in shares) | 2,468,160 | (1,234,080) | |||||||
Issuance of Common Stock to directors and employees | 1,786 | [1] | $ 0 | 1,786 | 0 | ||||
Issuance of Common Stock to directors and employees (in shares) | 1,152,840 | 0 | |||||||
Stock-based compensation | 663 | $ 0 | $ 0 | 663 | 0 | ||||
Net loss | (12,820) | 0 | 0 | 0 | (12,820) | ||||
Balance at Sep. 30, 2018 | $ 10,411 | $ 7 | [1] | $ 94,675 | $ (84,271) | ||||
Balance (in shares) at Sep. 30, 2018 | 25,691,724 | 1,890,257 | |||||||
[1] | Represents an amount lower than $1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Cash flows from operating activities: | |||
Net loss | $ (12,820) | $ (12,478) | |
Adjustments required to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation and Common Stock to service providers | 3,284 | 3,062 | |
Depreciation | 160 | 155 | |
Increase in trade receivables | (92) | (193) | |
Decrease (increase) in accounts receivables and prepaid expenses | 81 | (264) | |
Decrease (increase) in inventories | 164 | (36) | |
Increase in trade payables | 351 | 171 | |
Increase in other accounts payable and accrued expenses | 457 | 191 | |
Increase in deferred revenues | 385 | 0 | |
Change in fair value of warrants to purchase shares of Common Stock | (1) | 1,169 | |
Net cash used in operating activities | (8,031) | (8,223) | |
Cash flows from investing activities: | |||
Maturity (investment) of (in) short-term bank deposits | 74 | (16) | |
Maturity (investment) in lease deposits | (5) | 3 | |
Purchase of property and equipment | (49) | (64) | |
Net cash provided by (used in) investing activities | 20 | (77) | |
Cash flows from financing activities: | |||
Proceeds from issuance of Common Stock and warrants, net of issuance cost | 15,720 | 13,469 | |
Proceeds from exercise of options and warrants | 0 | 0 | [1] |
Net cash provided by financing activities | 15,720 | 13,469 | |
Increase in cash and cash equivalents | 7,709 | 5,169 | |
Cash and cash equivalents at the beginning of the period | 3,718 | 1,093 | |
Cash and cash equivalents at the end of the period | 11,427 | 6,262 | |
Non-cash investing and financing activities: | |||
Reclassification of warrants from liability to equity | 0 | 8,655 | |
Payment for directors, employees and service providers under Stock for Cash Program | $ 286 | $ 183 | |
[1] | Represents an amount lower than $1. |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1:- GENERAL a. DarioHealth Corp. (formerly 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 and was dissolved at the end of 2017. c. During the nine months ended September 30, 2018, the Company incurred operating losses and negative cash flows from operating activities amounting to $12,533 and $8,031 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. 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 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 | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES a. 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, 2017 are applied consistently in these unaudited interim consolidated financial statements. b. Recently issued accounting pronouncements, not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU provides a five-step approach to account for revenue arising from contracts with customers. This revenue standard will be effective for the Company starting in the first quarter of 2019. The new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment. The Company is in the process of assessing the impact of this ASU on the Company’s consolidated financial position, results of operations and cash flows. On February 2016, the FASB issued ASU 2016-02, “Leases,” which creates Accounting Standards Codification (“ASC”) 842, “Leases”, and supersedes ASC 840, “Leases.” ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new guidance will be effective for annual and interim reporting periods beginning on or after December 15, 2018. The Company is in the process of assessing the impact that the adoption of this guidance will have on its consolidated financial statements. 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. For public companies that file with the Securities and Exchange Commission, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606, “Revenue from Contracts with Customers.” The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. |
UNAUDITED INTERIM FINANCIAL STA
UNAUDITED INTERIM FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018, 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 September 30, 2018, and the Company's consolidated results of operations and the Company's consolidated cash flows for the nine months ended September 30, 2018. Results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 4: - INVENTORIES September 30, December 31, 2018 2017 Unaudited Raw materials $ 406 $ 323 Finished products 614 861 $ 1,020 $ 1,184 During the nine months’ period ended September 30, 2018 and the year ended December 31, 2017, total inventory write-off expenses amounted to $ 33 and $190, respectively. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
