Odysight.ai (ODYS) 10-Q 14 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - $ / shares	9 Months Ended
	Sep. 30, 2024	Nov. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
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		12,607,516
Entity Listing, Par Value Per Share	$ 0.001

Interim Condensed Consolidated

Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 20,906	$ 8,945
Restricted cash	318
Short terms deposits		8,096
Accounts receivable	912	1,372
Inventory	328	504
Other current assets	634	432
Total current assets	23,098	19,349
NON-CURRENT ASSETS:
Contract fulfillment assets	1,123	1,256
Property and equipment, net	423	477
Operating lease right-of-use assets	1,154	1,380
Severance pay asset	279	271
Other non-current assets	96	96
Total non-current assets	3,075	3,480
TOTAL ASSETS	26,173	22,829
CURRENT LIABILITIES:
Accounts payable	301	287
Contract liabilities - short term	615	527
Operating lease liabilities - short term	468	470
Accrued compensation expenses	1,152	546
Total current liabilities	2,924	2,082
NON-CURRENT LIABILITIES:
Contract liabilities - long term	1,479	1,795
Operating lease liabilities - long term	601	856
Liability for severance pay	255	261
Other non-current liabilities		28
Total non-current liabilities	2,335	2,940
TOTAL LIABILITIES	5,259	5,022
SHAREHOLDERS’ EQUITY:
Common stock, $0.001 par value; 300,000,000 shares authorized as of September 30, 2024, and December 31, 2023, 12,607,516 and 10,443,768 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	13	10
Additional paid-in capital	63,319	52,004
Accumulated deficit	(42,418)	(34,207)
TOTAL SHAREHOLDERS’ EQUITY	20,914	17,807
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	26,173	22,829
Related Party [Member]
CURRENT LIABILITIES:
Other current liabilities	51	41
Nonrelated Party [Member]
CURRENT LIABILITIES:
Other current liabilities	$ 337	$ 211

Interim Condensed Consolidate_2

Interim Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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	12,607,516	10,443,768
Common stock, shares outstanding	12,607,516	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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
REVENUES	$ 1,292	$ 110	$ 2,660	$ 1,087
COST OF REVENUES	887	321	1,964	1,648
GROSS PROFIT (LOSS)	405	(211)	696	(561)
RESEARCH AND DEVELOPMENT EXPENSES	1,730	1,354	4,705	4,107
SALES AND MARKETING EXPENSES	347	208	806	877
GENERAL AND ADMINISTRATIVE EXPENSES	1,344	1,099	3,929	3,225
OPERATING LOSS	(3,016)	(2,872)	(8,744)	(8,770)
OTHER INCOME				10
FINANCING INCOME, NET	149	330	533	656
NET LOSS	$ (2,867)	$ (2,542)	$ (8,211)	$ (8,104)
Net loss per ordinary share basic	$ (0.23)	$ (0.24)	$ (0.74)	$ (0.86)
Net loss per ordinary share diluted	$ (0.23)	$ (0.24)	$ (0.74)	$ (0.86)
Weighted average ordinary shares basic	12,255	10,439	11,054	9,395
Weighted average ordinary shares diluted	12,255	10,439	11,054	9,395

