Arotech (ARTX) 10-K 16 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 14, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AROTECH CORPORATION
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		26,409,932
Entity Public Float			$ 61,615,918
Amendment Flag	false
Entity Central Index Key	916,529
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 7,130,983	$ 10,608,420
Restricted collateral deposits	268,980	89,985
Trade receivables	16,821,737	17,401,479
Unbilled receivables	10,981,577	12,132,484
Other accounts receivable and prepaid expenses	2,156,896	1,007,358
Inventories	10,318,021	9,607,836
Total current assets	47,678,194	50,847,562
LONG TERM ASSETS:
Contractual and Israeli statutory severance pay fund	3,177,238	5,370,755
Other long term receivables	56,662	23,403
Property and equipment, net	5,915,240	6,385,238
Other intangible assets, net	6,823,346	9,334,730
Goodwill	45,489,517	45,463,027
Discontinued operations	270,139	68,301
Total long term assets	61,732,142	66,645,454
Total assets	109,410,336	117,493,016
CURRENT LIABILITIES:
Trade payables	4,362,804	5,914,042
Other accounts payable and accrued expenses	5,597,558	5,560,040
Current portion of long term debt	1,828,840	4,362,438
Short term bank credit	2,973,032	4,060,000
Severance payable	2,577,472	0
Deferred revenues	6,421,271	6,879,815
Total current liabilities	23,760,977	26,776,335
LONG TERM LIABILITIES:
Contractual and accrued Israeli statutory severance pay	3,891,710	7,497,685
Long term portion of debt	8,703,736	11,856,522
Deferred income tax liability	7,868,125	7,031,564
Other long term liabilities	100,742	264,244
Discontinued operations	0	19,295
Total long-term liabilities	20,564,313	26,669,310
Total liabilities	44,325,290	53,445,645
Share capital –
Common stock – $0.01 par value each; Authorized: 50,000,000 shares as of December 31, 2016 and 2015; Issued and outstanding: 26,438,234 and 24,697,335 shares as of December 31, 2016 and 2015, respectively	264,382	246,973
Preferred shares – $0.01 par value each; Authorized: 1,000,000 shares as of December 31, 2016 and 2015; No shares issued or outstanding as of December 31, 2016 and 2015	0	0
Additional paid-in capital	250,405,012	246,591,415
Accumulated deficit	(185,402,893)	(182,554,637)
Notes receivable from stockholders	(908,054)	(908,054)
Accumulated other comprehensive income	726,599	671,674
Total stockholders’ equity	65,085,046	64,047,371
Total liabilities and stockholders’ equity	$ 109,410,336	$ 117,493,016

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Common Stock - par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock - authorized	50,000,000	50,000,000
Common stock- shares issued	26,438,234	24,697,335
Common stock - shares outstanding	26,438,234	24,697,335
Preferred shares - par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred shares - shares authorized	1,000,000	1,000,000
Preferred shares - shares issued	0	0
Preferred shares -shares outstanding	0	0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 92,975,752	$ 96,573,947	$ 103,562,349
Cost of revenues	64,825,416	68,456,322	70,854,737
Research and development expenses	2,722,965	3,075,362	2,926,228
Selling and marketing expenses	7,029,090	5,373,421	5,921,338
General and administrative expenses	15,308,461	16,339,027	17,261,358
Amortization of intangible assets	2,875,543	3,043,536	2,696,740
Total operating costs and expenses	92,761,475	96,287,668	99,660,401
Operating income	214,277	286,279	3,901,948
Other income (expense), net	64,832	(24,181)	2,512,560
Financial expense, net	(975,263)	(1,152,121)	(1,507,489)
Total other income (expense)	(910,431)	(1,176,302)	1,005,071
Income (loss) from continuing operations before income tax expense	(696,154)	(890,023)	4,907,019
Income tax expense	783,420	1,160,946	1,023,837
Income (loss) from continuing operations	(1,479,574)	(2,050,969)	3,883,182
Loss from discontinued operations	(1,368,682)	(894,057)	(396,221)
Net income (loss)	(2,848,256)	(2,945,026)	3,486,961
Other comprehensive income (loss), net of $0 income tax
Foreign currency translation adjustment	54,925	14,634	(1,205,589)
Comprehensive income (loss)	$ (2,793,331)	$ (2,930,392)	$ 2,281,372
Income (loss) per share of common stock:
Basic – continuing operations (in Dollars per share)	$ (0.06)	$ (0.08)	$ 0.18
Basic – discontinued operations (in Dollars per share)	(0.05)	(0.04)	(0.02)
Basic net income (loss) per share (in Dollars per share)	(0.11)	(0.12)	0.16
Diluted – continuing operations (in Dollars per share)	(0.06)	(0.08)	0.17
Diluted – discontinued operations (in Dollars per share)	(0.05)	(0.04)	(0.02)
Diluted net income (loss) per share (in Dollars per share)	$ (0.11)	$ (0.12)	$ 0.15
Weighted average number of shares used in computing basic net income (loss) per share (in Shares)	25,494,097	23,687,733	21,934,532
Weighted average number of shares used in computing diluted net income (loss) per share (in Shares)	25,494,097	23,687,733	22,537,272

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Notes Receivable from Stockholders [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2013	$ 201,632	$ 229,917,341	$ (183,096,572)	$ (908,054)	$ 1,862,629	$ 47,976,976
Balance (in Shares) at Dec. 31, 2013	20,163,163
Stock based compensation		1,411,970				1,411,970
Restricted stock issued	$ 3,441	(3,441)
Restricted stock issued (in Shares)	344,106
Sales of stock, net of offering costs	$ 32,890	10,665,282				10,698,172
Sales of stock, net of offering costs (in Shares)	3,289,000
Purchase of treasury shares	$ (1,000)	(228,042)				(229,042)
Purchase of treasury shares (in Shares)	(100,000)
Issuance of stock – acquisition	$ 7,750	4,208,250				4,216,000
Issuance of stock – acquisition (in Shares)	775,000
Restricted stock units vested	$ 618	(618)
Restricted stock units vested (in Shares)	61,852
Foreign currency translation adjustment					(1,205,589)	(1,205,589)
Net loss			3,486,961			3,486,961
Balance at Dec. 31, 2014	$ 245,331	245,970,742	(179,609,611)	(908,054)	657,040	66,355,448
Balance (in Shares) at Dec. 31, 2014	24,533,121
Stock based compensation		622,315				622,315
Restricted stock issued	$ 570	(570)
Restricted stock issued (in Shares)	57,028
Restricted stock units vested	$ 1,072	(1,072)
Restricted stock units vested (in Shares)	107,186
Foreign currency translation adjustment					14,634	14,634
Net loss			(2,945,026)			(2,945,026)
Balance at Dec. 31, 2015	$ 246,973	246,591,415	(182,554,637)	(908,054)	671,674	$ 64,047,371
Balance (in Shares) at Dec. 31, 2015	24,697,335					24,697,335
Stock based compensation		878,007				$ 878,007
Restricted stock issued	$ 3,107	(3,107)
Restricted stock issued (in Shares)	310,735
Sales of stock, net of offering costs	$ 15,000	2,937,999				2,952,999
Sales of stock, net of offering costs (in Shares)	1,500,000
Restricted stock units vested	$ 562	(562)
Restricted stock units vested (in Shares)	56,202
Restricted stock forfeitures	$ (1,260)	1,260
Restricted stock forfeitures (in Shares)	(126,038)
Foreign currency translation adjustment					54,925	54,925
Net loss			(2,848,256)			(2,848,256)
Balance at Dec. 31, 2016	$ 264,382	$ 250,405,012	$ (185,402,893)	$ (908,054)	$ 726,599	$ 65,085,046
Balance (in Shares) at Dec. 31, 2016	26,438,234					26,438,234

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (2,848,256)	$ (2,945,026)	$ 3,486,961
Adjustments required to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	1,789,041	1,851,982	1,558,506
Amortization of intangible assets	2,875,543	3,043,536	2,696,740
Stock based compensation	878,007	622,315	1,411,970
Change in fair value of acquisition earn out liabilities	0	0	(2,000,000)
(Gain) loss from sale of property and equipment	8,680	(781,023)	12,809
Deferred tax expense	836,561	914,543	598,500
Changes in operating assets and liabilities:
Trade receivables	659,468	194,332	(2,529,966)
Unbilled receivables	1,155,454	3,804,576	2,337,691
Other accounts receivable and prepaid expenses	(1,176,895)	148,269	582,502
Inventories	(652,391)	203,947	809,827
Severance pay, net	1,210,662	43,244	38,463
Trade payables	(1,532,471)	(858,040)	(1,143,632)
Other accounts payable and accrued expenses	(103,186)	(944,376)	6,480
Deferred revenues	(458,544)	(946,363)	(464,211)
Net cash provided by operating activities	2,641,673	4,351,916	7,402,640
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of UEC(1)	0	0	(29,113,655)
Changes in restricted collateral deposits	(176,354)	146,443	262,067
Purchase of property and equipment	(1,555,788)	(2,002,104)	(2,122,886)
Additions to capitalized software development	(364,159)	(537,901)	(377,954)
Proceeds from sale of property and equipment	31,343	953,824	25,892
Net cash used in investing activities	(2,064,958)	(1,439,738)	(31,326,536)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long term debt	(16,682,823)	(5,096,130)	(3,110,640)
Proceeds from long term debt	11,000,000	0	22,500,000
Change in short term bank credit	(1,086,968)	4,026,762	33,238
Purchase of treasury stock	0	0	(229,042)
Payment of acquisition related earnout	0	(2,500,000)	0
Proceeds from sale of common stock, net of offering costs	2,952,999	0	10,698,173
Net cash provided by (used in) financing activities	(3,816,792)	(3,569,368)	29,891,729
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(3,240,077)	(657,190)	5,967,833
CASH DIFFERENCES DUE TO EXCHANGE RATE CHANGES	(237,360)	(26,174)	(497,374)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	10,608,420	11,291,784	5,821,325
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	7,130,983	10,608,420	11,291,784
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid during the year	712,558	1,084,710	1,004,052
Taxes on income paid during the year	221,654	679,055	256,246
SUPPLEMENTARY INFORMATION ON NON-CASH TRANSACTIONS:
Common stock issued in acquisition of UEC	$ 0	$ 0	$ 4,216,000

Cash Flow, Supplemental Disclos

Cash Flow, Supplemental Disclosures	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Cash Flow, Supplemental Disclosures [Text Block]	(1) On April 1, 2014, the Company acquired all of the outstanding membership interests of UEC Electronics, LLC (“UEC”). The cash portion of the transaction is summarized as follows: Cash paid at closing 28,000,000 Net working capital adjustment (paid in May 2014) 1,206,245 Cash acquired (92,590 ) Total $ 29,113,655

NOTE 1_ - GENERAL

NOTE 1: - GENERAL	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1:– GENERAL a. Corporate structure: Arotech Corporation (“Arotech”) and its wholly-owned subsidiaries (the “Company”) provide defense and security products for the military, law enforcement, emergency services and homeland security markets, including advanced zinc-air and lithium batteries and chargers, and multimedia interactive simulators/trainers. The Company operates primarily through its wholly-owned subsidiaries FAAC Incorporated, a Michigan corporation located in Ann Arbor, Michigan (Training and Simulation Division) with a location in Orlando, Florida; Epsilor-Electric Fuel Ltd. (“Epsilor-EFL”), an Israeli corporation located in Beit Shemesh, Israel (between Jerusalem and Tel-Aviv), Dimona, Israel (in Israel’s Negev desert area) and Sderot, Israel (near the Gaza Strip) (Power Systems Division); UEC Electronics, LLC (“UEC”), a South Carolina limited liability company located in Hanahan, South Carolina (Power Systems Division). b. Discontinued operations Asset Held for Sale and Discontinued Operations In August 2016, the Board approved a strategic shift to discontinue the Flow Battery segment (“the segment”) with an effective date of August 31, 2016. The principal activities of the Flow Battery segment were research and development related and were focused on developing a commercial application based upon the Iron Flow Storage concept. In connection with the discontinuance of the operations, management has developed a plan to sell the assets to a third party for future development. Management believes that the Company will be able to execute the plan in 2017. The amounts presented in the consolidated statements of comprehensive income as discontinued operations represent research and development and general and administrative expenses. As the Flow Battery segment is reported within the Epsilor-EFL legal entity and the legal entity has net operating loss carryforwards for which the Company has recorded a valuation allowance, there is no tax impact. Included in the Flow Battery segment’s general and administrative expenses for the year ended December 31, 2016, is a contractual buyout associated with the termination of the Chairman of the Flow Battery segment of $524,052. The impact of the discontinued operations on operating and investing activities within the consolidated statements of cash flows for the year ended December 31, 2016, 2015, and 2014 was ($1,337,751), ($879,428), and ($396,221); and ($252,064), ($22,075), and none, respectively. The assets and liabilities of the Flow Battery segment have been classified as held for sale as of December 31, 2016 and 2015. These amounts consist of the following carrying values in each major class. December 31, 2016 December 31, 2015 ASSETS Property and equipment, net $ 270,139 $ 55,032 Long-term assets – 13,269 Total assets $ 270,139 $ 68,301 LIABILITIES Long term liabilities – 19,295 Total liabilities $ – $ 19,295 Unless otherwise indicated, discontinued operations are not included in the reported results. The Notes to the Consolidated Financial Statements relate to the Company’s continuing operations. c. Related parties Note Receivable Two former executives entered into non-recourse promissory notes whereby the Company provided the note to the executives and the executives in turn exercised stock options. The promissory notes originally accrued interest at an annual rate of 1% over the then federal funds rate. In 2008, the Company stopped accruing interest on the promissory notes. As of December 31, 2016 and 2015, the aggregate amount outstanding pursuant to this promissory note was $908,054. UEC Facility Headquarters On October 31, 2014, the Company entered into a lease agreement with UEC Properties, LLC, a company controlled by the former owners of UEC, and now consultants and shareholders of the Company, for land and buildings that represent the headquarters of UEC Electronics. The lease term with UEC Properties commenced on January 1, 2015 and it extends for ten years, expiring on December 31, 2024. The 2016 monthly lease payment is $29,585 and increases at a rate of 2.5% per year through the term of the lease. Lease expense recognized in 2016 and 2015 was $355,000 and $346,344, respectively. Upon written notice, the Company and UEC Properties, LLC, may elect to terminate the lease after five years. Admiralty Partners On February 2, 2016, the Company and Admiralty Partners (the “Investor”) entered into a Stock Purchase Agreement (the “Investment Agreement”) providing for the sale to the Investor of a total of 1,500,000 shares of the Company’s common stock at a price valued at $1.99 per share. As the Investor was also given the right to nominate a member of the Board of Directors pursuant to the terms of the Investment Agreement, and the shares were issued as a discount to the then market price, this resulted in additional stock compensation expense of $375,000. Subsequently, on February 3, 2016, the Company entered into a consulting agreement with the Investor for a period of three years. In exchange, the Company pays an annual fee equal to the difference between total accrued compensation of the Board member and $125,000. The agreement can be terminated by either party upon sufficient written notice. Total compensation expense recognized in 2016 was $27,000.

