Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | CYREN LTD. | ||
Trading Symbol | CYRN | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 5,333,564 | ||
Entity Public Float | $ 35,200,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001084577 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-26495 | ||
Entity Incorporation, State or Country Code | L3 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 10 Ha-Menofim St | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | Herzliya | ||
Entity Address, Country | IL | ||
Entity Address, Postal Zip Code | 4672561 | ||
City Area Code | 011 | ||
Local Phone Number | –972–9–863–6888 | ||
Title of 12(b) Security | Ordinary Shares, par value ILS 3.00 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 1281 | ||
Auditor Name | Kost Forer Gabbay & Kasierer | ||
Auditor Location | Tel-Aviv, Israel |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,302 | $ 9,296 |
Trade receivables (net of allowances for credit losses of $118 and $201 as of December 31, 2021 and 2020, respectively) | 799 | 960 |
Deferred commissions | 982 | 980 |
Prepaid expenses and other receivables | 1,241 | 779 |
Total current assets | 7,324 | 12,015 |
LONG-TERM ASSETS: | ||
Long-term deferred commissions | 933 | 1,125 |
Long-term lease deposits and prepaids | 809 | 937 |
Operating lease right-of-use assets | 9,280 | 10,900 |
Severance pay fund | 921 | 745 |
Property and equipment, net | 2,183 | 3,948 |
Intangible assets, net | 4,304 | 7,797 |
Goodwill | 20,374 | 21,476 |
Total long-term assets | 38,804 | 46,928 |
Total assets | 46,128 | 58,943 |
CURRENT LIABILITIES: | ||
Trade payables | 1,075 | 799 |
Convertible notes (related party) | 10,000 | |
Employees and payroll accruals | 4,414 | 3,813 |
Accrued expenses and other liabilities ($4 and $37 attributable to related parties, respectively) | 955 | 1,420 |
Operating lease liabilities | 1,618 | 1,983 |
Deferred revenues | 4,644 | 6,934 |
Total current liabilities | 12,706 | 24,949 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 485 | 644 |
Convertible Debentures ($238 and $234 attributable to related parties) | 8,578 | 9,248 |
Long-term operating lease liabilities | 8,624 | 9,866 |
Deferred tax liability, net | 407 | 655 |
Accrued severance pay | 983 | 838 |
Other liabilities | 517 | 706 |
Total long-term liabilities | 19,594 | 21,957 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares nominal value ILS 3.00 par value; Authorized: 80,000,000 and 5,500,000 shares as of December 31, 2021 and 2020; Issued and Outstanding: 4,532,943 and 3,063,596 shares as of December 31, 2021 and 2020, respectively | 3,759 | 2,392 |
Additional paid-in capital | 283,577 | 258,962 |
Accumulated other comprehensive loss | (1,877) | (725) |
Accumulated deficit | (271,631) | (248,592) |
Total shareholders’ equity | 13,828 | 12,037 |
Total liabilities and shareholders’ equity | $ 46,128 | $ 58,943 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) $ in Thousands | Dec. 31, 2021USD ($)shares | Dec. 31, 2021₪ / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020₪ / shares |
Statement of Financial Position [Abstract] | ||||
Net of allowances for credit losses | $ | $ 118 | $ 201 | ||
Accrued expenses and other liabilities attributable to related parties | $ | 4 | 37 | ||
Convertible debentures attributable to related parties | $ | $ 238 | $ 234 | ||
Ordinary shares, par value | ₪ / shares | ₪ 3 | ₪ 3 | ||
Ordinary shares, authorized | shares | 80,000,000 | 5,500,000 | ||
Ordinary shares, issued | shares | 4,532,943 | 3,063,596 | ||
Ordinary shares, outstanding | shares | 4,532,943 | 3,063,596 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | |||
Revenues | [1] | $ 31,187 | $ 36,388 |
Cost of revenues | 15,277 | 14,786 | |
Gross profit | 15,910 | 21,602 | |
Operating expenses: | |||
Research and development, net | 17,624 | 16,083 | |
Sales and marketing | 10,808 | 11,678 | |
General and administrative | 9,283 | 9,583 | |
Total operating expenses | 37,715 | 37,344 | |
Operating loss | (21,805) | (15,742) | |
Other (expenses) income, net | (12) | 5 | |
Financial expenses, net | [1] | (1,360) | (1,647) |
Loss before taxes on income | (23,177) | (17,384) | |
Tax benefit | 138 | 121 | |
Net loss | $ (23,039) | $ (17,263) | |
Basic and diluted net loss per share (in Dollars per share) | [2] | $ (5.9) | $ (5.72) |
Weighted average number of shares used in computing basic and diluted net loss per share (in Shares) | 3,908,072 | 3,016,359 | |
[1] | Transaction with related parties are included in the line item above (refer to Footnote 12, Related Parties | ||
[2] | Please refer to Note 13(a). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (23,039) | $ (17,263) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (1,152) | 1,285 |
Comprehensive loss | $ (24,191) | $ (15,978) |
Statements of Changes in Shareh
Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Number of outstanding ordinary shares | Share capital | Additional paid-in capital | Accumulated other comprehensive loss | [1] | Accumulated deficit | Total | |
Balance at Dec. 31, 2019 | $ 2,309 | $ 255,741 | $ (2,010) | $ (231,329) | $ 24,711 | |||
Balance (in Shares) at Dec. 31, 2019 | 2,968,609 | |||||||
Restricted share units vested | 38 | (38) | ||||||
Restricted share units vested (in Shares) | 42,807 | |||||||
Payment of interest in shares | 24 | 551 | 575 | |||||
Payment of interest in shares (in Shares) | 28,030 | |||||||
Share-based compensation related to employees, directors, and consultants | 2,391 | 2,391 | ||||||
Issuance of shares upon early conversion of a Convertible Debentures | 21 | 317 | 338 | |||||
Issuance of shares upon early conversion of a Convertible Debentures (in Shares) | 24,150 | |||||||
Other comprehensive loss | 1,285 | 1,285 | ||||||
Net loss | (17,263) | (17,263) | ||||||
Balance at Dec. 31, 2020 | 2,392 | 258,962 | (725) | (248,592) | 12,037 | |||
Balance (in Shares) at Dec. 31, 2020 | 3,063,596 | |||||||
Issuance of ordinary shares, net of issuance costs | [2] | 556 | 12,032 | 12,588 | ||||
Issuance of ordinary shares, net of issuance costs (in Shares) | [2] | 600,000 | ||||||
Issuance of ordinary shares and warrants, net of costs | [3] | 662 | 8,614 | 9,276 | ||||
Issuance of ordinary shares and warrants, net of costs (in Shares) | [3] | 707,639 | ||||||
Restricted share units vested | 41 | (41) | ||||||
Restricted share units vested (in Shares) | 43,913 | |||||||
Payment of interest in shares | 53 | 751 | 804 | |||||
Payment of interest in shares (in Shares) | 57,723 | |||||||
Share-based compensation related to employees, directors, and consultants | 2,455 | 2,455 | ||||||
Issuance of shares upon early conversion of a Convertible Debentures | 55 | 804 | 859 | |||||
Issuance of shares upon early conversion of a Convertible Debentures (in Shares) | 60,074 | |||||||
Other comprehensive loss | (1,152) | (1,152) | ||||||
Net loss | (23,039) | (23,039) | ||||||
Balance at Dec. 31, 2021 | $ 3,759 | $ 283,577 | $ (1,877) | $ (271,631) | $ 13,828 | |||
Balance (in Shares) at Dec. 31, 2021 | 4,532,945 | |||||||
[1] | Relates to foreign currency translation adjustments. | |||||||
[2] | Net of issuance costs of $1,212 | |||||||
[3] | Net of issuance costs of $914 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (23,039) | $ (17,263) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on disposal of property and equipment | 17 | 14 |
Depreciation | 2,142 | 2,349 |
Share-based compensation | 2,455 | 2,391 |
Amortization of intangible assets | 2,938 | 2,823 |
Write-off of technology R&D capitalization | 604 | 735 |
Impairment of intangible asset | 115 | |
Amortization of deferred commissions | 1,320 | 1,517 |
Operating lease right-of-use assets | 1,832 | 2,157 |
Interest on convertible notes | 543 | 575 |
Interest and amortization of debt issuance costs on Convertible Debentures | 677 | 601 |
Deferred taxes, net | (220) | (184) |
Changes in assets and liabilities: | ||
Trade receivables, net | 106 | 1,299 |
Prepaid expenses and other receivables | (276) | 57 |
Deferred commissions | (1,169) | (1,095) |
Change in long-term lease deposits | (8) | (116) |
Trade payables | 275 | (399) |
Employees and payroll accruals, accrued expenses, and other liabilities | (206) | 149 |
Deferred revenues | (2,250) | (1,856) |
Accrued severance pay, net | (30) | (60) |
Operating lease liabilities | (1,838) | (1,606) |
Other long-term liabilities | (9) | 237 |
Net cash used in operating activities | (16,021) | (7,675) |
Cash flows from investing activities: | ||
Capitalization of technology | (262) | (2,217) |
Proceeds from sale of property and equipment | 10 | 6 |
Purchase of property and equipment | (516) | (1,766) |
Net cash used in investing activities | (768) | (3,977) |
Cash flows from financing activities: | ||
Proceeds from Convertible Debentures, net of debt issuance costs | 9,442 | |
Proceeds from issuance of ordinary shares and warrant, net of issuance costs | 9,276 | |
Proceeds from issuance of ordinary shares, net of issuance costs | 12,588 | |
Payment of principal on convertible notes on maturity | (10,000) | |
Net cash provided by financing activities | 11,864 | 9,442 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (38) | (3) |
(Decrease) in cash, cash equivalents and restricted cash | (4,963) | (2,213) |
Cash, cash equivalents and restricted cash at the beginning of the period | 9,914 | 12,127 |
Cash, cash equivalents and restricted cash at the end of the period | 4,951 | 9,914 |
Cash paid during the year for: | ||
Interest | 287 | 288 |
Supplemental disclosure of non-cash transactions: | ||
Purchase of property and equipment by credit | (8) | (18) |
Operating lease right-of-use asset exchanged for lease obligations | 488 | 3,956 |
Net change in accrued payroll expenses related to capitalization of technology | (24) | |
Issuance of shares on early conversion of Convertible Debentures | 859 | 338 |
Issuance of shares for payment of interest on convertible notes and Convertible Debentures | 804 | 575 |
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flow: | ||
Cash and cash equivalents | 4,302 | 9,296 |
Restricted cash included in long-term restricted lease deposits | 649 | 618 |
Total cash, cash equivalents and restricted cash | $ 4,951 | $ 9,914 |
General
General | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1: GENERAL a. Cyren Ltd. (henceforth “Cyren”) was incorporated under the laws of the State of Israel on February 10, 1991 and its legal form is a company limited by shares. Cyren listed its shares to the public on July 15, 1999 under the name Commtouch Software Ltd. and changed its legal name to Cyren Ltd. in January 2014. Cyren and its subsidiaries, unless otherwise indicated will be referred to in these consolidated financial statements as the “Company”. The Company is engaged in developing and marketing cyber security solutions to identify and protect customers from threats in email, files, and the web. The Company sells its cloud-based solutions worldwide, in a Software-as-a-Service model, to enterprises as well to OEMs (Original Equipment Manufacturers) which include leading email providers, other cybersecurity vendors and managed services providers (MSPs). The Company operates in one reportable segment, which constitutes its reporting unit. b. Over the past several years, the Company has made significant investment in product development, as well as sales & marketing. The Company has incurred losses since inception and expects to continue to incur losses for the foreseeable future. The Company’s accumulated deficit as of December 31, 2021 was $271,631 and negative cash flows from operating activities during the year ended December 31, 2021 was $16,021. At December 31, 2021, the Company’s cash and cash equivalents position is not sufficient to fund the Company’s planned operations for at least a year beyond the date of the filing date of the consolidated financial statements. Those factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months through a combination of actions that may include existing cash on hand, reducing operating spend, potentially divesting assets, amending certain existing debt securities and issuing equity and/or debt securities. The current cash balance, historical trend of cash used in operations and lack of certainty regarding a future capital raise, raises substantial doubt about our ability to continue as a going concern for the next twelve months from the date of issuance of these financial statements. While the Company has successful raised funds in the past, there is no guarantee that it will be able to do so in the future. The inability to borrow or raise sufficient funds on commercially reasonable terms, would have serious consequences on our financial condition and results of operations. