Rada Electronic Industries (RADA) 6-K 2 Sep 21 2021 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2021
Cover Abstract
Entity Registrant Name	RADA ELECTRONIC INDUSTRIES LIMITED
Entity Central Index Key	0000761238
Document Type	6-K
Document Period End Date	Jun. 30, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
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

INTERIM CONSOLIDATED BALANCE SH

INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 95,655	$ 36,289
Restricted cash	576	567
Trade receivables, net	20,161	14,095
Contract assets	157	756
Other receivable and prepaid expenses	1,273	1,637
Inventories (Note 4)	31,593	28,783
Total current assets	149,415	82,127
NON CURRENT ASSETS:
Investment in affiliated company (Note 5)	3,000	0
Long-term receivable and other deposits	245	230
Property, plant and equipment, net (Note 6)	16,473	13,968
Deferred tax assets (Note 10)	6,038	0
Operating lease right-of-use assets	11,947	10,581
Total non-current assets	37,703	24,779
Total assets	187,118	106,906
CURRENT LIABILITIES:
Short term loan (Note 8c)	0	454
Trade payables	16,648	10,603
Other accounts payable and accrued expenses	9,725	9,855
Advances from customers	4,360	2,323
Contract liabilities	172	232
Operating lease short-term liabilities	2,276	1,885
Total current liabilities	33,181	25,352
LONG-TERM LIABILITIES:
Accrued severance pay and other long-term liabilities	775	789
Operating lease long-term liabilities	9,651	8,732
Total long-term liabilities	10,426	9,521
SHAREHOLDERS EQUITY:
Share capital (Note 9) - Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares at June 30, 2021 and December 31, 2020; Issued and outstanding: 49,253,171 at June 30, 2021 and 43,724,446 at December 31, 2020 respectively	488	440
Additional paid-in capital	202,159	144,944
Accumulated deficit	(59,136)	(73,351)
Total equity	143,511	72,033
Total liabilities and equity	$ 187,118	$ 106,906

INTERIM CONSOLIDATED BALANCE _2

INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares	Jun. 30, 2021	Dec. 31, 2020
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	49,253,171	43,724,446
Ordinary shares, shares outstanding	49,253,171	43,724,446

INTERIM CONSOLIDATED STATEMENTS

INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Revenues	$ 53,472	$ 32,577
Cost of revenues	32,243	20,980
Gross profit	21,229	11,597
Operating expenses:
Research and development	4,993	4,239
Marketing and selling	2,956	2,385
General and administrative	5,225	4,293
Total operating expenses	13,174	10,917
Operating income	8,055	680
Total financial income, net	122	197
Income tax	6,038	0
Net income	$ 14,215	$ 877
Basic net income per Ordinary share	$ 0.30	$ 0.02
Diluted net income per Ordinary share	$ 0.29	$ 0.02
Weighted average number of Ordinary shares used for computing basic net income per share	47,145,784	43,041,405
Weighted average number of Ordinary shares used for computing diluted net income per share	49,123,135	44,002,634

INTERIM CONSOLIDATED STATEMEN_2

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Number of Ordinary Shares [Member]	Additional Paid-in Capital [Member]		Accumulated other comprehensive loss [Member]		Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2019	$ 394	$ 120,017	[1]	$ 0	[1]	$ (78,991)	$ 41,420
Balance, shares at Dec. 31, 2019	38,456,693
Share-based compensation to employees	$ 0	682		0		0	682
Issuance of Ordinary shares ,net	$ 41	23,494		0		0	23,535
Issuance of Ordinary shares ,net shares	4,819,052
Exercise of options	$ 2						2
Exercise of options, shares	209,320
Net income	$ 0	0				877	877
Balance at Jun. 30, 2020	$ 437	144,193		0		(78,114)	66,516
Balance, shares at Jun. 30, 2020	43,485,065
Balance at Dec. 31, 2020	$ 440	146,139		(1,195)		(73,351)	72,033
Balance, shares at Dec. 31, 2020	43,724,446
Share-based compensation to employees	$ 0	1,326		0		0	1,326
Issuance of Ordinary shares ,net	$ 46	55,891		0		0	55,937
Issuance of Ordinary shares ,net shares	5,175,000
Exercise of options	$ 2	(2)					0
Exercise of options, shares	353,725
Net income	$ 0	0				14,215	14,215
Balance at Jun. 30, 2021	$ 488	$ 203,354		$ (1,195)		$ (59,136)	$ 143,511
Balance, shares at Jun. 30, 2021	49,253,171
[1]	Reclassified

