Cover
Cover - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | 12,602,516 | |
Entity Listing, Par Value Per Share | $ 0.001 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 13,238 | $ 8,945 |
Restricted cash | 314 | |
Short terms deposits | 8,096 | |
Accounts receivable | 758 | 1,372 |
Inventory | 439 | 504 |
Other current assets | 657 | 432 |
Total current assets | 15,406 | 19,349 |
NON-CURRENT ASSETS: | ||
Contract fulfillment assets | 1,136 | 1,256 |
Property and equipment, net | 443 | 477 |
Operating lease right-of-use assets | 1,218 | 1,380 |
Severance pay asset | 275 | 271 |
Other non-current assets | 96 | 96 |
Total non-current assets | 3,168 | 3,480 |
TOTAL ASSETS | 18,574 | 22,829 |
CURRENT LIABILITIES: | ||
Accounts payable | 292 | 287 |
Contract liabilities - short term | 611 | 527 |
Operating lease liabilities - short term | 454 | 470 |
Accrued compensation expenses | 965 | 546 |
Total current liabilities | 2,643 | 2,082 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities - long term | 1,584 | 1,795 |
Operating lease liabilities - long term | 669 | 856 |
Liability for severance pay | 252 | 261 |
Other non-current liabilities | 28 | |
Total non-current liabilities | 2,505 | 2,940 |
TOTAL LIABILITIES | 5,148 | 5,022 |
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of June 30, 2024, and December 31, 2023, 10,457,933 and 10,443,768 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 10 | 10 |
Additional paid-in capital | 52,967 | 52,004 |
Accumulated deficit | (39,551) | (34,207) |
TOTAL SHAREHOLDERS’ EQUITY | 13,426 | 17,807 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 18,574 | 22,829 |
Related Party [Member] | ||
CURRENT LIABILITIES: | ||
Other current liabilities | 42 | 41 |
Nonrelated Party [Member] | ||
CURRENT LIABILITIES: | ||
Other current liabilities | $ 279 | $ 211 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 10,457,933 | 10,443,768 |
Common stock, shares outstanding | 10,457,933 | 10,443,768 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
REVENUES | $ 1,181 | $ 674 | $ 1,368 | $ 977 |
COST OF REVENUES | 667 | 777 | 1,077 | 1,327 |
GROSS PROFIT (LOSS) | 514 | (103) | 291 | (350) |
RESEARCH AND DEVELOPMENT EXPENSES | 1,408 | 1,355 | 2,975 | 2,753 |
SALES AND MARKETING EXPENSES | 225 | 493 | 459 | 669 |
GENERAL AND ADMINISTRATIVE EXPENSES | 1,245 | 1,168 | 2,585 | 2,126 |
OPERATING LOSS | (2,364) | (3,119) | (5,728) | (5,898) |
OTHER INCOME | 3 | 10 | ||
FINANCING INCOME, NET | 182 | 240 | 384 | 326 |
NET LOSS | $ (2,182) | $ (2,876) | $ (5,344) | $ (5,562) |
Net loss per ordinary share basic | $ (0.21) | $ (0.28) | $ (0.51) | $ (0.63) |
Net loss per ordinary share diluted | $ (0.21) | $ (0.28) | $ (0.51) | $ (0.63) |
Weighted average ordinary shares basic | 10,449 | 10,435 | 10,447 | 8,864 |
Weighted average ordinary shares diluted | 10,449 | 10,435 | 10,447 | 8,864 |
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, 2022 | $ 7 | $ 36,541 | $ (24,762) | $ 11,786 | ||
Balance, shares at Dec. 31, 2022 | 7,122 | |||||
Stock based compensation | 685 | 685 | ||||
Issuance of shares upon RSU vesting | [1] | [1] | ||||
Issuance of shares upon RSU vesting, shares | 21 | |||||
Net loss | (5,562) | (5,562) | ||||
Issuance expenses | $ 3 | 13,884 | 13,887 | |||
Issuance of shares and warrants, shares | 3,294 | |||||
Balance at Jun. 30, 2023 | $ 10 | 51,110 | (30,324) | 20,796 | ||
Balance, shares at Jun. 30, 2023 | 10,437 | |||||
Balance at Mar. 31, 2023 | $ 10 | 50,813 | (27,448) | 23,375 | ||
Balance, shares at Mar. 31, 2023 | 10,433 | |||||
Stock based compensation | 337 | 337 | ||||
Issuance of shares upon RSU vesting | [1] | [1] | ||||
Issuance of shares upon RSU vesting, shares | 4 | |||||
Net loss | (2,876) | (2,876) | ||||
Issuance expenses | (40) | (40) | ||||
Balance at Jun. 30, 2023 | $ 10 | 51,110 | (30,324) | 20,796 | ||
Balance, shares at Jun. 30, 2023 | 10,437 | |||||
Balance at Dec. 31, 2023 | $ 10 | 52,004 | (34,207) | 17,807 | ||
Balance, shares at Dec. 31, 2023 | 10,444 | |||||
Stock based compensation | 963 | 963 | ||||
Issuance of shares upon RSU vesting | [2] | [2] | ||||
Issuance of shares upon RSU vesting, shares | 14 | |||||
Net loss | (5,344) | (5,344) | ||||
Balance at Jun. 30, 2024 | $ 10 | 52,967 | (39,551) | 13,426 | ||
Balance, shares at Jun. 30, 2024 | 10,458 | |||||
Balance at Mar. 31, 2024 | $ 10 | 52,504 | (37,369) | 15,145 | ||
Balance, shares at Mar. 31, 2024 | 10,447 | |||||
Stock based compensation | 463 | 463 | ||||
Issuance of shares upon RSU vesting | [2] | [2] | ||||
