Odysight.ai (ODYS) 10-K 28 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Mar. 28, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
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 and 3B
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 public float			$ 19,220
Entity Common Stock, Shares Outstanding		10,432,518
Documents Incorporated by Reference	None
ICFR Auditor Attestation Flag	false
Auditor Firm ID	1197
Auditor Name	Brightman Almagor Zohar & Co.
Auditor Location	Tel Aviv, Israel

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 10,099	$ 8,581
Short terms deposits	3,047	11,013
Accounts receivable	60	8
Inventory	630	167
Other current assets	281	443
Total current assets	14,117	20,212
NON-CURRENT ASSETS:
Contract fulfillment assets	1,495	1,675
Property and equipment, net	648	781
Operating lease right-of-use assets	307	482
Severance pay asset	328	396
Total non-current assets	2,778	3,334
TOTAL ASSETS	16,895	23,546
CURRENT LIABILITIES:
Accounts payable	297	103
Contract liabilities - short term	1,426	346
Operating lease liabilities - short term	199	256
Accrued compensation expenses	365	355
Related parties	58	39
Other accrued expenses	214	210
Total current liabilities	2,559	1,309
NON-CURRENT LIABILITIES:
Contract liabilities - long term	2,218	2,074
Operating lease liabilities - long term	64	203
Liability for severance pay	268	344
Total non-current liabilities	2,550	2,621
TOTAL LIABILITIES	5,109	3,930
SHAREHOLDERS’ EQUITY:
Common stock, $0.001 par value; 300,000,000 shares authorized as of December 31, 2022 and December 31, 2021, 7,121,737 shares issued and outstanding as of December 31, 2022 and December 31, 2021	7	7
Additional paid-in capital	36,541	34,903
Accumulated deficit	(24,762)	(15,294)
TOTAL SHAREHOLDERS’ EQUITY	11,786	19,616
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 16,895	$ 23,546

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
REVENUES	$ 665	$ 387
COST OF REVENUES	1,631	1,108
GROSS LOSS	(966)	(721)
RESEARCH AND DEVELOPMENT EXPENSES	4,197	2,002
SALES AND MARKETING EXPENSES	699	908
GENERAL AND ADMINISTRATIVE EXPENSES	3,577	5,481
OPERATING LOSS	(9,439)	(9,112)
OTHER INCOME	30	8
FINANCING INCOME (EXPENSES), NET	(59)	117
LOSS BEFORE TAXES ON INCOME	(9,468)	(8,987)
TAXES ON INCOME
NET LOSS	$ (9,468)	$ (8,987)
Net loss per share (basic and diluted, in USD)	$ (1.33)	$ (1.44)
Weighted average common shares (basic and diluted, in thousands)	7,122	6,240

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]		Additional Paid-in Capital [Member]		Retained Earnings [Member]	Total
Balance at Dec. 31, 2020	$ 4		$ 10,267		$ (6,307)	$ 3,964
Balance, shares at Dec. 31, 2020	4,084
Stock based compensation (see note 9)			2,030			2,030
Net loss					(8,987)	(8,987)
Issuance of shares and warrants (see note 9)	$ 2		19,116			19,118
Issuance of shares and warrants,shares	2,469
Exercise of warrants (see note 9)	$ 1		3,490			3,491
Exercise of warrants, shares	568
Round up of shares due to reverse stock split (see note 9)		[1]		[1]			[1]
Round up shares due to reverse stock split, shares	1
Balance at Dec. 31, 2021	$ 7		34,903		(15,294)	19,616
Balance, shares at Dec. 31, 2021	7,122
Stock based compensation (see note 9)			1,638			1,638
Net loss					(9,468)	(9,468)
Balance at Dec. 31, 2022	$ 7		$ 36,541		$ (24,762)	$ 11,786
Balance, shares at Dec. 31, 2022	7,122
[1]Represents an amount less than $1 thousand

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (9,468)	$ (8,987)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	251	114
Stock based compensation	1,638	2,030
Profit (loss) from exchange differences on cash and cash equivalents	269	(130)
Profit from exchange differences from operating lease liabilities	(49)
Severance pay asset and liability	(8)	(25)
Interest income in respect of deposits	(34)	(13)
CHANGES IN OPERATING ASSET AND LIABILITY:
Decrease (increase) in accounts receivable	(52)	9
Decrease (increase) in inventory	(463)	77
Increase (decrease) in operating lease liability	(233)	20
Decrease (increase) in ROU asset	261	(43)
Decrease (increase) in other current assets	162	(126)
Increase in account payables	194	24
Increase (decrease) in contract fulfillment assets	180	(545)
Increase in contract liabilities	1,224	1,572
Increase (decrease) in accrued compensation expenses	10	(14)
Increase in related parties	19	86
Increase in other accrued expenses	4	65
Net cash flows used in operating activities	(6,095)	(5,886)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(118)	(595)
Withdrawal of short terms deposits	14,500
Investment in short terms deposits	(6,500)	(11,000)
Net cash flows provided by (used in) investing activities	7,882	(11,595)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares and warrants		19,118
Proceeds from exercise of warrants		3,491
Issuance expenses		(50)
Net cash flows provided by financing activities		22,559
INCREASE IN CASH AND CASH EQUIVALENTS	1,787	5,078
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	8,581	3,373
PROFITS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS	(269)	130
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR	10,099	8,581
Non cash activities
Right-of-use assets obtained in exchange for operating lease liabilities	155	524
Increase in property and equipment through a decrease in advances to suppliers		$ 31

