Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ReWalk Robotics Ltd. | |
Entity Central Index Key | 1,607,962 | |
Amendment Flag | false | |
Trading Symbol | RWLK | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 35,781,931 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,230 | $ 14,567 |
Trade receivable, net | 1,163 | 1,103 |
Prepaid expenses and other current assets | 1,235 | 1,625 |
Inventories | 2,472 | 3,643 |
Total current assets | 10,100 | 20,938 |
LONG-TERM ASSETS | ||
Restricted cash and other long term assets | 1,046 | 1,085 |
Property and equipment, net | 728 | 840 |
Total long-term assets | 1,774 | 1,925 |
Total assets | 11,874 | 22,863 |
CURRENT LIABILITIES | ||
Current maturities of long term loan | 6,978 | 6,441 |
Trade payables | 2,778 | 1,811 |
Employees and payroll accruals | 670 | 872 |
Deferred revenues | 220 | 123 |
Other current liabilities | 403 | 480 |
Total current liabilities | 11,049 | 9,727 |
LONG-TERM LIABILITIES | ||
Long term loan, net of current maturities | 5,444 | 8,911 |
Deferred revenues | 357 | 262 |
Other long-term liabilities | 245 | 256 |
Total long-term liabilities | 6,046 | 9,429 |
Total liabilities | 17,095 | 19,156 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Shareholders' equity (deficiency): | ||
Share capital Ordinary shares NIS 0.01 par value- Authorized: 250,000,000 shares at September 30, 2018 and December 31, 2017; Issued and outstanding: 35,647,411 and 30,003,639 shares at September 30, 2018 and December 31, 2017, respectively | 100 | 84 |
Additional paid-in capital | 142,579 | 134,843 |
Accumulated deficit | (147,900) | (131,220) |
Total shareholders' equity (deficiency) | (5,221) | 3,707 |
Total liabilities and shareholders' equity (deficiency) | $ 11,874 | $ 22,863 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in NIS per share) | $ 0.01 | $ 0.01 |
Ordinary shares, authorized | 250,000,000 | 250,000,000 |
Ordinary shares, issued | 35,647,411 | 30,003,639 |
Ordinary shares, outstanding | 35,647,411 | 30,003,639 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,617 | $ 1,732 | $ 4,966 | $ 6,238 |
Cost of revenues | 855 | 1,024 | 2,755 | 3,740 |
Gross profit | 762 | 708 | 2,211 | 2,498 |
Operating expenses: | ||||
Research and development, net | 1,597 | 1,618 | 5,645 | 4,433 |
Sales and marketing | 1,926 | 2,637 | 6,187 | 8,643 |
General and administrative | 1,362 | 1,805 | 5,620 | 5,796 |
Total operating expenses | 4,885 | 6,060 | 17,452 | 18,872 |
Operating loss | (4,123) | (5,352) | (15,241) | (16,374) |
Loss on extinguishment of debt | 313 | |||
Financial expenses, net | 405 | 479 | 1,412 | 1,843 |
Loss before income taxes | (4,528) | (5,831) | (16,653) | (18,530) |
Income taxes | 5 | 15 | 4 | 25 |
Net loss | $ (4,533) | $ (5,846) | $ (16,657) | $ (18,555) |
Net loss per ordinary share, basic and diluted | $ (0.13) | $ (0.27) | $ (0.51) | $ (1) |
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 35,541,762 | 21,660,757 | 32,809,424 | 18,463,444 |
Condensed Statements of Changes
Condensed Statements of Changes In Shareholders' Equity (Deficiency) (Unaudited) - USD ($) $ in Thousands | Ordinary Share | Additional paid-in capital | Accumulated deficit | Total | ||
Balance at Dec. 31, 2016 | $ 45 | $ 114,707 | $ (106,492) | $ 8,260 | ||
Balance, shares at Dec. 31, 2016 | 16,338,257 | |||||
Share-based compensation to employees and non-employees | 3,654 | 3,654 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | $ 1 | 37 | 38 | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 166,748 | |||||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $467 | $ 16 | 9,293 | 9,309 | |||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $467, shares | 5,613,084 | |||||
Issuance of ordinary shares in follow-on public offering, net of issuance expenses in an amount of $1,117 | $ 22 | 7,141 | 7,163 | |||
Issuance of ordinary shares in follow-on public offering, net of issuance expenses in an amount of $1,117, shares | 7,885,550 | |||||
Cumulative effect to stock based compensation from adoption of a new accounting standard | 11 | (11) | ||||
Net loss | (24,717) | (24,717) | ||||
Balance at Dec. 31, 2017 | $ 84 | 134,843 | (131,220) | 3,707 | ||
Balance, shares at Dec. 31, 2017 | 30,003,639 | |||||
Cumulative effect to accumulated deficit from adoption of a new accounting standard | (23) | (23) | ||||
Share-based compensation to employees and non-employees | 2,342 | 2,342 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | [1] | |||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 278,709 | |||||
Issuance of ordinary shares in a private placement agreement, net of issuance expenses in an amount of $830 | [2] | $ 12 | 4,283 | 4,295 | ||
Issuance of ordinary shares in a private placement agreement, net of issuance expenses in an amount of $830, shares | [2] | 4,117,891 | ||||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $237 | [3] | $ 4 | 1,111 | 1,115 | ||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $237, shares | [3] | 1,247,172 | ||||
Net loss | (16,657) | (16,657) | ||||
Balance at Sep. 30, 2018 | $ 100 | $ 142,579 | $ (147,900) | $ (5,221) | ||
Balance, shares at Sep. 30, 2018 | 35,647,411 | |||||
[1] | Represents an amount lower than $1. | |||||
[2] | See Note 8f to the condensed consolidated financial statements. | |||||
[3] | See Note 8e to the condensed consolidated financial statements. |
Condensed Statements of Chang_2
Condensed Statements of Changes In Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
At-the-market offering | ||
Issuance expenses, amount | $ 237 | $ 467 |
Follow-on public offering | ||
Issuance expenses, amount | $ 1,117 | |
Private placement agreement | ||
Issuance expenses, amount | $ 830 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Cash flows used in operating activities: | |||
Net loss | $ (16,657) | $ (18,555) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 351 | 516 | |
Share-based compensation to employees and non- employees | 2,342 | 2,597 | |
Deferred taxes | (13) | (20) | |
Loss on extinguishment of debt | 313 | ||
Financial expenses related to long term loan | 133 | 87 | |
Changes in assets and liabilities: | |||
Trade receivables, net | (83) | (11) | |
Prepaid expenses and other current and long term assets | 189 | (526) | |
Inventories | 1,171 | (381) | |
Trade payables | 491 | (1,048) | |
Employees and payroll accruals | (202) | (161) | |
Deferred revenues | 192 | 45 | |
Other current and long term liabilities | (88) | 102 | |
Net cash used in operating activities | (12,174) | (17,042) | |
Cash flows used in investing activities: | |||
Purchase of property and equipment | (3) | (19) | |
Net cash used in investing activities | (3) | (19) | |
Cash flows from financing activities: | |||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares by employees and non-employees | 28 | ||
Repayment of long term loan | (3,063) | (2,747) | |
Issuance of ordinary shares in investment agreement, net of issuance expenses in an amount of $343 | [1] | 4,657 | |
Issuance of ordinary shares in at-the-market offering, net of issuance expenses in the amount of $123 | [2] | 1,229 | 9,060 |
Net cash provided by financing activities | 2,823 | 6,341 | |
Decrease in cash, cash equivalents, and restricted cash | (9,354) | (10,720) | |
Cash, cash equivalents, and restricted cash at beginning of period | 15,423 | 24,498 | |
Cash, cash equivalents, and restricted cash at end of period | 6,069 | 13,778 | |
Supplemental disclosures of non-cash flow information | |||
At-the-market offering expenses not yet paid | [2] | 114 | 50 |
Classification of inventory to property and equipment, net | 145 | ||
Classification of other current assets to property and equipment, net | 236 | ||
Investment agreement issuance cost not yet paid | [1] | 362 | |
Supplemental cash flow information: | |||
Cash and cash equivalents | 5,230 | 12,928 | |
Restricted cash included in other long term assets | 839 | 850 | |
Total Cash, cash equivalents, and restricted cash | $ 6,069 | $ 13,778 | |
[1] | See Note 8f to the condensed consolidated financial statements. | ||
[2] | See Note 8e to the condensed consolidated financial statements. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Investment agreement | |
Issuance expenses paid | $ 343 |
At-the-market offering | |
Issuance expenses paid | $ 123 |
General
General | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. ReWalk Robotics Ltd. (“RRL”, and together with its subsidiaries, the “Company”) was incorporated under the laws of the State of Israel on June 20, 2001 and commenced operations on the same date. b. RRL has two wholly-owned subsidiaries: (i) ReWalk Robotics Inc. (“RRI”) incorporated under the laws of Delaware on February 15, 2012 and (ii) ReWalk Robotics GMBH. (“RRG”) incorporated under the laws of Germany on January 14, 2013. c. The Company is designing, developing and commercializing the ReWalk system, an innovative exoskeleton that allows wheelchair-bound persons with mobility impairments or other medical conditions to stand and walk once again. The ReWalk system consists of a light wearable brace support suit that integrates motors at the joints, rechargeable batteries, an array of sensors and a computer-based control system to power knee and hip movement. There are currently two types of products: ReWalk Personal and ReWalk Rehabilitation. ReWalk Personal is designed for everyday use by individuals at home and in their communities and is custom-fitted for each user. ReWalk Rehabilitation is designed for the clinical rehabilitation environment where it provides individuals access to valuable exercise and therapy. It also enables individuals to evaluate their capacity for using the ReWalk Personal system in the future. d. The Company markets and sells its products directly to institutions and individuals and through third-party distributors. The Company sells its products directly primarily in Germany and the United States, and primarily through distributors in other markets. In its direct markets, the Company has established relationships with rehabilitation centers and the spinal cord injury community, and in its indirect markets, the Company’s distributors maintain these relationships. RRI markets and sells products mainly in the United States and Canada. RRG sells the Company’s products mainly in Germany and Europe. e. During the nine months ended September 30, 2018 , the Company issued and sold 1,247,172 ordinary shares at an average price of $1.08 per share under its $25 million ATM Offering Program (as defined in Note 8e below). The gross proceeds to the Company were approximately $1.4 million , and the net aggregate proceeds after deducting commissions, fees and offering expenses in the amount of $237 thousand were approximately $1.1 million . As a result, from the inception of the ATM Offering Program in May 2016 until September 30, 2018 , the Company has issued and sold 7,552,318 ordinary shares at an average price of $2.08 per share under its ATM Offering Program, with gross proceeds of approximately $15.7 million , and net aggregate proceeds of approximately $14.6 million after deducting commissions, fees and offering expenses in the amount of approximately $1.1 million . The Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period. See Note 8e below for more information about the Company’s ATM Offering Program. f. The Company had an accumulated deficit in the total amount of approximately $147.9 million as of September 30, 2018 and further losses are anticipated in the development of its business. Those factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next 12 months with existing cash on hand, reducing operating spend, issuances under the Company's ATM Offering Program, or other future public or private issuances of equity and debt securities , or through a combination of the foregoing. However, the Company will need to seek additional sources of financing if the Company require more funds than anticipated during the next 12 months or in later periods. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The consolidated financial statements for the three and nine months ended September 30, 2018 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Unaudited Interim Condensed Consolidated Financial Statements | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | NOTE 2:- UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s (i) consolidated financial position as of September 30, 2018,(ii) consolidated results of operations for the three and nine months ended September 30, 2018 and (iii) consolidated cash flows for the nine months ended September 30, 2018. The results for the three and nine months periods ended September 30, 2018, as applicable, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES a. The significant accounting policies applied in the audited consolidated financial statements of the Company as disclosed in the Company's annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 8, 2018, are applied consistently in these unaudited interim condensed consolidated financial statements, except as discussed below. b. Revenue Recognition The Company generates revenues from sales of products. The Company sells its products directly to end customers and through distributors. The Company sells its products to private individuals (who finance the purchases by themselves, through fundraising or reimbursement coverage from insurance companies), rehabilitation facilities and distributors. On January 1, 2018, we adopted Topic 606 using the modified retrospective method for contracts that were not completed as of January 1, 2018. Under the modified retrospective method, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. This adjustment did not have a material impact on our condensed consolidated financial statements. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605"). The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products or services. Revenue is measured as the amount of consideration to which we expect to be entitled in exchange for transferring products or providing services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer A contract with a customer exists when (i) the Company enters into a written agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. As a result of the Company's adoption of this standard, the majority of the amounts that were historically classified as bad debt expense, primarily related to self-payers customers, are now considered an implicit price concession in determining net revenue. Accordingly, the Company recognized uncollectible balances associated with self-payers customers as a reduction of the transaction price and therefore as a reduction in net revenues when historically these amounts were classified as bad debt expense within general and administrative expenses. Shipping and handling costs charged to customers are included in net sales. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, we do not offer extended payment terms beyond one year to customers. As such, we do not adjust our consideration for financing arrangements. 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time, once the customer has obtained the legal title to the items purchased or service provided. For systems sold to rehabilitation facilities, the Company includes training and considers the elements in the arrangement to be a single performance obligation. In accordance with ASC 606, the Company has concluded that the training is essential to the functionality of the Company’s systems. Therefore the Company recognizes revenue for the system and training only after delivery in accordance with the agreement delivery terms to the customer and after the training has been completed. For sales of Personal systems to end users, and for sales of Personal or Rehabilitation systems to third party distributors, the Company does not provide training to the end user as this training is completed by the Rehabilitation centers or by the distributor that have previously completed the ReWalk Training program. Therefore the Company recognizes revenue in such sales upon delivery. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. The Company generally does not grant a right of return for its products. There have been a few occasions in which the Company experienced a return of its products. Therefore, the Company records reductions to revenue for expected future product returns based on the Company’s historical experience. Disaggregation of Revenues Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Units placed $ 1,544 $ 1,656 $ 4,744 $ 6,025 Spare parts and warranties 73 76 222 213 Total Revenues $ 1,617 $ 1,732 $ 4,966 $ 6,238 Units placed We currently offer two products: ReWalk Personal and ReWalk Rehabilitation. ReWalk Personal is currently designed for everyday use by paraplegic individuals at home and in their communities, and is custom fitted for each user. ReWalk Rehabilitation is currently designed for use by paraplegia patients in the clinical rehabilitation environment, where it provides individuals access to valuable exercise and therapy. It also enables individuals to evaluate their capacity for using ReWalk Personal in the future. Units placed includes revenue from sales of a ReWalk Personal or ReWalk Rehabilitation. We also offer a Rent-to-Purchase model in which we recognize revenue according to the agreed rental monthly fee. For units placed, we transfer control and recognize a sale or a rental revenue when title has passed to our customer. Each unit placed is considered an independent, unbundled performance obligation. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. For spare part sales, we transfer control and recognize a sale when title has passed to our customer. Each part sold is considered an independent, unbundled performance obligation. Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. In the beginning of 2018, we updated our service policy to include a five- year warranty compared to a period of two years that were included in the past for parts and services. The first two years are considered as assurance type warranty and the additional period is considered an extended service arrangement, which is a service type warranty. An assurance type warranty is not accounted for as separate performance obligations under the revenue model. A service type warranty is either sold with a unit or separately for units for which the warranty has expired. Revenue is then recognized ratably over the life of the warranty. Contract balances September 30, December 31, 2018 2017 Trade receivable, net $ 1,163 $ 1,103 Deferred revenues (1) $ 577 $ 385 (1) $106 thousand of December 31, 2017 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2018. The Company has applied the practical expedient allowed within the guidance to expense sales commissions when incurred as the amortization period would be for one year or less. Typical timing of payment The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. Typical payment terms are based on payment terms as established in our contracts. For some contracts we may be entitled to receive an advance payment. Transaction price allocated to remaining performance obligations For the nine months ended September 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company’s unfilled performance obligations as of September 30, 2018 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $577 thousand, which is fulfilled over one to five years. c. Recent Accounting Pronouncements: Share Based Compensation Cash Flows On November 17, 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” This ASU requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are to be included with cash and cash equivalents when reconciling the beginning of period and end of period amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 on January 1, 2018 and it did not have a material impact on its accounting and disclosures. Recent Accounting Pronouncements Not Yet Adopted Leases Income Taxes Income Tax Accounting Implications of the Tax Cuts and Jobs Act d. Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. September 30, December 31, 2018 2017 Customer A 59 % *) Customer B *) 17 % Customer C *) 14 % Customer D *) 10 % *) Less than 10% The Company’s trade receivables are geographically diversified and derived primarily from sales to customers in various countries, mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its distributors based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. As of September 30, 2018 and December 31, 2017, trade receivables are presented net of allowance for doubtful accounts in the amount of $109 thousand and $125 thousand, respectively, and net of sales return reserve of $105 thousand as of September 30, 2018 and December 31, 2017. e. Warranty provision: The Company provided a two-year standard warranty for its products. In the beginning of 2018, the Company updated its service policy for new devices sold to include five-year warranties. The Company determined that the first two years of warranty is an assurance-type warranty and records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. US Dollars in thousands Balance as of December 31, 2017 $ 488 Provision 190 Usage (261 ) September 30, 2018 $ 417 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4:- INVENTORIES The components of inventories are as follows (in thousands): September 30, December 31, 2018 2017 Finished products 2,472 3,643 $ 2,472 $ 3,643 |
Loan Agreement with Kreos and R
Loan Agreement with Kreos and Related Warrant to Purchase Ordinary Shares | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES | NOTE 5:- LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES On December 30, 2015, the Company entered into the loan agreement (the "Loan Agreement") with Kreos Capital V (Expert Fund) Limited ("Kreos"), pursuant to which Kreos extended a line of credit to the Company in the amount of $20 million (the "Loan"). The Loan has a maturity of 36 months and bears annual interest of 10.75% , which is to be paid monthly. The principal of the Loan is to be paid in 24 monthly payments, beginning in January 2017, except for the last loan payment, which was paid in advance on the Draw Down Date (as defined below). The repayment period will be extended to 36 months if the Company raises $20.0 million or more in connection with the issuance of shares of its capital stock (including debt securities convertible into shares of the Company’s capital stock) prior to the expiration of the respective initial 24 -month period. Repayment of the Loan and payment of all other amounts owed to Kreos are to be made in U.S. dollars. On June 9, 2017, the Company and Kreos entered into the First Amendment of the Loan Agreement (the "Loan Amendment"). As of that date the outstanding principal amount under the Loan Agreement (the "Outstanding Principal Amount") was $17.2 million . Under the Loan Amendment $3 million of the Outstanding Principal Amount was extended by an additional 3 years with the same interest rate and became subject to repayment in accordance with, and subject to the terms of, a secured convertible promissory note (the "Kreos Convertible Note"). The Kreos Convertible Note may be converted into up to 2,523,660 ordinary shares of the Company at a fixed conversion price of $1.268 per share (subject to customary anti-dilution adjustments in connection with a share split, reverse share split, share dividend, combination, reclassification or otherwise), thus reducing the Outstanding Principal Amount by $3 million to $14.2 million . Kreos may convert the then-outstanding principal under the Kreos Convertible Note in whole or in part, in one or more occasions, at any time until the earlier of (i) the maturity date of June 9, 2020 or (ii) a "Change of Control", as defined in the Loan Agreement. In addition, at any time until the maturity date of June 9, 2020, Kreos has the right to convert the “end of loan payments” under the Loan Agreement, in whole or in part, into ordinary shares at a conversion price of $1.268 per share. Because the aggregate amount the Company drew down under the Loan Agreement equals $20 million and the total “end of loan payments” equal $200 thousand , Kreos has the right to convert up to 157,729 additional ordinary shares (subject to customary anti-dilution adjustments), making the total number of ordinary shares issuable upon conversion of the Kreos Convertible Note 2,523,660 (subject to customary anti-dilution adjustments). The Outstanding Principal Amount under the Loan Agreement is not convertible and remains subject to repayment in accordance with the terms and conditions of the Loan Agreement, provided that such amount shall be repaid by the Company in accordance with an amended repayment schedule. The Company concluded that the exchange of the $3 million for the convertible promissory note is not a troubled debt restructuring under applicable accounting guidance because the lenders did not grant a concession. The modification was analyzed under ASC 470 Debt to determine if extinguishment accounting was applicable. Under ASC 