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			1,056			1,056
Issuance of shares upon RSU vesting		[1]		[1]
Issuance of shares upon RSU vesting, shares	25
Net loss					(8,104)	(8,104)
Issuance expenses	$ 3		13,818			13,821
Issuance of shares and warrants, shares	3,294
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
Balance at Dec. 31, 2023	$ 10		52,004		(34,207)	17,807
Balance, shares at Dec. 31, 2023	10,444
Stock based compensation			1,500			1,500
Issuance of shares upon RSU vesting		[2]		[2]
Issuance of shares upon RSU vesting, shares	19
Issuance of shares	$ 3		9,815			9,818
Issuance of shares, shares	2,145
Net loss					(8,211)	(8,211)
Balance at Sep. 30, 2024	$ 13		63,319		(42,418)	20,914
Balance, shares at Sep. 30, 2024	12,608
Balance at Jun. 30, 2024	$ 10		52,967		(39,551)	13,426
Balance, shares at Jun. 30, 2024	10,458
Stock based compensation			537			537
Issuance of shares upon RSU vesting		[2]		[2]
Issuance of shares upon RSU vesting, shares	5
Issuance of shares	$ 3		9,815			9,818
Issuance of shares, shares	2,145
Net loss					(2,867)	(2,867)
Balance at Sep. 30, 2024	$ 13		$ 63,319		$ (42,418)	$ 20,914
Balance, shares at Sep. 30, 2024	12,608
[1]Represents an amount less than $1 thousand[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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,867)	$ (2,542)	$ (8,211)	$ (8,104)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation	28	47	92	239
Stock based compensation	537	371	1,500	1,056
Severance pay asset and liability	(1)	(1)	(14)	53
Interest and exchange differences from operating lease liability	13	(56)	(29)	(78)
Loss (Profit) from exchange differences on cash and cash equivalents	(29)	11	11	64
Interest income in respect of deposits		167	96	(22)
Changes in operating assets and liability items:
Decrease (increase) in accounts receivable	(154)	158	460	60
Decrease (increase) in inventory	111	(58)	176	(152)
Decrease in operating lease liability	(114)	(115)	(340)	(225)
Decrease in right-of-use asset	111	117	338	211
Decrease (increase)in other current and non-current assets	23	95	(202)	(292)
Increase (decrease) in accounts payable	9	(481)	14	(4)
Increase (decrease) in related parties	9	5	10	(6)
Decrease in contract fulfillment assets	13	60	133	179
Decrease in current and non-current contract liabilities	(101)	(110)	(228)	(793)
Increase in accrued compensation expenses	187	307	606	396
Increase (decrease) in other current and non-current liabilities	26	(230)	66	80
Net cash flows used in operating activities	(2,199)	(2,255)	(5,522)	(7,338)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(8)	(37)	(38)	(94)
Withdrawal of short terms deposits		15,000	8,000	18,000
Investment in short term deposits				(18,500)
Net cash flows provided by (used in) investing activities	(8)	14,963	7,962	(594)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares and warrants	9,850	(78)	9,850	13,835
Net cash flows provided by (used in) financing activities	9,850	(78)	9,850	13,835
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	7,643	12,630	12,290	5,903
BALANCE OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD	13,552	3,319	8,945	10,099
LOSS (PROFIT) FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	29	(11)	(11)	(64)
BALANCE OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD	21,224	15,938	21,224	15,938
Non cash activities
Right-of-use assets obtained in exchange for operating lease liabilities	47	1,112	167	1,577
Termination of right-of-use assets in exchange for cancellation of operating lease obligations		$ (27)	$ (55)	$ (52)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (2,867)	$ (2,542)	$ (8,211)	$ (8,104)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

GENERAL

GENERAL	9 Months Ended
	Sep. 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 Israel to act as a local representative for the defense market in Israel. The Company, through its subsidiaries, provides image-based platform 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 September 30, 2024, the Company accumulated a deficit of approximately $ 42.4

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 Company’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. With the commencement of development and customization contracts during the nine-month period ended September 30, 2024, in which the performance obligation is satisfied over time, the Company measures the progress of the activities using the input method, based on the effort expended relative to the estimated total effort to satisfy the performance obligation. 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, 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 (the “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 (the “Additional Space”), with the term for such agreement 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 Nine months ended September 30, Three months ended September 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 443 262 146 143 As of September 30, 2024, the Company’s operating leases had a weighted average remaining lease term of 0.78 6 12.8 The maturities of lease liabilities under operating leases as of September 30, 2024, are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2024 147 2025 552 2026 447 2027 157 Total future lease payments 1,303 Less imputed interest (234 ) Total lease liability balance 1,069 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2024
Other Liabilities Disclosure [Abstract]
OTHER CURRENT LIABILITIES	NOTE 4 – OTHER CURRENT LIABILITIES Other current liabilities consisted of the following: SCHEDULE OF OTHER CURRENT LIABILITIES September 30, December 31, 2024 2023 USD in thousands Accrued expenses 209 132 Other current liabilities 128 79 Total other current liabilities 337 211

