Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-188920 | |
Entity Registrant Name | ODYSIGHT.AI INC. | |
Entity Central Index Key | 0001577445 | |
Entity Tax Identification Number | 47-4257143 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Suite 7A | |
Entity Address, Address Line Two | Industrial Park | |
Entity Address, Address Line Three | P.O. Box 3030 | |
Entity Address, City or Town | Omer | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 8496500 | |
City Area Code | 972 | |
Local Phone Number | 73 370-4690 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,440,850 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 15,938 | $ 10,099 |
Short terms deposits | 3,569 | 3,047 |
Accounts receivable | 60 | |
Inventory | 782 | 630 |
Other current assets | 573 | 281 |
Total current assets | 20,862 | 14,117 |
NON-CURRENT ASSETS: | ||
Contract fulfillment assets | 1,316 | 1,495 |
Property and equipment, net | 503 | 648 |
Operating lease right-of-use assets | 1,621 | 307 |
Severance pay asset | 254 | 328 |
Total non- current assets | 3,694 | 2,778 |
TOTAL ASSETS | 24,556 | 16,895 |
CURRENT LIABILITIES: | ||
Accounts payable | 293 | 297 |
Contract liabilities - short term | 950 | 1,426 |
Operating lease liabilities - short term | 528 | 199 |
Accrued compensation expenses | 761 | 365 |
Other accounts payable | 280 | 214 |
Total current liabilities | 2,864 | 2,559 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities - long term | 1,901 | 2,218 |
Operating lease liabilities - long term | 957 | 64 |
Liability for severance pay | 247 | 268 |
Other liabilities - long term | 28 | |
Total non-current liabilities | 3,133 | 2,550 |
TOTAL LIABILITIES | 5,997 | 5,109 |
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of September 30, 2023 and December 31, 2022, 10,440,850 and 7,121,737 shares issued and outstanding as of September 30, 2023 and December 31, 2022 , respectively | 10 | 7 |
Additional paid-in capital | 51,415 | 36,541 |
Accumulated deficit | (32,866) | (24,762) |
TOTAL SHAREHOLDERS’ EQUITY | 18,559 | 11,786 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 24,556 | 16,895 |
Related Party [Member] | ||
CURRENT LIABILITIES: | ||
Related parties | $ 52 | $ 58 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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 | 10,440,850 | 7,121,737 |
Common stock, shares outstanding | 10,440,850 | 7,121,737 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
REVENUES | $ 110 | $ 134 | $ 1,087 | $ 506 |
COST OF REVENUES | 321 | 430 | 1,648 | 1,279 |
GROSS LOSS | (211) | (296) | (561) | (773) |
RESEARCH AND DEVELOPMENT EXPENSES | 1,354 | 1,048 | 4,107 | 3,023 |
SALES AND MARKETING EXPENSES | 208 | 171 | 877 | 617 |
GENERAL AND ADMINISTRATIVE EXPENSES | 1,099 | 810 | 3,225 | 3,262 |
OPERATING LOSS | (2,872) | (2,325) | (8,770) | (7,675) |
OTHER INCOME | 8 | 10 | 23 | |
FINANCING INCOME (EXPENSES), NET | 330 | 73 | 656 | (152) |
NET LOSS | $ (2,542) | $ (2,244) | $ (8,104) | $ (7,804) |
Net loss per ordinary share basic | $ (0.24) | $ (0.32) | $ (0.86) | $ (1.10) |
Net loss per ordinary share diluted | $ (0.24) | $ (0.32) | $ (0.86) | $ (1.10) |
Weighted average ordinary shares basic | 10,439 | 7,122 | 9,395 | 7,122 |
Weighted average ordinary shares diluted | 10,439 | 7,122 | 9,395 | 7,122 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | ||
Balance at Dec. 31, 2021 | $ 7 | $ 34,903 | $ (15,294) | $ 19,616 | ||
Balance, shares at Dec. 31, 2021 | 7,122 | |||||
Stock based compensation | 1,916 | 1,916 | ||||
Net loss | (7,804) | (7,804) | ||||
Balance at Sep. 30, 2022 | $ 7 | 36,819 | (23,098) | 13,728 | ||
Balance, shares at Sep. 30, 2022 | 7,122 | |||||
Balance at Jun. 30, 2022 | $ 7 | 36,360 | (20,854) | 15,513 | ||
Balance, shares at Jun. 30, 2022 | 7,122 | |||||
Stock based compensation | 459 | 459 | ||||
Net loss | (2,244) | (2,244) | ||||
Balance at Sep. 30, 2022 | $ 7 | 36,819 | (23,098) | 13,728 | ||
Balance, shares at Sep. 30, 2022 | 7,122 | |||||
Balance at Dec. 31, 2022 | $ 7 | 36,541 | (24,762) | 11,786 | ||
Balance, shares at Dec. 31, 2022 | 7,122 | |||||
Stock based compensation | 1,056 | 1,056 | ||||
Issuance of shares upon RSU vesting | [1] | [1] | ||||
Issuance of shares upon RSU vesting, shares | 25 | |||||
Issuance of shares and warrants | $ 3 | 13,818 | 13,821 | |||
Issuance of shares and warrants, shares | 3,294 | |||||
Net loss | (8,104) | (8,104) | ||||
Balance at Sep. 30, 2023 | $ 10 | 51,415 | (32,866) | 18,559 | ||