NOTE 2_ - SIGNIFICANT ACCOUNTIN

NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2:– SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). a. Principles of consolidation: The consolidated financial statements include the accounts of Arotech and its wholly owned subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. b. Financial Statements in U.S. Dollars: A majority of the revenues of the Company are generated in U.S. dollars (“dollars”). In addition, a substantial portion of the Company’s costs are incurred in dollars. Management believes that the dollar is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company including most of its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than dollars are re-measured into dollars, with resulting gains and losses reflected in the consolidated statements of comprehensive income as financial income or expenses, as appropriate. The majority of transactions of Epsilor-EFL are in New Israel Shekels (“NIS”) and a substantial portion of Epsilor-EFL’s costs is incurred in NIS. Management believes that the NIS is the functional currency of Epsilor-EFL. Accordingly, the financial statements of Epsilor-EFL have been translated into dollars. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of comprehensive income amounts have been translated using the weighted average exchange rate for the period. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. c. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less when acquired. d. Restricted collateral deposits: Restricted collateral deposits are primarily invested in highly liquid deposits which are used as a security for the Company’s performance guarantees at FAAC and Epsilor-EFL. e. Inventories: Inventory costs include material, labor, and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at lower of cost or market and expense estimates are made for excess and obsolete inventories. Based on this evaluation, provisions are made to write inventory down to its market value. In 2016, 2015, and 2014, the Company wrote off approximately $359,000, $321,000, and $509,000 respectively, of obsolete inventory, which has been included in the cost of revenues. Cost is determined by first-in, first-out (“FIFO”) method. f. Property and equipment: Property and equipment are stated at cost net of accumulated depreciation and investment grants received from the State of Israel for investments in fixed assets under the Law for the Encouragement of Capital Investments, 5719-1959 (the “Investments Law”). The Company did not receive any investment grants in 2016, 2015, or 2014, respectively. Depreciation is calculated by the straight-line method over the following estimated useful lives of the assets: Depreciable life (in years) Computers and related equipment 3 to 5 Motor vehicles 5 to7 Office furniture and equipment 3 to 5 Machinery, equipment and installations 5 to 10 Buildings 30 Land Not depreciated Leasehold improvements Shorter of the term of the lease or the life of the asset Demo inventory 3 to 5 The Company tests long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also perform a test for recoverability when management has committed to a plan to sell or otherwise dispose of an asset group. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. g. Goodwill and Other Intangible Assets: Goodwill may result from our business acquisitions. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. As of December 31, 2016, we had recorded goodwill of $45.5 million. We allocate goodwill acquired in a business combination to the appropriate reporting unit as of the acquisition date. Our two reporting units, Training and Simulation and Power Systems Divisions are also our reportable segments. The associated goodwill was determined when the specific businesses were purchased. For the Training and Simulation Division and the Power Systems Division, we have recorded goodwill amounting to $24.4 million and $21.1 million, respectively. When testing goodwill for impairment we have the option of performing a qualitative assessment before calculating the fair value of a reporting unit. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is greater than the carrying amount, the two-step impairment test would not be required. If we cannot determine on the basis of qualitative factors that goodwill is not impaired, goodwill is then tested for impairment by using a discounted cash flow analysis. This type of analysis requires us to make assumptions and estimates regarding industry economic factors and the profitability of future business strategies. Significant estimates used in the methodologies include estimates of future cash flows, future short-term and long-term growth rates, weighted average cost of capital and estimates of market multiples for the reportable units. It is our policy to conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations. In assessing the recoverability of our goodwill, we may be required to make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. This process is subjective and requires judgment at many points throughout the analysis. If our estimates or their related assumptions change in subsequent periods or if actual cash flows are below our estimates, we may be required to record impairment charges for these assets not previously recorded. The Company also maintains other indefinite-lived intangible assets and definite-lived intangible assets. The indefinite-lived intangible assets are not amortized but are tested for impairment on at least an annual basis or when determined to have a finite useful life. Substantially all of the indefinite-lived intangible assets are trademarks. Definite-lived intangible assets are reviewed for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. h. Revenue recognition: The Company is a defense and security products and services company, engaged in two business areas: interactive simulation for military, law enforcement and commercial markets; and power systems and batteries for the military, commercial and medical markets. During 2016, 2015, and 2014, the Company recognized revenues (i) from the sale and customization of interactive training systems and from the maintenance services in connection with such systems (Training and Simulation Division); (ii) from the sale of batteries, chargers and adapters, and under certain development contracts with the U.S. Army (Power Systems Division); and (iii) from the sale of lifejacket lights (Power Systems Division). Revenues from certain products sold by the Power Systems Division are recognized when persuasive evidence of an agreement exists, delivery has occurred, the fee is fixed or determinable, collectability is probable, and no further obligation remains. Typically revenue is recognized, per the contract, when the transaction is entered into the U.S. Government’s Wide Area Workflow system, which occurs after the products have been accepted at the plant or when shipped. Sales to other entities are recorded in accordance with the contract, either when shipped or delivered. Normally there are no further obligations that would preclude the recognition of revenue. Additionally, certain contracts are recognized using contract accounting on a percentage of completion method. Revenues from contracts in the Training and Simulation Division and Power Systems Division that involve customization of the system to customer specifications are recognized using contract accounting on a percentage of completion method, in accordance with the “Input Method.” The amount of revenue recognized is based on the percentage to completion achieved. The percentage to completion is measured by monitoring progress using records of actual time, materials and other costs incurred to date in the project compared to the total estimated project requirement. Estimates of total project requirements are based on prior experience of customization, delivery and acceptance of the same or similar technology and are reviewed and updated regularly by management. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. Normally there are no further obligations that would preclude the recognition of revenue. The Company believes that the use of the percentage of completion method is appropriate for certain contracts as the Company has the ability to make reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs. In addition, contracts executed include provisions that clearly specify the enforceable rights regarding services to be provided and received by the parties to the contracts, the consideration to be exchanged and the manner and the terms of settlement, including in cases of terminations for convenience. In all cases, the Company expects to perform its contractual obligations and its customers are expected to satisfy their obligations under the contract. Revenues from products that do not require significant customization are recognized when persuasive evidence of an agreement exists, delivery has occurred, no significant obligations with regard to implementation remain, the fee is fixed or determinable and collectability is probable. Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support services. Revenues from training are recognized when it is performed. The Vendor Specific Objective Evidence (“VSOE”) of fair value of the maintenance, training and support services is determined based on the price charged when sold separately or when renewed. i. Trade receivables The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and its relationships with, and the economic status of, its customers. During the years ended December 31, 2016 and 2015, the Company made no provisions or had any recoveries of doubtful accounts and had no reserves at either year end. The Company believes its exposure to concentrations of credit risk is limited due to the nature of its operations. Unbilled receivables include cost and gross profit earned in excess of billing. Deferred revenues include unearned amounts received under maintenance and support services, customer prepayments and billing in excess of costs and estimated earnings on uncompleted contracts. j. Warranty: The Company typically offers a one to two year warranty for many of its products. The specific terms and conditions of those warranties vary depending upon the product sold and country in which the Company does business. The Company estimates the costs that may be incurred under its basic limited warranty, including parts and labor, and records deferred revenue in the amount of such costs at the time product revenue is recognized in the Training and Simulation Division. In the Power Systems Division, warranty costs are estimated, accrued and recorded on the balance sheet in deferred revenues. Factors that affect the Company’s warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its reserves and adjusts the amounts as necessary. (See Note 16.) k. Research and development cost: The Company capitalizes certain software development costs, subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model or a detailed program design. Research and development costs incurred in the process of developing product improvements or new products are generally charged to expenses as incurred. Significant costs incurred by the Company between completion of the working model or a detailed program design and the point at which the product is ready for general release have been capitalized. Capitalized software costs will be amortized by the greater of the amount computed using: (i) the ratio that current gross revenues from sales of the software bears to the total of current and anticipated future gross revenues from sales of that software, or (ii) the straight-line method over the estimated useful life of the product (one to three years). The Company assesses the net realizable value of this intangible asset on a regular basis by determining whether the amortization of the asset over its remaining life can be recovered through undiscounted future operating cash flows from the specific software product sold. Based on its most recent analyses, management believes that no impairment of capitalized software development costs exists as of December 31, 2016. In 2016 and 2015, the Training and Simulation Division capitalized approximately $364,000 and $538,000, respectively, in software development costs that will be amortized on a straight-line method over 2 years, the useful life of the software. l. Income taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liability account balances are determined based on tax credit carryforwards and differences between the financial reporting and the tax basis 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 provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company has adopted the provisions of the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASC 740-10, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. The Company must determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets the more-likely-than-not recognition threshold, the position is measured to determine the amount of benefit to recognize in the financial statements. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company’s determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company’s future financial statements. m. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted collateral deposits and trade receivables. Cash and cash equivalents are invested mainly in U.S. dollar deposits with major Israeli and U.S. banks. Such deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are mainly derived from sales to customers located primarily in the United States and Israel along with the countries listed in footnote 15.c. Management believes that credit risks are moderated by the diversity of its end customers and geographical sales areas. The Company performs ongoing credit evaluations of its customers’ financial condition. The Company had no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements as of December 31, 2016 and 2015. n. Basic and diluted net income per share: Basic net income per share is computed based on the weighted average number of shares of common stock and participating securities outstanding during each year. Diluted net income per share includes the dilutive effect of additional potential common stock issuable under our share-based compensation plans, using the “treasury stock” method. Unvested restricted stock issued to our employees and directors are “participating securities” and as such, are included, net of estimated forfeitures, in the total shares used to calculate the Company’s basic and diluted net income per share. In the event of a net loss, unvested restricted stock awards are excluded from the calculation of both basic and diluted net loss per share. The total weighted average number of shares related to the outstanding common stock equivalents excluded from the calculations of diluted net income per share were none, 602,740, and none for the years ended December 31, 2016, 2015, and 2014, respectively. o. Accounting for stock-based compensation: Stock-based awards to employees are recognized as compensation expense based on the calculated fair value on the date of grant. The costs are amortized over the straight line vesting period. The Company granted restricted stock and restricted stock units in 2016, 2015, and 2014. The Company typically uses a 5-10% forfeiture rate for restricted stock and restricted stock units and adjusts both forfeiture rates based on historical forfeitures. Each restricted stock unit is equal to one share of Company stock and is redeemable only for stock. p. Fair value of financial instruments: The following methods and assumptions were used by the Company in estimating their fair value disclosures for financial instruments using the required three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which may require the Company to develop its own assumptions. The carrying amounts of cash and cash equivalents, restricted collateral deposits, trade and other receivables, short-term bank credit, and trade payables approximate their fair value due to the short-term maturity of such instruments (Level 1). The fair values of long-term promissory notes are estimated by discounting the future cash flows using current interest rates for loans of similar terms and maturities. The carrying amount of the long-term debt and contractual severance approximates the estimated fair values at December 31, 2016, based upon the Company’s ability to acquire similar debt or fulfill similar obligations at similar maturities (Level 3). q. Severance pay: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. Israeli employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability for all of its Israeli employees is fully provided for by monthly deposits into severance pay funds held by insurance companies on behalf of the employees, insurance policies and by accrual. The fair value of these funds, which are considered Level 2 fair value measurements, is recorded as an asset in the Company’s consolidated balance sheet. In addition, according to certain employment agreements, the Company is obligated to provide for a special severance pay in addition to amounts due to certain employees pursuant to Israeli severance pay law. During the years ended December 31, 2016, 2015 and 2014, the Company had made provisions of $1,022,000, $143,000, and $124,000, respectively, for this special severance pay. As of December 31, 2016 and 2015 the unfunded severance pay in that regard amounted to $2,130,000 and $1,387,000, respectively. Severance expenses from continuing operations for the years ended December 31, 2016, 2015, 2014, amounted to $1,389,000, $625,000, and $779,000, respectively. In December 2016, the Company and its former Chief Executive Officer (“former Executive”) signed an agreement whereby the Company and the former Executive agreed to early termination of the former Executive’s employment agreement. The additional expense and accrual, included above, related to this termination, were approximately $925,000 and $2,050,000, respectively. r. Advertising costs: The Company records advertising costs as incurred. Advertising expense for the years ended December 31, 2016, 2015, and 2014 was approximately $72,000, $159,000, and $111,000, respectively. s. New accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard relates to revenue from contracts with customers, which, along with amendments issued in 2015 and 2016, will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to use a five-step analysis of transactions to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company has formed a task force to review material contracts from our respective business segments. The task force is currently evaluating those contracts to determine the impact on the Company’s consolidated financial position or results of operations. The standard, as amended, will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. We expect to adopt the standard on a modified retrospective basis in 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Upon adoption, the Company expects that the ROU asset and lease liability will be recognized in the balance sheets in amounts that will be material. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard introduces targeted amendments intended to simplify the accounting for stock compensation. Among other things, the ASU requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments provide guidance on eight specific cash flow issues for which the current accounting framework does not provide specific guidance. The amendments are effective for annual periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test and requires businesses to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments are effective for annual periods beginning after December 15, 2019 with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business u. Use of estimates: The preparation of financial statements in conformity with U.S. 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. v. Reclassification: Prior period amounts are reclassified, when necessary, to conform to the current period presentation. w. Business Combinations: The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred.

NOTE 3_ - RESTRICTED COLLATERAL

NOTE 3: - RESTRICTED COLLATERAL DEPOSITS	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	NOTE 3:– RESTRICTED COLLATERAL DEPOSITS The following is a summary of restricted collateral deposits as of December 31, 2016 and 2015: December 31, 2016 2015 Deposits in connection with Epsilor/EFL projects $ 268,980 $ 89,985 Total restricted collateral deposits $ 268,980 $ 89,985

NOTE 4_ - OTHER ACCOUNTS RECEIV

NOTE 4: - OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	NOTE 4:– OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES The following is a summary of other accounts receivable and prepaid expenses as of December 31, 2016 and 2015: December 31, 2016 2015 Government authorities $ 877,670 $ 307,339 Israeli statutory severance pay fund 455,172 – Employees 60,296 65,990 Prepaid expenses 761,257 625,511 Other 2,501 8,518 Total $ 2,156,896 $ 1,007,358

NOTE 5_ - INVENTORIES

NOTE 5: - INVENTORIES	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 5:– INVENTORIES The following is a summary of inventories as of December 31, 2016 and 2015: December 31, 2016 2015 Raw and packaging materials $ 8,512,006 $ 8,184,476 Work in progress 917,582 760,585 Finished products 888,433 662,775 Total $ 10,318,021 $ 9,607,836

NOTE 6_ - PROPERTY AND EQUIPMEN

NOTE 6: - PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 6:– PROPERTY AND EQUIPMENT, NET a. Composition of property and equipment is as follows: December 31, 2016 2015 Cost: Computers and related equipment $ 2,733,722 $ 2,703,721 Motor vehicles 717,543 831,925 Office furniture and equipment 1,571,364 1,512,663 Machinery, equipment and installations 7,760,341 7,221,351 Buildings 1,716,924 1,603,374 Land 300,000 300,000 Leasehold improvements 2,172,253 1,982,552 Demo inventory 1,791,751 2,288,031 18,763,898 18,443,617 Accumulated depreciation: Computers and related equipment 2,415,842 2,222,724 Motor vehicles 248,248 298,881 Office furniture and equipment 1,356,671 1,237,923 Machinery, equipment and installations 5,805,540 5,257,976 Buildings 408,194 300,196 Leasehold improvements 1,219,113 1,012,810 Demo inventory 1,395,050 1,727,869 12,848,658 12,058,379 Property and equipment, net $ 5,915,240 $ 6,385,238 b. Depreciation expense amounted to $1,752,084, $1,851,982, and $1,558,506 for the years ended December 31, 2016, 2015 and 2014, respectively.