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
EQUITY	NOTE 5 – 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, an aggregate of 2,469,156 20 Each such unit consisted of (i) one share of the Company’s common stock and (ii) one warrant to purchase one share of the Company’s common stock with an exercise price of $ 10.35 March 31, 2026 135 2. On March 16, 2023, the Company entered into stock purchase agreements for a private placement with (i) Moshe (Mori) Arkin and (ii) The Phoenix Insurance Company Ltd. (“Phoenix Insurance”) and Shotfut Menayot Israel – Phoenix Amitim (“Phoenix Amitim”), in connection with the sale and issuance of an aggregate of 3,294,117 units, at a purchase price of $ 4.25 per unit, and for an aggregate purchase price of $ 14 million. Each unit consisted of: (i) one share of the Company’s common stock and (ii) one warrant to purchase one share of the Company’s common stock with an exercise price of $ 5.50 3. On July 16, 2024, the Company issued 2,144,583 4.80 10.3 Warrants: As of September 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 ($) Common Stocks March 2021 Warrants March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrants March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 – EQUITY b. Stock-based compensation to employees, directors and service providers: In February 2020, the Company’s Board of Directors approved the 2020 Share Incentive Plan (the “2020 Plan”). The 2020 Plan initially included a pool of 580,890 64,099 401,950 777,778 1,000,000 In June 2024, the Company’s Board of Directors approved the 2024 Share Incentive Plan (the “2024 Plan”). The 2024 Plan initially included a pool of 234,484 In July, 2024, the Company’s Board of Directors approved an increase to the 2024 Plan’s option pool by an additional 850,000 The 2020 Plan and 2024 Plan each provide for the grant of stock options (including incentive stock options and nonqualified stock options), shares of common stock, restricted shares, restricted share units, and other share-based awards. Stock option activity: During nine months ended September 30, 2024, the Company granted 91,000 669,500 The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS Nine months ended September 30, 2024 Underlying value of ordinary shares ($) 5.55 5.70 Exercise price ($) 4.5 4.8 Expected volatility (%) 101 % Term of the options (years) 7 Risk-free interest rate 3.51 4.23 % The cost of the benefit embodied in the options granted during the nine months ended September 30, 2024, based on their fair value as of the grant date, is estimated to be approximately $ 3,692 The following table summarizes stock option activity for the nine months ended September 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2024 Weighted average Number of exercise Options price $ Outstanding at beginning of period 2,455,069 3.46 Granted 760,500 4.76 Forfeited (23,335 ) 3 Outstanding at end of period 3,192,234 3.77 Vested at end of period 1,573,336 3.47 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 – EQUITY Restricted stock unit (“RSU”) activity The Company from time to time has 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 nine months ended September 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 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 (19,165 ) 4.34 Unvested and Outstanding at end of period 20,420 3.84 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 Nine months ended September 30, Three months ended September 30, 2024 2023 2024 2023 Unaudited USD in thousands Cost of revenues 23 11 6 6 Research and development 402 323 177 58 Sales and marketing expenses 151 83 56 21 General and administrative 924 639 298 286 Total expenses 1,500 1,056 537 371 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUES	NOTE 6 – REVENUES SCHEDULE OF DISAGGREGATION OF REVENUE Disaggregation of revenue 2024 2023 2024 2023 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 USD in thousands USD in thousands Development Services ( * 843 317 548 105 Products 1,817 770 744 5 Total Revenues 2,660 1,087 1,292 110 (*) 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 nine months ended September 30, 2024, the Company recognized development services revenues in the amount of $317 thousand and related development costs previously deferred in the amount of $180 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. (*) 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 nine months ended September 30, 2024, the Company recognized development services revenues in the amount of $ 317 180 seven years In addition, the Company recognized product revenues of $ 1,731 During the nine months ended September 30, 2024 the Company recognized development services revenues in the amount of $ 526 Contract fulfillment assets and Contract liabilities: The Company’s contract fulfillment assets and contract liabilities as of September 30, 2024, and December 31, 2023, were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES September 30, December 31, 2024 2023 USD in thousands Contract fulfillment assets 1,123 1,256 Contract liabilities 2,094 2,322 Contract liabilities include deferred service and advance payments. The change in contract fulfillment assets: September 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 1,256 1,495 Contract costs deferred during the period 47 Contract costs recognized during the period (180 ) (239 ) Balance at end of the period 1,123 1,256 The change in contract liabilities: September 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 (389 ) (1,322 ) Balance at end of the period 2,094 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 are expected to be invoiced and recognized as revenue in future periods. As of September 30, 2024, the total RPO amounted to approximately $ 16.0 million. The total RPO amount includes an amount exceeding $ 10 ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	NOTE 7 - INVENTORY Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2024 2023 USD in thousands Raw materials and supplies 290 445 Work in progress 37 34 Finished goods 1 25 Inventory Net 328 504 During the period ended September 30, 2024, no