Balance, shares at Sep. 30, 2023 | 10,441 | |||||
Balance at Jun. 30, 2023 | $ 10 | 51,110 | (30,324) | 20,796 | ||
Balance, shares at Jun. 30, 2023 | 10,437 | |||||
Stock based compensation | 371 | 371 | ||||
Issuance of shares upon RSU vesting | [1] | [1] | ||||
Issuance of shares upon RSU vesting, shares | 4 | |||||
Net loss | (2,542) | (2,542) | ||||
Issuance expenses | (66) | (66) | ||||
Balance at Sep. 30, 2023 | $ 10 | $ 51,415 | $ (32,866) | $ 18,559 | ||
Balance, shares at Sep. 30, 2023 | 10,441 | |||||
[1]Represents an amount less than $1 thousand |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (2,542) | $ (2,244) | $ (8,104) | $ (7,804) |
Adjustments to reconcile net loss to net cash used in operations: | ||||
Depreciation | 47 | 57 | 239 | 160 |
Stock based compensation | 371 | 459 | 1,056 | 1,916 |
Severance pay asset and liability | (1) | 53 | 51 | |
Profit from exchange differences from operating lease liability | (56) | (2) | (78) | (52) |
Loss (Profit) from exchange differences on cash and cash equivalents | 11 | (26) | 64 | 301 |
Interest income in respect of deposits | 167 | (43) | (22) | (66) |
CHANGES IN OPERATING ASSET AND LIABILITY ITEMS: | ||||
Decrease (increase) in accounts receivable | 158 | 84 | 60 | (7) |
Increase in inventory | (58) | (43) | (152) | (485) |
Decrease (increase) in other current assets | 95 | 138 | (292) | 171 |
Decrease in contract fulfillment assets | 60 | 60 | 179 | 120 |
Decrease in ROU asset | 117 | 78 | 211 | 210 |
Increase (decrease) in account payables | (481) | 57 | (4) | 263 |
Increase (decrease) in contract liabilities | (110) | (102) | (793) | 1,333 |
Decrease in operating lease liability | (115) | (58) | (225) | (183) |
Increase (decrease) in accrued compensation expenses | 307 | (24) | 396 | (3) |
Increase (decrease) in related parties | 5 | 45 | (6) | 28 |
Increase (decrease) in other account payable | (230) | (145) | 80 | (60) |
Net cash flows used in operating activities | (2,255) | (1,709) | (7,338) | (4,107) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of property and equipment | (37) | (45) | (94) | (87) |
Withdrawal of short terms deposits | 15,000 | 18,000 | 5,000 | |
Investment in short term deposits | (3,000) | (18,500) | (6,500) | |
Net cash flows provided by (used in) investing activities | 14,963 | (3,045) | (594) | (1,587) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from issuance of shares and warrants | (78) | 13,835 | ||
Net cash flows provided by (used in) financing activities | (78) | 13,835 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,630 | (4,754) | 5,903 | (5,694) |
LOSS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | (11) | (26) | (64) | (301) |
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 3,319 | 7,314 | 10,099 | 8,581 |
BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 15,938 | 2,586 | 15,938 | 2,586 |
Non cash activities | ||||
Change in unpaid issuance expenses | (12) | 14 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 1,112 | 37 | 1,577 | 118 |
Termination of right-of-use assets in exchange for cancellation of operating lease obligations | $ (27) | $ (65) | $ (52) | $ (65) |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1 – GENERAL a Odysight.ai.Inc (the “Company”), formerly known as ScoutCam Inc., 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”. On June 5, 2023, the Company filed with the Nevada Secretary of State a Certificate of Amendment to the Registrant’s Articles of Incorporation to change its name from “ScoutCam Inc.” to “Odysight.ai Inc.”, effective June 5, 2023. The Company’s wholly owned subsidiary, Odysight.ai Ltd (“Odysight.ai”.), formerly known as ScoutCam Ltd., 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 Odysight.ai consummated an asset transfer agreement, under which Medigus transferred and assigned certain assets and intellectual property rights related to its miniaturized imaging business to Odysight.ai. On December 30, 2019, the Company and Medigus consummated a securities exchange agreement (the “Exchange Agreement”), pursuant to which Medigus delivered 100 60 During 2020-2023 Medigus has decreased its holdings in the Company such that as of March 31, 2023, Medigus owned 18.45 % of the Company’s outstanding common stock. On June 1, 2023, Medigus sold all its holdings in the Company to existing shareholders and to Chairman of the Board and CEO of the Company. The Company, through Odysight.ai, provides image-based platforms. Through the use of its proprietary visualization technology, Odysight.ai offers solutions across predictive maintenance and condition-based monitoring markets, in sectors such as energy, automotive and aviation. Odysight.ai’s solutions are based on small and highly resilient cameras, specialized AI analysis and supplementary technologies. Some of the Company’s products utilize micro visualization technology in medical devices for minimally invasive medical procedures. ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – GENERAL b. Since incorporation of Odysight.ai and through September 30, 2023, the Company accumulated a deficit of approximately $ 32.9 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES a. Unaudited Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Group’s Annual Report on Form 10-K for the year ended December 31, 2022. b. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. c. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, inventory impairment, stock-based compensation, as well as in estimates used in applying the revenue recognition policy. Actual results may differ from those estimates. ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES d. Significant Accounting Policies The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements. e. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s condensed consolidated financial statements. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
LEASES | NOTE 3 – LEASES a. Omer office space In December 2020, Odysight.ai entered into a lease agreement for office space in Omer, Israel (“original space”), with the 36-month term for such agreement beginning on January 1, 2021. In March 2021, Odysight.ai entered into a lease agreement for additional office space in Omer, Israel (“additional space”), with the term for such agreement is ending December 31, 2023. On June 25, 2023, Odysight.ai entered into an amendment to these agreements, pursuant to which the lease for the additional space will be shortened and end on June 30, 2023 and the lease for the original space will be extended for an additional five years until December 31, 2028. It was also agreed that Odysight.ai has an option to terminate the agreement for the original space after three years. Monthly lease payments under the agreement for the original space are approximately $ 7 b. Ramat Gan office space In December 2022, Odysight.ai entered into a lease agreement for office space in Ramat Gan, Israel. The agreement is for 12 months beginning on December 14, 2022 and the Company has an option to extend the lease period for an additional one year. The Company does not expect to extend the lease period. Therefore, the Company has elected to use the practical expedient regarding short-term leases. 3 In May 2023, Odysight.ai entered into an additional lease agreement for office space in Ramat Gan, Israel. The agreement is for 48 months beginning on July 1, 2023 and the Company has an option to extend the lease period for an additional two years. The Company does not currently expect to extend the lease period. 24 Odysight.ai subleases part of the additional office space in Ramat Gan to a third party for approximately $ 7 Supplemental cash flow information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Unaudited USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 262 203 143 67 As of September 30, 2023, the Company’s operating leases had a weighted average remaining lease term of 0.89 6 Future lease payments under operating leases as of September 30, 2023 were as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2023 138 2024 542 2025 502 2026 382 2027 148 Total future lease payments 1,712 Less imputed interest (227 ) Total lease liability balance 1,485 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 4 – EQUITY a. Private Placement On March 16, 2023, the Company consummated a 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 aggregated amount of 3,294,117 4.25 14,000,000 0.001 5.50 three years Warrants: As of September 30, 2023, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Number of Shares of Exercise Price common stock Issuance Expiration Per Share Underlying Warrant Date Date ($) Warrants March 2021 Warrant March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrant March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY b. Stock-based compensation to employees, directors and service providers: In February 2020, the Company’s Board of Directors approved the 2020 Share Incentive Plan (the “Plan”). The Plan initially included