ATTUNITY LTD. AND ITS SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2017
UNAUDITED
U.S. DOLLARS IN THOUSANDS
INDEX
CONSOLIDATED
BALANCE SHEETS
U.S. dollars in thousands
| | | September 30, | | | December 31, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | | | Audited | |
| ASSETS | | | | | | |
| | | | | | | |
| CURRENT ASSETS: | | | | | | |
| Cash and cash equivalents | | $ | 7,293 | | | $ | 9,166 | |
| Trade receivables, net | | | 8,536 | | | | 7,031 | |
| Prepaid expenses and other account receivables | | | 1,307 | | | | 663 | |
Total current assets | | | 17,136 | | | | 16,860 | |
| | | | | | | | | |
| LONG-TERM ASSETS: | | | | | | | | |
| Other assets | | | 153 | | | | 155 | |
| Deferred taxes, net | | | 1,978 | | | | 2,340 | |
| Severance pay fund | | | 4,311 | | | | 3,770 | |
| Property and equipment, net | | | 1,267 | | | | 1,214 | |
| Intangible assets, net | | | 1,768 | | | | 2,778 | |
| Goodwill | | | 30,929 | | | | 30,929 | |
| | | | | | | | | |
Total long-term assets | | | 40,406 | | | | 41,186 | |
| | | | | | | | | |
Total assets | | $ | 57,542 | | | $ | 58,046 | |
The accompanying notes are an integral part of the interim consolidated financial statements.
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| | | September 30, | | | December 31, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | | | Audited | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| CURRENT LIABILITIES: | | | | | | |
| | | | | | | |
| Trade payables | | $ | 948 | | | $ | 375 | |
| Payment obligation related to acquisitions | | | - | | | | 271 | |
| Deferred revenues | | | 11,381 | | | | 10,676 | |
| Employees and payroll accruals | | | 4,444 | | | | 4,741 | |
| Accrued expenses and other current liabilities | | | 1,978 | | | | 2,021 | |
| Liability presented at fair value | | | 300 | | | | - | |
| | | | | | | | | |
| Total current liabilities | | | 19,051 | | | | 18,084 | |
| | | | | | | | | |
| LONG-TERM LIABILITIES: | | | | | | | | |
| Other liabilities | | | 304 | | | | 277 | |
| Deferred revenues | | | 1,805 | | | | 1,438 | |
| Liability presented at fair value | | | - | | | | 512 | |
| Accrued severance pay | | | 5,857 | | | | 5,027 | |
| | | | | | | | | |
| Total long-term liabilities | | | 7,966 | | | | 7,254 | |
| | | | | | | | | |
| SHAREHOLDERS' EQUITY: | | | | | | | | |
| | | | | | | | | |
| Share capital - ordinary shares of NIS 0.4 par value - | | | 1,955 | | | | 1,921 | |
| Authorized: 32,500,000 shares at September 30, 2017 and December 31, 2016; Issued and outstanding: 17,147,011 shares at September 30, 2017 and 16,841,238 shares at December 31, 2016 | | | | | | | | |
| Additional paid-in capital | | | 152,754 | | | | 149,716 | |
| Accumulated other comprehensive loss | | | (1,175 | ) | | | (1,013 | ) |
| Accumulated deficit | | | (123,009 | ) | | | (117,916 | ) |
Total shareholders' equity | | | 30,525 | | | | 32,708 | |
| | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 57,542 | | | $ | 58,046 | |
The accompanying notes are an integral part of the interim consolidated financial statements.