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 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 December 31, 2022, Medigus beneficially owned 27.02% of the Company’s outstanding common stock. The Company, through ScoutCam, is engaged in the development, production and marketing of innovative Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) technologies, providing visual sensing and AI-based video analytics solutions for critical systems in the aviation, maritime, industrial non-destructing-testing industries, transportation, and energy industries. Some of the Company’s products utilize our micro visualization technology in medical devices for complex and minimally invasive medical procedures. Company’s technology includes proven video technologies and products amalgamated into a first-of-its-kind, FDA-cleared minimally invasive surgical device. The Company’s video-based sensors, embedded software and AI algorithms are being deployed in hard-to-reach locations and harsh environments across a variety of PdM and CBM use cases. The Company’s solution allows maintenance and operations teams visibility into areas which are inaccessible under normal circumstances, or where the operating ambience otherwise is not suitable for continuous real-time monitoring’ and has various applications which have relevancy in wide range of industry segments, that utilize complicated mechanics requiring ongoing monitoring and predictive maintenance applications. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – GENERAL : b. On August 9, 2021, the Company amended its Articles of Incorporation to effect a nine-to-one As a result of the reverse stock split, every nine shares of the Company’s outstanding Common Stock were combined and reclassified into one share of the Company’s Common Stock. No fractional shares were issued in connection with or following the reverse split. The amount of authorized capital of the Company’s Common Stock and par value of such shares remained unchanged. All share, stock option and per share information in these consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis. . c. Since incorporation of ScoutCam and through December 31, 2022, the Company accumulated a deficit of approximately $ 25 million and its activities have been funded mainly by its shareholders. The Company’s management believes the Company’ cash and cash resources as of December 31, 2022 as well as its proceeds from issuance of common stock and warrants in the private offering as detailed in Note 14, will allow the Company to fund its operating plan through at least the next 12 months. However, the Company expects to continue to incur significant research and development and other costs related to its ongoing operations and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES a. Basis of preparation The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) applied on a consistent basis. b. 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 its assumptions on an ongoing basis, including those related to contingencies and inventory impairment, as well as estimates used in applying its revenue recognition policy. Actual results may differ from these estimates. c. Functional currency A majority of ScoutCam’s revenues are generated in U.S. dollars. The substantial majority of ScoutCam costs are incurred in U.S. dollars and New Israeli Shekels (“NIS”). ScoutCam management believes that the U.S. dollar is the currency of the primary economic environment in which ScoutCam operates. Thus, the functional currency of ScoutCam is the U.S. dollar. Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Balances in non-U.S. dollar currencies are translated into U.S. dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-U.S. dollar transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i) for transactions exchange rates at transaction dates and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization) historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate. d. Cash and Cash Equivalents The Company considers as cash equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash. e. Short-term bank deposits Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost which approximates fair market value. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : f. Accounts receivable Accounts receivable are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company estimates the collectability of its accounts receivable balances and adjusts its allowance for doubtful accounts accordingly. When revenue recognition criteria are not met for a sale transaction that has been billed, the Company does not recognize deferred revenues or the related account receivable. As of December 31, 2022 and 2021, no g. Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives. The annual depreciation rates are as follows: SCHEDULE OF PROPERTY AND EQUIPMENT ANNUAL DEPRECIATION RATES % Machinery and laboratory equipment 10 15 % Office furniture and equipment 10 % Computers and computer software 33 % Leasehold improvements Over the shorter of the lease term (including options if any) or useful life h. Severance pay Israeli labor law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. Pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), all of the ScoutCam’s employees in Israel are entitled to a monthly contribution, at a rate of 8.33 The asset and the liability for severance pay presented in the balance sheets reflects employees that began employment prior to automatic application of Section 14. The severance pay liability of ScoutCam to its employees that began employment prior to automatic application of Section 14 is based upon the number of years of service and the latest monthly salary of such employees and is partly covered by regular deposits with recognized pension funds and deposits with severance pay funds. Under labor laws, these deposits are in the employees’ names and, subject to certain limitations, are the property of the employees. ScoutCam records the obligation as if it were payable at each balance sheet date on an undiscounted basis. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : i. Stock-Based Compensation The Company measures and recognizes compensation expense for its equity classified stock-based awards granted under its plan based on estimated fair values on the grant dates. The Company calculates the estimated fair value of option awards on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires a number of assumptions, of which the most significant are the stock price volatility and the expected option term. The Company’s expected dividend rate is zero since the Company does not currently pay cash dividends on its stocks and does not anticipate doing so in the foreseeable future. Each of the above factors requires the Company to use judgment and make estimates in determining the percentages and time periods used for the calculation. If the Company were to use different percentages or time periods, the estimated fair value of option awards could be materially different. The Company recognizes stock-based compensation cost for option awards on an accelerated basis over the employee’s requisite service period, net of estimated forfeitures. j. Inventories Inventories include raw materials, inventory in process and finished products and are valued at the lower of cost or net realizable value. Inventories are stated at a lower of cost, determined by the first-in, first-out method, or market based on net realizable value . Costs of purchased raw materials and inventory in process include costs of design, raw materials, direct labor, other direct costs and fixed production overheads. The inventories are adjusted for estimated excess and obsolescence and written down to net realizable value based upon estimates of future demand, technology developments and market conditions. k. Revenue recognition a) Revenue measurement The Company’s revenues are measured according to the ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, revenues are measured according to the amount of consideration that the Company expects to be entitled to receive in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenues are presented net of VAT. b) Revenue recognition The Company recognizes revenue when a customer obtains control over promised goods or services. For each performance obligation, the Company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time. Performance obligations are satisfied over time if one of the following criteria is met: SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance; (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (c) the Company’s performance does not create an asset with an alternative use for the Company and the Company has an enforceable right to payment for performance completed to date. If a performance obligation is not satisfied over time, a Company satisfies the performance obligation at a point in time. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Product Revenue Revenues from product sales are recognized at a point in time when the customer obtains control of the Company’s product, typically upon shipment to the customer. Indirect taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Service Revenue The Company also generates revenues from development services. Revenue from development services is recognized over the period of the applicable service contract. To the extent development services are not distinct from the performance obligation relating to the subsequent mass production phase of the prototype under development, revenue from these services is deferred until commencement of the production phase of the project and are then recognized over the expected term production. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : l. Cost of revenues Cost of revenue consists of products purchased from sub-contractors, raw materials for in-house assembly line, shipping and handling costs to customers, salary, employee-related expenses, depreciation and overhead expenses. Cost of revenues are expensed commensurate with the recognition of the respective revenues. Costs deferred in respect of deferral of revenues are recorded as contract fulfilment assets on the Company’s balance sheet and are written down to the extent the contract is expected to incur losses. m. Research and development costs Research and development costs are expensed as incurred and includes salaries and employee-related expenses, overhead expenses, material, and third-party contractors’ charges. n. Income taxes Income taxes are accounted for using the asset and liability approach under ASC-740, “Income Taxes”. The asset and liability approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax liabilities and assets is based on provisions of the relevant tax law. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Uncertain tax positions are accounted for in accordance with the provisions of ASC 740-10, under which a company may recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxation authorities, based on the technical merits of the position, at the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties, if any, related to unrecognized tax benefits are recognized in tax expense. o. Legal contingencies From time to time, the Company and its subsidiary become involved in legal proceedings or are subject to claims arising in their ordinary course of business. Such matters are generally subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when the loss is probable and can reasonably estimate the amount of any such loss. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES p. Basic and diluted net loss per common stock Basic net loss per common stock is computed by dividing net loss, as adjusted, to include the weighted average number of shares of common stock outstanding during the year. Diluted net loss per common stock is computed by dividing net loss, as adjusted, by the weighted average number of shares of common stock outstanding during the year, plus the number of shares of common stock that would have been outstanding if all potentially dilutive shares of common stock had been issued, using the treasury stock method, in accordance with ASC 260-10 “Earnings per Share”. All outstanding stock options and warrants have been excluded from the calculation of the diluted loss per share for the years ended December 31, 2022 and December 31, 2021, since all such securities have an anti-dilutive effect. q. Leases In accordance with ASC 842, the Company determines whether an arrangement is or contains a lease based on the facts and circumstances present at inception of an arrangement. An arrangement is or contains a lease if the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Arrangements that are determined to be leases at inception are recognized in long-term right-of-use assets (“ROU”) assets and short and long-term lease liabilities in the consolidated balance sheet at lease commencement. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the economic environment at commencement date in determining the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases or payments are recognized on a straight-line basis over the lease term. The Company has elected not to recognize on the balance sheet leases with terms of 12 months or less. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SHORT-TERM DEPOSITS

SHORT-TERM DEPOSITS	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
SHORT-TERM DEPOSITS	NOTE 3 - SHORT-TERM DEPOSITS Short term investments as of December 31, 2022 include bank deposit bearing annual interest rates of 4 12

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4 - INVENTORY SCHEDULE OF INVENTORY 2022 2021 December 31, 2022 2021 USD in thousands Raw materials and supplies 438 99 Work in progress 148 2 Finished goods 44 66 Inventory Net 630 167 During the years 2022 and 2021, no

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 5 - PROPERTY AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET 2022 2021 December 31, 2022 2021 USD in thousands Cost: Machinery and laboratory equipment 619 578 Leasehold improvements, office furniture and equipment 351 316 Computers and computer software 182 140 Total property and equipment, gross 1,152 1,034 Less: accumulated deprecation (504 ) (253 ) Total property and equipment, net 648 781 Depreciation expenses were $ 251 114 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

OTHER ACCRUED EXPENSES

OTHER ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
OTHER ACCRUED EXPENSES	NOTE 6 – OTHER ACCRUED EXPENSES SCHEDULE OF OTHER ACCRUED EXPENSES 2022 2021 December 31, 2022 2021 USD in thousands Internal Revenue Services - 40 Accrued expenses 214 170 Total other accrued expenses 214 210