a pool of 580,890 64,099 401,950 777,778 1,000,000 The Plan is designed to enable the Company to grant options to purchase shares of common stock and RSUs under various and different tax regimes including, without limitation: (i) pursuant and subject to Section 102 of the Israeli Tax Ordinance or any provision which may amend or replace it and any regulations, rules, orders or procedures promulgated thereunder and to designate them as either grants made through a trustee or not through a trustee; and (ii) pursuant and subject to Section 3 (i) of the Israeli Tax Ordinance. Stock option activity During the nine months ended September 30, 2023, the Company granted 684,000 The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS Nine months ended September 30, 2023 Underlying value of ordinary shares ($) 2.95 5.00 Exercise price ($) 3.0 4.5 Expected volatility (%) 37.39 37.50 Term of the options (years) 7 Risk-free interest rate 3.94 4.47 The cost of the benefit embodied in the options granted during the nine months ended September 30, 2023, based on their fair value as of the grant date, is estimated to be approximately $ 1,028 The following table summarizes stock option activity for the nine months ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2023 Weighted average Amount of exercise options price $ Outstanding at beginning of period 1,560,040 3.64 Granted 684,000 3.13 Fortfeited (29,117 ) 3.78 Outstanding at end of period 2,214,923 3.48 Vested at end of period 993,487 3.21 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY Restricted stock unit (“RSU”) activity 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 following table summarizes RSU activity for the nine months ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2023 Weighted Average Amount of Grant Date Fair Value RSUs per Share $ Outstanding at beginning of period 50,000 6.32 Granted 25,000 3.20 Fortfeited (7,501 ) 7.20 Vested (24,996 ) 6.32 Unvested and Outstanding at end of period 42,503 4.33 The following table sets forth the total stock-based payment expenses resulting from options and RSU granted, included in the statements of operation and comprehensive income: SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Unaudited USD in thousands Cost of revenues 11 37 6 (11 ) Research and development 323 442 58 131 Sales and marketing expenses 83 134 21 35 General and administrative 639 1,303 286 304 Total expenses 1,056 1,916 371 459 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 5 – REVENUES Disaggregation of revenue SCHEDULE OF DISAGGREGATION OF REVENUE Nine months ended Three months ended September 30, 2023 September 30, 2023 2023 2022 2023 2022 USD in thousands USD in thousands Development Services ( * 317 211 105 105 Products 770 295 5 29 Revenue 1,087 506 110 134 (*) During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 multinational healthcare corporation and moved from the development phase of the project to its production phase. As a result, during the nine months ended September 2023, the Company recognized development services revenues and related development costs that had been previously deferred, in the amount of $ 317 seven years In addition, following the commencement of the production phase, the Company recognized product revenues of $ 722 Contract fulfillment assets and Contract liabilities: The Company’s contract fulfillment assets and contract liabilities as of September 30, 2023 and December 31, 2022 were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES September 30, December 31, 2023 2022 USD in thousands Contract fulfillment assets 1,316 1,495 Contract liabilities 2,851 3,644 Contract liabilities include deferred service revenue and advance payment. The change in contract fulfillment assets: September 30, December 31, 2023 2022 USD in thousands Balance at beginning of the period 1,495 1,675 Contract costs recognized during the period (179 ) (180 ) Balance at end of the period 1,316 1,495 The change in contract liabilities: September 30, December 31, 2023 2022 USD in thousands Balance at beginning of the period 3,644 2,420 Deferred revenue relating to new sales - 1,613 Revenue recognized during the period (793 ) (389 ) Balance at end of the period 2,851 3,644 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 invoiced and recognized as revenue in future periods. As of September 30, 2023, the total RPO amounted to $ 2.9 NOTE 6 – ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 6 - INVENTORY Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2023 2022 USD in thousands Raw materials and supplies 242 438 Work in progress 277 148 Finished goods 263 44 Inventory net 782 630 During the period ended September 30, 2023, no |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 7 – LOSS PER SHARE Basic loss per share is computed by dividing net loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares as described below. In computing the Company’s diluted loss per share, the numerator used in the basic loss per share computation is adjusted for the dilutive effect, if any, of the Company’s potential shares of common stock. The denominator for diluted loss per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 8 – RELATED PARTIES a. Balances with related parties SCHEDULE OF BALANCES WITH RELATED PARTIES September 30 , December 31, USD in thousands Directors (directors’ accrued compensation) 43 48 Smartec R&D Ltd. (see b below) 9 10 Related parties 52 58 b. During nine months ended September 30, 2023 the Company received development services from Smartec R&D Ltd., a company owned by the Company’s CTO. Total compensation during the nine months ended September 30, 2023 and September 30, 2022 were approximately $ 29 87 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 - COMMITMENTS AND CONTINGENCIES On April 2023, the Company received approval from the Israel Innovation Authority (previously the Office of the Chief Scientist), (the “IIA”) to support and enhance the Company’s production line and capabilities in the next 24 months until April 2025. Pursuant to the agreement with the IIA relating to the program, the Company has to pay royalties of 3% to the IIA up to the amount IIA funding received and the accrued interest repayment of the grant is contingent upon the Company successfully completing its enhancement plans and generating sales from the enhancements preformed. During the three months ended September 30, 2023 grants of $ 50 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS On October 7, 2023, subsequent to the reporting period, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets, which led Israel to formally declare war on Hamas the next day. The war is ongoing as of the issuance date of these financial statements. At this stage, the Company does not expect substantial impact of the above-described events on its operations. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Statements | a. Unaudited Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Group’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Principles of Consolidation | b. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | c. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, inventory impairment, stock-based compensation, as well as in estimates used in applying the revenue recognition policy. Actual results may differ from those estimates. ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Significant Accounting Policies | d. Significant Accounting Policies The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements. |
Recent Accounting Pronouncements | e. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s condensed consolidated financial statements. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES | Supplemental cash flow information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Unaudited USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 262 203 143 67 |
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES | Future lease payments under operating leases as of September 30, 2023 were as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2023 138 2024 542 2025 502 2026 382 2027 148 Total future lease payments 1,712 Less imputed interest (227 ) Total lease liability balance 1,485 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK | As of September 30, 2023, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Number of Shares of Exercise Price common stock Issuance Expiration Per Share Underlying Warrant Date Date ($) Warrants March 2021 Warrant March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrant March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273 |
SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS | The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS Nine months ended September 30, 2023 Underlying value of ordinary shares ($) 2.95 5.00 Exercise price ($) 3.0 4.5 Expected volatility (%) 37.39 37.50 Term of the options (years) 7 Risk-free interest rate 3.94 4.47 |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table summarizes stock option activity for the nine months ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2023 Weighted average Amount of exercise options price $ Outstanding at beginning of period 1,560,040 3.64 Granted 684,000 3.13 Fortfeited (29,117 ) 3.78 Outstanding at end of period 2,214,923 3.48 Vested at end of period 993,487 3.21 |
SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES | The following table sets forth the total stock-based payment expenses resulting from options and RSU granted, included in the statements of operation and comprehensive income: SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Unaudited USD in thousands Cost of revenues 11 37 6 (11 ) Research and development 323 442 58 131 Sales and marketing expenses 83 134 21 35 General and administrative 639 1,303 286 304 Total expenses 1,056 1,916 371 459 |
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 the nine months ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2023 Weighted Average Amount of Grant Date Fair Value RSUs per Share $ Outstanding at beginning of period 50,000 6.32 Granted 25,000 3.20 Fortfeited (7,501 ) 7.20 Vested (24,996 ) 6.32 Unvested and Outstanding at end of period 42,503 4.33 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | SCHEDULE OF DISAGGREGATION OF REVENUE Nine months ended Three months ended September 30, 2023 September 30, 2023 2023 2022 2023 2022 USD in thousands USD in thousands Development Services ( * 317 211 105 105 Products 770 295 5 29 Revenue 1,087 506 110 134 (*) During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 multinational healthcare corporation and moved from the development phase of the project to its production phase. As a result, during the nine months ended September 2023, the Company recognized development services revenues and related development costs that had been previously deferred, in the amount of $ 317 seven years In addition, following the commencement of the production phase, the Company recognized product revenues of $ 722 |
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES | The Company’s contract fulfillment assets and contract liabilities as of September 30, 2023 and December 31, 2022 were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES September 30, December 31, 2023 2022 USD in thousands Contract fulfillment assets 1,316 1,495 Contract liabilities 2,851 3,644 Contract liabilities include deferred service revenue and advance payment. The change in contract fulfillment assets: September 30, December 31, 2023 2022 USD in thousands Balance at beginning of the period 1,495 1,675 Contract costs recognized during the period (179 ) (180 ) Balance at end of the period 1,316 1,495 The change in contract liabilities: September 30, December 31, 2023 2022 USD in thousands Balance at beginning of the period 3,644 2,420 Deferred revenue relating to new sales - 1,613 Revenue recognized during the period (793 ) (389 ) Balance at end of the period 2,851 3,644 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2023 2022 USD in thousands Raw materials and supplies 242 438 Work in progress 277 148 Finished goods 263 44 Inventory net 782 630 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF BALANCES WITH RELATED PARTIES | a. Balances with related parties SCHEDULE OF BALANCES WITH RELATED PARTIES September 30 , December 31, USD in thousands Directors (directors’ accrued compensation) 43 48 Smartec R&D Ltd. (see b below) 9 10 Related parties 52 58 b. During nine months ended September 30, 2023 the Company received development services from Smartec R&D Ltd., a company owned by the Company’s CTO. |
GENERAL (Details Narrative)
GENERAL (Details Narrative) - USD ($) $ in Thousands | Dec. 30, 2019 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Accumulated deficit | $ 32,866 | $ 24,762 | ||
Medigus [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Ownership percentage | 18.45% | |||
Medigus [Member] | Exchange Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Ownership percentage | 100% | |||
Percentage of exchange for shares issued and outstanding share capital | 60% |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases | ||||
Operating cash flows from operating leases | $ 143 | $ 67 | $ 262 | $ 203 |
SCHEDULE OF MATURITIES LEASE LI
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases | |
Remainder of 2023 | $ 138 |
2024 | 542 |
2025 | 502 |
2026 | 382 |
2027 | 148 |
Total future lease payments | 1,712 |