Issuance of shares upon RSU vesting, shares | 11 | |||||
Net loss | (2,182) | (2,182) | ||||
Balance at Jun. 30, 2024 | $ 10 | $ 52,967 | $ (39,551) | $ 13,426 | ||
Balance, shares at Jun. 30, 2024 | 10,458 | |||||
[1]During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $211 thousand and related development costs that had been previously deferred in the amount of $120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. In addition, the Company recognized product revenues of $986 thousand during the six months ended June 2024 from the sale of units of the product developed in the context of these development services.[2]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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (2,182) | $ (2,876) | $ (5,344) | $ (5,562) |
Adjustments to reconcile net loss to net cash used in operations: | ||||
Depreciation | 31 | 37 | 64 | 192 |
Stock based compensation | 463 | 337 | 963 | 685 |
Severance pay asset and liability | (13) | (13) | 54 | |
Interest and exchange differences from operating lease liability | (25) | (13) | (42) | (22) |
Loss from exchange differences on cash and cash equivalents | 19 | 49 | 40 | 53 |
Interest income in respect of deposits | 228 | (231) | 96 | (189) |
Changes in operating assets and liability items: | ||||
Decrease (increase) in accounts receivable | (635) | (97) | 614 | (98) |
Decrease (Increase) in inventory | 165 | (31) | 65 | (94) |
Decrease in operating lease liability | (112) | (62) | (226) | (110) |
Decrease in right-of-use asset | 118 | 50 | 227 | 94 |
Increase in other current and non-current assets | (95) | (104) | (225) | (387) |
Increase (decrease) in account payable | (107) | 409 | 5 | 477 |
Increase (decrease) in related parties | 3 | 39 | 1 | (11) |
Decrease in contract fulfillment assets | 60 | 59 | 120 | 119 |
Decrease in current and non-current contract liabilities | (52) | (455) | (127) | (683) |
Increase in accrued compensation expenses | 66 | 152 | 419 | 89 |
Increase (decrease) in other current and non-current liabilities | (25) | 128 | 40 | 310 |
Net cash flows used in operating activities | (2,093) | (2,609) | (3,323) | (5,083) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of property and equipment | (8) | (42) | (30) | (57) |
Withdrawal of short terms deposits | 8,000 | 8,000 | 3,000 | |
Investment in short term deposits | (3,500) | (18,500) | ||
Net cash flows provided by (used in) investing activities | 7,992 | (3,542) | 7,970 | (15,557) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from issuance of shares and warrants | (64) | 13,913 | ||
Net cash flows provided by (used in) financing activities | (64) | 13,913 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 5,899 | (6,215) | 4,647 | (6,727) |
BALANCE OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD | 7,672 | 9,583 | 8,945 | 10,099 |
LOSS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (19) | (49) | (40) | (53) |
BALANCE OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD | 13,552 | 3,319 | 13,552 | 3,319 |
Non cash activities | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | 33 | 382 | 120 | 465 |
Termination of right-of-use assets in exchange for cancellation of operating lease obligations | $ (24) | $ (25) | $ (55) | $ (25) |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2024 | |
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. The Company’s wholly owned subsidiary, Odysight.ai Ltd (“Odysight.ai”), formerly known as ScoutCam Ltd., was incorporated in the State of Israel on January 3, 2019, and was merged into the Company on December 31, 2019, in a share exchange transaction, following which the surviving operations of the merged entity were the operations of Odysight.ai. On February 28, 2024, D. VIEW Ltd., a wholly owned subsidiary of the Company, was incorporated in the state of the Israel to act as a local representative for the defense market in Israel. The Company, through its subsidiaries, is pioneering solutions for the Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) markets with its visualization and AI platform. The Company’s video sensor-based platform provides solutions for critical systems in the aviation, transportation, and energy industries. Its video-based sensors, embedded software, and AI algorithms are deployed in hard-to-reach locations and harsh environments across a variety of PdM and CBM use cases and allow maintenance and operations teams visibility into areas which are inaccessible under normal operation, or where the operating ambience is not suitable for continuous real-time monitoring. 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 the incorporation of Odysight.ai and through June 30, 2024, the Company accumulated a deficit of approximately $ 39.5 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023. 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 and 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 | 6 Months Ended |
