Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 24, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001607962 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36612 | ||
Entity Registrant Name | ReWalk Robotics Ltd. | ||
Entity Incorporation State or Country Code | IL | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 3 Hatnufa Street | ||
Entity Address, Address Line Two | Floor 6 | ||
Entity Address, City or Town | Yokneam Ilit | ||
Entity Address, Country | IL | ||
Entity Address, Postal Zip Code | 2069203 | ||
City Area Code | 972 | ||
Local Phone Number | 4.959.0123 | ||
Title of 12(b) Security | Ordinary Shares, par value NIS 0.25 per share | ||
Trading Symbol | RWLK | ||
Name of Exchange on which Security is Registered | NASDAQ | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Auditor Attestation Flag | false | ||
Entity Public Float | $ 77,594,282 | ||
Entity Common Stock, Shares Outstanding | 62,507,717 | ||
Auditor Name | KOST FORER GABBAY & KASIERER | ||
Auditor Location | Tel-Aviv, Israel | ||
Auditor Firm Id | 1281 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 88,337 | $ 20,350 | |
Trade receivable, net | [1] | 585 | 684 |
Prepaid expenses and other current assets | 610 | 672 | |
Inventories | 2,989 | 3,542 | |
Total current assets | 92,521 | 25,248 | |
LONG-TERM ASSETS | |||
Restricted cash and other long term assets | 1,064 | 1,033 | |
Operating lease right-of-use assets | 881 | 1,349 | |
Property and equipment, net | 284 | 437 | |
Total long-term assets | 2,229 | 2,819 | |
Total assets | 94,750 | 28,067 | |
CURRENT LIABILITIES: | |||
Current maturities of operating leases liability | 641 | 660 | |
Trade payables | 1,384 | 2,268 | |
Employees and payroll accruals | 1,142 | 867 | |
Deferred revenues | 316 | 441 | |
Other current liabilities | 555 | 432 | |
Total current liabilities | 4,038 | 4,668 | |
LONG-TERM LIABILITIES | |||
Deferred revenues | 866 | 667 | |
Non-current operating leases liability | 418 | 923 | |
Other long-term liabilities | 45 | 35 | |
Total long-term liabilities | 1,329 | 1,625 | |
Total liabilities | 5,367 | 6,293 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
Shareholders' equity: | |||
Share capital Ordinary share of NIS 0.25 par value-Authorized: 120,000,000 and 60,000,000 shares at December 31, 2021 and 2020; Issued and outstanding: 62,480,163 and 25,332,225 shares at December 31, 2021 and December 31, 2020, respectively | 4,661 | 1,827 | |
Additional paid-in capital | 278,903 | 201,392 | |
Accumulated deficit | (194,181) | (181,445) | |
Total shareholders' equity | 89,383 | 21,774 | |
Total liabilities and shareholders' equity | $ 94,750 | $ 28,067 | |
[1] | Balance presented net of unrecognized revenues that were not yet collected. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in NIS per share) | ₪ 0.25 | ₪ 0.25 |
Ordinary shares, authorized | 120,000,000 | 60,000,000 |
Ordinary shares, issued | 62,480,163 | 25,332,225 |
Ordinary shares, outstanding | 62,480,163 | 25,332,225 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 5,966 | $ 4,393 | $ 4,873 |
Cost of revenues | 3,063 | 2,204 | 2,147 |
Gross profit | 2,903 | 2,189 | 2,726 |
Operating expenses: | |||
Research and development | 2,939 | 3,459 | 5,348 |
Sales and marketing | 6,993 | 5,754 | 6,167 |
General and administrative | 5,626 | 4,980 | 5,259 |
Total operating expenses | 15,558 | 14,193 | 16,774 |
Operating loss | (12,655) | (12,004) | (14,048) |
Financial expenses (income), net | (13) | 921 | 1,496 |
Loss before income taxes | (12,642) | (12,925) | (15,544) |
Taxes on income | 94 | 51 | 7 |
Net loss | $ (12,736) | $ (12,976) | $ (15,551) |
Net loss per ordinary share, basic and diluted | $ (0.27) | $ (0.82) | $ (2.70) |
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 47,935,652 | 15,764,980 | 5,763,317 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Share | Additional paid-in capital [Member] | Accumulated deficit [Member] | Total | |
Balance at Dec. 31, 2018 | $ 193 | $ 154,670 | $ (152,918) | $ 1,945 | |
Balance, shares at Dec. 31, 2018 | 2,813,087 | ||||
Share-based compensation to employees and non-employees | 1,108 | 1,108 | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees | $ 2 | 2 | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees, shares | 47,473 | ||||
Issuance of ordinary shares in a "best effort" offering, net of issuance expenses in the amount of $686 | [1] | $ 52 | 3,632 | 3,684 | |
Issuance of ordinary shares in a "best effort" offering, net of issuance expenses in the amount of $686, shares | [1] | 760,000 | |||
Exercise of pre-funded warrants and warrants | [1] | $ 40 | 1,461 | 1,501 | |
Exercise of pre-funded warrants and warrants, shares | [1] | 584,087 | |||
Issuance of ordinary shares in a "Registered Direct" offering, net of issuance expenses in the amount of $ 1,125 | [1] | $ 115 | 8,010 | 8,125 | |
Issuance of ordinary shares in a "Registered Direct" offering, net of issuance expenses in the amount of $ 1,125, shares | [1] | 1,650,248 | |||
Issuance of ordinary shares in a "Warrant exercise" agreement, net of issuance expenses in the amount of $ 1,019 | [1] | $ 102 | 9,864 | 9,966 | |
Issuance of ordinary shares in a "Warrant exercise" agreement, net of issuance expenses in the amount of $ 1,019,shares | 1,464,665 | ||||
Net loss | (15,551) | (15,551) | |||
Balance at Dec. 31, 2019 | $ 504 | 178,745 | (168,469) | 10,780 | |
Balance, shares at Dec. 31, 2019 | 7,319,560 | ||||
Share-based compensation to employees and non-employees | 749 | 749 | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees | $ 3 | (3) | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees, shares | 63,111 | ||||
Issuance of ordinary shares in a "Best Efforts" offering, net of issuance expenses in the amount of $ 1,056 | [1] | $ 290 | 3,720 | 4,010 | |
Issuance of ordinary shares in a "Best Efforts" offering, net of issuance expenses in the amount of $ 1,056, shares | [1] | 4,053,172 | |||
Exercise of pre-funded warrants and warrants | [1],[2] | $ 244 | 3,979 | 4,223 | |
Exercise of pre-funded warrants and warrants, shares | [1],[2] | 3,378,328 | |||
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $ 1,019 | [1] | $ 357 | 7,624 | 7,981 | |
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $ 1,019, shares | [1] | 4,938,278 | |||
Issuance of ordinary shares in a private placement, net of issuance expenses in the amount of $ 993 | [1] | $ 429 | 6,578 | 7,007 | |
Issuance of ordinary shares in a private placement, net of issuance expenses in the amount of $ 993, shares | [1] | 5,579,776 | |||
Net loss | (12,976) | (12,976) | |||
Balance at Dec. 31, 2020 | $ 1,827 | 201,392 | (181,445) | 21,774 | |
Balance, shares at Dec. 31, 2020 | 25,332,225 | ||||
Share-based compensation to employees and non-employees | 833 | 833 | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees | $ 31 | (31) | |||
Issuance of ordinary shares upon vesting of RSUs by employees and non-employees, shares | 398,164 | ||||
Issuance of ordinary shares in a "Best Efforts" offering, net of issuance expenses in the amount of $ 1,056 | [1] | $ 832 | 35,489 | 36,321 | |
Issuance of ordinary shares in a "Best Efforts" offering, net of issuance expenses in the amount of $ 1,056, shares | [1] | 10,921,502 | |||
Exercise of pre-funded warrants and warrants | [1],[2] | $ 772 | 14,288 | 15,060 | |
Exercise of pre-funded warrants and warrants, shares | [1],[2] | 10,425,258 | |||
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $ 1,019 | [1] | $ 1,199 | 26,932 | 28,131 | |
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $ 1,019, shares | [1] | 15,403,014 | |||
Net loss | (12,736) | (12,736) | |||
Balance at Dec. 31, 2021 | $ 4,661 | $ 278,903 | $ (194,181) | $ 89,383 | |
Balance, shares at Dec. 31, 2021 | 62,480,163 | ||||
[1] | See Note 8b. | ||||
[2] | See Note 8f. |
STATEMENTS OF CHANGES IN SHAR_2
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Best Offering [Member] | |||
Issuance expenses, amount | $ 3,679 | $ 1,056 | $ 686 |
Registered Direct [Member] | |||
Issuance expenses, amount | $ 3,215 | 1,019 | 1,125 |
Private Placement [Member] | |||
Issuance expenses, amount | $ 993 | ||
Warrant Exercise [Member] | |||
Issuance expenses, amount | $ 1,019 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Cash flows used in operating activities: | |||||
Net loss | $ (12,736) | $ (12,976) | $ (15,551) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation | 266 | 285 | 321 | ||
Share-based compensation to employees and non-employees | 833 | 749 | 1,108 | ||
Deferred taxes | (29) | (44) | (57) | ||
Gain on PPP forgiveness | (392) | ||||
Changes in assets and liabilities: | |||||
Trade receivables, net | 99 | 110 | (36) | ||
Prepaid expenses, operating lease right-of-use assets and other assets | 592 | 166 | 64 | ||
Inventories | 432 | (469) | (1,221) | ||
Trade payables | (884) | (506) | 370 | ||
Employees and payroll accruals | 275 | 197 | 20 | ||
Deferred revenues | 74 | 264 | 176 | ||
Operating lease liabilities and other liabilities | (391) | 27 | (9) | ||
Net cash used in operating activities | (11,469) | (12,589) | (14,815) | ||
Cash flows used in investing activities: | |||||
Purchase of property and equipment | (47) | (73) | (22) | ||
Net cash used in investing activities | (47) | (73) | (22) | ||
Cash flows from financing activities: | |||||
Repayment of long-term loan | [1] | (6,965) | (1,722) | ||
Proceeds from PPP loan | [2] | 392 | |||
Issuance of ordinary shares in a "best effort" offering, net of issuance expenses in the amount of $686 | [2] | 3,684 | |||
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $1,035 | [2] | 8,125 | |||
Issuance of ordinary shares in a "warrant exercise" agreement, net of issuance expenses in the amount of $1,019 (1) | [2] | 9,966 | |||
Issuance of ordinary shares in a "best effort" offering, net of issuance expenses in the amount of $1,056 | [2] | 4,010 | |||
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $977 | [2] | 8,023 | |||
Issuance of ordinary shares in a private placement, net of issuance expenses in the amount of $959 | [2] | 7,041 | |||
Issuance of ordinary shares in a private placement, net of issuance expenses paid in the amount of $3,679 | [2] | 36,321 | |||
Issuance of ordinary shares in a "registered direct" offering, net of issuance expenses in the amount of $3,215 | [2] | 28,131 | |||
Exercise of pre-funded warrants and warrants | [2],[3] | 15,060 | 4,223 | 1,429 | |
Net cash provided by financing activities | 79,512 | [2] | 16,724 | 21,482 | |
Increase in cash, cash equivalents, and restricted cash | 67,996 | 4,062 | 6,645 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 21,054 | 16,992 | 10,347 | ||
Cash, cash equivalents, and restricted cash at end of period | 89,050 | 21,054 | 16,992 | ||
Supplemental disclosures of non-cash flow information | |||||
Expenses related to offerings not yet paid | [2] | 76 | 90 | ||
Classification of other current assets to property and equipment, net | 34 | 98 | |||
Classification of inventory to other current assets | 89 | 164 | |||
Classification of inventory to property and equipment | 32 | 50 | 174 | ||
Cashless exercise of pre-funded warrants | 72 | ||||
Initial recognition of operating lease right-of-use assets | 2,099 | ||||
Initial recognition of operating lease liabilities | (2,249) | ||||
Supplemental disclosures of cash flow information: | |||||
Cash and cash equivalents | 88,337 | 20,350 | 16,253 | ||
Restricted cash included in other long term assets | 713 | 704 | 739 | ||
Total Cash, cash equivalents, and restricted cash | 89,050 | 21,054 | 16,992 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for income taxes | 40 | 13 | 21 | ||
Cash paid for interest | $ 862 | $ 1,499 | |||
[1] | See Note 10 | ||||
[2] | See Note 8b. | ||||
[3] | See Note 8f. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Private Placement [Member] | |||
Issuance expenses paid | $ 3,679 | $ 959 | |
Registered Direct [Member] | |||
Issuance expenses paid | $ 3,215 | 977 | $ 1,035 |
Best Offering [Member] | |||
Issuance expenses paid | $ 1,056 | 686 | |
Warrant Exercise [Member] | |||
Issuance expenses paid | $ 1,019 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. ReWalk Robotics Ltd. (“RRL”, and together with its subsidiaries, the “Company”) was incorporated under the laws of the State b. RRL has two wholly owned subsidiaries: (i) ReWalk Robotics Inc. (“RRI”) incorporated under the laws of Delaware on c. The Company is designing, developing, and commercializing robotic exoskeletons that allow individuals with mobility During the second quarter of 2020, we have finalized two separate agreements to distribute additional product lines in the U.S. market. The Company will be the exclusive distributor of the MediTouch Tutor movement biofeedback systems in the United States and will also have distribution rights for the MYOLYN MyoCycle FES cycles to U.S. rehabilitation clinics and personal sales through the U.S. Department of Veterans Affairs (“VA”) hospitals. These new products will improve our product offering to clinics as well as patients within the VA as they both have similar clinician and patient profiles. d. The Company depends on one contract manufacturer, Sanmina. Reliance on this vendor makes the Company vulnerable to e. The worldwide spread of COVID-19 has resulted in a global economic slowdown and is expected to continue to disrupt general F - 10 f. For the full year ended December 31, 2021 the Company incurred a consolidated net loss of $12.7 million and has an The Company expects to incur future net losses and our transition to profitability is dependent upon, among other things, the successful development and commercialization of the Company’s products and product candidates, the achievement of a level of revenues adequate to support the cost structure. Until the Company achieves profitability or generates positive cash flows, it will continue to need to raise additional cash. The Company intends to fund future operations through cash on hand, additional private and/or public offerings of debt or equity securities, cash exercises of outstanding warrants or a combination of the foregoing. In addition, the Company may seek additional capital through arrangements with strategic partners or from other sources and will continue to address its cost structure. Notwithstanding, there can be no assurance that the Company will be able to raise additional funds or achieve or sustain profitability or positive cash flows from operations. |
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 are prepared according to United States generally accepted accounting principles (“U.S. GAAP”), applied on a consistent basis, as follows: a. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues 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 inventories, fair values of share-based awards and warrants, contingent liabilities, provision for warranty, allowance for doubtful account and sales return reserve. 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: Since 2015, most of the Company’s expenses were denominated in United States dollars (“dollars”) and the remaining expenses were denominated in New Israeli Shekel (“NIS”) and Euros. Until 2018 most of the Company’s revenues were denominated in U.S. dollars and the remainder of our revenues was denominated in Euros and British pound whereas in the last three years our Euro revenues are higher than the ones in dollars. However, the selling prices are linked to the Company’s price list which is determined in dollars, the budget is managed in dollars, financing activities including loans and fundraising activities, are made in U.S. dollars and the Company’s management believes that the dollar is the primary currency of the economic environment in which the Company and each of its subsidiaries operate. Thus, the dollar is the Company’s and its subsidiaries’ functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are re-measured to the functional currency in accordance with Accounting Standards Codification (“ASC”) No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the relevant reporting period. At the end of each reporting period, financial assets and liabilities are re-measured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are re-measured at historical exchange rates. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statements of operations. F - 11 c. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, RRI and RRG. All intercompany transactions and balances 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 the date acquired. e. Inventories: Inventories are stated at the lower of cost or market value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company periodically evaluates the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its market value. Cost is determined as follows: Finished products - on the basis of raw materials and manufacturing costs on an average basis. Raw materials - The weighted average cost method. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors, including historical usage rates and forecasted sales according to outstanding backlogs. Purchasing requirements and alternative usage are explored within these processes to mitigate inventory exposure. When recorded, the reserves are intended to reduce the carrying value of inventory to its net realizable value. In the years ended December 31, 2021, 2020 and 2019, the Company wrote off inventory in the amount of $252 thousand, $215 thousand, and $64 thousand, respectively. The write off inventory were recorded in cost of revenue. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory reserves may be required. F - 12 f. Balances and transactions with related parties: The Company has a related party shareholder named Yaskawa Electric Corporation (“YEC”). In September 2013, the Company entered into a share purchase agreement and a strategic alliance with YEC, pursuant to which YEC has agreed to distribute the Company’s products, in addition to providing sales, marketing, service and training functions, in Japan, China (including Hong-Kong and Macau), Taiwan, South Korea, Singapore and Thailand. As of December 31, 2021, and 2020, there have been no related party receivable with YEC . Revenues from YEC during the years ended December 31, 2021, 2020, and 2019 amounted to $0 thousand, $0 thousand and $41 thousand, respectively. g. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 20-33 (mainly 33) Office furniture and equipment 6 - 10 (mainly 10) Machinery and laboratory equipment 15 Field service units 50 Leasehold improvements Over the shorter of the lease term or estimated useful life h. Impairment of Long-Lived Assets: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2021, 2020 and 2019, no impairment losses have been recorded. i. Restricted cash and Other long-term assets: Other long-term assets include long-term prepaid expenses and restricted cash deposits for offices and cars leasing based upon the term of the remaining restrictions. j. Revenue Recognition: The Company generates revenues from sales of products. The Company sells its products directly to end customers and through distributors. The Company sells its products to private individuals (who finance the purchases by themselves, through fundraising or reimbursement coverage from insurance companies), rehabilitation facilities and distributors. F - 13 The Company recognized revenue in accordance with ASC Topic 606 when, or as, control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five steps: 1. Identify the contract with a customer The Company generally considers purchase order or a signed quote, to be contracts with customers. In evaluating the contract with a customer, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration. 2. Identify the performance obligations in the contract At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. Shipping and handling costs charged to customers are included in net sales. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, the Company does not offer extended payment terms beyond one year to customers. F - 14 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time, once the customer has obtained the legal title to the items purchased or service provided. For systems sold to rehabilitation facilities, the Company includes training and considers the elements in the arrangement to be a single performance obligation. Therefore, the Company recognizes revenue for the system and training only after delivery in accordance with the agreement's delivery terms to the customer and after the training has been completed. For sales of Personal systems to end users, and for sales of Personal or Rehabilitation systems to third party distributors, the Company does not provide training to the end user as this training is completed by the Rehabilitation centers or by the distributor that have previously completed the ReWalk Training program. Therefore, the Company recognizes revenue in such sales upon delivery. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. The Company generally does not grant a right of return for its products. In rare circumstances the Company provides a right of return of its products. In those cases, the Company records reductions to revenue for expected future product returns based on the Company’s historical experience and estimates. Disaggregation of Revenues (in thousands) Year Ended December 31, 2021 2020 2019 Units placed $ 5,449 $ 3,620 $ 4,385 Spare parts and warranties 517 773 488 Total Revenues $ 5,966 $ 4,393 $ 4,873 Units placed The Company currently offer five products: (1) ReWalk Personal, (2) ReWalk Rehabilitation, (3) ReStore, (4) MyoCycle and (5) MediTouch. ReWalk Personal and ReWalk Rehabilitation are units for spinal cord injuries (“SCI Products”). SCI Products are currently designed for everyday use by paraplegic individuals at home and in their communities, and are custom fitted for each user, as well as for use by paraplegic patients in the clinical rehabilitation environment, where they provide individuals access to valuable exercise and therapy. ReWalk Rehabilitation current design is dated and will not be produced in the future. F - 15 ReStore is a powered, lightweight soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke in the clinical rehabilitation environment. MyoCycle which uses Functional Electrical Stimulation (“FES”) technology and MediTouch tutor movement biofeedback devices (“Distributed Products”). The Company markets the Distributed Products in the United States for use at home or in clinic. Units placed include revenue from sales of SCI Products, ReStore, and Distributed Products. For units placed, the Company recognizes revenues when it transfers control and title has passed to the customer. Each unit placed is considered an independent, unbundled performance obligation. The Company also offers a rent-to-purchase model in which the Company recognizes revenue ratably according to the agreed rental monthly fee. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. Revenue is recognized when the Company satisfies a performance obligation by transferring control over promised goods or services to the customer. Each part sold is considered an independent, unbundled performance obligation. Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. In the beginning of 2018, the Company updated its service policy for SCI Products to include a five- year The ReStore device is sold with a two-year warranty which is considered as assurance type warranty. The Distributed Products are sold with assurance type warranty ranging between one year to ten years depending on the specific product and part. Contract balances (in thousands) December 31, December 31, 2021 2020 Trade receivable, net (1) $ 585 $ 684 Deferred revenues (1) (2) $ 1,182 $ 1,108 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $432 thousands of December 31, 2020 deferred revenues balance were recognized as revenues during the year ended December 31, 2021. Typical timing of payment Deferred revenue is comprised mainly of unearned revenue related to service type warranty but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service. F - 16 The Company's unfilled performance obligations as of December 31, 2021 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $1.21 million, which is fulfilled over one to five years. k. Accounting for Share-Based Compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC No. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). 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. According to Accounting Standards Update 2016-09, “Compensation-Stock Compensation (Topic 718)” (“ASU 2016-09”) the Company account for forfeitures as they occur. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its share-option awards. The option-pricing model requires a number of assumptions, of which the most significant are the fair market value of the underlying ordinary share, expected share price volatility and the expected option term. Expected volatility was calculated based upon certain peer companies that the Company considered to be comparable. The expected option term represents the period of time that options granted are expected to be outstanding. The expected option term is determined based on the simplified method in accordance with Staff Accounting Bulletin No. 110, as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. 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. F - 17 Following the IPO in September 2014, the fair value of ordinary shares is observable as they are publicly traded. The fair value of Restricted Stock Units (RSUs) granted is determined based on the price of the Company’s ordinary shares on the date of grant. The fair value for options granted in 2019 is estimated at the date of grant using a Black-Scholes-Merton option pricing model with the following assumptions: 2019 Expected volatility 57.5 % Risk-free rate 2.22 % Dividend yield — % Expected term (in years) 6.11 Share price $ 5.37 There were no options granted during the twelve months ended December 31, 2021, and 2020. The Company accounts for options granted to consultants and other service providers under ASC No. 718. The fair value of these options was estimated using a Black-Scholes-Merton option-pricing model. The non-cash compensation expenses related to employees and non-employees for the years ended December 31, 2021, 2020 and 2019 amounted to $833 thousand, $749 thousand, and $1.11 million, respectively. l. Warrants to Acquire Ordinary Shares: During the twelve-month ended December 31, 2021, and 2020, respectively, the Company issued warrants to acquire up to 15,083,611 and 11,389,555 ordinary shares. The Company assessed the warrants pursuant to ASC 480 "Distinguishing Liabilities from Equity" and ASC 815 "Derivatives and Hedging" and determine that the warrants should be accounted for as equity and not as a derivative liability. Refer to Note 8f for additional information. m. Research and Development Costs: Research and development costs are charged to the consolidated statement of operations as incurred and are presented net of the amount of any grants the Company received for research and development in the period in which the grant was received. n. Income Taxes The Company accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for 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 the amounts that are more likely-than-not to be realized. ASC No. 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% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits in its taxes on income. As of December 31, 2021, and 2020, the Company did not identify any significant uncertain tax positions. F - 18 o. Warranty: The Company provided a two-year standard warranty for its products. In the beginning of 2018, we updated our service policy for new devices sold to include five-year warranties. The Company determined that the first two years of warranty is an assurance-type warranty and records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. US Dollars in thousands Balance at December 31, 2020 $ 140 Provision 271 Usage (299 ) Balance at December 31, 2021 112 p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade receivables. The Company’s cash and cash equivalents are deposited in major banks in Israel, the United States and Germany. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. December 31, 2021 2020 Customer A 20 % * ) Customer B 18 % * ) Customer C 16 % * ) Customer D 12 % 12 % Customer E 10 % * ) Customer F * ) 15 % Customer G * ) 15 % Customer H * ) 15 % Customer I * ) 14 % Customer J * ) 11 % *) Less than 10% The Company’s trade receivables are geographically diversified and derived primarily from sales to customers in various countries, mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its distributors based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. As of December 31, 2021, and 2020 trade receivables are presented net of $42 thousand and $102 thousand allowance for doubtful accounts, respectively, and net of sales return reserve of $43 thousand and $0 thousand, respectively. F - 19 q. Accrued Severance Pay: Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. All of the employees of the RRL elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. Total Company's expenses related to severance pay amounted to $104 thousand, $125 thousand and $156 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. r. Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The three-tiers are defined as follows: • Level 1. • Level 2. • Level 3. The carrying amounts of cash and cash equivalents, short term deposits, trade receivables and trade payables approximate their fair value due to the short-term maturity of such instruments. F - 20 s. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of ordinary shares, including stock options, convertible preferred share warrants, to the extent dilutive, all in accordance with ASC No. 260, “Earning Per Share”. The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share (in thousands, except share and per share data): Year ended December 31, 2021 2020 2019 Net loss $ (12,736 ) $ (12,976 ) $ (15,551 ) Net loss attributable to ordinary shares (12,736 ) (12,976 ) (15,551 ) Shares used in computing net loss per ordinary shares, basic and diluted 47,935,652 15,764,980 5,763,317 Net loss per ordinary share, basic and diluted $ (0.27 ) $ (0.82 ) $ (2.70 ) Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of ordinary shares and warrants outstanding would have been anti-dilutive. t. Contingent liabilities The Company accounts for its contingent liabilities in accordance with ASC No. 450, “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. See Note 7e for further information. u. Government grants Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of operations during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Israel Innovation Authority, or the IIA, (formerly known as the Israeli Office of the Chief Scientist), for funding certain approved research and development projects which are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses (see Note 7c). No royalty-bearing grants were recorded for the years ended December 31, 2021, 2020, and 2019. Total Company expenses related to royalties amounted to $14 thousand, $46 thousand and $15 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. F - 21 v. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”), No. 2016-02, Leases (Topic 842), to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted the standard effective January 1, 2019. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received. Lease expense is recognized over the expected lease term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, lease liabilities current and lease liabilities non-current. As a result, the Company no longer recognizes deferred rent on the balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term. F - 22 w. New Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted i. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature and a beneficial conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (“EPS”). ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020 and can be adopted on either a fully retrospective or modified retrospective basis. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. ii. Financial Instruments In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. Topic 326 will be effective on the Company beginning on January 1, 2023. The Company is currently evaluating the impact of this new standard on its financial statements. iii. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for the Company beginning January 1, 2022. The adoption of ASU 2019-12 is not expected to result in a material impact on the Company's consolidated financial statements. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 3:- PREPAID EXPENSES AND OTHER CURRENT ASSETS The components of prepaid expenses and other current assets are as follows (in thousands): December 31, 2021 2020 Government institutions $ 207 $ 87 Prepaid expenses 335 311 Advances to vendors 5 241 Other assets 63 33 $ 610 $ 672 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4:- INVENTORIES The components of inventories are as follows (in thousands): December 31, 2021 2020 Finished products $ 2,284 $ 2,764 Raw materials 705 778 $ 2,989 $ 3,542 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5:- PROPERTY AND EQUIPMENT, NET The components of property and equipment, net are as follows (in thousands): December 31, 2021 2020 Cost: Computer equipment $ 741 $ 725 Office furniture and equipment 301 298 Machinery and laboratory equipment 620 612 Field service units 1,712 1,626 Leasehold improvements 333 333 $ 3,707 $ 3,594 December 31, 2021 2020 Accumulated depreciation 3,423 3,157 Property and equipment, net $ 284 $ 437 Depreciation expenses amounted to $266 thousand, $285 thousand, and $321 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. |
LOAN AGREEMENT WITH KREOS AND R
LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES | NOTE 6: - LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES On December 30, 2015, the Company entered into the loan agreement (the “Loan Agreement”) with Kreos Capital V (Expert Fund) Limited (“Kreos”), pursuant to which Kreos extended a line of credit to us in the amount of $20 million, with interest payable monthly in arrears on any amounts drawn down at a rate of 10.75% per year from the applicable drawdown date through the date on which all principal is repaid. As of June 30, 2017, the Company raised more than $20 million in connection with the issuance of its share capital and, therefore, in accordance with the terms of the Loan Agreement, the repayment period was extended from 24 months to 36 months. The principal was also reduced in connection with the issuance of the Kreos Convertible Note on June 9, 2017. Pursuant to the Loan Agreement, we granted Kreos a first priority security interest over all of our assets, including certain intellectual property and equity interests in its subsidiaries, subject to certain permitted security interests. Pursuant to the terms of the warrant, in connection with the $20.0 million drawdown under the Loan Agreement on January 4, 2016, we issued to Kreos the warrant to purchase up to 4,771 of our ordinary shares at an exercise price of $241.0 per share, increased to 6,679 ordinary shares on December 28, 2016. Subject to the terms of the warrant, the warrant is exercisable, in whole or in part, at any time prior to the earlier of (i) December 30, 2025, or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of us with or into, or the sale or license of all or substantially all our assets or shares to, any other entity or person, other than a wholly-owned subsidiary of us, excluding any transaction in which our shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. On June 9, 2017, the Company and Kreos entered into the First Amendment, under which $3.0 million of the outstanding principal under the Loan Agreement became subject to repayment pursuant to the senior secured Kreos Convertible Note issued on June 9, 2017. On November 20, 2018, the Company and Kreos entered into the Second Amendment of the Loan Agreement, in which the Company repaid Kreos the $3.6 million other related payments, including prepayment costs and end of loan payments, terminating the Kreos Note, by issuing to Kreos 192,000 units and 288,000 pre-funded units as part of an underwritten public offering at the public offering prices, and the parties agreed to revise the principal and the repayment schedule under the Kreos Loan. Additionally, Kreos and the Company entered into the Kreos Warrant Amendment, which amended the exercise price of the warrant to purchase 6,679 ordinary shares currently held by Kreos from $241.0 to $7.50. On June 5, 2019, and June 6, 2019, the Company entered into warrant exercise agreements with certain institutional investors of warrants to purchase the Company’s ordinary shares, pursuant to which, Kreos agreed to exercise in cash their November 2018 warrants at the existing exercise price of $7.50 per share. Under the exercise agreements, the Company also agreed to issue to Kreos new warrants to purchase up to 480,000 ordinary shares at an exercise price of $7.50 per share and exercise period of five years. On December 29, 2020, the Company repaid in full the remaining loan principal amount to Kreos including the end of loan payments, and by that discharged all of its obligations to Kreos and as of December 31, 2020, the outstanding principal amount under the Kreos Loan Agreement was zero. The Company recorded interest expense in the amount of $907 thousand during the fiscal year ended December 31, 2020. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 7:- COMMITMENTS AND CONTINGENT LIABILITIES a. Purchase commitment: The Company has contractual obligations to purchase goods from its contract manufacturer as well as raw materials from different vendors. Purchase obligations do not include contracts that may be canceled without penalty. As of December 31, 2021, non-cancelable outstanding obligations amounted to approximately $1.5 million. b. Operating lease commitment: (i) The Company operates from leased facilities in Israel, the United States and Germany. (ii) RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates in between 2022 and 2023. The Company’s future lease payments for its facilities and cars, which are presented as current maturities of operating leases and non-current operating leases liabilities on the Company’s consolidated balance sheets as of December 31, 2021 are as follows (in thousands): 2022 $ 689 2023 500 Total lease payments 1,189 Less: imputed interest (130 ) Present value of future lease payments 1,059 Less: current maturities of operating leases (641 ) Non-current operating leases $ 418 Weighted-average remaining lease term (in years) 1.74 Weighted-average discount rate 12.6 % Total rent expenses for the years ended December 31, 2021, 2020 and 2019 were $730 thousand, $764 thousand, and $739 thousand, respectively. F - 26 c. Royalties: The Company's research and development efforts are financed, in part, through funding from the IIA. Since the Company's inception through December 31, 2021, the Company received funding from the IIA in the total amount of $1.97 million. Out of the $1.97 million in funding from the IIA, a total amount of $1.57 million were royalty-bearing grants (as of December 31, 2021, the Company paid royalties to the IIA in the total amount of $99 thousand), while a total amount of $400 thousand was received in consideration of 209 convertible preferred A shares, which converted after the Company's initial public offering in September 2014 into ordinary shares in a conversion ratio of 1 to 1. The Company is obligated to pay royalties to the IIA, amounting to 3% of the sales of the products and other related revenues generated from such projects, up to 100% of the grants received. The royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the applicable products and in the absence of such sales, no payment is required. Additionally, the License Agreement requires the Company to pay Harvard royalties on net sales, see Note 9 below for more information about the Collaboration Agreement and the License Agreement. Royalties expenses in cost of revenue were $14 thousand, $46 thousand and $15 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, the contingent liability to the IIA amounted to $1.5 million. The Israeli Research and Development Law provides that know-how developed under an approved research and development program may not be transferred to third parties without the approval of the IIA. Such approval is not required for the sale or export of any products resulting from such research or development. The IIA, under special circumstances, may approve the transfer of IIA-funded know-how outside Israel, in the following cases: (a) the grant recipient pays to the IIA a portion of the sale price paid in consideration for such IIA-funded know-how or in consideration for the sale of the grant recipient itself, as the case may be, which portion will not exceed six times the amount of the grants received plus interest (or three times the amount of the grant received plus interest, in the event that the recipient of the know-how has committed to retain the R&D activities of the grant recipient in Israel after the transfer); (b) the grant recipient receives know-how from a third party in exchange for its IIA-funded know-how; (c) such transfer of IIA-funded know-how arises in connection with certain types of cooperation in research and development activities; or (d) If such transfer of know-how arises in connection with a liquidation by reason of insolvency or receivership of the grant recipient. d. Liens As part of the Company’s Restricted cash and other long-term assets, as of December 31, 2021, an amount of $713 thousand has been pledged as security in respect of a guarantee granted to a third party. Such deposit cannot be pledged to others or withdrawn without the consent of such third party. F - 27 e. Legal Claims: Occasionally, the Company is involved in various claims such as product liability claims, lawsuits, regulatory examinations, investigations, and other legal matters arising, for the most part, in the ordinary course of business. While the outcome of any pending or threatened litigation and other legal matters is inherently uncertain, the Company does not believe the outcome of any of the matters will have a material adverse effect on the Company’s consolidated results of operation, liquidity or financial condition. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8: - SHAREHOLDERS’ EQUITY a. Reverse share split: On March 27, 2019, the Company’s shareholders approved (i) a reverse share split within a range of 1:8 to 1:32, to be effective at the ratio and on a date to be determined by the Board of Directors, and (ii) amendments to the Company’s Articles of Association authorizing an increase in the Company’s authorized share capital (and corresponding authorized number of ordinary shares, proportionally adjusting such number for the reverse share split) by up to NIS 17.5 million. Following the shareholder approval, an authorized committee of the Board of Directors of the Company approved a one-for-twenty-five reverse share split of the Company’s ordinary shares, and the Company filed the Third Amended and Restated Articles of Association of the Company with the Israeli Corporations Authority to affect the reverse share split and to increase the Company’s authorized share capital after the effect of the reverse share split. The reverse share split became effective on April 1, 2019. Additionally, effective at the same time, the total number of ordinary shares the Company is authorized to issue changed from 250,000,000 shares to 60,000,000 shares, the par value per share of the ordinary shares changed to NIS 0.25 and the authorized share capital of the Company changed from NIS 2,500,000 to NIS 15,000,000. All share and per share data included in these consolidated financial statements, for periods before December 31, 2019, give retroactive effect to the reverse stock split. Upon the effectiveness of the reverse share split, every twenty-five 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 down to the nearest whole number. F - 29 b. Equity raise: 1. Follow-on offerings In February 2019, the Company entered into an exclusive placement agent agreement with H.C. Wainwright, on a reasonable best-efforts basis in connection with a public offering of 760,000 ordinary shares at a price of $5.75 per share. The total gross proceeds received from the February 2019 follow-on public offering, before deducting commissions, discounts, and expenses, were $4.37 million. The Company also issued to H.C Wainwright and/or its designees warrants to purchase up to 45,600 ordinary shares, which are immediately exercisable starting on February 25, 2019, until February 21, 2024 at $7.1875 per share. In April 2019, the Company entered into securities purchase agreements with certain institutional purchasers whereby the Company issued 816,914 ordinary shares at $5.2025 per ordinary share and warrants to purchase up to 408,457 ordinary shares with an exercise price of $5.14 per share, exercisable from April 5, 2019 until October 7, 2024, in a private placement that took place concurrently with the Company’s registered direct offering of ordinary shares in April 2019. Additionally, the Company issued warrants to purchase up to 49,015 ordinary shares, with an exercise price of $6.503125 per share, exercisable from April 5, 2019 until April 3, 2024, to representatives of H.C. Wainwright as compensation for its role as the placement agent in the Company’s April 2019 registered direct offering and concurrent private placement of warrants. On June 5, 2019, and June 6, 2019, the Company entered into warrant exercise agreements with certain institutional investors whereby the Company issued warrants to purchase up to 1,464,665 ordinary shares with an exercise price of $7.50 per share, exercisable from June 5, 2019 or June 6, 2019 until June 5, 2024 or June 6, 2024, respectively. Additionally, the Company issued warrants to purchase up to 87,880 ordinary shares, with an exercise price of $9.375 per share, exercisable from June 5, 2019, until June 5, 2024, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in the Company’s June 2019 warrant exercise agreement and concurrent private placement of warrants. On June 12, 2019, the Company entered into a purchase agreement with certain institutional investors for the issuance and sale of 833,334 ordinary shares, par value NIS 0.25 per share at $6.00 per ordinary share and warrants to purchase up to 416,667 ordinary shares with an exercise price of $6.00 per share, exercisable from June 12, 2019 until December 12, 2024, in a private placement that took place concurrently with the Company’s registered direct offering of ordinary shares in June 2019. Additionally, the Company issued warrants to purchase up to 50,000 ordinary shares, with an exercise price of $7.50 per share, exercisable from June 12, 2019, until June 10, 2024, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in the Company’s June 2019 registered direct offering and concurrent private placement of warrants. On February 10, 2020, the Company closed a “best efforts” public offering whereby the Company issued an aggregate of 5,600,000 of common units and pre-funded units at a public offering price of $1.25 per common unit and $1.249 per pre-funded unit. As part of the public offering, the Company entered into a securities purchase agreement with certain institutional purchasers. Each common unit consisted of one ordinary share, par value NIS 0.25 per share, and one common warrant to purchase one ordinary share. Each of the 1,546,828 pre-funded unit consisted of one pre-funded warrant to purchase one ordinary share and one common warrant. Additionally, the Company issued warrants to purchase up to 336,000 ordinary shares, with an exercise price of $1.5625 per share, to representatives of H.C. Wainwright as compensation for its role as the placement agent in the Company’s February 2020 offering. During the three months ended March 31, 2020, all pre-funded warrants to purchase ordinary shares were exercised. As of December 31, 2021, a total of 5,571,600 common warrants to purchase ordinary shares were exercised, additionally 230,160 common warrants to purchase ordinary shares were exercised to representatives of H.C. Wainwright. F - 30 On July 6, 2020, the Company entered into a purchase agreement with certain institutional investors for the issuance and sale of (i) 4,938,278 ordinary shares, par value NIS 0.25 per share, at a price of $1.8225 per ordinary share and (ii) warrants to purchase up to 2,469,139 ordinary shares with an exercise price of $1.76 per share, exercisable from July 6, 2020, until January 6, 2026. Additionally, the Company issued warrants to purchase up to 296,297 ordinary shares, with an exercise price of $2.2781 per share, exercisable from July 6, 2020, until July 2, 2025, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in its July 2020 registered direct offering. As of December 31, 2021, a total of 2,020,441 common warrants to purchase ordinary shares were exercised. On December 3, 2020, the Company entered into a purchase agreement with certain institutional investors for the issuance and sale of (i) 5,579,776 ordinary shares, par value NIS 0.25 per share, at a price of $1.4337 per ordinary share and (ii) warrants to purchase up to 4,184,832 ordinary shares with an exercise price of $1.34 per share, exercisable from December 8, 2020, until June 8, 2026. Additionally, the Company issued warrants to purchase up to 334,787 ordinary shares, with an exercise price of $1.7922 per share, exercisable from December 8, 2020, until June 8, 2026, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in its December 2020 registered direct offering. As of December 31, 2021, a total of 3,598,072 common warrants to purchase ordinary shares were exercised, additionally 225,981 common warrants to purchase ordinary shares were exercised to representatives of H.C. Wainwright. On February 19, 2021, the Company entered into a purchase agreement with certain institutional and other accredited investors for the issuance and sale of 10,921,502 ordinary shares, par value NIS 0.25 per share at $3.6625 per ordinary share and warrants to purchase up to an aggregate of 5,460,751 ordinary shares with an exercise price of $3.6 per share, exercisable from February 19, 2021, until August 26, 2026. Additionally, the Company issued warrants to purchase up to 655,290 ordinary shares, with an exercise price of $4.578125 per share, exercisable from February 19, 2021, until August 26, 2026, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in our February 2021 private placement offering. On September 27, 2021, the Company signed a purchase agreement with certain institutional investors for the issuance and sale of 15,403,014 ordinary shares, par value NIS 0.25 per share, pre-funded warrants to purchase up to an aggregate of 610,504 ordinary shares and ordinary warrants to purchase up to an aggregate of 8,006,759 ordinary shares at an exercise price of $2.00 per share. The Pre-Funded Warrants have an exercise price of $0.001 per Ordinary Share and are immediately exercisable and can be exercised at any time after their original issuance until such pre-funded warrants are exercised in full. Each ordinary shares was sold at an offering price of $2.035 and each pre-funded warrant was sold at an offering price of $2.034 (equal to the purchase price per ordinary share minus the exercise price of the pre-funded warrant). The offering of the ordinary shares, the pre-funded warrants and the ordinary shares that are issuable from time to time upon exercise of the pre-funded warrants was made pursuant to the Company's shelf