Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of estimates: | | | | | | | | |
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The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Financial statements in U.S. dollars: | | | | | | | | |
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A substantial portion of the revenues of the Company is generated in U.S. dollars ("dollar"). In addition, a substantial portion of the costs of the Company is incurred in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company operates. |
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The financial statements of the foreign subsidiary, whose functional currency has been determined to be its local currency, have been translated into U.S. dollars in accordance with Accounting Codification Statement ("ASC") 830, "Foreign Currency Translation". All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the period. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in shareholders' equity. |
Consolidation, Policy [Policy Text Block] | ' |
Principles of consolidation: | | | | | | | | |
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The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. Intercompany transactions and balances have been eliminated upon consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash equivalents: | | | | | | | | |
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Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. |
Inventory, Policy [Policy Text Block] | ' |
Inventories: | | | | | | | | |
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Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising from slow-moving items or technological obsolescence. |
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Cost is determined as follows: |
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Raw materials, parts and supplies - using the "first-in, first-out" method. |
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Work-in-progress and finished products - on the basis of direct manufacturing costs with the addition of indirect manufacturing costs. |
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The Company periodically assesses its inventories valuation in respect of obsolete and slow moving items by reviewing revenue forecasts and technological obsolescence. When inventories on hand exceed the foreseeable demand or become obsolete, the value of excess inventory, which at the time of the review was not expected to be sold, is written off. |
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During 2013 and 2012, the Company recorded inventory write-offs of $46 and $45, respectively, within the cost of goods sold. |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and equipment and intangible asset: | | | | | | | | |
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Property and equipment as well as an intangible asset are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: |
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| | % | |
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Intangible asset | | | 20 | | |
Computers, software and related equipment | | 20 | – | 33 | |
Office furniture and equipment | | 10 | – | 20 | |
Leasehold improvements | | Over the term of the lease or the life | |
of the asset, whichever is shorter |
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The long-lived assets of the Company and its subsidiary are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. As of December 31, 2013 and 2012, no impairment losses have been identified. |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue recognition: | | | | | | | | |
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The Company and its subsidiary generate their revenues from the sale of their products through a direct and indirect sales force. |
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Revenues from products are recognized in accordance with ASC 605-15, "Revenue Recognition in Financial Statements", when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the seller's price to the buyer is fixed or determinable, no further obligation exists and collectability is reasonably assured. |
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Generally, the Company does not grant a right of return. However, certain distributors are allowed, in the sixth month after the initial stock purchase, to rotate stock that has not been sold for other products. This stock rotation may be repeated every six months thereafter for 15-18 months, based on a fixed percentage at no more than the distributor's purchases during the previous six months. Revenues subject to stock rotation rights are deferred until the products are sold to the end customer or until the rotation rights expire. |
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Service revenues are deferred and recognized on a straight-line basis over the term of the service agreement. Service revenues are immaterial in proportion to the Company's revenues. |
Research and Development Expense, Policy [Policy Text Block] | ' |
Engineering and product development costs: | | | | | | | | |
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Engineering and product development costs are charged to the statement of operations as incurred. |
Income Tax, Policy [Policy Text Block] | ' |
Income taxes: | | | | | | | | |
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The Company and its subsidiary account for income taxes in accordance with ASC 740, "Income Taxes" (“ASC 740”). This Statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiary provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. |
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ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. No liability for unrecognized tax benefits was recorded as a result of the implementation of ASC 740 as of December 31, 2013 and 2012. |
Standard Product Warranty, Policy [Policy Text Block] | ' |
Warranty costs: | | | | | | | | |
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The Company offers a warranty period for all of its products. Warranty periods range from one to two years depending on the product. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number of units sold, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. |
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Warranty liability accruals were $104 and $63 for the years ended December 31, 2013 and December 31, 2012 respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Accounting for stock-based compensation: | | | | | | | | |
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The Company accounts for stock-based compensation in accordance with ASC 718. |
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ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. |
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The Company estimates the fair value of stock options granted under ASC 718 using the Black-Scholes option-pricing model that uses the following assumptions. |
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Expected volatility is based on historical volatility that is representative of future volatility over the expected term of the options. The expected term of options granted was determined based on the simplified method, which is calculated as the midpoint between the vesting date and the end of the contractual term of the option. The Company uses the simplified method as it has determined that sufficient data is not available to develop an estimate of the expected option term based upon historical participant behavior. The risk free interest rate is based on the yield of U.S. Treasury bonds with equivalent terms. The dividend yield is based on the Company's historical and future expectation of dividends payouts. The Company has not paid cash dividends historically and has no plans to pay cash dividends in the foreseeable future. |
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The Company recognizes compensation expense based on awards ultimately expected to vest, net of estimated forfeitures at the time of grant. Estimated forfeitures are based on historical pre-vesting forfeitures. ASC 718 requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
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There were no options granted in 2013. The fair value for options granted in 2012 is amortized over their vesting period using a straight-line recognition method and estimated at the date of grant with the following assumptions: |
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Weighted Average fair value | | | 0.45 | | | | | |
Dividend yield | | | 0 | % | | | | |
Expected volatility | | | 74.4 | % | | | | |
Risk-free interest | | | 1.04 | % | | | | |
Expected life (years) | | | 6.25 | | | | | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair value of financial instruments and securities: |
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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: |
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| Level 1 - | inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | | | | | | |
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| Level 2 - | inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | | | | | | |
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| Level 3 - | inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | | | | | | |
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The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, long-term deposits, trade receivables and trade payables approximate their fair value due to the short-term maturities of such instruments. |
Earnings Per Share, Policy [Policy Text Block] | ' |
Basic and diluted net earnings (loss) per share: | | | | | | | | |
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Basic net earnings loss per share is computed based on the weighted average number of Common shares outstanding during each year. Diluted net loss per share are computed based on the weighted average number of Common shares outstanding during each year, plus dilutive potential Common shares considered outstanding during the year, if any, in accordance with ASC 260, "Earnings per Share". |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations of credit risks: | | | | | | | | |
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Financial instruments that potentially subject the Company and its subsidiary to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, long term deposits and trade receivables. |
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Cash and cash equivalents are invested in banks in the U.S. and in the UK. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. |
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Trade receivables of the Company and its subsidiary are mainly derived from sales to customers located primarily in the U.S. and in Europe. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company and its subsidiary have determined to be doubtful of collection. |
Comprehensive Income, Policy [Policy Text Block] | ' |
Comprehensive income: | | | | | | | | |
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The Company accounts for comprehensive income in accordance with ASC 220, "Reporting Comprehensive Income". This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The items in comprehensive income relate to unrealized losses and gains from foreign currency translation adjustments and to unrealized losses and gain from marketable securities. |
Revenue Recognition Leases, Operating [Policy Text Block] | ' |
Operating lease: | | | | | | | | |
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The Company and its subsidiary have operating lease agreements for the lease of their building facilities in the U.S. and UK. The rent in connection with the leases is charged to expense over the lease term. If rental payments are not made on a straight-line basis, rental expenses are nevertheless recognized on a straight-line basis. |
Marketable Securities, Policy [Policy Text Block] | ' |
Marketable securities: | | | | | | | | |
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The Company classifies its investment in Telkoor's shares in accordance with ASC 320, "Investment in Debt and Equity Securities" and ASC 325, “Investment – Other”. Marketable securities classified as “available for sale securities” are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholder’s equity in "accumulated other comprehensive loss" in equity. When evaluating the investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company's intent to sell, or whether it is more likely than not that it will be required to sell, the investment before recovery of the investment's amortized cost basis. |
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Equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments), as described in ASC 325-20. |