INTERIM CONSOLIDATED STATEMEN_3

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 14,215	$ 877
Adjustments required to reconcile net income to net cash used in operating activities:
Depreciation	1,599	1,014
Severance pay, net	(14)	(96)
Short term loan forgiveness	(454)	0
Share-based compensation to employees	1,326	682
Operating lease right-of-use assets	875	506
Increase in trade receivables, net	(6,066)	(5,168)
Increase in deferred tax assets	(6,038)	0
Operating lease long-term-liabilities	(931)	(511)
Increase (decrease) in other receivable and prepaid expenses	366	(748)
Decrease in contract assets	599	224
Increase (decrease) in contract liabilities	(60)	(190)
Increase in inventories	(3,719)	(9,629)
Increase in trade payables	5,380	7,685
Increase (decrease) in other accounts payable and accrued expenses	1,904	(3)
Net cash provided by (used in) operating activities	8,982	(5,357)
Cash flows from investing activities:
Purchase of equipment	(2,529)	(2,406)
Increase (decrease) in long-term receivables and other deposits	(15)	42
Investment in affiliated company	(3,000)	0
Net cash used in investing activities	(5,544)	(2,364)
Cash flows from financing activities:
Issuance of shares, net	55,937	23,536
Proceeds from short term loan	0	454
Net cash provided by financing activities	55,937	23,990
Increase in cash and cash equivalents and restricted cash	59,375	16,269
Cash and cash equivalents and restricted cash at the beginning of the period	36,856	14,134
Cash and cash equivalents and restricted cash at the end of the period	96,231	30,403
(a) Supplemental disclosures of cash flow activities:
Net cash paid during the period for income taxes	33	13
(b) Non-cash transactions
Purchase equipment in credit	663	411
Transfer of inventory to equipment	909	352
Right-of-use assets obtained in exchange for new operating lease liabilities	2,241	438
Cash and cash equivalents	95,655	29,908
Restricted cash	576	495
Cash and cash equivalents and restricted cash	$ 96,231	$ 30,403

GENERAL

GENERAL	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1:- GENERAL RADA Electronic Industries Ltd. (the "Company") is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications. The Company also specializes in the design, development, production and sales of avionics systems for fighter aircraft and unmanned aerial vehicles (“UAVs”). In January 2018, the Company incorporated RADA Sensors Inc. (“RSI”) as a fully owned subsidiary of the Company. As of December 31, 2019, RSI is the holder of 100% of the interests in RADA Technologies LLC, also organized in January 2018. At the time of its organization, RSI was the owner of 75% of RADA Technologies LLC. During July 2019, the Company acquired the remaining 25% interest in RADA Technologies LLC. RSI is also the holder of 100% of the interests in RADA Innovations LLC, which began its operations in 2021. The Company is organized and operates as one operating segment. In March 2021, the Company completed an underwritten public offering of 5,175,000 Ordinary shares at a price of $11.50 per share, for a total consideration of $59,215. Offering costs amounted to approximately $3,300.

UNAUDITED INTERIM CONSOLIDATED

UNAUDITED INTERIM CONSOLIDATED FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2021
Quarterly Financial Information Disclosure [Abstract]
UNAUDITED INTERIM CONSOLIDATED FINANCIAL INFORMATION	NOTE 2:- UNAUDITED INTERIM CONSOLIDATED FINANCIAL INFORMATION The accompanying unaudited interim 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, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed in the preparation of these unaudited interim consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements of the Company as of December 31, 2020, set forth in the Company's Annual Report on Form 20-F as filed with the U.S. Securities and Exchange Commission on March 1, 2021, except as discussed below: Investment in affiliated company: For investments in non-marketable equity securities without readily determinable fair values where the Company does not have control or the ability to exercise significant influence over the operation and financial policies of the issuer of the securities, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in the same issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. Additionally, at each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4:- INVENTORIES June 30, December 31, 2021 2020 Unaudited Audited Raw materials and components $ 23,389 $ 23,744 Work in progress 6,735 3,997 Finished goods 1,469 1,042 $ 31,593 $ 28,783