Less imputed interest | (227) |
Total lease liability balance | $ 1,485 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 31, 2023 | Dec. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Operating lease payments | $ 143 | $ 67 | $ 262 | $ 203 | ||||
Sublease income | $ 7 | |||||||
Operating lease, weighted average remaining lease term | 10 months 20 days | 10 months 20 days | ||||||
Operating lease, weighted average discount rate, percent | 6% | 6% | ||||||
Lease Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Operating lease description | Odysight.ai entered into an additional lease agreement for office space in Ramat Gan, Israel. The agreement is for 48 months beginning on July 1, 2023 and the Company has an option to extend the lease period for an additional two years. The Company does not currently expect to extend the lease period. | Odysight.ai entered into a lease agreement for office space in Ramat Gan, Israel. The agreement is for 12 months beginning on December 14, 2022 and the Company has an option to extend the lease period for an additional one year. The Company does not expect to extend the lease period. | In March 2021, Odysight.ai entered into a lease agreement for additional office space in Omer, Israel (“additional space”), with the term for such agreement is ending December 31, 2023. | Odysight.ai entered into a lease agreement for office space in Omer, Israel (“original space”), with the 36-month term for such agreement beginning on January 1, 2021. | ||||
Operating lease payments | $ 24 | $ 3 | $ 7 |
SCHEDULE OF STOCK WARRANTS OUTS
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK (Details) | 9 Months Ended |
Sep. 30, 2023 $ / 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 | $ 10.35 |
Number of shares of common stock underlying warrants | 2,469,156 |
Warrant March 2023 [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Warrant issuance date | Mar. 27, 2023 |
Warrant expiration date | Mar. 26, 2026 |
Warrant exercise price per share | $ / shares | $ 5.50 |
Number of shares of common stock underlying warrants | 3,294,117 |
Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Number of shares of common stock underlying warrants | 5,763,273 |
SCHEDULE OF SHARE-BASED PAYMENT
SCHEDULE OF SHARE-BASED PAYMENT, STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares | |
Term of the options (years) | 7 years |
Minimum [Member] | |
Underlying value of ordinary shares | $ 2.95 |
Exercise price | $ 3 |
Expected volatility rate | 37.39% |
Risk-free interest rate | 3.94% |
Maximum [Member] | |
Underlying value of ordinary shares | $ 5 |
Exercise price | $ 4.5 |
Expected volatility rate | 37.50% |
Risk-free interest rate | 4.47% |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options, Outstanding at beginning of period | shares | 1,560,040 |
Weighted average exercise price, Outstanding at beginning of period | $ / shares | $ 3.64 |
Options, outstanding, granted | shares | 684,000 |
Weighted average exercise price, Granted | $ / shares | $ 3.13 |
Options, Cancelled | shares | (29,117) |
Weighted average exercise price, Cancelled | $ / shares | $ 3.78 |
Options, Outstanding at ending of period | shares | 2,214,923 |
Weighted average exercise price, Outstanding at end of period | $ / shares | $ 3.48 |
Options, outstanding, vested | shares | 993,487 |
Weighted average exercise price, Vested at end of period | $ / shares | $ 3.21 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options, Outstanding at beginning of period | shares | 50,000 |
Options, outstanding, granted | shares | 25,000 |
Weighted average grant date fair value per share, granted | $ / shares | $ 3.20 |
Options, Outstanding at ending of period | shares | 42,503 |
Weighted average grant date fair value per share, begining of period | $ / shares | $ 6.32 |
Options, outstanding, forfeited | shares | (7,501) |
Weighted average grant date fair value per share, forfeited | $ / shares | $ 7.20 |
Options, outstanding, vested | shares | (24,996) |
Weighted average grant date fair value per share,vested | $ / shares | $ 6.32 |
Weighted average grant date fair value per share, unvested and outstanding ending balance | $ / shares | $ 4.33 |
SCHEDULE OF TOTAL SHARE-BASED P
SCHEDULE OF TOTAL SHARE-BASED PAYMENT EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-based payment expenses | $ 371 | $ 459 | $ 1,056 | $ 1,916 |
Cost of Sales [Member] | ||||
Stock-based payment expenses | 6 | (11) | 11 | 37 |
Research and Development Expense [Member] | ||||