registration statement on Form S-3 initially filed with the Securities and Exchange Commission (“SEC”) on May 9, 2019, and declared effective by the SEC on May 23, 2019, and the ordinary warrants were issued in a concurrent private placement. The ordinary warrants are exercisable at any time and from time to time, in whole or in part, following the date of issuance and ending five and one-half years from the date of issuance. All of the pre-funded warrants were exercised in full on September 27, 2021, and the offering closed on September 29, 2021. Additionally, the Company issued warrants to purchase up to 960,811 ordinary shares, with an exercise price of $2.5438 per share, exercisable from September 27, 2021, until September 27, 2026, to certain representatives of H.C. Wainwright as compensation for its role as the placement agent in our September 2021 registered direct offering. During the twelve months ended December 31, 2021, we received a total of 9,814,754 outstanding warrants exercises with exercise prices ranging from $1.25 to $1.79 were exercised, for total gross proceeds of approximately $13.8 million. F - 31 c. Share option plans: On March 30, 2012, the Company’s board of directors adopted the ReWalk Robotics Ltd. 2012 Equity Incentive Plan. On August 19, 2014, the Company’s board of directors adopted the ReWalk Robotics Ltd. 2014 Incentive Compensation Plan or the “Plan”. The Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, cash-based awards, other stock-based awards and dividend equivalents to the Company’s and its affiliates’ respective employees, non-employee directors and consultants. Starting in 2014, the Company grants to directors and employees also Restricted Stock Units (“RSUs’’) under this Plan. An RSU award is an agreement to issue shares of the company’s ordinary shares at the time the award is vested. As of December 31, 2021 and 2020, the Company had reserved 233,957 and 604,320 shares of ordinary shares, respectively, available for issuance to employees, directors, officers, and non-employees of the Company. F - 32 The options generally vest over four years, with certain options granted to non-employee directors during the fiscal year ended December 31, 2019, vesting over one year. Any option or RSUs that are forfeited or canceled before expiration becomes available for future grants under the Plan. A summary of employee and non-employee shares options activity during the fiscal year ended 2021 is as follows: Number Average exercise price Average remaining contractual life (years) Aggregate intrinsic value (in thousands) Options outstanding at the beginning of the year 69,606 $ 37.9 5.59 $ — Granted — — — — Exercised — — — — Forfeited (7,774 ) 34.68 — — Options outstanding at the end of the year 61,832 $ 38.34 4.55 $ — Options exercisable at the end of the year 55,747 $ 41.09 4.30 $ — A summary of employee and non-employee RSUs activity during the fiscal year ended 2021 is as follows: Number of shares underlying outstanding RSUs Weighted- average grant date fair value Unvested RSUs at the beginning of the year 1,251,311 1.69 Granted 721,216 1.69 Vested (398,164 ) 1.74 Forfeited (218,079 ) 1.50 Unvested RSUs at the end of the year 1,356,284 1.61 The weighted average grant date fair values of options granted during the fiscal year ended December 31, 2019, were $2.98, there were no options granted during the fiscal year ended December 31, 2021, and 2020. The weighted average grant date fair values of RSUs granted during the fiscal year ended December 31, 2021, 2020 and 2019, were $1.69, $1.44 and $4.67, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders, which hold options with positive intrinsic value, exercised their options on the last date of the exercise period. During the years ended December 31, 2021, 2020 and 2019, no options were exercised. Total fair value of shares vested during the year ended December 31, 2021, 2020 and 2019 were $802 thousand, $676 thousand, and $1.18 million, respectively. As of December 31, 2021, there were $1.8 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2014 Plan. This cost is expected to be recognized over a period of approximately 2.8 years. F - 33 The number of options and RSUs outstanding as of December 31, 2021 is set forth below, with options separated by range of exercise price: Range of exercise price Options and RSUs Outstanding as of December 31, 2021 Weighted average remaining contractual life (years) (1) Options Exercisable as of December 31, 2021 Weighted average remaining contractual life (years) (1) RSUs only 1,356,284 — — — $5.37 12,425 7.24 8,542 7.24 $20.42- $33.75 31,155 4.08 28,953 3.91 $37.14-$38.75 8,946 1.98 8,946 1.98 $50-$52.5 6,731 5.46 6,731 5.46 $182.5-$524.25 2,575 3.85 2,575 3.85 1,418,116 4.55 55,747 4.30 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. d. Equity compensation issued to consultants: The Company granted 6,680 fully vested RSUs during the fiscal year ended December 31, 2019, to non-employee consultants. As of December 31, 2021, there are no outstanding options or RSUs held by non-employee consultants. e. Share-based compensation expense for employees and non-employees: The Company recognized non-cash share-based compensation expense in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cost of revenues $ 10 $ 8 $ 13 Research and development, net 55 136 204 Sales and marketing, net 171 163 166 General and administrative 597 442 725 Total $ 833 $ 749 $ 1,108 F - 34 f. Warrants to purchase ordinary shares: The following table summarizes information about warrants outstanding and exercisable as of December 31, 2021: Issuance date Warrants outstanding Exercise price per warrant Warrants outstanding and exercisable Contractual term (number) (number) December 31, 2015 (1) 4,771 $ 7.500 4,771 See footnote (1) December 28, 2016 (2) 1,908 $ 7.500 1,908 See footnote (1) November 20, 2018 (3) 126,839 $ 7.500 126,839 November 20, 2023 November 20, 2018 (4) 106,680 $ 9.375 106,680 November 15, 2023 February 25, 2019 (5) 45,600 $ 7.187 45,600 February 21, 2024 April 5, 2019 (6) 408,457 $ 5.140 408,457 October 7, 2024 April 5, 2019 (7) 49,015 $ 6.503 49,015 April 3, 2024 June 5, 2019, and June 6, 2019 (8) 1,464,665 $ 7.500 1,464,665 June 5, 2024 June 5, 2019 (9) 87,880 $ 9.375 87,880 June 5, 2024 June 12, 2019 (10) 416,667 $ 6.000 416,667 December 12, 2024 June 10, 2019 (11) 50,000 $ 7.500 50,000 June 10, 2024 February 10, 2020 (12) 28,400 $ 1.250 28,400 February 10, 2025 February 10, 2020 (13) 105,840 $ 1.563 105,840 February 10, 2025 July 6, 2020 (14) 448,698 $ 1.760 448,698 January 2, 2026 July 6, 2020 (15) 296,297 $ 2.278 296,297 January 2, 2026 December 8, 2020 (16) 586,760 $ 1.340 586,760 June 8, 2026 December 8, 2020 (17) 108,806 $ 1.792 108,806 June 8, 2026 February 26, 2021 (18) 5,460,751 $ 3.600 5,460,751 August 26, 2026 February 26, 2021 (19) 655,290 $ 4.578 655,290 August 26, 2026 September 29, 2021 (20) 8,006,759 $ 2.000 8,006,759 March 29, 2027 September 29, 2021 (21) 960,811 $ 2.544 960,811 September 27, 2026 19,420,894 19,420,894 (1) Represents warrants for ordinary shares issuable upon an exercise price of $7.500 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited (“Kreos”) in connection with a loan made by Kreos to the Company and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly owned subsidiary of the Company, excluding any transaction in which the Company’s shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of December 31, 2021. (2) Represents common warrants that were issued as part of the $8.0 million drawdown under the Loan Agreement which occurred on December 28, 2016. See footnote 1 for exercisability terms. (3) Represents common warrants that were issued as part of the Company’s follow-on public offering in November 2018. (4) Represents common warrants that were issued to the underwriters as compensation for their role in the Company’s follow-on public offering in November 2018. (5) Represents warrants that were issued to the exclusive placement agent as compensation for its role in the Company’s follow-on public offering in February 2019. F - 35 (6) Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s registered direct offering of ordinary shares in April 2019. (7) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s April 2019 registered direct offering. (8) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019, and June 6, 2019, respectively. (9) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 warrant exercise agreement and concurrent private placement of warrants. (10) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. (11) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 registered direct offering and concurrent private placement of warrants. (12) Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s best efforts offering of ordinary shares in February 2020. During the year ended December 31, 2021, 3,740,100 warrants were exercised for total consideration of $4,675,125. (13) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2020 best efforts offering. During the year ended December 31, 2021, 230,160 warrants were exercised for total consideration of $359,625. (14) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in July 2020. During the year ended December 31, 2021, 2,020,441 warrants were exercised for total consideration of $3,555,976. (15) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s July 2020 registered direct offering. (16) Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in December 2020. During the year ended December 31, 2021, 3,598,072 warrants were exercised for total consideration of $4,821,416. (17) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s December 2020 private placement. During the year ended December 31, 2021, 225,981 warrants were exercised for total consideration of $405,003. (18) Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in February 2021. (19) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2021 private placement. (20) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in September 2021. (21) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s September 2021 registered direct offering. |
RESEARCH COLLABORATION AGREEMEN
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT | NOTE 9:- RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT On May 16, 2016, the Company entered into a Research Collaboration Agreement (“Collaboration Agreement”) and an Exclusive License Agreement (“License Agreement”) with Harvard. The Research Collaboration Agreement was amended on May 1, 2017, and April 1, 2018 (as amended, the “Collaboration Agreement”), and the Exclusive License Agreement was amended on April 1, 2018 (as amended, the “License Agreement”), to extend the term of the Collaboration Agreement by one year to May 16, 2022 and reallocate the Company’s quarterly installment payments to Harvard through such date, and to make certain technical changes. On April 30, 2020, the Company and Harvard amended the Collaboration Agreement, which included certain adjustments to the quarterly installments and extended the term an additional three quarters until February 2023. On October 14, 2021, the Company and Harvard further amended the Collaboration Agreement, to make certain adjustments to the quarterly installments and technical changes and establish that the term of the Collaboration Agreement will conclude on March 31, 2022. The Company and Harvard might consider new arrangement to support our research efforts in the future. Under the Collaboration Agreement, Harvard and the Company have agreed to collaborate on research regarding the development of lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, which are intended to treat stroke, multiple sclerosis, mobility limitations for the elderly and other medical applications. The Company has committed to pay in quarterly installments for the funding of this research. Under the License Agreement, Harvard has granted the Company an exclusive, worldwide royalty-bearing license under certain patents of Harvard relating to lightweight “soft suit” exoskeleton system technologies for lower limb disabilities, a royalty-free license under certain related know-how and the option to obtain a license under certain inventions conceived under the joint research collaboration. The License Agreement required the Company to pay Harvard an upfront fee, reimbursements for expenses that Harvard incurred in connection with the licensed patents, royalties on net sales and several milestone payments contingent upon the achievement of certain product development and commercialization milestones. The Harvard License Agreement will continue in full force and effect until the expiration of the last-to-expire valid claim of the licensed patents. As of December 31, 2021, the Company achieved three of the milestones which represent all development milestones under the License Agreement. The Company continues to evaluate the likelihood that the other milestones will be achieved on a quarterly basis. The Company has recorded expenses in the amount of $293 thousand, $762 thousand, and $1.6 million for the years ended December 31, 2021, 2020, and 2019, respectively, as research and development expenses related to the Harvard License Agreement and to the Collaboration Agreement. No withholding tax was deducted from the Company’s payments to Harvard in respect of the Collaboration Agreement and License Agreement since this is not taxable income in Israel in accordance with Section 170 of the Israel Income Tax Ordinance 1961-5721. |
PAYCHECK PROTECTION PROGRAM LOA
PAYCHECK PROTECTION PROGRAM LOAN | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
PAYCHECK PROTECTION PROGRAM LOAN | NOTE 10: - PAYCHECK PROTECTION PROGRAM LOAN On April 21, 2020, RRI received an unsecured loan in the principal amount of $392 thousand under the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration, or the SBA, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), or the PPP loan. The terms of the PPP Loan were subsequently revised in accordance with the provisions of the Paycheck Protection Flexibility Act of 2020, or the PPP Flexibility Act, which was enacted on June 5, 2020. The PPP loan provides for an interest rate of 1.00% per year and matures two years after the date of initial disbursement, with initial principal and interest payments coming due late in fiscal 2021. The PPP loan may be used for payroll costs, costs related to certain group health care benefits and insurance premiums, rent payments, utility payments, mortgage interest payments and interest payments on any other debt obligation that were incurred before February 15, 2020. Under the terms of the CARES Act and the PPP Flexibility Act, the Company may apply for and be granted forgiveness for all or a portion of loan granted under the PPP loan, with such forgiveness to be determined, subject to limitations (including where employees of the Company have been terminated and not re-hired by a certain date), based on the use of the loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. The terms of any forgiveness may also be subject to further requirements in regulations and guidelines adopted by the SBA. On September 29, 2020, the Company applied for loan forgiveness and on November 6, 2020, the Company received confirmation of its PPP Note forgiveness. Forgiveness is booked as other income within the marketing and sales expenses because it was granted and used for payroll, rent, and utility costs related to sales efforts. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11: - INCOME TAXES The Company’s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. a. Corporate tax rates in Israel: Presented hereunder are the tax rates relevant to the Company in the years 2019-2021: The Israeli statutory corporate tax rate and real capital gains were 23% in the years 2019-2021. b. Income (loss) before taxes on income is comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ (12,780 ) $ (12,992 ) $ (15,599 ) Foreign 138 67 55 $ (12,642 ) $ (12,925 ) $ (15,544 ) F - 38 c. Taxes on income are comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current $ 123 $ 95 $ 64 Deferred (29 ) (44 ) (57 ) $ 94 $ 51 $ 7 Year Ended December 31, 2021 2020 2019 Domestic $ — $ — $ — Foreign 94 51 7 $ 94 $ 51 $ 7 d. Deferred income taxes (in thousands): 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. The Company’s deferred tax assets as of December 31, 2021 and 2020 are derived from temporary differences. In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. Based on the Company’s history of losses, the Company established a full valuation allowance for RRL. Undistributed earnings of certain subsidiaries as of December 31, 2021 were immaterial. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. As a result, the Company has not provided for any deferred income taxes. December 31, 2021 2020 Deferred tax assets: Carry forward tax losses $ 47,323 $ 41,941 Research and development carry forward expenses-temporary differences 718 946 Accrual and reserves 373 341 Lease liabilities 261 390 Total deferred tax assets 48,675 43,618 Deferred tax liabilities: Right-of-use asset (261 ) (390 ) Net deferred tax assets 48,414 43,228 Valuation allowance (48,098 ) (42,941 ) Net deferred tax assets $ 316 $ 287 F - 39 The net changes in the total valuation allowance for each of the years ended December 31, 2021, 2020 and 2019, are comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ (42,941 ) $ (36,392 ) $ (29,655 ) Changes due to exchange rate differences (1,488 ) (2,929 ) (2,055 ) Adjustment previous year loss — — (735 ) Additions during the year (3,669 ) (3,620 ) (3,947 ) Balance at end of year $ (48,098 ) $ (42,941 ) $ (36,392 ) e. Reconciliation of the theoretical tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Loss before taxes, as reported in the consolidated statements of operations $ (12,642 ) $ (12,925 ) $ (15,544 ) Statutory tax rate 23.0 % 23.0 % 23.0 % Theoretical tax benefits on the above amount at the Israeli statutory tax rate $ (2,908 ) $ (2,973 ) $ (3,575 ) Income tax at rate other than the Israeli statutory tax rate 7 3 (1 ) Non-deductible expenses including equity-based compensation expenses and other 102 185 255 Operating losses and other temporary differences for which valuation allowance was provided 3,669 3,620 3,947 Permanent differences (784 ) (706 ) (651 ) Other 8 (78 ) 32 Actual tax expense $ 94 $ 51 $ 7 f. Foreign tax rates: Taxable income of RRI was subject to tax at the rate of 21% in 2021, 2020 and 2019. Taxable income of RRG was subject to tax at the rate of 30% in 2021, 2020, and 2019. g. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”): Conditions for entitlement to the benefits: Under the Investment Law, in 2012 the Company elected “Beneficiary Enterprise” status which provides certain benefits, including tax exemptions and reduced tax rates. Income not eligible for Beneficiary Enterprise benefits is taxed at a regular rate. F - 40 Income derived from Beneficiary Enterprise from productive activity will be exempt from tax for ten years from the year in which the Company first has taxable income, providing that 12 years have not passed from the beginning of the year of election. In the event of a dividend distribution from income that is exempt from company tax, as aforementioned, the Company will be required to pay tax of 10%-25% on that income. In the event of distribution of dividends from the said tax-exempt income, the amount distributed will be subject to corporate tax at the rate ordinarily applicable to the Beneficiary Enterprise’s income. Tax-exempt income generated under the Company’s “Beneficiary Enterprise” program will be subject to taxes upon dividend distribution or complete liquidation. The entitlement to the above benefits is conditional upon the Company’s fulfilling the conditions stipulated by the Law and regulations published thereunder. On December 29, 2010, the Knesset approved an additional amendment to the Law for the Encouragement of Capital Investments, 1959. According to the amendment, a reduced uniform corporate tax rate for exporting industrial enterprises (over 25%) was established. The reduced tax rate will not be program dependent and will apply to the industrial enterprise’s entire income. The tax rates for industrial enterprises have been reduced. In August 2013, the Israeli Knesset approved an amendment to the Investment Law, pursuant to which the rates for development area A will be 9% and for the rest of the country- 16% in 2014 and thereafter. The Amendment also prescribes that any dividends distributed to individuals or foreign residents from a preferred enterprise’s earnings as above will be subject to taxes at a rate of 20% (subject to tax treaty benefits) In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the Amendment”) was published. According to the Amendment, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 (and thereafter the tax rate applicable to preferred enterprises located in other areas remains at 16%). The Company has examined the effect of the adoption of the Amendment on its financial statements, and as of the date of the publication of the financial statements, the Company estimates that it will not apply the Amendment. The Company’s estimate may change in the future. h. Tax assessments: RRL has had final tax assessments up to and including the 2016 tax year. Each RRI and RRG have not had a final tax assessment since its inception. i. Net operating carry-forward losses for tax purposes: As of December 31, 2021, RRL has carry-forward losses amounting to approximately $205.8 million, which can be carried forward for an indefinite period, and RRI has carry-forward losses amounting to approximately $74 thousands, which can be carried forward for a period of 20 years. |
FINANCIAL EXPENSES (INCOME), NE
FINANCIAL EXPENSES (INCOME), NET | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
FINANCIAL EXPENSES (INCOME), NET | NOTE 12: - FINANCIAL EXPENSES (INCOME), NET The components of financial expenses (income), net were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Foreign currency transactions and other $ (38 ) $ (9 ) $ (34 ) Financial expenses related to loan agreement with Kreos — 907 1,499 Bank commissions 25 23 31 $ (13 ) $ 921 $ 1,496 |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | NOTE 13: - GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Summary information about geographic areas: ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment and derives revenues from selling systems and services (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas (in thousands): Year Ended December 31, 2021 2020 2019 Revenues based on customer’s location: Israel $ — $ — $ 2 United States 2,519 1,746 2,003 Europe 3,381 2,631 2,832 Asia-Pacific 60 8 36 Latin America — 6 — Africa 6 2 — Total revenues $ 5,966 $ 4,393 $ 4,873 December 31, 2021 2020 Long-lived assets by geographic region: Israel $ 629 $ 953 United States 493 790 Germany 43 43 $ 1,165 $ 1,786 (*) Long-lived assets are comprised of property and equipment, net, and operating lease right-of-use assets. F - 42 Major customers data as a percentage of total revenues: Year Ended December 31, 2021 2020 2019 Customer A 11.0 % * ) * ) Customer B * ) 10.0 % 15.0 % *) Less than 10% |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | a. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues 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 inventories, fair values of share-based awards and warrants, contingent liabilities, provision for warranty, allowance for doubtful account and sales return reserve. 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: Since 2015, most of the Company’s expenses were denominated in United States dollars (“dollars”) and the remaining expenses were denominated in New Israeli Shekel (“NIS”) and Euros. Until 2018 most of the Company’s revenues were denominated in U.S. dollars and the remainder of our revenues was denominated in Euros and British pound whereas in the last three years our Euro revenues are higher than the ones in dollars. However, the selling prices are linked to the Company’s price list which is determined in dollars, the budget is managed in dollars, financing activities including loans and fundraising activities, are made in U.S. dollars and the Company’s management believes that the dollar is the primary currency of the economic environment in which the Company and each of its subsidiaries operate. Thus, the dollar is the Company’s and its subsidiaries’ functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are re-measured to the functional currency in accordance with Accounting Standards Codification (“ASC”) No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the relevant reporting period. At the end of each reporting period, financial assets and liabilities are re-measured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are re-measured at historical exchange rates. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statements of operations. |
Principles of Consolidation | c. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, RRI and RRG. All intercompany transactions and balances 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 the date acquired. |
Inventories | e. Inventories: Inventories are stated at the lower of cost or market value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company periodically evaluates the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its market value. Cost is determined as follows: Finished products - on the basis of raw materials and manufacturing costs on an average basis. Raw materials - The weighted average cost method. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors, including historical usage rates and forecasted sales according to outstanding backlogs. Purchasing requirements and alternative usage are explored within these processes to mitigate inventory exposure. When recorded, the reserves are intended to reduce the carrying value of inventory to its net realizable value. In the years ended December 31, 2021, 2020 and 2019, the Company wrote off inventory in the amount of $252 thousand, $215 thousand, and $64 thousand, respectively. The write off inventory were recorded in cost of revenue. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory reserves may be required. |
Balances and transactions with related parties | f. Balances and transactions with related parties: The Company has a related party shareholder named Yaskawa Electric Corporation (“YEC”). In September 2013, the Company entered into a share purchase agreement and a strategic alliance with YEC, pursuant to which YEC has agreed to distribute the Company’s products, in addition to providing sales, marketing, service and training functions, in Japan, China (including Hong-Kong and Macau), Taiwan, South Korea, Singapore and Thailand. As of December 31, 2021, and 2020, there have been no related party receivable with YEC . Revenues from YEC during the years ended December 31, 2021, 2020, and 2019 amounted to $0 thousand, $0 thousand and $41 thousand, respectively. |
Property and Equipment | g. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 20-33 (mainly 33) Office furniture and equipment 6 - 10 (mainly 10) Machinery and laboratory equipment 15 Field service units 50 Leasehold improvements Over the shorter of the lease term or estimated useful life |
Impairment of Long-Lived Assets | h. Impairment of Long-Lived Assets: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2021, 2020 and 2019, no impairment losses have been recorded. |
Restricted cash and Other long term assets | i. Restricted cash and Other long-term assets: Other long-term assets include long-term prepaid expenses and restricted cash deposits for offices and cars leasing based upon the term of the remaining restrictions. |
Revenue Recognition | j. Revenue Recognition: The Company generates revenues from sales of products. The Company sells its products directly to end customers and through distributors. The Company sells its products to private individuals (who finance the purchases by themselves, through fundraising or reimbursement coverage from insurance companies), rehabilitation facilities and distributors. F - 13 The Company recognized revenue in accordance with ASC Topic 606 when, or as, control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five steps: 1. Identify the contract with a customer The Company generally considers purchase order or a signed quote, to be contracts with customers. In evaluating the contract with a customer, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration. 2. Identify the performance obligations in the contract At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. Shipping and handling costs charged to customers are included in net sales. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, the Company does not offer extended payment terms beyond one year to customers. F - 14 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time, once the customer has obtained the legal title to the items purchased or service provided. For systems sold to rehabilitation facilities, the Company includes training and considers the elements in the arrangement to be a single performance obligation. Therefore, the Company recognizes revenue for the system and training only after delivery in accordance with the agreement's delivery terms to the customer and after the training has been completed. For sales of Personal systems to end users, and for sales of Personal or Rehabilitation systems to third party distributors, the Company does not provide training to the end user as this training is completed by the Rehabilitation centers or by the distributor that have previously completed the ReWalk Training program. Therefore, the Company recognizes revenue in such sales upon delivery. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. The Company generally does not grant a right of return for its products. In rare circumstances the Company provides a right of return of its products. In those cases, the Company records reductions to revenue for expected future product returns based on the Company’s historical experience and estimates. Disaggregation of Revenues (in thousands) Year Ended December 31, 2021 2020 2019 Units placed $ 5,449 $ 3,620 $ 4,385 Spare parts and warranties 517 773 488 Total Revenues $ 5,966 $ 4,393 $ 4,873 Units placed The Company currently offer five products: (1) ReWalk Personal, (2) ReWalk Rehabilitation, (3) ReStore, (4) MyoCycle and (5) MediTouch. ReWalk Personal and ReWalk Rehabilitation are units for spinal cord injuries (“SCI Products”). SCI Products are currently designed for everyday use by paraplegic individuals at home and in their communities, and are custom fitted for each user, as well as for use by paraplegic patients in the clinical rehabilitation environment, where they provide individuals access to valuable exercise and therapy. ReWalk Rehabilitation current design is dated and will not be produced in the future. F - 15 ReStore is a powered, lightweight soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke in the clinical rehabilitation environment. MyoCycle which uses Functional Electrical Stimulation (“FES”) technology and MediTouch tutor movement biofeedback devices (“Distributed Products”). The Company markets the Distributed Products in the United States for use at home or in clinic. Units placed include revenue from sales of SCI Products, ReStore, and Distributed Products. For units placed, the Company recognizes revenues when it transfers control and title has passed to the customer. Each unit placed is considered an independent, unbundled performance obligation. The Company also offers a rent-to-purchase model in which the Company recognizes revenue ratably according to the agreed rental monthly fee. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. Revenue is recognized when the Company satisfies a performance obligation by transferring control over promised goods or services to the customer. Each part sold is considered an independent, unbundled performance obligation. Warranties are classified as either assurance type or service type warranty. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended for a limited period of time. In the beginning of 2018, the Company updated its service policy for SCI Products to include a five- year The ReStore device is sold with a two-year warranty which is considered as assurance type warranty. The Distributed Products are sold with assurance type warranty ranging between one year to ten years depending on the specific product and part. Contract balances (in thousands) December 31, December 31, 2021 2020 Trade receivable, net (1) $ 585 $ 684 Deferred revenues (1) (2) $ 1,182 $ 1,108 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $432 thousands of December 31, 2020 deferred revenues balance were recognized as revenues during the year ended December 31, 2021. Typical timing of payment Deferred revenue is comprised mainly of unearned revenue related to service type warranty but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service. F - 16 The Company's unfilled performance obligations as of December 31, 2021 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $1.21 million, which is fulfilled over one to five years. |
Accounting for Share-Based Compensation | k. Accounting for Share-Based Compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC No. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). 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. According to Accounting Standards Update 2016-09, “Compensation-Stock Compensation (Topic 718)” (“ASU 2016-09”) the Company account for forfeitures as they occur. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its share-option awards. The option-pricing model requires a number of assumptions, of which the most significant are the fair market value of the underlying ordinary share, expected share price volatility and the expected option term. Expected volatility was calculated based upon certain peer companies that the Company considered to be comparable. The expected option term represents the period of time that options granted are expected to be outstanding. The expected option term is determined based on the simplified method in accordance with Staff Accounting Bulletin No. 110, as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. 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. F - 17 Following the IPO in September 2014, the fair value of ordinary shares is observable as they are publicly traded. The fair value of Restricted Stock Units (RSUs) granted is determined based on the price of the Company’s ordinary shares on the date of grant. The fair value for options granted in 2019 is estimated at the date of grant using a Black-Scholes-Merton option pricing model with the following assumptions: 2019 Expected volatility 57.5 % Risk-free rate 2.22 % Dividend yield — % Expected term (in years) 6.11 Share price $ 5.37 There were no options granted during the twelve months ended December 31, 2021, and 2020. The Company accounts for options granted to consultants and other service providers under ASC No. 718. The fair value of these options was estimated using a Black-Scholes-Merton option-pricing model. The non-cash compensation expenses related to employees and non-employees for the years ended December 31, 2021, 2020 and 2019 amounted to $833 thousand, $749 thousand, and $1.11 million, respectively. |
