Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document And Entity Information | |
Entity Registrant Name | RADA ELECTRONIC INDUSTRIES LTD |
Entity Central Index Key | 0000761238 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Entity Address, Address Line One | 7 Giborei Israel Street |
Entity Address, City or Town | Netanya |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 4250407 |
CONDENSED INTERIM CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 29,908 | $ 13,754 | |
Restricted cash | 495 | 380 | |
Trade receivables, net | 18,933 | 13,765 | |
Contract assets (Note 4) | 1,045 | 1,269 | |
Other accounts receivable and prepaid expenses | 2,412 | 1,673 | |
Inventories (Note 5) | 26,474 | 17,196 | |
Total current assets | 79,267 | 48,037 | |
NON CURRENT ASSETS: | |||
Long-term receivable and other deposits | 63 | 97 | |
Property, plant and equipment, net (Note 6) | 11,282 | 9,127 | |
Operating lease right-of-use assets | 7,585 | 7,654 | |
Total non-current assets | 18,930 | 16,878 | |
Total assets | 98,197 | 64,915 | |
CURRENT LIABILITIES: | |||
Short term loan (Note 8c) | 455 | ||
Trade payables | 15,756 | 7,661 | |
Other accounts payable and accrued expenses | 6,378 | 5,572 | |
Advances from customers (Note 4) | 751 | 1,563 | |
Contract liabilities (Note 4) | 6 | 196 | |
Operating lease short-term liabilities | 1,594 | 1,240 | |
Total current liabilities | 24,940 | 16,232 | |
LONG-TERM LIABILITIES: | |||
Accrued severance pay and other long-term liabilities | 668 | 764 | |
Operating lease long-term liabilities | 6,073 | 6,499 | |
Total long-term liabilities | 6,741 | 7,263 | |
SHAREHOLDERS EQUITY: | |||
Share capital (Note 9) - Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares at June 30, 2020 and December 31, 2019; Issued and outstanding: 43,485,065 at June 30, 2020 and 38,456,693 at December 31, 2019. | 437 | 394 | |
Additional paid-in capital | 144,193 | 120,017 | [1] |
Accumulated deficit | (78,114) | (78,991) | |
Total RADA shareholders' equity | 66,516 | 41,420 | |
Total liabilities and shareholders' equity | $ 98,197 | $ 64,915 | |
[1] | ***Reclassified |
CONDENSED INTERIM CONSOLIDATE_2
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | ₪ 0.03 | ₪ 0.03 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 43,485,065 | 38,456,693 |
Ordinary shares, shares outstanding | 43,485,065 | 38,456,693 |
CONDENSED INTERIM CONSOLIDATE_3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Total revenues | $ 32,577 | $ 18,714 |
Total cost of revenues | 20,980 | 11,975 |
Gross profit | 11,597 | 6,739 |
Operating expenses: | ||
Research and development, net | 4,239 | 3,040 |
Marketing and selling | 2,385 | 1,870 |
General and administrative | 4,293 | 3,230 |
Total operating expenses | 10,917 | 8,140 |
Operating income (loss) | 680 | (1,401) |
Total financial income, net (Note 10) | 197 | 43 |
Net income (loss) | 877 | (1,358) |
Net loss attributable to non controlling shareholders | (309) | |
Net income (loss) attributable to RADA Electronic Industries' shareholders | $ 877 | $ (1,049) |
Basic and diluted net income (loss) from continuing operations per ordinary share | $ 0.02 | $ (0.03) |
Basic and diluted net income from discontinued operations per ordinary share | 0 | 0 |
Basic and diluted net income (loss) per ordinary share | $ 0.02 | $ (0.03) |
Weighted average number of ordinary shares used for computing basic net income (loss) per share | 43,041,405 | 38,017,281 |
Weighted average number of ordinary shares used for computing diluted net income (loss) per share | 44,002,634 | 38,570,290 |
Products [Member] | ||
Total revenues | $ 31,812 | $ 18,364 |
Total cost of revenues | 20,840 | 11,899 |
Services [Member] | ||
Total revenues | 765 | 350 |
Total cost of revenues | $ 140 | $ 76 |
CONDENSED INTERIM CONSOLIDATE_4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Interim Consolidated Statements Of Comprehensive Income | ||
Net income (loss) | $ 877 | $ (1,358) |
Other comprehensive loss, net: | ||
Change in foreign currency translation adjustment | ||
Total comprehensive loss | 877 | (1,358) |
Comprehensive loss attributable to non-controlling interest | ||
Comprehensive loss attributable to RADA Electronic Industries' shareholders | $ 877 | $ (1,358) |
CONDENSED INTERIM CONSOLIDATE_5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Number of Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] | Total | ||
Balance at Dec. 31, 2018 | $ 386 | $ 118,568 | $ 220 | $ (76,961) | $ (352) | $ 41,861 | ||
Balance, shares at Dec. 31, 2018 | 37,516,891 | |||||||
Share-based compensation to employees | 558 | 558 | ||||||
Issuance of shares, net | $ 4 | 1,496 | 1,500 | |||||
Issuance of shares, net shares | 550,133 | |||||||
Net income (loss) | (1,049) | (309) | (1,358) | |||||
Other comprehensive loss | (220) | (220) | ||||||
Balance at Jun. 30, 2019 | $ 390 | 120,622 | (78,010) | $ (661) | 42,341 | |||
Balance, shares at Jun. 30, 2019 | 38,067,024 | |||||||
Balance at Dec. 31, 2019 | $ 394 | 120,017 | [1] | [1] | (78,991) | 41,420 | ||
Balance, shares at Dec. 31, 2019 | 38,456,693 | |||||||
Share-based compensation to employees | 682 | 682 | ||||||
Issuance of shares, net | $ 41 | 23,494 | 23,535 | |||||
Issuance of shares, net shares | 4,819,052 | |||||||
Exercise of option | $ 2 | 2 | ||||||
Exercise of option, shares | 209,320 | |||||||
Net income (loss) | 877 | 877 | ||||||
Balance at Jun. 30, 2020 | $ 437 | $ 144,193 | $ (78,114) | $ 66,516 | ||||
Balance, shares at Jun. 30, 2020 | 43,485,065 | |||||||
[1] | ***Reclassified |
CONDENSED INTERIM CONSOLIDATE_6
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 877 | $ (1,358) |
Adjustments required to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,014 | 539 |
Severance pay, net | (96) | 50 |
Operating lease right-of-use assets | 506 | |
Share-based compensation to employees | 682 | 558 |
Increase in trade receivables, net | (5,168) | (881) |
Operating lease long-term-liabilities | (511) | |
Increase in other accounts receivable and prepaid expenses | (748) | (178) |
Decrease (Increase) in contract assets | 224 | (497) |
Increase (decrease) in contract liabilities | (190) | 188 |
Increase in inventories | (9,629) | (4,917) |
Increase (decrease) in trade payables | 7,685 | (401) |
Increase (decrease) in other accounts payable and accrued expenses | (3) | 142 |
Net cash used in operating activities | (5,357) | (6,755) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (2,406) | (629) |
Increase (decrease) in long-term receivables and deposits | 42 | (23) |
Net cash used in investing activities | (2,364) | (652) |
Cash flows from financing activities: | ||
Issuance of shares, net | 23,535 | 1,500 |
Proceeds from short term loan | 455 | |
Net cash provided by financing activities | 23,990 | 1,500 |
Increase (decrease) in cash and cash equivalents and restricted cash | 16,269 | (5,907) |
Cash and cash equivalents and restricted cash at the beginning of the period | 14,134 | 21,236 |