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
U.S. dollars and shares in thousands, except per share data
| | | Nine months ended | |
| | | September 30, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | |
| Revenues: | | | | | | |
| | | | | | | |
| Software licenses | | $ | 22,353 | | | $ | 19,862 | |
| Maintenance and services | | | 21,470 | | | | 19,062 | |
| Total revenues | | | 43,823 | | | | 38,924 | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Cost of software license | | | 919 | | | | 1,758 | |
| Cost of maintenance and services | | | 6,309 | | | | 4,913 | |
| Research and development | | | 10,473 | | | | 10,076 | |
| Selling and marketing | | | 25,182 | | | | 26,024 | |
| General and administrative | | | 3,965 | | | | 3,601 | |
| Impairment of acquisition-related intangible assets | | | - | | | | 4,122 | |
Total operating expenses | | | 46,848 | | | | 50,494 | |
| | | | | | | | | |
| Operating loss | | | (3,025 | ) | | | (11,570 | ) |
| | | | | | | | | |
| Financial income (expenses), net | | | (37 | ) | | | 5 | |
| Loss before income taxes | | | (3,062 | ) | | | (11,565 | ) |
| Income tax benefit (taxes on income) | | | (2,031 | ) | | | 1,117 | |
| Net loss | | $ | (5,093 | ) | | $ | (10,448 | ) |
| | | | | | | | | |
| Basic and diluted net loss per share | | $ | (0.30 | ) | | $ | (0.63 | ) |
| Weighted average number of shares used in computing basic net and diluted loss per share | | | 17,060 | | | | 16,711 | |
The accompanying notes are an integral part of the interim consolidated financial statements.
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
U.S. dollars in thousands
| | | Nine months ended September 30, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | |
| | | | | | | |
| Net loss | | $ | (5,093 | ) | | $ | (10,448 | ) |
| | | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | |
| | | | | | | | | |
| Cash flow hedges: | | | | | | | | |
| | | | | | | | | |
| Changes in unrealized gains | | | 301 | | | | 104 | |
| Reclassification adjustments for gains included in net loss | | | (246 | ) | | | 23 | |
| | | | | | | | | |
| Net change | | | 55 | | | | 127 | |
| | | | | | | | | |
| Foreign currency translation adjustment | | | (217 | ) | | | 47 | |
| | | | | | | | | |
| Net change in accumulated comprehensive loss | | | (162 | ) | | | 174 | |
| | | | | | | | | |
| Comprehensive loss | | $ | (5,255 | ) | | $ | (10,274 | ) |
The accompanying notes are an integral part of the interim consolidated financial statements.
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
U.S. dollars in thousands
| | | Nine months ended September 30, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | |
Cash flows activities: | | | | | | |
| Net loss | | $ | (5,093 | ) | | $ | (10,448 | ) |
| Adjustments required to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | | |
| Depreciation | | | 363 | | | | 366 | |
| Stock based compensation | | | 2,654 | | | | 2,957 | |
| Amortization of intangible assets | | | 1,010 | | | | 1,948 | |
| Impairment of acquisition-related intangible assets | | | - | | | | 4,122 | |
| Accretion of payment obligation | | | - | | | | 33 | |
| | | | | | | | | |
| Change in: | | | | | | | | |
| Accrued severance pay, net | | | 289 | | | | 104 | |
| Trade receivables | | | (1,472 | ) | | | (1,212 | ) |
| Other accounts receivable and prepaid expenses | | | (596 | ) | | | (410 | ) |
| Other long term assets | | | 6 | | | | 152 | |
| Trade payables | | | 555 | | | | 365 | |
| Deferred revenues | | | 783 | | | | 1,077 | |
| Employees and payroll accruals | | | (309 | ) | | | 793 | |
| Accrued expenses and other liabilities | | | (15 | ) | | | 872 | |
| Liabilities presented at fair value | | | (212 | ) | | | (213 | ) |
| Tax benefit related to exercise of stock options | | | - | | | | 146 | |
| Change in deferred taxes, net | | | 388 | | | | (1,745 | ) |
| Net cash used in operating activities | | | (1,649 | ) | | | (1,093 | ) |
| | | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
| Purchase of property and equipment | | | (409 | ) | | | (392 | ) |
| Net cash used in investing activities | | | (409 | ) | | | (392 | ) |
| | | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
| Proceeds from exercise of stock options | | | 421 | | | | 185 | |
| Payment of contingent consideration | | | (271 | ) | | | (1,990 | ) |
| Tax benefit related to exercise of stock options | | | - | | | | (146 | ) |
| Net cash provided by (used in) financing activities | | $ | 150 | | | $ | (1,951 | ) |
| Foreign currency translation adjustments on cash and cash equivalents | | | 35 | | | | (154 | ) |
| | | | | | | | | |
| Decrease in cash and cash equivalents | | | (1,873 | ) | | | (3,590 | ) |
| Cash and cash equivalents at the beginning of the year | | | 9,166 | | | | 12,522 | |
| | | | | | | | | |
| Cash and cash equivalents at the end of the year | | $ | 7,293 | | | $ | 8,932 | |