Jun. 30, 2024 | |
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. Odysight.ai expects that the lease period for the original space will be three years. Monthly lease payments under the agreement for the original space are approximately $ 7 b. Ramat Gan office space In May 2023, Odysight.ai entered into a 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. 25 Odysight.ai subleases part of the office space in Ramat Gan to a third party for approximately $ 7 c. The Company leases vehicles under various operating lease agreements. Supplemental cash flow information related to operating leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES 2024 2023 2024 2023 Six months ended June 30, Three months ended June 30, 2024 2023 2024 2023 Unaudited USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 297 119 146 59 As of June 30, 2024, the Company’s operating leases had a weighted average remaining lease term of 0.86 6% 12.8% The maturities of lease liabilities under operating leases as of June 30, 2024, are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2024 281 2025 526 2026 423 2027 151 Total future lease payments 1,381 Less imputed interest (258 ) Total lease liability balance 1,123 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
EQUITY | NOTE 4 – EQUITY a. Private Placement 1. On March 29, 2021, the Company issued to certain investors, including Moshe (Mori) Arkin, a major stockholder and director of the Company, 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% 2. On March 16, 2023, the Company consummated Stock Purchase Agreements for a private placement with (i) Moshe (Mori) Arkin 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 Warrants: As of June 30, 2024, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Exercise Price Number of Issuance Expiration Per Share Underlying Warrant Date Date ($) Common Stocks March 2021 Warrants March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrants March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY b. Stock-based compensation to employees, directors and service providers: In February 2020, the Company’s Board of Directors approved the 2020 Share Incentive Plan (the “2020 Plan”). The 2020 Plan initially included a pool of 580,890 64,099 401,950 777,778 1,000,000 In June 2024, the Company’s Board of Directors approved the 2024 Share Incentive Plan (the “2024 Plan”). The 2024 Plan initially included a pool of 234,484 The 2020 Plan and 2024 Plan provides for the grant of stock options (including incentive stock options and nonqualified stock options), shares of Common Stock, restricted shares, restricted share units, and other share-based awards. Stock option activity: In June 2024, the Company granted 91,000 The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS Six months ended June 30, 2024 Underlying value of ordinary shares ($) 5.55 Exercise price ($) 4.50 Expected volatility (%) 101.39 % Term of the options (years) 7 Risk-free interest rate 4.23 % The cost of the benefit embodied in the options granted during the six months ended June 30, 2024, based on their fair value as of the grant date, is estimated to be approximately $ 435 The following table summarizes stock option activity for the six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Six months ended June 30, 2024 Weighted average Number of exercise Options price $ Outstanding at beginning of period 2,455,069 3.46 Granted 91,000 4.5 Forfeited (23,335 ) 3 Outstanding at end of period 2,522,734 3.5 Vested at end of period 1,341,218 3.49 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – EQUITY Restricted stock unit (“RSU”) activity The Company granted RSUs to its employees and service provider pursuant to the 2020 Plan. 