470-50-40-10 a modification or an exchange that adds or eliminates a substantive conversion option as of the conversion date is always considered substantial and requires extinguishment accounting. Since this modification added a substantive conversion option, extinguishment accounting is applicable. The difference between the fair value of the new debt with the pre-modification carrying amount of the old debt represented a loss on extinguishment in the amount of $313 thousand . According to the Loan Agreement, the repayment period will be extended to 36 months if the Company raises $20 million or more in connection with the issuance of shares of its capital stock (including debt securities convertible into shares of the Company’s capital stock). As of June 30, 2017 the Company had raised more than $20 million and therefore the repayment period was extended by an additional 12 months to 36 months. On September 3, 2018, Kreos agreed to defer $0.5 million in principal and interest payments under the Kreos Loan Agreement and Kreos Convertible Note until October 2, 2018. We are in discussions with Kreos regarding deferral of up to $1.0 million in additional payments under the Kreos Loan Agreement until early 2019. We may also seek to refinance up to a substantial portion of our indebtedness under our Kreos Loan Agreement, which we have considered with Kreos from time to time, including by exchanging our indebtedness with Kreos for new convertible debt from a third-party investor, or to borrow additional funds. For more information on our currently-in-effect agreements with Kreos, see “Part I, Item 1A. Risk Factors,” “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and in Note 6 to our audited consolidated financial statements in our 2017 Form 10-K. The Company recorded interest expense in the amount of $414 thousand and $1.4 million during the three and nine months ended September 30, 2018 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES a. Purchase commitments: The Company has contractual obligations to purchase goods from its contract manufacturer. Purchase obligations do not include contracts that may be canceled without penalty. As of September 30, 2018 , non-cancelable outstanding obligations amounted to approximately $936 thousand . b. Lease commitment: The Company operates from leased facilities in Israel, the United States and Germany. These leases expire between 2018 and 2025 (the “lease agreements”). The future minimum lease commitments of the Company and its subsidiaries under various non-cancelable operating lease agreements in respect of premises, that are in effect as of September 30, 2018 , are as follows (in thousands): 2018 $ 152 2019 576 2020 584 2021 583 2022 592 And Thereafter 1,078 Total $ 3,565 RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates between 2018 and 2021. RRL and RRG have an option to be released from these agreements, which may result in penalties in a maximum amount of approximately $57 thousand as of September 30, 2018 . c. Royalties: The Company’s research and development efforts are financed, in part, through funding from the Israel Innovation Authority (the “IIA”) and Israel-U.S. Binational Industrial Research and Development Foundation (the “BIRD”). Since the Company’s inception through September 30, 2018 , the Company received funding from the IIA and BIRD in the total amount of $ 1.97 million and $500 thousand , respectively. Out of the $1.97 million in funding from the IIA, a total amount of $1.57 million were royalty bearing grants (as of September 30, 2018 , the Company paid royalties to the IIA in the total amount of $50 thousand ), while a total amount of $400 thousand was received in consideration of 5,237 convertible preferred A shares, which converted after our initial public offering in September 2014 into ordinary shares in a conversion ratio of 1 to 1. The Company is obligated to pay royalties to the IIA, amounting to 3% - 3.5% of the sales of the products and other related revenues generated from such projects, up to 100% of the grants received. The royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the applicable products and in the absence of such sales, no payment is required. The Company was obligated to pay royalties to BIRD amounting to 5% of the sales of the products and other related revenues generated from such projects, up to 150% of the grants received. For the three and nine months ended September 30, 2018 there were no royalties expenses recorded in cost of revenues. As of September 30, 2018 , the contingent liability to the IIA amounted to $1.5 million . The Israeli Research and Development Law provides that know-how developed under an approved research and development program may not be transferred to third parties without the approval of the IIA. Such approval is not required for the sale or export of any products resulting from such research or development. The IIA, under special circumstances, may approve the transfer of IIA-funded know-how outside Israel, in the following cases: (a) the grant recipient pays to the IIA a portion of the sale price paid in consideration for such IIA-funded know-how or in consideration for the sale of the grant recipient itself, as the case may be, which portion will not exceed six times the amount of the grants received plus interest (or three times the amount of the grant received plus interest, in the event that the recipient of the know-how has committed to retain the research and development activities of the grant recipient in Israel after the transfer); (b) the grant recipient receives know-how from a third party in exchange for its IIA-funded know-how; (c) such transfer of IIA-funded know-how arises in connection with certain types of cooperation in research and development activities; or (d) if such transfer of know-how arises in connection with a liquidation by reason of insolvency or receivership of the grant recipient. d. Liens: In connection with the Loan Agreement, the Company granted Kreos a first priority security interest over all of its assets, including intellectual property and equity interests in its subsidiaries, subject to certain permitted security interests. The Company's other long-term assets in the amount of $839 thousand have been pledged to third parties as a security in respect to lease agreements . Such deposit cannot be pledged to others or withdrawn without the consent of such third party. e. Legal Claims: Occasionally the Company is involved in various claims, lawsuits, regulatory examinations, investigations and other legal matters arising, for the most part, in the ordinary course of business. The outcome of litigation and other legal matters is inherently uncertain. In making a determination regarding accruals, using available information, the Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which the Company is a party and records a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Where the Company determines an unfavorable outcome is not probable or reasonably estimable, the Company does not accrue for any potential litigation loss. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses, and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from the Company’s current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to the Company’s consolidated results of operations, liquidity or financial condition. Securities Class Action Litigation: Between September 2016 and January 2017, eight putative class actions on behalf of alleged shareholders that purchased or acquired the Company’s ordinary shares pursuant and/or traceable to the Company's registration statement on Form F-1 (File No. 333-197344) used in connection with its initial public offering (the “IPO”) were commenced in the following courts: (i) the Superior Court of the State of California, County of San Mateo; (ii) the Superior Court of the Commonwealth of Massachusetts, Suffolk County; (iii) the United States District Court for the Northern District of California; and (iv) the United States District Court for the District of Massachusetts. The actions involved or involve claims under various sections of the Securities Act of 1933 (the Securities Act), against the Company, certain of the Company’s current and former directors and officers, the underwriters of our IPO and certain other defendants. Dismissed Actions of September 30, 2018 The four actions commenced in the Superior Court of the State of California, County of San Mateo were dismissed in January 2017 for lack of personal jurisdiction, and the action commenced in the United States District Court for the Northern District of California was voluntarily dismissed in March 2017. Pending Actions of September 30, 2018 District Court Case The action commenced in the United States District Court for the District of Massachusetts (the District Court) alleging violations of Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act), was partially dismissed on August 23, 2018. In particular, the District Court granted the motion to dismiss the claims under Sections 11 and 15 of the Securities Act, finding that the plaintiff failed to plead a false or misleading statement in the IPO registration statement. The District Court did not address the claims under Sections 10(b) and 20(a) of the Exchange Act because, as a result of the dismissal of the claims under the Securities Act, the lead plaintiff lacked standing to pursue those claims. Because the action in the District Court was styled as a class action, the District Court permitted the plaintiff to file a supplemental memorandum concerning standing or a motion to appoint a substitute or supplemental plaintiff. On September 10, 2018, the plaintiff sought leave to amend his complaint to add a new plaintiff that purportedly has standing to pursue Exchange Act claims, and the Company opposed the motion to amend on September 24, 2018. Superior Court Case The two actions commenced in the Superior Court of the Commonwealth of Massachusetts, Suffolk County (the Superior Court), were consolidated and stayed in December 2017. As of September 30, 2018 , a motion to dismiss was outstanding before the Superior Court. For information regarding developments after September 30, 2018 , see Note 11 - Subsequent Events. Based on information currently available and the early stage of the litigation, the Company is unable to reasonably estimate a possible loss or range of possible losses, if any, with regard to these lawsuits; therefore, no litigation reserve has been recorded in the Company's consolidated balance sheets as of September 30, 2018 . The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is probable that a loss will be incurred and the amount of the loss is reasonably estimable. |
Research Collaboration Agreemen
Research Collaboration Agreement and License Agreement | 9 Months Ended |
Sep. 30, 2018 | |
Research and Development [Abstract] | |