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The consolidated financial statements for the year ended December 31, 2021 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. c. On February 7, 2022, the Company held a Special Meeting of Shareholders (the “Special Meeting”). At the Special Meeting, the Company’s shareholders voted on the following proposals: (i) to approve an amendment to the Company’s Amended and Restated Articles of Association (the “Articles of Association”) to effect a Reverse Share Split of the Company’s ordinary shares (the “Reverse Share Split”) at a ratio of not less than one-for-four and not more than one-for-twenty, with such ratio and the implementation and timing of the Reverse Share Split to be determined by the Company’s board of directors in its sole discretion within thirty days of the Special Meeting (“Proposal One”) and (ii) subject to the approval of Proposal One, to approve an increase in the authorized share capital by up to NIS 216,000,000 to 240,000,000 and amend the Company’s Articles of Association accordingly (“Proposal Two”). Following the Special Meeting, on February 7, 2022, the board of directors of the Company approved a one-for-twenty Reverse Share Split and an increase in the Company’s authorized share capital by NIS 216,000,000, and the Articles of Association of the Company were amended accordingly. The Reverse Share Split became effective on February 9, 2022. Additionally, effective at the same time, the total number of ordinary shares the Company is authorized to issue after the effect of the Reverse Share Split is 80,000,000, the par value per ordinary share is NIS 3.00 and the authorized share capital of the Company is NIS 240,000,000. Upon the effectiveness of the Reverse Share Split, every twenty ordinary shares were automatically combined and converted into one ordinary share. Appropriate adjustments were also made to all outstanding derivative securities of the Company, including all outstanding equity awards and warrants. No fractional shares were issued in connection with the Reverse Share Split. Instead, all fractional shares (including shares underlying outstanding equity awards and warrants) were rounded up to the nearest whole ordinary share. All of the ordinary shares and per share data have been retroactively adjusted for the impact of the reverse share-split. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to fair value and useful lives of intangible assets, valuation allowance on deferred tax assets, income tax uncertainties, fair values of share-based awards, other contingent liabilities and estimates used in applying the revenue recognition policy. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. b. Financial statements in U.S. dollars: Cyren’s revenues, and certain of its subsidiary’s revenues, are generated mainly in U.S. dollars. In addition, most of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which Cyren and certain of its subsidiaries operate. Thus, the functional and reporting currency of Cyren and certain of its subsidiaries is the U.S. dollar. Cyren and certain subsidiaries’ transactions and balances denominated in U.S. dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. c. Principles of consolidation: The consolidated financial statements include the accounts of Cyren and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. e. Restricted deposits: The Company maintains certain deposits amounts restricted as to withdrawal or use. On December 31, 2021, the Company maintained a balance of $649 which is restricted and is held as collateral for a bank guarantee and a letter of credit provided to the lessors of two of the Company’s offices. The balance is presented on the balance sheets within the long-term restricted lease deposits balance. f. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the asset or improvement. Cost of maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as outlined below: Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 5-10 g. Leases: The Company accounting for leases according to ASC 842, Leases. The Company determines if an arrangement is a lease and the classification of that lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Company elected the practical expedient for lease agreements with a term of twelve months or less and does not recognize ROU assets and lease liabilities in respect of those agreements. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. h. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 20 years. Acquired customer contracts and relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer contracts and relationships arrangements as compared to the straight-line method. Technology, Intellectual Property and Trademark are amortized over their estimated useful lives on a straight-line basis. i. Impairment of long-lived assets: The Company’s long-lived assets (assets group) to be held or used, including right-of-use assets and identifiable intangibles are reviewed for impairment in accordance with ASC 360 “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the year-ended December 31, 2021, the Company recorded an impairment loss of $115 related to a trademark for a product that was discontinued in 2021. This amount has been recognized in sales and marketing expense. The Company did not record an impairment related to the year-ended December 31, 2020. j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The Company performs an annual impairment test at December 31, of each fiscal year, or more frequently if impairment indicators are present. For each of the two years in the period ended December 31, 2021, no impairment losses have been identified. k. Fair value measurements: The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses, other receivables, trade payables and other payables, approximate their fair values due to the short-term maturities of such financial instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instruments are categorized as Level 3. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. l. Revenue recognition: The Company derives its revenues in accordance with ASC 606 from the sale of real-time cloud-based services for each of Cyren’s email security, web security, anti-malware, and advanced threat protection offerings. The Company sells all of its solutions as subscription services, either through OEMs, which are considered end-users, or as complete security services directly to enterprises. The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company applies the following five-step approach: 1) Identification of the contract, or contracts, with the customer 2) Identification of the performance obligation in the contract 3) Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Generally, the Company does not provide price protection, stock rotation, rebates, or right of return. In 2019, one contract contained a significant financing component. Variable Consideration - 4) Allocation of the transaction price to the performance obligations in the contract - 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Subscription Service Revenue Deferred Revenue - Deferred commissions The Company capitalizes sales commissions paid to internal sales personnel that are generally incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration factors such as peer estimates of technology lives, and customer lives as well as the Company’s own historical data. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented. For the years ended December 31, 2021 and 2020, the Company capitalized $1,169 and $1,095 of commission costs, respectively, and amortized $1,320 and 1,517, respectively. m. Research and development costs, net: Research and development costs are charged to statements of operations as incurred, except for capitalized technology. n. Capitalized technology: The Company capitalizes development costs incurred during the application development stage which are related to internal-use technology that supports its security services. Costs related to preliminary project activities and post implementation activities are expensed as incurred as research and development costs on the statements of operations. Capitalized internal-use technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally one three o. Concentrations of credit risk: The Company has no significant off-balance-sheet concentration of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The majority of the Company’s cash and cash equivalents are invested in dollars and are deposited in major banks in the United States, Germany, Iceland, UK, and Israel. Such investments in the United States 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 institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are derived from transactions with companies located primarily in North America, Europe, Israel, and Asia. A provision for credit loss account is determined based on historical collection experience, customer creditworthiness, current and future economic conditions and market conditions with respect to those amounts that the Company has determined to be doubtful of collection. The provision for credit loss amounted $118 and $201 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, bad debt benefit was $68 and 5, respectively. p. Accounting for share-based compensation: ASC 718 - “Compensation-stock Compensation”- (“ASC 718”) requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expense for the value of its awards on a straight-line basis over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures (pursuant to the adoption of ASU 2016-09, the Company made a policy election to estimate the number of awards that are expected to vest). The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted represents the period of time that options granted are expected to be outstanding, based upon historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value for options granted in 2021 and 2020 is estimated at the date of grant using a Black-Scholes options pricing model with the following assumptions: Year ended December 31, Stock options 2021 2020 Volatility 67% - 71 % 47% - 60 % Risk-free interest rate 0.40% - 1.12 % 0.23% - 1.40 % Dividend yield 0 % 0 % Expected term (years) 4.10 4.10 q. Basic and diluted net loss per share: Basic net loss per share has been computed using the weighted-average number of ordinary shares outstanding during the year. Diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus the weighted average number of dilutive potential ordinary shares considered outstanding during the year. In 2021 and 2020 there is no difference between the denominator of basic and diluted net loss per share. In periods where the Company reports a net loss, the effect of anti-dilutive stock options, restricted stock units, Convertible Notes, Convertible Debentures, and warrants are excluded and diluted net loss per share is equal to basic loss per share. For the years ended December 31, 2021 and 2020, 1,489,620 and 1,190,183 potential ordinary shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect, respectively. r. Severance pay: The Company’s liability for severance pay in Israel is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. The Company’s obligation for all of its Israeli employees is fully provided by monthly deposits with severance pay funds and insurance policies, and by an accrual. The value of those funds and policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. Effective October 2014, the Company’s agreements with new employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payment is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. Severance benefit for the year ended December 31, 2021 and 2020 was $31 and $40, respectively. s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value, and if it is more likely than not that some portion of the entire deferred tax asset will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. t. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive loss generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive loss relate to gains and losses from functional currency translation adjustments on behalf of subsidiaries whose functional currency has been determined to be their local currency. u. Recently issued and adopted pronouncements: In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. The Company adopted this new guidance January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements. v. New accounting pronouncements not yet adopted: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2020-06 did not have a material impact on the consolidated financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 3: PROPERTY AND EQUIPMENT, NET December 31 2021 2020 Cost: Computers and peripheral equipment $ 11,422 $ 13,080 Office furniture and equipment 701 875 Leasehold improvements 856 861 12,979 14,816 Less accumulated depreciation (10,796 ) (10,868 ) Property and equipment, net $ 2,183 $ 3,948 Depreciation expense amounted to $2,142 and $2,349 in 2021 and 2020, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 4: INTANGIBLE ASSETS, NET a. Definite-lived intangible assets: December 31, 2021 2020 Original amounts: Customer contracts and relationships $ 5,170 $ 5,398 Technology 21,216 (*) 21,903 (*) Trademarks 596 1,630 Total original amounts 26,982 28,931 Accumulated amortization: Customer contracts and relationships (4,776 ) (4,863 ) Technology (17,358 ) (14,934 ) Trademarks (544 ) (1,337 ) Accumulated amortization (22,678 ) (21,134 ) Intangible assets, net $ 4,304 $ 7,797 (*) Includes $14,062 and $14,405 capitalized technology as of December 31, 2021 and 2020, respectively. Capitalized technology includes $0 and $725 for which amortization has not yet begun as of December 31, 2021 and 2020, respectively. In the year-ended December 31, 2020, the Company wrote-off in-process R&D as it was determined that the accumulated costs associated with a project would not materialize into a saleable product. As a result, $696 of expense has been recognized in operating expenses and $49 associated with capitalized interest, included within financial expenses, net. In the year-ended December 31, 2021, the Company wrote-off in-process R&D as it was determined that the accumulated costs associated with a project would not materialize into a saleable product. As a result, $577 of expense has been recognized in operating expenses and $27 associated with capitalized interest, included within financial expenses, net. In the year-ended December 31, 2021, the Company recorded an impairment loss of $115 related to a trademark for a product that was discontinued in 2021. This amount has been recognized in sales and marketing expense. The Company did not record an impairment related to the year-ended December 31, 2020. b. The intangible assets that are subject to amortization are amortized over their estimated useful lives using the straight-line method, except for customer relations which are amortized on an accelerated basis. The following table sets forth the weighted average remaining amortization period for the major classes of intangible assets: (In Years) Customer contracts and relationships 10.9 Technology 0.8 Trademarks 0.9 c. Amortization expense for 2021 and 2020 was $2,941 and $2,823, respectively. d. The estimated aggregate amortization expenses for the succeeding fiscal years are as follows: 2022 $ 2,815 2023 924 2024 138 2025 129 2026 121 Thereafter 177 Total $ 4,304 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [Abstract] | |
GOODWILL | NOTE 5: GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2021 and 2020 are as follows: Year ended 2021 2020 Balance at the beginning of the year $ 21,476 $ 20,246 Foreign currency translation adjustments (1,102 ) 1,230 Balance at the year end $ 20,374 $ 21,476 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6: COMMITMENTS AND CONTINGENCIES a. Cyren Ltd., which was incorporated in Israel, partially financed its research and development expenditures under programs sponsored by the Israel Innovation Authority (“IIA”) for the support of certain research and development activities conducted in Israel. In connection with specific research and development, the Company received $6,444 of participation payments from the IIA through December 31, 2021, but no grants since 2018, of which $2,617 are subject to repayment to the IA through royalties related from product sales. In return for the IIA’s participation in this program, the Company is committed to pay royalties at a rate of 3% of the program’s developed product sales, up to 100% of the amount of grants received plus interest at annual LIBOR rate. The Company’s total commitment for royalties payable with respect to future sales, based on IIA participations received, net of royalties paid or accrued, totaled $2,617 and $2,714 as of December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, $129 and $137, respectively, were recorded as cost of revenues with respect to royalties due to the IIA. b. Litigations: i. The Company is not currently involved in any legal proceedings or claims. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 7: LEASES The Company leases offices and vehicles under operating leases. The Company has various operating leases for office space and vehicles that expire through 2030. Below is a summary of our operating right-of-use assets and operating lease liabilities as of December 31, 2021: Operating lease right-of-use assets $ 9,280 Operating lease liabilities, current $ 1,618 Operating lease liabilities long-term 8,624 Total operating lease liabilities $ 10,242 Minimum lease payments for our right of use assets over the remaining lease periods as of December 31, 2021, are as follows: Year ended December 31, 2022 $ 2,014 2023 1,865 2024 1,709 2025 1,653 2026 1,617 Thereafter 2,859 Total undiscounted lease payments $ 11,717 Less: Interest (1,475 ) Present value of lease liabilities $ 10,242 Premises rent expense was $2,781 and $2,803 for the year ended December 31, 2021 and 2020, respectively. As of December 31, 2021, Cyren subleases two real estate properties. Sublease receipts were $663 and $525 for the twelve months ended December 31, 2021 and 2020, respectively. The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.4 Weighted average discount rate 4.36 % |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 8: SHAREHOLDERS’ EQUITY a. General: Ordinary shares confer upon their holders the right to receive notice to participate and vote in general shareholder meetings of the Company and to receive dividends, if declared. b. Issuance of Ordinary Shares and Warrants: On February 16, 2021, the Company issued to several institutional investors in a registered direct offering, 600,000 Ordinary Shares at a purchase price of $23.00 per share for net proceeds of approximately $12.6 million. The Company intends to use the proceeds from this offering for working capital and general corporate purposes. The Company also issued to the placement agent or its designees warrants to purchase up to 36,000 ordinary shares, representing 6% of the aggregate number of ordinary shares sold in the offering. The placement agent warrants have an exercise price equal to $28.75, or 125% of the offering price, per Ordinary Share and became exercisable on August 16, 2021 for five years from the effective date of the offering. On September 17, 2021, the Company issued to several institutional investors in a private placement, 707,639 ordinary shares at a purchase price of $14.40 per share and warrants to purchase up to 707,639 ordinary shares at an exercise price of $12.00 per share. The warrants will be exercisable immediately and terminate on March 17, 2025. The Company also issued to the placement agent or its designees warrants to purchase up to 42,459 ordinary shares, representing 6.0% of the aggregate number of ordinary shares sold in the offering. The placement agent warrants have an exercise price equal to $18.00 per share, or 125% of the offering price per share and were exercisable immediately and terminate on March 17, 2025. c. Issuance of convertible notes: On December 5, 2018 the Company issued $10,000 aggregate principal amount of convertible notes in a private offering. The notes were unsecured, unsubordinated obligations of Cyren and carried a 5.75% interest rate, payable semi-annually in (i) 50% cash and (ii) 50% cash or ordinary shares at Cyren’s election. The notes have a 3-year term and mature in December 2021. The notes were issued with a conversion price of $3.90 per share which was subject to adjustment using a weighted-average ratchet mechanism based on the size and price of future equity offerings and the total shares outstanding. On November 7, 2019, Cyren announced the closing of a rights offering that raised gross proceeds of $8,019. As a result of this offering, the conversion price of the convertible notes was adjusted to $3.73. As a result of the February 16, 2021 offering in Note 8(b), the conversion price of the convertible notes was adjusted to $3.38. As a result of the September 17, 2021 offering in Note 8(b), the conversion price of the convertible notes was adjusted to $3.02. In addition, the notes were subject to immediate conversion upon any change in control in the Company (or subject to repayment if the price in the change in control transaction is less than the conversion price). The Company incurred interest expense of $543 and $574 for the years ended December 31, 2021, and 2020, respectively. During the twelve months ending December 31, 2020, the Company paid semi-annual interest payments totaling $575, of which $288 was paid in cash and the remaining portion through the issuance of 13,983 shares. During the twelve months ending December 31, 2021, the Company paid semi-annual interest payments totaling $575, of which $288 was paid in cash and the remaining portion through the issuance of 26,425 shares. The Company has accrued interest of $0 and $32 as of December 31, 2021, and 2020 respectively. The principal balance of $10,000 on the convertible notes was paid off upon maturity on December 5, 2021. No further obligations remain with respect to the convertible notes. d. Issuance of Convertible Debentures: In March 2020, the Company entered into purchase agreements with a select group of accredited investors for the purchase of $10,250 aggregate principal amount of Convertible Debentures in a private placement. Upon the closing, the Company received approximately $9,400 (net of $800 in issuance expenses). The debentures are unsecured, subordinated obligations of Cyren and carry a 5.75% interest rate per annum, payable semi-annually in cash or ordinary shares at Cyren’s election. The debentures have a four-year term and mature in March 2024, unless converted in accordance with their terms prior to maturity. The debentures have a conversion price of $15.00 per share and are convertible into 67 ordinary shares per $1,000 principal amount of debentures. The conversion price is subject to adjustment based on the price and timing of future equity offerings and other customary adjustments. Upon the satisfaction of price and other conditions, Cyren has the right to force the conversion of the debentures. The Company incurred interest expense of $677 and $601 for the years ended December 31, 2021, and 2020, respectively. During the twelve months ended December 31, 2020, the Company paid semi-annual interest payments totaling, $289, which was paid through the issuance of 14,047 shares. During the twelve months ended December 31, 2021, the Company paid semi-annual interest payments totaling, $518, which was paid through the issuance of 31,298 shares. During the twelve months ending December 31, 2020, three of the debenture holders converted $364 of principal plus interest of their debentures, which was a portion of their holding. The principal and interest were paid through the issuance of 24,150 shares. During the twelve months ending December 31, 2021, three of the debenture holders converted $909 of principal plus interest of their debentures, which was a portion of their holding. The principal and interest were paid through the issuance of 60,074 shares. The Company has accrued interest of $137 and $167 as of December 31, 2021, and 2020 respectively. The Convertible Debentures balance, net of debt issuance costs, as of December 31, 2021 was $8.6 million. The principal balance of the Convertible Debentures as of December 31, 2021 was $9.0 million. e. Equity Incentive Plan: On December 22, 2016, the Company’s shareholders approved a new equity plan - the 2016 Equity Incentive Plan (the “Equity Incentive Plan”). This plan, along with its respective Israeli appendix, replaced all then-existing employee and consultants stock option plans. The Equity Incentive Plan allows for the issuance of Restricted Stock Units (“RSUs”), as well as options. The options and RSUs generally vest over a period of four years. Options granted under the Equity Incentive Plan generally expire after six years from the date of grant. Options and RSUs cease vesting upon termination of the optionee’s employment or other relationship with the Company. The per share exercise price for options shall be no less than 100% of the fair market value per ordinary share on the date of grant. Any options and RSUs that are cancelled or not exercised within the option term become available for future grant. On July 30, 2019, the shareholders of the Company approved an increase in the number of Ordinary Shares reserved for issuance under the 2016 Equity Incentive Plan and its respective Israeli Appendix to a total of 560,000 ordinary shares. . As of December 31, 2021, an aggregate of 301,556 ordinary shares of the Company are still available for future grant under the Equity Incentive Plan. f . Non-Employee Directors stock option plan: On December 22, 2016, the Company’s shareholders approved a new equity plan - the 2016 Non-Employee Director Equity Incentive Plan (the “Non-Employee Director Plan”). This plan, along with its respective Israeli appendix, replaced all existing Directors stock option plans. The Non-Employee Director Plan allows for the issuance of Restricted Stock Units (“RSUs”), as well as options. Each option and RSU granted under the Non-Employee Plan generally vests over a period of four years. Each option has an exercise price equal to the fair market value of the ordinary shares on the grant date of such option. Options granted under the Non-Employee Director Plan generally