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 six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Six months ended June 30, 2024 Weighted Average Number of Grant Date Fair Value RSUs per Share $ Outstanding at beginning of period 39,585 4.08 Granted - - Forfeited - - Vested (14,165 ) 4.21 Unvested and Outstanding at end of period 25,420 4.01 The following table sets forth the total stock-based payment expenses resulting from options and RSUs granted, included in the statements of operation and comprehensive income: SCHEDULE OF STOCK-BASED PAYMENT EXPENSE 2024 2023 2024 2023 Six months ended June 30, Three months ended June 30, 2024 2023 2024 2023 Unaudited USD in thousands Cost of revenues 17 5 8 2 Research and development 225 265 90 125 Sales and marketing expenses 95 62 45 21 General and administrative 626 353 320 189 Total expenses 963 685 463 337 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 5 – REVENUES SCHEDULE OF DISAGGREGATION OF REVENUE Disaggregation of revenue 2024 2023 2024 2023 Six months ended Three months ended June 30, June 30, 2024 2023 2024 2023 USD in thousands USD in thousands Development Services ( * 211 211 105 105 Products 1,157 766 1,076 569 Total Revenues 1,368 977 1,181 674 (*) During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $211 thousand and related development costs that had been previously deferred in the amount of $120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. In addition, the Company recognized product revenues of $986 thousand during the six months ended June 2024 from the sale of units of the product developed in the context of these development services. (*) During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $ 211 120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years . In addition, the Company recognized product revenues of $ 986 Contract fulfillment assets and Contract liabilities: The Company’s contract fulfillment assets and contract liabilities as of June 30, 2024, and December 31, 2023, were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES June 30, December 31, 2024 2023 USD in thousands Contract fulfillment assets 1,136 1,256 Contract liabilities 2,195 2,322 Contract liabilities include deferred service and advance payments. The change in contract fulfillment assets: June 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 1,256 1,495 Contract costs recognized during the period (120 ) (239 ) Balance at end of the period 1,136 1,256 The change in contract liabilities: June 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 2,322 3,644 Revenue deferred during the period 161 - Revenue recognized during the period (288 ) (1,322 ) Balance at end of the period 2,195 2,322 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 June 30, 2024, the total RPO amounted to $ 2.2 NOTE 6 – ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 6 - INVENTORY Composed as follows: SCHEDULE OF INVENTORY June 30, December 31, 2024 2023 USD in thousands Raw materials and supplies 252 445 Work in progress 184 34 Finished goods 3 25 Inventory Net 439 504 During the period ended June 30, 2024, no |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 7 – LOSS PER SHARE Basic loss per share is computed by dividing the 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 | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 8 – RELATED PARTIES a. Balances with related parties: SCHEDULE OF BALANCES WITH RELATED PARTIES June 30, December 31, USD in thousands Directors (directors’ accrued compensation) 42 31 Smartec R&D Ltd. (see b below) - 10 Related parties 42 41 b. During six months ended June 30, 2023, the Company received development services from Smartec R&D Ltd., a company owned by the Company’s former CTO. Total compensation paid to Smartec R&E Ltd. during the six months ended June 30, 2023, was approximately $ 29 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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 an IIA relating to the program, the Company is required to pay royalties of 3% to the IIA up to the amount of 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS On July 16, 2024, the Company issued 2,144,583 4.80 10.3 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023. |
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 and 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) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 2023 2024 2023 Six months ended June 30, Three months ended June 30, 2024 2023 2024 2023 Unaudited USD in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 297 119 146 59 |