NOTE 7_ - GOODWILL AND OTHER IN

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	NOTE 7:– GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill The Company allocates goodwill acquired in a business combination to the appropriate reporting unit as of the acquisition date. Currently, the Company’s reporting units are also its reportable segments and the associated goodwill was determined when the specific businesses in the reportable segments were purchased. A summary of the goodwill by business segment is as follows: December 31, 2015 Additions Adjustments (currency) December 31, 2016 Training and Simulation Division $ 24,435,641 $ – $ – $ 24,435,641 Power Systems Division 21,027,386 – 26,490 21,053,876 Total $ 45,463,027 $ – $ 26,490 $ 45,489,517 The Company completed its annual goodwill impairment review using the financial results as of the quarter ended December 31, 2016, using its forecasted plan developed in the fourth quarter. With respect to its Training and Simulation Division, the Company determined, using qualitative factors, that goodwill was not impaired. For its Power Systems Division, the Company determined that it was necessary to perform a quantitative assessment of goodwill for the purpose of determining whether an impairment existed at December 31, 2016. When conducting this analysis, the Company engaged third party valuation experts with a detailed understanding of its Power Systems Division to perform a valuation of the Power Systems Division on a going concern basis. The Company also evaluated its historic financial performance in light of its planned financial performance over the period evaluated by its third party experts. Finally, the Company prepared a discounted cash flow analysis over a five year period so as to derive a reasonable view of the cash flows that the Power Systems Division are projected to generate from 2017-2021. Key valuation assumptions – Power Systems Division Inherent in a valuation of a firm is the reliance on key assumptions, including, but not limited to, the cash flows of the reporting unit, weighted average cost of capital (“WACC”), and terminal growth rates of the Company. In evaluating its key variables, the Company concluded that the WACC and terminal growth rates of the Power Systems Division were approximately 13% and 3%, respectively. As part of its annual budget process and in light of the operating losses of the reporting unit in 2016, the Power Systems Division prepared its 2017 budget and provided a prospective view of their various businesses, including key products, new and existing markets and customers, production processes, and insight into the future growth of the business. To the extent that there is a significant economic downturn, a freeze in military spending, a loss of a major contract or customer, or a significant shift of pre-existing customer arrangements to future years, the Company may need to evaluate goodwill for impairment in between the annual measurement period if events and circumstances indicate that it is more likely than not the asset is impaired. As a result of its quantitative analysis, in which the Company computed the fair value of the Power Systems Division, the Company concluded that the fair value of the reporting unit exceeded the reporting unit’s carrying value by approximately 37%. The Company will continue to monitor the actual results of the reporting unit against its plan and re-evaluate goodwill as required in between the annual measurement period if events and circumstances indicate that it is more likely than not the asset is impaired. The Company also considered its current market capitalization compared to the sum of the estimated fair values of its reporting units in conjunction with each impairment assessment. As a result of these analyses, the Company concluded that the goodwill recorded in relation to the Power Systems Division was not impaired at December 31, 2016. b. Other intangible assets: December 31, 2016 2015 Original Useful life Cost Net book value Cost Net book value Technology 4 - 8 years $ 9,988,000 $ 1,617,000 $ 9,988,000 $ 2,377,250 Capitalized software costs 1 - 3 years 4,974,105 542,220 4,609,946 630,230 Trademarks 10 years 28,000 2,800 28,000 5,600 Backlog/customer relationship 1 - 10 years 2,844,000 8,826 2,844,000 38,650 Covenant not to compete 6 years 400,000 172,000 400,000 304,000 Customer list 2 - 10 years 14,173,645 3,681,500 14,173,645 5,180,000 32,407,750 $ 6,024,346 32,043,591 $ 8,535,730 Less - accumulated amortization (26,383,404 ) (23,507,861 ) Amortized cost 6,024,346 8,535,730 Trademarks (indefinite lives) 799,000 799,000 Net book value $ 6,823,346 $ 9,334,730 Amortization expense amounted to $2,875,543, $3,043,536, and $2,696,740 for the years ended December 31, 2016, 2015 and 2014, respectively, including amortization of capitalized software costs of $88,010, $255,000, and $378,000, respectively. c. Estimated amortization expenses, using both straight line and accelerated amortization methods, for the years shown is as follows: Year ending December 31, 2017 $ 2,210,624 2018 1,415,221 2019 885,000 2020 574,500 2021 291,500 Thereafter 647,501 Total $ 6,024,346 Goodwill and other intangible assets are adjusted on a quarterly basis for any change due to currency fluctuations and any variation is included in the accumulated other comprehensive income on the consolidated balance sheets.

NOTE 8_ - LOANS

NOTE 8: - LOANS	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Short-term Debt [Text Block]	NOTE 8:– LOANS On March 11, 2016, the Company entered into a Credit Facilities agreement (the “Chase Agreement”) with JPMorgan Chase Bank, N.A. (“Chase”), whereby Chase agreed to provide (i) a $15,000,000 revolving credit facility (“Revolver”), (ii) a $10,000,000 Term Loan (the “Term Loan”), and (iii) a $1,000,000 Mortgage Loan (the “Mortgage Loan” and, together with the Revolver and the Term Loan, the “Credit Facilities”) in respect of certain property located in Ann Arbor, Michigan. The maturity of the Revolver is five years from the date of the Chase Agreement. The Revolver maintains an interest rate on a scale ranging from LIBOR plus 1.75% up to LIBOR plus 3.00%. The effective interest rate for the revolver at December 31, 2016 was 4.0%. The maturity of the Term Loan is five years from the date of the Chase Agreement. The Term Loan maintains an interest rate on a scale ranging from LIBOR plus 2.0% up to LIBOR plus 3.25%. The repayment of the Term Loan will consist of 60 consecutive monthly payments of principal plus accrued interest based on annual principal reductions of 10% during the first year, 20% during the second through fourth years, and 30% during the fifth year. The Revolver and Term Loan are secured by the assets of the Company. The effective interest rate for the Term Loan at December 31, 2016 was 4.25%. The maturity of the Mortgage Loan is five years from the date of the Chase Agreement and maintains an interest rate on a scale identical to the Term Loan. The monthly payments on the Mortgage Loan are $5,555 in principal plus accrued interest, with a balloon payment due at the end of month 60. The effective interest rate for the mortgage at December 31, 2016 was 4.25%. The Credit Facilities maintain certain reporting requirements, conditions precedent, affirmative covenants and financial covenants. The financial covenants include that the Company must maintain both a Maximum Debt to EBITDA ratio of 3.00 to 1.00 and a Minimum Fixed Charge Coverage Ratio of 1.20 to 1.00. The company was in compliance with its covenants at December 31, 2016. The Credit Facilities are secured by the Company’s assets and the assets of the Company’s domestic subsidiaries. Minimum loan payments for the Term and Mortgage Loans are as follows: Minimum loan payments December 31, 2017 $ 1,828,840 2018 2,151,040 2019 2,115,583 2020 2,747,460 2021 1,056,284 Thereafter 633,369 Total $ 10,532,576

NOTE 9_ - OTHER ACCOUNTS PAYABL

NOTE 9: - OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	NOTE 9:– OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following is a summary of other accounts payable and accrued expenses as of December 31, 2016 and 2015: December 31, 2016 2015 Employees and payroll accruals $ 3,068,035 $ 3,310,170 Accrued vacation pay 958,160 1,073,348 Accrued expenses 808,284 829,240 Government authorities 763,079 347,282 Total $ 5,597,558 $ 5,560,040

NOTE 10_ - COMMITMENTS AND CONT

NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 10:– COMMITMENTS AND CONTINGENT LIABILITIES a. Royalty commitments: Under Epsilor-EFL’s research and development agreements with the Office of the Chief Scientist (“OCS”), and pursuant to applicable laws, Epsilor-EFL is required to pay royalties at the rate of 3%-3.5% of net sales of products developed with funds provided by the OCS, up to an amount equal to 100% of research and development grants received from the OCS. Amounts due in respect of projects approved after 1999 also bear interest at the LIBOR rate. Epsilor-EFL is obligated to pay royalties only on sales of products in respect of which OCS participated in their development. Should the project fail, Epsilor-EFL will not be obligated to pay any royalties or refund the grants. During 2016, 2015 and 2014, Epsilor-EFL received grants in the total amount of $612,249, $322,820, and $177,918, respectively. No royalties were expensed for 2016, 2015 and 2014, respectively. b. Lease commitments: The Company rents its facilities under various operating lease agreements, which expire on various dates through 2019. The minimum rental payments under non-cancelable operating leases are as follows: December 31 Minimum rental payments 2017 $ 1,060,954 2018 648,202 2019 382,296 2020 – 2021 – Thereafter – Total $ 2,091,452 Total rent expense for the years ended December 31, 2016, 2015, and 2014 were $1,418,136, $1,404,183 and $1,366,192, respectively. c. Guarantees: The Company obtained bank guarantees in the amount of $649,260 in connection with (i) obligations of one of the Company’s subsidiaries to the Israeli customs authorities, and (ii) the obligation of one of the Company’s subsidiaries to secure the return of products loaned to the Company from one of its customers. d. Liens: As security for compliance with the terms related to the investment grants from the State of Israel, Epsilor-EFL has registered floating liens (that is, liens that apply not only to assets owned at the time but also to after-acquired assets) on all of its assets, in favor of the State of Israel. The Company does not have any credit liens collateralized by the assets of the Company and guaranteed by the Company. Epsilor-EFL has recorded a lien on all of its assets in favor of its banks to secure overdraft protection. In addition Epsilor-EFL has a specific pledge on assets in respect of which government guaranteed loans were given. e. Litigation and other claims: As of the date of this filing, there were no material pending legal proceedings against the Company.

NOTE 11_ - COSTS AND ESTIMATED

NOTE 11: - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	12 Months Ended
	Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]
Deferred Revenue Disclosure [Text Block]	NOTE 11:– COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Billings in excess of costs generated under the percentage-of-completion method are recorded as deferred revenues until the revenue recognition criteria are met. Deferred revenues include unearned amounts received under maintenance and support services and customer deposits of $0 and $251,925 for 2016 and 2015, respectively, and billings in excess of costs and estimated earnings on uncompleted contracts. The following is a summary of the costs and estimated earnings on contracts as of December 31, 2016 and 2015. Open contracts are expected to be completed in the following year. The billings in excess of costs are included in the deferred revenues line on the balance sheet: Year ended December 31, 2016 2015 Costs incurred on contracts $ 153,324,167 $ 158,113,695 Estimated earnings 20,754,754 26,759,019 174,078,921 184,872,714 Less billings to date (166,017,018 ) (175,971,136 ) Total $ 8,061,903 $ 8,901,578 Costs and estimated earnings in excess of billings $ 10,981,577 $ 12,132,484 Billings in excess of costs and estimated earnings (included in deferred revenues) (2,919,674 ) (3,230,906 ) Total $ 8,061,903 $ 8,901,578

NOTE 12_ - STOCK-BASED COMPENSA

NOTE 12: - STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Shareholders' Equity and Share-based Payments [Text Block]	NOTE 12:– STOCK-BASED COMPENSATION a. Stockholders’ rights: The Company’s shares confer upon the holders the right to receive notice to participate and vote in the general meetings of the Company and right to receive dividends, if and when declared. b. The Company has adopted the following stock award plans, whereby options may be granted for purchase of shares of the Company’s common stock and where restricted shares and restricted stock units may be granted if approved by the Board of Directors. Each restricted stock unit is equal to one share of Company stock and is redeemable only for stock. Under the terms of the award plans, the Board of Directors or the designated committee grants options, restricted stock and restricted stock units. The Board of Directors or the designated committee also determines the vesting period and the exercise terms. 1. 2007 Non-Employee Director Equity Compensation Plan – 750,000 shares reserved for issuance, of which 162,987 were available for future grants to outside directors as of December 31, 2016. 2. 2009 Equity Incentive Plan – 5,000,000 shares reserved for issuance, of which 2,589,269 were available for future grants to employees and consultants as of December 31, 2016. 3. Under these plans, restricted shares and restricted stock units generally vest after one to three years or pursuant to defined performance criteria; in the event that employment is terminated within that period, unvested restricted shares and restricted stock units generally revert back to the Company. 4. Stock compensation expense is recorded ratably over the vesting period of the option or the restriction period of the restricted shares and restricted stock units. The stock compensation expense that has been charged in the consolidated statements of comprehensive income in respect of restricted shares and restricted stock units to employees and directors in 2016, 2015, and 2014 was $878,000, $622,000, and $1,412,000, respectively. 5. A summary of the status of the Company’s restricted shares and restricted stock units granted as of December 31, 2016 and 2015, and changes during the years ended on those dates, is presented below: Restricted Shares and Restricted Stock Units 2016 2015 2014 Shares Weighted average fair value at grant date Shares Weighted average fair value at grant date Shares Weighted average fair value at grant date Non-vested at the beginning of the year 516,952 $ 2.94 920,678 $ 2.99 584,746 $ 2.52 Changes during year: Restricted stock granted 310,735 $ 2.39 57,028 $ 2.89 341,861 $ 2.60 Restricted units granted 150,500 $ 2.31 – $ – 163,175 $ 2.48 Vested (220,630 ) $ 2.86 (451,122 ) $ 3.15 (166,110 ) $ 2.23 Forfeited (275,259 ) $ 2.96 (9,632 ) $ 2.38 (2,994 ) $ 3.65 Non-vested at the end of the year 482,298 $ 2.41 516,952 $ 2.94 920,678 $ 2.99 Restricted shares vested at end of year 3,626,580 $ 1.86 3,405,960 $ 2.22 2,954,838 $ 2.07 6. The remaining total compensation cost related to non-vested restricted share and restricted stock unit awards not yet recognized (before applying a forfeiture rate) in the income statement as of December 31, 2016 was $188,000. The weighted average period over which this compensation cost is expected to be recognized is approximately one and a half years.