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT | NOTE 7:- RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT On May 16, 2016, the Company entered into a Research Collaboration Agreement (“Collaboration Agreement”) and an Exclusive License Agreement (“License Agreement”) with Harvard. The Research Collaboration Agreement was amended on May 1, 2017 and April 1, 2018 (as amended, the "Collaboration Agreement"), and the Exclusive License Agreement was amended on April 1, 2018 (as amended, the "License Agreement"), to extend the term of the Collaboration Agreement by one year to May 16, 2022 and reallocate the Company’s quarterly installment payments to Harvard through such date, and to make certain technical changes. Under the Collaboration Agreement, Harvard and the Company have agreed to collaborate on research regarding the development of lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, which are intended to treat stroke, multiple sclerosis, mobility limitations for the elderly and other medical applications. The Company has committed to pay in quarterly installments for the funding of this research, subject to a minimum funding commitment under applicable circumstances. The Collaboration Agreement will expire on May 16, 2022. Under the Harvard License Agreement, Harvard has granted the Company an exclusive, worldwide royalty-bearing license under certain patents of Harvard relating to lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, a royalty-free license under certain related know-how and the option to obtain a license under certain inventions conceived under the joint research collaboration. The Harvard License Agreement requires the Company to pay Harvard an upfront fee, reimbursements for expenses that Harvard incurred in connection with the licensed patents, royalties on net sales and several milestone payments contingent upon the achievement of certain product development and commercialization milestones. The Harvard License Agreement will continue in full force and effect until the expiration of the last-to-expire valid claim of the licensed patents. As of September 30, 2018, in light of the achievement of a milestone, the Company recorded a liability which is included in the total expenses recorded during the three and nine months ended September 30, 2018. The Company continues to evaluate the likelihood that other milestones will be achieved on a quarterly basis. Moreover, s ince such royalties are dependent on future product sales which are neither determinable nor reasonably estimable, these royalty payments are not recorded on condensed consolidated balance sheet as of . The Company's total payment obligation under the Collaboration Agreement and the Harvard License Agreement is $6.5 million, some of which is subject to a minimum funding commitment under applicable circumstances as indicated above. The Company has recorded expense in the amount of $92 thousand and $896 thousand which is part of the total payment obligation indicated above, as research and development expenses related to the Harvard License Agreement and to the Collaboration Agreement for the three and nine months ended September 30, 2018, respectively. No withholding tax was deducted from the Company's payments to Harvard in respect of the Collaboration Agreement and License Agreement since this is not taxable income in Israel in accordance with Section 170 of the Israel Income Tax Ordinance 1961-5721. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8:- SHAREHOLDERS’ EQUITY a. Share option plans: As of September 30, 2018 , and December 31, 2017 , the Company had reserved 1,499,886 a nd 1,301,521 ordinary shares, respectively, for issuance to the Company’s and its affiliates’ respective employees, directors, officers and consultants pursuant to equity awards granted under the Company's 2014 Incentive Compensation Plan (the “2014 Plan”). Options to purchase ordinary shares generally vest over four years, with certain options to non-employee directors vesting quarterly over one year. Any option that is forfeited or canceled before expiration becomes available for future grants under the 2014 Plan. The fair value for options granted during the nine months ended September 30, 2018 and September 30, 2017 was estimated at the date of the grant using a Black-Scholes-Merton option pricing model with the following assumptions: Nine Months Ended September 30, 2018 2017 Expected volatility 57% - 61% 56% - 58% Risk-free rate 2.74% - 2.83% 1.78% - 2.07% Dividend yield —% —% Expected term (in years) 6.11 5.31-6.11 Share price $1.02- $1.15 $1.3- $2.1 The fair value of restricted share units (“RSUs”) granted is determined based on the price of the Company's ordinary shares on the date of grant. A summary of employee options to purchase ordinary shares and RSUs during the nine months ended September 30, 2018 is as follows: Nine Months Ended September 30, 2018 Number Average exercise price Average remaining contractual life (in years) (1) Aggregate intrinsic value (in thousands) Options and RSUs outstanding at the beginning of the period 1,846,797 $ 1.86 6.33 $ 586 Options granted 662,427 1.09 RSUs granted 510,803 — Options exercised (2) — — RSUs vested (2) (216,703 ) — RSUs forfeited (84,304 ) — Options forfeited (87,146 ) 7.31 Options and RSUs outstanding at the end of the period 2,631,874 $ 1.33 6.49 $ 663 Options exercisable at the end of the period 1,053,787 $ 2.33 4.29 $ 1 (1) Calculation of weighted average remaining contractual term does not include RSUs, which have an indefinite contractual term. (2) During the nine months ended September 30, 2018 , the aggregate number of ordinary shares that were issued pursuant to RSUs that became vested and options that were exercised on a net basis was 214,864 ordinary shares. The weighted average grant date fair value of options granted during the nine months ended September 30, 2018 and September 30, 2017 was $0.61 and $1.10 , respectively. The weighted average grant date fair value of RSUs granted during the nine months ended September 30, 2018 and September 30, 2017 was $1.09 and $2.01 , respectively. The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders that hold options with positive intrinsic value exercised their options on the last date of the exercise period. No options were exercised during the nine months ended September 30, 2018 , and the total intrinsic value of options exercised during the nine months ended September 30, 2017 was $29 thousand . As of September 30, 2018 , there were $2.3 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's 2012 Equity Incentive Plan and its 2014 Plan. This cost is expected to be recognized over a period of approximately 2.0 years. The number of options and RSUs outstanding as of September 30, 2018 is set forth below, with options separated by range of exercise price. Range of exercise price Options and RSUs outstanding as of September 30, 2018 Weighted average remaining contractual life (years) (1) Options exercisable as of September 30, 2018 Weighted average remaining contractual life (years) (1) RSUs only 778,867 — — — $0.82 31,806 1.42 31,806 1.42 $1.02 - $1.32 985,755 7.59 328,328 3.61 $1.35 - $2.10 737,106 5.16 603,284 4.38 $7.30 - $8.07 66,941 7.30 59,948 7.33 $9.22 - $10.98 14,046 7.58 13,483 7.58 $20.77 - $20.97 17,353 6.22 16,938 6.22 2,631,874 6.49 1,053,787 4.29 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. b. Share-based awards to non-employee consultants: The Company granted 63,867 fully vested RSUs during the nine months ended September 30, 2018 to a non-employee consultant. As of September 30, 2018 , there are no outstanding options or RSUs held by non-employee consultants. c. Warrants to purchase ordinary shares: The following table summarizes information about warrants outstanding and exercisable as of September 30, 2018 : Issuance date Warrants outstanding Exercise Warrants Contractual term (number) (number) July 14, 2014 (1) — $ 10.08 — July 13, 2018 December 30, 2015 (2) 119,295 $ 9.64 119,295 See footnote (2) November 1, 2016 (3) 2,437,500 $ 4.75 2,437,500 November 1, 2021 December 28, 2016 (4) 47,717 $ 9.64 47,717 See footnote (4) 2,604,512 2,604,512 (1) Represents warrants to purchase ordinary shares at an exercise price of $10.08 per share, which were granted on July 14, 2014 as part of our series E investment round. Those warrants expired on July 14, 2018 . (2) Represents shares issuable upon the exercise of warrants to purchase ordinary shares at an exercise price of $9.64 per share, which were granted on December 31, 2015 to Kreos in connection with a loan made by Kreos to us and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all the assets or shares of us to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of September 30, 2018 . (3) Represents warrants issued as part of our follow-on offering in November 2016. The exercise price and the number of ordinary shares into which the warrants may be exercised are subject to adjustment upon certain corporate events, including stock splits, reverse stock splits, combinations, stock dividends, recapitalizations, reorganizations and certain other events. Our board of directors may also determine to make such adjustments to the exercise price and number of ordinary shares to be issued upon exercise based on similar events, including the granting of stock appreciation rights, phantom stock rights or other rights with equity features. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. (4) Represents warrants to purchase 47,717 ordinary shares that were issued as part of the $8.0 million drawdown under the Loan Agreement that occurred on December 28, 2016. See footnote 2 for exercisability terms. d. Share-based compensation expense for employees and non-employees: The Company recognized non-cash share-based compensation expense for both employees and non-employees in the consolidated statements of operations as follows (in thousands): Nine Months Ended September 30, 2018 2017 Cost of revenues $ 11 $ 57 Research and development, net 330 344 Sales and marketing, net 352 585 General and administrative 1,649 1,611 Total $ 2,342 $ 2,597 e. At-the-market offering program: On May 10, 2016, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Piper Jaffray, pursuant to which it may offer and sell, from time to time, ordinary shares having an aggregate offering price of up to $25 million , through Piper Jaffray acting as its agent. As of September 30, 2018 the Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period. Subject to the terms and conditions of the Equity Distribution Agreement, Piper Jaffray will use its commercially reasonable efforts to sell on the Company’s behalf all of the ordinary shares requested to be sold by the Company, consistent with its normal trading and sales practices. Piper Jaffray may also act as principal in the sale of ordinary shares under the Equity Distribution Agreement. Sales may be made under the Company's registration statement on Form S-3, which was declared effective on May 9, 2016 (the “Form S-3”), in what may be deemed “at-the-market” equity offerings as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “ATM Offering Program”). Sales may be made directly on or through the Nasdaq Capital Market, the existing trading market for the Company's ordinary shares, to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or any other method permitted by law, including in privately negotiated transactions. Piper Jaffray is entitled to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold through it as agent under the Equity Distribution Agreement. Where Piper Jaffray acts as principal in the sale of ordinary shares under the Equity Distribution Agreement, such rate of compensation will not apply, but in no event will the total compensation of Piper Jaffray, when combined with the reimbursement of Piper Jaffray for the out-of-pocket fees and disbursements of its legal counsel, exceed 8.0% of the gross proceeds received from the sale of the ordinary shares. The Company is not required to sell any of its ordinary shares at any time. During the nine months ended September 30, 2018 , the Company issued and sold 1,247,172 ordinary shares at an average price of $ 1.08 per share under its ATM Offering Program. The gross proceeds to the Company were approximately $1.4 million , and the net aggregate proceeds after deducting commissions, fees and offering expenses in the amount of $ 237 thousand were approximately $1.1 million . As a result, from the inception of the ATM Offering Program in May 2016 until September 30, 2018 , the Company had sold 7,552,318 ordinary shares under the ATM Offering Program for gross proceeds of approximately $15.7 million and net proceeds to the Company of approximately $14.6 million (after commissions, fees and expenses). Additionally, as of that date, the Company had paid Piper Jaffray compensation of approximately $471 thousand and had incurred total expenses of approximately $1.1 million in connection with the ATM Offering Program. f. Timwell investment agreement: On March 6, 2018, the Company entered into an investment agreement with Timwell Corporation Limited, a Hong Kong corporation (“Timwell”), as amended on May 15, 2018 (the "Investment Agreement"), pursuant to which the Company agreed to issue to Timwell, in three different tranches, an aggregate of 16,000,000 ordinary shares in return for aggregate gross proceeds of $20 million. The closing of each tranche is subject to certain closing conditions. The closing of the first tranche (the "First Tranche Closing") took place on May 15, 2018, upon which Timwell received 4,000,000 ordinary shares for an aggregate purchase price of $5,000,000, and Timwell and the Company signed a registration rights agreement in the form attached to the Investment Agreement. The net aggregate proceeds of the First Tranche Closing after deducting fees and other related expenses in the amount of approximately $705 thousands were approximately $4.3 million. The remaining investment is to occur in two tranches, including $10 million for the issuance to Timwell of 8,000,000 ordinary shares (the “Second Tranche”) and $5 million for the issuance to Timwell of 4,000,000 ordinary