INVESTMENT IN AFFILIATED COMPAN

INVESTMENT IN AFFILIATED COMPANY	6 Months Ended
	Jun. 30, 2021
Long-term Investments [Abstract]
INVESTMENT IN AFFILIATED COMPANY	NOTE In March 2021, the Company signed a share purchased agreement to invest $3 million to acquire 24,020 ordinary shares of Radsee Technologies Ltd. (“Radsee”). Additionally, the Company has a 24 month option to acquire an additional 7,409 ordinary shares of Radsee.

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 6:- PROPERTY, PLANT AND EQUIPMENT, NET June 30, December 31, 2021 2020 Unaudited Audited Cost: Factory building $ 1,722 $ 1,722 Machinery and equipment *) 19,778 16,603 Office furniture and equipment 1,393 1,098 Leasehold improvements 3,590 2,959 26,483 22,382 Accumulated depreciation: Factory building 1,722 (*)1,722 Machinery and equipment 7,547 6,170 Office furniture and equipment 288 236 Leasehold improvements 453 (*)286 10,010 8,414 Property, plant and equipment, net $ 16,473 $ 13,968 *) As of June 30, 2021 and December 31, 2020, $488 and $423 relate to construction-in- progress of production infrastructure, respectively. (*) Reclassified

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2021
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. The following table presents the Company's liabilities measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Financial assets: Other accounts receivable and prepaid expenses: Foreign currency derivatives $ - $ 27 $ - $ 27 Total $ - $ 27 $ - $ 27 December 31, 2020 Level 1 Level 2 Level 3 Total Financial liabilities: Other accounts receivable and prepaid expenses: Foreign currency derivatives $ - $ 159 $ - $ 159 Total $ - $ 159 $ - $ 159

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 was approximately $0 and $123, respectively. As of June 30, 2021, the Company's contingent liability for royalties, that are linked to active programs, net of royalties paid or accrued, totaled approximately $0. b. The Company provides bank guarantees to some of its customers and others, in the ordinary course of business. The guarantees which are provided to customers are to secure advances received at the commencement of a project or to secure performance of operational milestones. The total amount of bank guarantees provided to customers and others, as of June 30, 2021, is approximately c. In April 2020, the RADA Technologies LLC received approximately $454 in proceeds from an approved loan under the Paycheck Protection Program. Interest accrued on outstanding principal balance at a rate of 1% per annum, computed on a simple interest basis. The loan principal and accrued interest were eligible for forgiveness provided that (i) RADA Technologies LLC used the loan proceeds exclusively for allowed costs including payroll, employee group health benefits, rent and utilities and (ii) employee and compensation levels were maintained. The entire loan was forgiven in March 2021.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 9:- SHAREHOLDERS' EQUITY 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 up to an aggregate of 1,500,000 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 ten years from adoption of the Plan, In November 2018 extended the Plan for 10 additional years. Generally, under the terms of the Plan, unless determined otherwise by the administrator of the Plans, 25% of the option granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. In addition, options granted under the plan are granted at the average closing price of our Shares as quoted on NASDAQ during the 30 business days prior to the date the Option is granted. For our US employees, the exercise price is the higher of (a) the average closing price of our shares as quoted on NASDAQ during the 30 business days prior to the date the option is granted, and (b) the closing price as quoted on NASDAQ on the last trading day preceding the date the option is granted. These options will be exercisable for 48 months following the date of vesting. As of June 30, 2021, options to purchase 205,937 Ordinary shares are available for future grant under the Plan. A summary of for options granted to employees and directors under the Plan is as follows: Six months ended June 30, 2021 Unaudited Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate Intrinsic Value Price Outstanding at the beginning of the period 3,290,162 $ 3.57 7.91 $ 8,768 Granted 1,600,000 12.79 - - Exercised (461,402 ) 2.70 - - Forfeiture (23,125 ) 4.91 - - Outstanding at the end of the period 4,405,635 7.00 8.35 23,808 Exercisable 1,291,533 $ 3.12 7.04 $ 11,710 The weighted average fair value of options granted during the six months ended June 30, 2021 and 2020 was $7,744 and $1,498, respectively. The intrinsic value of exercisable options (the difference between the closing share price of the 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, 2021. This amount changes based on the fair market value of the The total intrinsic value of options exercised during the six months period ended June 30, 2021 and, during the year ended December 31, 2020, were $4,596, and $4,376, respectively As of June 30, 2021, unamortized compensation expenses related to stock options to be recognized over an average time of approximately four (4) years is approximately $9,958. During the six months period ended June 30, 2021, the Company recognized compensation expenses related to stock options in the amount of $1,326, as follows: Six months ended June 30, 2021 2020 Unaudited Cost of revenues $ 222 $ 122 Research and development 310 178 Marketing and selling 82 (18 ) General and administrative 712 400 $ 1,326 $ 682