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 - INCOME TAXES a. Basis of taxation 1. Tax rates applicable to the income of the Israeli subsidiary: ScoutCam is taxed according to Israeli tax laws. The Israeli corporate tax rate from the year 2018 and onwards is 23 2. Tax rates applicable to the income of the U.S. company: The Company is taxed according to U.S. tax laws. The U.S. corporate tax rate from the year 2018 and onwards is 21 b. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: SCHEDULE OF COMPONENT OF DEFERRED TAX ASSET 2022 2021 December 31, 2022 2021 USD in thousands Operating loss carryforward 26,295 15,582 Net deferred tax asset before valuation allowance 6,069 3,595 Valuation allowance (6,069 ) (3,595 ) Net deferred tax - - As of December 31, 2022, the Company has provided a full valuation allowance of $ 6,069 in respect of deferred tax assets resulting from tax loss carryforward and other temporary differences. Management currently believes that because the Company has a history of losses, it is more likely than not that the deferred tax regarding the loss carryforward and other temporary differences will not be realized in the foreseeable future. c. Available carryforward tax losses: As of December 31, 2022, the Company has an accumulated tax loss carryforward of approximately $ 26,295 In addition, under Section 382 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50 percentage point change, by value, in its equity ownership over a three-year period, the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income or taxes may be limited. Such limitations may result in the expiration of net operating losses before utilization. d. The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes. e. As of December 31, 2021, ScoutCam owed NIS 740 229 On November 18, 2021, ScoutCam filed an appeal to the Israeli Tax Authority on the finding of the VAT audit. Due to the uncertainty regarding the outcome of the appeal, the financial statements as of December 31, 2021 included a provision related to the additional taxes of $ 229 In July 2022, ScoutCam reached an agreement with the Israeli Tax Authority, according to which the amount due in additional taxes was reduced to NIS 340 100 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 8 – RELATED PARTIES a. Related Parties Balances: SCHEDULE OF BALANCES WITH RELATED PARTIES December 31, 2022 2021 USD in thousands Directors (directors’ accrued compensation) 48 - Smartec R&D Ltd. (see note 8c) 10 - Medigus - 39 58 39 b. On May 18, 2020, the Company allocated in a private issuance to M. Arkin (1999) Ltd. (“Arkin”) a total of 229,569 8.712 In connection with the Arkin Transaction, the Company, Medigus and Arkin entered into a voting agreement, pursuant to which Arkin and Medigus each agreed to vote their respective shares of common stock in favor of the election of the opposite party’s designated representative(s), as applicable, to the Board (“Voting Agreement”). Each of Arkin’s and Medigus’ rights under the Voting Agreement are contingent upon, inter alia, such party maintaining a certain beneficial ownership threshold in the Company’ as follows: (a) One person designated by Arkin is to be elected, for as long as Arkin, continues to beneficially own at least eight percent of the issued and outstanding capital stock of the Company. (b) Three persons designated by Medigus are to be elected, for as long as Medigus, continues to beneficially own at least thirty five percent of the issued and outstanding capital stock of the Company. (c) Two persons designated by Medigus are to be elected for as long as Medigus, continues to beneficially own less than thirty five percent and more than twenty percent of the issued and outstanding capital stock of the Company. (d) One person designated by Medigus is to be elected for as long as Medigus, continues to beneficially own less than twenty percent and more than eight percent of the issued and outstanding capital stock of the Company. c. During 2021 and 2022 the Company received development services from Smartec R&D Ltd., a company owned by the Company’s CTO. Total compensation for the fiscal years ended December 31, 2021 and December 31, 2022 was $ 82 117 d. During 2021 the Company received financial consultant services from Anona De Finance Ltd., a company owned by one of the Company’s directors. Total expenses for the fiscal years ended December 31, 2021 was approximately $ 37 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
EQUITY	NOTE 9 - EQUITY Increase of the authorized share capital On January 20, 2021, the Company’s Board of Directors approved an increase of the authorized share capital of the Company by an additional 225,000,000 0.001 300,000,000 a. Private placement: 1. In December 2019, the Company allocated in a private placement, a total of 379,269 8.712 Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below) 3.3 Each Warrant A was exercisable into one 5.355 one 8.037 18 In addition, Shrem Zilberman Group Ltd. (the “Consultant”) will be entitled to receive the amount representing 3% 2 250,000 2 250,000 During 2020, 332,551 46,718 December 30, 2020 The Consultant received $ 53 332,551 During the second quarter of 2021, 185,271 573,256 June 30, 2021 The Consultant received $ 45 185,271 2. On March 3, 2020, the Company issued in a private placement a total of 108,880 8.712 Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below) Each Warrant A was exercisable into one 5.355 12 Each Warrant B is exercisable into one 8.037 18 The gross proceeds from the issuance of all securities offered amounted to approximately $ 948 909 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – EQUITY During 2021, 108,880 217,760 September 3, 2021 3. On May 18, 2020, the Company allocated in a private placement to Arkin a total of 229,569 8.712 Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below) Each Warrant A was exercisable into one 5.355 18 Each Warrant B is exercisable into one 8.037 24 The gross proceeds from the issuance of all securities offered amounted to approximately $ 2 1.9 During February 2021, 37,349 During November 2021, 192,220 4. On June 23, 2020, (the “Conversion Date”), the Company entered into a side letter agreement with Medigus whereby the parties agreed to convert, at a conversion price of $ 4.356 381,136 87,497 43,749 87,497 Each Warrant A is exercisable into one 5.355 12 Each Warrant B is exercisable into one 8.037 18 During June 2021, 43,749 On December 23, 2021, 87,497 5. On March 29, 2021, the Company issued to certain investors, including Arkin, a major stockholder of the Company, of which Mori Arkin, a director of the company, is the owner, 2,469,156 20 Each such unit consists of (i) one share of common stock and (ii) one warrant to purchase one share of common stock with an exercise price of $ 10.35 March 31, 2026 135% SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – EQUITY As of December 31, 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 Number of Shares March 2021 Warrant March 29, 2021 March 31, 2026 10.350 2,469,156 2,469,156 b. Stock-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 64,099 401,950 777,778 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. During 2021, the Company granted 648,712 During 2022, the Company granted 479,000 Options granted generally have a contractual term of seven years three four years SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – EQUITY Stock Option Activity The following summarizes stock option activity: SCHEDULE OF STOCK OPTION ACTIVITY Amount of options Weighted average exercise price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) $ $ in thousands Outstanding - December 31, 2020 737,049 2.61 6.23 2,446 Granted 648,712 4.09 - - Forfeited (132,207 ) 3.34 - - Outstanding - December 31, 2021 1,253,554 3.31 5.65 5,884 Granted 479,000 4.50 - - Forfeited (172,514 ) 3.57 - - Outstanding - December 31, 2022 1,560,040 3.64 5.17 2,116 Options Exercisable - December 31, 2022 838,994 3.10 4.24 1,595 As of December 31, 2022, the aggregate intrinsic value of options granted is calculated as the difference between the exercise price and the closing price on the same date. The Company estimates the fair value of stock option awards on the grant date using the Black-Scholes option pricing model. The weighted-average grant date fair value per option granted during the year ended December 31, 2022 was $ 2.76 SCHEDULE OF SHARE-BASED PAYMENT,STOCK OPTIONS, VALUATION ASSUMPTIONS Year ended December 31, 2022 Year ended December 31, 2021 Underlying value of shares ($) 5.00 7.20 7.65 10.35 Exercise price ($) 4.5 2.61 7.2 Expected volatility (%) 40% 46% 49% Term of the options (years) 7 7 Risk-free interest rate (%) 1.98 3.95% 0.78% 1.51% Volatility is derived from the historical volatility of publicly traded set of peer companies. The risk-free interest rates used in the Black-Scholes calculations are based on the prevailing U.S. Treasury yield as determined by the U.S. Federal Reserve. The Company has not paid dividends and does not anticipate paying dividends in the foreseeable future. Accordingly, no dividend yield was assumed for purposes of estimating the fair value of the Company’s stock-based compensation. The weighted average expected life of options was estimated individually in respect of each grant. The unrecognized compensation expense calculated under the fair-value method for stock options expected to vest as of December 31, 2022 is approximately $ 1.45 1.41 During 2022 and 2021 the Company’s Board of Directors authorized the grant of options to purchase 45,000 83,334 shares of common stock of the Company, respectively, to Prof. Goldwasser, the Chairman of the Board. 367 255 During 2021 the Company’s Board of Directors authorized the grant of options to purchase 75,855 213 221 During 2022 and 2021 the Company’s Board of Directors authorized the grant of options to purchase 400,000 shares of common stock of the Company and 335,987 shares of common stock of the Company, respectively, to certain officers of the Company. Total expenses recorded regarding this grant, for the year ended December 31, 2022, and December 31, 2021, are $523 thousand and $871 thousand, respectively. Compensation expense recorded by the Company in respect of its stock-based employees, directors and service providers compensation awards in accordance with ASC 718-10 for the year ended December 31, 2022 and 2021 amounted to $ 1,487 2,030 c. Restricted stock unit (“RSU”) to employees and service providers: During the year ended December 31, 2022, the Company granted 110,000 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 2022, based on their fair value as at the grant date, is estimated to be approximately $ 748 The following table summarizes RSU activity for December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY Amount of RSU Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (years) $ Outstanding - December 31, 2021 - - - Granted 110,000 6.8 - Forfeited (60,000 ) 7.2 - Unvested and Outstanding - December 31, 2022 50,000 6.32 6.44 The unrecognized compensation expense calculated under the fair-value method for RSU expected to vest as of December 31, 2022 is approximately $ 164 1.15 During 2022 the Company’s Board of Directors authorized the grant of options to purchase 90,000 shares of common stock of the Company to certain officers of the Company. 127 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