shares (the “Third Tranch”). The closing of the second and third tranches is subject to specified closing conditions, including, with respect to the second tranche, the signing of a license agreement and a supply agreement and the formation of the China JV (the “China JV”) based on the JV Framework Agreement, and, with respect to the third tranche, the successful production of certain ReWalk products by the China JV. The second tranche closing was initially expected to occur by July 1, 2018 and the third tranche closing was initially expected to occur by December 31, 2018 and no later than April 1, 2019. While we are still in discussions with Timwell, due to the different jurisdictions involved, new positions taken by the counterparty on certain key commercial points, and certain technical and administrative delays relating to governmental approvals in China, there is a significant risk that we and Timwell will not reach the required milestones in order to complete the closings of the second and third tranches and receive the gross proceeds of $10.0 million and $5.0 million, respectively. Although we remain in dialogue with RealCan Ambrum Healthcare Industry Enterprise (Limited Partnership), Timwell’s affiliate (RealCan), and have discussed with RealCan various alternatives to the original investment agreement, we are also evaluating alternative paths with different groups to penetrate the Chinese market. For more information, see Note 13 to our audited consolidated financial statements in our 2017 Form 10-K. In May 2018, the Company entered into a fee and release agreement with Canaccord Genuity LLC ("Canaccord Genuity") requiring the Company to pay to Canaccord Genuity, in connection with a settlement, in addition to certain cash amounts, (i) $125 thousand in ordinary shares of the Company after the closing of the First Tranche of the Timwell transaction and (ii) $225 thousand in ordinary shares of the Company after the closing of the Second Tranche (the "Second Tranche Closing") of the Timwell transaction (or such lower amount if the Second Tranche Closing is less than $10.0 million). The price per share used for calculation of the number of ordinary shares issued by the Company to Canaccord Genuity is based on the volume weighted average price of the Company’s ordinary shares as reported on the Nasdaq Capital Market for the five consecutive trading days prior to the date of issuance. The Company is also obligated to pay $100 thousand in cash following the closing of the Third Tranche (the "Third Tranche Closing") of $5.0 million (or such lower amount if the Third Tranche Closing is less than $5.0 million). Following the closing of the first tranche of the Timwell transaction in May 15, 2018, the Company issued 117,891 ordinary shares to Canaccord Genuity. In connection with the First Tranche Closing, on May 15, 2018, the Company also amended its exclusive distribution agreement with Yaskawa Electric Corporation ("Yaskawa"), dated September 24, 2013, to terminate the distribution rights granted to Yaskawa in China (including Hong Kong and Macau), as required by the Investment Agreement. |
Financial Expenses, Net
Financial Expenses, Net | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
FINANCIAL EXPENSES, NET | NOTE 9:- FINANCIAL EXPENSES, NET The components of financial expenses, net were as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency transactions and other $ (13 ) $ (37 ) $ 26 $ (113 ) Financial expenses related to loan agreement with Kreos 414 510 1,364 1,932 Bank commissions 4 6 22 24 $ 405 $ 479 $ 1,412 $ 1,843 |
Geographic Information and Majo
Geographic Information and Major Customer and Product Data | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | NOTE 10:- GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Summary information about geographic areas: ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from selling systems and services (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues based on customer’s location : Israel $ — $ — $ — $ — United States 962 801 3,231 4,242 Europe 553 931 1,567 1,996 Asia-Pacific 2 — 10 — Latin America — — 58 — Africa 100 — 100 — Total revenues $ 1,617 $ 1,732 $ 4,966 $ 6,238 September 30, December 31, 2018 2017 Long-lived assets by geographic region (*): Israel $ 216 $ 298 United States 381 342 Germany 131 200 $ 728 $ 840 (*) Long-lived assets are comprised of property and equipment, net. September 30, December 31, 2018 2017 Major customer data as a percentage of total revenues: Customer A 47.7 % 35.2 % |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11:- SUBSEQUENT EVENTS Dismissed Superior Court Case In the two securities class actions consolidated in the Superior Court, the court requested additional briefing, to be submitted by October 29, 2018, concerning the effect that the August 23, 2018 dismissal of the Securities Act claims by the District Court should have on its decision on the outstanding motion to dismiss before it. In November 2018, the two actions were voluntarily dismissed with prejudice, after the District Court partially dismissed the related claims on August 23, 2018 and the parties entered a stipulation of dismissal with prejudice. Pending District Court Case The remaining District Court case has been partially dismissed. For more information, see Note 6 - Commitments and Contingent Liabilities - Legal Claims. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | b. Revenue Recognition The Company generates revenues from sales of products. The Company sells its products directly to end customers and through distributors. The Company sells its products to private individuals (who finance the purchases by themselves, through fundraising or reimbursement coverage from insurance companies), rehabilitation facilities and distributors. On January 1, 2018, we adopted Topic 606 using the modified retrospective method for contracts that were not completed as of January 1, 2018. Under the modified retrospective method, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. This adjustment did not have a material impact on our condensed consolidated financial statements. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605"). The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products or services. Revenue is measured as the amount of consideration to which we expect to be entitled in exchange for transferring products or providing services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer A contract with a customer exists when (i) the Company enters into a written agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. As a result of the Company's adoption of this standard, the majority of the amounts that were historically classified as bad debt expense, primarily related to self-payers customers, are now considered an implicit price concession in determining net revenue. Accordingly, the Company recognized uncollectible balances associated with self-payers customers as a reduction of the transaction price and therefore as a reduction in net revenues when historically these amounts were classified as bad debt expense within general and administrative expenses. Shipping and handling costs charged to customers are included in net sales. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, we do not offer extended payment terms beyond one year to customers. As such, we do not adjust our consideration for financing arrangements. 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time, once the customer has obtained the legal title to the items purchased or service provided. For systems sold to rehabilitation facilities, the Company includes training and considers the elements in the arrangement to be a single performance obligation. In accordance with ASC 606, the Company has concluded that the training is essential to the functionality of the Company’s systems. Therefore the Company recognizes revenue for the system and training only after delivery in accordance with the agreement delivery terms to the customer and after the training has been completed. For sales of Personal systems to end users, and for sales of Personal or Rehabilitation systems to third party distributors, the Company does not provide training to the end user as this training is completed by the Rehabilitation centers or by the distributor that have previously completed the ReWalk Training program. Therefore the Company recognizes revenue in such sales upon delivery. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. The Company generally does not grant a right of return for its products. There have been a few occasions in which the Company experienced a return of its products. Therefore, the Company records reductions to revenue for expected future product returns based on the Company’s historical experience. Disaggregation of Revenues Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Units placed $ 1,544 $ 1,656 $ 4,744 $ 6,025 Spare parts and warranties 73 76 222 213 Total Revenues $ 1,617 $ 1,732 $ 4,966 $ 6,238 Units placed We currently offer two products: ReWalk Personal and ReWalk Rehabilitation. ReWalk Personal is currently designed for everyday use by paraplegic individuals at home and in their communities, and is custom fitted for each user. ReWalk Rehabilitation is currently designed for use by paraplegia patients in the clinical rehabilitation environment, where it provides individuals access to valuable exercise and therapy. It also enables individuals to evaluate their capacity for using ReWalk Personal in the future. Units placed includes revenue from sales of a ReWalk Personal or ReWalk Rehabilitation. We also offer a Rent-to-Purchase model in which we recognize revenue according to the agreed rental monthly fee. For units placed, we transfer control and recognize a sale or a rental revenue when title has passed to our customer. Each unit placed is considered an independent, unbundled performance obligation. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. For spare part sales, we transfer control and recognize a sale when title has passed to our customer. Each part sold is considered an independent, unbundled performance obligation. Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. In the beginning of 2018, we updated our service policy to include a five- year warranty compared to a period of two years that were included in the past for parts and services. The first two years are considered as assurance type warranty and the additional period is considered an extended service arrangement, which is a service type warranty. An assurance type warranty is not accounted for as separate performance obligations under the revenue model. A service type warranty is either sold with a unit or separately for units for which the warranty has expired. Revenue is then recognized ratably over the life of the warranty. Contract balances September 30, December 31, 2018 2017 Trade receivable, net $ 1,163 $ 1,103 Deferred revenues (1) $ 577 $ 385 (1)$106 thousand of December 31, 2017 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2018. The Company has applied the practical expedient allowed within the guidance to expense sales commissions when incurred as the amortization period would be for one year or less. Typical timing of payment The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. Typical payment terms are based on payment terms as established in our contracts. For some contracts we may be entitled to receive an advance payment. Transaction price allocated to remaining performance obligations For the nine months ended September 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company’s unfilled performance obligations as of September 30, 2018 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $577 thousand, which is fulfilled over one to five years. |
Recent Accounting Pronouncements | c. Recent Accounting Pronouncements: Share Based Compensation Cash Flows On November 17, 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” This ASU requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are to be included with cash and cash equivalents when reconciling the beginning of period and end of period amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 on January 1, 2018 and it did not have a material impact on its accounting and disclosures. Recent Accounting Pronouncements Not Yet Adopted Leases Income Taxes Income Tax Accounting Implications of the Tax Cuts and Jobs Act |