Warrants to Acquire Ordinary Shares | l. Warrants to Acquire Ordinary Shares: During the twelve-month ended December 31, 2021, and 2020, respectively, the Company issued warrants to acquire up to 15,083,611 and 11,389,555 ordinary shares. The Company assessed the warrants pursuant to ASC 480 "Distinguishing Liabilities from Equity" and ASC 815 "Derivatives and Hedging" and determine that the warrants should be accounted for as equity and not as a derivative liability. Refer to Note 8f for additional information. |
Research and Development Costs | m. Research and Development Costs: Research and development costs are charged to the consolidated statement of operations as incurred and are presented net of the amount of any grants the Company received for research and development in the period in which the grant was received. |
Income Taxes | n. Income Taxes The Company accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for 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 the amounts that are more likely-than-not to be realized. ASC No. 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% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits in its taxes on income. As of December 31, 2021, and 2020, the Company did not identify any significant uncertain tax positions. |
Warranty | o. Warranty: The Company provided a two-year standard warranty for its products. In the beginning of 2018, we updated our service policy for new devices sold to include five-year warranties. The Company determined that the first two years of warranty is an assurance-type warranty and records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. US Dollars in thousands Balance at December 31, 2020 $ 140 Provision 271 Usage (299 ) Balance at December 31, 2021 112 |
Concentrations of Credit Risks | p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade receivables. The Company’s cash and cash equivalents are deposited in major banks in Israel, the United States and Germany. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. December 31, 2021 2020 Customer A 20 % * ) Customer B 18 % * ) Customer C 16 % * ) Customer D 12 % 12 % Customer E 10 % * ) Customer F * ) 15 % Customer G * ) 15 % Customer H * ) 15 % Customer I * ) 14 % Customer J * ) 11 % *) Less than 10% The Company’s trade receivables are geographically diversified and derived primarily from sales to customers in various countries, mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its distributors based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. As of December 31, 2021, and 2020 trade receivables are presented net of $42 thousand and $102 thousand allowance for doubtful accounts, respectively, and net of sales return reserve of $43 thousand and $0 thousand, respectively. |
Accrued Severance Pay | q. Accrued Severance Pay: Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. All of the employees of the RRL elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. Total Company's expenses related to severance pay amounted to $104 thousand, $125 thousand and $156 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. |
Fair Value Measurements | r. Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The three-tiers are defined as follows: • Level 1. • Level 2. • Level 3. The carrying amounts of cash and cash equivalents, short term deposits, trade receivables and trade payables approximate their fair value due to the short-term maturity of such instruments. |
Basic and Diluted Net Loss Per Share | s. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of ordinary shares, including stock options, convertible preferred share warrants, to the extent dilutive, all in accordance with ASC No. 260, “Earning Per Share”. The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share (in thousands, except share and per share data): Year ended December 31, 2021 2020 2019 Net loss $ (12,736 ) $ (12,976 ) $ (15,551 ) Net loss attributable to ordinary shares (12,736 ) (12,976 ) (15,551 ) Shares used in computing net loss per ordinary shares, basic and diluted 47,935,652 15,764,980 5,763,317 Net loss per ordinary share, basic and diluted $ (0.27 ) $ (0.82 ) $ (2.70 ) Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of ordinary shares and warrants outstanding would have been anti-dilutive. |
Contingent liabilities | t. Contingent liabilities The Company accounts for its contingent liabilities in accordance with ASC No. 450, “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. See Note 7e for further information. |
Government grants | u. Government grants Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of operations during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Israel Innovation Authority, or the IIA, (formerly known as the Israeli Office of the Chief Scientist), for funding certain approved research and development projects which are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses (see Note 7c). No royalty-bearing grants were recorded for the years ended December 31, 2021, 2020, and 2019. Total Company expenses related to royalties amounted to $14 thousand, $46 thousand and $15 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. |
Leases | v. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”), No. 2016-02, Leases (Topic 842), to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted the standard effective January 1, 2019. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items, such as initial direct costs paid or incentives received. Lease expense is recognized over the expected lease term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, lease liabilities current and lease liabilities non-current. As a result, the Company no longer recognizes deferred rent on the balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term. |
New Accounting Pronouncements | w. New Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted i. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature and a beneficial conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (“EPS”). ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020 and can be adopted on either a fully retrospective or modified retrospective basis. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. ii. Financial Instruments In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. Topic 326 will be effective on the Company beginning on January 1, 2023. The Company is currently evaluating the impact of this new standard on its financial statements. iii. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for the Company beginning January 1, 2022. The adoption of ASU 2019-12 is not expected to result in a material impact on the Company's consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment estimated useful lives | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 20-33 (mainly 33) Office furniture and equipment 6 - 10 (mainly 10) Machinery and laboratory equipment 15 Field service units 50 Leasehold improvements Over the shorter of the lease term or estimated useful life |
Schedule of disaggregation of revenues | Year Ended December 31, 2021 2020 2019 Units placed $ 5,449 $ 3,620 $ 4,385 Spare parts and warranties 517 773 488 Total Revenues $ 5,966 $ 4,393 $ 4,873 |
Schedule of trade receivables and short and long term deferred revenues | Contract balances (in thousands) December 31, December 31, 2021 2020 Trade receivable, net (1) $ 585 $ 684 Deferred revenues (1) (2) $ 1,182 $ 1,108 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $432 thousands of December 31, 2020 deferred revenues balance were recognized as revenues during the year ended December 31, 2021. |
Schedule of Black-Scholes-Merton option pricing model assumptions | The fair value for options granted in 2019 is estimated at the date of grant using a Black-Scholes-Merton option pricing model with the following assumptions: 2019 Expected volatility 57.5 % Risk-free rate 2.22 % Dividend yield — % Expected term (in years) 6.11 Share price $ 5.37 |
Schedule of product warranty liability | US Dollars in thousands Balance at December 31, 2020 $ 140 Provision 271 Usage (299 ) Balance at December 31, 2021 112 |
Schedule of concentration of credit risk | Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. December 31, 2021 2020 Customer A 20 % * ) Customer B 18 % * ) Customer C 16 % * ) Customer D 12 % 12 % Customer E 10 % * ) Customer F * ) 15 % Customer G * ) 15 % Customer H * ) 15 % Customer I * ) 14 % Customer J * ) 11 % *) Less than 10% |
Schedule of basic and diluted net loss per ordinary share | The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share (in thousands, except share and per share data): Year ended December 31, 2021 2020 2019 Net loss $ (12,736 ) $ (12,976 ) $ (15,551 ) Net loss attributable to ordinary shares (12,736 ) (12,976 ) (15,551 ) Shares used in computing net loss per ordinary shares, basic and diluted 47,935,652 15,764,980 5,763,317 Net loss per ordinary share, basic and diluted $ (0.27 ) $ (0.82 ) $ (2.70 ) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | The components of prepaid expenses and other current assets are as follows (in thousands): December 31, 2021 2020 Government institutions $ 207 $ 87 Prepaid expenses 335 311 Advances to vendors 5 241 Other assets 63 33 $ 610 $ 672 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventories are as follows (in thousands): December 31, 2021 2020 Finished products $ 2,284 $ 2,764 Raw materials 705 778 $ 2,989 $ 3,542 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of Property and Equipment, Net | The components of property and equipment, net are as follows (in thousands): December 31, 2021 2020 Cost: Computer equipment $ 741 $ 725 Office furniture and equipment 301 298 Machinery and laboratory equipment 620 612 Field service units 1,712 1,626 Leasehold improvements 333 333 $ 3,707 $ 3,594 December 31, 2021 2020 Accumulated depreciation 3,423 3,157 Property and equipment, net $ 284 $ 437 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments | The Company’s future lease payments for its facilities and cars, which are presented as current maturities of operating leases and non-current operating leases liabilities on the Company’s consolidated balance sheets as of December 31, 2021 are as follows (in thousands): 2022 $ 689 2023 500 Total lease payments 1,189 Less: imputed interest (130 ) Present value of future lease payments 1,059 Less: current maturities of operating leases (641 ) Non-current operating leases $ 418 Weighted-average remaining lease term (in years) 1.74 Weighted-average discount rate 12.6 % |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of employee and non-employee shares options activity | A summary of employee and non-employee shares options activity during the fiscal year ended 2021 is as follows: Number Average exercise price Average remaining contractual life (years) Aggregate intrinsic value (in thousands) Options outstanding at the beginning of the year 69,606 $ 37.9 5.59 $ — Granted — — — — Exercised — — — — Forfeited (7,774 ) 34.68 — — Options outstanding at the end of the year 61,832 $ 38.34 4.55 $ — Options exercisable at the end of the year 55,747 $ 41.09 4.30 $ — |
Schedule of employee and non-employee RSUs activity | A summary of employee and non-employee RSUs activity during the fiscal year ended 2021 is as follows: Number of shares underlying outstanding RSUs Weighted- average grant date fair value Unvested RSUs at the beginning of the year 1,251,311 1.69 Granted 721,216 1.69 Vested (398,164 ) 1.74 Forfeited (218,079 ) 1.50 Unvested RSUs at the end of the year 1,356,284 1.61 |
Schedule of options and RSUs outstanding | The number of options and RSUs outstanding as of December 31, 2021 is set forth below, with options separated by range of exercise price: Range of exercise price Options and RSUs Outstanding as of December 31, 2021 Weighted average remaining contractual life (years) (1) Options Exercisable as of December 31, 2021 Weighted average remaining contractual life (years) (1) RSUs only 1,356,284 — — — $5.37 12,425 7.24 8,542 7.24 $20.42- $33.75 31,155 4.08 28,953 3.91 $37.14-$38.75 8,946 1.98 8,946 1.98 $50-$52.5 6,731 5.46 6,731 5.46 $182.5-$524.25 2,575 3.85 2,575 3.85 1,418,116 4.55 55,747 4.30 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
Schedule of non-cash share-based compensation expense | The Company recognized non-cash share-based compensation expense in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cost of revenues $ 10 $ 8 $ 13 Research and development, net 55 136 204 Sales and marketing, net 171 163 166 General and administrative 597 442 725 Total $ 833 $ 749 $ 1,108 |
Schedule of warrants outstanding and exercisable | The following table summarizes information about warrants outstanding and exercisable as of December 31, 2021: Issuance date Warrants outstanding Exercise price per warrant Warrants outstanding and exercisable Contractual term (number) (number) December 31, 2015 (1) 4,771 $ 7.500 4,771 See footnote (1) December 28, 2016 (2) 1,908 $ 7.500 1,908 See footnote (1) November 20, 2018 (3) 126,839 $ 7.500 126,839 November 20, 2023 November 20, 2018 (4) 106,680 $ 9.375 106,680 November 15, 2023 February 25, 2019 (5) 45,600 $ 7.187 45,600 February 21, 2024 April 5, 2019 (6) 408,457 $ 5.140 408,457 October 7, 2024 April 5, 2019 (7) 49,015 $ 6.503 49,015 April 3, 2024 June 5, 2019, and June 6, 2019 (8) 1,464,665 $ 7.500 1,464,665 June 5, 2024 June 5, 2019 (9) 87,880 $ 9.375 87,880 June 5, 2024 June 12, 2019 (10) 416,667 $ 6.000 416,667 December 12, 2024 June 10, 2019 (11) 50,000 $ 7.500 50,000 June 10, 2024 February 10, 2020 (12) 28,400 $ 1.250 28,400 February 10, 2025 February 10, 2020 (13) 105,840 $ 1.563 105,840 February 10, 2025 July 6, 2020 (14) 448,698 $ 1.760 448,698 January 2, 2026 July 6, 2020 (15) 296,297 $ 2.278 296,297 January 2, 2026 December 8, 2020 (16) 586,760 $ 1.340 586,760 June 8, 2026 December 8, 2020 (17) 108,806 $ 1.792 108,806 June 8, 2026 February 26, 2021 (18) 5,460,751 $ 3.600 5,460,751 August 26, 2026 February 26, 2021 (19) 655,290 $ 4.578 655,290 August 26, 2026 September 29, 2021 (20) 8,006,759 $ 2.000 8,006,759 March 29, 2027 September 29, 2021 (21) 960,811 $ 2.544 960,811 September 27, 2026 19,420,894 19,420,894 (1) Represents warrants for ordinary shares issuable upon an exercise price of $7.500 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited (“Kreos”) in connection with a loan made by Kreos to the Company and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly owned subsidiary of the Company, excluding any transaction in which the Company’s shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of December 31, 2021. (2) Represents common warrants that were issued as part of the $8.0 million drawdown under the Loan Agreement which occurred on December 28, 2016. See footnote 1 for exercisability terms. (3) Represents common warrants that were issued as part of the Company’s follow-on public offering in November 2018. (4) Represents common warrants that were issued to the underwriters as compensation for their role in the Company’s follow-on public offering in November 2018. (5) Represents warrants that were issued to the exclusive placement agent as compensation for its role in the Company’s follow-on public offering in February 2019. F - 35 (6) Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s registered direct offering of ordinary shares in April 2019. (7) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s April 2019 registered direct offering. (8) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019, and June 6, 2019, respectively. (9) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 warrant exercise agreement and concurrent private placement of warrants. (10) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. (11) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 registered direct offering and concurrent private placement of warrants. (12) Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s best efforts offering of ordinary shares in February 2020. During the year ended December 31, 2021, 3,740,100 warrants were exercised for total consideration of $4,675,125. (13) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2020 best efforts offering. During the year ended December 31, 2021, 230,160 warrants were exercised for total consideration of $359,625. (14) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in July 2020. During the year ended December 31, 2021, 2,020,441 warrants were exercised for total consideration of $3,555,976. (15) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s July 2020 registered direct offering. (16) Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in December 2020. During the year ended December 31, 2021, 3,598,072 warrants were exercised for total consideration of $4,821,416. (17) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s December 2020 private placement. During the year ended December 31, 2021, 225,981 warrants were exercised for total consideration of $405,003. (18) Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in February 2021. (19) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2021 private placement. (20) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in September 2021. (21) Represents warrants that were issued to the placement agent as compensation for its role in the Company’s September 2021 registered direct offering. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss before taxes on income | b. Income (loss) before taxes on income is comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ (12,780 ) $ (12,992 ) $ (15,599 ) Foreign 138 67 55 $ (12,642 ) $ (12,925 ) $ (15,544 ) |