expire after six years from the date of grant. Options and RSUs cease vesting upon termination of the relationship with the Company. On July 30, 2019 the shareholders of the Company approved an increase in the number of Ordinary Shares reserved for issuance under the Non-Employee Director Plan and its respective Israeli Appendix to a total of 57,500 Ordinary Shares. As of December 31, 2021, an aggregate of 34,903 ordinary shares of the Company are still available for future grant to non-employee directors. g. A summary of the Company’s employees and directors’ stock option activity under the plans is as follows: Number (1) Weighted (1) Weighted Aggregate Outstanding at January 1, 2021 310,293 $ 41.80 3.18 $ - Granted 13,525 14.02 Exercised - - Expired and forfeited (142,532 ) 43.26 Outstanding at December 31, 2021 181,286 $ 38.58 2.74 $ - Options vested and expected to vest at December 31, 2021 177,136 $ 38.80 2.71 $ - Exercisable options at December 31, 2021 131,918 $ 40.69 2.27 $ - Weighted average fair value of options granted during the year $ 7.37 (1) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). The aggregate intrinsic value in the tables above represents the total intrinsic value (the difference between the fair value of the Company’s ordinary shares as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period. The total intrinsic value of options exercised during the years ended December 31, 2021 and 2020 was $0. The weighted average grant date fair value of options granted to employees and directors during the years ended December 31, 2021, and 2020, was $7.40 and $13.20, respectively As of December 31, 2021, the Company had $603 of unrecognized compensation expense related to non-vested stock options, expected to be recognized over a remaining weighted average period of 1.67 years. h. The employee and directors’ options outstanding as of December 31, 2021, have been separated into ranges of exercise prices, as follows: Outstanding Exercisable Exercise price per share (1) Options (1) Weighted Weighted (1) Options (1) Weighted (1) $6.40 - $32.80 50,920 3.09 $ 26.75 28,578 $ 30.49 $34.00 - $40.00 35,002 1.80 $ 37.76 31,165 $ 38.18 $41.80 - $42.80 55,584 3.29 $ 41.82 36,459 $ 41.82 $46.00 - $55.00 31,248 2.27 $ 47.81 28,601 $ 47.62 $58.00 - $64.00 8,532 2.65 $ 59.06 7,115 $ 59.07 181,286 2.74 $ 38.65 131,918 $ 40.69 (1) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). i. Options to non-employees and non-directors: Issuance date Options (1) Exercise price per share (1) Options exercisable (1) Exercisable February 10, 2016 2,000 $ 28.80 2,000 Feb-22 January 24, 2017 1,250 $ 40.00 1,250 Jan-23 3,250 3,250 (1) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). The options vest and become exercisable at a rate of 1/16 of the options every three months. As of December 31, 2021, the Company did not have any unrecognized compensation expense related to non-employee non-vested stock options. j. A summary of the Company’s RSUs activity for employees, directors and non-employees under the plans is as follows: Number (1) Weighted (1) Awarded and unvested at December 31, 2020 109,175 $ 30.00 Granted 286,670 15.67 Vested (43,913 ) 29.76 Forfeited (7,625 ) 25.76 Awarded and unvested at December 31, 2021 344,307 $ 18.20 (1) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 8(b). As of December 31, 2021, the Company had approximately $4,849 of unrecognized compensation expense related to RSUs, expected to be recognized over a weighted average period of 2.53 years. k. The total share-based compensation expense related to all of the Company’s equity-based awards, recognized for the years ended December 31, 2021 and 2020, was as follows: Year ended 2021 2020 Cost of revenues $ 269 $ 105 Research and development 224 291 Sales and marketing 324 244 General and administrative 1,638 1,751 $ 2,455 $ 2,391 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 9: INCOME TAXES a. Corporate tax structure: i. Corporate tax rates and real capital gains tax in Israel were 23% in 2021 and 2020. ii. The Company’s German subsidiary is subject to German tax at a consolidated rate of approximately 30%. iii. Other Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The Company does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely. As of December 31, 2021, and 2020, there are no undistributed earnings of foreign subsidiaries. b. Tax benefits under Israel’s Law for the Encouragement of Industry (Taxation), 1969: The Company may currently qualify as an “industrial company” within the definition of the Law for the Encouragement of Industry (Taxation), as such, it may be eligible for certain tax benefits, including, inter alia, special depreciation rates for machinery, equipment and buildings, amortization of patents, certain other intangible property rights and deduction of share issuance expenses. c. Net operating loss carry-forwards: As of December 31, 2021, Cyren Ltd.’s net operating loss carryforwards for tax purposes amounted to $114,185 and capital loss carryforwards of $17,844 which may be carried forward and offset against taxable income in the future, for an indefinite period. As of December 31, 2021, the U.S. subsidiary had net operating loss carryforwards of $42,758 for federal tax purposes and $12,896 for state tax purposes. These losses may offset any future U.S. taxable income of the U.S. subsidiary and will expire in the years 2022 through 2041. Management currently believes that based upon its estimations for future taxable income, it is more likely than not that the deferred tax assets regarding the loss carryforwards will not be utilized in the foreseeable future. Thus, a valuation allowance was provided to reduce deferred tax assets to their realizable value. d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2021, and 2020, the Company’s deferred taxes were in respect of the following: December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 36,127 $ 32,628 Capital loss carryforwards 4,104 4,104 Other 3,413 3,651 Deferred tax assets before valuation allowance 43,644 40,383 Valuation allowance (43,296 ) (39,831 ) Deferred tax asset, net of valuation allowance 348 552 Deferred tax liabilities: Intangibles (550 ) (1,054 ) Temporary Differences (205 ) (153 ) Deferred tax liability (755 ) (1,207 ) Deferred tax liability, net (*) $ (407 ) $ (655 ) (*) The entire amount is due to foreign deferred taxes e. Reconciliation of the theoretical tax benefit (expense): For the year ended December 31, 2021, the main reconciling item between the Company’s statutory tax rate and the effective tax rate relates to the increase in the valuation allowance in the amount of $4,587 due to the increase in carryforward losses. For the year ended December 31, 2020, the main reconciling item between the Company’s statutory tax rate and the effective tax rate relates to the increase in the valuation allowance in the amount of $3,554 due to the increase in carryforward losses. The statutory tax rate used in the reconciliation is the Israeli corporate tax rate. f. Loss before tax benefit (expense) consists of the following: Year ended 2021 2020 Domestic $ (15,870 ) $ (11,967 ) Foreign (7,307 ) (5,417 ) Loss before tax benefit (expense) $ (23,177 ) $ (17,384 ) g. Tax benefit (expense) is comprised of the following: Year ended 2021 2020 Current taxes: Foreign $ (82 ) $ (64 ) Domestic - - $ (82 ) $ (64 ) Deferred taxes: Foreign $ 220 $ 185 Domestic - - $ 220 $ 185 Tax benefit (expense), net $ 138 $ 121 h. A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31, 2021 2020 Beginning balance $ 526 $ 470 Increases (decrease) related to tax positions taken during prior years 32 12 Effect of exchange rate (41 ) 44 Ending balance $ 517 $ 526 The entire amount of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. Uncertain tax position recognized tax benefits are presented on the consolidated balance sheets under other long-term liabilities. i. Tax assessments: As of December 31, 2021, the Company and certain of its subsidiaries filed Israeli and foreign income tax returns. The statute of limitations relating to the consolidated Israeli income tax return is closed for all tax years up to and including 2017. The statute of limitations related to tax returns of the Company’s U.S subsidiary is closed for all tax years up to and including 2018. The statute of limitations related to tax returns of the Company’s German subsidiary is closed for all tax years up to and including 2017. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to tax audits and settlements. The final tax outcome of any Company tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income (loss) in the period in which such determination is made. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 10: SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are reported in a manner consistent with the internal reporting supported and defined by the components of an enterprise about which separate financial information is available, provided and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis. The company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, the Company determined that it has one operating and reportable segment. a. The following sets forth total revenue by solutions offered by geographic area based on billing address of the customer: Year ended 2021 2020 United States $ 13,821 $ 17,377 Germany 7,979 8,500 Europe-Other 3,732 4,006 Asia Pacific 2,120 1,790 Israel 3,044 4,203 Other 491 512 $ 31,187 $ 36,388 b. Major customers: During the years ended December 31, 2021 and 2020, 19% and 23%, respectively of the Company’s revenues were derived from a single customer. No other customer accounted for more than 10% of total revenue. c. Remaining performance obligations: As of December 31, 2021, approximately $29,566 of revenue is expected to be recognized from remaining performance obligations that are unsatisfied (or partially unsatisfied) for non-cancelable contracts. The Company expects to recognize revenue on approximately 69% of these remaining performance obligations in 2022, and approximately 24% in 2023, with the remainder recognized thereafter. d. Revenue generated by Customer Type: Twelve months ended 2021 2020 OEM/Embedded Security (*) $ 24,845 $ 29,465 Enterprise/SMB (**) 6,342 6,923 $ 31,187 $ 36,388 (*) This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. (**) In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. e. The following sets forth the Company’s long-lived tangible assets, net by geographic area: December 31 2021 2020 Israel $ 5,612 $ 6,490 United States 1,017 1,964 Germany 3,945 5,247 Other 889 1,147 $ 11,463 $ 14,848 |
Financial Expense, Net
Financial Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Financial Expense, Net [Abstract] | |
FINANCIAL EXPENSE, NET | NOTE 11: FINANCIAL EXPENSE, NET Year ended 2021 2020 Income: Interest on cash and cash equivalents $ - $ 2 Expenses: Interest and accretion of discount (1,277 ) (1,259 ) Foreign currency exchange differences, net (18 ) (325 ) Other (65 ) (65 ) (1,360 ) (1,649 ) Total $ (1,360 ) $ (1,647 ) |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 12: RELATED PARTIES a. Balances with related parties: December 31 2021 2020 Interest expense accrual – Convertible Notes (*) $ - $ 32 Interest expense accrual – Convertible Debentures (*) 4 4 Short term Convertible Notes (**) - 10,000 Long term Convertible Debentures (***) 238 234 (*) Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See Notes 8(c) and 8(d), respectively for further details. (**) Related to the Convertible Notes entered into December 5, 2018 and the principal was repaid in December 2021. See Note 8(c). for further details. (***) Related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. b. Transactions with related parties: Year ended 2021 2020 Revenue (*) $ 42 $ - Interest expense on Convertible Notes (**) $ 542 $ 575 Interest expense on Convertible Debentures (***) $ 19 $ 15 (*) Related to a new OEM customer agreement signed in Q3 2021 where and this customer share the same investor. (**) Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. he principal was repaid in December 2021. See Note 8(c). for further details. (***) Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13: SUBSEQUENT EVENTS a. Reverse Share Split and increase in authorized share capital On February 7, 2022, at a Special Meeting of the Company's shareholders, the Company's shareholders approved a Reverse Share Split (including the relevant amendments to the Articles of Association of the Company) within a range of 1:4 to 1:20, to be effective at the ratio and on a date to be determined by the Board of Directors, and amendments to the Company's Articles of Association authorizing an increase in the Company's authorized share capital (and corresponding authorized ordinary shares) by up to NIS 216 million. The Board of Directors approved the implementation of a one-for-twenty Reverse Share Split and an increase in the Company's authorized share capital by NIS 216 million to NIS 240 million. On February 8, 2022, the Company announced a reverse split of its ordinary shares, ILS 0.15 par value, at a ratio of 1 for 20, which became effective February 8, 2022 (the “Effective Date”). The Company’s ordinary shares began trading on a split-adjusted basis on February 9, 2022 under the existing trading symbol “CYRN”. Please refer to Note 1(c) of the consolidated financial statements for further details. b. February 2022 financing On February 10, 2022, the Company entered into a securities purchase agreement with certain institutional investors pursuant to which the Company issued and sold, in the private placement, an aggregate of 760,757 ordinary shares, pre-funded warrants to purchase up to 2,368,318 ordinary shares and Ordinary Warrants to purchase up to 3,129,075 ordinary shares for aggregate gross proceeds of approximately $12 million, before deducting fees to the placement agent and other offering expenses payable by the Company. The purchase price of each ordinary share and associated Ordinary Warrant was $3.835 and the purchase price of each pre-funded warrant and associated Ordinary Warrant was $3.834. The Ordinary Warrants have an exercise price of $3.71, are exercisable immediately and expire on August 16, 2027. The pre-funded warrants have an exercise price of $0.001, are exercisable immediately until exercised in full. The closing of the private placement occurred on February 14, 2022. The proceeds of the offering are intended to be used for working capital and general corporate purposes. The Company also issued to the placement agent or its designees warrants to purchase up to 187,745 ordinary shares, representing 6.0% of the aggregate number of ordinary shares sold in the offering. The placement agent warrants have an exercise price equal to $4.7938 per share, or 125% of the offering price per share and were exercisable immediately and terminate on August 16, 2027. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to fair value and useful lives of intangible assets, valuation allowance on deferred tax assets, income tax uncertainties, fair values of share-based awards, other contingent liabilities and estimates used in applying the revenue recognition policy. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: Cyren’s revenues, and certain of its subsidiary’s revenues, are generated mainly in U.S. dollars. In addition, most of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the primary currency of the economic environment in which Cyren and certain of its subsidiaries operate. Thus, the functional and reporting currency of Cyren and certain of its subsidiaries is the U.S. dollar. Cyren and certain subsidiaries’ transactions and balances denominated in U.S. dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of Cyren and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at acquisition. |
Restricted deposits | e. Restricted deposits: The Company maintains certain deposits amounts restricted as to withdrawal or use. On December 31, 2021, the Company maintained a balance of $649 which is restricted and is held as collateral for a bank guarantee and a letter of credit provided to the lessors of two of the Company’s offices. The balance is presented on the balance sheets within the long-term restricted lease deposits balance. |
Property and equipment | f. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the asset or improvement. Cost of maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as outlined below: Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 5-10 |
Leases | g. Leases: The Company accounting for leases according to ASC 842, Leases. The Company determines if an arrangement is a lease and the classification of that lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Company elected the practical expedient for lease agreements with a term of twelve months or less and does not recognize ROU assets and lease liabilities in respect of those agreements. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. |
Intangible assets | h. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 20 years. Acquired customer contracts and relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer contracts and relationships arrangements as compared to the straight-line method. Technology, Intellectual Property and Trademark are amortized over their estimated useful lives on a straight-line basis. |
Impairment of long-lived assets | i. Impairment of long-lived assets: The Company’s long-lived assets (assets group) to be held or used, including right-of-use assets and identifiable intangibles are reviewed for impairment in accordance with ASC 360 “Property, Plant and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the year-ended December 31, 2021, the Company recorded an impairment loss of $115 related to a trademark for a product that was discontinued in 2021. This amount has been recognized in sales and marketing expense. The Company did not record an impairment related to the year-ended December 31, 2020. |
Goodwill | j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The Company performs an annual impairment test at December 31, of each fiscal year, or more frequently if impairment indicators are present. For each of the two years in the period ended December 31, 2021, no impairment losses have been identified. |
Fair value measurements | k. Fair value measurements: The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses, other receivables, trade payables and other payables, approximate their fair values due to the short-term maturities of such financial instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including, for example, the type of instrument, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the instruments are categorized as Level 3. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Revenue recognition | l. Revenue recognition: The Company derives its revenues in accordance with ASC 606 from the sale of real-time cloud-based services for each of Cyren’s email security, web security, anti-malware, and advanced threat protection offerings. The Company sells all of its solutions as subscription services, either through OEMs, which are considered end-users, or as complete security services directly to enterprises. The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company applies the following five-step approach: 1) Identification of the contract, or contracts, with the customer 2) Identification of the performance obligation in the contract 3) Determination of the transaction price - The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Generally, the Company does not provide price protection, stock rotation, rebates, or right of return. In 2019, one contract contained a significant financing component. Variable Consideration - 4) Allocation of the transaction price to the performance obligations in the contract - 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Subscription Service Revenue Deferred Revenue - Deferred commissions The Company capitalizes sales commissions paid to internal sales personnel that are generally incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration factors such as peer estimates of technology lives, and customer lives as well as the Company’s own historical data. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented. For the years ended December 31, 2021 and 2020, the Company capitalized $1,169 and $1,095 of commission costs, respectively, and amortized $1,320 and 1,517, respectively. |
Research and development costs, net | m. Research and development costs, net: Research and development costs are charged to statements of operations as incurred, except for capitalized technology. |
Capitalized technology | n. Capitalized technology: The Company capitalizes development costs incurred during the application development stage which are related to internal-use technology that supports its security services. Costs related to preliminary project activities and post implementation activities are expensed as incurred as research and development costs on the statements of operations. Capitalized internal-use technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally one three |
Concentrations of credit risk | o. Concentrations of credit risk: The Company has no significant off-balance-sheet concentration of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The majority of the Company’s cash and cash equivalents are invested in dollars and are deposited in major banks in the United States, Germany, Iceland, UK, and Israel. Such investments in the United States 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 institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The trade receivables of the Company are derived from transactions with companies located primarily in North America, Europe, Israel, and Asia. A provision for credit loss account is determined based on historical collection experience, customer creditworthiness, current and future economic conditions and market conditions with respect to those amounts that the Company has determined to be doubtful of collection. The provision for credit loss amounted $118 and $201 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, bad debt benefit was $68 and 5, respectively. |
Accounting for share-based compensation | p. Accounting for share-based compensation: ASC 718 - “Compensation-stock Compensation”- (“ASC 718”) requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expense for the value of its awards on a straight-line basis over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures (pursuant to the adoption of ASU 2016-09, the Company made a policy election to estimate the number of awards that are expected to vest). The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted represents the period of time that options granted are expected to be outstanding, based upon historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value for options granted in 2021 and 2020 is estimated at the date of grant using a Black-Scholes options pricing model with the following assumptions: Year ended December 31, Stock options 2021 2020 Volatility 67% - 71 % 47% - 60 % Risk-free interest rate 0.40% - 1.12 % 0.23% - 1.40 % Dividend yield 0 % 0 % Expected term (years) 4.10 4.10 |
Basic and diluted net loss per share | q. Basic and diluted net loss per share: Basic net loss per share has been computed using the weighted-average number of ordinary shares outstanding during the year. Diluted net loss per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus the weighted average number of dilutive potential ordinary shares considered outstanding during the year. In 2021 and 2020 there is no difference between the denominator of basic and diluted net loss per share. In periods where the Company reports a net loss, the effect of anti-dilutive stock options, restricted stock units, Convertible Notes, Convertible Debentures, and warrants are excluded and diluted net loss per share is equal to basic loss per share. For the years ended December 31, 2021 and 2020, 1,489,620 and 1,190,183 potential ordinary shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect, respectively. |
Severance pay | r. Severance pay: The Company’s liability for severance pay in Israel is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. The Company’s obligation for all of its Israeli employees is fully provided by monthly deposits with severance pay funds and insurance policies, and by an accrual. The value of those funds and policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. Effective October 2014, the Company’s agreements with new employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee’s monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payment is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid. Severance benefit for the year ended December 31, 2021 and 2020 was $31 and $40, respectively. |
Income taxes | s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value, and if it is more likely than not that some portion of the entire deferred tax asset will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. |
Comprehensive loss | t. Comprehensive loss: The Company accounts for comprehensive loss in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive loss generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive loss relate to gains and losses from functional currency translation adjustments on behalf of subsidiaries whose functional currency has been determined to be their local currency. |
Recently issued and adopted pronouncements | u. Recently issued and adopted pronouncements: In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. The Company adopted this new guidance January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements. |
New accounting pronouncements not yet adopted | v. New accounting pronouncements not yet adopted: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2020-06 did not have a material impact on the consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets | Useful Life (In Years) Cost: Computers and peripheral equipment 3-7 Office furniture and equipment 5-14 Leasehold improvements 5-10 |