INCOME TAX

INCOME TAX	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10:- INCOME TAX At June 30, 2021, the Company released the valuation allowance against deferred tax assets of its Israeli based company. The Company assesses its ability to recover its deferred tax assets on an ongoing basis. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, the Company considers available positive and negative evidence including its recent retained earnings, its ability to carry-back losses against prior taxable income and its projected financial results. The Company also considers, commensurate with its objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. A valuation allowance may be recorded in the event it is deemed to be more-likely-than-not that the deferred tax asset cannot be realized. Previously established valuation allowances may also be released in the event it is deemed to be more-likely-than-not that the deferred tax asset can be realized. Any release of valuation allowance will be recorded as a tax benefit which will positively impact the Company’s operating results. Management has determined on the basis of the quarterly assessment performed at June 30, 2021, that these deferred tax assets are more-likely-than-not to be realized. During the six months ended June 30, 2021, the Company released $6,038 of valuation allowance and recorded deferred tax assets primarily related to net operating losses carryforwards ("NOLs"). The Company’s quarterly tax provision, and estimates of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, tax law developments, as well as non-deductible expenses, such as share-based compensation, and changes in its valuation allowance. The income tax benefit was $6,038 for the six months ended June 30, 2021, and income tax benefits were $ 0 for the six months ended June 30, 2020. The income tax expense (benefit) for the periods consisted of income taxes related to Israel.

GEOGRAPHIC INFORMATION

GEOGRAPHIC INFORMATION	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
GEOGRAPHIC INFORMATION	NOTE 11:- GEOGRAPHIC INFORMATION a. In accordance with Statement of ASC 280, "Segment Reporting", the Company is organized and operates as one business segment, which develops, manufactures and sells tactical land radars for ground forces and border protection and avionics systems for fighter aircraft and UAVs (see also Note 1a). 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, 2021 2020 Unaudited Israel $ 9,045 $ 11,035 Asia & Australia 3,106 1,210 USA 39,839 12,871 Latin America 132 527 Europe 1,350 6,934 Total 53,472 32,577

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Investment in affiliated companies	Investment in affiliated company: For investments in non-marketable equity securities without readily determinable fair values where the Company does not have control or the ability to exercise significant influence over the operation and financial policies of the issuer of the securities, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in the same issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. Additionally, at each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	June 30, December 31, 2021 2020 Unaudited Audited Raw materials and components $ 23,389 $ 23,744 Work in progress 6,735 3,997 Finished goods 1,469 1,042 $ 31,593 $ 28,783

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment, Net	June 30, December 31, 2021 2020 Unaudited Audited Cost: Factory building $ 1,722 $ 1,722 Machinery and equipment *) 19,778 16,603 Office furniture and equipment 1,393 1,098 Leasehold improvements 3,590 2,959 26,483 22,382 Accumulated depreciation: Factory building 1,722 (*)1,722 Machinery and equipment 7,547 6,170 Office furniture and equipment 288 236 Leasehold improvements 453 (*)286 10,010 8,414 Property, plant and equipment, net $ 16,473 $ 13,968 *) As of June 30, 2021 and December 31, 2020, $488 and $423 relate to construction-in- progress of production infrastructure, respectively. (*) Reclassified