| | | | | | | | | |
Supplemental disclosure of cash flow activities: | | | | | | | | |
| Cash paid during the year for taxes | | | 1,619 | | | | 588 | |
Supplemental disclosure of non- cash investing activities: | | | | | |
| Issuance of shares related to acquisition | | | - | | | | 224 | |
The accompanying notes are an integral part of the interim consolidated financial statements.
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
Attunity Ltd. (the "Company" or "Attunity") develops, markets, sells and supports data integration and “Big Data” management software solutions that enable availability, delivery and management of data across heterogeneous enterprise platforms, organizations, and the cloud. In addition, the Company provides maintenance, consulting, and other related services for its products.
The Company has wholly-owned subsidiaries in the United States, United Kingdom, Hong-Kong and Israel. The Company's subsidiaries are engaged primarily in sales and marketing.
| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES |
| a. | Unaudited interim consolidated financial statements: |
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial statements.
The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.
The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2016, included in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission ("SEC") on March 1, 2017, as amended on Form 20-F/A, filed with the SEC on March 6, 2017 (collectively, the "Annual Report"). The significant accounting policies applied in the Company’s audited 2016 consolidated financial statements and notes thereto included in the Annual Report are applied consistently in these financial statements. Results for the nine months ended September 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017.
Unless otherwise noted, all references to "dollars" or "$" are to United States dollars.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
| c. | Impact of recently issued accounting standards not yet adopted: |
| 1. | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which amends the existing accounting standards for revenue recognition. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and on identifying performance obligations. The Company plans to adopt the new standard effective January 1, 2018. |
The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (the so-called "full retrospective method"), or retrospectively with the cumulative effect of initially applying the new standard recognized at the date of initial application (the so-called "modified retrospective method"). The Company currently anticipates adopting the new standard using the modified retrospective method. The Company is in the process of finalizing its analysis of the impact that the standard will have on its consolidated financial statements and related disclosures.
| 2. | In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business", which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. This guidance will be effective for the Company in the first quarter of 2018 on a prospective basis, and early adoption is permitted. The Company does not expect the standard to have a material impact on its consolidated financial statements. |
| 3. | In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04”), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. This guidance will be effective for the Company in the first quarter of 2020 on a prospective basis, and early adoption is permitted. The Company does not expect the standard to have a material impact on its consolidated financial statements. |
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
| NOTE 3:- | FAIR VALUE MEASUREMENTS |
The FASB issued Accounting Standards Codification ("ASC") No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), which defines fair value and establishes a framework for measuring fair value. According to ASC No. 820, fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of 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: | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. |
| Level 2: | Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
| Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
The Company measures the contingent payment obligations payable, if any, in connection with its acquisitions of businesses or entities ("Contingent Considerations"), foreign currency derivative contracts and other derivative instruments at fair value. 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 Contingent Considerations related to acquisitions and liabilities presented at fair value are classified within Level 3 as the valuation inputs are based on significant inputs not observable in the market. See also Note 5 below.
There have been no transfers between fair value measurements levels during the nine months ended September 30, 2017.