NOTE 13_ - INCOME TAXES

NOTE 13: - INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 13:– INCOME TAXES a. General: As of December 31, 2016, Arotech has net operating loss (“NOL”) carryforwards for U.S. federal income tax purposes of $46.9 million, which are available to offset future taxable income, if any, expiring in 2021 through 2037. Utilization of U.S. net operating losses is subject to substantial annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. At December 31, 2016, the Company had net deferred tax assets before valuation allowance of $43.0 million. The deferred tax assets are primarily composed of federal, state and foreign tax NOL carryforwards. Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset its net deferred tax asset. Additionally, the future utilization of the Company’s NOL carryforwards to offset future taxable income is subject to a substantial annual limitation as a result of IRC Section 382 changes that have occurred. Any carryforwards that will expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. The Company has indefinite-lived intangible assets consisting of trademarks and goodwill. These intangible assets are not amortized for financial reporting purposes. However, these assets are tax deductible, and therefore amortized over 15 years for tax purposes. As such, deferred income tax expense and a deferred tax liability arise as a result of the tax-deductibility of these assets. The resulting deferred tax liability, which is expected to continue to increase over time, will have an indefinite life, resulting in what is referred to as a “naked tax credit.” This deferred tax liability could remain on the Company’s balance sheet permanently unless there is an impairment of the related assets (for financial reporting purposes), or the business to which those assets relate were to be disposed of. Due to the fact that the aforementioned deferred tax liability could have an indefinite life, it is not netted against the Company’s deferred tax assets when determining the required valuation allowance. Doing so would result in the understatement of the valuation allowance and related deferred income tax expense. The Company has also evaluated its income tax positions under FASB ASC 740-10 as of December 31, 2016 and the Company believes that it has no material uncertain tax positions and therefore has no uncertain tax position reserves and does not expect to provide for any such reserves. The Company does not believe that the unrecognized tax benefits will change within 12 months of this reporting date. It is the Company’s policy that any assessed penalties and interest on uncertain tax positions would be charged to income tax expense. The Company does not provide for U.S. federal income taxes on the undistributed earnings of its foreign subsidiaries because such earnings, if any, are re-invested and, in the opinion of management, will continue to be re-invested indefinitely. The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign jurisdictions. The Company is currently under examination by the IRS for 2014. The Company is no longer subject to IRS examination for periods prior to 2013 although carryforward losses that were generated prior to 2013 may still be adjusted by the IRS if they are used in a future period. Additionally, the Company is no longer subject to examination in Israel for periods prior to 2014. The Company files consolidated tax returns for its U.S. entities. b. Israeli subsidiary (Epsilor-EFL): Epsilor-EFL’s tax rate was 25% for 2016 and 26.5% for 2015 and 2014, respectively. In addition, dividends paid from the profits of Epsilor-EFL are subject to tax at the rate of 15% in the hands of their recipient. Management has indicated that it has no intention of declaring a dividend. The Israeli government has established certain development zones so as to incentivize business development and export activities. Companies that reside in this zone and meet certain criteria are subject to a favorable tax rates. Epsilor-EFL is located in an approved development zone, however, currently does not meet the criteria established by the government to obtain the tax incentives. As of December 31, 2016, the Company has tax loss carryforwards, generated by the predecessor of Epsilor-EFL, of $82.1 million, which is available indefinitely to offset future taxable income. Due to the 2009 merger of EFL-Epsilor, the utilization of the tax loss carryforward is subject to annual limitations. c. Consolidated deferred income taxes: Deferred income taxes reflect tax credit carryforwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: December 31, 2016 2015 U.S. operating loss carryforward $ 16,869,205 $ 14,814,390 Foreign operating loss carryforward 19,696,756 20,228,547 Total operating loss carryforward 36,565,961 35,042,937 Temporary differences: Compensation and benefits 2,417,056 2,417,056 Warranty reserves 1,263,499 1,394,672 Foreign temporary differences 1,112,113 735,948 All other temporary differences 1,704,555 2,327,485 Total temporary differences 6,497,223 6,875,161 Deferred tax asset before valuation allowance 43,063,184 41,918,098 Valuation allowance (43,063,184 ) (41,918,098 ) Total deferred tax asset $ – $ – Deferred tax liability – intangible assets $ 7,868,123 $ 7,031,564 The Company provided valuation allowances for the deferred tax assets resulting from tax loss carryforwards and other temporary differences. At present, management currently believes that it is more likely than not that the deferred tax assets related to the operating loss carryforwards and other temporary differences will not be realized. d. Income from continuing operations before taxes on income are as follows: Year ended December 31 2016 2015 2014 Domestic $ (2,133,486 ) $ (3,071,694 ) $ 4,455,370 Foreign 1,437,332 2,181,671 451,649 $ (696,154 ) $ (890,023 ) $ 4,907,019 e. Taxes on income were comprised of the following: Year ended December 31 2016 2015 2014 Current federal taxes $ – $ – $ 183,758 Current state and local taxes (24,634 ) 246,403 316,444 Deferred taxes 836,561 914,543 598,500 Taxes in respect of prior years (28,507 ) – (74,865 ) Expense $ 783,420 $ 1,160,946 $ 1,023,837 f. A reconciliation between the theoretical tax expense, assuming all income is taxed at the U.S. federal statutory tax rate applicable to income of the Company and the actual tax expense as reported in the Statements of Comprehensive Income is as follows: Year ended December 31, 2016 2015 2014 Income (loss) from continuing operations before taxes $ (696,154 ) $ (890,023 ) $ 4,907,019 Statutory tax rate 34 % 34 % 34 % Theoretical income tax on the above amount at the U.S. statutory tax rate $ (236,692 ) $ (302,608 ) $ 1,668,386 Deferred taxes for which valuation allowance was provided 589,912 1,413,567 (969,983 ) Non-deductible expenses 22,746 31,841 66,720 State taxes, net of federal benefit (16,258 ) 181,771 269,508 Foreign income in tax rates other than U.S. rate 452,219 (163,625 ) (119,687 ) Taxes in respect of prior years (28,507 ) – (74,865 ) Alternative minimum tax for which valuation allowance was not provided – – 183,758 Actual tax expense $ 783,420 $ 1,160,946 $ 1,023,837

NOTE 14_ - SELECTED STATEMENTS

NOTE 14: - SELECTED STATEMENTS OF COMPREHENSIVE INCOME DATA	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Other Income and Other Expense Disclosure [Text Block]	NOTE 14:– SELECTED STATEMENTS OF COMPREHENSIVE INCOME DATA Financial income (expense), net: Year ended December 31, 2016 2015 2014 Financial expenses: Interest, bank charges and fees $ (927,390 ) $ (1,202,224 ) $ (1,333,895 ) Foreign currency transaction differences, net (47,873 ) – (173,594 ) Total financial expenses (975,263 ) (1,202,224 ) (1,507,489 ) Financial income: Foreign currency transaction differences, net – 50,103 – Total financial income – 50,103 – Financial expense, net $ (975,263 ) $ (1,152,121 ) $ (1,507,489 )

NOTE 15_ - SEGMENT INFORMATION

NOTE 15: - SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 15:– SEGMENT INFORMATION a. General: The Company operates in two continuing business segments (see Note 1.a. for a brief description of the Company’s business). The Company’s reportable segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on two primary factors: the segment’s operating income and the segment’s contribution to the Company’s future strategic growth. b. The following is information about reportable segment gains, losses and assets and are presented after the elimination of intra-segment revenues and expenses: Training and Simulation Division Power Systems Division Corporate Total Company 2016 Revenues from outside customers $ 46,358,794 $ 46,616,958 $ – $ 92,975,752 Depreciation and amortization expenses (1) (1,113,001 ) (3,531,851 ) (19,732 ) (4,664,584 ) Direct expenses (2) (37,637,110 ) (43,682,708 ) (6,712,241 ) (88,032,059 ) Segment income (loss) 7,608,683 (597,601 ) (6,731,973 ) 279,109 Financial expense (41,397 ) (87,371 ) (846,495 ) (975,263 ) Income tax (expense) benefit 24,634 28,507 (836,561 ) (783,420 ) Net income (loss) $ 7,591,920 $ (656,465 ) $ (8,415,029 ) $ (1,479,574 ) Segment assets (4) $ 43,740,316 $ 58,955,828 $ 6,444,053 $ 109,140,197 Additions to long-lived assets $ 586,068 $ 1,081,815 $ – $ 1,667,883 Training and Simulation Division Power Systems Division Corporate Total Company 2015 Revenues from outside customers $ 54,617,611 $ 41,956,336 $ – $ 96,573,947 Depreciation and amortization expenses (1) (912,930 ) (3,957,368 ) (25,220 ) (4,895,518 ) Direct expenses (2) (44,711,979 ) (41,863,776 ) (4,840,578 ) (91,416,331 ) Segment income (loss) 8,992,702 (3,864,808 ) (4,865,798 ) 262,098 Financial expense (59,791 ) 21,432 (1,113,762 ) (1,152,121 ) Income tax expense (233,106 ) – (927,840 ) (1,160,946 ) Net income (loss) $ 8,699,805 $ (3,843,376 ) $ (6,907,400 ) $ (2,050,969 ) Segment assets $ 57,433,489 $ 59,498,304 $ 492,922 $ 117,424,715 Additions to long-lived assets $ 1,139,074 $ 1,374,354 $ 4,501 $ 2,540,005 2014 Training and Simulation Division Power Systems Division Corporate Total Company Revenues from outside customers $ 56,404,498 $ 47,157,851 $ – $ 103,562,349 Depreciation and amortization expenses (1) (756,939 ) (3,477,855 ) (20,452 ) (4,255,246 ) Direct expenses (2) (45,313,956 ) (40,704,521 ) (6,874,118 ) (92,892,595 ) Segment income (loss) 10,333,603 2,975,475 (6,894,570 ) 6,414,508 Financial expense (50,975 ) (203,902 ) (1,252,612 ) (1,507,489 ) Income tax benefit (expense) (133,692 ) 61,777 (951,922 ) (1,023,837 ) Net income (loss) $ 10,148,936 $ 2,833,350 $ (9,099,104 ) $ 3,883,182 Segment assets $ 58,090,953 $ 65,781,686 $ 866,708 $ 124,739,347 Additions to long-lived assets (3) $ 1,533,371 $ 29,159,805 $ 13,344 $ 30,706,520 (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia (3) Includes intangible assets associated with the acquisition of UEC. (4) Cash balances previously reported in the Training and Simulation Division in 2015 are reported in Corporate in 2016. c. Summary information about geographic areas: The following discloses total revenues according to the locations of the Company’s end customers and long-lived assets as of and for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Total revenues Long-lived Assets Total revenues Long-lived Assets Total revenues Long-lived assets U.S.A. $ 72,645,752 $ 49,883,172 $ 77,715,872 $ 52,938,660 $ 83,739,406 $ 55,970,370 Israel 13,944,078 8,308,931 14,114,688 8,299,367 11,428,427 7,755,163 Canada 2,435,134 – 587,516 – 651,846 – Taiwan 690,080 – – – – – Mexico 590,919 – – – 2,300 – India 228,449 – – – 14,865 – Japan 182,996 – – – – – Germany 115,509 – 1,076,872 – 1,117,094 – Australia 75,513 – 109,041 – 459,153 – Korea – – 875,593 – 1,994,634 – Saudi Arabia – – 548,837 – 2,469,988 – China – – 154,803 – 305,800 – U.A.E. – – – – 518,634 – Hong Kong – – – – 48,331 – Other 2,067,322 – 1,390,725 – 811,871 – $ 92,975,752 $ 58,192,103 $ 96,573,947 $ 61,238,027 $ 103,562,349 $ 63,725,533 d. Revenues from major customers (as a percentage of consolidated revenues): Other than for sales to various branches of the United States Military, which accounted for 41%, 48%, and 56% of consolidated continuing revenues for 2016, 2015 and 2014, respectively, no single customer accounted for more than 10% of revenues for any of the three years presented. e. Revenues from major products: Year ended December 31, 2016 2015 2014 Simulators $ 46,358,794 $ 54,617,611 $ 56,404,498 Batteries and charging systems 42,574,102 37,331,372 42,930,497 Water activated batteries 4,042,856 4,624,964 4,227,354 Total $ 92,975,752 $ 96,573,947 $ 103,562,349

NOTE 16_ - WARRANTY

NOTE 16: - WARRANTY	12 Months Ended
	Dec. 31, 2016
Product Warranties Disclosures [Abstract]
Product Warranty Disclosure [Text Block]	NOTE 16:– WARRANTY The following is a summary of the deferred warranty revenue in the Simulation Division included in total deferred revenue as of December 31, 2016 and 2015: Year ended December 31, 2016 2015 Balance at beginning of period $ 3,358,866 $ 4,300,602 Deferred revenue 3,344,498 4,323,821 Revenue recognized (4,000,749 ) (5,265,557 ) Balance at end of period $ 2,702,615 $ 3,358,866 The following is a summary of the warranty liability in the Power Systems Division that is also included in deferred revenue as of December 31, 2016 and 2015: Year ended December 31, 2016 2015 Balance at beginning of period $ 380,904 $ 386,202 New reserves 136,668 187,969 Costs incurred (315,143 ) (193,267 ) Balance at end of period $ 202,429 $ 380,904

NOTE 17_ - ACQUISITION OF UEC E

NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	NOTE 17:– ACQUISITION OF UEC ELECTRONICS, LLC In April 2014, the Company entered into a stock purchase agreement pursuant to the terms of which the Company purchased all of the outstanding membership interests of UEC Electronics, LLC (“UEC”) from the seller of UEC, a company owned by UEC’s two top managers (the “Acquisition”) for total consideration of $36.7 million. The Acquisition provided an expanded Power Systems Division footprint for the Company. The Acquisition was accounted for under the acquisition method accounting. Accordingly, all assets and liabilities acquired, were recorded at their estimated fair market values as of the date of acquisition. Goodwill of $15.1 million was recorded as the purchase premium after adjusting for the fair value of net assets acquired and represents the accretive and synergistic value of the acquisition to the Company. The revenue and net income of UEC from the date of acquisition through December 31, 2014 was $27,193,926 and $2,544,315, respectively. Acquisition related expenses of approximately $813,000 were recognized as general and administrative expenses in the year ended December 31, 2014. Pro forma revenue and net income for the year ended December 31, 2014 for the Company was $116,113,345 and $7,026,327, respectively. Pro forma results presented reflect: (1) amortization relating to fair value estimates of intangible assets; (2) elimination of UEC expenses that were not part of the transaction; and (3) incremental interest expense on new long term debt incurred in connection with the transaction as though the transaction occurred as of January 1, 2013.

NOTE 18_ - QUARTERLY RESULTS OF

NOTE 18: - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information [Text Block]	NOTE 18:– QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended December 31, 2016: Revenues $ 25,406 $ 21,780 $ 24,301 $ 21,489 Gross profit 7,694 6,995 7,864 5,597 Net (loss) income (382 ) (569 ) 1,505 (2,034 ) Basic net income/(loss) per common share $ (0.03 ) $ (0.03 ) $ 0.02 $ (0.06 ) Diluted net income/(loss) per common share $ (0.03 ) $ (0.03 ) $ 0.02 $ (0.06 ) Fiscal year ended December 31, 2015: Revenues $ 24,227 $ 21,644 $ 23,289 $ 27,414 Gross profit 6,897 6,223 7,035 7,963 Net (loss) income (483 ) (2,243 ) (618 ) 399 Basic net income/(loss) per common share $ (0.02 ) $ (0.10 ) $ (0.03 ) $ 0.02 Diluted net income/(loss) per common share $ (0.02 ) $ (0.10 ) $ (0.03 ) $ 0.02