Schedule of taxes on income | c. Taxes on income are comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current $ 123 $ 95 $ 64 Deferred (29 ) (44 ) (57 ) $ 94 $ 51 $ 7 Year Ended December 31, 2021 2020 2019 Domestic $ — $ — $ — Foreign 94 51 7 $ 94 $ 51 $ 7 |
Schedule of deferred income taxes | December 31, 2021 2020 Deferred tax assets: Carry forward tax losses $ 47,323 $ 41,941 Research and development carry forward expenses-temporary differences 718 946 Accrual and reserves 373 341 Lease liabilities 261 390 Total deferred tax assets 48,675 43,618 Deferred tax liabilities: Right-of-use asset (261 ) (390 ) Net deferred tax assets 48,414 43,228 Valuation allowance (48,098 ) (42,941 ) Net deferred tax assets $ 316 $ 287 |
Schedule of net changes in total valuation allowance | The net changes in the total valuation allowance for each of the years ended December 31, 2021, 2020 and 2019, are comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ (42,941 ) $ (36,392 ) $ (29,655 ) Changes due to exchange rate differences (1,488 ) (2,929 ) (2,055 ) Adjustment previous year loss — — (735 ) Additions during the year (3,669 ) (3,620 ) (3,947 ) Balance at end of year $ (48,098 ) $ (42,941 ) $ (36,392 ) |
Schedule of reconciliation between the theoretical tax expense and the actual tax expense (benefit) | A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Loss before taxes, as reported in the consolidated statements of operations $ (12,642 ) $ (12,925 ) $ (15,544 ) Statutory tax rate 23.0 % 23.0 % 23.0 % Theoretical tax benefits on the above amount at the Israeli statutory tax rate $ (2,908 ) $ (2,973 ) $ (3,575 ) Income tax at rate other than the Israeli statutory tax rate 7 3 (1 ) Non-deductible expenses including equity-based compensation expenses and other 102 185 255 Operating losses and other temporary differences for which valuation allowance was provided 3,669 3,620 3,947 Permanent differences (784 ) (706 ) (651 ) Other 8 (78 ) 32 Actual tax expense $ 94 $ 51 $ 7 |
FINANCIAL EXPENSES (INCOME), _2
FINANCIAL EXPENSES (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of financial expenses, net | The components of financial expenses (income), net were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Foreign currency transactions and other $ (38 ) $ (9 ) $ (34 ) Financial expenses related to loan agreement with Kreos — 907 1,499 Bank commissions 25 23 31 $ (13 ) $ 921 $ 1,496 |
GEOGRAPHIC INFORMATION AND MA_2
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues within geographic areas | Year Ended December 31, 2021 2020 2019 Revenues based on customer’s location: Israel $ — $ — $ 2 United States 2,519 1,746 2,003 Europe 3,381 2,631 2,832 Asia-Pacific 60 8 36 Latin America — 6 — Africa 6 2 — Total revenues $ 5,966 $ 4,393 $ 4,873 |
Schedule of long-lived assets by geographic region | December 31, 2021 2020 Long-lived assets by geographic region: Israel $ 629 $ 953 United States 493 790 Germany 43 43 $ 1,165 $ 1,786 (*) Long-lived assets are comprised of property and equipment, net, and operating lease right-of-use assets. |
Schedule of major customer data as a percentage of total revenues | Major customers data as a percentage of total revenues: Year Ended December 31, 2021 2020 2019 Customer A 11.0 % * ) * ) Customer B * ) 10.0 % 15.0 % |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
General (Textual) | |||
Accumulated deficit | $ (194,181) | $ (181,445) | |
Negative cash flow from operations | (11,469) | (12,589) | $ (14,815) |
Net loss | (12,736) | (12,976) | $ (15,551) |
Cash and cash equivalents | $ 88,337 | $ 20,350 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold improvements [Member] | |
Property and equipment estimated useful lives | Over the shorter of the lease term or estimated useful life |
Machinery and laboratory equipment [Member] | |
Property and equipment estimated useful lives | 15 |
Field service units [Member] | |
Property and equipment estimated useful lives | 50 |
Minimum [Member] | Computer equipment [Member] | |
Property and equipment estimated useful lives | 20 |
Minimum [Member] | Office furniture and equipment [Member] | |
Property and equipment estimated useful lives | 6 |
Maximum [Member] | Computer equipment [Member] | |
Property and equipment estimated useful lives | 33 |
Maximum [Member] | Office furniture and equipment [Member] | |
Property and equipment estimated useful lives | 10 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total Revenues | $ 5,966 | $ 4,393 | $ 4,873 |
Units Placed [Member] | |||
Total Revenues | 5,449 | 3,620 | 4,385 |
Spare parts and warranties [Member] | |||
Total Revenues | $ 517 | $ 773 | $ 488 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Trade receivable, net | [1] | $ 585 | $ 684 |
Deferred revenues | [1],[2] | $ 1,182 | $ 1,108 |
[1] | Balance presented net of unrecognized revenues that were not yet collected. | ||
[2] | $432 thousands of December 31, 2020 deferred revenues balance were recognized as revenues during the year ended December 31, 2021. |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Accounting Policies [Abstract] | |
Expected volatility | 57.50% |
Risk-free rate | 2.22% |
Dividend yield | |
Expected term (in years) | 6 years 1 month 9 days |
Share price | $ 5.37 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Details 4) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Warrants to acquire common stock | 15,083,611 | 11,389,555 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Details 5) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Warranty provision: | |
Balance at December 31, 2020 | $ 140 |
Provision | 271 |
Usage | (299) |
Balance at December 31, 2021 | $ 112 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Details 6) - Trade Receivables [Member] - Credit Concentration Risk [Member] | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Customer A [Member] | ||||
Concentration of credit risk | 20.00% | |||
Customer B [Member] | ||||
Concentration of credit risk | 18.00% | |||
Customer C [Member] | ||||
Concentration of credit risk | 16.00% | |||
Customer D [Member] | ||||
Concentration of credit risk | 12.00% | 12.00% | ||
Customer E [Member] | ||||
Concentration of credit risk | 10.00% | |||
Customer F [Member] | ||||
Concentration of credit risk | [1] | 15.00% | ||
Customer G [Member] | ||||
Concentration of credit risk | [1] | 15.00% | ||
Customer H [Member] | ||||
Concentration of credit risk | [1] | 15.00% | ||
Customer I [Member] | ||||
Concentration of credit risk | [1] | 14.00% | ||
Customer J [Member] | ||||
Concentration of credit risk | [1] | 11.00% | ||
[1] | Less than 10% |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Details 7) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net loss | $ (12,736) | $ (12,976) | $ (15,551) |
Net loss attributable to ordinary shares | $ (12,736) | $ (12,976) | $ (15,551) |
Shares used in computing net loss per ordinary shares, basic and diluted | 47,935,652 | 15,764,980 | 5,763,317 |
Net loss per ordinary share, basic and diluted | $ (0.27) | $ (0.82) | $ (2.70) |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies (Textual) | |||
Wrote off inventory amount | $ 252 | $ 215 | $ 64 |
Impairment losses | |||
Allowance for doubtful accounts | 42 | 102 | |
Net of sales return reserve | 43 | 0 | |
Deferred revenue recognized | $ 432 | ||
Revenue recognition description | the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $1.21 million, which is fulfilled over one to five years. | ||
Non-cash compensation expenses | $ 833 | 749 | 1,108 |
Maximum percentage of likely to be realized upon ultimate settlement | 50.00% | ||
Percentage of monthly deposit by employees | 8.33% | ||
Severance pay expense | $ 104 | 125 | 156 |
Royalty-bearing grants expenses | |||
Royalty expenses | $ 14 | 46 | 15 |
ReStore product [Member] | |||
Significant Accounting Policies (Textual) | |||
Service policy | 2 years | ||
SCI Products [Member] | |||
Significant Accounting Policies (Textual) | |||
Service policy | 5 years | ||
YEC [Member] | |||
Significant Accounting Policies (Textual) | |||
Revenues from related party | $ 0 | 0 | 41 |
YEC [Member] | Trade Receivables [Member] | Credit Concentration Risk [Member] | |||
Significant Accounting Policies (Textual) | |||
Impairment losses | |||
Employees and non- employees [Member] | |||
Significant Accounting Policies (Textual) | |||
Non-cash compensation expenses | $ 833 | $ 749 | $ 1,110 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Government institutions | $ 207 | $ 87 |
Prepaid expenses | 335 | 311 |
Advances to vendors | 5 | 241 |
Other assets | 63 | 33 |
Prepaid expenses and other current assets | $ 610 | $ 672 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 2,284 | $ 2,764 |
Raw materials | 705 | 778 |
Inventories | $ 2,989 | $ 3,542 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,707 | $ 3,594 |
Accumulated depreciation | 3,423 | 3,157 |
Property and equipment, net | 284 | 437 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 741 | 725 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 301 | 298 |
Machinery and laboratory equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 620 | 612 |
Field service units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,712 | 1,626 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 333 | $ 333 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and Equipment, Net (Textual) | |||
Depreciation expenses | $ 266 | $ 285 | $ 321 |
LOAN AGREEMENT WITH KREOS AND_2
LOAN AGREEMENT WITH KREOS AND RELATED WARRANT TO PURCHASE ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 04, 2016 | Dec. 30, 2015 | Nov. 20, 2018 | Jun. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 06, 2019 | Jun. 09, 2017 | Dec. 28, 2016 | |
Debt Instrument [Line Items] | |||||||||||
Proceeds from long term loan | [1] | $ 392 | |||||||||
Interest expense | $ 907 | $ 1,499 | |||||||||
Warrant to purchase ordinary shares | 15,083,611 | 11,389,555 | |||||||||
Second Amendment [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Warrant exercise price | $ 7.50 | ||||||||||
Repayments | $ 3,600 | ||||||||||
Units issued | 192,000 | ||||||||||
Second Amendment [Member] | Pre-Funded [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Units issued | 288,000 | ||||||||||
Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 20,000 | ||||||||||
Proceeds from long term loan | $ 20,000 | ||||||||||
Loan term | 24 months | 36 months | |||||||||
Annual interest rate | 10.75% | ||||||||||
Required proceeds from issuance of common stock required for repayment period to be extended | $ 20,000 | ||||||||||
Interest expense | $ 907 | ||||||||||
Warrant to purchase ordinary shares | 4,771 | 480,000 | 6,679 | ||||||||
Warrant exercise price | $ 241 | $ 7.50 | |||||||||
Secured Debt [Member] | First Amendment [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Portion of principal subject to repayment extension | $ 3,000 | ||||||||||
[1] | See Note 8b. |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 689 | |
2023 | 500 | |
Total lease payments | 1,189 | |
Less: imputed interest | (130) | |
Present value of future lease payments | 1,059 | |
Less: current maturities of operating leases | (641) | $ (660) |
Non-current operating leases | $ 418 | $ 923 |
Weighted-average remaining lease term (in years) | 1 year 8 months 26 days | |
Weighted-average discount rate | 12.60% |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingent Liabilities (Textual) | |||
Non-cancelable outstanding obligations | $ 1,500 | ||
Maximum penalties payable on early release of agreement | 20 | ||
Royalties expenses | $ 14 | $ 46 | $ 15 |
Lease expiration, term | These leases expire between 2022 and 2023. | ||
Restricted cash and other long-term assets | $ 713 | ||
Rent expenses | $ 730 | $ 764 | $ 739 |
IPO [Member] | |||
Commitments and Contingent Liabilities (Textual) | |||
Description of conversion ratio | ordinary shares in a conversion ratio of 1 to 1. | ||
Israel Innovation Authority [Member] | |||
Commitments and Contingent Liabilities (Textual) | |||
Total fund received | $ 1,970 | ||
Royalty bearing grants | 1,570 | ||
Royalties paid | $ 99 | ||
Percentage of obligation to pay royalties | 3.00% | ||
Contingent liability | $ 1,500 | ||
Percentage of grant received | 100.00% | ||
Israel Innovation Authority [Member] | Convertible preferred A shares [Member] | |||
Commitments and Contingent Liabilities (Textual) | |||
Amount received in consideration of preferred shares | $ 400 | ||
Convertible preferred shares | 209 | ||
RRL and RRG [Member] | |||
Commitments and Contingent Liabilities (Textual) | |||
Lease expiration, term | RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates in between 2022 and 2023. |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Number, Options outstanding at the beginning of the period | 69,606 | |
Number, Granted | ||
Number, Exercised | ||
Number, Forfeited | (7,774) | |
Number, Options outstanding at the end of the period | 61,832 | 69,606 |
Number, Options exercisable at the end of the period | 55,747 | |
Average exercise price, Options outstanding at the beginning of the period | $ 37.9 | |
Average exercise price, Granted | ||
Average exercise price, Exercised | ||
Average exercise price, Forfeited | 34.68 | |
Average exercise price, Options outstanding at the end of the period | 38.34 | $ 37.9 |
Average exercise price, Options exercisable at the end of the period | $ 41.09 | |
Average remaining contractual life (in years), Options outstanding at the beginning of the period | 4 years 6 months 18 days | 5 years 7 months 2 days |
Average remaining contractual life (in years), Options exercisable at the end of the period | 4 years 3 months 18 days | |
Aggregate intrinsic value (in thousands), Options outstanding | ||
Aggregate intrinsic value (in thousands), Options exercisable at the end of the period |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) - Employee Stock Option And Restricted Stock Units Rsu [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of shares underlying outstanding RSUs | |
Unvested RSUs at the Beginning of the period | shares | 1,251,311 |
Granted | shares | 721,216 |
Vested | shares | (398,164) |
Forfeited | shares | (218,079) |
Unvested RSUs at the end of the period | shares | 1,356,284 |
Weighted average grant date fair value | |
Unvested RSUs at the Beginning of the period | $ / shares | $ 1.69 |
Granted | $ / shares | 1.69 |
Vested | $ / shares | 1.74 |
Forfeited | $ / shares | 1.50 |
Unvested RSUs at the end of the period | $ / shares | $ 1.61 |
SHAREHOLDERS' EQUITY (Details 2
SHAREHOLDERS' EQUITY (Details 2) - Employee Stock Option [Member] | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | 1,418,116 | |
Options outstanding weighted average remaining contractual life (years) | 4 years 6 months 18 days | [1] |
Options outstanding and exercisable | 55,747 | |
Options exercisable weighted average remaining contractual life (years) | 4 years 3 months 18 days | [1] |
RSUs only [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | 1,356,284 | |
Options outstanding weighted average remaining contractual life (years) | 0 years | |
Options outstanding and exercisable | ||
Options exercisable weighted average remaining contractual life (years) | 0 years | |
5.37 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price | $ / shares | $ 5.37 | |
Options outstanding | 12,425 | |
Options outstanding weighted average remaining contractual life (years) | 7 years 2 months 26 days | [1] |
Options outstanding and exercisable | 8,542 | |
Options exercisable weighted average remaining contractual life (years) | 7 years 2 months 26 days | [1] |
$20.42- $33.75 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise price, minimum | $ / shares | $ 20.42 | |
Range of exercise price, maximum | $ / shares | $ 33.75 | |
Options outstanding | 31,155 | |
Options outstanding weighted average remaining contractual life (years) | 4 years 29 days | [1] |
Options outstanding and exercisable | 28,953 | |
Options exercisable weighted average remaining contractual life (years) | 3 years 10 months 28 days | [1] |
$37.14-$38.75 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise price, minimum | $ / shares | $ 37.14 | |
Range of exercise price, maximum | $ / shares | $ 38.75 | |