Concentrations of Credit Risks | d. Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. September 30, December 31, 2018 2017 Customer A 59 % *) Customer B *) 17 % Customer C *) 14 % Customer D *) 10 % *) Less than 10% The Company’s trade receivables are geographically diversified and derived primarily from sales to customers in various countries, mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its distributors based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. As of September 30, 2018 and December 31, 2017, trade receivables are presented net of allowance for doubtful accounts in the amount of $109 thousand and $125 thousand, respectively, and net of sales return reserve of $105 thousand as of September 30, 2018 and December 31, 2017. |
Warranty provision | e. Warranty provision: The Company provided a two-year standard warranty for its products. In the beginning of 2018, the Company updated its service policy for new devices sold to include five-year warranties. The Company determined that the first two years of warranty is an assurance-type warranty and records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. US Dollars in thousands Balance as of December 31, 2017 $ 488 Provision 190 Usage (261 ) September 30, 2018 $ 417 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of disaggregation of revenues | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Units placed $ 1,544 $ 1,656 $ 4,744 $ 6,025 Spare parts and warranties 73 76 222 213 Total Revenues $ 1,617 $ 1,732 $ 4,966 $ 6,238 |
Schedule of trade receivables and deferred revunues | September 30, December 31, 2018 2017 Trade receivable, net $ 1,163 $ 1,103 Deferred revenues (1) $ 577 $ 385 1) $106 thousand of December 31, 2017 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2018. |
Schedule of concentration of credit risk | September 30, December 31, 2018 2017 Customer A 59 % *) Customer B *) 17 % Customer C *) 14 % Customer D *) 10 % *) Less than 10% |
Schedule of product warranty liability | US Dollars in thousands Balance as of December 31, 2017 $ 488 Provision 190 Usage (261 ) September 30, 2018 $ 417 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventories | September 30, December 31, 2018 2017 Finished products 2,472 3,643 $ 2,472 $ 3,643 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments | 2018 $ 152 2019 576 2020 584 2021 583 2022 592 And Thereafter 1,078 Total $ 3,565 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Black-Scholes-Merton option pricing model assumptions | Nine Months Ended September 30, 2018 2017 Expected volatility 57% - 61% 56% - 58% Risk-free rate 2.74% - 2.83% 1.78% - 2.07% Dividend yield —% —% Expected term (in years) 6.11 5.31-6.11 Share price $1.02- $1.15 $1.3- $2.1 |
Schedule of employee options to purchase ordinary shares and RSUs | Nine Months Ended September 30, 2018 Number Average exercise price Average remaining contractual life (in years) (1) Aggregate intrinsic value (in thousands) Options and RSUs outstanding at the beginning of the period 1,846,797 $ 1.86 6.33 $ 586 Options granted 662,427 1.09 RSUs granted 510,803 — Options exercised (2) — — RSUs vested (2) (216,703 ) — RSUs forfeited (84,304 ) — Options forfeited (87,146 ) 7.31 Options and RSUs outstanding at the end of the period 2,631,874 $ 1.33 6.49 $ 663 Options exercisable at the end of the period 1,053,787 $ 2.33 4.29 $ 1 (1) Calculation of weighted average remaining contractual term does not include RSUs, which have an indefinite contractual term. (2) During the nine months ended September 30, 2018 , the aggregate number of ordinary shares that were issued pursuant to RSUs that became vested and options that were exercised on a net basis was 214,842 ordinary shares. |
Schedule of options and RSUs outstanding | Range of exercise price Options and RSUs outstanding as of September 30, 2018 Weighted average remaining contractual life (years) (1) Options exercisable as of September 30, 2018 Weighted average remaining contractual life (years) (1) RSUs only 778,867 — — — $0.82 31,806 1.42 31,806 1.42 $1.02 - $1.32 985,755 7.59 328,328 3.61 $1.35 - $2.10 737,106 5.16 603,284 4.38 $7.30 - $8.07 66,941 7.30 59,948 7.33 $9.22 - $10.98 14,046 7.58 13,483 7.58 $20.77 - $20.97 17,353 6.22 16,938 6.22 2,631,874 6.49 1,053,787 4.29 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
Schedule of warrants outstanding and exercisable | Issuance date Warrants outstanding Exercise Warrants Contractual term (number) (number) July 14, 2014 (1) — $ 10.08 — July 13, 2018 December 30, 2015 (2) 119,295 $ 9.64 119,295 See footnote (2) November 1, 2016 (3) 2,437,500 $ 4.75 2,437,500 November 1, 2021 December 28, 2016 (4) 47,717 $ 9.64 47,717 See footnote (4) 2,604,512 2,604,512 (1) Represents warrants to purchase ordinary shares at an exercise price of $10.08 per share, which were granted on July 14, 2014 as part of our series E investment round. Those warrants expired on July 14, 2018 . (2) Represents shares issuable upon the exercise of warrants to purchase ordinary shares at an exercise price of $9.64 per share, which were granted on December 31, 2015 to Kreos in connection with a loan made by Kreos to us and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all the assets or shares of us to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of September 30, 2018. (3) Represents warrants issued as part of our follow-on offering in November 2016. The exercise price and the number of ordinary shares into which the warrants may be exercised are subject to adjustment upon certain corporate events, including stock splits, reverse stock splits, combinations, stock dividends, recapitalizations, reorganizations and certain other events. Our board of directors may also determine to make such adjustments to the exercise price and number of ordinary shares to be issued upon exercise based on similar events, including the granting of stock appreciation rights, phantom stock rights or other rights with equity features. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. (4) Represents warrants to purchase 47,717 ordinary shares that were issued as part of the $8.0 million drawdown under the Loan Agreement that occurred on December 28, 2016. See footnote 2 for exercisability terms. |
Schedule of non-cash share-based compensation expense | Nine Months Ended September 30, 2018 2017 Cost of revenues $ 11 $ 57 Research and development, net 330 344 Sales and marketing, net 352 585 General and administrative 1,649 1,611 Total $ 2,342 $ 2,597 |
Financial Expenses, Net (Tables
Financial Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of financial expenses, net | Three Months Ended Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency transactions and other $ (13 ) $ (37 ) $ 26 $ (113 ) Financial expenses related to loan agreement with Kreos 414 510 1,364 1,932 Bank commissions 4 6 22 24 $ 405 $ 479 $ 1,412 $ 1,843 |
Geographic Information and Ma_2
Geographic Information and Major Customer and Product Data (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of revenues within geographic areas | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues based on customer’s location : Israel $ — $ — $ — $ — United States 962 801 3,231 4,242 Europe 553 931 1,567 1,996 Asia-Pacific 2 — 10 — Latin America — — 58 — Africa 100 — 100 — Total revenues $ 1,617 $ 1,732 $ 4,966 $ 6,238 |
Schedule of long-lived assets by geographic region | September 30, December 31, 2018 2017 Long-lived assets by geographic region (*): Israel $ 216 $ 298 United States 381 342 Germany 131 200 $ 728 $ 840 (*) Long-lived assets are comprised of property and equipment, net. |
Schedule of major customer data as a percentage of total revenues | September 30, December 31, 2018 2017 Major customer data as a percentage of total revenues: Customer A 47.7 % 35.2 % |
General (Details)
General (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | May 10, 2016 | |
General (Textual) | |||
Number of shares sold | 7,552,318 | ||
Average price | $ 2.08 | ||
Gross proceed amount | $ 1,400 | ||
Accumulated deficit | $ (147,900) | $ (131,220) | |
ATM Offering Program [Member] | |||
General (Textual) | |||
Number of shares sold | 1,247,172 | ||
Average price | $ 1.08 | ||
Gross proceed amount | $ 15,700 | ||
Net aggregate proceeds | 14,600 | ||
Aggregate amount of fees and offering expenses | 1,100 | ||
Aggregate amount of fees | 237 | ||
Aggregate amount of offering expenses | 1,100 | ||
Maximum amount which can be raised under ATM offering program | $ 25,000 | $ 25,000 | |
Limitation on sales, description | <font style="font: 10pt Times New Roman, Times, Serif; color: Black">The Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period.</font></p>" id="sjs-B18"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">The Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period.</font></p> |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total Revenues | $ 1,617 | $ 1,732 | $ 4,966 | $ 6,238 |
Units placed [Member] | ||||
Total Revenues | 1,544 | 1,656 | 4,744 | 6,025 |
Spare parts and warranties [Member] | ||||
Total Revenues | $ 73 | $ 76 | $ 222 | $ 213 |
Significant Accounting Polici_5
Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Trade receivable, net | $ 1,163 | $ 1,103 | |
Deferred revenues | [1] | $ 577 | $ 385 |
[1] | $106 thousand of December 31, 2017 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2018. |
Significant Accounting Polici_6
Significant Accounting Policies (Details 2) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | |||
Customer A [Member] | ||||
Concentration of credit risk | 59.00% | [1] | ||
Customer B [Member] | ||||
Concentration of credit risk | [1] | 17.00% | ||
Customer C [Member] | ||||
Concentration of credit risk | [1] | 14.00% | ||
Customer D [Member] | ||||
Concentration of credit risk | [1] | 10.00% | ||
[1] | Less than 10% |
Significant Accounting Polici_7
Significant Accounting Policies (Details 3) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Warranty provision: | |
Balance as of December 31, 2017 | $ 488 |
Provision | 190 |
Usage | (261) |
September 30, 2018 | $ 417 |
Significant Accounting Polici_8
Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies (Textual) | ||
Allowance for doubtful accounts | $ 109 | $ 125 |
Net of sales return reserve | 105 | $ 105 |
Deferred revenues recognized | $ 106 | |
Estimated revenue expected to be recognized, description | </p> <p style="font: 10pt/120% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 9pt Times New Roman, Times, Serif; color: #000000">The estimated revenue expected to be recognized in the future related to the service type warranty amounts to $577 thousand, which is fulfilled over one to five years.</font></p>" id="sjs-B7"><p style="margin: 0pt"></p> <p style="font: 10pt/120% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 9pt Times New Roman, Times, Serif; color: #000000">The estimated revenue expected to be recognized in the future related to the service type warranty amounts to $577 thousand, which is fulfilled over one to five years.</font></p> |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 2,472 | $ 3,643 |
Inventories | $ 2,472 | $ 3,643 |
Loan Agreement with Kreos and_2
Loan Agreement with Kreos and Related Warrant to Purchase Ordinary Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 03, 2018 | Jun. 09, 2017 | Dec. 30, 2015 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Loan Agreement with Kreos and Related Warrant to Purchase Ordinary Shares (Textual) | ||||||||
Loss on extinguishment of debt | $ 313 | |||||||
Interest expense | $ 414 | $ 1,400 | ||||||
Interest payments, description | Kreos V agreed to defer $0.5 million in principal and interest payments under the Kreos V Loan Agreement and Kreos V Convertible Note until October 2, 2018. We are in discussions with Kreos V regarding deferral of up to $1.0 million in additional payments under the Kreos V Loan Agreement until early 2019. | |||||||
Secured Debt [Member] | ||||||||
Loan Agreement with Kreos and Related Warrant to Purchase Ordinary Shares (Textual) | ||||||||
Proceeds from long term loan | $ 20,000 | |||||||
Loan term | 36 months | |||||||
Annual interest rate | 10.75% | |||||||
Extended repayment term | 36 months | |||||||
Required proceeds from issuance of common stock required for repayment period to be extended | $ 20,000 | |||||||
Loan term initial period | 24 months | |||||||
Loan Amendment [Member] | Secured Debt [Member] | ||||||||
Loan Agreement with Kreos and Related Warrant to Purchase Ordinary Shares (Textual) | ||||||||
Proceeds from long term loan | $ 20,000 | $ 20,000 | ||||||
Extended repayment term | 3 years | |||||||
Outstanding principal | $ 17,200 | |||||||
