Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-188920 | |
Entity Registrant Name | SCOUTCAM INC. | |
Entity Central Index Key | 0001577445 | |
Entity Tax Identification Number | 47-4257143 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Suite 7A | |
Entity Address, Address Line Two | Industrial Park | |
Entity Address, Address Line Three | P.O. Box 3030 | |
Entity Address, City or Town | Omer | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 8496500 | |
City Area Code | +972 | |
Local Phone Number | 73 370-4691 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,121,737 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,586 | $ 8,581 |
Short terms deposits | 12,579 | 11,013 |
Accounts receivable | 15 | 8 |
Inventory | 652 | 167 |
Other current assets | 272 | 443 |
Total current assets | 16,104 | 20,212 |
NON-CURRENT ASSETS: | ||
Contract fulfillment assets | 1,555 | 1,675 |
Property and equipment, net | 708 | 781 |
Operating lease right-of-use assets | 325 | 482 |
Severance pay asset | 325 | 396 |
Total non current assets | 2,913 | 3,334 |
TOTAL ASSETS | 19,017 | 23,546 |
CURRENT LIABILITIES: | ||
Accounts payables | 366 | 103 |
Contract liabilities - short term | 1,429 | 346 |
Operating lease liabilities - short term | 192 | 256 |
Accrued compensation expenses | 352 | 355 |
Related parties | 67 | 39 |
Other accrued expenses | 150 | 210 |
Total current liabilities | 2,556 | 1,309 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities - long term | 2,324 | 2,074 |
Operating lease liabilities - long term | 85 | 203 |
Liability for severance pay | 324 | 344 |
Total non current liabilities | 2,733 | 2,621 |
TOTAL LIABILITIES | 5,289 | 3,930 |
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of September 30, 2022 and December 31, 2021, 7,121,737 shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 7 | 7 |
Additional paid-in capital | 36,819 | 34,903 |
Accumulated deficit | (23,098) | (15,294) |
TOTAL SHAREHOLDERS’ EQUITY | 13,728 | 19,616 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 19,017 | $ 23,546 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 7,121,737 | 7,121,737 |
Common stock, shares outstanding | 7,121,737 | 7,121,737 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 134 | $ 23 | $ 506 | $ 321 |
Cost of revenues | 430 | 211 | 1,279 | 821 |
Gross Loss | (296) | (188) | (773) | (500) |
Research and development expenses | 1,048 | 550 | 3,023 | 1,193 |
Sales and marketing expenses | 171 | 225 | 617 | 629 |
General and administrative expenses | 810 | 1,603 | 3,262 | 3,931 |
Operating loss | (2,325) | (2,566) | (7,675) | (6,253) |
Other income | 8 | 3 | 23 | 3 |
Financing income (expenses), net | 73 | 1 | (152) | (6) |
Net Loss | $ (2,244) | $ (2,562) | $ (7,804) | $ (6,256) |
Net loss per ordinary share (basic and diluted, USD) | $ (0.32) | $ (0.37) | $ (1.10) | $ (1.05) |
Weighted average ordinary shares (basic and diluted, in thousands) | 7,122 | 6,930 | 7,122 | 5,968 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Changes in ShareHolders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 4 | $ 10,267 | $ (6,307) | $ 3,964 |
Beginning balance, shares at Dec. 31, 2020 | 4,084 | |||
Stock based compensation | 1,317 | 1,317 | ||
Net loss | (6,256) | (6,256) | ||
Issuance of shares and warrants | $ 2 | 19,116 | 19,118 | |
Issuance of shares and warrants, shares | 2,469 | |||
Exercise of warrants | $ 1 | 2,458 | 2,459 | |
Exercise of warrants, shares | 375 | |||
Round up shares due to reverse stock split | ||||
Round up shares due to reverse stock split, shares | 1 | |||
Ending balance, value at Sep. 30, 2021 | $ 7 | 33,158 | (12,563) | 20,602 |
Ending balance, shares at Sep. 30, 2021 | 6,929 | |||
Beginning balance, value at Jun. 30, 2021 | $ 7 | 32,476 | (10,001) | 22,482 |
Beginning balance, shares at Jun. 30, 2021 | 6,929 | |||
Stock based compensation | 682 | 682 | ||
Net loss | (2,562) | (2,562) | ||
Ending balance, value at Sep. 30, 2021 | $ 7 | 33,158 | (12,563) | 20,602 |
Ending balance, shares at Sep. 30, 2021 | 6,929 | |||
Beginning balance, value at Dec. 31, 2021 | $ 7 | 34,903 | (15,294) | 19,616 |
Beginning balance, shares at Dec. 31, 2021 | 7,122 | |||
Stock based compensation | 1,916 | 1,916 | ||
Net loss | (7,804) | (7,804) | ||
Ending balance, value at Sep. 30, 2022 | $ 7 | 36,819 | (23,098) | 13,728 |
Ending balance, shares at Sep. 30, 2022 | 7,122 | |||
Beginning balance, value at Jun. 30, 2022 | $ 7 | 36,360 | (20,854) | 15,513 |
Beginning balance, shares at Jun. 30, 2022 | 7,122 | |||
Stock based compensation | 459 | 459 | ||
Net loss | (2,244) | (2,244) | ||
Ending balance, value at Sep. 30, 2022 | $ 7 | $ 36,819 | $ (23,098) | $ 13,728 |