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of consolidation: The consolidated financial statements include the accounts of Arotech and its wholly owned subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Financial Statements in U.S. Dollars: A majority of the revenues of the Company are generated in U.S. dollars (“dollars”). In addition, a substantial portion of the Company’s costs are incurred in dollars. Management believes that the dollar is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company including most of its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than dollars are re-measured into dollars, with resulting gains and losses reflected in the consolidated statements of comprehensive income as financial income or expenses, as appropriate. The majority of transactions of Epsilor-EFL are in New Israel Shekels (“NIS”) and a substantial portion of Epsilor-EFL’s costs is incurred in NIS. Management believes that the NIS is the functional currency of Epsilor-EFL. Accordingly, the financial statements of Epsilor-EFL have been translated into dollars. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of comprehensive income amounts have been translated using the weighted average exchange rate for the period. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less when acquired.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	Restricted collateral deposits: Restricted collateral deposits are primarily invested in highly liquid deposits which are used as a security for the Company’s performance guarantees at FAAC and Epsilor-EFL.
Inventory, Policy [Policy Text Block]	Inventories: Inventory costs include material, labor, and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at lower of cost or market and expense estimates are made for excess and obsolete inventories. Based on this evaluation, provisions are made to write inventory down to its market value. In 2016, 2015, and 2014, the Company wrote off approximately $359,000, $321,000, and $509,000 respectively, of obsolete inventory, which has been included in the cost of revenues. Cost is determined by first-in, first-out (“FIFO”) method.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and equipment: Property and equipment are stated at cost net of accumulated depreciation and investment grants received from the State of Israel for investments in fixed assets under the Law for the Encouragement of Capital Investments, 5719-1959 (the “Investments Law”). The Company did not receive any investment grants in 2016, 2015, or 2014, respectively. Depreciation is calculated by the straight-line method over the following estimated useful lives of the assets: Depreciable life (in years) Computers and related equipment 3 to 5 Motor vehicles 5 to7 Office furniture and equipment 3 to 5 Machinery, equipment and installations 5 to 10 Buildings 30 Land Not depreciated Leasehold improvements Shorter of the term of the lease or the life of the asset Demo inventory 3 to 5 The Company tests long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also perform a test for recoverability when management has committed to a plan to sell or otherwise dispose of an asset group. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.
Property, Plant and Equipment, Impairment [Policy Text Block]	Goodwill and Other Intangible Assets: Goodwill may result from our business acquisitions. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. As of December 31, 2016, we had recorded goodwill of $45.5 million. We allocate goodwill acquired in a business combination to the appropriate reporting unit as of the acquisition date. Our two reporting units, Training and Simulation and Power Systems Divisions are also our reportable segments. The associated goodwill was determined when the specific businesses were purchased. For the Training and Simulation Division and the Power Systems Division, we have recorded goodwill amounting to $24.4 million and $21.1 million, respectively. When testing goodwill for impairment we have the option of performing a qualitative assessment before calculating the fair value of a reporting unit. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is greater than the carrying amount, the two-step impairment test would not be required. If we cannot determine on the basis of qualitative factors that goodwill is not impaired, goodwill is then tested for impairment by using a discounted cash flow analysis. This type of analysis requires us to make assumptions and estimates regarding industry economic factors and the profitability of future business strategies. Significant estimates used in the methodologies include estimates of future cash flows, future short-term and long-term growth rates, weighted average cost of capital and estimates of market multiples for the reportable units. It is our policy to conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations. In assessing the recoverability of our goodwill, we may be required to make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. This process is subjective and requires judgment at many points throughout the analysis. If our estimates or their related assumptions change in subsequent periods or if actual cash flows are below our estimates, we may be required to record impairment charges for these assets not previously recorded. The Company also maintains other indefinite-lived intangible assets and definite-lived intangible assets. The indefinite-lived intangible assets are not amortized but are tested for impairment on at least an annual basis or when determined to have a finite useful life. Substantially all of the indefinite-lived intangible assets are trademarks. Definite-lived intangible assets are reviewed for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value.
Revenue Recognition, Policy [Policy Text Block]	Revenue recognition: The Company is a defense and security products and services company, engaged in two business areas: interactive simulation for military, law enforcement and commercial markets; and power systems and batteries for the military, commercial and medical markets. During 2016, 2015, and 2014, the Company recognized revenues (i) from the sale and customization of interactive training systems and from the maintenance services in connection with such systems (Training and Simulation Division); (ii) from the sale of batteries, chargers and adapters, and under certain development contracts with the U.S. Army (Power Systems Division); and (iii) from the sale of lifejacket lights (Power Systems Division). Revenues from certain products sold by the Power Systems Division are recognized when persuasive evidence of an agreement exists, delivery has occurred, the fee is fixed or determinable, collectability is probable, and no further obligation remains. Typically revenue is recognized, per the contract, when the transaction is entered into the U.S. Government’s Wide Area Workflow system, which occurs after the products have been accepted at the plant or when shipped. Sales to other entities are recorded in accordance with the contract, either when shipped or delivered. Normally there are no further obligations that would preclude the recognition of revenue. Additionally, certain contracts are recognized using contract accounting on a percentage of completion method. Revenues from contracts in the Training and Simulation Division and Power Systems Division that involve customization of the system to customer specifications are recognized using contract accounting on a percentage of completion method, in accordance with the “Input Method.” The amount of revenue recognized is based on the percentage to completion achieved. The percentage to completion is measured by monitoring progress using records of actual time, materials and other costs incurred to date in the project compared to the total estimated project requirement. Estimates of total project requirements are based on prior experience of customization, delivery and acceptance of the same or similar technology and are reviewed and updated regularly by management. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. Normally there are no further obligations that would preclude the recognition of revenue. The Company believes that the use of the percentage of completion method is appropriate for certain contracts as the Company has the ability to make reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs. In addition, contracts executed include provisions that clearly specify the enforceable rights regarding services to be provided and received by the parties to the contracts, the consideration to be exchanged and the manner and the terms of settlement, including in cases of terminations for convenience. In all cases, the Company expects to perform its contractual obligations and its customers are expected to satisfy their obligations under the contract. Revenues from products that do not require significant customization are recognized when persuasive evidence of an agreement exists, delivery has occurred, no significant obligations with regard to implementation remain, the fee is fixed or determinable and collectability is probable. Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support services. Revenues from training are recognized when it is performed. The Vendor Specific Objective Evidence (“VSOE”) of fair value of the maintenance, training and support services is determined based on the price charged when sold separately or when renewed.
Receivables, Policy [Policy Text Block]	Trade receivables The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and its relationships with, and the economic status of, its customers. During the years ended December 31, 2016 and 2015, the Company made no provisions or had any recoveries of doubtful accounts and had no reserves at either year end. The Company believes its exposure to concentrations of credit risk is limited due to the nature of its operations. Unbilled receivables include cost and gross profit earned in excess of billing. Deferred revenues include unearned amounts received under maintenance and support services, customer prepayments and billing in excess of costs and estimated earnings on uncompleted contracts.
Standard Product Warranty, Policy [Policy Text Block]	Warranty: The Company typically offers a one to two year warranty for many of its products. The specific terms and conditions of those warranties vary depending upon the product sold and country in which the Company does business. The Company estimates the costs that may be incurred under its basic limited warranty, including parts and labor, and records deferred revenue in the amount of such costs at the time product revenue is recognized in the Training and Simulation Division. In the Power Systems Division, warranty costs are estimated, accrued and recorded on the balance sheet in deferred revenues. Factors that affect the Company’s warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its reserves and adjusts the amounts as necessary. (See Note 16.)
Research, Development, and Computer Software, Policy [Policy Text Block]	Research and development cost: The Company capitalizes certain software development costs, subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model or a detailed program design. Research and development costs incurred in the process of developing product improvements or new products are generally charged to expenses as incurred. Significant costs incurred by the Company between completion of the working model or a detailed program design and the point at which the product is ready for general release have been capitalized. Capitalized software costs will be amortized by the greater of the amount computed using: (i) the ratio that current gross revenues from sales of the software bears to the total of current and anticipated future gross revenues from sales of that software, or (ii) the straight-line method over the estimated useful life of the product (one to three years). The Company assesses the net realizable value of this intangible asset on a regular basis by determining whether the amortization of the asset over its remaining life can be recovered through undiscounted future operating cash flows from the specific software product sold. Based on its most recent analyses, management believes that no impairment of capitalized software development costs exists as of December 31, 2016. In 2016 and 2015, the Training and Simulation Division capitalized approximately $364,000 and $538,000, respectively, in software development costs that will be amortized on a straight-line method over 2 years, the useful life of the software.
Income Tax, Policy [Policy Text Block]	Income taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liability account balances are determined based on tax credit carryforwards and differences between the financial reporting and the tax basis 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 provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company has adopted the provisions of the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASC 740-10, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. The Company must determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets the more-likely-than-not recognition threshold, the position is measured to determine the amount of benefit to recognize in the financial statements. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company’s determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company’s future financial statements.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted collateral deposits and trade receivables. Cash and cash equivalents are invested mainly in U.S. dollar deposits with major Israeli and U.S. banks. Such deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are mainly derived from sales to customers located primarily in the United States and Israel along with the countries listed in footnote 15.c. Management believes that credit risks are moderated by the diversity of its end customers and geographical sales areas. The Company performs ongoing credit evaluations of its customers’ financial condition. The Company had no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements as of December 31, 2016 and 2015.
Earnings Per Share, Policy [Policy Text Block]	Basic and diluted net income per share: Basic net income per share is computed based on the weighted average number of shares of common stock and participating securities outstanding during each year. Diluted net income per share includes the dilutive effect of additional potential common stock issuable under our share-based compensation plans, using the “treasury stock” method. Unvested restricted stock issued to our employees and directors are “participating securities” and as such, are included, net of estimated forfeitures, in the total shares used to calculate the Company’s basic and diluted net income per share. In the event of a net loss, unvested restricted stock awards are excluded from the calculation of both basic and diluted net loss per share. The total weighted average number of shares related to the outstanding common stock equivalents excluded from the calculations of diluted net income per share were none, 602,740, and none for the years ended December 31, 2016, 2015, and 2014, respectively.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Accounting for stock-based compensation: Stock-based awards to employees are recognized as compensation expense based on the calculated fair value on the date of grant. The costs are amortized over the straight line vesting period. The Company granted restricted stock and restricted stock units in 2016, 2015, and 2014. The Company typically uses a 5-10% forfeiture rate for restricted stock and restricted stock units and adjusts both forfeiture rates based on historical forfeitures. Each restricted stock unit is equal to one share of Company stock and is redeemable only for stock.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair value of financial instruments: The following methods and assumptions were used by the Company in estimating their fair value disclosures for financial instruments using the required three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which may require the Company to develop its own assumptions. The carrying amounts of cash and cash equivalents, restricted collateral deposits, trade and other receivables, short-term bank credit, and trade payables approximate their fair value due to the short-term maturity of such instruments (Level 1). The fair values of long-term promissory notes are estimated by discounting the future cash flows using current interest rates for loans of similar terms and maturities. The carrying amount of the long-term debt and contractual severance approximates the estimated fair values at December 31, 2016, based upon the Company’s ability to acquire similar debt or fulfill similar obligations at similar maturities (Level 3).
Postemployment Benefit Plans, Policy [Policy Text Block]	Severance pay: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. Israeli employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability for all of its Israeli employees is fully provided for by monthly deposits into severance pay funds held by insurance companies on behalf of the employees, insurance policies and by accrual. The fair value of these funds, which are considered Level 2 fair value measurements, is recorded as an asset in the Company’s consolidated balance sheet. In addition, according to certain employment agreements, the Company is obligated to provide for a special severance pay in addition to amounts due to certain employees pursuant to Israeli severance pay law. During the years ended December 31, 2016, 2015 and 2014, the Company had made provisions of $1,022,000, $143,000, and $124,000, respectively, for this special severance pay. As of December 31, 2016 and 2015 the unfunded severance pay in that regard amounted to $2,130,000 and $1,387,000, respectively. Severance expenses from continuing operations for the years ended December 31, 2016, 2015, 2014, amounted to $1,389,000, $625,000, and $779,000, respectively. In December 2016, the Company and its former Chief Executive Officer (“former Executive”) signed an agreement whereby the Company and the former Executive agreed to early termination of the former Executive’s employment agreement. The additional expense and accrual, included above, related to this termination, were approximately $925,000 and $2,050,000, respectively.
Advertising Costs, Policy [Policy Text Block]	Advertising costs: The Company records advertising costs as incurred. Advertising expense for the years ended December 31, 2016, 2015, and 2014 was approximately $72,000, $159,000, and $111,000, respectively.
New Accounting Pronouncements, Policy [Policy Text Block]	New accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard relates to revenue from contracts with customers, which, along with amendments issued in 2015 and 2016, will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to use a five-step analysis of transactions to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company has formed a task force to review material contracts from our respective business segments. The task force is currently evaluating those contracts to determine the impact on the Company’s consolidated financial position or results of operations. The standard, as amended, will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. We expect to adopt the standard on a modified retrospective basis in 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Upon adoption, the Company expects that the ROU asset and lease liability will be recognized in the balance sheets in amounts that will be material. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard introduces targeted amendments intended to simplify the accounting for stock compensation. Among other things, the ASU requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments provide guidance on eight specific cash flow issues for which the current accounting framework does not provide specific guidance. The amendments are effective for annual periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test and requires businesses to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments are effective for annual periods beginning after December 15, 2019 with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of its pending adoption of the new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business
Use of Estimates, Policy [Policy Text Block]	Use of estimates: The preparation of financial statements in conformity with U.S. 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.
Reclassification, Policy [Policy Text Block]	Reclassification: Prior period amounts are reclassified, when necessary, to conform to the current period presentation.
Business Combinations Policy [Policy Text Block]	Business Combinations: The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred.

Cash Flow, Supplemental Discl27

Cash Flow, Supplemental Disclosures (Tables)	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	The cash portion of the transaction is summarized as follows: Cash paid at closing 28,000,000 Net working capital adjustment (paid in May 2014) 1,206,245 Cash acquired (92,590 ) Total $ 29,113,655

NOTE 1_ - GENERAL (Tables)

NOTE 1: - GENERAL (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Disclosure of Long Lived Assets Held-for-sale [Table Text Block]	The assets and liabilities of the Flow Battery segment have been classified as held for sale as of December 31, 2016 and 2015. These amounts consist of the following carrying values in each major class. December 31, 2016 December 31, 2015 ASSETS Property and equipment, net $ 270,139 $ 55,032 Long-term assets – 13,269 Total assets $ 270,139 $ 68,301 LIABILITIES Long term liabilities – 19,295 Total liabilities $ – $ 19,295

NOTE 2_ - SIGNIFICANT ACCOUNT29

NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment Estimated Useful Lives [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	Depreciation is calculated by the straight-line method over the following estimated useful lives of the assets: Depreciable life (in years) Computers and related equipment 3 to 5 Motor vehicles 5 to7 Office furniture and equipment 3 to 5 Machinery, equipment and installations 5 to 10 Buildings 30 Land Not depreciated Leasehold improvements Shorter of the term of the lease or the life of the asset Demo inventory 3 to 5

NOTE 3_ - RESTRICTED COLLATER30

NOTE 3: - RESTRICTED COLLATERAL DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Schedule of Restricted Cash and Cash Equivalents [Table Text Block]	The following is a summary of restricted collateral deposits as of December 31, 2016 and 2015: December 31, 2016 2015 Deposits in connection with Epsilor/EFL projects $ 268,980 $ 89,985 Total restricted collateral deposits $ 268,980 $ 89,985

NOTE 4_ - OTHER ACCOUNTS RECE31

NOTE 4: - OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	The following is a summary of other accounts receivable and prepaid expenses as of December 31, 2016 and 2015: December 31, 2016 2015 Government authorities $ 877,670 $ 307,339 Israeli statutory severance pay fund 455,172 – Employees 60,296 65,990 Prepaid expenses 761,257 625,511 Other 2,501 8,518 Total $ 2,156,896 $ 1,007,358

NOTE 5_ - INVENTORIES (Tables)

NOTE 5: - INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	The following is a summary of inventories as of December 31, 2016 and 2015: December 31, 2016 2015 Raw and packaging materials $ 8,512,006 $ 8,184,476 Work in progress 917,582 760,585 Finished products 888,433 662,775 Total $ 10,318,021 $ 9,607,836

NOTE 6_ - PROPERTY AND EQUIPM33

NOTE 6: - PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment [Member]
NOTE 6: - PROPERTY AND EQUIPMENT, NET (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	Composition of property and equipment is as follows: December 31, 2016 2015 Cost: Computers and related equipment $ 2,733,722 $ 2,703,721 Motor vehicles 717,543 831,925 Office furniture and equipment 1,571,364 1,512,663 Machinery, equipment and installations 7,760,341 7,221,351 Buildings 1,716,924 1,603,374 Land 300,000 300,000 Leasehold improvements 2,172,253 1,982,552 Demo inventory 1,791,751 2,288,031 18,763,898 18,443,617 Accumulated depreciation: Computers and related equipment 2,415,842 2,222,724 Motor vehicles 248,248 298,881 Office furniture and equipment 1,356,671 1,237,923 Machinery, equipment and installations 5,805,540 5,257,976 Buildings 408,194 300,196 Leasehold improvements 1,219,113 1,012,810 Demo inventory 1,395,050 1,727,869 12,848,658 12,058,379 Property and equipment, net $ 5,915,240 $ 6,385,238

NOTE 7_ - GOODWILL AND OTHER 34

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill [Table Text Block]	A summary of the goodwill by business segment is as follows: December 31, 2015 Additions Adjustments (currency) December 31, 2016 Training and Simulation Division $ 24,435,641 $ – $ – $ 24,435,641 Power Systems Division 21,027,386 – 26,490 21,053,876 Total $ 45,463,027 $ – $ 26,490 $ 45,489,517
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Other intangible assets December 31, 2016 2015 Original Useful life Cost Net book value Cost Net book value Technology 4 - 8 years $ 9,988,000 $ 1,617,000 $ 9,988,000 $ 2,377,250 Capitalized software costs 1 - 3 years 4,974,105 542,220 4,609,946 630,230 Trademarks 10 years 28,000 2,800 28,000 5,600 Backlog/customer relationship 1 - 10 years 2,844,000 8,826 2,844,000 38,650 Covenant not to compete 6 years 400,000 172,000 400,000 304,000 Customer list 2 - 10 years 14,173,645 3,681,500 14,173,645 5,180,000 32,407,750 $ 6,024,346 32,043,591 $ 8,535,730 Less - accumulated amortization (26,383,404 ) (23,507,861 ) Amortized cost 6,024,346 8,535,730 Trademarks (indefinite lives) 799,000 799,000 Net book value $ 6,823,346 $ 9,334,730
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Estimated amortization expenses, using both straight line and accelerated amortization methods, for the years shown is as follows: Year ending December 31, 2017 $ 2,210,624 2018 1,415,221 2019 885,000 2020 574,500 2021 291,500 Thereafter 647,501 Total $ 6,024,346