Stock-based payment expenses | 58 | 131 | 323 | 442 |
Selling and Marketing Expense [Member] | ||||
Stock-based payment expenses | 21 | 35 | 83 | 134 |
General and Administrative Expense [Member] | ||||
Stock-based payment expenses | $ 286 | $ 304 | $ 639 | $ 1,303 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 16, 2023 | Jun. 22, 2020 | Mar. 15, 2020 | Feb. 29, 2020 | Mar. 31, 2023 | Jun. 30, 2021 | Sep. 30, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Common stock par value, per share | $ 0.001 | $ 0.001 | ||||||
Options grant during the period | 684,000 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Options grant during the period | 25,000 | |||||||
Options grant date fair value | $ 1,028 | |||||||
2020 Share Incentive Plan [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Options grant during the period | 684,000 | |||||||
2020 Share Incentive Plan [Member] | Employees, Consultants, Directors and Other Service Providers [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Options grant during the period | 401,950 | 580,890 | ||||||
2020 Share Incentive Plan [Member] | Board of Directors [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Options grant during the period | 64,099 | 1,000,000 | 777,778 | |||||
Stock Purchase Agreements [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Issuance of units | 3,294,117 | |||||||
Purchase price | $ 4.25 | |||||||
Aggregate purchase price | $ 14,000,000 | |||||||
Stock Purchase Agreements [Member] | Common Stock [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Common stock par value, per share | $ 0.001 | |||||||
Stock Purchase Agreements [Member] | Warrant [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Exercise price | $ 5.50 | |||||||
Warrant exercisable term | 3 years |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 110 | $ 134 | $ 1,087 | $ 506 | |
Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 105 | 105 | 317 | 211 |
Product [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 5 | $ 29 | $ 770 | $ 295 | |
[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 multinational healthcare corporation and moved from the development phase of the project to its production phase. As a result, during the nine months ended September 2023, the Company recognized development services revenues and related development costs that had been previously deferred, in the amount of $ 317 seven years |
SCHEDULE OF DISAGGREGATION OF_2
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenues | $ 110 | $ 134 | $ 1,087 | $ 506 |
Estimated useful life | 7 years | 7 years | ||
Service [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenues | $ 317 | |||
Product [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenues | $ 722 |
SCHEDULE OF CONTRACT FULFILLMEN
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract fulfillment assets | $ 1,316 | $ 1,495 |
Contract liabilities | 2,851 | 3,644 |
Balance at beginning of the period | 1,495 | 1,675 |
Contract costs recognized during the period | (179) | (180) |
Balance at end of the period | 1,316 | 1,495 |
Balance at beginning of the period | 3,644 | 2,420 |
Deferred revenue relating to new sales | 1,613 | |
Revenue recognized during the period | (793) | (389) |
Balance at end of the period | $ 2,851 | $ 3,644 |
REVENUES (Details Narrative)
REVENUES (Details Narrative) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 2.9 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 242 | $ 438 |
Work in progress | 277 | 148 |
Finished goods | 263 | 44 |
Inventory net | $ 782 | $ 630 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Inventory Disclosure [Abstract] | |
Inventory impairment | $ 0 |
SCHEDULE OF BALANCES WITH RELAT
SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | $ 43 | $ 48 |
Smartec R&D Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | 9 | 10 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | $ 52 | $ 58 |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transactions [Abstract] | ||
Compensation expense | $ 29 | $ 87 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Royalties agreement description | Pursuant to the agreement with the IIA relating to the program, the Company has to pay royalties of 3% to the IIA up to the amount IIA funding received and the accrued interest repayment of the grant is contingent upon the Company successfully completing its enhancement plans and generating sales from the enhancements preformed. | |
Other cost of operating revenue | $ 50 |