REVENUES AND ENTITY WIDE DISCLO

REVENUES AND ENTITY WIDE DISCLOSURES	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUES AND ENTITY WIDE DISCLOSURES	NOTE 10 – REVENUES AND ENTITY WIDE DISCLOSURES ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. The Company manages its business based on one operating segment, as described in Note 1. a. Disaggregation of revenue SCHEDULE OF DISAGGREGATION OF REVENUE Year ended on 2022 2021 USD in thousands Development Services (customer A) (*) 317 - Products 348 387 665 387 (*) During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 317 180 7 years In addition, following the commencement of the production phase, the Company recognized product revenues of $ 221 thousands during the year ended December 31, 2022 from the sale of units of the product developed in the context of these development services. b. Revenues by geographical area (based on the location of customers) The following is a summary of revenues within geographic areas: SCHEDULE OF REVENUES WITHIN GEOGRAPHIC AREAS 2022 2021 Year ended on 2022 2021 USD in thousands United States 553 273 United Kingdom 65 48 Israel - 19 Other 47 47 Revenue 665 387 c. Major customers Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constituted at least 10% of total revenues in a certain year): SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE Year ended on December 31, 2022 2021 USD in thousands Customer A 538 - Customer B - 199 Customer C 65 48 d. Contract fulfillment assets and Contract liabilities: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES 2022 2021 December 31, 2022 2021 USD in thousands Contract fulfillment assets: 1,495 1,675 Contract liabilities 3,644 2,420 Contract liabilities include advance payments, which are primarily related to advanced billings for development services. The change in contract fulfillment assets: 2022 2021 December 31, 2022 2021 USD in thousands Balance at beginning of year 1,675 1,130 Additions during the year - 545 Contract costs recognized during the period (180 ) - Balance at end of year 1,495 1,675 The change in contract liabilities: 2022 2021 December 31, 2022 2021 USD in thousands Balance at beginning of year 2,420 848 Deferred revenue relating to new sales 1,613 1,641 Revenue recognized during the year (389 ) (69 ) Balance at end of year 3,644 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 December 31, 2022, the total RPO amounted to $ 3,644 SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases
LEASES	NOTE 11 - LEASES On December 31, 2022, the Group’s ROU assets and lease liabilities for operating leases totaled $ 307 263 On December 31, 2021, the Group’s ROU assets and lease liabilities for operating leases totaled $ 482 459 In December 2020, ScoutCam entered into a lease agreement for office space in Omer, Israel. The agreement is for 36 months beginning January 1, 2021 12 3 In December 2022, ScoutCam entered into a lease agreement for office space in Ramat Gan, Israel. The agreement is for 12 months beginning on December 14, 2022. The agreement expires on December 14, 2023, and the Company has an option to extend the lease period for an additional one year. Therefore, the Company has elected to use the practical expedient regarding short-term leases. 3 In addition, the Company leases vehicles under various operating lease agreements. Operating lease expenses were $ 264 202 Supplemental cash flow information related to operating leases during the period presented was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 261 202 Lease term and discount rate related to operating leases as of the period presented were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE RELATED TO OPERATING LEASES December 31, 2022 2021 USD in thousands Weighted-average remaining lease term (in years) 0.84 0.76 Weighted-average discount rate 6 % 6 % The maturities of lease liabilities under operating leases as of December 31, 2022 are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES USD in thousands 2023 206 2024 54 2025 16 Total undiscounted lease payments 276 Less: Imputed interest (13 ) Total lease liabilities 263

RESEARCH AND DEVELOPMENT EXPENS

RESEARCH AND DEVELOPMENT EXPENSES	12 Months Ended
	Dec. 31, 2022
Research and Development [Abstract]
RESEARCH AND DEVELOPMENT EXPENSES	NOTE 12 – RESEARCH AND DEVELOPMENT EXPENSES SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Salaries and related expense 2,034 894 Stock-based compensation 576 257 Materials and subcontractors 1,030 655 Depreciation 163 39 Travel expenses 73 - Vehicle expenses 75 26 Rent and maintenance and other expenses 246 131 Research and Development expenses 4,197 2,002

GENERAL AND ADMINISTRATIVE EXPE

GENERAL AND ADMINISTRATIVE EXPENSES	12 Months Ended
	Dec. 31, 2022
General And Administrative Expenses
GENERAL AND ADMINISTRATIVE EXPENSES	NOTE 13 – GENERAL AND ADMINISTRATIVE EXPENSES SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Salaries and related expense 1,027 1,144 Stock-based compensation 903 1,483 Professional services 859 1,193 Patents 292 798 Depreciation 34 29 Insurance 337 386 Vehicle expenses 73 99 Rent and maintenance and other expenses 181 120 VAT provision (note 7e) (129 ) 229 General and Administrative expenses 3,577 5,481

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 - SUBSEQUENT EVENTS On March 16, 2023, the Company consummated Stock Purchase Agreements for a private placement with (i) Moshe Arkin through his individual retirement account and (ii) The Phoenix Insurance Company Ltd. and Shotfut Menayot Israel – Phoenix Amitim, in connection with the sale and issuance of an aggregate amount of 3,294,117 4.25 14,000,000 0.001 5.50