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
LOSS PER SHARE	NOTE 8 – 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	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 9 – RELATED PARTIES a. Balances with related parties: SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, December 31, USD in thousands Directors (directors’ accrued compensation) 51 31 Smartec R&D Ltd. (see b below) - 10 Related parties 51 41 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 former CTO. Total compensation paid to Smartec R&E Ltd. during the nine months ended September 30, 2023, was approximately $ 29

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 - 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. Such repayment is contingent upon the Company successfully completing its enhancement plans and generating sales from the enhancements preformed.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. The Company identified no subsequent events as of the date that the financial statements were issued.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 Company’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. With the commencement of development and customization contracts during the nine-month period ended September 30, 2024, in which the performance obligation is satisfied over time, the Company measures the progress of the activities using the input method, based on the effort expended relative to the estimated total effort to satisfy the performance obligation.
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, 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 Nine months ended September 30, Three months ended September 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 443 262 146 143
SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES	The maturities of lease liabilities under operating leases as of September 30, 2024, are as follows: SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES Operating leases USD in thousands Remainder of 2024 147 2025 552 2026 447 2027 157 Total future lease payments 1,303 Less imputed interest (234 ) Total lease liability balance 1,069

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Other Liabilities Disclosure [Abstract]
SCHEDULE OF OTHER CURRENT LIABILITIES	SCHEDULE OF OTHER CURRENT LIABILITIES September 30, December 31, 2024 2023 USD in thousands Accrued expenses 209 132 Other current liabilities 128 79 Total other current liabilities 337 211

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK	As of September 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 ($) Common Stocks March 2021 Warrants March 29, 2021 March 31, 2026 10.35 2,469,156 March 2023 Warrants March 27, 2023 March 26, 2026 5.50 3,294,117 5,763,273
SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS	The fair value of each option was estimated as of the date of grant or reporting period using the Black-Scholes option-pricing model, using the following assumptions: SCHEDULE OF FAIR VALUE OF OPTIONS ESTIMATED ASSUMPTIONS Nine months ended September 30, 2024 Underlying value of ordinary shares ($) 5.55 5.70 Exercise price ($) 4.5 4.8 Expected volatility (%) 101 % Term of the options (years) 7 Risk-free interest rate 3.51 4.23 %
SCHEDULE OF STOCK OPTION ACTIVITY	The following table summarizes stock option activity for the nine months ended September 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 30, 2024 Weighted average Number of exercise Options price $ Outstanding at beginning of period 2,455,069 3.46 Granted 760,500 4.76 Forfeited (23,335 ) 3 Outstanding at end of period 3,192,234 3.77 Vested at end of period 1,573,336 3.47
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 Nine months ended September 30, Three months ended September 30, 2024 2023 2024 2023 Unaudited USD in thousands Cost of revenues 23 11 6 6 Research and development 402 323 177 58 Sales and marketing expenses 151 83 56 21 General and administrative 924 639 298 286 Total expenses 1,500 1,056 537 371
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, 2024: SCHEDULE OF STOCK OPTION ACTIVITY For the Nine months ended September 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 (19,165 ) 4.34 Unvested and Outstanding at end of period 20,420 3.84