Cash and cash equivalents and restricted cash at the end of the period | 30,403 | 15,329 |
(a) Supplemental disclosures of cash flow activities: | ||
Net cash paid during the period for income taxes | 13 | 11 |
Net cash paid during the period for interest | ||
(b) Non-cash transactions | ||
Purchase of property, plant and equipment in credit | 411 | 436 |
Transfer of inventory to property, plant and equipment | 352 | 30 |
Proceeds from sale of discontinued operations, net | 845 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 438 | 2,032 |
Cash and cash equivalents | 29,908 | 14,949 |
Restricted cash | $ 495 | $ 380 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. RADA Electronic Industries Ltd. (the "Company") is a global defense technology company focused on proprietary In January 2018, the Company incorporated RADA Sensors Inc. (“RSI”), a fully owned subsidiary of the Company in Delaware. As of December 31, 2019, RSI is the holder of 100% of the interests in RADA Technologies LLC, also organized in January 2018. When organized, RSI was the owner of 75% of RADA Technologies LLC. During July 2019, RSI purchased the minority 25% interest in RADA Technologies LLC from an investor. The Company is organized and operates as one operating segment. b. Discontinued operations: In December 2016, the Company committed to a plan to sell its test and repair services activity (provided through CACS, the Company’s then 80% owned subsidiary, in order to focus on its core business. In October 2018, a transaction with a non-controlling interest occurred and as a result, as of December 31, 2018, the Company owned 100% of CACS, which resulted in a $254 decrease in additional paid in capital. In December 2018, the Company signed an agreement to sell its ownership interest in CACS for approximately $1,500. On March 14, 2019, the ownership was transferred to the buyer. As of December 31, 2019, the Company received 100% of the consideration, which is currently held in a trust account in China. The net consideration of $730 is recorded under other accounts receivables and prepaid expenses in the consolidated balance sheets as of December 31, 2019. The Company expects to receive the full amount by December 31, 2020. The Company recorded in 2018 a provision of $159 for the expected loss resulting from the sale, which amount was included in accrued expenses in the consolidated balance sheets and in the net loss from discontinued operations in the consolidated statements of operations. In December 2019, the Company recorded an additional expected loss of $115, mainly due to exchange rate differences relating to the consideration held in a trust account in China, which decreased the net consideration presented under other accounts receivables and prepaid expenses in the consolidated balance sheets and was included in the net loss from discontinued operations in the consolidated statements of operations. F - 9 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 1:- GENERAL (Cont.) c. Liquidity and Capital Resources: In January 2019, the Company’s shareholders approved the sale of 545,454 Ordinary shares to DBSI Investements Ltd at a price per share of $2.75 (approximately $1.5 million in the aggregate). In January 2020, the Company completed an underwritten public offering of 4,819,052 of its ordinary shares at a price of $5.25 per share, for a total consideration of $25,300 and net proceeds of approximately $23,500. Since incorporation, the Company has incurred an accumulated deficit of $78,114. As of June 30, 2020, the Company's cash position (cash and cash equivalents) totaled $29,908 Management believes that its cash and cash equivalents are sufficient for the Company to meet its obligations as they come due at least for a period of twelve months from the date of these unaudited condensed interim consolidated financial statements. |
UNAUDITED INTERIM FINANCIAL INF
UNAUDITED INTERIM FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED INTERIM FINANCIAL INFORMATION | NOTE 2:- UNAUDITED INTERIM FINANCIAL INFORMATION The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments except as otherwise discussed) considered necessary for a fair presentation have been included. Operating results for the six month period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements of the Company as of December 31, 2019, set forth in the Company's Annual Report on Form 20-F as filed with the U.S. Securities and Exchange Commission on April 7, 2020, except as discussed below: a. Accounting for share-based compensation: The Company accounts for share-based payment in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees on the date of grant using an option-pricing model. The value of the portion of the award is recognized as an expense over the requisite service periods in the Company's statement of operations. The Company account for forfeitures as they occur. F - 10 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The fair value for the Company's stock options granted to employees was estimated using a Black-Scholes option-pricing model with the following weighted average assumptions: Six months ended June 30, 2020 2019 Dividend yield 0 % 0 % Risk-free interest rate 0.31%-1.61 % 2.44 % Expected term (in years) 4.22 4.22 Volatility 55.89%-58.17 % 66.69 % The dividend yield assumption is based on the Company's historical and expectation of future dividend payouts and may be subject to changes in the future. The computation of expected volatility is based on realized historical share price volatility of the Company's share. The risk-free interest rate assumption is the implied yield currently available on the U.S treasury yield zero-coupon issues with a remaining term equal to the expected life term of the Company's options. The expected term of the options represents the period of time that the options are expected to be outstanding and is based on the simplified method, as allowed under Staff Accounting Bulletin No. 110, which is the mid point between the vesting date and the end of the contractual of the option. b. Recently issued and adopted accounting standards : In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. The Company adopted Topic 326 effective January 1, 2020, based on the composition of the Company’s trade receivables and Contract assets. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. c. Reclassification Certain amounts in prior years' financial statements have been reclassified to conform to the current interim's presentation. The reclassification had no effect on previously reported net income or shareholders' equity as of June 30, 2020. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 4:- REVENUES In accordance with ASC 606 "Revenue From Contracts With Customers", unbilled accounts receivable were reclassified as contract assets and advance payments and billings in excess of revenue were reclassified as contract liabilities as of June 30, 2020 and December 31, 2019, none of which resulted in a change to total current assets or total current liabilities. The following table presents the significant changes in the advances from customers balance during the six months ended June 30, 2020: Six months ended June 30 2020 2019 Unaudited Balance, beginning of the period $ 1,563 $ 727 New performance obligations 82 224 Reclassification to revenue as a result of satisfying performance obligation (894 ) (84 ) Balance, end of the period $ 751 $ 867 The following table summarizes our contract assets and liabilities balances: Six months ended June 30 2020 2019 Unaudited Contract assets at January 1, 2020 $ 1,269 $ 899 Contract assets at June 30, 2020 1,045 1,396 Change in contract assets - increase (decrease) (224 ) 497 Contract liabilities at January 1, 2020 196 366 Contract liabilities at June 30, 2020 6 554 Change in contract liabilities - increase (decrease) $ (190 ) $ 188 Net change $ 34 $ 309 For the six months ended June 30, 2020, 97% of the amount that was previously included in the beginning balance of contract liabilities was recognized. F - 12 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 4:- REVENUES (Cont.) The Company’s unsatisfied performance obligations as of June 30, 2020 and the estimated revenue expected to be recognized in the future related to long-term fixed price contracts amounts to $583. The Company expect to recognize approximately 72% of this amount as revenues during the next 12 months and the remainder thereafter. The Company elected to apply the optional exemption under ASC 606 paragraph 10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet. For information regarding disaggregated revenues, please refer to Note 12. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5:- INVENTORIES June 30, December 31, 2020 2019 Unaudited Raw materials and components $ 20,280 $ 11,990 *) Work in progress, net 5,092 3,884 Finished goods 1,102 1,322 *) $ 26,474 $ 17,196 *) Reclassified |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6:- PROPERTY, PLANT AND EQUIPMENT, NET June 30, December 31, 2020 2019 Unaudited Cost: Factory building $ 1,722 $ 2,081 Machinery and equipment *) 13,592 14,641 Office furniture and equipment 930 1,089 Leasehold improvements 2,238 2,004 18,482 19,815 Accumulated depreciation: Factory building 1,743 2,058 Machinery and equipment 5,133 8,043 Office furniture and equipment 191 389 Leasehold improvements 133 198 7,200 10,688 Depreciated cost $ 11,282 $ 9,127 *) As of June 30, 2020 and December 31, 2019, $423 and $459 relate to construction-in-process of production infrastructure, respectively. F - 13 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 6:- PROPERTY, PLANT AND EQUIPMENT, NET (Cont.) Depreciation expense amounted to $1,014 and $539 for the six months period ended June 30, 2020 and 2019, respectively. The total cost of the fixed assets that disposed by the Company during the six months period ended June 30, 2020 amounts to $4,502, and it's depreciated cost amounts to $0. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 7:- FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures its financial instruments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The carrying amount of cash and cash equivalents, restricted deposits, trade receivables, other accounts receivable, bank credit and current maturities of long term loans, trade payables and other accounts payable approximate their fair value due to the short-term maturity of these instruments. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. F - 14 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 7:- FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont.) The following table presents the Company's liabilities measured at fair value on a recurring basis at June 30, 2020 and 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Other accounts receivable and prepaid expenses: Foreign currencies derivatives $ - $ 202 $ - $ 202 Total $ - $ 202 $ - $ 202 June 30, 2019 Level 1 Level 2 Level 3 Total Financial liabilities: Other accounts payable and accrued expenses: Foreign currencies derivatives $ - $ 14 $ - $ 14 Total $ - $ 14 $ - $ 14 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES a. The Company's research and development efforts have been partially financed through royalty-bearing programs The total amount of royalties charged to operations for the six months period ended June 30, 2020 and 2019 was approximately $123 and $0, respectively. As of June 30, 2020, the Company's contingent liability for royalties, that are linked to active programs, net of royalties paid or accrued, totaled approximately $123. b. The Company provides bank guarantees to some of its customers and others in the ordinary course of business. The F - 15 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) c. In April 2020, the RADA Technologies LLC received approximately $ |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 9:- SHAREHOLDERS' EQUITY a. Share capital: Ordinary shares confer upon their holders voting rights, the right to receive cash dividends and the right to share in excess assets upon liquidation of the Company. In June 2018, the Company's shareholders approved an increase of the Company's authorized share capital by NIS 1,875,000 and as a result the authorized share capital is equal to NIS 3,000,000 divided into 100,000,000 Ordinary shares, par value NIS 0.03 each. In January 2020, the Company completed an underwritten public offering of 4,819,052 of its Ordinary shares at a price of $5.25 per share, for a total consideration of $25,300 and net proceeds of approximately $23,500. b. Stock option plans: In April 2015, the Company's Board of Directors adopted the "2015 Share Option Plan" (the "Plan"), which authorized the grant of options to purchase Ordinary shares to officers, directors, consultants and key employees of the Company and its subsidiaries. Options granted under the Plan expire within a maximum of twenty years from adoption of the plan. In January 2019, the Company granted options to its employees to purchase a total of 60,000 Ordinary shares at an exercise price range $2.76 - $2.85 per share. The options will vest as follows: 25% will vest in January 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until January 2023. These options will be exercisable for 48 months following the date of vesting. F - 16 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 9:- SHAREHOLDERS' EQUITY (Cont.) In March 2019, the Company granted options to its officers and employees to purchase a total of 75,000 Ordinary shares at an exercise price of $2.73 per share. The options vest as follows: 25% vested in March 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until March 2023. These options will be exercisable for 48 months following the date of vesting. In May 2019, the Company granted options to one of its employees to purchase a total of 7,500 Ordinary shares at an exercise price of $3.11 per share. The options vest as follows: 25% vested in May 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until