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of preparation	a. Basis of preparation The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) applied on a consistent basis.
Use of estimates	b. 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 its assumptions on an ongoing basis, including those related to contingencies and inventory impairment, as well as estimates used in applying its revenue recognition policy. Actual results may differ from these estimates.
Functional currency	c. Functional currency A majority of ScoutCam’s revenues are generated in U.S. dollars. The substantial majority of ScoutCam costs are incurred in U.S. dollars and New Israeli Shekels (“NIS”). ScoutCam management believes that the U.S. dollar is the currency of the primary economic environment in which ScoutCam operates. Thus, the functional currency of ScoutCam is the U.S. dollar. Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Balances in non-U.S. dollar currencies are translated into U.S. dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-U.S. dollar transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i) for transactions exchange rates at transaction dates and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization) historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate.
Cash and Cash Equivalents	d. Cash and Cash Equivalents The Company considers as cash equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash.
Short-term bank deposits	e. Short-term bank deposits Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost which approximates fair market value. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES :
Accounts receivable	f. Accounts receivable Accounts receivable are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company estimates the collectability of its accounts receivable balances and adjusts its allowance for doubtful accounts accordingly. When revenue recognition criteria are not met for a sale transaction that has been billed, the Company does not recognize deferred revenues or the related account receivable. As of December 31, 2022 and 2021, no
Property and equipment	g. Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives. The annual depreciation rates are as follows: SCHEDULE OF PROPERTY AND EQUIPMENT ANNUAL DEPRECIATION RATES % Machinery and laboratory equipment 10 15 % Office furniture and equipment 10 % Computers and computer software 33 % Leasehold improvements Over the shorter of the lease term (including options if any) or useful life
Severance pay	h. Severance pay Israeli labor law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. Pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), all of the ScoutCam’s employees in Israel are entitled to a monthly contribution, at a rate of 8.33 The asset and the liability for severance pay presented in the balance sheets reflects employees that began employment prior to automatic application of Section 14. The severance pay liability of ScoutCam to its employees that began employment prior to automatic application of Section 14 is based upon the number of years of service and the latest monthly salary of such employees and is partly covered by regular deposits with recognized pension funds and deposits with severance pay funds. Under labor laws, these deposits are in the employees’ names and, subject to certain limitations, are the property of the employees. ScoutCam records the obligation as if it were payable at each balance sheet date on an undiscounted basis. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES :
Stock-Based Compensation	i. Stock-Based Compensation The Company measures and recognizes compensation expense for its equity classified stock-based awards granted under its plan based on estimated fair values on the grant dates. The Company calculates the estimated fair value of option awards on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires a number of assumptions, of which the most significant are the stock price volatility and the expected option term. The Company’s expected dividend rate is zero since the Company does not currently pay cash dividends on its stocks and does not anticipate doing so in the foreseeable future. Each of the above factors requires the Company to use judgment and make estimates in determining the percentages and time periods used for the calculation. If the Company were to use different percentages or time periods, the estimated fair value of option awards could be materially different. The Company recognizes stock-based compensation cost for option awards on an accelerated basis over the employee’s requisite service period, net of estimated forfeitures.
Inventories	j. Inventories Inventories include raw materials, inventory in process and finished products and are valued at the lower of cost or net realizable value. Inventories are stated at a lower of cost, determined by the first-in, first-out method, or market based on net realizable value . Costs of purchased raw materials and inventory in process include costs of design, raw materials, direct labor, other direct costs and fixed production overheads. The inventories are adjusted for estimated excess and obsolescence and written down to net realizable value based upon estimates of future demand, technology developments and market conditions.
Revenue recognition	k. Revenue recognition a) Revenue measurement The Company’s revenues are measured according to the ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, revenues are measured according to the amount of consideration that the Company expects to be entitled to receive in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenues are presented net of VAT. b) Revenue recognition The Company recognizes revenue when a customer obtains control over promised goods or services. For each performance obligation, the Company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time. Performance obligations are satisfied over time if one of the following criteria is met: SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance; (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (c) the Company’s performance does not create an asset with an alternative use for the Company and the Company has an enforceable right to payment for performance completed to date. If a performance obligation is not satisfied over time, a Company satisfies the performance obligation at a point in time. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Product Revenue Revenues from product sales are recognized at a point in time when the customer obtains control of the Company’s product, typically upon shipment to the customer. Indirect taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Service Revenue The Company also generates revenues from development services. Revenue from development services is recognized over the period of the applicable service contract. To the extent development services are not distinct from the performance obligation relating to the subsequent mass production phase of the prototype under development, revenue from these services is deferred until commencement of the production phase of the project and are then recognized over the expected term production. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES :
Cost of revenues	l. Cost of revenues Cost of revenue consists of products purchased from sub-contractors, raw materials for in-house assembly line, shipping and handling costs to customers, salary, employee-related expenses, depreciation and overhead expenses. Cost of revenues are expensed commensurate with the recognition of the respective revenues. Costs deferred in respect of deferral of revenues are recorded as contract fulfilment assets on the Company’s balance sheet and are written down to the extent the contract is expected to incur losses.
Research and development costs	m. Research and development costs Research and development costs are expensed as incurred and includes salaries and employee-related expenses, overhead expenses, material, and third-party contractors’ charges.
Income taxes	n. Income taxes Income taxes are accounted for using the asset and liability approach under ASC-740, “Income Taxes”. The asset and liability approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax liabilities and assets is based on provisions of the relevant tax law. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Uncertain tax positions are accounted for in accordance with the provisions of ASC 740-10, under which a company may recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxation authorities, based on the technical merits of the position, at the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties, if any, related to unrecognized tax benefits are recognized in tax expense.
Legal contingencies	o. Legal contingencies From time to time, the Company and its subsidiary become involved in legal proceedings or are subject to claims arising in their ordinary course of business. Such matters are generally subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when the loss is probable and can reasonably estimate the amount of any such loss. SCOUTCAM INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
Basic and diluted net loss per common stock	p. Basic and diluted net loss per common stock Basic net loss per common stock is computed by dividing net loss, as adjusted, to include the weighted average number of shares of common stock outstanding during the year. Diluted net loss per common stock is computed by dividing net loss, as adjusted, by the weighted average number of shares of common stock outstanding during the year, plus the number of shares of common stock that would have been outstanding if all potentially dilutive shares of common stock had been issued, using the treasury stock method, in accordance with ASC 260-10 “Earnings per Share”. All outstanding stock options and warrants have been excluded from the calculation of the diluted loss per share for the years ended December 31, 2022 and December 31, 2021, since all such securities have an anti-dilutive effect.
Leases	q. Leases In accordance with ASC 842, the Company determines whether an arrangement is or contains a lease based on the facts and circumstances present at inception of an arrangement. An arrangement is or contains a lease if the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Arrangements that are determined to be leases at inception are recognized in long-term right-of-use assets (“ROU”) assets and short and long-term lease liabilities in the consolidated balance sheet at lease commencement. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the economic environment at commencement date in determining the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases or payments are recognized on a straight-line basis over the lease term. The Company has elected not to recognize on the balance sheet leases with terms of 12 months or less.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT ANNUAL DEPRECIATION RATES	The annual depreciation rates are as follows: SCHEDULE OF PROPERTY AND EQUIPMENT ANNUAL DEPRECIATION RATES % Machinery and laboratory equipment 10 15 % Office furniture and equipment 10 % Computers and computer software 33 % Leasehold improvements Over the shorter of the lease term (including options if any) or useful life

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	SCHEDULE OF INVENTORY 2022 2021 December 31, 2022 2021 USD in thousands Raw materials and supplies 438 99 Work in progress 148 2 Finished goods 44 66 Inventory Net 630 167

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET	Property, plant and equipment, net consisted of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET 2022 2021 December 31, 2022 2021 USD in thousands Cost: Machinery and laboratory equipment 619 578 Leasehold improvements, office furniture and equipment 351 316 Computers and computer software 182 140 Total property and equipment, gross 1,152 1,034 Less: accumulated deprecation (504 ) (253 ) Total property and equipment, net 648 781

OTHER ACCRUED EXPENSES (Tables)