The below table sets forth the Company's assets and liabilities that were measured at fair value as of September 30, 2017 and December 31, 2016 by level within the fair value hierarchy described above. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
NOTE 3:- FAIR VALUE MEASUREMENTS (Cont.)
| | | September 30, 2017 (unaudited) | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Assets: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Foreign exchange contracts | | | - | | | $ | 49 | | | | - | | | $ | 49 | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | - | | | $ | 49 | | | | - | | | $ | 49 | |
| Liabilities: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Liabilities presented at fair value | | | - | | | | - | | | $ | 300 | | | $ | 300 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | - | | | | - | | | $ | 300 | | | $ | 300 | |
| | | December 31, 2016
(audited) | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Liabilities: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Contingent Considerations related to acquisitions | | | - | | | | - | | | $ | 271 | | | $ | 271 | |
| Foreign exchange contracts | | | - | | | $ | 7 | | | | - | | | $ | 7 | |
| Liability presented at fair value | | | - | | | | - | | | $ | 512 | | | $ | 512 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | $ | - | | | $ | 7 | | | $ | 783 | | | $ | 790 | |
The following table set forth the change of fair value measurements that are categorized within Level 3:
| Total fair value as of January 1, 2017 | | $ | 783 | |
| | | | | |
| Cash settlements | | | (271 | ) |
| Changes in fair value recognized in expenses | | | (212 | ) |
| | | | | |
| Total fair value as of September 30, 2017 (unaudited) | | $ | 300 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
| NOTE 4:- | OTHER INTANGIBLE ASSETS, NET |
Net other intangible assets consisted of the following:
| | | Weighted average amortization | | | September 30, | | | December 31, | |
| | | period | | | 2017 | | | 2016 | |
| | | (years) | | | Unaudited | | | | |
| Original amount: | | | | | | | | | |
| | | | | | | | | | |
| Core technology | | | 4.74 | | | $ | 13,384 | | | $ | 13,384 | |
| Customer relationships | | | 5.84 | | | | 1,981 | | | | 1,981 | |
| Non-competition agreement | | | 4.00 | | | | 224 | | | | 224 | |
| | | | | | | | | | | | | |
| | | | | | | | 15,589 | | | | 15,589 | |
| Accumulated amortization and impairment charges: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Core technology | | | | | | | 7,895 | | | | 6,977 | |
| Customer relationships | | | | | | | 1,594 | | | | 1,544 | |
| Non-competition agreement | | | | | | | 210 | | | | 168 | |
| Impairment of acquisition-related intangible assets (*) | | | | | | | 4,122 | | | | 4,122 | |
| | | | | | | | | | | | | |
| | | | | | | | 13,821 | | | | 12,811 | |
| Other intangible assets, net: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Core technology | | | | | | | 1,570 | | | | 2,488 | |
| Customer relationships | | | | | | | 184 | | | | 234 | |
| Non-competition agreement | | | | | | | 14 | | | | 56 | |
| | | | | | | | | | | | | |
| | | | | | | $ | 1,768 | | | $ | 2,778 | |
The estimated future amortization expense of other intangible assets as of September 30, 2017 for the years ending December 31:
| 2017 | | $ | 337 | |
| 2018 | | | 943 | |
| 2019 | | | 415 | |
| Thereafter | | | 74 | |
| | | | | |
| | | $ | 1,769 | |
| (*) | In 2016, the Company recorded a $4,122 impairment charge on developed technology. This impairment was based upon forecasted discounted cash flows which considered delayed sales trends with longer than expected sales cycles of Appfluent products, which the Company believes is primarily due to the innovative nature of this solution. |
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
| NOTE 5:- | LIABILITY PRESENTED AT FAIR VALUE |
The Company entered into a Loan Agreement with Plenus Technologies Ltd. ("Plenus" or the "Lender"), on January 31, 2007 (as amended on March 30, 2009 and September 4, 2011, the "Loan Agreement"). According to the Loan Agreement, if, during the period between March 19, 2009 and December 31, 2017, the Company enters into a "Fundamental Transaction" (which is defined in the Loan Agreement to include various types of change of control transactions), then the Lender shall be entitled to the following: (i) in the cases of merger or acquisition of shares, an amount equal to 15% of the aggregate proceeds payable in connection with such Fundamental Transaction to the shareholders, or (ii) in the case of the sale of substantially all of the Company's assets, an amount equal to 15% of the aggregate proceeds payable to the Company in connection with such Fundamental Transaction; the "aggregate proceeds" shall be calculated while subtracting any amount of debts, liabilities and obligations which have accrued prior to the closing of such Fundamental Transaction and have not been assumed by the purchaser in such Fundamental Transaction. During such period, the Lender may elect to receive $300 in cash in lieu of such contingent payment right.