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES | The maturities of lease liabilities under operating leases as of June 30, 2024, are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2024 281 2025 526 2026 423 2027 151 Total future lease payments 1,381 Less imputed interest (258 ) Total lease liability balance 1,123 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK | As of June 30, 2024, the Company had the following outstanding warrants to purchase common stock: SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK Exercise Price Number of Issuance Expiration Per Share Underlying Warrant Date Date ($) Common Stocks March 2021 Warrants March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrants March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273 |
SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS | The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS Six months ended June 30, 2024 Underlying value of ordinary shares ($) 5.55 Exercise price ($) 4.50 Expected volatility (%) 101.39 % Term of the options (years) 7 Risk-free interest rate 4.23 % |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table summarizes stock option activity for the six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Six months ended June 30, 2024 Weighted average Number of exercise Options price $ Outstanding at beginning of period 2,455,069 3.46 Granted 91,000 4.5 Forfeited (23,335 ) 3 Outstanding at end of period 2,522,734 3.5 Vested at end of period 1,341,218 3.49 |
SCHEDULE OF STOCK-BASED PAYMENT EXPENSE | The following table sets forth the total stock-based payment expenses resulting from options and RSUs granted, included in the statements of operation and comprehensive income: SCHEDULE OF STOCK-BASED PAYMENT EXPENSE 2024 2023 2024 2023 Six months ended June 30, Three months ended June 30, 2024 2023 2024 2023 Unaudited USD in thousands Cost of revenues 17 5 8 2 Research and development 225 265 90 125 Sales and marketing expenses 95 62 45 21 General and administrative 626 353 320 189 Total expenses 963 685 463 337 |
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 six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Six months ended June 30, 2024 Weighted Average Number of Grant Date Fair Value RSUs per Share $ Outstanding at beginning of period 39,585 4.08 Granted - - Forfeited - - Vested (14,165 ) 4.21 Unvested and Outstanding at end of period 25,420 4.01 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | SCHEDULE OF DISAGGREGATION OF REVENUE Disaggregation of revenue 2024 2023 2024 2023 Six months ended Three months ended June 30, June 30, 2024 2023 2024 2023 USD in thousands USD in thousands Development Services ( * 211 211 105 105 Products 1,157 766 1,076 569 Total Revenues 1,368 977 1,181 674 (*) During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $211 thousand and related development costs that had been previously deferred in the amount of $120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. In addition, the Company recognized product revenues of $986 thousand during the six months ended June 2024 from the sale of units of the product developed in the context of these development services. (*) During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $ 211 120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years . In addition, the Company recognized product revenues of $ 986 |
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES | The Company’s contract fulfillment assets and contract liabilities as of June 30, 2024, and December 31, 2023, were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES June 30, December 31, 2024 2023 USD in thousands Contract fulfillment assets 1,136 1,256 Contract liabilities 2,195 2,322 Contract liabilities include deferred service and advance payments. The change in contract fulfillment assets: June 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 1,256 1,495 Contract costs recognized during the period (120 ) (239 ) Balance at end of the period 1,136 1,256 The change in contract liabilities: June 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 2,322 3,644 Revenue deferred during the period 161 - Revenue recognized during the period (288 ) (1,322 ) Balance at end of the period 2,195 2,322 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Composed as follows: SCHEDULE OF INVENTORY June 30, December 31, 2024 2023 USD in thousands Raw materials and supplies 252 445 Work in progress 184 34 Finished goods 3 25 Inventory Net 439 504 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF BALANCES WITH RELATED PARTIES | SCHEDULE OF BALANCES WITH RELATED PARTIES June 30, December 31, USD in thousands Directors (directors’ accrued compensation) 42 31 Smartec R&D Ltd. (see b below) - 10 Related parties 42 41 |