May 2023. These options will be exercisable for 48 months following the date of vesting. In August 2019, the Company granted options to its officers and employees to purchase a total of 100,000 and 50,000 Ordinary shares at an exercise price of $3.64 and 4.87 per share, respectively. The options vest as follows: 25% vested in August 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until August 2023. These options will be exercisable for 48 months following the date of vesting. In September 2019, the Company granted options to employees to purchase a total of 15,000 Ordinary shares at exercise prices of between $3.99 to $4.40 per share. The options vest as follows: 25% will vest in September 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until September 2023. These options will be exercisable for 48 months following the date of vesting. In September 2019, the Company granted options to one of its officers to purchase a total of 30,000 Ordinary shares at an exercise price of $4.83 per share. The options vest as follows: 25% will vest in September 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until September 2023. These options will be exercisable for 48 months following the date of vesting. In November 2019, the Company granted options to one of its employees to purchase a total of 17,500 Ordinary shares at an exercise price of $5.25 per share. The options vest as follows: 25% will vest in November 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until November 2023. These options will be exercisable for 48 months following the date of vesting. In December 2019, the Company granted options to officers and employees to purchase a total of 70,000 and 45,000 Ordinary shares at exercise prices of $5.24 and 5.44 per share, respectively. The options vest as follows: 25% will vest in December 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until December 2023. These options will be exercisable for 48 months following the date of vesting. F - 17 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 9:- SHAREHOLDERS' EQUITY (Cont.) In January and February 2020, the Company granted options to its employees to purchase a total of 35,000 and 10,000 Ordinary shares, respectively, at an exercise price range of $5.28 to $5.92 per share. The options vest as follows: 25% will vest in January and February 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until January and February 2024. These options will be exercisable for 48 months following the date of vesting. In March 2020, the Company granted options to one of its officers to purchase a total of 200,000 Ordinary shares at an exercise price of $5.90 per share. The options vest as follows: 25% will vest in March 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until March 2024. These options will be exercisable for 48 months following the date of vesting. In April 2020, the Company's Board of Directors approved the repricing of 342,500 outstanding employee stock options (issued, to 16 employees of the Company), which reduced the exercise price to $3.92 per share from $4.83 to 5.90 per share. The impact of the repricing resulted in an incremental value of the options repriced of approximately $140. During the six months period ended June 30, 2020, the Company recorded $ 9 of such incremental expenses. The remaining $ 131 is expected to be recorded through 2024. In April 2020, the Company granted options to officers and employees to purchase a total of 440,000 Ordinary shares at an exercise price of $3.92 per share. The options vest as follows: 25% will vest in April 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until April 2024. These options will be exercisable for 48 months following the date of vesting. As of June 30, 2020, options to purchase 359,124 Ordinary shares are available for future grant under the Plan. F - 18 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 9:- SHAREHOLDERS' EQUITY (Cont.) A summary of the Company’s activity for options granted to employees and directors under the Plan is as follows: Six months ended June 30, 2020 Unaudited Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate Intrinsic Value Price Outstanding at the beginning of the period 3,110,938 $ 7.6 8.23 $ 7,579 Granted 690,000 4.6 - - Exercised (275,005 ) 1.44 - - Forfeiture (78,437 ) 3.29 - - Outstanding at the end of the period 3,447,496 3.22 8.24 11,437 Exercisable 1,195,933 $ 2.58 7.49 $ 4,735 F - 19 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 9:- SHAREHOLDERS' EQUITY (Cont.) Intrinsic value of exercisable options (the difference between the closing share price of the Company’s Ordinary Shares on the last trading day in the period and the exercise price, multiplied by the number of in-the-money options) represents the amount that would have been received by the option holders had all option holders exercised their options on June 30, 2020. This amount changes based on the fair market value of the Company’s Ordinary shares. As of June 30, 2020, unamortized compensation expenses related to stock options to be recognized over an average time of approximately 4 years is approximately $3,705. During the six months period ended June 30, 2020, the Company recognized compensation expenses related to stock options in the amount of $682, as follows: Six months ended June 30, 2020 2019 Unaudited Cost of revenues $ 122 $ 76 Research and development 178 115 Marketing and selling (18 ) 20 General and administrative 400 347 $ 682 $ 558 |
FINANCIAL INCOME, NET
FINANCIAL INCOME, NET | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
FINANCIAL INCOME, NET | NOTE 10:- FINANCIAL INCOME, NET Six months ended June 30, 2020 2019 Unaudited Income: Foreign currency exchange differences $ 172 $ 79 Interest on cash equivalents and restricted deposits 166 259 338 338 Expenses: Bank commissions and others 22 49 Foreign currency exchange differences 119 246 (141 ) (295 ) Total financial income, net $ 197 $ 43 |
RELATED PARTY BALANCE AND TRANS
RELATED PARTY BALANCE AND TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCE AND TRANSACTIONS | NOTE 11:- RELATED PARTY BALANCE AND TRANSACTIONS In January 2017, the Company’s shareholders approved that in addition to the directors’ fees to be paid to all of the Company’s directors, commencing as of January 1, 2017, the Company will pay DBSI Investements Ltd. (see Note 1c) an additional monthly payment of approximately $4.6 (NIS 17,500) for time devoted to the Company by the Executive Chairman of the Board of Directors, who is also a co-owner of DBSI Investements Ltd. Such payment will increase in the event the Company achieves profitable operations. In 2017, the Company’s consolidated audited financial statements reflected net income (before taxes), so such additional payment increased to approximately $9 (NIS 35) . On June 4, 2020, the Company's General Meeting approved the agreement following the Compensation Committee approval. As of June 30, 2020 and 2019 a total of $60 and $58, respectively, had been paid for the Executive Chairman’s services. Balances with related parties: June 30, December 31, 2020 2019 Accrued expenses $ 49 $ 50 F - 21 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 11:- RELATED PARTY BALANCE AND TRANSACTIONS (Cont.) Related parties’ expenses: Six months ended June 30, 2020 2019 Unaudited Directors and management fees $ 83 $ 94 |