Portion of principal subject to repayment extension | $ 3,000 | |||||||
Convertible debt, number of shares that may be converted (in shares) | 2,523,660 | |||||||
Conversion price (in USD per share) | $ 1.268 | |||||||
Convertible debt, amount that principal may be reduced | $ 3,000 | |||||||
Outstanding principal not subject to conversion | 14,200 | |||||||
End of loan payments | $ 200 | |||||||
End of loan payments, number of shares that may be converted (up to) | 157,729 | |||||||
Loss on extinguishment of debt | $ 313 | |||||||
Interest payments, description | <font style="font: 10pt Times New Roman, Times, Serif">The Company had raised more than $20 million and therefore the repayment period was extended by an additional 12 months to 36 months.</font></p>" id="sjs-E27"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The Company had raised more than $20 million and therefore the repayment period was extended by an additional 12 months to 36 months.</font></p> | |||||||
Loan agreement repayment terms, description | <font style="font: 10pt Times New Roman, Times, Serif">The repayment period will be extended to 36 months if the Company raises $20 million or more in connection with the issuance of shares of its capital stock (including debt securities convertible into shares of the Company’s capital stock).</font></p>" id="sjs-C28"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The repayment period will be extended to 36 months if the Company raises $20 million or more in connection with the issuance of shares of its capital stock (including debt securities convertible into shares of the Company’s capital stock).</font></p> |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 152 |
2,019 | 576 |
2,020 | 584 |
2,021 | 583 |
2,022 | 592 |
And Thereafter | 1,078 |
Total | $ 3,565 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Commitments and Contingent Liabilities (Textual) | |
Non-cancelable outstanding obligations | $ 936 |
Maximum penalties payable on early release of agreement | 57 |
Total fund received | $ 1,970 |
Lease expiration, term | These leases expire between 2018 and 2025. |
Other long-term assets | $ 839 |
Initial public offering [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Description of conversion ratio | Ordinary shares in a conversion ratio of 1 to 1. |
IIA [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Royalty bearing grants | $ 1,570 |
Royalties paid | 50 |
Contingent liability | $ 1,500 |
Percentage of grant received | 100.00% |
IIA [Member] | Minimum [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Percentage of obligation to pay royalties | 3.00% |
IIA [Member] | Maximum [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Percentage of obligation to pay royalties | 3.50% |
IIA [Member] | Series A Preferred Stock [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Amount received in consideration of preferred shares | $ 400 |
Convertible preferred shares | shares | 5,237 |
BIRD [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Total fund received | $ 500 |
Percentage of obligation to pay royalties | 5.00% |
BIRD [Member] | Maximum [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Percentage of obligation to pay royalties | 150.00% |
RRL and RRG [Member] | |
Commitments and Contingent Liabilities (Textual) | |
Lease expiration, term | <font style="font: 10pt Times New Roman, Times, Serif">RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates between 2018 and 2021</font></p>" id="sjs-B37"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates between 2018 and 2021</font></p> |
Research Collaboration Agreem_2
Research Collaboration Agreement and License Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Research Collaboration Agreement and License Agreement (Textual) | ||||
Research and development expenses | $ 1,597 | $ 1,618 | $ 5,645 | $ 4,433 |
Harvard License Agreement and Collaboration Agreement [Member] | ||||
Research Collaboration Agreement and License Agreement (Textual) | ||||
Total payment obligation | 6,500 | |||
Research and development expenses | $ 92 | $ 896 | ||
Research collaboration agreement expire date | May 16, 2022 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | ||
Expected term (in years) | 6 years 1 month 9 days | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 57.00% | 56.00% |
Risk-free rate | 2.74% | 1.78% |
Expected term (in years) | 5 years 3 months 22 days | |
Share price | $ 1.02 | $ 1.3 |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 61.00% | 58.00% |
Risk-free rate | 2.83% | 2.07% |
Expected term (in years) | 6 years 1 month 9 days | |
Share price | $ 1.15 | $ 2.1 |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1) - Employee Stock Option and Restricted Stock Units RSUs [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Number | |||
Options and RSU's outstanding at the beginning of the period | 1,846,797 | ||
Options granted | 662,427 | ||
RSUs granted | 510,803 | ||
Options exercised | [1] | ||
RSUs vested | [1] | (216,703) | |
RSUs forfeited | (84,304) | ||
Options forfeited | (87,146) | ||
Options and RSU's outstanding at the end of the period | 2,631,874 | 1,846,797 | |
Options exercisable at the end of the period | 1,053,787 | ||
Average exercise price | |||
Options and RSUs outstanding at the beginning of the period | $ 1.86 | ||
Options granted | 1.09 | ||
RSUs granted | |||
Options exercised | [1] | ||
RSUs vested | [1] | ||
Options forfeited | |||
RSUs forfeited | 7.31 | ||
Options and RSUs outstanding at the end of the period | 1.33 | $ 1.86 | |
Options exercisable at the end of the period | $ 2.33 | ||
Average remaining contractual life (in years) | |||
Options and RSUs outstanding | [2] | 6 years 5 months 27 days | 6 years 3 months 29 days |
Options exercisable at the end of the period | [2] | 4 years 3 months 15 days | |
Aggregate intrinsic value (in thousands) | |||
Options and RSUs outstanding at beginning of the period | $ 586 | ||
Options and RSUs outstanding at the end of the period | 663 | $ 586 | |
Options exercisable at the end of the period | $ 1 | ||
[1] | During the nine months ended September 30, 2018, the aggregate number of ordinary shares that were issued pursuant to RSUs that became vested and options that were exercised on a net basis was 214,842 ordinary shares. | ||
[2] | Calculation of weighted average remaining contractual term does not include RSUs, which have an indefinite contractual term. |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - $ / shares | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Employee Stock Option [Member] | Exercise Price Range One [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price | $ 0.82 | ||
Options outstanding | 31,806 | ||
Options outstanding weighted average remaining contractual life (years) | 1 year 5 months 1 day | ||
Options exercisable | 31,806 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 1 year 5 months 1 day | |
Employee Stock Option [Member] | Exercise Price Range Two [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of exercise price, minimum | $ 1.02 | ||
Range of exercise price, maximum | $ 1.32 | ||
Options outstanding | 985,755 | ||
Options outstanding weighted average remaining contractual life (years) | 7 years 9 months 22 days | ||
Options exercisable | 328,328 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 3 years 10 months 3 days | |
Employee Stock Option [Member] | Exercise Price Range Three [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of exercise price, minimum | $ 1.35 | ||
Range of exercise price, maximum | $ 2.10 | ||
Options outstanding | 737,106 | ||
Options outstanding weighted average remaining contractual life (years) | 5 years 1 month 27 days | ||
Options exercisable | 603,284 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 4 years 4 months 17 days | |
Employee Stock Option [Member] | Exercise Price Range Four [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of exercise price, minimum | $ 7.30 | ||
Range of exercise price, maximum | $ 8.07 | ||
Options outstanding | 66,941 | ||
Options outstanding weighted average remaining contractual life (years) | 7 years 3 months 19 days | ||
Options exercisable | 59,948 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 7 years 3 months 29 days | |
Employee Stock Option [Member] | Exercise Price Range Five [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of exercise price, minimum | $ 9.22 | ||
Range of exercise price, maximum | $ 10.98 | ||
Options outstanding | 14,046 | ||
Options outstanding weighted average remaining contractual life (years) | 7 years 6 months 29 days | ||
Options exercisable | 13,483 | ||
Options exercisable weighted average remaining contractual life (years) | 7 years 6 months 29 days | ||
Employee Stock Option [Member] | Exercise Price Range Six [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of exercise price, minimum | $ 20.77 | ||
Range of exercise price, maximum | $ 20.97 | ||
Options outstanding | 17,353 | ||
Options outstanding weighted average remaining contractual life (years) | 6 years 2 months 19 days | ||
Options exercisable | 16,938 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 6 years 2 months 19 days | |
Employee Stock Option And Restricted Stock Units Rsu [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options outstanding weighted average remaining contractual life (years) | 6 years 5 months 27 days | ||
Options exercisable | 1,053,787 | ||
Options exercisable weighted average remaining contractual life (years) | [1] | 4 years 3 months 15 days | |
Options and RSUs outstanding | 2,631,874 | 1,846,797 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
RSUs outstanding | 778,867 | ||
[1] | Calculation of weighted average remaining contractual term does not include RSUs, which have an indefinite contractual term. |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) | 9 Months Ended | |
Sep. 30, 2018$ / sharesshares | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 2,604,512 | |
Warrants exercisable | 2,604,512 | |
July 14, 2014 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | [1] | |
Exercise price per warrant | $ / shares | $ 10.08 | [1] |
Warrants exercisable | [1] | |
Warrants term | Jul. 13, 2018 | [1] |
December 30, 2015 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 119,295 | [2] |
Exercise price per warrant | $ / shares | $ 9.64 | [2] |
Warrants exercisable | 119,295 | [2] |
November 1, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 2,437,500 | [3] |
Exercise price per warrant | $ / shares | $ 4.75 | [3] |
Warrants exercisable | 2,437,500 | [3] |
Warrants term | Nov. 1, 2021 | [3] |
December 28, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 47,717 | [4] |
Exercise price per warrant | $ / shares | $ 9.64 | [4] |
Warrants exercisable | 47,717 | [4] |
[1] | Represents warrants to purchase ordinary shares at an exercise price of $10.08 per share, which were granted on July 14, 2014 as part of our series E investment round. Those warrants expired on July 14, 2018 | |
[2] | Represents shares issuable upon the exercise of warrants to purchase ordinary shares at an exercise price of $9.64 per share, which were granted on December 31, 2015 to Kreos in connection with a loan made by Kreos to us and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all the assets or shares of us to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of September 30, 2018. | |
[3] | Represents warrants issued as part of our follow-on offering in November 2016. The exercise price and the number of ordinary shares into which the warrants may be exercised are subject to adjustment upon certain corporate events, including stock splits, reverse stock splits, combinations, stock dividends, recapitalizations, reorganizations and certain other events. Our board of directors may also determine to make such adjustments to the exercise price and number of ordinary shares to be issued upon exercise based on similar events, including the granting of stock appreciation rights, phantom stock rights or other rights with equity features. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. | |
[4] | Represents warrants to purchase 47,717 ordinary shares that were issued as part of the $8.0 million drawdown under the Loan Agreement that occurred on December 28, 2016. See footnote 2 for exercisability terms. |
Shareholders' Equity (Details 4
Shareholders' Equity (Details 4) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash share-based compensation expense | $ 2,342 | $ 2,597 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash share-based compensation expense | 11 | 57 |