Schedule of fair value for options granted | Year ended December 31, Stock options 2021 2020 Volatility 67% - 71 % 47% - 60 % Risk-free interest rate 0.40% - 1.12 % 0.23% - 1.40 % Dividend yield 0 % 0 % Expected term (years) 4.10 4.10 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31 2021 2020 Cost: Computers and peripheral equipment $ 11,422 $ 13,080 Office furniture and equipment 701 875 Leasehold improvements 856 861 12,979 14,816 Less accumulated depreciation (10,796 ) (10,868 ) Property and equipment, net $ 2,183 $ 3,948 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of definite-lived intangible assets | December 31, 2021 2020 Original amounts: Customer contracts and relationships $ 5,170 $ 5,398 Technology 21,216 (*) 21,903 (*) Trademarks 596 1,630 Total original amounts 26,982 28,931 Accumulated amortization: Customer contracts and relationships (4,776 ) (4,863 ) Technology (17,358 ) (14,934 ) Trademarks (544 ) (1,337 ) Accumulated amortization (22,678 ) (21,134 ) Intangible assets, net $ 4,304 $ 7,797 (*) Includes $14,062 and $14,405 capitalized technology as of December 31, 2021 and 2020, respectively. Capitalized technology includes $0 and $725 for which amortization has not yet begun as of December 31, 2021 and 2020, respectively. |
Schedule of weighted average remaining amortization period for the major classes of intangible assets | (In Years) Customer contracts and relationships 10.9 Technology 0.8 Trademarks 0.9 |
Schedule of estimated aggregate amortization expenses | 2022 $ 2,815 2023 924 2024 138 2025 129 2026 121 Thereafter 177 Total $ 4,304 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [Abstract] | |
Schedule of changes in the carrying amount of goodwill | Year ended 2021 2020 Balance at the beginning of the year $ 21,476 $ 20,246 Foreign currency translation adjustments (1,102 ) 1,230 Balance at the year end $ 20,374 $ 21,476 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of operating right-of-use assets and operating lease liabilities | Operating lease right-of-use assets $ 9,280 Operating lease liabilities, current $ 1,618 Operating lease liabilities long-term 8,624 Total operating lease liabilities $ 10,242 |
Schedule of minimum lease payments | Year ended December 31, 2022 $ 2,014 2023 1,865 2024 1,709 2025 1,653 2026 1,617 Thereafter 2,859 Total undiscounted lease payments $ 11,717 Less: Interest (1,475 ) Present value of lease liabilities $ 10,242 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases | Remaining lease term and discount rate: Weighted average remaining lease term (years) 6.4 Weighted average discount rate 4.36 % |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of employees and directors' stock option activity | Number (1) Weighted (1) Weighted Aggregate Outstanding at January 1, 2021 310,293 $ 41.80 3.18 $ - Granted 13,525 14.02 Exercised - - Expired and forfeited (142,532 ) 43.26 Outstanding at December 31, 2021 181,286 $ 38.58 2.74 $ - Options vested and expected to vest at December 31, 2021 177,136 $ 38.80 2.71 $ - Exercisable options at December 31, 2021 131,918 $ 40.69 2.27 $ - Weighted average fair value of options granted during the year $ 7.37 |
Schedule of employee and directors’ options outstanding | Outstanding Exercisable Exercise price per share (1) Options (1) Weighted Weighted (1) Options (1) Weighted (1) $6.40 - $32.80 50,920 3.09 $ 26.75 28,578 $ 30.49 $34.00 - $40.00 35,002 1.80 $ 37.76 31,165 $ 38.18 $41.80 - $42.80 55,584 3.29 $ 41.82 36,459 $ 41.82 $46.00 - $55.00 31,248 2.27 $ 47.81 28,601 $ 47.62 $58.00 - $64.00 8,532 2.65 $ 59.06 7,115 $ 59.07 181,286 2.74 $ 38.65 131,918 $ 40.69 |
Schedule of options to non-employees and non-directors | Issuance date Options (1) Exercise price per share (1) Options exercisable (1) Exercisable February 10, 2016 2,000 $ 28.80 2,000 Feb-22 January 24, 2017 1,250 $ 40.00 1,250 Jan-23 3,250 3,250 |
Schedule of RSUs activity for employees, directors and non-employees | Number (1) Weighted (1) Awarded and unvested at December 31, 2020 109,175 $ 30.00 Granted 286,670 15.67 Vested (43,913 ) 29.76 Forfeited (7,625 ) 25.76 Awarded and unvested at December 31, 2021 344,307 $ 18.20 |
Schedule of stock-based compensation expense | Year ended 2021 2020 Cost of revenues $ 269 $ 105 Research and development 224 291 Sales and marketing 324 244 General and administrative 1,638 1,751 $ 2,455 $ 2,391 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Schedule of deferred taxes | December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 36,127 $ 32,628 Capital loss carryforwards 4,104 4,104 Other 3,413 3,651 Deferred tax assets before valuation allowance 43,644 40,383 Valuation allowance (43,296 ) (39,831 ) Deferred tax asset, net of valuation allowance 348 552 Deferred tax liabilities: Intangibles (550 ) (1,054 ) Temporary Differences (205 ) (153 ) Deferred tax liability (755 ) (1,207 ) Deferred tax liability, net (*) $ (407 ) $ (655 ) (*) The entire amount is due to foreign deferred taxes |
Schedule of loss before tax benefit (expense) | Year ended 2021 2020 Domestic $ (15,870 ) $ (11,967 ) Foreign (7,307 ) (5,417 ) Loss before tax benefit (expense) $ (23,177 ) $ (17,384 ) |
Schedule of tax benefit (expense) | Year ended 2021 2020 Current taxes: Foreign $ (82 ) $ (64 ) Domestic - - $ (82 ) $ (64 ) Deferred taxes: Foreign $ 220 $ 185 Domestic - - $ 220 $ 185 Tax benefit (expense), net $ 138 $ 121 |
Schedule of unrecognized tax benefits related to uncertain tax positions | December 31, 2021 2020 Beginning balance $ 526 $ 470 Increases (decrease) related to tax positions taken during prior years 32 12 Effect of exchange rate (41 ) 44 Ending balance $ 517 $ 526 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of total revenue by solutions offered by geographic area | Year ended 2021 2020 United States $ 13,821 $ 17,377 Germany 7,979 8,500 Europe-Other 3,732 4,006 Asia Pacific 2,120 1,790 Israel 3,044 4,203 Other 491 512 $ 31,187 $ 36,388 |
Schedule of revenue generated by Customer Type | Twelve months ended 2021 2020 OEM/Embedded Security (*) $ 24,845 $ 29,465 Enterprise/SMB (**) 6,342 6,923 $ 31,187 $ 36,388 (*) This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. (**) In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. |
Schedule of long-lived tangible assets | December 31 2021 2020 Israel $ 5,612 $ 6,490 United States 1,017 1,964 Germany 3,945 5,247 Other 889 1,147 $ 11,463 $ 14,848 |
Financial Expense, Net (Tables)
Financial Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Expense, Net [Abstract] | |
Schedule of financial expense, net | Year ended 2021 2020 Income: Interest on cash and cash equivalents $ - $ 2 Expenses: Interest and accretion of discount (1,277 ) (1,259 ) Foreign currency exchange differences, net (18 ) (325 ) Other (65 ) (65 ) (1,360 ) (1,649 ) Total $ (1,360 ) $ (1,647 ) |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party balances | December 31 2021 2020 Interest expense accrual – Convertible Notes (*) $ - $ 32 Interest expense accrual – Convertible Debentures (*) 4 4 Short term Convertible Notes (**) - 10,000 Long term Convertible Debentures (***) 238 234 (*) Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See Notes 8(c) and 8(d), respectively for further details. (**) Related to the Convertible Notes entered into December 5, 2018 and the principal was repaid in December 2021. See Note 8(c). for further details. (***) Related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. |
Schedule of related party transactions | Year ended 2021 2020 Revenue (*) $ 42 $ - Interest expense on Convertible Notes (**) $ 542 $ 575 Interest expense on Convertible Debentures (***) $ 19 $ 15 (*) Related to a new OEM customer agreement signed in Q3 2021 where and this customer share the same investor. (**) Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. he principal was repaid in December 2021. See Note 8(c). for further details. (***) Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. |
General (Details)
General (Details) $ in Thousands | Feb. 07, 2022ILS (₪)shares | Dec. 31, 2021USD ($) |
General (Details) [Line Items] | ||
Accumulated deficit | $ 271,631 | |
Negative cash flows from operating activities | $ 16,021 | |
Subsequent Event [Member] | ||
General (Details) [Line Items] | ||
Reverse share split (in Shares) | shares | 80,000,000 | |
Maximum [Member] | Subsequent Event [Member] | ||
General (Details) [Line Items] | ||
Authorized share capital amount (in New Shekels) | ₪ | ₪ 240,000,000 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) [Line Items] | ||
Collateral for a bank guarantee | $ 649 | |
Impairment loss | 115 | |
Capitalized commission costs | 1,169 | $ 1,095 |
Amortized amount | 1,320 | 1,517 |
Provision for credit loss | 118 | 201 |
Bad debt benefit | $ 68 | $ 5 |
Potential ordinary shares (in Shares) | 1,489,620 | 1,190,183 |
Severance benefit | $ 31 | $ 40 |
Largest amount, percentage | 50.00% | |
Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 1 year | |
Based licensing model with contract terms | 1 year | |
Minimum [Member] | Capitalized Technology [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 1 year | |
Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 20 years | |
Based licensing model with contract terms | 3 years | |
Maximum [Member] | Capitalized Technology [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets, useful life | 3 years |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets | 12 Months Ended |
Dec. 31, 2021 | |
Minimum [Member] | Computers and peripheral equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 3 years |
Minimum [Member] | Office furniture and equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 5 years |
Minimum [Member] | Leasehold improvements [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 5 years |
Maximum [Member] | Computers and peripheral equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 7 years |
Maximum [Member] | Office furniture and equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 14 years |
Maximum [Member] | Leasehold improvements [Member] | |
Significant Accounting Policies (Details) - Schedule of depreciation is calculated using the straight-line method over the estimated useful lives of the assets [Line Items] | |
Property and equipment | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of fair value for options granted | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected term (years) | 4 years 1 month 6 days | 4 years 1 month 6 days |
Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | ||
Volatility | 67.00% | 47.00% |
Risk-free interest rate | 0.40% | 0.23% |
Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of fair value for options granted [Line Items] | ||
Volatility | 71.00% | 60.00% |
Risk-free interest rate | 1.12% | 1.40% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense amounted | $ 2,142 | $ 2,349 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cost: | ||
Property and equipment, gross | $ 12,979 | $ 14,816 |
Less accumulated depreciation | (10,796) | (10,868) |
Property and equipment, net | 2,183 | 3,948 |
Computers and peripheral equipment [Member] | ||
Cost: | ||
Property and equipment, gross | 11,422 | 13,080 |
Office furniture and equipment [Member] | ||
Cost: | ||
Property and equipment, gross | 701 | 875 |
Leasehold improvements [Member] | ||
Cost: | ||
Property and equipment, gross | $ 856 | $ 861 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets, Net (Details) [Line Items] | ||
Capitalized technology amount | $ 14,062 | $ 14,405 |
Amortization has not yet begun | 0 | 725 |
Operating expenses | 37,715 | 37,344 |
Impairment loss | 115 | |
Amortization of Intangible Assets | 2,941 | 2,823 |
R&D [Member] | ||
Intangible Assets, Net (Details) [Line Items] | ||
Operating expenses | 577 | 696 |
Capitalized interest | $ 27 | $ 49 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of definite-lived intangible assets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Original amounts: | |||
Total original amounts | $ 26,982 | $ 28,931 | |
Accumulated amortization: | |||
Accumulated amortization | (22,678) | (21,134) | |
Intangible assets, net | 4,304 | 7,797 | |
Customer contracts and relationships [Member] | |||
Original amounts: | |||
Total original amounts | 5,170 | 5,398 | |
Accumulated amortization: | |||
Accumulated amortization | (4,776) | (4,863) | |
Technology [Member] | |||
Original amounts: | |||
Total original amounts | [1] | 21,216 | 21,903 |
Accumulated amortization: | |||
Accumulated amortization | (17,358) | (14,934) | |
Trademarks [Member] | |||
Original amounts: | |||
Total original amounts | 596 | 1,630 | |
Accumulated amortization: | |||
Accumulated amortization | $ (544) | $ (1,337) | |
[1] | Includes $14,062 and $14,405 capitalized technology as of December 31, 2021 and 2020, respectively. Capitalized technology includes $0 and $725 for which amortization has not yet begun as of December 31, 2021 and 2020, respectively. |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of weighted average remaining amortization period for the major classes of intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Customer contracts and relationships [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average remaining amortization period for the major classes of intangible assets [Line Items] | |