Ending balance, shares at Sep. 30, 2022 | 7,122 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net loss | $ (2,244) | $ (2,562) | $ (7,804) | $ (6,256) | |
Adjustments to reconcile net loss to net cash used in operations: | |||||
Depreciation | 57 | 24 | 160 | 63 | |
Changes in severance pay asset, net | 51 | (56) | |||
Share based compensation | 459 | 682 | 1,916 | 1,317 | |
Profit from exchange differences from operating lease liability | (2) | (52) | |||
Loss (Profit) from exchange differences on cash and cash equivalents | (26) | (8) | 301 | (12) | |
Interest income in respect of deposits | (43) | (66) | |||
CHANGES IN OPERATING ASSET AND LIABILITY ITEMS: | |||||
Decrease (increase) in accounts receivable | 84 | 41 | (7) | (2) | |
Decrease (increase) in inventory | (43) | (485) | 99 | ||
Decrease in operating lease liability | (58) | (183) | |||
Decrease in ROU asset | 78 | 210 | |||
Increase in related parties | 45 | 12 | 28 | 72 | |
Decrease (increase) in other current assets | 138 | 339 | 171 | (170) | |
Increase (decrease) in account payables | 57 | (102) | 263 | 122 | |
Decrease (increase) in contract fulfillment assets | 60 | (124) | 120 | (504) | |
Increase (decrease) in contract liabilities | (102) | (8) | 1,333 | 529 | |
Increase (decrease) in accrued compensation expenses | (24) | (26) | (3) | 34 | |
Increase (decrease) in other accrued expenses | (145) | 82 | (60) | 60 | |
Net cash flows used in operating activities | (1,709) | (1,650) | (4,107) | (4,704) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchase of property and equipment | (45) | (313) | (87) | (483) | |
Withdrawal of short terms deposits | 5,000 | ||||
Investment in short term deposits | (3,000) | (6,500) | |||
Net cash flows provided by (used in) investing activities | (3,045) | (313) | (1,587) | (483) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Issuance expenses | (95) | (50) | |||
Proceeds from exercise of warrants | 2,459 | ||||
Proceeds from issuance of shares and warrants | 19,118 | ||||
Net cash flows provided by financing activities | (95) | 21,527 | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,754) | (2,058) | (5,694) | 16,340 | |
PROFIT (LOSS) FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | 26 | 8 | (301) | 12 | |
BALANCE OF CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 7,314 | 21,775 | 8,581 | 3,373 | 3,373 |
BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 2,586 | 19,725 | 2,586 | 19,725 | $ 8,581 |
Non cash activities | |||||
Issuance expenses | 45 | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | 37 | 64 | 118 | 423 | |
Termination of right-of-use assets in exchange for cancellation of operating lease obligations | (65) | (65) | |||
Increase in property and equipment through a decrease in advances to suppliers | $ 31 | $ 31 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1 – GENERAL a ScoutCam Inc. (the “Company”), formerly known as Intellisense Solutions Inc., (“Intellisense”), was incorporated under the laws of the State of Nevada on March 22, 2013. Prior to the closing of the Exchange Agreement (as defined below), the Company was a non-operating “shell company”. The Company’s wholly owned subsidiary, ScoutCam Ltd. (“ScoutCam”), was formed in the State of Israel on January 3, 2019, as a wholly-owned subsidiary of Medigus Ltd. (“Medigus”), an Israeli company traded on the Nasdaq Capital Market, and commenced operations on March 1, 2019. In December 2019, Medigus and ScoutCam consummated an asset transfer agreement, under which Medigus transferred and assigned certain assets and intellectual property rights related to its miniaturized imaging business to ScoutCam. On December 30, 2019, Intellisense and Medigus consummated a securities exchange agreement (the “Exchange Agreement”), pursuant to which Medigus delivered 100% of its holdings in ScoutCam to Intellisense in exchange for shares of Intellisense’s common stock representing 60% of the issued and outstanding share capital of Intellisense immediately upon the consummation of the Exchange Agreement. As of September 30, 2022, Medigus beneficially owned 27.02% of the Company’s outstanding common stock. The Company, through ScoutCam, provides image-based platforms. Through the use of its proprietary visualization technology, ScoutCam offers solutions across predictive maintenance and condition-based monitoring markets, in sectors such as energy, automotive and aviation. ScoutCam’s solutions are based on small and highly resilient cameras, specialized AI analysis and supplementary technologies. SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – GENERAL b. On August 9, 2021, the Company amended its Articles of Incorporation to effect a nine-to-one c. Since incorporation of the Company and through September 30, 2022, the Company accumulated a deficit of $ 23,098 d. In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (COVID19) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on its operations and determined that there were no material adverse impacts on the Company’s results of operations and financial position as of September 30, 2022. These estimates may change, as new events occur, and additional information is obtained. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES a. Unaudited Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Group’s Annual Report on Form 10-K for the year ended December 31, 2021. b. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. c. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, inventory impairment, stock based compensation, as well as in estimates used in applying the revenue recognition policy. Actual results may differ from those estimates. SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES d. Significant Accounting Policies The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements. As described therein, to the extent development services are not distinct from the performance obligation relating to the subsequent production phase, revenue from these services is deferred until commencement of the production phase. Further to the inception of the production phase (refer to Note 5), the Company recognizes deferred development services over the expected term of production. e. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s condensed consolidated financial statements. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
LEASES | NOTE 3 – LEASES On September 30, 2022, the Group’s ROU assets and lease liabilities for operating leases totaled $ 325 277 In December 2020, ScoutCam entered into a lease agreement for office space in Omer, Israel. The agreement is for 36 months beginning on January 1, 2021. In March 2021, ScoutCam entered into a lease agreement for additional office space in Omer, Israel. The agreement is until December 31, 2023 12 L ease expenses recorded in the interim consolidated statements of operations were $ 203 ScoutCam subleases part of the office space to a third party for approximately $ 3 Supplemental cash flow information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES Nine months ended September 30, 2022 USD in thousands Cash payments for operating leases 203 Total lease expenses 203 As of September 30, 2022, the Company’s operating leases had a weighted average remaining lease term of 0.47 6% SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2022 52 2023 194 2024 40 2025 6 Total future lease payments 292 Less imputed interest (15 ) Total lease liability balance 277 SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 4 – EQUITY Warrants: As of September 30, 2022, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Warrant Issuance Date Expiration Date Exercise Price Per Share ($) Number of Shares of common stock Underlying Warrants March 2021 Warrant March 29, 2021 March 31, 2026 10.350 2,469,156 2,469,156 In addition, if the Company achieves an aggregate amount of $ 33 three years 298,722 10 SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY Share-based compensation to employees, directors and service providers: In February 2020, the Company’s Board of Directors approved the 2020 Share Incentive Plan (the “Plan”). The Plan initially included a pool of 580,890 64,099 On June 22, 2020, the Company’s Board of Directors approved an increase to the Company’s option pool pursuant to the Plan by an additional 401,950 777,778 The Plan is designed to enable the Company to grant options to purchase shares of common stock and RSUs under various and different tax regimes including, without limitation: (i) pursuant and subject to Section 102 of the Israeli Tax Ordinance or any provision which may amend or replace it and any regulations, rules, orders or procedures promulgated thereunder and to designate them as either grants made through a trustee or not through a trustee; and (ii) pursuant and subject to Section 3 (i) of the Israeli Tax Ordinance. Stock option activity During the nine months ended September 30, 2022, the Company granted 53,000 The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option pricing model, using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS Nine months ended September 30, Underlying value of ordinary shares ($) 7.2 Exercise price ($) 4.5 Expected volatility (%) 127.62 % Term of the options (years) 7 Risk-free interest rate 1.98 % The cost of the benefit embodied in the options granted