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 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 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 USD in thousands USD in thousands Development Services ( * 843 317 548 105 Products 1,817 770 744 5 Total Revenues 2,660 1,087 1,292 110 (*) 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 nine months ended September 30, 2024, the Company recognized development services revenues in the amount of $317 thousand and related development costs previously deferred in the amount of $180 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years. (*) 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 nine months ended September 30, 2024, the Company recognized development services revenues in the amount of $ 317 180 seven years In addition, the Company recognized product revenues of $ 1,731 During the nine months ended September 30, 2024 the Company recognized development services revenues in the amount of $ 526
SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES	The Company’s contract fulfillment assets and contract liabilities as of September 30, 2024, and December 31, 2023, were as follows: SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES September 30, December 31, 2024 2023 USD in thousands Contract fulfillment assets 1,123 1,256 Contract liabilities 2,094 2,322 Contract liabilities include deferred service and advance payments. The change in contract fulfillment assets: September 30, December 31, 2024 2023 USD in thousands Balance at beginning of the period 1,256 1,495 Contract costs deferred during the period 47 Contract costs recognized during the period (180 ) (239 ) Balance at end of the period 1,123 1,256 The change in contract liabilities: September 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 (389 ) (1,322 ) Balance at end of the period 2,094 2,322

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	Composed as follows: SCHEDULE OF INVENTORY September 30, December 31, 2024 2023 USD in thousands Raw materials and supplies 290 445 Work in progress 37 34 Finished goods 1 25 Inventory Net 328 504

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
SCHEDULE OF BALANCES WITH RELATED PARTIES	SCHEDULE OF BALANCES WITH RELATED PARTIES September 30, December 31, USD in thousands Directors (directors’ accrued compensation) 51 31 Smartec R&D Ltd. (see b below) - 10 Related parties 51 41

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 42,418	$ 34,207

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases
Operating cash flows from operating leases	$ 146	$ 143	$ 443	$ 262

SCHEDULE OF MATURITIES LEASE LI

SCHEDULE OF MATURITIES LEASE LIABILITIES UNDER OPERATING LEASES (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Leases
Remainder of 2024	$ 147
2025	552
2026	447
2027	157
Total future lease payments	1,303
Less imputed interest	(234)
Total lease liability balance	$ 1,069

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Jun. 25, 2023	May 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2021	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease payments			$ 146	$ 143		$ 443	$ 262
Operating lease, weighted average remaining lease term			9 months 10 days			9 months 10 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 (the “Additional Space”), with the term for such agreement ending December 31, 2023.			Odysight.ai entered into a lease agreement for office space in Omer, Israel (the “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 OTHER CURRENT LIABI

SCHEDULE OF OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]
Accrued expenses	$ 209	$ 132
Other current liabilities	128	79
Nonrelated Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Total other current liabilities	$ 337	$ 211

SCHEDULE OF STOCK WARRANTS OUTS

SCHEDULE OF STOCK WARRANTS OUTSTANDING TO PURCHASE COMMON STOCK (Details)	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 30, 2024 $ / shares
Expected volatility	101%
Term of the options (years)	7 years
Minimum [Member]
Underlying value of ordinary shares	$ 5.55
Exercise price	$ 4.5
Risk-free interest rate	3.51%
Maximum [Member]
Underlying value of ordinary shares	$ 5.70
Exercise price	$ 4.8
Risk-free interest rate	4.23%

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Details)	9 Months Ended
	Sep. 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	760,500
Weighted average exercise price, Granted | $ / shares	$ 4.76
Amount of options, Forfeited | shares	(23,335)
Weighted average exercise price, Forfeited | $ / shares	$ 3
Amount of options, Outstanding at end of period | shares	3,192,234
Weighted average exercise price, Outstanding at end of period | $ / shares	$ 3.77
Amount of options, Vested at end of period | shares	1,573,336
Weighted average exercise price, Vested at end of period | $ / shares	$ 3.47
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	(19,165)
Weighted Average Grant Date Fair Value per Share, Vested | $ / shares	$ 4.34
Amount of RSUs, Unvested and Outstanding at end of period | shares	20,420
Weighted Average Grant Date Fair Value per Share, Unvested and Outstanding at end of period | $ / shares	$ 3.84