Total intangible assets | 10 years 10 months 24 days |
Technology [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average remaining amortization period for the major classes of intangible assets [Line Items] | |
Total intangible assets | 9 months 18 days |
Trademarks [Member] | |
Intangible Assets, Net (Details) - Schedule of weighted average remaining amortization period for the major classes of intangible assets [Line Items] | |
Total intangible assets | 10 months 24 days |
Intangible Assets, Net (Detai_4
Intangible Assets, Net (Details) - Schedule of estimated aggregate amortization expenses $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of estimated aggregate amortization expenses [Abstract] | |
2022 | $ 2,815 |
2023 | 924 |
2024 | 138 |
2025 | 129 |
2026 | 121 |
Thereafter | 177 |
Total | $ 4,304 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of changes in the carrying amount of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of changes in the carrying amount of goodwill [Abstract] | ||
Balance at the beginning of the year | $ 21,476 | $ 20,246 |
Foreign currency translation adjustments | (1,102) | 1,230 |
Balance at the year end | $ 20,374 | $ 21,476 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Research and development | $ 6,444 | |
Subject to repayment (in Shares) | 2,617 | |
Commitments and contingencies, description | In return for the IIA’s participation in this program, the Company is committed to pay royalties at a rate of 3% of the program’s developed product sales, up to 100% of the amount of grants received plus interest at annual LIBOR rate. | |
Net of royalties paid or accrued | $ 2,617 | $ 2,714 |
Cost of revenues | $ 129 | $ 137 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Various operating leases description | The Company has various operating leases for office space and vehicles that expire through 2030. | |
Rent expense | $ 2,781 | $ 2,803 |
Sublease receipts | $ 663 | $ 525 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating right-of-use assets and operating lease liabilities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of operating right-of-use assets and operating lease liabilities [Abstract] | ||
Operating lease right-of-use assets | $ 9,280 | $ 10,900 |
Operating lease liabilities, current | 1,618 | |
Operating lease liabilities long-term | 8,624 | $ 9,866 |
Total operating lease liabilities | $ 10,242 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of minimum lease payments $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of minimum lease payments [Abstract] | |
2022 | $ 2,014 |
2023 | 1,865 |
2024 | 1,709 |
2025 | 1,653 |
2026 | 1,617 |
Thereafter | 2,859 |
Total undiscounted lease payments | 11,717 |
Less: Interest | (1,475) |
Present value of lease liabilities | $ 10,242 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of weighted average remaining lease terms and discount rates for all of operating leases | Dec. 31, 2021 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases [Abstract] | |
Weighted average remaining lease term (years) | 6 years 4 months 24 days |
Weighted average discount rate | 4.36% |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 05, 2018 | Sep. 17, 2021 | Feb. 16, 2021 | Mar. 31, 2020 | Jul. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares (in Shares) | 600,000 | 42,459 | |||||
Purchase of ordinary shares (in Shares) | 23 | ||||||
Net proceeds | $ 12,600 | ||||||
Placement agent warrants description | The placement agent warrants have an exercise price equal to $18.00 per share, or 125% of the offering price per share and were exercisable immediately and terminate on March 17, 2025. | ||||||
Sale of ordinary share | 6.00% | ||||||
Principal amount of convertible debenture | $ 10,000 | ||||||
Issuance of convertible notes description | The notes were unsecured, unsubordinated obligations of Cyren and carried a 5.75% interest rate, payable semi-annually in (i) 50% cash and (ii) 50% cash or ordinary shares at Cyren’s election. The notes have a 3-year term and mature in December 2021. The notes were issued with a conversion price of $3.90 per share which was subject to adjustment using a weighted-average ratchet mechanism based on the size and price of future equity offerings and the total shares outstanding. On November 7, 2019, Cyren announced the closing of a rights offering that raised gross proceeds of $8,019. As a result of this offering, the conversion price of the convertible notes was adjusted to $3.73. As a result of the February 16, 2021 offering in Note 8(b), the conversion price of the convertible notes was adjusted to $3.38. As a result of the September 17, 2021 offering in Note 8(b), the conversion price of the convertible notes was adjusted to $3.02. In addition, the notes were subject to immediate conversion upon any change in control in the Company (or subject to repayment if the price in the change in control transaction is less than the conversion price). | The debentures have a four-year term and mature in March 2024 | |||||
Interest expense | $ 543 | $ 574 | |||||
Interest payments | 575 | 575 | |||||
Interest paid in cash | $ 288 | $ 288 | |||||
Issuance of shares (in Shares) | 26,425 | 13,983 | |||||
Accrued interest | $ 0 | $ 32 | |||||
Maturity date | Dec. 5, 2021 | ||||||
Aggregate principal amount | $ 800 | ||||||
Principal and interest issuance of shares (in Shares) | 60,074 | 24,150 | |||||
Principal plus interest | $ 909 | $ 364 | |||||
Accrued interest | 137 | $ 167 | |||||
Debt Issuance Costs, Net | 8,600 | ||||||
Principal balance of convertible debentures | $ 9,000 | ||||||
Options grant, description | The per share exercise price for options shall be no less than 100% of the fair market value per ordinary share on the date of grant. Any options and RSUs that are cancelled or not exercised within the option term become available for future grant. | ||||||
Ordinary shares authorized, description | the shareholders of the Company approved an increase in the number of Ordinary Shares reserved for issuance under the 2016 Equity Incentive Plan and its respective Israeli Appendix to a total of 560,000 ordinary shares. | ||||||
Ordinary shares reserved for issuance (in Shares) | 301,556 | ||||||
Reverse stock split, description | the Company’s 1-for-20 reverse share-split effective February 8, 2022 | ||||||
Intrinsic value of options exercised | $ 0 | ||||||
Weighted average grant date value of option granted (in Dollars per share) | $ 7.4 | $ 13.2 | |||||
Unrecognized compensation expense | $ 603 | ||||||
Recognized over remaining weighted average period | 1 year 8 months 1 day | ||||||
Options grant/vest, description | The options vest and become exercisable at a rate of 1/16 of the options every three months. | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Unrecognized compensation expense | $ 4,849 | ||||||
Recognized over remaining weighted average period | 2 years 6 months 10 days | ||||||
Issuance of convertible notes [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Issuance of shares for payment of interest on convertible notes | $ 10,000 | ||||||
Convertible Notes Payable [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Principal amount of convertible debenture | 10,250 | $ 1,000 | |||||
Interest rate | 5.75% | ||||||
Convertible Debentures [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Principal amount of convertible debenture | $ 9,400 | ||||||
Conversion price, per share (in Dollars per share) | $ 15 | ||||||
Convertible shares (in Shares) | 67 | ||||||
Interest Expense, Debt | $ 677 | $ 601 | |||||
Issuance of Convertible Debentures [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Interest payments | $ 518 | $ 289 | |||||
Principal and interest issuance of shares (in Shares) | 31,298 | 14,047 | |||||
Non-Employee Plan [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Number of ordinary shares reserved for issuance (in Shares) | 57,500 | ||||||
Ordinary shares available for future grant (in Shares) | 34,903 | ||||||
Warrant [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares (in Shares) | 707,639 | 36,000 | |||||
Aggregate of ordinary shares, percentage | 6.00% | ||||||
Placement agent warrants description | The placement agent warrants have an exercise price equal to $28.75, or 125% of the offering price, per Ordinary Share and became exercisable on August 16, 2021 for five years from the effective date of the offering. | ||||||
Warrant, Exercise Price, Decrease (in Dollars per share) | $ 12 | ||||||
Termination date | Mar. 17, 2025 | ||||||
Private Placement [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares (in Shares) | 707,639 | ||||||
Purchase of ordinary shares (in Shares) | 14.4 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of employees and directors' stock option activity - Employees and directors' stock option [Member] | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / sharesshares | ||
Shareholders’ Equity (Details) - Schedule of employees and directors' stock option activity [Line Items] | ||
Number of Options, Outstanding Beginning Balance (in Shares) | shares | 310,293 | [1] |
Weighted average exercise price, Outstanding Beginning Balance | $ 41.8 | [1] |
Weighted average remaining contractual term (years), Outstanding Beginning Balance | 3 years 2 months 4 days | |
Aggregate Intrinsic Value, Outstanding Beginning Balance (in Dollars) | $ | ||
Number of Options, Granted (in Shares) | shares | 13,525 | [1] |
Weighted average exercise price, Granted | $ 14.02 | [1] |
Number of Options, Exercised (in Shares) | shares | [1] | |
Weighted average exercise price, Exercised | [1] | |
Number of Options, Expired and forfeited (in Shares) | shares | (142,532) | [1] |
Weighted average exercise price, Expired and forfeited | $ 43.26 | [1] |
Number of Options, Outstanding Ending Balance (in Shares) | shares | 181,286 | [1] |
Weighted average exercise price, Outstanding Ending Balance | $ 38.58 | [1] |
Weighted average remaining contractual term (years), Outstanding Ending Balance | 2 years 8 months 26 days | |
Aggregate Intrinsic Value, Outstanding Ending Balance (in Dollars) | $ | ||
Number of Options, Options vested and expected to vest (in Shares) | shares | 177,136 | [1] |
Weighted average exercise price, Options vested and expected to vest | $ 38.8 | [1] |
Weighted average remaining contractual term (years), Options vested and expected to vest | 2 years 8 months 15 days | |
Aggregate Intrinsic Value, Options vested and expected to vest (in Dollars) | $ | ||
Number of Options, Exercisable options (in Shares) | shares | 131,918 | [1] |
Weighted average exercise price, Exercisable options | $ 40.69 | [1] |
Weighted average remaining contractual term (years), Exercisable options | 2 years 3 months 7 days | |
Aggregate Intrinsic Value, Exercisable options (in Dollars) | $ | ||
Weighted average exercise price, Weighted average fair value of options granted during the year | $ 7.37 | [1] |
[1] | Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). |
Shareholders_ Equity (Details_2
Shareholders’ Equity (Details) - Schedule of employee and directors’ options outstanding | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | ||
$6.40 - $32.80 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 50,920 | [1] |
Weighted average remaining contractual life in years | 3 years 1 month 2 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 26.75 | [1] |
Options exercisable | shares | 28,578 | [1] |
Weighted average exercise price per share | $ / shares | $ 30.49 | [1] |
$34.00 - $40.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 35,002 | [1] |
Weighted average remaining contractual life in years | 1 year 9 months 18 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 37.76 | [1] |
Options exercisable | shares | 31,165 | [1] |
Weighted average exercise price per share | $ / shares | $ 38.18 | [1] |
$41.80 - $42.80 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 55,584 | [1] |
Weighted average remaining contractual life in years | 3 years 3 months 14 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 41.82 | [1] |
Options exercisable | shares | 36,459 | [1] |
Weighted average exercise price per share | $ / shares | $ 41.82 | [1] |
$46.00 - $55.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 31,248 | [1] |
Weighted average remaining contractual life in years | 2 years 3 months 7 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 47.81 | [1] |
Options exercisable | shares | 28,601 | [1] |
Weighted average exercise price per share | $ / shares | $ 47.62 | [1] |
$58.00 - $64.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 8,532 | [1] |
Weighted average remaining contractual life in years | 2 years 7 months 24 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 59.06 | [1] |
Options exercisable | shares | 7,115 | [1] |
Weighted average exercise price per share | $ / shares | $ 59.07 | [1] |