MAJOR CUSTOMERS AND GEOGRAPHIC
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 12:- MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION a. In accordance with Statement of ASC 280, "Segment Reporting", the Company is organized and operates as b. Revenues by geographic areas: Revenues are attributed to geographic area based on the location of the end customers as follows: Six months ended June 30, 2020 2019 Unaudited Israel $ 11,035 $ 6,184 Asia & Australia 1,210 1,838 USA 12,871 7,876 Latin America 527 759 Europe 3,615 379 Italy 3,319 1,678 Total $ 32,577 $ 18,714 F - 22 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 12:- MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Cont.) c. Major customers: Revenues from single customers that exceed 10% of the total revenues in the reported periods as a percentage of total revenues are as follows: Six months ended June 30, 2020 2019 Unaudited % Customer A 6 13 Customer B 12 11 Customer D 5 15 Customer G 13 - Customer H 12 5 Customer I 10 9 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting for share-based compensation | a. Accounting for share-based compensation: The Company accounts for share-based payment in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees on the date of grant using an option-pricing model. The value of the portion of the award is recognized as an expense over the requisite service periods in the Company's statement of operations. The Company account for forfeitures as they occur. F - 10 RADA ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share data) NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The fair value for the Company's stock options granted to employees was estimated using a Black-Scholes option-pricing model with the following weighted average assumptions: Six months ended June 30, 2020 2019 Dividend yield 0 % 0 % Risk-free interest rate 0.31%-1.61 % 2.44 % Expected term (in years) 4.22 4.22 Volatility 55.89%-58.17 % 66.69 % The dividend yield assumption is based on the Company's historical and expectation of future dividend payouts and may be subject to changes in the future. The computation of expected volatility is based on realized historical share price volatility of the Company's share. The risk-free interest rate assumption is the implied yield currently available on the U.S treasury yield zero-coupon issues with a remaining term equal to the expected life term of the Company's options. The expected term of the options represents the period of time that the options are expected to be outstanding and is based on the simplified method, as allowed under Staff Accounting Bulletin No. 110, which is the mid point between the vesting date and the end of the contractual of the option. |
Recently issued and adopted accounting standards | b. Recently issued and adopted accounting standards : In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. The Company adopted Topic 326 effective January 1, 2020, based on the composition of the Company’s trade receivables and Contract assets. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Reclassification | c. Reclassification Certain amounts in prior years' financial statements have been reclassified to conform to the current interim's presentation. The reclassification had no effect on previously reported net income or shareholders' equity as of June 30, 2020. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Stock Options Valuation Assumptions | The fair value for the Company's stock options granted to employees was estimated using a Black-Scholes option-pricing model with the following weighted average assumptions: Six months ended June 30, 2020 2019 Dividend yield 0 % 0 % Risk-free interest rate 0.31%-1.61 % 2.44 % Expected term (in years) 4.22 4.22 Volatility 55.89%-58.17 % 66.69 % |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Advances from Customers | The following table presents the significant changes in the advances from customers balance during the six months ended June 30, 2020: Six months ended June 30 2020 2019 Unaudited Balance, beginning of the period $ 1,563 $ 727 New performance obligations 82 224 Reclassification to revenue as a result of satisfying performance obligation (894 ) (84 ) Balance, end of the period $ 751 $ 867 |
Schedule of Contract Assets and Liabilities | The following table summarizes our contract assets and liabilities balances: Six months ended June 30 2020 2019 Unaudited Contract assets at January 1, 2020 $ 1,269 $ 899 Contract assets at June 30, 2020 1,045 1,396 Change in contract assets - increase (decrease) (224 ) 497 Contract liabilities at January 1, 2020 196 366 Contract liabilities at June 30, 2020 6 554 Change in contract liabilities - increase (decrease) $ (190 ) $ 188 Net change $ 34 $ 309 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, December 31, 2020 2019 Unaudited Raw materials and components $ 20,280 $ 11,990 *) Work in progress, net 5,092 3,884 Finished goods 1,102 1,322 *) $ 26,474 $ 17,196 *) Reclassified |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | June 30, December 31, 2020 2019 Unaudited Cost: Factory building $ 1,722 $ 2,081 Machinery and equipment *) 13,592 14,641 Office furniture and equipment 930 1,089 Leasehold improvements 2,238 2,004 18,482 19,815 Accumulated depreciation: Factory building 1,743 2,058 Machinery and equipment 5,133 8,043 Office furniture and equipment 191 389 Leasehold improvements 133 198 7,200 10,688 Depreciated cost $ 11,282 $ 9,127 *) As of June 30, 2020 and December 31, 2019, $423 and $459 relate to construction-in-process of production infrastructure, respectively. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Schedule of Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company's liabilities measured at fair value on a recurring basis at June 30, 2020 and 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Other accounts receivable and prepaid expenses: Foreign currencies derivatives $ - $ 202 $ - $ 202 Total $ - $ 202 $ - $ 202 June 30, 2019 Level 1 Level 2 Level 3 Total Financial liabilities: Other accounts payable and accrued expenses: Foreign currencies derivatives $ - $ 14 $ - $ 14 Total $ - $ 14 $ - $ 14 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Options Activity | A summary of the Company’s activity for options granted to employees and directors under the Plan is as follows: Six months ended June 30, 2020 Unaudited Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate Intrinsic Value Price Outstanding at the beginning of the period 3,110,938 $ 7.6 8.23 $ 7,579 Granted 690,000 4.6 - - Exercised (275,005 ) 1.44 - - Forfeiture (78,437 ) 3.29 - - Outstanding at the end of the period 3,447,496 3.22 8.24 11,437 Exercisable 1,195,933 $ 2.58 7.49 $ 4,735 |