OTHER ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
SCHEDULE OF OTHER ACCRUED EXPENSES	SCHEDULE OF OTHER ACCRUED EXPENSES 2022 2021 December 31, 2022 2021 USD in thousands Internal Revenue Services - 40 Accrued expenses 214 170 Total other accrued expenses 214 210

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
SCHEDULE OF COMPONENT OF DEFERRED TAX ASSET	SCHEDULE OF COMPONENT OF DEFERRED TAX ASSET 2022 2021 December 31, 2022 2021 USD in thousands Operating loss carryforward 26,295 15,582 Net deferred tax asset before valuation allowance 6,069 3,595 Valuation allowance (6,069 ) (3,595 ) Net deferred tax - -

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
SCHEDULE OF BALANCES WITH RELATED PARTIES	a. Related Parties Balances: SCHEDULE OF BALANCES WITH RELATED PARTIES December 31, 2022 2021 USD in thousands Directors (directors’ accrued compensation) 48 - Smartec R&D Ltd. (see note 8c) 10 - Medigus - 39 58 39

EQUITY (Tables)

EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK	As of December 31, 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 Number of Shares March 2021 Warrant March 29, 2021 March 31, 2026 10.350 2,469,156 2,469,156
SCHEDULE OF STOCK OPTION ACTIVITY	The following summarizes stock option activity: SCHEDULE OF STOCK OPTION ACTIVITY Amount of options Weighted average exercise price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) $ $ in thousands Outstanding - December 31, 2020 737,049 2.61 6.23 2,446 Granted 648,712 4.09 - - Forfeited (132,207 ) 3.34 - - Outstanding - December 31, 2021 1,253,554 3.31 5.65 5,884 Granted 479,000 4.50 - - Forfeited (172,514 ) 3.57 - - Outstanding - December 31, 2022 1,560,040 3.64 5.17 2,116 Options Exercisable - December 31, 2022 838,994 3.10 4.24 1,595
SCHEDULE OF SHARE-BASED PAYMENT,STOCK OPTIONS, VALUATION ASSUMPTIONS	SCHEDULE OF SHARE-BASED PAYMENT,STOCK OPTIONS, VALUATION ASSUMPTIONS Year ended December 31, 2022 Year ended December 31, 2021 Underlying value of shares ($) 5.00 7.20 7.65 10.35 Exercise price ($) 4.5 2.61 7.2 Expected volatility (%) 40% 46% 49% Term of the options (years) 7 7 Risk-free interest rate (%) 1.98 3.95% 0.78% 1.51%
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
SCHEDULE OF STOCK OPTION ACTIVITY	The following table summarizes RSU activity for December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY Amount of RSU Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (years) $ Outstanding - December 31, 2021 - - - Granted 110,000 6.8 - Forfeited (60,000 ) 7.2 - Unvested and Outstanding - December 31, 2022 50,000 6.32 6.44

REVENUES AND ENTITY WIDE DISC_2

REVENUES AND ENTITY WIDE DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATION OF REVENUE	SCHEDULE OF DISAGGREGATION OF REVENUE Year ended on 2022 2021 USD in thousands Development Services (customer A) (*) 317 - Products 348 387 665 387 (*) During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 317 180 7 years In addition, following the commencement of the production phase, the Company recognized product revenues of $ 221 thousands during the year ended December 31, 2022 from the sale of units of the product developed in the context of these development services.
SCHEDULE OF REVENUES WITHIN GEOGRAPHIC AREAS	The following is a summary of revenues within geographic areas: SCHEDULE OF REVENUES WITHIN GEOGRAPHIC AREAS 2022 2021 Year ended on 2022 2021 USD in thousands United States 553 273 United Kingdom 65 48 Israel - 19 Other 47 47 Revenue 665 387
SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE	Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constituted at least 10% of total revenues in a certain year): SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE Year ended on December 31, 2022 2021 USD in thousands Customer A 538 - Customer B - 199 Customer C 65 48
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES	SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES 2022 2021 December 31, 2022 2021 USD in thousands Contract fulfillment assets: 1,495 1,675 Contract liabilities 3,644 2,420 The change in contract fulfillment assets: 2022 2021 December 31, 2022 2021 USD in thousands Balance at beginning of year 1,675 1,130 Additions during the year - 545 Contract costs recognized during the period (180 ) - Balance at end of year 1,495 1,675 The change in contract liabilities: 2022 2021 December 31, 2022 2021 USD in thousands Balance at beginning of year 2,420 848 Deferred revenue relating to new sales 1,613 1,641 Revenue recognized during the year (389 ) (69 ) Balance at end of year 3,644 2,420

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES	Supplemental cash flow information related to operating leases during the period presented was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 261 202
SCHEDULE OF LEASE TERM AND DISCOUNT RATE RELATED TO OPERATING LEASES	Lease term and discount rate related to operating leases as of the period presented were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE RELATED TO OPERATING LEASES December 31, 2022 2021 USD in thousands Weighted-average remaining lease term (in years) 0.84 0.76 Weighted-average discount rate 6 % 6 %
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES	The maturities of lease liabilities under operating leases as of December 31, 2022 are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES USD in thousands 2023 206 2024 54 2025 16 Total undiscounted lease payments 276 Less: Imputed interest (13 ) Total lease liabilities 263

RESEARCH AND DEVELOPMENT EXPE_2

RESEARCH AND DEVELOPMENT EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
Research and Development [Abstract]
SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES	SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Salaries and related expense 2,034 894 Stock-based compensation 576 257 Materials and subcontractors 1,030 655 Depreciation 163 39 Travel expenses 73 - Vehicle expenses 75 26 Rent and maintenance and other expenses 246 131 Research and Development expenses 4,197 2,002

GENERAL AND ADMINISTRATIVE EX_2

GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
General And Administrative Expenses
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES	SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES 2022 2021 Year ended December 31, 2022 2021 USD in thousands Salaries and related expense 1,027 1,144 Stock-based compensation 903 1,483 Professional services 859 1,193 Patents 292 798 Depreciation 34 29 Insurance 337 386 Vehicle expenses 73 99 Rent and maintenance and other expenses 181 120 VAT provision (note 7e) (129 ) 229 General and Administrative expenses 3,577 5,481

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($) $ in Thousands	Aug. 09, 2021	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stockholders' equity, reverse stock split	nine-to-one
Retained Earnings (Accumulated Deficit)		$ (24,762)	$ (15,294)

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT ANNUAL DEPRECIATION RATES (Details)	12 Months Ended
	Dec. 31, 2022
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment annual depreciation rates	10%
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment annual depreciation rates	15%
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment annual depreciation rates	10%
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment annual depreciation rates	33%
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, description	Over the shorter of the lease term (including options if any) or useful life

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Accounts receivable, allowance for credit loss	$ 0	$ 0
Monthly salary percentage	8.33%

SHORT-TERM DEPOSITS (Details Na

SHORT-TERM DEPOSITS (Details Narrative)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Interest rate	4%
Maturity term	12 months

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 438	$ 99
Work in progress	148	2
Finished goods	44	66
Inventory Net	$ 630	$ 167

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventory impairment	$ 0	$ 0

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 1,152	$ 1,034
Less: accumulated deprecation	(504)	(253)
Total property and equipment, net	648	781
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	619	578
Leasehold Improvements Office Furniture And Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	351	316
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 182	$ 140

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 251	$ 114

SCHEDULE OF OTHER ACCRUED EXPEN

SCHEDULE OF OTHER ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Internal Revenue Services		$ 40
Accrued expenses	214	170
Total other accrued expenses	$ 214	$ 210