NOTE 8_ - LOANS (Tables)

NOTE 8: - LOANS (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Schedule of Maturities of Long-term Debt [Table Text Block]	Minimum loan payments for the Term and Mortgage Loans are as follows: Minimum loan payments December 31, 2017 $ 1,828,840 2018 2,151,040 2019 2,115,583 2020 2,747,460 2021 1,056,284 Thereafter 633,369 Total $ 10,532,576

NOTE 9_ - OTHER ACCOUNTS PAYA36

NOTE 9: - OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	The following is a summary of other accounts payable and accrued expenses as of December 31, 2016 and 2015: December 31, 2016 2015 Employees and payroll accruals $ 3,068,035 $ 3,310,170 Accrued vacation pay 958,160 1,073,348 Accrued expenses 808,284 829,240 Government authorities 763,079 347,282 Total $ 5,597,558 $ 5,560,040

NOTE 10_ - COMMITMENTS AND CO37

NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	The minimum rental payments under non-cancelable operating leases are as follows: December 31 Minimum rental payments 2017 $ 1,060,954 2018 648,202 2019 382,296 2020 – 2021 – Thereafter – Total $ 2,091,452

NOTE 11_ - COSTS AND ESTIMATE38

NOTE 11: - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	The following is a summary of the costs and estimated earnings on contracts as of December 31, 2016 and 2015. Open contracts are expected to be completed in the following year. The billings in excess of costs are included in the deferred revenues line on the balance sheet: Year ended December 31, 2016 2015 Costs incurred on contracts $ 153,324,167 $ 158,113,695 Estimated earnings 20,754,754 26,759,019 174,078,921 184,872,714 Less billings to date (166,017,018 ) (175,971,136 ) Total $ 8,061,903 $ 8,901,578 Costs and estimated earnings in excess of billings $ 10,981,577 $ 12,132,484 Billings in excess of costs and estimated earnings (included in deferred revenues) (2,919,674 ) (3,230,906 ) Total $ 8,061,903 $ 8,901,578

NOTE 12_ - STOCK-BASED COMPEN39

NOTE 12: - STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Restricted Shares and Restricted Stock Units: 2016 2015 2014 Shares Weighted average fair value at grant date Shares Weighted average fair value at grant date Shares Weighted average fair value at grant date Non-vested at the beginning of the year 516,952 $ 2.94 920,678 $ 2.99 584,746 $ 2.52 Changes during year: Restricted stock granted 310,735 $ 2.39 57,028 $ 2.89 341,861 $ 2.60 Restricted units granted 150,500 $ 2.31 – $ – 163,175 $ 2.48 Vested (220,630 ) $ 2.86 (451,122 ) $ 3.15 (166,110 ) $ 2.23 Forfeited (275,259 ) $ 2.96 (9,632 ) $ 2.38 (2,994 ) $ 3.65 Non-vested at the end of the year 482,298 $ 2.41 516,952 $ 2.94 920,678 $ 2.99 Restricted shares vested at end of year 3,626,580 $ 1.86 3,405,960 $ 2.22 2,954,838 $ 2.07

NOTE 13_ - INCOME TAXES (Tables

NOTE 13: - INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Significant components of the Company’s deferred tax assets are as follows: December 31, 2016 2015 U.S. operating loss carryforward $ 16,869,205 $ 14,814,390 Foreign operating loss carryforward 19,696,756 20,228,547 Total operating loss carryforward 36,565,961 35,042,937 Temporary differences: Compensation and benefits 2,417,056 2,417,056 Warranty reserves 1,263,499 1,394,672 Foreign temporary differences 1,112,113 735,948 All other temporary differences 1,704,555 2,327,485 Total temporary differences 6,497,223 6,875,161 Deferred tax asset before valuation allowance 43,063,184 41,918,098 Valuation allowance (43,063,184 ) (41,918,098 ) Total deferred tax asset $ – $ – Deferred tax liability – intangible assets $ 7,868,123 $ 7,031,564
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	Income from continuing operations before taxes on income are as follows: Year ended December 31 2016 2015 2014 Domestic $ (2,133,486 ) $ (3,071,694 ) $ 4,455,370 Foreign 1,437,332 2,181,671 451,649 $ (696,154 ) $ (890,023 ) $ 4,907,019
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Taxes on income were comprised of the following: Year ended December 31 2016 2015 2014 Current federal taxes $ – $ – $ 183,758 Current state and local taxes (24,634 ) 246,403 316,444 Deferred taxes 836,561 914,543 598,500 Taxes in respect of prior years (28,507 ) – (74,865 ) Expense $ 783,420 $ 1,160,946 $ 1,023,837
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	A reconciliation between the theoretical tax expense, assuming all income is taxed at the U.S. federal statutory tax rate applicable to income of the Company and the actual tax expense as reported in the Statements of Comprehensive Income is as follows: Year ended December 31, 2016 2015 2014 Income (loss) from continuing operations before taxes $ (696,154 ) $ (890,023 ) $ 4,907,019 Statutory tax rate 34 % 34 % 34 % Theoretical income tax on the above amount at the U.S. statutory tax rate $ (236,692 ) $ (302,608 ) $ 1,668,386 Deferred taxes for which valuation allowance was provided 589,912 1,413,567 (969,983 ) Non-deductible expenses 22,746 31,841 66,720 State taxes, net of federal benefit (16,258 ) 181,771 269,508 Foreign income in tax rates other than U.S. rate 452,219 (163,625 ) (119,687 ) Taxes in respect of prior years (28,507 ) – (74,865 ) Alternative minimum tax for which valuation allowance was not provided – – 183,758 Actual tax expense $ 783,420 $ 1,160,946 $ 1,023,837

NOTE 14_ - SELECTED STATEMENT41

NOTE 14: - SELECTED STATEMENTS OF COMPREHENSIVE INCOME DATA (Tables)	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense) [Table Text Block]	Financial income (expense), net: Year ended December 31, 2016 2015 2014 Financial expenses: Interest, bank charges and fees $ (927,390 ) $ (1,202,224 ) $ (1,333,895 ) Foreign currency transaction differences, net (47,873 ) – (173,594 ) Total financial expenses (975,263 ) (1,202,224 ) (1,507,489 ) Financial income: Foreign currency transaction differences, net – 50,103 – Total financial income – 50,103 – Financial expense, net $ (975,263 ) $ (1,152,121 ) $ (1,507,489 )

NOTE 15_ - SEGMENT INFORMATION

NOTE 15: - SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following is information about reportable segment gains, losses and assets and are presented after the elimination of intra-segment revenues and expenses: Training and Simulation Division Power Systems Division Corporate Total Company 2016 Revenues from outside customers $ 46,358,794 $ 46,616,958 $ – $ 92,975,752 Depreciation and amortization expenses (1) (1,113,001 ) (3,531,851 ) (19,732 ) (4,664,584 ) Direct expenses (2) (37,637,110 ) (43,682,708 ) (6,712,241 ) (88,032,059 ) Segment income (loss) 7,608,683 (597,601 ) (6,731,973 ) 279,109 Financial expense (41,397 ) (87,371 ) (846,495 ) (975,263 ) Income tax (expense) benefit 24,634 28,507 (836,561 ) (783,420 ) Net income (loss) $ 7,591,920 $ (656,465 ) $ (8,415,029 ) $ (1,479,574 ) Segment assets (4) $ 43,740,316 $ 58,955,828 $ 6,444,053 $ 109,140,197 Additions to long-lived assets $ 586,068 $ 1,081,815 $ – $ 1,667,883 Training and Simulation Division Power Systems Division Corporate Total Company 2015 Revenues from outside customers $ 54,617,611 $ 41,956,336 $ – $ 96,573,947 Depreciation and amortization expenses (1) (912,930 ) (3,957,368 ) (25,220 ) (4,895,518 ) Direct expenses (2) (44,711,979 ) (41,863,776 ) (4,840,578 ) (91,416,331 ) Segment income (loss) 8,992,702 (3,864,808 ) (4,865,798 ) 262,098 Financial expense (59,791 ) 21,432 (1,113,762 ) (1,152,121 ) Income tax expense (233,106 ) – (927,840 ) (1,160,946 ) Net income (loss) $ 8,699,805 $ (3,843,376 ) $ (6,907,400 ) $ (2,050,969 ) Segment assets $ 57,433,489 $ 59,498,304 $ 492,922 $ 117,424,715 Additions to long-lived assets $ 1,139,074 $ 1,374,354 $ 4,501 $ 2,540,005 2014 Training and Simulation Division Power Systems Division Corporate Total Company Revenues from outside customers $ 56,404,498 $ 47,157,851 $ – $ 103,562,349 Depreciation and amortization expenses (1) (756,939 ) (3,477,855 ) (20,452 ) (4,255,246 ) Direct expenses (2) (45,313,956 ) (40,704,521 ) (6,874,118 ) (92,892,595 ) Segment income (loss) 10,333,603 2,975,475 (6,894,570 ) 6,414,508 Financial expense (50,975 ) (203,902 ) (1,252,612 ) (1,507,489 ) Income tax benefit (expense) (133,692 ) 61,777 (951,922 ) (1,023,837 ) Net income (loss) $ 10,148,936 $ 2,833,350 $ (9,099,104 ) $ 3,883,182 Segment assets $ 58,090,953 $ 65,781,686 $ 866,708 $ 124,739,347 Additions to long-lived assets (3) $ 1,533,371 $ 29,159,805 $ 13,344 $ 30,706,520 (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia (3) Includes intangible assets associated with the acquisition of UEC. (4) Cash balances previously reported in the Training and Simulation Division in 2015 are reported in Corporate in 2016.
Reconciliation of Revenue and Assets from Segments to Consolidated Table [Text Block]	The following discloses total revenues according to the locations of the Company’s end customers and long-lived assets as of and for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Total revenues Long-lived Assets Total revenues Long-lived Assets Total revenues Long-lived assets U.S.A. $ 72,645,752 $ 49,883,172 $ 77,715,872 $ 52,938,660 $ 83,739,406 $ 55,970,370 Israel 13,944,078 8,308,931 14,114,688 8,299,367 11,428,427 7,755,163 Canada 2,435,134 – 587,516 – 651,846 – Taiwan 690,080 – – – – – Mexico 590,919 – – – 2,300 – India 228,449 – – – 14,865 – Japan 182,996 – – – – – Germany 115,509 – 1,076,872 – 1,117,094 – Australia 75,513 – 109,041 – 459,153 – Korea – – 875,593 – 1,994,634 – Saudi Arabia – – 548,837 – 2,469,988 – China – – 154,803 – 305,800 – U.A.E. – – – – 518,634 – Hong Kong – – – – 48,331 – Other 2,067,322 – 1,390,725 – 811,871 – $ 92,975,752 $ 58,192,103 $ 96,573,947 $ 61,238,027 $ 103,562,349 $ 63,725,533
Revenue from External Customers by Products and Services [Table Text Block]	Revenues from major products: Year ended December 31, 2016 2015 2014 Simulators $ 46,358,794 $ 54,617,611 $ 56,404,498 Batteries and charging systems 42,574,102 37,331,372 42,930,497 Water activated batteries 4,042,856 4,624,964 4,227,354 Total $ 92,975,752 $ 96,573,947 $ 103,562,349

NOTE 16_ - WARRANTY (Tables)

NOTE 16: - WARRANTY (Tables)	12 Months Ended
	Dec. 31, 2016
Simulation Division [Member]
NOTE 16: - WARRANTY (Tables) [Line Items]
Schedule of Product Warranty Liability [Table Text Block]	The following is a summary of the deferred warranty revenue in the Simulation Division included in total deferred revenue as of December 31, 2016 and 2015: Year ended December 31, 2016 2015 Balance at beginning of period $ 3,358,866 $ 4,300,602 Deferred revenue 3,344,498 4,323,821 Revenue recognized (4,000,749 ) (5,265,557 ) Balance at end of period $ 2,702,615 $ 3,358,866
Power Systems Division [Member]
NOTE 16: - WARRANTY (Tables) [Line Items]
Schedule of Product Warranty Liability [Table Text Block]	The following is a summary of the warranty liability in the Power Systems Division that is also included in deferred revenue as of December 31, 2016 and 2015: Year ended December 31, 2016 2015 Balance at beginning of period $ 380,904 $ 386,202 New reserves 136,668 187,969 Costs incurred (315,143 ) (193,267 ) Balance at end of period $ 202,429 $ 380,904

NOTE 18_ - QUARTERLY RESULTS 44

NOTE 18: - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information [Table Text Block]	(in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended December 31, 2016: Revenues $ 25,406 $ 21,780 $ 24,301 $ 21,489 Gross profit 7,694 6,995 7,864 5,597 Net (loss) income (382 ) (569 ) 1,505 (2,034 ) Basic net income/(loss) per common share $ (0.03 ) $ (0.03 ) $ 0.02 $ (0.06 ) Diluted net income/(loss) per common share $ (0.03 ) $ (0.03 ) $ 0.02 $ (0.06 ) Fiscal year ended December 31, 2015: Revenues $ 24,227 $ 21,644 $ 23,289 $ 27,414 Gross profit 6,897 6,223 7,035 7,963 Net (loss) income (483 ) (2,243 ) (618 ) 399 Basic net income/(loss) per common share $ (0.02 ) $ (0.10 ) $ (0.03 ) $ 0.02 Diluted net income/(loss) per common share $ (0.02 ) $ (0.10 ) $ (0.03 ) $ 0.02

Cash Flow, Supplemental Discl45

Cash Flow, Supplemental Disclosures (Details) - Schedule of Cash Flow, Supplemental Disclosures - USD ($)	Apr. 01, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flow, Supplemental Disclosures (Details) - Schedule of Cash Flow, Supplemental Disclosures [Line Items]
Net working capital adjustment (paid in May 2014)		$ 0	$ 2,500,000	$ 0
Total		$ 0	$ 0	$ 29,113,655
UEC Electronics, LLC Acquisition [Member]
Cash Flow, Supplemental Disclosures (Details) - Schedule of Cash Flow, Supplemental Disclosures [Line Items]
Cash paid at closing	$ 28,000,000
Net working capital adjustment (paid in May 2014)	1,206,245
Cash acquired	(92,590)
Total	$ 29,113,655

NOTE 1_ - GENERAL (Details)