Schedule of Recognized Stock-based Compensation | During the six months period ended June 30, 2020, the Company recognized compensation expenses related to stock options in the amount of $682, as follows: Six months ended June 30, 2020 2019 Unaudited Cost of revenues $ 122 $ 76 Research and development 178 115 Marketing and selling (18 ) 20 General and administrative 400 347 $ 682 $ 558 |
FINANCIAL INCOME, NET (Tables)
FINANCIAL INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Financial Income, Net | Six months ended June 30, 2020 2019 Unaudited Income: Foreign currency exchange differences $ 172 $ 79 Interest on cash equivalents and restricted deposits 166 259 338 338 Expenses: Bank commissions and others 22 49 Foreign currency exchange differences 119 246 (141 ) (295 ) Total financial income, net $ 197 $ 43 |
RELATED PARTY BALANCE AND TRA_2
RELATED PARTY BALANCE AND TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Balance with Related Parties | Balances with related parties: June 30, December 31, 2020 2019 Accrued expenses $ 49 $ 50 |
Schedule of Related Party Expenses | Related parties’ expenses: Six months ended June 30, 2020 2019 Unaudited Directors and management fees $ 83 $ 94 |
MAJOR CUSTOMERS AND GEOGRAPHI_2
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Areas | Revenues are attributed to geographic area based on the location of the end customers as follows: Six months ended June 30, 2020 2019 Unaudited Israel $ 11,035 $ 6,184 Asia & Australia 1,210 1,838 USA 12,871 7,876 Latin America 527 759 Europe 3,615 379 Italy 3,319 1,678 Total $ 32,577 $ 18,714 |
Schedule of Revenue from Major Customers | Revenues from single customers that exceed 10% of the total revenues in the reported periods as a percentage of total revenues are as follows: Six months ended June 30, 2020 2019 Unaudited % Customer A 6 13 Customer B 12 11 Customer D 5 15 Customer G 13 - Customer H 12 5 Customer I 10 9 |
GENERAL (Details Narrative)
GENERAL (Details Narrative) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2020₪ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2019₪ / shares | Dec. 31, 2019USD ($) | Jul. 31, 2019 | Jun. 30, 2018₪ / shares | Jan. 31, 2018 | Dec. 31, 2016 | |
Loss from sale of subsidiary | $ 115 | |||||||||||||
Percentage of consideration received from transaction | 100.00% | |||||||||||||
Other accounts receivable and prepaid expenses | $ 2,412 | $ 1,673 | ||||||||||||
Accumulated deficit | 78,114 | 78,991 | ||||||||||||
Cash and cash equivalents | $ 14,949 | $ 29,908 | 13,754 | |||||||||||
Net proceeds from underwritten public offering | $ 23,535 | $ 1,500 | ||||||||||||
Issue price | ₪ / shares | ₪ 0.03 | ₪ 0.03 | ₪ 0.03 | |||||||||||
Ordinary Shares Underwritten Public Offering [Member] | ||||||||||||||
Number of ordinary shares issued, shares | shares | 4,819,052 | |||||||||||||
Number of ordinary shares issued, price per share | $ / shares | $ 5.25 | |||||||||||||
Net proceeds from underwritten public offering | $ 23,500 | |||||||||||||
Gross proceeds from underwritten public offering | $ 25,300 | |||||||||||||
CACS [Member] | ||||||||||||||
Ownership percentage | 80.00% | |||||||||||||
Percentage on ownership acquired | 100.00% | |||||||||||||
Decrease of additional paid in capital | $ 254 | |||||||||||||
Proceeds from noncontrolling interests | 150,000 | |||||||||||||
Loss from sale of subsidiary | $ 159 | |||||||||||||
Other accounts receivable and prepaid expenses | $ 730 | |||||||||||||
RADA Sensors Inc [Member] | ||||||||||||||
Ownership percentage | 75.00% | |||||||||||||
RADA Sensors Inc. ownership percentage of RADA Technologies LLC | 100.00% | |||||||||||||
RADA Technologies LLC [Member] | ||||||||||||||
Ownership percentage | 25.00% | |||||||||||||
DBSI [Member] | ||||||||||||||
Number of ordinary shares issued, shares | shares | 545,454 | |||||||||||||
Number of ordinary shares issued, price per share | $ / shares | $ 2.75 | |||||||||||||
Number of ordinary shares issued | $ 15 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value of Stock Options Valuation Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.44% | |
Risk-free interest rate minimum | 0.31% | |
Risk-free interest rate maximum | 1.61% | |
Expected term (in years) | 4 years 2 months 19 days | 4 years 2 months 19 days |
Volatility | 66.69% | |
Volatility minimum | 55.89% | |
Volatility maximum | 58.17% |
REVENUES (Details Narrative)
REVENUES (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Percentage of amount recognized from contract liabilities | 97.00% |
Revenue performance obligations | $ 583 |
Revenue, performance obligation, percentage | 72.00% |
REVENUES - Schedule of Changes
REVENUES - Schedule of Changes in Advances from Customers (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Balance, beginning of the period | $ 1,563 | $ 727 |
New performance obligations | 82 | 224 |
Reclassification to revenue as a result of satisfying performance obligation | (894) | (84) |
Balance, end of the period | $ 751 | $ 867 |
REVENUES - Schedule of Contract
REVENUES - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Contract assets, beginning | $ 1,269 | |
Contract assets, ending | 1,045 | |
Change in contract assets - increase (decrease) | 224 | $ (497) |
Contract liabilities, beginning | 196 | |
Contract liabilities, ending | 6 | |
Change in contract liabilities - increase (decrease) | (190) | 188 |
Contract Assets and Liabilities [Member] | ||
Contract assets, beginning | 1,269 | 899 |
Contract assets, ending | 1,045 | 1,396 |
Change in contract assets - increase (decrease) | (224) | 497 |
Contract liabilities, beginning | 196 | 366 |
Contract liabilities, ending | 6 | 554 |
Change in contract liabilities - increase (decrease) | (190) | 188 |
Net change | $ 34 | $ 309 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Raw materials and components | $ 20,280 | $ 11,990 | [1] |
Work in progress, net | 5,092 | 3,884 | |
Finished goods | 1,102 | 1,322 | [1] |
Inventory net | $ 26,474 | $ 17,196 | |
[1] | ***Reclassified |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment, Net [Abstract] | ||
Depreciation expense | $ 1,014 | $ 539 |
Write-offs of machinery and equipment | $ 4,502 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Total cost | $ 18,482 | $ 19,815 | |
Total accumulated depriciation | 7,200 | 10,688 | |
Depreciated cost | 11,282 | 9,127 | |
Factory Building [Member] | |||
Total cost | 1,722 | 2,081 | |
Total accumulated depriciation | 1,743 | 2,058 | |
Machinery and Equipment [Member] | |||
Total cost | [1] | 13,592 | 14,641 |
Total accumulated depriciation | 5,133 | 8,043 | |
Office Furniture and Equipment [Member] | |||
Total cost | 930 | 1,089 | |
Total accumulated depriciation | 191 | 389 | |
Leasehold Improvements [Member] | |||
Total cost | 2,238 | 2,004 | |
Total accumulated depriciation | $ 133 | $ 198 | |