during the nine months ended September 30, 2022, based on their fair value as at the grant date, is estimated to be approximately $ 356 SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY The following table summarizes stock option activity for the nine months ended September 30, 2022: SCHEDULE OF STOCK OPTIONS ACTIVITY For the Amount of Weighted $ Outstanding at beginning of period 1,253,554 3.31 Granted 53,000 4.50 Cancelled (52,569 ) 3.17 Outstanding at end of period 1,253,985 3.36 Vested at end of period 748,531 3.03 Restricted stock unit (“RSU”) activity During the nine months ended September 30, 2022, the Company granted 90,000 Each RSU will vest based on continued service which is generally over three years. The grant date fair value of the award will be recognized as stock-based compensation expense over the requisite service period. The fair value of restricted stock units was estimated on the date of grant based on the fair value of the Company’s common stock. The cost of the benefit embodied in the RSU granted during the nine months ended September 30, 2022, based on their fair value as at the grant date, is estimated to be approximately $ 648 The following table summarizes RSU activity for the nine months ended September 30, 2022: SCHEDULE OF STOCK OPTIONS ACTIVITY For the Amount of RSU Weighted $ Outstanding at beginning of period - - Granted 90,000 7.2 Vested - - Forfeited - - Unvested and Outstanding at end of period 90,000 7.2 SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY The following table sets forth the total share-based payment expenses resulting from options granted, included in the statements of operation: SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES Nine months ended September 30, USD in thousands Cost of revenues 37 Research and development 442 Sales and marketing 134 General and administrative 1,303 Total expenses 1,916 |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 5 – REVENUES Contract fulfillment assets and Contract liabilities: The Company’s contract fulfillment assets and contract liabilities as of September 30, 2022 and December 31, 2021 were as follows: SCHEDULE OF CONTRACT LIABILITIES September 30, December 31, 2022 2021 USD in thousands Contract fulfillment assets 1,555 1,675 Contract liabilities 3,753 2,420 Contract liabilities include advance payments, which are primarily related to advanced billings for development services. In the second quarter of 2022 the Company completed the development of its miniature camera solution relating to these advanced payments and moved to production. As a result, the Company recognized revenues of $ 211 120 In addition, the Company recognized revenues of 222 $ thousands during the nine-month period from the sales of the product. a. The Company’s contract fulfillment assets were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS Nine months ended Twelve months ended December 31, 2022 2021 USD in thousands Balance at beginning of year 1,675 1,130 Additions during the period - 545 Additions (expenses) recognized during the period (120 ) - Balance at end of period 1,555 1,675 b. The Company’s contract liabilities were as follows: SCHEDULE OF CONTRACT FULFILLMENT LIABILITIES Nine months ended Twelve months ended 2022 2021 USD in thousands Balance at beginning of period 2,420 848 Deferred revenue relating to new sales 1,616 1,641 Revenue recognized during the period – development services (211 ) - Recognition during the period - other (72 ) (69 ) Balance at end of period 3,753 2,420 Remaining Performance Obligations Remaining Performance Obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be recognized as revenue in future periods. As of September 30, 2022, the total RPO amounted to $ 3,753 NOTE 6 – SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 6 - INVENTORY Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2022 2021 USD in thousands Raw materials and supplies 544 99 Work in progress 65 2 Finished goods 43 66 Inventory Net 652 167 During the period ended September 30, 2022, no impairment occurred. |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 7 – LOSS PER SHARE Basic loss per share is computed by dividing net loss attributable to ordinary shareholders of the Company, by the weighted average number of ordinary shares as described below. In computing the Company’s diluted loss per share, the numerator used in the basic loss per share computation is adjusted for the dilutive effect, if any, of the Company’s potential shares of common stock. The denominator for diluted loss per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 8 – RELATED PARTIES a. Balances with related parties SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, 2022 December 31, 2021 USD in thousands Directors(*) 67 - Medigus - 39 (*) represents directors’ compensation b. During nine months ended September 30, 2022 the Company received development services from Smartec R&D Ltd., a company owned by the Company’s CTO. Total compensation during the nine months ended September 30, 2022 and September 30, 2021 was approximately $ 87 52 c On July 12, 2022, the Company and Yovav Sameah, the Chief Executive Officer of the Company, mutually agreed that the Yovav’s employment with the Company would terminate on October 18, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS On July 13, 2022, the Board resolved to appoint Mr. Yehu Ofer to serve as Chief Executive Officer of the Company, which appointment shall enter into effect on October 18, 2022. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Statements | a. Unaudited Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Group’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Principles of Consolidation | b. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | c. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, inventory impairment, stock based compensation, as well as in estimates used in applying the revenue recognition policy. Actual results may differ from those estimates. SCOUTCAM INC. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Significant Accounting Policies | d. Significant Accounting Policies The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements. As described therein, to the extent development services are not distinct from the performance obligation relating to the subsequent production phase, revenue from these services is deferred until commencement of the production phase. Further to the inception of the production phase (refer to Note 5), the Company recognizes deferred development services over the expected term of production. |
Recent Accounting Pronouncements | e. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s condensed consolidated financial statements. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES | Supplemental cash flow information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES Nine months ended September 30, 2022 USD in thousands Cash payments for operating leases 203 Total lease expenses 203 |
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES | SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2022 52 2023 194 2024 40 2025 6 Total future lease payments 292 Less imputed interest (15 ) Total lease liability balance 277 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK | As of September 30, 2022, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Warrant Issuance Date Expiration Date Exercise Price Per Share ($) Number of Shares of common stock Underlying Warrants March 2021 Warrant March 29, 2021 March 31, 2026 10.350 2,469,156 2,469,156 |
SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS | The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option pricing model, using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS Nine months ended September 30, Underlying value of ordinary shares ($) 7.2 Exercise price ($) 4.5 Expected volatility (%) 127.62 % Term of the options (years) 7 Risk-free interest rate 1.98 % |
SCHEDULE OF STOCK OPTIONS ACTIVITY | The following table summarizes stock option activity for the nine months ended September 30, 2022: SCHEDULE OF STOCK OPTIONS ACTIVITY For the Amount of Weighted $ Outstanding at beginning of period 1,253,554 3.31 Granted 53,000 4.50 Cancelled (52,569 ) 3.17 Outstanding at end of period 1,253,985 3.36 Vested at end of period 748,531 3.03 |
SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES | The following table sets forth the total share-based payment expenses resulting from options granted, included in the statements of operation: SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES Nine months ended September 30, USD in thousands Cost of revenues 37 Research and development 442 Sales and marketing 134 General and administrative 1,303 Total expenses 1,916 |
Restricted Stock [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF STOCK OPTIONS ACTIVITY | The following table summarizes RSU activity for the nine months ended September 30, 2022: SCHEDULE OF STOCK OPTIONS ACTIVITY For the Amount of RSU Weighted $ Outstanding at beginning of period - - Granted 90,000 7.2 Vested - - Forfeited - - Unvested and Outstanding at end of period 90,000 7.2 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF CONTRACT LIABILITIES | The Company’s contract fulfillment assets and contract liabilities as of September 30, 2022 and December 31, 2021 were as follows: SCHEDULE OF CONTRACT LIABILITIES September 30, December 31, 2022 2021 USD in thousands Contract fulfillment assets 1,555 1,675 Contract liabilities 3,753 2,420 |