GENERAL (Details Narrative)
GENERAL (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 39,551 | $ 34,207 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||||
Operating cash flows from operating leases | $ 146 | $ 59 | $ 297 | $ 119 |
SCHEDULE OF MATURITIES LEASE LI
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases | |
Remainder of 2024 | $ 281 |
2025 | 526 |
2026 | 423 |
2027 | 151 |
Total future lease payments | 1,381 |
Less imputed interest | (258) |
Total lease liability balance | $ 1,123 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 25, 2023 | May 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Operating lease payments | $ 146 | $ 59 | $ 297 | $ 119 | ||||
Operating lease, weighted average remaining lease term | 10 months 9 days | 10 months 9 days | ||||||
Weighted-average discount rate | 6% | 6% | ||||||
Office Lease [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Weighted-average discount rate | 12.80% | 12.80% | ||||||
Lease Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Operating lease description | Odysight.ai entered into a 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. | 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. | |||||
Option to extend | the lease for the original space will be extended for an additional five years until December 31, 2028. | |||||||
Option to terminate | It was also agreed that Odysight.ai has an option to terminate the agreement for the original space after three years. Odysight.ai expects that the lease period for the original space will be three years. | |||||||
Operating lease payments | $ 25 | $ 7 | ||||||
Sublease income | $ 7 |
SCHEDULE OF STOCK WARRANTS OUTS
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK (Details) | 6 Months Ended |
Jun. 30, 2024 $ / 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 FAIR VALUE OF OPTIO
SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares | |
Equity [Abstract] | |
Underlying value of ordinary shares | $ 5.55 |
Exercise price | $ 4.50 |
Expected volatility | 101.39% |
Term of the options (years) | 7 years |
Risk-free interest rate | 4.23% |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Amount of options, Outstanding at beginning of period | shares | 2,455,069 |
Weighted average exercise price, Outstanding at beginning of period | $ / shares | $ 3.46 |
Amount of options, Granted | shares | 91,000 |
Weighted average exercise price, Granted | $ / shares | $ 4.5 |
Amount of options, Forfeited | shares | (23,335) |
Weighted average exercise price, Forfeited | $ / shares | $ 3 |
Amount of options, Outstanding at end of period | shares | 2,522,734 |
Weighted average exercise price, Outstanding at end of period | $ / shares | $ 3.5 |
Amount of options, Vested at end of period | shares | 1,341,218 |
Weighted average exercise price, Vested at end of period | $ / shares | $ 3.49 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Amount of RSUs, Outstanding at beginning of period | shares | 39,585 |
Weighted Average Grant Date Fair Value per Share, Outstanding at beginning of period | $ / shares | $ 4.08 |
Amount of RSUs, Granted | shares | |
Weighted Average Grant Date Fair Value per Share, Granted | $ / shares | |
Amount of RSUs, Forfeited | shares | |
Weighted Average Grant Date Fair Value per Share, Forfeited | $ / shares | |
Amount of RSUs, Vested | shares | (14,165) |
Weighted Average Grant Date Fair Value per Share, Vested | $ / shares | $ 4.21 |
Amount of RSUs, Unvested and Outstanding at end of period | shares | 25,420 |
Weighted Average Grant Date Fair Value per Share, Unvested and Outstanding at end of period | $ / shares | $ 4.01 |
SCHEDULE OF STOCK-BASED PAYMENT
SCHEDULE OF STOCK-BASED PAYMENT EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Total expenses | $ 463 | $ 337 | $ 963 | $ 685 |
Cost of Sales [Member] | ||||
Total expenses | 8 | 2 | 17 | 5 |
Research and Development Expense [Member] | ||||
Total expenses | 90 | 125 | 225 | 265 |
Selling and Marketing Expense [Member] | ||||
Total expenses | 45 | 21 | 95 | 62 |
General and Administrative Expense [Member] | ||||
Total expenses | $ 320 | $ 189 | $ 626 | $ 353 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Mar. 16, 2023 | Mar. 29, 2021 | Jun. 22, 2020 | Mar. 15, 2020 | Jun. 30, 2024 | Feb. 29, 2020 | Mar. 31, 2023 | Jun. 30, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Common stock par value, per share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Options grant during the period | 91,000 | |||||||||