[1] | As of June 30, 2020 and December 31, 2019, $423 and $459 relate to construction-in-process of production infrastructure, respectively. |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property Plant and Equipment (Details) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment, Net [Abstract] | |||
Construction-in-process of production infrastructure | [1] | $ 423 | $ 459 |
[1] | As of June 30, 2020 and December 31, 2019, $423 and $459 relate to construction-in-process of production infrastructure, respectively. |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Liabilities Measured at Fair Value on a Recurring Basis (Details) - Other accounts receivable and prepaid expenses [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Financial assets: | ||
Foreign currencies derivatives | $ 202 | $ 14 |
Total | 202 | 14 |
Level 1 [Member] | ||
Financial assets: | ||
Foreign currencies derivatives | ||
Total | ||
Level 2 [Member] | ||
Financial assets: | ||
Foreign currencies derivatives | 202 | 14 |
Total | 202 | 14 |
Level 3 [Member] | ||
Financial assets: | ||
Foreign currencies derivatives | ||
Total |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Royalties | $ 123 | $ 0 | |
Contingent liability for royalties | 123 | ||
Total bank guarantees provided to customers and others | $ 395 | ||
Paycheck Protection Program [Member] | |||
Proceeds from Issuance of debt | $ 455 | ||
Debt interest rate | 1.00% | ||
Debt repayment | $ 455 | ||
Israel Innovation Authority [Member] | |||
Grants received percentage | 100.00% | ||
Grants received | $ 5,543 | ||
Israel Innovation Authority [Member] | Minimum [Member] | |||
Royalties payable, percent of sales | 3.00% | ||
Israel Innovation Authority [Member] | Maximum [Member] | |||
Royalties payable, percent of sales | 5.00% |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | |||||||||||||||||||
Apr. 30, 2024USD ($) | Apr. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Feb. 28, 2020USD ($)$ / shares | Jan. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Nov. 30, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | Aug. 31, 2019$ / sharesshares | May 31, 2019$ / sharesshares | Mar. 31, 2019$ / sharesshares | Jan. 31, 2019$ / sharesshares | Jan. 31, 2019$ / sharesshares | Apr. 30, 2015 | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020₪ / shares | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019₪ / sharesshares | Dec. 31, 2019$ / sharesshares | Jun. 30, 2018ILS (₪)₪ / sharesshares | |
Ordinary shares, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||
Ordinary shares, par value | ₪ / shares | ₪ 0.03 | ₪ 0.03 | ₪ 0.03 | ||||||||||||||||||
Shares issued under underwritten public offering | shares | 43,485,065 | 38,456,693 | 38,456,693 | ||||||||||||||||||
Stock-based compensation expense | $ | $ 682 | $ 558 | |||||||||||||||||||
Incremental expenses | $ | 9 | ||||||||||||||||||||
Net proceeds from underwritten public offering | $ | $ 23,535 | $ 1,500 | |||||||||||||||||||
Employees [Member] | |||||||||||||||||||||
Number of stock options shares grant to purchase | shares | 50,000 | 60,000 | |||||||||||||||||||
Stock option exercise price | $ 4.87 | ||||||||||||||||||||
Stock option vesting description | The options vest as follows: 25% vested in August 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until August 2023. | The options will vest as follows: 25% will vest in January 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until January 2023. | |||||||||||||||||||
Employees and Officers [Member] | |||||||||||||||||||||
Offering cost | $ | $ 440,000 | $ 10,000 | $ 35,000 | $ 70,000 | |||||||||||||||||
Number of stock options shares grant to purchase | shares | 75,000 | ||||||||||||||||||||
Stock option exercise price | $ 3.92 | $ 5.92 | $ 5.28 | $ 2.73 | $ 5.24 | ||||||||||||||||
Stock option vesting description | The options vest as follows: 25% will vest in April 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until April 2024. | The options vest as follows: 25% will vest in January and February 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until January and February 2024. | The options vest as follows: 25% will vest in January and February 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until January and February 2024. | The options vest as follows: 25% will vest in December 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until December 2023. | The options vest as follows: 25% vested in March 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until March 2023. | ||||||||||||||||
Employee [Member] | |||||||||||||||||||||
Number of stock options shares grant to purchase | shares | 342,500 | 17,500 | 15,000 | 7,500 | |||||||||||||||||
Stock option exercise price | $ 3.92 | $ 5.25 | $ 3.11 | ||||||||||||||||||
Stock option vesting description | The options vest as follows: 25% will vest in November 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until November 2023. | The options vest as follows: 25% will vest in September 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until September 2023. | The options vest as follows: 25% vested in May 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until May 2023. | ||||||||||||||||||
Incremental value of options repriced | $ | $ 140 | ||||||||||||||||||||
Employee [Member] | Subsequent Event [Member] | |||||||||||||||||||||
Incremental value of options repriced | $ | $ 131 | ||||||||||||||||||||
Officers [Member] | |||||||||||||||||||||
Offering cost | $ | $ 200,000 | ||||||||||||||||||||
Number of stock options shares grant to purchase | shares | 30,000 | 100,000 | |||||||||||||||||||
Stock option exercise price | $ 5.90 | $ 4.83 | $ 3.64 | ||||||||||||||||||
Stock option vesting description | The options vest as follows: 25% will vest in March 2021; and 75% will vest in twelve equal quarterly installments of 6.25% each until March 2024. | The options vest as follows: 25% will vest in September 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until September 2023. | The options vest as follows: 25% vested in August 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until August 2023. | ||||||||||||||||||
Employees and Officers One [Member] | |||||||||||||||||||||
Offering cost | $ | $ 45,000 | ||||||||||||||||||||
Stock option exercise price | 5.44 | ||||||||||||||||||||
Stock option vesting description | The options vest as follows: 25% will vest in December 2020; and 75% will vest in twelve equal quarterly installments of 6.25% each until December 2023. | ||||||||||||||||||||
Employees and Directors [Member] | |||||||||||||||||||||
Number of stock options shares grant to purchase | shares | 690,000 | ||||||||||||||||||||
Stock option exercise price | $ 3.22 | $ 7.6 | |||||||||||||||||||
Stock option vested | shares | 1,195,933 | ||||||||||||||||||||
Unamortized compensation expenses period | 4 years | ||||||||||||||||||||
Unamortized compensation expenses | $ | $ 3,705 | ||||||||||||||||||||
2015 Share Option Plan [Member] | |||||||||||||||||||||