SCHEDULE OF CONTRACT FULFILLMENT ASSETS | SCHEDULE OF CONTRACT FULFILLMENT ASSETS Nine months ended Twelve months ended December 31, 2022 2021 USD in thousands Balance at beginning of year 1,675 1,130 Additions during the period - 545 Additions (expenses) recognized during the period (120 ) - Balance at end of period 1,555 1,675 |
SCHEDULE OF CONTRACT FULFILLMENT LIABILITIES | SCHEDULE OF CONTRACT FULFILLMENT LIABILITIES Nine months ended Twelve months ended 2022 2021 USD in thousands Balance at beginning of period 2,420 848 Deferred revenue relating to new sales 1,616 1,641 Revenue recognized during the period – development services (211 ) - Recognition during the period - other (72 ) (69 ) Balance at end of period 3,753 2,420 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2022 2021 USD in thousands Raw materials and supplies 544 99 Work in progress 65 2 Finished goods 43 66 Inventory Net 652 167 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF BALANCES WITH RELATED PARTIES | a. Balances with related parties SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, 2022 December 31, 2021 USD in thousands Directors(*) 67 - Medigus - 39 (*) represents directors’ compensation b. During nine months ended September 30, 2022 the Company received development services from Smartec R&D Ltd., a company owned by the Company’s CTO. Total compensation during the nine months ended September 30, 2022 and September 30, 2021 was approximately $ 87 52 c On July 12, 2022, the Company and Yovav Sameah, the Chief Executive Officer of the Company, mutually agreed that the Yovav’s employment with the Company would terminate on October 18, 2022. |
GENERAL (Details Narrative)
GENERAL (Details Narrative) - USD ($) $ in Thousands | Aug. 09, 2021 | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Stockholders' equity, reverse stock split | nine-to-one | ||
Accumulated deficit | $ 23,098 | $ 15,294 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases | |
Cash payments for operating leases | $ 203 |
Total lease expenses | $ 203 |
SCHEDULE OF MATURITIES LEASE LI
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases | |
Remainder of 2022 | $ 52 |
2023 | 194 |
2024 | 40 |
2025 | 6 |
Total future lease payments | 292 |
Less imputed interest | (15) |
Total lease liability balance | $ 277 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 02, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Operating lease, right-of-use asset | $ 325 | $ 482 | |
Operating lease, liability | 277 | ||
Operating lease, payments | 203 | ||
Operating lease, expense | 203 | ||
Sublease income | $ 3 | ||
Operating lease, weighted average remaining lease term | 5 months 19 days | ||
Operating lease, weighted average discount rate, percent | 6% | ||
Lease Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lessee, operating lease, description | In December 2020, ScoutCam entered into a lease agreement for office space in Omer, Israel. The agreement is for 36 months beginning on January 1, 2021. | ||
Operating lease, payments | $ 12 |
SCHEDULE OF STOCK WARRANTS OUTS
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Warrant March 2021 [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Warrant issuance date | Mar. 29, 2021 |
Warrant expiration date | Mar. 31, 2026 |
Warrant exercise price per share | $ / shares | $ 10.350 |
Number of shares of common stock underlying warrants | 2,469,156 |
Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Number of shares of common stock underlying warrants | 2,469,156 |
SCHEDULE OF SHARE-BASED PAYMENT
SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares | |
Equity [Abstract] | |
Underlying value of ordinary shares | $ 7.2 |
Exercise price | $ 4.5 |
Expected volatility rate | 127.62% |
Term of the options (years) | 7 years |
Risk-free interest rate | 1.98% |
SCHEDULE OF STOCK OPTIONS ACTIV
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options, Outstanding at beginning of period | shares | 1,253,554 |
Weighted average exercise price, Outstanding at beginning of period | $ / shares | $ 3.31 |
Options, outstanding, granted | shares | 53,000 |
Weighted average exercise price, Granted | $ / shares | $ 4.50 |
Options, Cancelled | shares | (52,569) |
Weighted average exercise price, Cancelled | $ / shares | $ 3.17 |
Options, Outstanding at ending of period | shares | 1,253,985 |
Weighted average exercise price, Outstanding at end of period | $ / shares | $ 3.36 |
Options, outstanding, vested | shares | 748,531 |