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) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6:- STOCKHOLDERS' EQUITY (DEFICIENCY) a. In January, April, June and July 2018, an aggregate of 521,254 shares of Common Stock were issued to certain members of the Board of Directors, executive officers and employees of the Company as consideration for a reduction in or waiver of cash salary, bonuses or fees owed to such individuals, totaling $809. The shares were issued under the Company’s Amended and Restated 2012 Equity Incentive Plan (the "2012 Plan"). b. In January, 2018, 8,859 shares of Common Stock were issued in lieu of $15 to a service provider instead of cash owed for services provided during the fourth quarter of 2017. The shares were issued under the 2012 Plan. c. On February 28, 2018 and March 6, 2018, the Company closed two concurrent private placements offerings consisting of 2,262,269 shares of the Company's Common Stock at $1.40 per share, 1,234,080 shares of the Company's newly designated 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 $2.80 per share, and warrants to purchase up to 3,784,351 shares of Common Stock. The shares of Series C Preferred Stock are convertible into an aggregate of 2,468,160 shares of Common Stock based on a conversion price of $1.40 per share. Such conversion price is not subject to any future price-based anti-dilution adjustments except for standard anti-dilution protection. The shares of Series C Preferred Stock are not redeemable nor contingently redeemable. The holders of the Series C Preferred Stock will not be entitled to convert such preferred stock into shares of the Company's Common Stock until the Company obtains stockholder approval for such issuance and upon obtaining such stockholder approval shall automatically convert into shares of Common Stock. The holders of the Series C Preferred Stock do not possess any voting rights but the Series C Preferred Stock does 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 are 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 a shareholders meeting 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 32,250 shares of Common Stock to certain finders. The shares were issued under the 2012 Plan. d. In April and July 2018, the Company's Compensation Committee of the Board of Directors approved the grants of an aggregate of 184,969 shares of Common Stock in lieu of $296 owed to service providers and the grant of an option to purchase 164,567 shares of Common Stock in lieu of $263 owed to a service provider of the Company. 75,640 shares and the options were issued under the 2012 Plan. e. 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 1,020,357 shares of Common Stock for cancellation and received, as consideration for such cancellation, an aggregate of 636,752 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. f. In June and July 2018, the Company’s Compensation Committee of the Board of Directors approved the grant of an aggregate of 1,152,840 shares to directors, officers, employees and consultants of the Company, and the grant of 244,000 and 21,000 options to employees and consultants of the Company, respectively, at an exercise price of $1.729 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 terms. All shares and options were issued under the 2012 Plan. g. On September 13, 2018 and September 26, 2018, the Company closed a private placements offerings consisting of 4,266,800 shares of the Company's Common Stock at $0.90 per share, 1,890,257 shares of the Company's newly designated Series D Convertible Preferred Stock for aggregate gross proceeds of approximately $10,645 ($9,686 net of issuance expenses). The shares of Series D Preferred Stock are convertible into an aggregate of 7,561,028 shares of Common Stock based on a conversion price of $0.90 per share. Such conversion price is not subject to any future price-based anti-dilution adjustments except for standard anti-dilution protection. The shares of Series D Preferred Stock are not redeemable nor contingently redeemable. The holders of the Series D Preferred Stock will not be entitled to convert such preferred stock into shares of the Company's Common Stock until the Company obtains stockholder approval for such issuance and upon obtaining such stockholder approval shall automatically convert into shares of Common Stock. The holders of the Series D Preferred Stock do not possess any voting rights, but the Series D Preferred Stock does 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 are 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. In conjunction with these offerings the Company issued 83,333 shares of Common Stock to certain finders. h. Stock option compensation: Transactions related to the grant of options to employees, directors and non-employees under the above plans during the nine-month period ended September 30, 2018 were as follows: Number of options Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic value $ Years $ Options outstanding at beginning of year 1,378,160 7.39 4.75 437 Options granted 429,567 1.07 Options exercised - - Options expired (47,065 ) 6.77 Options forfeited (63,339 ) 3.14 Options outstanding at period end (unaudited) 1,697,323 5.97 4.41 470 Options vested and expected to vest at period end (unaudited) 1,548,658 6.14 4.38 470 Exercisable at period end (unaudited) 1,174,608 7.55 4.15 363 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 third quarter of 2018 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 September 30, 2018. This amount is impacted by the changes in the fair market value of the Common Stock. As of September 30, 2018, the total amount of unrecognized stock-based compensation expense was approximately $726 which will be recognized over a weighted average period of 1.04 years. The total compensation cost related to all of the Company's equity-based awards recognized during the nine-month period ended September 30, 2018 and 2017 was comprised as follows: Nine months ended September 30, 2018 2017 Unaudited Cost of revenues $ 99 $ 102 Research and development 347 206 Sales and marketing 497 515 General and administrative 2,341 2,239 Total stock-based compensation expenses $ 3,284 $ 3,062 |