SCHEDULE OF STOCK-BASED PAYMENT

SCHEDULE OF STOCK-BASED PAYMENT EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total expenses	$ 537	$ 371	$ 1,500	$ 1,056
Cost of Sales [Member]
Total expenses	6	6	23	11
Research and Development Expense [Member]
Total expenses	177	58	402	323
Selling and Marketing Expense [Member]
Total expenses	56	21	151	83
General and Administrative Expense [Member]
Total expenses	$ 298	$ 286	$ 924	$ 639

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands						1 Months Ended		3 Months Ended			9 Months Ended
	Jul. 16, 2024	Mar. 16, 2023	Mar. 29, 2021	Jun. 22, 2020	Mar. 15, 2020	Jul. 31, 2024	Feb. 29, 2020	Sep. 30, 2024	Mar. 31, 2023	Jun. 30, 2021	Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregate purchase price								$ 9,818			$ 9,818
Options grant during the period											760,500
Fair value of the grant											$ 3,692
2020 Share Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Options grant during the period											91,000
2024 Share Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Options grant during the period											669,500
Private Placement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Proceeds from sale of stock	$ 10,300
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued	2,144,583							2,145,000			2,145,000
Purchase price per share	$ 4.80
Aggregate purchase price								$ 3			$ 3
Stock Purchase Agreements [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued		3,294,117
Purchase price per share		$ 4.25
Aggregate purchase price		$ 14,000
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]
Number of shares issued			2,469,156
Investors C [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Proceeds from issuance of common stock			$ 20,000
Sale of stock, description			Each such unit consisted of (i) one share of the Company’s common stock and (ii) one warrant to purchase one share of the Company’s 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	850,000			1,000,000	777,778

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total Revenues		$ 1,292	$ 110	$ 2,660	$ 1,087
Service [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	[1]	548	105	843	317
Product [Member]
Disaggregation of Revenue [Line Items]
Total Revenues		$ 744	$ 5	$ 1,817	$ 770
[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 nine months ended September 30, 2024, the Company recognized development services revenues in the amount of $317 thousand and related development costs previously deferred in the amount of $180 thousand. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at 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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Revenues	$ 1,292	$ 110	$ 2,660	$ 1,087
Property, plant and equipment, useful life	7 years		7 years
Service [Member]
Defined Benefit Plan Disclosure [Line Items]
Revenues			$ 317
Related Development Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Revenues			180
Product [Member]
Defined Benefit Plan Disclosure [Line Items]
Revenues			1,731
Development And Customization Contracts [Member]
Defined Benefit Plan Disclosure [Line Items]
Revenues			$ 526

SCHEDULE OF CONTRACT FULFILLMEN

SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract fulfillment assets	$ 1,123	$ 1,256
Contract liabilities	2,094	2,322
Balance at beginning of the period	1,256	1,495
Contract costs deferred during the period	47
Contract costs recognized during the period	(180)	(239)
Balance at end of the period	1,123	1,256
Balance at beginning of the period	2,322	3,644
Revenue deferred during the period	161
Revenue recognized during the period	(389)	(1,322)
Balance at end of the period	$ 2,094	$ 2,322

REVENUES (Details Narrative)

REVENUES (Details Narrative) $ in Millions	Sep. 30, 2024 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue remaining performance obligation, amount	$ 16
Longterm Purchase Order Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue remaining performance obligation, amount	$ 10

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 290	$ 445
Work in progress	37	34
Finished goods	1	25
Inventory Net	$ 328	$ 504

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Inventory Disclosure [Abstract]
Inventory impairment	$ 0

SCHEDULE OF BALANCES WITH RELAT

SCHEDULE OF BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Directors [Member]
Related Party Transaction [Line Items]
Related parties	$ 51	$ 31
Smartec R&D Ltd [Member]
Related Party Transaction [Line Items]
Related parties		10
Related Party [Member]
Related Party Transaction [Line Items]
Related parties	$ 51	$ 41

RELATED PARTIES (Details Narrat

RELATED PARTIES (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Related Party Transactions [Abstract]
Compensation expense	$ 29

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Sep. 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. Such repayment is contingent upon the Company successfully completing its enhancement plans and generating sales from the enhancements preformed.