Exercise Price Range [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | shares | 181,286 | [1] |
Weighted average remaining contractual life in years | 2 years 8 months 26 days | |
Weighted average exercise price per share, Option outstanding | $ / shares | $ 38.65 | [1] |
Options exercisable | shares | 131,918 | [1] |
Weighted average exercise price per share | $ / shares | $ 40.69 | [1] |
[1] | Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). |
Shareholders_ Equity (Details_3
Shareholders’ Equity (Details) - Schedule of options to non-employees and non-directors | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | ||
February 10, 2016 [Member] | ||
Shareholders’ Equity (Details) - Schedule of options to non-employees and non-directors [Line Items] | ||
Options outstanding | 2,000 | [1] |
Exercise price per share (in Dollars per share) | $ / shares | $ 28.8 | [1] |
Options exercisable | 2,000 | [1] |
Exercisable through | Feb-22 | |
January 24, 2017 [Member] | ||
Shareholders’ Equity (Details) - Schedule of options to non-employees and non-directors [Line Items] | ||
Options outstanding | 1,250 | [1] |
Exercise price per share (in Dollars per share) | $ / shares | $ 40 | [1] |
Options exercisable | 1,250 | [1] |
Exercisable through | Jan-23 | |
Issuance date [Member] | ||
Shareholders’ Equity (Details) - Schedule of options to non-employees and non-directors [Line Items] | ||
Options outstanding | 3,250 | [1] |
Options exercisable | 3,250 | [1] |
[1] | Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 13(b). |
Shareholders_ Equity (Details_4
Shareholders’ Equity (Details) - Schedule of RSUs activity for employees, directors and non-employees - Restricted Stock Units (RSUs) [Member] | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | [1] | |
Shareholders’ Equity (Details) - Schedule of RSUs activity for employees, directors and non-employees [Line Items] | ||
Number of of RSUs Awarded and unvested, Beginning Balance | shares | 109,175 | |
Weighted Average Grant Date Fair Value Awarded and unvested, Beginning Balance | $ / shares | $ 30 | |
Number of of RSUs, Granted | shares | 286,670 | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 15.67 | |
Number of of RSUs, Vested | shares | (43,913) | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 29.76 | |
Number of of RSUs, Forfeited | shares | (7,625) | |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 25.76 | |
Number of of RSUs Awarded and unvested, Ending Balance | shares | 344,307 | |
Weighted Average Grant Date Fair Value Awarded and unvested, Ending Balance | $ / shares | $ 18.2 | |
[1] | Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-20 reverse share-split effective February 8, 2022, as described in Note 8(b). |
Shareholders_ Equity (Details_5
Shareholders’ Equity (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 2,455 | $ 2,391 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 269 | 105 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 224 | 291 |
Sales and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | 324 | 244 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Compensation expense | $ 1,638 | $ 1,751 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Corporate tax rate, percentage | 23.00% | 23.00% |
German tax at a consolidated rate | 30.00% | |
Net operating loss | $ 114,185 | |
Capital loss carryforwards | 17,844 | |
U.S. subsidiary had net operating loss carryforwards | 42,758 | |
Federal tax | $ 12,896 | |
Carryforward losses, description | expire in the years 2022 through 2041. | |
Increase in carryforward losses | $ 4,587 | $ 3,554 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of deferred taxes - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 36,127 | $ 32,628 | |
Capital loss carryforwards | 4,104 | 4,104 | |
Other | 3,413 | 3,651 | |
Deferred tax assets before valuation allowance | 43,644 | 40,383 | |
Valuation allowance | (43,296) | (39,831) | |
Deferred tax asset, net of valuation allowance | 348 | 552 | |
Deferred tax liabilities: | |||
Intangibles | (550) | (1,054) | |
Temporary Differences | (205) | (153) | |
Deferred tax liability | (755) | (1,207) | |
Deferred tax liability, net | [1] | $ (407) | $ (655) |
[1] | The entire amount is due to foreign deferred taxes |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of loss before tax benefit (expense) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of loss before tax benefit (expense) [Abstract] | ||
Domestic | $ (15,870) | $ (11,967) |
Foreign | (7,307) | (5,417) |
Loss before tax benefit (expense) | $ (23,177) | $ (17,384) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of tax benefit (expense) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current taxes: | ||
Foreign | $ (82) | $ (64) |
Domestic | ||
Total Current taxes | (82) | (64) |
Deferred taxes: | ||
Foreign | 220 | 185 |
Domestic | ||
Total Deferred taxes | 220 | 185 |
Tax benefit (expense), net | $ 138 | $ 121 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of unrecognized tax benefits related to uncertain tax positions - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of unrecognized tax benefits related to uncertain tax positions [Abstract] | ||
Beginning balance | $ 526 | $ 470 |
Increases (decrease) related to tax positions taken during prior years | 32 | 12 |
Effect of exchange rate | (41) | 44 |
Ending balance | $ 517 | $ 526 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Segment Reporting [Abstract] | |
Number of reporting segments | 1 |
Segment reporting, major customer's description | During the years ended December 31, 2021 and 2020, 19% and 23%, respectively of the Company’s revenues were derived from a single customer. No other customer accounted for more than 10% of total revenue. |
Revenue remaining performance obligations | $ 29,566 |
Description of revenue remaining performance obligation | The Company expects to recognize revenue on approximately 69% of these remaining performance obligations in 2022, and approximately 24% in 2023, with the remainder recognized thereafter. |
Segment and Geographic Inform_4
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | $ 31,187 | $ 36,388 |
United States [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 13,821 | 17,377 |
Germany [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 7,979 | 8,500 |
Europe-Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 3,732 | 4,006 |
Asia Pacific [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 2,120 | 1,790 |
Israel [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | 3,044 | 4,203 |
Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of total revenue by solutions offered by geographic area [Line Items] | ||
Revenues from external customers | $ 491 | $ 512 |
Segment and Geographic Inform_5
Segment and Geographic Information (Details) - Schedule of revenue generated by customer type - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenue from External Customer [Line Items] | |||
Revenues from external customers | $ 31,187 | $ 36,388 | |
OEM/Embedded Security [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues from external customers | [1] | 24,845 | 29,465 |
Enterprise/SMB [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenues from external customers | [2] | $ 6,342 | $ 6,923 |
[1] | This market represents customers who embed Cyren Threat Detection Services and Threat Intelligence Feeds into their infrastructure and/or products to protect their customers and users. | ||
[2] | In this market, Cyren provides enterprise customers email security products, threat intelligence and cloud-based sandbox threat analysis to protect their employees, data, and IP. |
Segment and Geographic Inform_6
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets [Line Items] | ||
Net amount of property and equipment | $ 11,463 | $ 14,848 |
Israel [Member] | ||
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets [Line Items] | ||
Net amount of property and equipment | 5,612 | 6,490 |
United States [Member] | ||
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets [Line Items] | ||
Net amount of property and equipment | 1,017 | 1,964 |
Germany [Member] | ||
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets [Line Items] | ||
Net amount of property and equipment | 3,945 | 5,247 |
Other [Member] | ||
Segment and Geographic Information (Details) - Schedule of long-lived tangible assets [Line Items] | ||
Net amount of property and equipment | $ 889 | $ 1,147 |
Financial Expense, Net (Details
Financial Expense, Net (Details) - Schedule of financial expense, net - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income: | ||
Interest on cash and cash equivalents | $ 2 | |
Expenses: | ||
Interest and accretion of discount | (1,277) | (1,259) |
Foreign currency exchange differences, net | (18) | (325) |
Other | (65) | (65) |
Total financial expenses | (1,360) | (1,649) |
Total | $ (1,360) | $ (1,647) |
Related Parties (Details) - Sch
Related Parties (Details) - Schedule of related party balances - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of related party balances [Abstract] | |||
Interest expense accrual – Convertible Notes | [1] | $ 32 | |
Interest expense accrual – Convertible Debentures | [1] | 4 | 4 |
Short term Convertible Notes | [2] | 10,000 | |
Long term Convertible Debentures | [3] | $ 238 | $ 234 |
[1] | Related to the semi-annual interest payable due in June and December related to the Convertible Note entered into December 5, 2018 and the semi-annual interest payable due in September and March related to the Convertible Debentures entered into March 19, 2020. See Notes 8(c) and 8(d), respectively for further details. | ||
[2] | Related to the Convertible Notes entered into December 5, 2018 and the principal was repaid in December 2021. See Note 8(c). for further details. | ||
[3] | Related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. |
Related Parties (Details) - S_2
Related Parties (Details) - Schedule of related party transactions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of related party transactions [Abstract] | |||
Revenue | [1] | $ 42 | |
Interest expense on Convertible Notes | [2] | 542 | 575 |
Interest expense on Convertible Debentures | [3] | $ 19 | $ 15 |
[1] | Related to a new OEM customer agreement signed in Q3 2021 where and this customer share the same investor. | ||
[2] | Related to the semi-annual interest payments due in June and December related to the Convertible Notes entered into December 5, 2018. he principal was repaid in December 2021. See Note 8(c). for further details. | ||
[3] | Related to the semi-annual interest payments due in September and March related to the Convertible Debentures entered into March 19, 2020. See Note 8(d). for further details. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Feb. 10, 2022$ / shares | Feb. 08, 2022₪ / shares | Feb. 07, 2022 |
Subsequent Events (Details) [Line Items] | |||
Reverse share split ,description | at a ratio of 1 for 20, which became effective February 8, 2022 (the “Effective Date”). | at a Special Meeting of the Company's shareholders, the Company's shareholders approved a Reverse Share Split (including the relevant amendments to the Articles of Association of the Company) within a range of 1:4 to 1:20, to be effective at the ratio and on a date to be determined by the Board of Directors, and amendments to the Company's Articles of Association authorizing an increase in the Company's authorized share capital (and corresponding authorized ordinary shares) by up to NIS 216 million. The Board of Directors approved the implementation of a one-for-twenty Reverse Share Split and an increase in the Company's authorized share capital by NIS 216 million to NIS 240 million. | |
Reverse split ordinary shares par value | ₪ / shares | ₪ 0.15 | ||
Agreement description | the Company entered into a securities purchase agreement with certain institutional investors pursuant to which the Company issued and sold, in the private placement, an aggregate of 760,757 ordinary shares, pre-funded warrants to purchase up to 2,368,318 ordinary shares and Ordinary Warrants to purchase up to 3,129,075 ordinary shares for aggregate gross proceeds of approximately $12 million, before deducting fees to the placement agent and other offering expenses payable by the Company. The purchase price of each ordinary share and associated Ordinary Warrant was $3.835 and the purchase price of each pre-funded warrant and associated Ordinary Warrant was $3.834. The Ordinary Warrants have an exercise price of $3.71, are exercisable immediately and expire on August 16, 2027. | ||
Pre-funded warrants exercise price per share | $ / shares | $ 0.001 | ||
Placement agent, description | The Company also issued to the placement agent or its designees warrants to purchase up to 187,745 ordinary shares, representing 6.0% of the aggregate number of ordinary shares sold in the offering. The placement agent warrants have an exercise price equal to $4.7938 per share, or 125% of the offering price per share and were exercisable immediately and terminate on August 16, 2027. |