FINANCIAL EXPENSES, NET
FINANCIAL EXPENSES, NET | 9 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 7:- FINANCIAL EXPENSES, NET Nine months ended September 30, 2018 2017 Unaudited Bank and credit card charges and commissions $ 239 $ 9 Foreign currency translation adjustments 49 (2 ) Change in fair value of warrants (1 ) 1,169 Total financial expenses, net $ 287 $ 1,176 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 8:- SUBSEQUENT EVENTS In October 2018, 244,441 shares of Common Stock were issued to certain members of the Board of Directors, executive officers and employees of the Company as consideration for a reduction in or waiver of cash salary and fees owed to such individuals. The shares were issued under the 2012 Plan. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | b. Recently issued accounting pronouncements, not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU provides a five-step approach to account for revenue arising from contracts with customers. This revenue standard will be effective for the Company starting in the first quarter of 2019. The new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment. The Company is in the process of assessing the impact of this ASU on the Company’s consolidated financial position, results of operations and cash flows. On February 2016, the FASB issued ASU 2016-02, “Leases,” which creates Accounting Standards Codification (“ASC”) 842, “Leases”, and supersedes ASC 840, “Leases.” ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new guidance will be effective for annual and interim reporting periods beginning on or after December 15, 2018. The Company is in the process of assessing the impact that the adoption of this guidance will have on its consolidated financial statements. 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. For public companies that file with the Securities and Exchange Commission, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606, “Revenue from Contracts with Customers.” The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2018 2017 Unaudited Raw materials $ 406 $ 323 Finished products 614 861 $ 1,020 $ 1,184 |
STOCKHOLDERS' EQUITY (DEFICIE_2
STOCKHOLDERS' EQUITY (DEFICIENCY) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
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 nine-month period ended September 30, 2018 were as follows: Number of options Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic value $ Years $ Options outstanding at beginning of year 1,378,160 7.39 4.75 437 Options granted 429,567 1.07 Options exercised - - Options expired (47,065 ) 6.77 Options forfeited (63,339 ) 3.14 Options outstanding at period end (unaudited) 1,697,323 5.97 4.41 470 Options vested and expected to vest at period end (unaudited) 1,548,658 6.14 4.38 470 Exercisable at period end (unaudited) 1,174,608 7.55 4.15 363 |
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 nine-month period ended September 30, 2018 and 2017 was comprised as follows: Nine months ended September 30, 2018 2017 Unaudited Cost of revenues $ 99 $ 102 Research and development 347 206 Sales and marketing 497 515 General and administrative 2,341 2,239 Total stock-based compensation expenses $ 3,284 $ 3,062 |
FINANCIAL EXPENSES, NET (Tables
FINANCIAL EXPENSES, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Nine months ended September 30, 2018 2017 Unaudited Bank and credit card charges and commissions $ 239 $ 9 Foreign currency translation adjustments 49 (2 ) Change in fair value of warrants (1 ) 1,169 Total financial expenses, net $ 287 $ 1,176 |
GENERAL (Details Textual)
GENERAL (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization And Presentation Of Financial Statements [Line Items] | ||||
Operating Income (Loss) | $ (3,931) | $ (2,979) | $ (12,533) | $ (11,302) |
Net Cash Provided by (Used in) Operating Activities | $ (8,031) | $ (8,223) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 406 | $ 323 |
Finished products | 614 | 861 |
Inventory, Net | $ 1,020 | $ 1,184 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | ||
Inventory Write-down | $ 33 | $ 190 |
STOCKHOLDERS' EQUITY (DEFICIE_3
STOCKHOLDERS' EQUITY (DEFICIENCY) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding at beginning of year, Number of options | 1,378,160 | |
Options granted, Number of options | 429,567 | |
Options exercised, Number of options | 0 | |
Options expired, Number of options | (47,065) | |
Options forfeited, Number of options | (63,339) | |
Options outstanding at end of year, Number of options | 1,697,323 | 1,378,160 |
Options vested and expected to vest at end of year, Number of options | 1,548,658 | |
Exercisable at end of year, Number of options | 1,174,608 | |
Options outstanding at beginning of year, Weighted average exercise price | $ 7.39 | |
Options granted, Weighted average exercise price | 1.07 | |
Options exercised, Weighted average exercise price | 0 | |
Options expired, Weighted average exercise price | 6.77 | |
Options forfeited, Weighted average exercise price | 3.14 | |