NOTE 1: - GENERAL (Details) - USD ($)	Feb. 03, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 1: - GENERAL (Details) [Line Items]
Cash Provided by (Used in) Operating Activities, Discontinued Operations		$ (1,337,751)	$ (879,428)	$ (396,221)
Cash Provided by (Used in) Investing Activities, Discontinued Operations		$ (252,064)	(22,075)
Description of Lessee Leasing Arrangements, Operating Leases		The Company rents its facilities under various operating lease agreements, which expire on various dates through 2019.
Operating Leases, Rent Expense		$ 1,418,136	1,404,183	$ 1,366,192
Note Receivable, Related Party [Member] | Chief Executive Officer [Member]
NOTE 1: - GENERAL (Details) [Line Items]
Note Receivable, Description of Interest		1% over the then federal funds rate
Notes Receivable, Related Parties		$ 908,054	908,054
UEC Electronics, LLC Acquisition [Member] | Affiliated Entity [Member] | Building [Member]
NOTE 1: - GENERAL (Details) [Line Items]
Lessee Leasing Arrangements, Operating Leases, Term of Contract		10 years
Lease Expiration Date		Dec. 31, 2024
Description of Lessee Leasing Arrangements, Operating Leases		The 2016 monthly lease payment is $29,585 and increases at a rate of 2.5% per year through the term of the lease
Operating Leases, Rent Expense, Minimum Rentals		$ 29,585
Operating Leases, Rent Expense		$ 355,000	$ 346,344
Operating Leases, Indemnification Agreements, Description		may elect to terminate the lease after five years
Admiralty Partners [Member] | Affiliated Entity [Member]
NOTE 1: - GENERAL (Details) [Line Items]
Stock Issued During Period, Shares, New Issues (in Shares)		1,500,000
Sale of Stock, Price Per Share (in Dollars per share)		$ 1.99
Allocated Share-based Compensation Expense		$ 375,000
Admiralty Partners [Member] | Director [Member]
NOTE 1: - GENERAL (Details) [Line Items]
Consulting Agreement, Term	3 years
Other Commitments, Description	In exchange, the Company pays an annual fee equal to the difference between total accrued compensation of the Board member and $125,000. The agreement can be terminated by either party upon sufficient written notice
Professional and Contract Services Expense	$ 27,000
Flow Battery [Member] | Contractual Buyout [Member]
NOTE 1: - GENERAL (Details) [Line Items]
Disposal Group, Including Discontinued Operation, General and Administrative Expense		$ 524,052

NOTE 1_ - GENERAL (Details) -

NOTE 1: - GENERAL (Details) - Disclosure of Long Lived Assets Held-for-sale - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Long-term assets	$ 270,139	$ 68,301
LIABILITIES
Long term liabilities	0	19,295
Flow Battery [Member]
ASSETS
Property and equipment, net	270,139	55,032
Long-term assets	0	13,269
Total assets	270,139	68,301
LIABILITIES
Long term liabilities	0	19,295
Total liabilities	$ 0	$ 19,295

NOTE 2_ - SIGNIFICANT ACCOUNT48

NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Inventory Write-down	$ 359,000	$ 321,000	$ 509,000
Goodwill	$ 45,489,517	$ 45,463,027
Number of Reportable Segments	2
Standard Product Warranty Description	The Company typically offers a one to two year warranty for many of its products.
Impairment of Intangible Assets, Finite-lived	$ 0
Finite-Lived Intangible Asset, Useful Life	15 years
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares		602,740
Postemployment Benefit, Severance Benefits	$ 3,177,238	$ 5,370,755
Unfunded Serverance Pay	2,130,000	1,387,000
Severance Costs	1,389,000	625,000	779,000
Advertising Expense	72,000	159,000	111,000
Chief Executive Officer [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Severance Costs	925,000	2,050,000
Simulation Division [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Goodwill	24,400,000
Power Systems Division [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Goodwill	21,100,000
Training and Simulation Division [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Goodwill	24,435,641	24,435,641
Capitalized Computer Software, Net	364,000	538,000
Special Severance Pay with Certain Employment Agreements [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Postemployment Benefit, Severance Benefits	$ 1,022,000	$ 143,000	$ 124,000
Minimum [Member] | Restricted Stock [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Forfeiture Rate	5.00%
Maximum [Member] | Restricted Stock [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Forfeiture Rate	10.00%
Computer Software, Intangible Asset [Member] | Training and Simulation Division [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Computer Software, Intangible Asset [Member] | Minimum [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Computer Software, Intangible Asset [Member] | Maximum [Member]
NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years

NOTE 2_ - SIGNIFICANT ACCOUNT49

NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property and Equipment	12 Months Ended
	Dec. 31, 2016
Building [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	30 years
Land [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	Not depreciated
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	Shorter of the term of the lease or the life of the asset
Minimum [Member] | Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	3 years
Minimum [Member] | Vehicles [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	5 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	3 years
Minimum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	5 years
Minimum [Member] | Other Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	3 years
Maximum [Member] | Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	5 years
Maximum [Member] | Vehicles [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	7 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	5 years
Maximum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	10 years
Maximum [Member] | Other Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable Life	5 years

NOTE 3_ - RESTRICTED COLLATER50

NOTE 3: - RESTRICTED COLLATERAL DEPOSITS (Details) - Schedule of Restricted Collateral Deposits - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Collateral Deposits	$ 268,980	$ 89,985
Deposits in Connection with Epsilar-EFL Projects [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Collateral Deposits	$ 268,980	$ 89,985

NOTE 4_ - OTHER ACCOUNTS RECE51

NOTE 4: - OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - Schedule of Other Accounts Receivable and Prepaid Expenses - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Other Accounts Receivable and Prepaid Expenses [Abstract]
Government authorities	$ 877,670	$ 307,339
Israeli statutory severance pay fund	455,172	0
Employees	60,296	65,990
Prepaid expenses	761,257	625,511
Other	2,501	8,518
Total	$ 2,156,896	$ 1,007,358

NOTE 5_ - INVENTORIES (Details

NOTE 5: - INVENTORIES (Details) - Schedule of Inventory - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Inventory [Abstract]
Raw and packaging materials	$ 8,512,006	$ 8,184,476
Work in progress	917,582	760,585
Finished products	888,433	662,775
Total	$ 10,318,021	$ 9,607,836

NOTE 6_ - PROPERTY AND EQUIPM53

NOTE 6: - PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,789,041	$ 1,851,982	$ 1,558,506

NOTE 6_ - PROPERTY AND EQUIPM54

NOTE 6: - PROPERTY AND EQUIPMENT, NET (Details) - Schedule of Property and Equipment - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 18,763,898	$ 18,443,617
Accumulated Depreciation	12,848,658	12,058,379
Property and equipment, net	5,915,240	6,385,238
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	2,733,722	2,703,721
Accumulated Depreciation	2,415,842	2,222,724
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	717,543	831,925
Accumulated Depreciation	248,248	298,881
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	1,571,364	1,512,663
Accumulated Depreciation	1,356,671	1,237,923
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	7,760,341	7,221,351
Accumulated Depreciation	5,805,540	5,257,976
Building [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	1,716,924	1,603,374
Accumulated Depreciation	408,194	300,196
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	300,000	300,000
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	2,172,253	1,982,552
Accumulated Depreciation	1,219,113	1,012,810
Demo Inventory [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	1,791,751	2,288,031
Accumulated Depreciation	$ 1,395,050	$ 1,727,869

NOTE 7_ - GOODWILL AND OTHER 55

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment, Key Valuation Assumptions	In evaluating its key variables, the Company concluded that the WACC and terminal growth rates of the Power Systems Division were approximately 13% and 3%, respectively.
Market Capitalization, Value	$ 92,500,000
Amortization of Intangible Assets	2,875,543	$ 3,043,536	$ 2,696,740
Capitalized Computer Software, Amortization	$ 88,010	$ 255,000	$ 378,000

NOTE 7_ - GOODWILL AND OTHER 56

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - Schedule of Goodwill by Business Segment	12 Months Ended
	Dec. 31, 2016USD ($)
Goodwill [Line Items]
Balance	$ 45,463,027
Additions	0
Adjustments	26,490
Balance	45,489,517
Training and Simulation Division [Member]
Goodwill [Line Items]
Balance	24,435,641
Additions	0
Adjustments	0
Balance	24,435,641
Battery and Power Systems Division [Member]
Goodwill [Line Items]
Balance	21,027,386
Additions	0
Adjustments	26,490
Balance	$ 21,053,876

NOTE 7_ - GOODWILL AND OTHER 57

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - Schedule of Other Intangible Assets - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Original useful life	15 years
Intangible asset, gross	$ 32,407,750	$ 32,043,591
Intangible asset, net book value	6,024,346	8,535,730
Less - accumulated amortization	(26,383,404)	(23,507,861)
Amortized cost	6,024,346	8,535,730
Trademarks (indefinite lives)	799,000	799,000
Net book value	6,823,346	9,334,730
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	9,988,000	9,988,000
Intangible asset, net book value	1,617,000	2,377,250
Amortized cost	1,617,000	2,377,250
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	4,974,105	4,609,946
Intangible asset, net book value	542,220	630,230
Amortized cost	$ 542,220	630,230
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	10 years
Intangible asset, gross	$ 28,000	28,000
Intangible asset, net book value	2,800	5,600
Amortized cost	2,800	5,600
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	2,844,000	2,844,000
Intangible asset, net book value	8,826	38,650
Amortized cost	$ 8,826	38,650
Covenant Not to Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	6 years
Intangible asset, gross	$ 400,000	400,000
Intangible asset, net book value	172,000	304,000
Amortized cost	172,000	304,000
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	14,173,645	14,173,645
Intangible asset, net book value	3,681,500	5,180,000
Amortized cost	$ 3,681,500	$ 5,180,000
Minimum [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	4 years
Minimum [Member] | Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	1 year
Minimum [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	1 year
Minimum [Member] | Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	2 years
Maximum [Member] | Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	8 years
Maximum [Member] | Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	3 years
Maximum [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	10 years
Maximum [Member] | Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Original useful life	10 years

NOTE 7_ - GOODWILL AND OTHER 58

NOTE 7: - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - Schedule of Estimated Amortization Expenses - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Estimated Amortization Expenses [Abstract]
2,017	$ 2,210,624
2,018	1,415,221
2,019	885,000
2,020	574,500
2,021	291,500
Thereafter	647,501
Total	$ 6,024,346	$ 8,535,730

NOTE 8_ - LOANS (Details)

NOTE 8: - LOANS (Details)	Mar. 11, 2016USD ($)
Term Loan [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars)	$ 10,000,000
Debt Instrument, Term	5 years
Debt Instrument, Payment Terms	The repayment of the Term Loan will consist of 60 consecutive monthly payments of principal plus accrued interest based on annual principal reductions of 10% during the first year, 20% during the second through fourth years, and 30% during the fifth year.
Debt Instrument, Interest Rate, Stated Percentage	4.25%
Mortgages [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars)	$ 1,000,000
Debt Instrument, Term	5 years
Debt Instrument, Payment Terms	The monthly payments on the Mortgage Loan are $5,555 in principal plus accrued interest, with a balloon payment due at the end of month 60
Debt Instrument, Interest Rate, Stated Percentage	4.25%
Debt Instrument, Periodic Payment, Principal (in Dollars)	$ 5,555
Minimum [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Maximum [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Revolving Credit Facility [Member]
NOTE 8: - LOANS (Details) [Line Items]
Line of Credit Facility, Expiration Period	5 years
Line of Credit Facility, Interest Rate at Period End	4.00%
Line of Credit Facility, Covenant Terms	The financial covenants include that the Company must maintain both a Maximum Debt to EBITDA ratio of 3.00 to 1.00 and a Minimum Fixed Charge Coverage Ratio of 1.20 to 1.00. The company was in compliance with its covenants at December 31, 2016.
Revolving Credit Facility [Member] | Line of Credit [Member]
NOTE 8: - LOANS (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)	$ 15,000,000
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 8: - LOANS (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%

NOTE 8_ -

NOTE 8: - LOANS (Details) - Schedule of Maturities of Long-term Debt	Dec. 31, 2016USD ($)
Schedule of Maturities of Long-term Debt [Abstract]
2,017	$ 1,828,840
2,018	2,151,040
2,019	2,115,583
2,020	2,747,460
2,021	1,056,284
Thereafter	633,369
Total	$ 10,532,576

NOTE 9_ - OTHER ACCOUNTS PAYA61

NOTE 9: - OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - Schedule of Accounts Payable and Accrued Expenses - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Accounts Payable and Accrued Expenses [Abstract]
Employees and payroll accruals	$ 3,068,035	$ 3,310,170
Accrued vacation pay	958,160	1,073,348
Accrued expenses	808,284	829,240
Government authorities	763,079	347,282
Total	$ 5,597,558	$ 5,560,040

NOTE 10_ - COMMITMENTS AND CO62

NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items]
Royalties Paid or Accrued During the Year	$ 0	$ 0	$ 0
Description of Lessee Leasing Arrangements, Operating Leases	The Company rents its facilities under various operating lease agreements, which expire on various dates through 2019.
Operating Leases, Rent Expense	$ 1,418,136	1,404,183	$ 1,366,192
Guaranty Liabilities	$ 649,260
Guarantor Obligations, Term	(i) obligations of one of the Company’s subsidiaries to the Israeli customs authorities, and (ii) the obligation of one of the Company’s subsidiaries to secure the return of products loaned to the Company from one of its customers.
Epsilor-EFL Subsidiary [Member]
NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items]
Royalty Commitment Terms			required to pay royalties at the rate of 3%-3.5% of net sales of products developed with funds provided by the OCS, up to an amount equal to 100% of research and development grants received from the OCS
Revenue from Grants	$ 612,249	$ 322,820	$ 177,918

NOTE 10_ - COMMITMENTS AND CO63

NOTE 10: - COMMITMENTS AND CONTINGENT LIABILITIES (Details) - Schedule of Future Minimum Operating Lease Payments	Dec. 31, 2016USD ($)
Schedule of Future Minimum Operating Lease Payments [Abstract]
2,017	$ 1,060,954
2,018	648,202
2,019	382,296
2,020	0
2,021	0
Thereafter	0
Total	$ 2,091,452

NOTE 11_ - COSTS AND ESTIMATE64

NOTE 11: - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Disclosure [Abstract]
Deferred Revenue	$ 0	$ 251,925

NOTE 11_ - COSTS AND ESTIMATE65

NOTE 11: - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) - Schedule of Cost and Estimated Earnings on Uncompleted Contracts - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Cost and Estimated Earnings on Uncompleted Contracts [Abstract]
Costs incurred on contracts	$ 153,324,167	$ 158,113,695
Estimated earnings	20,754,754	26,759,019
Total	174,078,921	184,872,714
Less billings to date	(166,017,018)	(175,971,136)
Total	8,061,903	8,901,578
Costs and estimated earnings in excess of billings	10,981,577	12,132,484
Billings in excess of costs and estimated earnings (included in deferred revenues)	$ (2,919,674)	$ (3,230,906)

NOTE 12_ - STOCK-BASED COMPEN66

NOTE 12: - STOCK-BASED COMPENSATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 12: - STOCK-BASED COMPENSATION (Details) [Line Items]
Share-based Compensation	$ 878,007	$ 622,315	$ 1,411,970
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 188,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 6 months
2007 Non-Employee Director Equity Compensation Plan [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	750,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	162,987
2009 Equity Incentive Plan [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,589,269
Minimum [Member] | Employee Stock Option [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Maximum [Member] | Employee Stock Option [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years

NOTE 12_ -

NOTE 12: - STOCK-BASED COMPENSATION (Details) - Schedule of Restricted Shares and Restricted Stock Units Activity - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) - Schedule of Restricted Shares and Restricted Stock Units Activity [Line Items]
Restricted Shares & Restricted Stock Units, Non-vested at the beginning of the year	516,952	920,678	584,746
Restricted Shares & Restricted Stock Units, Non-vested at the beginning of the year, Weighted average fair value at grant date	$ 2.94	$ 2.99	$ 2.52
Restricted Shares & Restricted Stock Units, Restricted grants	310,735	57,028	341,861
Restricted Shares & Restricted Stock Units, Weighted Average Fair Value at Grant Date	$ 2.39	$ 2.89	$ 2.60
Restricted Shares & Restricted Stock Units, Vested	(220,630)	(451,122)	(166,110)
Restricted Shares & Restricted Stock Units, Vested, Weighted Average Fair Value at Grant Date	$ 2.86	$ 3.15	$ 2.23
Restricted Shares & Restricted Stock Units, Forfeited	(275,259)	(9,632)	(2,994)
Restricted Shares & Restricted Stock Units, Forfeited, Weighted Average Fair Value at Grant Date	$ 2.96	$ 2.38	$ 3.65
Restricted Shares & Restricted Stock Units, Non-vested at the end of the year	482,298	516,952	920,678
Restricted Shares & Restricted Stock Units, Non-vested at the end of the year, Weighted Average Fair Value at Grant Date	$ 2.41	$ 2.94	$ 2.99
Restricted Shares & Restricted Stock Units, Vested at end of year	3,626,580	3,405,960	2,954,838
Restricted Shares & Restricted Stock Units, Vested at end of year, Weighted Average Fair Value at Grant Date	$ 1.86	$ 2.22	$ 2.07
Restricted Stock Units (RSUs) [Member]
NOTE 12: - STOCK-BASED COMPENSATION (Details) - Schedule of Restricted Shares and Restricted Stock Units Activity [Line Items]
Restricted Shares & Restricted Stock Units, Restricted grants	150,500	0	163,175
Restricted Shares & Restricted Stock Units, Weighted Average Fair Value at Grant Date	$ 2.31	$ 0	$ 2.48