SCHEDULE OF COMPONENT OF DEFERR

SCHEDULE OF COMPONENT OF DEFERRED TAX ASSET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Operating loss carryforward	$ 26,295	$ 15,582
Net deferred tax asset before valuation allowance	6,069	3,595
Valuation allowance	(6,069)	(3,595)
Net deferred tax

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) ₪ in Thousands, $ in Thousands			1 Months Ended		12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2021 ILS (₪)	Jul. 31, 2022 USD ($)	Jul. 31, 2022 ILS (₪)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Operating Loss Carryforwards [Line Items]
Valuation allowance	$ 3,595				$ 6,069	$ 3,595
Accumulated tax loss carryforward	15,582				26,295	15,582
Income tax expense (benefit)
General and Administrative Expense [Member]
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)						$ 229
Israel Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)			$ 100
Israel Tax Authority [Member] | Agreement [Member]
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit) | ₪				₪ 340
Israel Tax Authority [Member] | Tax Year 2021 [Member]
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 229	₪ 740
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate					23%
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate					21%

SCHEDULE OF BALANCES WITH RELAT

SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Balances with related parties	$ 58	$ 39
Directors [Member]
Related Party Transaction [Line Items]
Balances with related parties	48
Smartec R and D Ltd [Member]
Related Party Transaction [Line Items]
Balances with related parties	10
Medigus Ltd [Member]
Related Party Transaction [Line Items]
Balances with related parties		$ 39

RELATED PARTIES (Details Narrat

RELATED PARTIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	12 Months Ended
	May 18, 2020	Mar. 03, 2020	Dec. 31, 2019	Dec. 31, 2022	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Compensation expense				$ 117	$ 82
Consulting expense					$ 37
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Issuance of units	229,569	108,880	379,269
Issuance of unit, price per unit	$ 8.712	$ 8.712	$ 8.712

SCHEDULE OF STOCK WARRANTS OUTS

SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK (Details)	12 Months Ended
	Dec. 31, 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 STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, Outstanding at beginning of period	1,253,554	737,049
Weighted average exercise price, Outstanding at beginning of period	$ 3.31	$ 2.61
Weighted average remaning contractual term (years) beginning of the period			6 years 2 months 23 days
Aggregate Intrinsic Value, Outstanding at beginning of period	$ 5,884	$ 2,446
Options, outstanding, granted	479,000	648,712
Weighted average exercise price, Granted	$ 4.50	$ 4.09
Options, outstanding, cancelled	(172,514)	(132,207)
Weighted average exercise price, Cancelled	$ 3.57	$ 3.34
Weighted average remaning contractual term (years)	5 years 2 months 1 day	5 years 7 months 24 days
Options, Outstanding at ending of period	1,560,040	1,253,554	737,049
Weighted average exercise price, Outstanding at end of period	$ 3.64	$ 3.31	$ 2.61
Aggregate Intrinsic Value, Outstanding at end of period	$ 2,116	$ 5,884	$ 2,446
Options, Exercisable at end of period	838,994
Weighted average exercise price, Exercisable at end of period	$ 3.10
Weighted average remaning contractual term (years) exercisable at end of the period	4 years 2 months 26 days
Aggregate Intrinsic Value, Exercisable at end of period	$ 1,595
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, Outstanding at beginning of period
Options, outstanding, granted	110,000
Options, outstanding, cancelled	(60,000)
Options, Outstanding at ending of period	50,000
Weighted average grant date fair value per share, begining of period
Weighted average grant date fair value per share, granted	6.8
Weighted average grant date fair value per share,vested	7.2
Weighted average grant date fair value per share, unvested and outstanding ending balance	$ 6.32
Weighted average grant date fair value per share, unvested and outstanding ending balance	6 years 5 months 8 days

SCHEDULE OF SHARE-BASED PAYMENT

SCHEDULE OF SHARE-BASED PAYMENT,STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Exercise price	$ 4.5
Term of the options (years)	7 years	7 years
Minimum [Member]
Underlying value of ordinary shares	$ 5	$ 7.65
Exercise price		$ 2.61
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum		46%
Risk-free interest rate minimum	1.98%	0.78%
Maximum [Member]
Underlying value of ordinary shares	$ 7.20	$ 10.35
Exercise price		$ 7.2
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum		49%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum	40%
Risk-free interest rate maximum	3.95%	1.51%

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 23, 2021

Mar. 29, 2021

Jun. 23, 2020

Jun. 22, 2020

May 18, 2020

Mar. 15, 2020

Mar. 03, 2020

Nov. 30, 2021

Jun. 30, 2021

Feb. 28, 2021

Feb. 29, 2020

Dec. 31, 2019

Jun. 30, 2021

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Jan. 20, 2021

Subsidiary, Sale of Stock [Line Items]

Common stock shares authorized

300,000,000

300,000,000

Common stock, par value

$ 0.001

$ 0.001

Proceeds from exercise of warrants

$ 3,491,000

Share based compensation arrangement Options grants in period gross

479,000

648,712

Weighted average exercise price

$ 4.50

$ 4.09

Expenses recorded regarding

$ 576,000

$ 257,000

Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Purchased for Award

90,000

Compensation expense

$ 1,638,000

$ 2,030,000

Share-based compensation arrangement by share-based payment award, options, vested in period, fair value

$ 127,000

Share-Based Payment Arrangement, Option [Member]

Subsidiary, Sale of Stock [Line Items]

Option to purchase

75,855

Share-Based Payment Arrangement, Option [Member] | Prof Goldwasser [Member]

Subsidiary, Sale of Stock [Line Items]

Option to purchase

45,000

83,334

Expenses recorded regarding

$ 367,000

$ 255,000

Equity Option [Member]

Subsidiary, Sale of Stock [Line Items]

Weighted average exercise price

$ 2.76

Stock option award cost not yet recognized

$ 1,450,000

Stock option award weighted average period

1 year 4 months 28 days

Restricted Stock Units (RSUs) [Member]

Subsidiary, Sale of Stock [Line Items]

Share based compensation arrangement Options grants in period gross

110,000

Share-based compensation arrangement by share-based payment award, options, vested in period, fair value

$ 748,000

Share-based compensation arrangement by share-based payment award, options, vested in period, fair value

$ 164,000

Estimated average period

1 year 1 month 24 days

2020 Share Incentive Plan [Member]

Subsidiary, Sale of Stock [Line Items]

Share based compensation arrangement Options grants in period gross

479,000

648,712

Stock option vested term

7 years

2020 Share Incentive Plan [Member] | Minimum [Member]

Subsidiary, Sale of Stock [Line Items]

Stock option vested term

3 years

2020 Share Incentive Plan [Member] | Maximum [Member]

Subsidiary, Sale of Stock [Line Items]

Stock option vested term

4 years

Letter Agreement [Member] | Medigus Ltd [Member]

Subsidiary, Sale of Stock [Line Items]

Conversion price

$ 4.356

Warrant A [Member]

Subsidiary, Sale of Stock [Line Items]

Warrant exercisable, shares

1

1

1

1

Warrant exerise price per share

$ 5.355

$ 5.355

$ 5.355

$ 5.355

Warrants and rights outstanding, term

12 months

18 months

12 months

Proceeds from exercise of warrants

$ 45,000

$ 53,000

Number of warrants exercised

192,220

43,749

37,349

185,271

108,880

332,551

Number of unexercised warrants

46,718

Warrants and rights outstanding, maturity date

Dec. 30, 2020

Warrant A [Member] | Letter Agreement [Member] | Medigus Ltd [Member]

Subsidiary, Sale of Stock [Line Items]

Warrant exercisable, shares

43,749

Warrant B [Member]

Subsidiary, Sale of Stock [Line Items]