Weighted average exercise price, Vested at end of period | $ / shares | $ 3.03 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options, Outstanding at beginning of period | shares | |
Options, outstanding, granted | shares | 90,000 |
Options, Outstanding at ending of period | shares | 90,000 |
Options, outstanding, vested | shares | |
Weighted average grant date fair value per share, begining of period | $ / shares | |
Weighted average grant date fair value per share, granted | $ / shares | 7.2 |
Weighted average grant date fair value per share,vested | $ / shares | |
Options, outstanding, forfeited | shares | |
Weighted average grant date fair value per share, forfeited | $ / shares | |
Weighted average grant date fair value per share, unvested and outstanding ending balance | $ / shares | $ 7.2 |
SCHEDULE OF TOTAL SHARE-BASED P
SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total expenses | $ 459 | $ 682 | $ 1,916 | $ 1,317 |
Cost of Sales [Member] | ||||
Total expenses | 37 | |||
Research and Development Expense [Member] | ||||
Total expenses | 442 | |||
Selling and Marketing Expense [Member] | ||||
Total expenses | 134 | |||
General and Administrative Expense [Member] | ||||
Total expenses | $ 1,303 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 22, 2020 | Mar. 15, 2020 | Feb. 29, 2020 | Jun. 30, 2021 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation arrangement Options grants in period gross | 53,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation arrangement Options grants in period gross | 90,000 | ||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 648 | ||||
2020 Share Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation arrangement Options grants in period gross | 53,000 | ||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 356 | ||||
2020 Share Incentive Plan [Member] | Employees, Consultants, Directors and Other Service Providers [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation arrangement Options grants in period gross | 580,890 | ||||
2020 Share Incentive Plan [Member] | Board of Directors [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation arrangement Options grants in period gross | 401,950 | 64,099 | 777,778 | ||
Medigus Ltd [Member] | Exchange Agreement [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Proceeds from issuance of common stock | $ 33,000 | ||||
Expected sales period | 3 years | ||||
Number of common stock shares issued | 298,722 | ||||
Outstanding share capital precentage | 10% |
SCHEDULE OF CONTRACT LIABILITIE
SCHEDULE OF CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract fulfillment assets | $ 1,555 | $ 1,675 | $ 1,130 |
Contract liabilities | $ 3,753 | $ 2,420 | $ 848 |
SCHEDULE OF CONTRACT FULFILLMEN
SCHEDULE OF CONTRACT FULFILLMENT ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Balance at beginning of year | $ 1,675 | $ 1,130 | $ 1,130 | ||
Additions during the period | 545 | ||||
Additions (expenses) recognized during the period | $ (60) | $ 124 | (120) | $ 504 | |
Balance at end of period | $ 1,555 | $ 1,555 | $ 1,675 |
SCHEDULE OF CONTRACT FULFILLM_2
SCHEDULE OF CONTRACT FULFILLMENT LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Balance at beginning of period | $ 2,420 | $ 848 |
Deferred revenue relating to new sales | 1,616 | 1,641 |
Revenue recognized during the period – development services | (211) | |
Recognition during the period - other | (72) | (69) |
Balance at end of period | $ 3,753 | $ 2,420 |
REVENUES (Details Narrative)
REVENUES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Revenues from development services | $ 430 | $ 211 | $ 1,279 | $ 821 | |
Change in contract fulfillment assets | (60) | $ 124 | (120) | $ 504 | |
Revenues from the sales of miniature camera solution products | 222 | ||||
Revenue, remaining performance obligation, amount | $ 3,753 | 3,753 | |||
Miniature camera solution [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Revenues from development services | 211 | ||||
Change in contract fulfillment assets | $ 120 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 544 | $ 99 |
Work in progress | 65 | 2 |
Finished goods | 43 | 66 |
Inventory Net | $ 652 | $ 167 |
SCHEDULE OF BALANCES WITH RELAT
SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Balances with related parties | $ 67 | $ 39 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Balances with related parties | [1] | 67 | |
Medigus Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Balances with related parties | $ 39 | ||
[1]represents directors’ compensation |
SCHEDULE OF BALANCES WITH REL_2
SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions [Abstract] | ||
Compensation expense | $ 87 | $ 52 |