Fair value of the grant | $ 435,000 | |||||||||
2020 Share Incentive Plan [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Options grant during the period | 91,000 | |||||||||
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 | |||||||||
Investment C [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Issuance of units | 2,469,156 | |||||||||
Investors C [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Proceeds from issuance of common stock | $ 20,000,000 | |||||||||
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. | |||||||||
Exercise price | $ 10.35 | |||||||||
Warrants and rights outstanding, maturity date | Mar. 31, 2026 | |||||||||
Common stock percent | 135% | |||||||||
Employees, Consultants, Directors and Other Service Providers [Member] | 2020 Share Incentive Plan [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Options grant during the period | 401,950 | 580,890 | ||||||||
Employees, Consultants, Directors and Other Service Providers [Member] | 2024 Share Incentive Plan [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Options grant during the period | 234,484 | |||||||||
Board of Directors [Member] | 2020 Share Incentive Plan [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Options grant during the period | 64,099 | 1,000,000 | 777,778 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | $ 1,181 | $ 674 | $ 1,368 | $ 977 | |
Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | [1] | 105 | 105 | 211 | 211 |
Product [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | $ 1,076 | $ 569 | $ 1,157 | $ 766 | |
[1]During the second quarter of 2022, the Company completed the development of 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 six months ended June 30, 2024, the Company recognized development services revenues in the amount of $211 thousand and related development costs that had been previously deferred in the amount of $120 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. In addition, the Company recognized product revenues of $986 thousand during the six months ended June 2024 from the sale of units of the product developed in the context of these development services. |
SCHEDULE OF DISAGGREGATION OF_2
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,181 | $ 674 | $ 1,368 | $ 977 |
Property, Plant and Equipment, Useful Life | 7 years | 7 years | ||
Service [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 211 | |||
Related Development Costs [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 120 | |||
Product [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 986 |
SCHEDULE OF CONTRACT FULFILLMEN
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract fulfillment assets | $ 1,136 | $ 1,256 |
Contract liabilities | 2,195 | 2,322 |
Balance at beginning of the period | 1,256 | 1,495 |
Contract costs recognized during the period | (120) | (239) |
Balance at end of the period | 1,136 | 1,256 |
Balance at beginning of the period | 2,322 | 3,644 |
Revenue deferred during the period | 161 | |
Revenue recognized during the period | (288) | (1,322) |
Balance at end of the period | $ 2,195 | $ 2,322 |
REVENUES (Details Narrative)
REVENUES (Details Narrative) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 2.2 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 252 | $ 445 |
Work in progress | 184 | 34 |
Finished goods | 3 | 25 |
Inventory Net | $ 439 | $ 504 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Inventory Disclosure [Abstract] | |
Inventory impairment | $ 0 |
SCHEDULE OF BALANCES WITH RELAT
SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | $ 42 | $ 31 |
Smartec R&D Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | 10 | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | $ 42 | $ 41 |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Related Party Transactions [Abstract] | |
Compensation expense | $ 29 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Royalties agreement description | Pursuant to the agreement with an IIA relating to the program, the Company is required to pay royalties of 3% to the IIA up to the amount of 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. |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Jul. 16, 2024 USD ($) $ / shares shares |
Private Placement [Member] | |
Subsequent Event [Line Items] | |
Proceeds from sale of stock | $ | $ 10.3 |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Number of shares issued | shares | 2,144,583 |
Purchase price per share | $ / shares | $ 4.80 |