The Company accounted for the above mentioned contingent payment right as a liability presented at fair value on the balance sheet, which was marked to market at each reporting period. As of September 30, 2017 and December 31, 2016, the liability amounted to $300 and $512, respectively. The fair value of this liability was performed by a third party valuation firm using the Binomial Model for options valuation, based on assumptions provided by management.
| NOTE 6:- | DERIVATIVES AND HEDGING ACTIVITIES |
The Company accounts for derivatives and hedging based on ASC No. 815, "Derivatives and Hedging" ("ASC No. 815"). ASC No. 815 requires the Company to recognize all derivatives on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.
According to ASC No. 815, for derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is recognized in earnings.
ATTUNITY LTD. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands, except share and per share data
| NOTE 6:- | DERIVATIVES AND HEDGING ACTIVITIES (Cont.) |
The Company entered into forward and option contracts to hedge against the risk of overall changes in future cash flow from payments of rent, payroll and related expenses denominated in New Israeli Shekels ("NIS"). As of September 30, 2017, the fair value of the Company's outstanding hedging contracts that were designated as hedging instruments was recorded as an asset of $49 included in the balance sheet within "Prepaid expenses and other account receivables". As of December 31, 2016, the fair value of the Company's outstanding hedging contracts that were designated as hedging instruments was recorded as liability of $7, included in the balance sheet within "Accrued expenses and other current liabilities". The Company measured the fair value of these hedging contracts in accordance with ASC No. 820, and they were classified as Level 2. Net income (loss) from hedging transactions recognized in financial expenses, net during the first nine months of 2017 and 2016 was ($2) and $2, respectively.
As of September 30, 2017 and December 31, 2016, the notional principal amount of the hedging contracts to sell U.S. dollars held by the Company was $3,217 and $4,963, respectively.
As of September 30, 2017 and December 31, 2016, there were no hedging contracts that were not designated as hedging instruments.
NOTE 7:- FINANCIAL INCOME (EXPENSES), NET
| | | Nine months ended September 30, | |
| | | 2017 | | | 2016 | |
| | | Unaudited | |
| Financial income: | | | | | | |
| | | | | | | |
| Revaluation of liabilities presented at fair value | | $ | 212 | | | $ | 213 | |
| Hedging | | | - | | | | 2 | |
| Accretion of payment obligation related to acquisitions | | | - | | | | 35 | |
| Exchange rate differences | | | 216 | | | | 52 | |
| | | | | | | | | |
| | | | 428 | | | | 302 | |
| Financial expenses: | | | | | | | | |
| | | | | | | | | |
| Hedging | | | (2 | ) | | | - | |
| Exchange rate differences | | | (358 | ) | | | (164 | ) |
| Interest and bank charges | | | (105 | ) | | | (100 | ) |
| Accretion of payment obligation related to acquisitions | | | - | | | | (33 | ) |
| | | | | | | | | |
| | | | (465 | ) | | | (294 | ) |
| | | | | | | | | |
| Total financial income (expenses), net | | $ | (37 | ) | | $ | 5 | |