Warrant exercisable, shares

1,000

1

1

1

Warrant exerise price per share

$ 8.037

$ 8.037

$ 8.037

$ 8.037

Warrants and rights outstanding, term

18 months

24 months

18 months

18 months

Number of warrants exercised

185,271

Number of unexercised warrants

87,497

573,256

217,760

Warrants and rights outstanding, maturity date

Jun. 30, 2021

Jun. 30, 2021

Sep. 03, 2021

Warrant B [Member] | Letter Agreement [Member] | Medigus Ltd [Member]

Subsidiary, Sale of Stock [Line Items]

Warrant exercisable, shares

87,497

Warrant [Member]

Subsidiary, Sale of Stock [Line Items]

Sale of stock, description

Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below)

Proceeds from issuance of securities offered

$ 2,000,000

$ 948,000

Proceeds from issuance after deducting issuance costs

$ 1,900,000

$ 909,000

Common Stock [Member] | Letter Agreement [Member] | Medigus Ltd [Member]

Subsidiary, Sale of Stock [Line Items]

Number of shares conversion

$ 381,136

Number of shares issued

87,497

Private Placement [Member]

Subsidiary, Sale of Stock [Line Items]

Stock issued during period, shares, new issues

229,569

108,880

379,269

Shares issued, price per share

$ 8.712

$ 8.712

$ 8.712

Sale of stock, description

Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below)

Each unit was comprised of two shares of common stock par value $0.001 per share, one Warrant A (as described below) and two Warrants B (as described below)

Proceeds from Issuance of Private Placement

$ 3,300,000

Board of Directors [Member]

Subsidiary, Sale of Stock [Line Items]

Common stock shares authorized

225,000,000

Common stock, par value

$ 0.001

Board of Directors [Member] | 2020 Share Incentive Plan [Member]

Subsidiary, Sale of Stock [Line Items]

Share based compensation arrangement Options grants in period gross

64,099

Consultant [Member]

Subsidiary, Sale of Stock [Line Items]

Warrant exercise price percentage

3%

Proceeds from exercise of warrants

$ 2,000,000

$ 2,000,000

Exercise of warrants required to invest return for shares of common stock

250,000

Exercise of warrants required to invest return for shares of common stock

250,000

Investment C [Member]

Subsidiary, Sale of Stock [Line Items]

Stock issued during period, shares, new issues

2,469,156

Investors C [Member]

Subsidiary, Sale of Stock [Line Items]

Sale of stock, description

Each such unit consists of (i) one share of common stock and (ii) one warrant to purchase one share of common stock with an exercise price of $10.35 per share

Warrant exerise price per share

$ 10.35

Warrants and rights outstanding, maturity date

Mar. 31, 2026

Proceeds from issuance of common stock

$ 20,000,000

Common stock percent

135%

Employees, Consultants, Directors and Other Service Providers [Member] | 2020 Share Incentive Plan [Member]

Subsidiary, Sale of Stock [Line Items]

Share based compensation arrangement Options grants in period gross

401,950

580,890

777,778

Board of Directors Chairman [Member] | Share-Based Payment Arrangement, Option [Member]

Subsidiary, Sale of Stock [Line Items]

Expenses recorded regarding

$ 213,000

221,000

Officer [Member]

Subsidiary, Sale of Stock [Line Items]

Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Purchased for Award

400,000

Employee and Directors [Member]

Subsidiary, Sale of Stock [Line Items]

Compensation expense

$ 1,487,000

$ 2,030,000

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenues		$ 665	$ 387
Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	[1]	317
Product [Member]
Disaggregation of Revenue [Line Items]
Revenues		$ 348	$ 387
[1]During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 317 180 7 years

SCHEDULE OF DISAGGREGATION OF_2

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenues from development services		$ 1,631	$ 1,108
Estimated useful life		7 years
Service [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenues from development services		$ 317
Related Development Costs [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenues from development services		180
Product [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenues from development services		$ 221
Customer A [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Development expense	$ 500

SCHEDULE OF REVENUES WITHIN GEO

SCHEDULE OF REVENUES WITHIN GEOGRAPHIC AREAS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 665	$ 387
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue	553	273
UNITED KINGDOM
Disaggregation of Revenue [Line Items]
Revenue	65	48
ISRAEL
Disaggregation of Revenue [Line Items]
Revenue		19
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 47	$ 47

SCHEDULE OF MAJOR CUSTOMER BREA

SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 665	$ 387
Customer A [Member]
Disaggregation of Revenue [Line Items]
Revenues	538
Customer B [Member]
Disaggregation of Revenue [Line Items]
Revenues		199
Customer C [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 65	$ 48

SCHEDULE OF CONTRACT FULFILLMEN

SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract fulfillment assets:	$ 1,495	$ 1,675
Contract liabilities	3,644	2,420
Balance at beginning of year	1,675	1,130
Additions during the year		545
Contract costs recognized during the period	(180)
Balance at end of year	1,495	1,675
Balance at beginning of year	2,420	848
Deferred revenue relating to new sales	1,613	1,641
Revenue recognized during the year	(389)	(69)
Balance at end of year	$ 3,644	$ 2,420

REVENUES AND ENTITY WIDE DISC_3

REVENUES AND ENTITY WIDE DISCLOSURES (Details Narrative) $ in Thousands	Dec. 31, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 3,644

SCHEDULE OF SUPPLEMENTAL CASH F

SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases
Operating cash flows from operating leases	$ 261	$ 202

SCHEDULE OF LEASE TERM AND DISC

SCHEDULE OF LEASE TERM AND DISCOUNT RATE RELATED TO OPERATING LEASES (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases
Weighted-average remaining lease term (in years)	10 months 2 days	9 months 3 days
Weighted-average discount rate	6%	6%

SCHEDULE OF MATURITIES LEASE LI

SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
2023	$ 206
2024	54
2025	16
Total undiscounted lease payments	276
Less: Imputed interest	(13)
Total lease liabilities	$ 263	$ 459

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Thousands		12 Months Ended
	Jan. 02, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease, right-of-use asset		$ 307	$ 482
Operating lease, liability		263	459
Operating lease, payments		261	202
Sublease income		3
Operating lease expense		$ 264	$ 202
Lease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lessee, operating lease, description		In December 2022, ScoutCam entered into a lease agreement for office space in Ramat Gan, Israel. The agreement is for 12 months beginning on December 14, 2022.		In December 2020, ScoutCam entered into a lease agreement for office space in Omer, Israel. The agreement is for 36 months beginning January 1, 2021
Operating lease, payments	$ 12
Sublease income	$ 3

SCHEDULE OF RESEARCH AND DEVELO

SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Research and Development [Abstract]
Salaries and related expense	$ 2,034	$ 894
Stock-based compensation	576	257
Materials and subcontractors	1,030	655
Depreciation	163	39
Travel expenses	73
Vehicle expenses	75	26
Rent and maintenance and other expenses	246	131
Research and Development expenses	$ 4,197	$ 2,002

SCHEDULE OF GENERAL AND ADMINIS

SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
General And Administrative Expenses
Salaries and related expense	$ 1,027	$ 1,144
Stock-based compensation	903	1,483
Professional services	859	1,193
Patents	292	798
Depreciation	34	29
Insurance	337	386
Vehicle expenses	73	99
Rent and maintenance and other expenses	181	120
VAT provision (note 7e)	(129)	229
General and Administrative expenses	$ 3,577	$ 5,481

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Mar. 16, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Common stock par value, per share		$ 0.001	$ 0.001
Stock Purchase Agreements [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Issuance of units	3,294,117
Purchase price	$ 4.25
Aggregate purchase price	$ 14,000,000
Stock Purchase Agreements [Member] | Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Common stock par value, per share	$ 0.001
Stock Purchase Agreements [Member] | Subsequent Event [Member] | Warrant [Member]
Subsequent Event [Line Items]
Exercise price	$ 5.50
Warrant exercisable term	3 years