Options outstanding at end of year, Weighted average exercise price | 5.97 | $ 7.39 |
Options vested and expected to vest at end of year, Weighted average exercise price | 6.14 | |
Exercisable at end of year, Weighted average exercise price | $ 7.55 | |
Options outstanding at, Weighted average remaining contractual life | 4 years 4 months 28 days | 4 years 9 months |
Options vested and expected to vest at end of year, Weighted average remaining contractual life | 4 years 4 months 17 days | |
Exercisable at end of year, Weighted average remaining contractual life | 4 years 1 month 24 days | |
Options outstanding, Aggregate Intrinsic value | $ 470 | $ 437 |
Options vested and expected to vest at end of year, Aggregate Intrinsic value | 470 | |
Exercisable at end of year, Aggregate Intrinsic value | $ 363 |
STOCKHOLDERS' EQUITY (DEFICIE_4
STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | $ 3,284 | $ 3,062 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 99 | 102 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 347 | 206 |
Sales, Marketing and pre-production costs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | 497 | 515 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expenses | $ 2,341 | $ 2,239 |
STOCKHOLDERS' EQUITY (DEFICIE_5
STOCKHOLDERS' EQUITY (DEFICIENCY) (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Mar. 06, 2018 | Sep. 26, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||||||||||||||
Issuance of Common Stock in April 2017 Public offering, net of issuance cost | $ 6,332 | $ 9,470 | ||||||||||||
Stock Issued During Period, Shares, New Issues | 2,262,269 | 7,561,028 | 164,567 | 184,969 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 726 | $ 726 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 14 days | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,020,357 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.90 | $ 296 | ||||||||||||
Proceeds from Issuance of Private Placement | $ 6,034 | |||||||||||||
Due to Related Parties | $ 809 | $ 809 | ||||||||||||
Class Of Warrant Or Right Aggregate With Shares Consideration | 636,752 | |||||||||||||
Deemed Dividend Related To Warrant Exchange Agreement | $ 493 | $ 0 | $ 0 | $ 493 | $ 0 | |||||||||
Equity Incentive Plan 2012 [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 8,859 | |||||||||||||
Due to Related Parties | $ 15 | |||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of Common Stock in April 2017 Public offering, net of issuance cost | $ 6,623 | |||||||||||||
Stock Issued During Period, Shares, New Issues | 1,234,080 | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,468,160 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of Common Stock in April 2017 Public offering, net of issuance cost | [1] | $ 1 | ||||||||||||
Stock Issued During Period, Shares, New Issues | 3,784,351 | 6,529,069 | 3,754,770 | |||||||||||
Warrants To Purchase Common Stock Exercise Price Per Share | $ 2.80 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 1.40 | |||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 521,254 | 271,880 | ||||||||||||
Shares Issued, Price Per Share | $ 1.40 | |||||||||||||
Board of Director and Officers [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 521,254 | |||||||||||||
Board of Director and Officers [Member] | Common Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 75,640 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 263 | $ 263 | ||||||||||||
Service Provider [Member] | Equity Incentive Plan 2012 [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 83,333 | |||||||||||||
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 | 32,250 | |||||||||||||
Employees Directors And Consultants [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 1,152,840 | |||||||||||||
Employees [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 244,000 | |||||||||||||
Consultants [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 21,000 | |||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.729 | |||||||||||||
Private Placement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,266,800 | |||||||||||||
Private Placement [Member] | Series C Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Shares Issued, Price Per Share | $ 0.90 | |||||||||||||
Private Placement [Member] | Series D Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,890,257 | |||||||||||||
Proceeds from Issuance of Private Placement | $ 9,686 | |||||||||||||
Shares Issued, Price Per Share | $ 3.60 | |||||||||||||
Gross Proceeds from Private Placement | $ 10,645 | |||||||||||||
Private Placement [Member] | Warrant [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 9,462,272 | |||||||||||||
[1] | Represents an amount lower than $1. |
FINANCIAL EXPENSES, NET (Detail
FINANCIAL EXPENSES, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Selected Statements Of Operations Data [Line Items] | |||||
Bank and credit card charges and commissions | $ 239 | $ 9 | |||
Foreign currency translation adjustments | 49 | (2) | |||
Change in fair value of warrants | [1] | $ (1) | (1) | 1,169 | |
Total financial income (expenses), net | $ 132 | $ (6) | $ 287 | $ 1,176 | |
[1] | Represents an amount lower than $1. |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | 1 Months Ended |
Oct. 31, 2018shares | |
Board of Director and Officer [Member] | Amended and Restated 2012 Equity Incentive Plan [Member] | |
Subsequent Event [Line Items] | |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 244,441 |