Option expire term | 20 years | ||||||||||||||||||||
Number of shares available for grant | shares | 359,124 | ||||||||||||||||||||
Ordinary Shares Underwritten Public Offering [Member] | |||||||||||||||||||||
Net proceeds from underwritten public offering | $ | $ 23,500 | ||||||||||||||||||||
Gross proceeds from underwritten public offering | $ | $ 25,300 | ||||||||||||||||||||
Number of ordinary shares issued, shares | shares | 4,819,052 | ||||||||||||||||||||
Number of ordinary shares issued, price per share | $ 5.25 | ||||||||||||||||||||
DBSI [Member] | |||||||||||||||||||||
Number of ordinary shares issued, shares | shares | 545,454 | ||||||||||||||||||||
Number of ordinary shares issued, price per share | $ 2.75 | $ 2.75 | |||||||||||||||||||
Maximum [Member] | Employees [Member] | |||||||||||||||||||||
Stock option exercise price | 2.85 | 2.85 | |||||||||||||||||||
Maximum [Member] | Employee [Member] | |||||||||||||||||||||
Stock option exercise price | $ 5.90 | $ 4.40 | |||||||||||||||||||
Minimum [Member] | Employees [Member] | |||||||||||||||||||||
Stock option exercise price | $ 2.76 | $ 2.76 | |||||||||||||||||||
Minimum [Member] | Employee [Member] | |||||||||||||||||||||
Stock option exercise price | $ 4.83 | $ 3.99 | |||||||||||||||||||
NIS [Member] | |||||||||||||||||||||
Value of shares authorized | ₪ | ₪ 1,875 | ||||||||||||||||||||
NIS [Member] | Maximum [Member] | |||||||||||||||||||||
Value of shares authorized | ₪ | ₪ 3,000 |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Stock Options Activity (Details) - Employees and Directors [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Number of Options, Outstanding at the beginning of the period | shares | 3,110,938 |
Number of Options, Granted | shares | 690,000 |
Number of Options, Exercised | shares | (275,005) |
Number of Options, Forfeiture | shares | (78,437) |
Number of Options, Outstanding at the end of the period | shares | 3,447,496 |
Number of Options, Exercisable | shares | 1,195,933 |
Weighted average exercise price, Outstanding at the beginning of the period | $ / shares | $ 7.6 |
Weighted average exercise price, Granted | $ / shares | 4.6 |
Weighted average exercise price, Exercised | $ / shares | 1.44 |
Weighted average exercise price, Canceled | $ / shares | 3.29 |
Weighted average exercise price, Outstanding at the end of the period | $ / shares | 3.22 |
Weighted average exercise price, Exercisable | $ / shares | $ 2.58 |
Weighted average remaining contractual term, beginning of the period | 8 years 2 months 23 days |
Weighted average remaining contractual term, end of the period | 8 years 2 months 26 days |
Weighted average remaining contractual term, exercisable | 7 years 5 months 26 days |
Aggregate Intrinsic Value Price, Outstanding at the beginning of the period | $ | $ 7,579 |
Aggregate Intrinsic Value Price, Outstanding at the end of the period | $ | 11,437 |
Aggregate Intrinsic Value Price, Exercisable | $ | $ 4,735 |
SHAREHOLDERS' EQUITY - Schedu_2
SHAREHOLDERS' EQUITY - Schedule of Recognized Stock-based Compensation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock-based compensation expense | $ 682 | $ 558 |
Cost of revenues [Member] | Employees and Directors [Member] | ||
Stock-based compensation expense | 122 | 76 |
Research and development [Member] | Employees and Directors [Member] | ||
Stock-based compensation expense | 178 | 115 |
Marketing and Selling [Member] | Employees and Directors [Member] | ||
Stock-based compensation expense | (18) | 20 |
General and Administrative [Member] | Employees and Directors [Member] | ||
Stock-based compensation expense | $ 400 | $ 347 |
FINANCIAL INCOME, NET - Schedul
FINANCIAL INCOME, NET - Schedule of Financial Income, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | ||
Foreign currency exchange differences | $ 172 | $ 79 |
Interest on cash equivalents and restricted deposits | 166 | 259 |
Total income | 338 | 338 |
Bank commissions and others | 22 | 49 |
Foreign currency exchange differences | 119 | 246 |
Total expenses | (141) | (295) |
Total financial income, net | $ 197 | $ 43 |
RELATED PARTY BALANCE AND TRA_3
RELATED PARTY BALANCE AND TRANSACTIONS (Details Narrative) | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017ILS (₪) | Jan. 31, 2017USD ($) | Jan. 31, 2017ILS (₪) | |
Board of Directors Chairman [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Additional monthly payment to be paid to related party for devoted time | $ 4,600 | |||||
Increased additional monthly payment to be paid to related party for devoted time, as a result of acheiving net income before taxes in the Company's first calendar year audited financial statements | $ 9,000 | |||||
Board of Directors Chairman [Member] | NIS [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Additional monthly payment to be paid to related party for devoted time | ₪ | ₪ 17,500 | |||||
Increased additional monthly payment to be paid to related party for devoted time, as a result of acheiving net income before taxes in the Company's first calendar year audited financial statements | ₪ | ₪ 35,000 | |||||
Executive Chairman [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Repayment to related party | $ 60,000 | $ 58,000 |
RELATED PARTY BALANCE AND TRA_4
RELATED PARTY BALANCE AND TRANSACTIONS - Schedule of Balance with Related Parties (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Accrued expenses | $ 49 | $ 50 |
RELATED PARTY BALANCE AND TRA_5
RELATED PARTY BALANCE AND TRANSACTIONS - Schedule of Related Party Expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transactions [Abstract] | ||
Directors and management fees | $ 83 | $ 94 |
MAJOR CUSTOMERS AND GEOGRAPHI_3
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Details Narrative) | 6 Months Ended |
Jun. 30, 2020Segments | |
Segment Reporting [Abstract] | |
Business reporting segment | 1 |
MAJOR CUSTOMERS AND GEOGRAPHI_4
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Schedule of Revenues by Geographic Areas (Details) - Operating Segments [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Total | $ 32,577 | $ 18,714 |
Israel [Member] | ||
Total | 11,035 | 6,184 |
Asia & Australia [Member] | ||
Total | 1,210 | 1,838 |
USA [Member] | ||
Total | 12,871 | 7,876 |
Latin America [Member] | ||
Total | 527 | 759 |
Europe [Member] | ||
Total | 3,615 | 379 |
Italy [Member] | ||
Total | $ 3,319 | $ 1,678 |
MAJOR CUSTOMERS AND GEOGRAPHI_5
MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Schedule of Revenue from Major Customers (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Customer A [Member] | ||
Total revenue percentage | 6.00% | 13.00% |
Customer B [Member] | ||
Total revenue percentage | 12.00% | 11.00% |
Customer D [Member] | ||
Total revenue percentage | 5.00% | 15.00% |
Customer G [Member] | ||
Total revenue percentage | 13.00% | |
Customer H [Member] | ||
Total revenue percentage | 12.00% | 5.00% |
Customer I [Member] | ||
Total revenue percentage | 10.00% | 9.00% |