NOTE 13_ - INCOME TAXES (Detail

NOTE 13: - INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 13: - INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards	$ 46,900,000
Deferred Tax Assets, Gross	$ 43,063,184	$ 41,918,098
Finite-Lived Intangible Asset, Useful Life	15 years
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%	34.00%
Minimum [Member]
NOTE 13: - INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards, Expiration Date 1	2,021
Maximum [Member]
NOTE 13: - INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards, Expiration Date 1	2,037
Epsilor-EFL Subsidiary [Member]
NOTE 13: - INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards	$ 82,100,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%	26.50%
Epsilor-EFL Subsidiary [Member] | Dividend Income, Tax [Member]
NOTE 13: - INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	15.00%

NOTE 13_ - INCOME TAXES (Detai

NOTE 13: - INCOME TAXES (Details) - Schedule of Deferred Assets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Schedule of Deferred Assets [Abstract]
U.S. operating loss carryforward	$ 16,869,205	$ 14,814,390
Foreign operating loss carryforward	19,696,756	20,228,547
Total operating loss carryforward	36,565,961	35,042,937
Temporary differences:
Compensation and benefits	2,417,056	2,417,056
Warranty reserves	1,263,499	1,394,672
Foreign temporary differences	1,112,113	735,948
All other temporary differences	1,704,555	2,327,485
Total temporary differences	6,497,223	6,875,161
Deferred tax asset before valuation allowance	43,063,184	41,918,098
Valuation allowance	(43,063,184)	(41,918,098)
Total deferred tax asset	0	0
Deferred tax liability – intangible assets	$ 7,868,123	$ 7,031,564

NOTE 13_ - INCOME TAXES (Det70

NOTE 13: - INCOME TAXES (Details) - Schedule of Loss from Continuing Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Loss from Continuing Operations [Abstract]
Domestic	$ (2,133,486)	$ (3,071,694)	$ 4,455,370
Foreign	1,437,332	2,181,671	451,649
	$ (696,154)	$ (890,023)	$ 4,907,019

NOTE 13_ - INCOME TAXES (Det71

NOTE 13: - INCOME TAXES (Details) - Schedule of Components of Income Tax Expense - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Components of Income Tax Expense [Abstract]
Current federal taxes	$ 0	$ 0	$ 183,758
Current state and local taxes	(24,634)	246,403	316,444
Deferred taxes	836,561	914,543	598,500
Taxes in respect of prior years	(28,507)	0	(74,865)
Expense	$ 783,420	$ 1,160,946	$ 1,023,837

NOTE 13_ - INCOME TAXES (Det72

NOTE 13: - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Income (loss) from continuing operations before taxes	$ (696,154)	$ (890,023)	$ 4,907,019
Statutory tax rate	34.00%	34.00%	34.00%
Theoretical income tax on the above amount at the U.S. statutory tax rate	$ (236,692)	$ (302,608)	$ 1,668,386
Deferred taxes for which valuation allowance was provided	589,912	1,413,567	(969,983)
Non-deductible expenses	22,746	31,841	66,720
State taxes, net of federal benefit	(16,258)	181,771	269,508
Foreign income in tax rates other than U.S. rate	452,219	(163,625)	(119,687)
Taxes in respect of prior years	(28,507)	0	(74,865)
Alternative minimum tax for which valuation allowance was not provided	0	0	183,758
Actual tax expense	$ 783,420	$ 1,160,946	$ 1,023,837

NOTE 14_ - SELECTED STATEMENT73

NOTE 14: - SELECTED STATEMENTS OF COMPREHENSIVE INCOME DATA (Details) - Schedule of Financial Income (Expense) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Financial Income (Expense) [Abstract]
Interest, bank charges and fees	$ (927,390)	$ (1,202,224)	$ (1,333,895)
Foreign currency transaction differences, net	(47,873)	0	(173,594)
Total financial expenses	(975,263)	(1,202,224)	(1,507,489)
Foreign currency transaction differences, net	0	50,103	0
Total financial income	0	50,103	0
Financial expense, net	$ (975,263)	$ (1,152,121)	$ (1,507,489)

NOTE 15_ - SEGMENT INFORMATIO74

NOTE 15: - SEGMENT INFORMATION (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 15: - SEGMENT INFORMATION (Details) [Line Items]
Number of Operating Segments	2
United States Military [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
NOTE 15: - SEGMENT INFORMATION (Details) [Line Items]
Concentration Risk, Percentage	41.00%	48.00%	56.00%

NOTE 15_ - SEGMENT INFORMATIO75

NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Segment Reporting Information - USD ($)		3 Months Ended									12 Months Ended
		Dec. 31, 2016		Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
2,016
Revenues from outside customers		$ 21,489,000		$ 24,301,000	$ 21,780,000	$ 25,406,000	$ 27,414,000	$ 23,289,000	$ 21,644,000	$ 24,227,000	$ 92,975,752		$ 96,573,947	$ 103,562,349
Financial income (expense)											(975,263)		(1,152,121)	(1,507,489)
Income tax (expense) benefit											(783,420)		(1,160,946)	(1,023,837)
Net income (loss)		(2,034,000)		$ 1,505,000	$ (569,000)	$ (382,000)	399,000	$ (618,000)	$ (2,243,000)	$ (483,000)	(2,848,256)		(2,945,026)	3,486,961
Segment assets		109,410,336					117,493,016				109,410,336		117,493,016
Training and Simulation Division [Member]
2,016
Revenues from outside customers											46,358,794		54,617,611	56,404,498
Depreciation and amortization expenses (1)	[1]										(1,113,001)		(912,930)	(756,939)
Direct expenses (2)	[2]										(37,637,110)		(44,711,979)	(45,313,956)
Segment net income (loss)											7,608,683		8,992,702	10,333,603
Financial income (expense)											(41,397)		(59,791)	(50,975)
Income tax (expense) benefit											24,634		(233,106)	(133,692)
Net income (loss)											7,591,920		8,699,805	10,148,936
Segment assets		43,740,316	[3]				57,433,489				43,740,316	[3]	57,433,489	58,090,953
Additions to long-lived assets											586,068		1,139,074	1,533,371	[4]
Power Systems Division [Member]
2,016
Revenues from outside customers											46,616,958		41,956,336	47,157,851
Depreciation and amortization expenses (1)	[1]										(3,531,851)		(3,957,368)	(3,477,855)
Direct expenses (2)	[2]										(43,682,708)		(41,863,776)	(40,704,521)
Segment net income (loss)											(597,601)		(3,864,808)	2,975,475
Financial income (expense)											(87,371)		21,432	(203,902)
Income tax (expense) benefit											28,507		0	61,777
Net income (loss)											(656,465)		(3,843,376)	2,833,350
Segment assets		58,955,828	[3]				59,498,304				58,955,828	[3]	59,498,304	65,781,686
Additions to long-lived assets											1,081,815		1,374,354	29,159,805	[4]
Corporate Segment [Member]
2,016
Revenues from outside customers											0		0	0
Depreciation and amortization expenses (1)	[1]										(19,732)		(25,220)	(20,452)
Direct expenses (2)	[2]										(6,712,241)		(4,840,578)	(6,874,118)
Segment net income (loss)											(6,731,973)		(4,865,798)	(6,894,570)
Financial income (expense)											(846,495)		(1,113,762)	(1,252,612)
Income tax (expense) benefit											(836,561)		(927,840)	(951,922)
Net income (loss)											(8,415,029)		(6,907,400)	(9,099,104)
Segment assets		6,444,053	[3]				492,922				6,444,053	[3]	492,922	866,708
Additions to long-lived assets											0		4,501	13,344	[4]
Discontinued Operations [Member]
2,016
Revenues from outside customers											92,975,752		96,573,947	103,562,349
Depreciation and amortization expenses (1)	[1]										(4,664,584)		(4,895,518)	(4,255,246)
Direct expenses (2)	[2]										(88,032,059)		(91,416,331)	(92,892,595)
Segment net income (loss)											279,109		262,098	6,414,508
Financial income (expense)											(975,263)		(1,152,121)	(1,507,489)
Income tax (expense) benefit											(783,420)		(1,160,946)	(1,023,837)
Net income (loss)											(1,479,574)		(2,050,969)	3,883,182
Segment assets		$ 109,140,197	[3]				$ 117,424,715				109,140,197	[3]	117,424,715	124,739,347
Additions to long-lived assets											$ 1,667,883		$ 2,540,005	$ 30,706,520	[4]
[1]	Includes depreciation of property and equipment and amortization expenses of intangible assets.
[2]	Including, inter alia, sales and marketing, general and administrative, research and development and other income.
[3]	Cash balances previously reported in the Training and Simulation Division in 2015 are reported in Corporate in 2016.
[4]	Includes intangible assets associated with the acquisition of UEC.

NOTE 15_ - SEGMENT INFORMATIO76

NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues	$ 21,489,000	$ 24,301,000	$ 21,780,000	$ 25,406,000	$ 27,414,000	$ 23,289,000	$ 21,644,000	$ 24,227,000	$ 92,975,752	$ 96,573,947	$ 103,562,349
Long-lived Assets	58,192,103				61,238,027				58,192,103	61,238,027	63,725,533
UNITED STATES
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									72,645,752	77,715,872	83,739,406
Long-lived Assets	49,883,172				52,938,660				49,883,172	52,938,660	55,970,370
ISRAEL
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									13,944,078	14,114,688	11,428,427
Long-lived Assets	8,308,931				8,299,367				8,308,931	8,299,367	7,755,163
CANADA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									2,435,134	587,516	651,846
Long-lived Assets	0				0				0	0	0
TAIWAN, PROVINCE OF CHINA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									690,080	0	0
Long-lived Assets	0				0				0	0	0
MEXICO
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									590,919	0	2,300
Long-lived Assets	0				0				0	0	0
INDIA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									228,449	0	14,865
Long-lived Assets	0				0				0	0	0
JAPAN
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									182,996	0	0
Long-lived Assets	0				0				0	0	0
GERMANY
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									115,509	1,076,872	1,117,094
Long-lived Assets	0				0				0	0	0
AUSTRALIA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									75,513	109,041	459,153
Long-lived Assets	0				0				0	0	0
KOREA, REPUBLIC OF
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									0	875,593	1,994,634
Long-lived Assets	0				0				0	0	0
SAUDI ARABIA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									0	548,837	2,469,988
Long-lived Assets	0				0				0	0	0
CHINA
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									0	154,803	305,800
Long-lived Assets	0				0				0	0	0
UNITED ARAB EMIRATES
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									0	0	518,634
Long-lived Assets	0				0				0	0	0
HONG KONG
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									0	0	48,331
Long-lived Assets	0				0				0	0	0
Other Country [Member]
NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Total Revenue by Customer Location [Line Items]
Total Revenues									2,067,322	1,390,725	811,871
Long-lived Assets	$ 0				$ 0				$ 0	$ 0	$ 0

NOTE 15_ - SEGMENT INFORMATIO77

NOTE 15: - SEGMENT INFORMATION (Details) - Schedule of Revenues by Major Products - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue from External Customer [Line Items]
Revenues	$ 21,489,000	$ 24,301,000	$ 21,780,000	$ 25,406,000	$ 27,414,000	$ 23,289,000	$ 21,644,000	$ 24,227,000	$ 92,975,752	$ 96,573,947	$ 103,562,349
Simulators [Member]
Revenue from External Customer [Line Items]
Revenues									46,358,794	54,617,611	56,404,498
Batteries and Chargers [Member]
Revenue from External Customer [Line Items]
Revenues									42,574,102	37,331,372	42,930,497
Water Activated Batteries [Member]
Revenue from External Customer [Line Items]
Revenues									$ 4,042,856	$ 4,624,964	$ 4,227,354

NOTE 16_ - WARRANTY (Details)

NOTE 16: - WARRANTY (Details) - Schedule of Deferred Warranty Revenue - Simulation Division [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Product Warranty Liability [Line Items]
Balance at beginning of period	$ 3,358,866	$ 4,300,602
Deferred revenue	3,344,498	4,323,821
Revenue recognized	(4,000,749)	(5,265,557)
Balance at end of period	$ 2,702,615	$ 3,358,866

NOTE 16_ - WARRANTY (Details79

NOTE 16: - WARRANTY (Details) - Schedule of Deferred Warranty Revenue - Power Systems Division [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Product Warranty Liability [Line Items]
Balance at beginning of period	$ 380,904	$ 386,202
New reserves	136,668	187,969
Costs incurred	(315,143)	(193,267)
Balance at end of period	$ 202,429	$ 380,904

NOTE 17_ - ACQUISITION OF UEC80

NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC (Details) - USD ($)	1 Months Ended	3 Months Ended								9 Months Ended	12 Months Ended
	Apr. 30, 2014	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC (Details) [Line Items]
Goodwill		$ 45,489,517				$ 45,463,027					$ 45,489,517	$ 45,463,027
Revenues		21,489,000	$ 24,301,000	$ 21,780,000	$ 25,406,000	27,414,000	$ 23,289,000	$ 21,644,000	$ 24,227,000		92,975,752	96,573,947	$ 103,562,349
Net Income (Loss) Attributable to Parent		$ (2,034,000)	$ 1,505,000	$ (569,000)	$ (382,000)	$ 399,000	$ (618,000)	$ (2,243,000)	$ (483,000)		$ (2,848,256)	$ (2,945,026)	$ 3,486,961
UEC Electronics, LLC Acquisition [Member]
NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC (Details) [Line Items]
Business Combination, Consideration Transferred	$ 36,700,000
Goodwill	$ 15,100,000
Revenues										$ 27,193,926
Net Income (Loss) Attributable to Parent										2,544,315
Business Combination, Acquisition Related Costs										813,000
Business Acquisition, Pro Forma Revenue										116,113,345
Business Acquisition, Pro Forma Net Income (Loss)										$ 7,026,327

NOTE 18_ -

NOTE 18: - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): (Details) - Schedule of Quarterly Financial Information - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Quarterly Financial Information [Abstract]
Revenues	$ 21,489,000	$ 24,301,000	$ 21,780,000	$ 25,406,000	$ 27,414,000	$ 23,289,000	$ 21,644,000	$ 24,227,000	$ 92,975,752	$ 96,573,947	$ 103,562,349
Gross profit	5,597,000	7,864,000	6,995,000	7,694,000	7,963,000	7,035,000	6,223,000	6,897,000
Net (loss) income	$ (2,034,000)	$ 1,505,000	$ (569,000)	$ (382,000)	$ 399,000	$ (618,000)	$ (2,243,000)	$ (483,000)	$ (2,848,256)	$ (2,945,026)	$ 3,486,961
Basic net income/(loss) per common share (in Dollars per share)	$ (0.06)	$ 0.02	$ (0.03)	$ (0.03)	$ 0.02	$ (0.03)	$ (0.10)	$ (0.02)	$ (0.11)	$ (0.12)	$ 0.16
Diluted net income/(loss) per common share (in Dollars per share)	$ (0.06)	$ 0.02	$ (0.03)	$ (0.03)	$ 0.02	$ (0.03)	$ (0.10)	$ (0.02)	$ (0.11)	$ (0.12)	$ 0.15