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Financial assets: Other accounts receivable and prepaid expenses: Foreign currency derivatives $ - $ 27 $ - $ 27 Total $ - $ 27 $ - $ 27 December 31, 2020 Level 1 Level 2 Level 3 Total Financial liabilities: Other accounts receivable and prepaid expenses: Foreign currency derivatives $ - $ 159 $ - $ 159 Total $ - $ 159 $ - $ 159

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity Note [Abstract]
Schedule of Stock Options Activity	Six months ended June 30, 2021 Unaudited Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate Intrinsic Value Price Outstanding at the beginning of the period 3,290,162 $ 3.57 7.91 $ 8,768 Granted 1,600,000 12.79 - - Exercised (461,402 ) 2.70 - - Forfeiture (23,125 ) 4.91 - - Outstanding at the end of the period 4,405,635 7.00 8.35 23,808 Exercisable 1,291,533 $ 3.12 7.04 $ 11,710
Schedule of Recognized Stock-based Compensation	Six months ended June 30, 2021 2020 Unaudited Cost of revenues $ 222 $ 122 Research and development 310 178 Marketing and selling 82 (18 ) General and administrative 712 400 $ 1,326 $ 682

GEOGRAPHIC INFORMATION (Tables)

GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Areas	Six months ended June 30, 2021 2020 Unaudited Israel $ 9,045 $ 11,035 Asia & Australia 3,106 1,210 USA 39,839 12,871 Latin America 132 527 Europe 1,350 6,934 Total 53,472 32,577

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019	Jul. 31, 2019	Jan. 31, 2018
Net proceeds from underwritten public offering		$ 55,937	$ 23,536
Ordinary Shares Underwritten Public Offering [Member]
Issuance of Ordinary shares ,net shares	5,175,000
Number of ordinary shares issued, price per share	$ 11.50
Net proceeds from underwritten public offering	$ 3,300
Gross proceeds from underwritten public offering	$ 59,215
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%
RADA Innovations LLC [Member]
RADA Sensors Inc. ownership percentage of RADA Technologies LLC						100.00%

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials and components	$ 23,389	$ 23,744
Work in progress	6,735	3,997
Finished goods	1,469	1,042
Inventory net	$ 31,593	$ 28,783

INVESTMENT IN AFFILIATED COMP_2

INVESTMENT IN AFFILIATED COMPANY (Details Narrative) - Radsee Technologies Ltd [Member] $ in Millions	Mar. 11, 2021USD ($)shares
Schedule of Investments [Line Items]
Amount of investment in subsidiaries | $	$ 3
Invest in additional shares	7,409
Investments in and advances to affiliates, balance, shares	24,020

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Total cost		$ 26,483	$ 22,382
Total accumulated depriciation		10,010	8,414
Property, plant and equipment, net		16,473	13,968
Factory Building [Member]
Total cost		1,722	1,722
Total accumulated depriciation		1,722	1,722	[1]
Machinery and Equipment [Member]
Total cost	[2]	19,778	16,603
Total accumulated depriciation		7,547	6,170
Office Furniture and Equipment [Member]
Total cost		1,393	1,098
Total accumulated depriciation		288	236
Leasehold Improvements [Member]
Total cost		3,590	2,959
Total accumulated depriciation		$ 453	$ 286	[1]
[1]	Reclassified
[2]	As of June 30, 2021 and December 31, 2020, $488 and $423 relate to construction-in- progress of production infrastructure, respectively.

PROPERTY, PLANT AND EQUIPMENT_4

PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property Plant and Equipment (Details) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment, Net [Abstract]
Construction-in-process of production infrastructure	$ 488	$ 423

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, 2021	Dec. 31, 2020
Financial assets:
Foreign currency derivatives	$ 27	$ 159
Total	27	159
Level 1 [Member]
Financial assets:
Foreign currency derivatives	0	0
Total	0	0
Level 2 [Member]
Financial assets:
Foreign currency derivatives	27	159
Total	27	159
Level 3 [Member]
Financial assets:
Foreign currency derivatives	0	0
Total	$ 0	$ 0