Research and development, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash share-based compensation expense | 330 | 344 |
Sales and marketing, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash share-based compensation expense | 352 | 585 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash share-based compensation expense | $ 1,649 | $ 1,611 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 15, 2018 | Dec. 28, 2016 | May 10, 2016 | Dec. 31, 2015 | Jul. 14, 2014 | May 31, 2018 | Mar. 06, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Shareholders' Equity (Textual) | ||||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 9,309 | |||||||||
Expected term of shares | 6 years 1 month 9 days | |||||||||
Sale of stock price per share | $ 0.08 | |||||||||
ATM Offering Program [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Aggregate offering price | $ 25,000 | $ 25,000 | ||||||||
Stock issuance costs under equity distribution agreement as a percent of gross proceeds | 3.00% | |||||||||
Issuance of ordinary shares (in shares) | 1,158,573 | |||||||||
Price per share of shares sold under ATM offering program (in USD per share) | $ 1.08 | |||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, gross of issuance expenses | $ 1,400 | |||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | 237 | |||||||||
Issuance expenses | $ 123 | |||||||||
Sale of ordinary shares | 1,247,172 | |||||||||
Proceeds percentage of sale of the ordinary shares | 8.00% | |||||||||
Limitation on sales, description | <font style="font: 10pt Times New Roman, Times, Serif; color: Black">The Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period.</font></p>" id="sjs-I17"><p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">The Company could raise up to a remaining $9.3 million under its ATM Offering Program, subject to a limitation on sales under the Company’s effective Form S-3 limiting sales under such Form S-3 to $13.7 million during any 12-month period.</font></p> | |||||||||
ATM Offering Program One [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 14,600 | |||||||||
Issuance expenses | $ 1,100 | |||||||||
Sale of ordinary shares | 7,552,318 | |||||||||
Compensation payment | $ 471 | |||||||||
Gross proceeds | $ 15,600 | |||||||||
Series E investment [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Exercise price per share | $ 10.08 | |||||||||
Warrants grant date | Jul. 14, 2014 | |||||||||
Canacord Gunuity Inc [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Issuance of ordinary shares (in shares) | 117,891 | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Weighted average grant date fair value, restricted stock units (in USD per share) | $ 1.09 | $ 2.01 | ||||||||
Weighted average grant date fair value, options (in USD per share) | $ 0.61 | $ 1.10 | ||||||||
Vested and options exercised net of ordinary shares | 214,864 | |||||||||
Restricted Stock Units (RSUs) [Member] | Nonemployee Consultants [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
RSUs granted (in shares) | 63,867 | |||||||||
Share option plan [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Total intrinsic value of options exercised | $ 29 | |||||||||
Award vesting period, description | Options to purchase ordinary shares generally vest over four years, with certain options to non-employee directors vesting quarterly over one year. </p>" id="sjs-I43"><p style="font: 10pt/115% inherit,serif; margin: 0 0 10pt">Options to purchase ordinary shares generally vest over four years, with certain options to non-employee directors vesting quarterly over one year. </p> | |||||||||
Shares reserved for future issuance (in shares) | 1,499,886 | 1,301,521 | ||||||||
Unrecognized cost of shares | $ 2,300 | |||||||||
Expected term of shares | 2 years | |||||||||
Timwell investment agreement [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Aggregate number of ordinary shares | 16,000,000 | |||||||||
Gross proceeds | $ 20,000 | |||||||||
Fees and other related expenses | 705 | |||||||||
Net aggregate proceeds of after deducting fees and other related expenses | $ 4,300 | |||||||||
Description of tranche consisting | The Company entered into a fee and release agreement with Canaccord Genuity LLC ("Canaccord Genuity") requiring the Company to pay to Canaccord Genuity, in connection with a settlement, in addition to certain cash amounts, (i) $125 thousand in ordinary shares of the Company after the closing of the First Tranche of the Timwell transaction and (ii) $225 thousand in ordinary shares of the Company after the closing of the Second Tranche (the "Second Tranche Closing") of the Timwell transaction (or such lower amount if the Second Tranche Closing is less than $10.0 million). The price per share used for calculation of the number of ordinary shares issued by the Company to Canaccord Genuity is based on the volume weighted average price of the Company’s ordinary shares as reported on the Nasdaq Capital Market for the five consecutive trading days prior to the date of issuance. The Company is also obligated to pay $100 thousand in cash following the closing of the Third Tranche (the "Third Tranche Closing") of $5.0 million (or such loweramount if the Third Tranche Closing is less than $5.0 million). Following the closing of the first tranche of the Timwell transaction in May 15, 2018, the Company issued 117,891 ordinary shares to Canaccord Genuity. | The Company entered into an investment agreement with Timwell Corporation Limited, a Hong Kong corporation (“Timwell”), as amended on May 15, 2018 (the "Investment Agreement"), pursuant to which the Company agreed to issue to Timwell, in three different tranches, an aggregate of 16,000,000 ordinary shares in return for aggregate gross proceeds of $20 million. The closing of each tranche is subject to certain closing conditions. The closing of the first tranche (the "First Tranche Closing") took place on May 15, 2018, upon which Timwell received 4,000,000 ordinary shares for an aggregate purchase price of $5,000,000, and Timwell and the Company signed a registration rights agreement in the form attached to the Investment Agreement. The net aggregate proceeds of the First Tranche Closing after deducting fees and other related expenses in the amount of approximately $705 thousands were approximately $4.3 million. The remaining investment is to occur in two tranches, including $10 million for the issuance to Timwell of 8,000,000 ordinary shares (the “Second Tranche”) and $5 million for the issuance to Timwell of 4,000,000 ordinary shares (the “Third Tranch”). The closing of the second and third tranches is subject to specified closing conditions, including, with respect to the second tranche, the signing of a license agreement and a supply agreement and the formation of the China JV (the “China JV”) based on the JV Framework Agreement, and, with respect to the third tranche, the successful production of certain ReWalk products by the China JV. The second tranche closing was initially expected to occur by July 1, 2018 and the third tranche closing was initially expected to occur by December 31, 2018 and no later than April 1, 2019. While we are still in discussions with Timwell, due to the different jurisdictions involved, new positions taken by the counterparty on certain key commercial points, and certain technical and administrative delays relating to governmental approvals in China, there is a significant risk that we and Timwell will not reach the required milestones in order to complete the closings of the second and third tranches and receive the gross proceeds of $10.0 million and $5.0 million, respectively.</p>" id="sjs-H53"><p style="margin: 0pt">The Company entered into an investment agreement with Timwell Corporation Limited, a Hong Kong corporation (“Timwell”), as amended on May 15, 2018 (the "Investment Agreement"), pursuant to which the Company agreed to issue to Timwell, in three different tranches, an aggregate of 16,000,000 ordinary shares in return for aggregate gross proceeds of $20 million. The closing of each tranche is subject to certain closing conditions. The closing of the first tranche (the "First Tranche Closing") took place on May 15, 2018, upon which Timwell received 4,000,000 ordinary shares for an aggregate purchase price of $5,000,000, and Timwell and the Company signed a registration rights agreement in the form attached to the Investment Agreement. The net aggregate proceeds of the First Tranche Closing after deducting fees and other related expenses in the amount of approximately $705 thousands were approximately $4.3 million. The remaining investment is to occur in two tranches, including $10 million for the issuance to Timwell of 8,000,000 ordinary shares (the “Second Tranche”) and $5 million for the issuance to Timwell of 4,000,000 ordinary shares (the “Third Tranch”). The closing of the second and third tranches is subject to specified closing conditions, including, with respect to the second tranche, the signing of a license agreement and a supply agreement and the formation of the China JV (the “China JV”) based on the JV Framework Agreement, and, with respect to the third tranche, the successful production of certain ReWalk products by the China JV. The second tranche closing was initially expected to occur by July 1, 2018 and the third tranche closing was initially expected to occur by December 31, 2018 and no later than April 1, 2019. While we are still in discussions with Timwell, due to the different jurisdictions involved, new positions taken by the counterparty on certain key commercial points, and certain technical and administrative delays relating to governmental approvals in China, there is a significant risk that we and Timwell will not reach the required milestones in order to complete the closings of the second and third tranches and receive the gross proceeds of $10.0 million and $5.0 million, respectively.</p> | ||||||||
Kreos Capital [Member] | ||||||||||
Shareholders' Equity (Textual) | ||||||||||
Issuance of ordinary shares (in shares) | 47,717 | |||||||||
Exercise price per share | $ 9.64 | |||||||||
Warrants exercisable, description | Currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all the assets or shares of us to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction.</p>" id="sjs-E58"><p style="margin: 0pt">Currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all the assets or shares of us to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction.</p> | |||||||||
Drawdown amount under loan agreement | $ 8,000 |
Financial Expenses, Net (Detail
Financial Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transactions and other | $ (13) | $ (37) | $ 26 | $ (113) |
Financial expenses related to loan agreement with Kreos | 414 | 510 | 1,364 | 1,932 |
Bank commissions | 4 | 6 | 22 | 24 |
Financial expenses, net | $ 405 | $ 479 | $ 1,412 | $ 1,843 |
Geographic Information and Ma_3
Geographic Information and Major Customer and Product Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 1,617 | $ 1,732 | $ 4,966 | $ 6,238 |
Israel [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | ||||
United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 962 | 801 | 3,231 | 4,242 |
Europe [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 553 | 931 | 1,567 | 1,996 |
Asia-Pacific [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 2 | 10 | ||
Latin America [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 58 | |||
Africa [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 100 | $ 100 |
Geographic Information and Ma_4
Geographic Information and Major Customer and Product Data (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 728 | $ 840 | |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | 216 | 298 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | 381 | 342 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 131 | $ 200 |
[1] | Long-lived assets are comprised of property and equipment, net. |
Geographic Information and Ma_5
Geographic Information and Major Customer and Product Data (Details 2) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Total revenues [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 47.70% | 35.20% |
Geographic Information and Ma_6
Geographic Information and Major Customer and Product Data (Details Textual) | 9 Months Ended |
Sep. 30, 2018segment | |
Geographic Information and Major Customer and Product Data (Textual) | |
Number of reportable segments | 1 |