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, 2021	Jun. 30, 2020
Royalties		$ 0	$ 123
Contingent liability for royalties		0
Total bank guarantees provided to customers and others		$ 576
Paycheck Protection Program [Member]
Proceeds from Issuance of debt	$ 454
Debt interest rate	1.00%
Israel Innovation Authority [Member]
Grants received percentage		100.00%
Grants received		$ 5,543
Minimum [Member] | Paycheck Protection Program [Member]
Royalties payable, percent of sales		3.00%
Maximum [Member] | Paycheck Protection Program [Member]
Royalties payable, percent of sales		5.00%

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Mar. 31, 2021	Apr. 30, 2015	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Shares issued under underwritten public offering			49,253,171		43,724,446
Stock-based compensation expense			$ 1,326	$ 682
Weighted average fair value of options granted			7,744	1,498
Intrinsic value of options exercised			4,596	4,376
Number of shares purchased, value			$ 55,937	$ 23,535
Employees and Directors [Member]
Number of stock options shares grant to purchase			1,600,000
Unamortized compensation expenses period			4 years
Unamortized compensation expenses			$ 9,958
2015 Share Option Plan [Member]
Option expire term		10 years
Stock option vesting description		25% of the option granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years
Number of stock options shares grant to purchase		1,500,000
Number of shares available for grant			205,937
Ordinary Shares Underwritten Public Offering [Member]
Gross Proceeds From Issuance Of Common Stock	$ 59,215

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, 2021USD ($)$ / sharesshares
Number of Options, Outstanding at the beginning of the period | shares	3,290,162
Number of Options, Granted | shares	1,600,000
Number of Options, Exercised | shares	(461,402)
Number of Options, Forfeiture | shares	(23,125)
Number of Options, Outstanding at the end of the period | shares	4,405,635
Number of Options, Exercisable | shares	1,291,533
Weighted average exercise price, Outstanding at the beginning of the period | $ / shares	$ 3.57
Weighted average exercise price, Granted | $ / shares	12.79
Weighted average exercise price, Exercised | $ / shares	2.70
Weighted average exercise price, Forfeiture | $ / shares	4.91
Weighted average exercise price, Outstanding at the end of the period | $ / shares	7
Weighted average exercise price, Exercisable | $ / shares	$ 3.12
Weighted average remaining contractual term, beginning of the period	7 years 10 months 28 days
Weighted average remaining contractual term, end of the period	8 years 4 months 6 days
Weighted average remaining contractual term, exercisable	7 years 14 days
Aggregate Intrinsic Value Price, Outstanding at the beginning of the period | $	$ 8,768
Aggregate Intrinsic Value Price, Outstanding at the end of the period | $	23,808
Aggregate Intrinsic Value Price, Exercisable | $	$ 11,710

SHAREHOLDERS' EQUITY - Schedu_2

SHAREHOLDERS' EQUITY - Schedule of Recognized Stock-based Compensation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Stock-based compensation expense	$ 1,326	$ 682
Cost of revenues [Member] | Employees and Directors [Member]
Stock-based compensation expense	222	122
Research and development [Member] | Employees and Directors [Member]
Stock-based compensation expense	310	178
Marketing and Selling [Member] | Employees and Directors [Member]
Stock-based compensation expense	82	(18)
General and Administrative [Member] | Employees and Directors [Member]
Stock-based compensation expense	$ 712	$ 400

INCOME TAX (Details Narrative)

INCOME TAX (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Valuation allowance against deferred tax assets	$ 6,038
Income tax benefit	$ 6,038	$ 0

GEOGRAPHIC INFORMATION (Details

GEOGRAPHIC INFORMATION (Details Narrative)	6 Months Ended
	Jun. 30, 2021Segments
Segment Reporting [Abstract]
Business reporting segment	1

GEOGRAPHIC INFORMATION - Schedu

GEOGRAPHIC INFORMATION - Schedule of Revenues by Geographic Areas (Details) - Operating Segments [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Total	$ 53,472	$ 32,577
Israel [Member]
Total	9,045	11,035
Asia & Australia [Member]
Total	3,106	1,210
USA [Member]
Total	39,839	12,871
Latin America [Member]
Total	132	527
Europe [Member]
Total	$ 1,350	$ 6,934