Options outstanding | 8,946 | |
Options outstanding weighted average remaining contractual life (years) | 1 year 11 months 23 days | [1] |
Options outstanding and exercisable | 8,946 | |
Options exercisable weighted average remaining contractual life (years) | 1 year 11 months 23 days | [1] |
$50-$52.5 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise price, minimum | $ / shares | $ 50 | |
Range of exercise price, maximum | $ / shares | $ 52.5 | |
Options outstanding | 6,731 | |
Options outstanding weighted average remaining contractual life (years) | 5 years 5 months 15 days | [1] |
Options outstanding and exercisable | 6,731 | |
Options exercisable weighted average remaining contractual life (years) | 5 years 5 months 15 days | [1] |
$182.5-$524.25 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise price, minimum | $ / shares | $ 182.5 | |
Range of exercise price, maximum | $ / shares | $ 524.25 | |
Options outstanding | 2,575 | |
Options outstanding weighted average remaining contractual life (years) | 3 years 10 months 6 days | [1] |
Options outstanding and exercisable | 2,575 | |
Options exercisable weighted average remaining contractual life (years) | 3 years 10 months 6 days | [1] |
[1] | Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
SHAREHOLDERS' EQUITY (Details 3
SHAREHOLDERS' EQUITY (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Non-cash share-based compensation expense | $ 833 | $ 749 | $ 1,108 |
Cost of revenues [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Non-cash share-based compensation expense | 10 | 8 | 13 |
Research and development, net [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Non-cash share-based compensation expense | 55 | 136 | 204 |
Sales and marketing, net [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Non-cash share-based compensation expense | 171 | 163 | 166 |
General and administrative [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Non-cash share-based compensation expense | $ 597 | $ 442 | $ 725 |
SHAREHOLDERS' EQUITY (Details 4
SHAREHOLDERS' EQUITY (Details 4) | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 19,420,894 | |
Warrants outstanding and exercisable | 19,420,894 | |
December 31, 2015 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 4,771 | [1] |
Exercise price per warrant | $ / shares | $ 7.500 | [1] |
Warrants outstanding and exercisable | 4,771 | [1] |
Contractual term | Dec. 30, 2025 | [1] |
December 28, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,908 | [2] |
Exercise price per warrant | $ / shares | $ 7.500 | [2] |
Warrants outstanding and exercisable | 1,908 | [2] |
Contractual term | Dec. 30, 2025 | [2] |
November 20, 2018 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 126,839 | [3] |
Exercise price per warrant | $ / shares | $ 7.500 | [3] |
Warrants outstanding and exercisable | 126,839 | [3] |
Contractual term | Nov. 20, 2023 | [3] |
November 20, 2018 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 106,680 | [4] |
Exercise price per warrant | $ / shares | $ 9.375 | [4] |
Warrants outstanding and exercisable | 106,680 | [4] |
Contractual term | Nov. 15, 2023 | [4] |
February 25, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 45,600 | [5] |
Exercise price per warrant | $ / shares | $ 7.187 | [5] |
Warrants outstanding and exercisable | 45,600 | [5] |
Contractual term | Feb. 21, 2024 | [5] |
April 5, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 408,457 | [6] |
Exercise price per warrant | $ / shares | $ 5.140 | [6] |
Warrants outstanding and exercisable | 408,457 | [6] |
Contractual term | Oct. 7, 2024 | [6] |
April 5, 2019 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 49,015 | [7] |
Exercise price per warrant | $ / shares | $ 6.503 | [7] |
Warrants outstanding and exercisable | 49,015 | [7] |
Contractual term | Apr. 3, 2024 | [7] |
June 5, 2019 and June 6, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,464,665 | [8] |
Exercise price per warrant | $ / shares | $ 7.500 | [8] |
Warrants outstanding and exercisable | 1,464,665 | [8] |
Contractual term | Jun. 5, 2024 | [8] |
June 5, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 87,880 | [9] |
Exercise price per warrant | $ / shares | $ 9.375 | [9] |
Warrants outstanding and exercisable | 87,880 | [9] |
Contractual term | Jun. 5, 2024 | [9] |
June 12, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 416,667 | [10] |
Exercise price per warrant | $ / shares | $ 6 | [10] |
Warrants outstanding and exercisable | 416,667 | [10] |
Contractual term | Dec. 12, 2024 | [10] |
June 10, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 50,000 | [11] |
Exercise price per warrant | $ / shares | $ 7.500 | [11] |
Warrants outstanding and exercisable | 50,000 | [11] |
Contractual term | Jun. 10, 2024 | [11] |
February 10, 2020 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 28,400 | [12] |
Exercise price per warrant | $ / shares | $ 1.250 | [12] |
Warrants outstanding and exercisable | 28,400 | [12] |
Contractual term | Feb. 10, 2025 | [12] |
February 10, 2020 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 105,840 | [13] |
Exercise price per warrant | $ / shares | $ 1.563 | [13] |
Warrants outstanding and exercisable | 105,840 | [13] |
Contractual term | Feb. 10, 2025 | [13] |
July 6, 2020 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 448,698 | [14] |
Exercise price per warrant | $ / shares | $ 1.760 | [14] |
Warrants outstanding and exercisable | 448,698 | [14] |
Contractual term | Jan. 2, 2026 | [14] |
July 6, 2020 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 296,297 | [15] |
Exercise price per warrant | $ / shares | $ 2.278 | [15] |
Warrants outstanding and exercisable | 296,297 | [15] |
Contractual term | Jan. 2, 2026 | [15] |
December 8, 2020 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 586,760 | [16] |
Exercise price per warrant | $ / shares | $ 1.340 | [16] |
Warrants outstanding and exercisable | 586,760 | [16] |
Contractual term | Jun. 8, 2026 | [16] |
December 8, 2020 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 108,806 | [17] |
Exercise price per warrant | $ / shares | $ 1.792 | [17] |
Warrants outstanding and exercisable | 108,806 | [17] |
Contractual term | Jun. 8, 2026 | [17] |
February 26, 2021 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 5,460,751 | [18] |
Exercise price per warrant | $ / shares | $ 3.600 | [18] |
Warrants outstanding and exercisable | 5,460,751 | [18] |
Contractual term | Aug. 26, 2026 | [18] |
February 26, 2021 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 655,290 | [19] |
Exercise price per warrant | $ / shares | $ 4.578 | [19] |
Warrants outstanding and exercisable | 655,290 | [19] |
Contractual term | Aug. 26, 2026 | [19] |
September 29, 2021 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 8,006,759 | [20] |
Exercise price per warrant | $ / shares | $ 2 | [20] |
Warrants outstanding and exercisable | 8,006,759 | [20] |
Contractual term | Mar. 29, 2027 | [20] |
September 29, 2021 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 960,811 | [21] |
Exercise price per warrant | $ / shares | $ 2.544 | [21] |
Warrants outstanding and exercisable | 960,811 | [21] |
Contractual term | Sep. 27, 2026 | [21] |
[1] | Represents warrants for ordinary shares issuable upon an exercise price of $7.500 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited (“Kreos”) in connection with a loan made by Kreos to the Company and are currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly owned subsidiary of the Company, excluding any transaction in which the Company’s shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. None of these warrants had been exercised as of December 31, 2021. | |
[2] | Represents common warrants that were issued as part of the $8.0 million drawdown under the Loan Agreement which occurred on December 28, 2016. See footnote 1 for exercisability terms. | |
[3] | Represents common warrants that were issued as part of the Company’s follow-on public offering in November 2018. | |
[4] | Represents common warrants that were issued to the underwriters as compensation for their role in the Company’s follow-on public offering in November 2018. | |
[5] | Represents warrants that were issued to the exclusive placement agent as compensation for its role in the Company’s follow-on public offering in February 2019. | |
[6] | Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s registered direct offering of ordinary shares in April 2019. | |
[7] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s April 2019 registered direct offering. | |
[8] | Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019, and June 6, 2019, respectively. | |
[9] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 warrant exercise agreement and concurrent private placement of warrants. | |
[10] | Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. | |
[11] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s June 2019 registered direct offering and concurrent private placement of warrants. | |
[12] | Represents warrants that were issued to certain institutional purchasers in a private placement in the Company’s best efforts offering of ordinary shares in February 2020. During the year ended December 31, 2021, 3,740,100 warrants were exercised for total consideration of $4,675,125. | |
[13] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2020 best efforts offering. During the year ended December 31, 2021, 230,160 warrants were exercised for total consideration of $359,625. | |
[14] | Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in July 2020. During the year ended December 31, 2021, 2,020,441 warrants were exercised for total consideration of $3,555,976. | |
[15] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s July 2020 registered direct offering. | |
[16] | Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in December 2020. During the year ended December 31, 2021, 3,598,072 warrants were exercised for total consideration of $4,821,416. | |
[17] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s December 2020 private placement. During the year ended December 31, 2021, 225,981 warrants were exercised for total consideration of $405,003. | |
[18] | Represents warrants that were issued to certain institutional purchasers in a private placement in our private placement offering of ordinary shares in February 2021. | |
[19] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s February 2021 private placement. | |
[20] | Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in September 2021. | |
[21] | Represents warrants that were issued to the placement agent as compensation for its role in the Company’s September 2021 registered direct offering. |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) $ / shares in Units, $ in Thousands | Dec. 03, 2020₪ / sharesshares | Jul. 06, 2020₪ / sharesshares | Sep. 27, 2021₪ / sharesshares | Feb. 19, 2021₪ / sharesshares | Jun. 12, 2019$ / sharesshares | Jun. 06, 2019$ / sharesshares | Jun. 05, 2019$ / sharesshares | Apr. 30, 2019$ / sharesshares | Mar. 27, 2019 | Feb. 28, 2019USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Feb. 10, 2021shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2015 | Dec. 31, 2021₪ / shares | Sep. 27, 2021$ / sharesshares | Feb. 19, 2021$ / sharesshares | Dec. 31, 2020₪ / sharesshares | Dec. 03, 2020$ / sharesshares | Jul. 06, 2020$ / sharesshares | Feb. 10, 2020₪ / sharesshares | Feb. 10, 2020$ / sharesshares | Dec. 28, 2016USD ($) | |
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Reverse share split, description | the Company’s shareholders approved (i) a reverse share split within a range of 1:8 to 1:32, to be effective at the ratio and on a date to be determined by the Board of Directors, and (ii) amendments to the Company’s Articles of Association authorizing an increase in the Company’s authorized share capital (and corresponding authorized number of ordinary shares, proportionally adjusting such number for the reverse share split) by up to NIS 17.5 million. Following the shareholder approval, an authorized committee of the Board of Directors of the Company approved a one-for-twenty-five reverse share split of the Company’s ordinary shares, and the Company filed the Third Amended and Restated Articles of Association of the Company with the Israeli Corporations Authority to affect the reverse share split and to increase the Company’s authorized share capital after the effect of the reverse share split. The reverse share split became effective on April 1, 2019. Additionally, effective at the same time, the total number of ordinary shares the Company is authorized to issue changed from 250,000,000 shares to 60,000,000 shares, the par value per share of the ordinary shares changed to NIS 0.25 and the authorized share capital of the Company changed from NIS 2,500,000 to NIS 15,000,000. All share and per share data included in these consolidated financial statements, for periods before December 31, 2019, give retroactive effect to the reverse stock split. | ||||||||||||||||||||||||
Par value of shares | ₪ / shares | ₪ 0.25 | ₪ 0.25 | |||||||||||||||||||||||
Options granted (in shares) | |||||||||||||||||||||||||
Number of warrants issued | 15,083,611 | 11,389,555 | |||||||||||||||||||||||
Expected term of shares | 6 years 1 month 9 days | ||||||||||||||||||||||||
Total gross proceeds received from the follow-on public offering | $ | [1] | $ 7,041 | |||||||||||||||||||||||
Warrants to purchase ordinary shares | 6,680 | ||||||||||||||||||||||||
Warrants outstanding | 19,420,894 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 138 | ||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Exercise price per share | $ / shares | $ 1.25 | ||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Exercise price per share | $ / shares | 1.79 | ||||||||||||||||||||||||
Kreos Capital V [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Warrants grant date | Dec. 31, 2015 | ||||||||||||||||||||||||
Warrants exercisable, description | currently exercisable (in whole or in part) until the earlier of (i) December 30, 2025 or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly owned subsidiary of the Company, excluding any transaction in which the Company’s shareholders prior to the transaction will hold more than 50% of the voting and economic rights of the surviving entity after the transaction. | ||||||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Weighted average grant date fair value, restricted stock units (in USD per share) | $ / shares | $ 1.69 | $ 1.44 | $ 4.67 | ||||||||||||||||||||||
Weighted average grant date fair value, options (in USD per share) | $ / shares | $ 2.98 | ||||||||||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Shares reserved for future issuance (in shares) | 233,957 | 604,320 | |||||||||||||||||||||||
Unrecognized cost of shares | $ | $ 1,800 | ||||||||||||||||||||||||
Expected term of shares | 2 years 9 months 18 days | ||||||||||||||||||||||||
Total fair value of shares vested | $ | $ 802 | $ 676 | $ 1,180 | ||||||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Issuance of ordinary shares (in shares) | 760,000 | ||||||||||||||||||||||||
Issuance expenses | $ | $ 3,679 | $ 959 | |||||||||||||||||||||||
Sale of stock price per share | $ / shares | $ 5.75 | ||||||||||||||||||||||||
Total gross proceeds received from the follow-on public offering | $ | $ 4,370 | ||||||||||||||||||||||||
Description of wainwright or its designees warrants to purchase | The Company also issued to H.C Wainwright and/or its designees warrants to purchase up to 45,600 ordinary shares, which are immediately exercisable starting on February 25, 2019, until February 21, 2024 at $7.1875 per share. | ||||||||||||||||||||||||
Common units and pre-funded units [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Issuance of ordinary shares (in shares) | 5,600,000 | ||||||||||||||||||||||||
Par value of shares | ₪ / shares | ₪ 0.25 | ||||||||||||||||||||||||
Warrant to purchase one ordinary share | 1,546,828 | 1,546,828 | |||||||||||||||||||||||
Exercise price per share | $ / shares | $ 1.5625 | ||||||||||||||||||||||||
Number of warrants issued | 336,000 | 336,000 | |||||||||||||||||||||||
Common units [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 1.25 | ||||||||||||||||||||||||
Pre-funded units [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 1.249 | ||||||||||||||||||||||||
Purchase agreement with certain institutional investors [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Issuance of ordinary shares (in shares) | 5,579,776 | 4,938,278 | 15,403,014 | ||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 1.4337 | $ 1.8225 | |||||||||||||||||||||||
Par value of shares | ₪ / shares | ₪ 0.25 | ₪ 0.25 | ₪ 0.25 | ||||||||||||||||||||||
Exercise price per share | $ / shares | $ 2 | $ 1.34 | $ 1.76 | ||||||||||||||||||||||
Number of warrants issued | 4,184,832 | 2,469,139 | 8,006,759 | 2,020,441 | 8,006,759 | 4,184,832 | 2,469,139 | ||||||||||||||||||
Description of underwriting agreement | The Pre-Funded Warrants have an exercise price of $0.001 per Ordinary Share and are immediately exercisable and can be exercised at any time after their original issuance until such pre-funded warrants are exercised in full. Each ordinary shares was sold at an offering price of $2.035 and each pre-funded warrant was sold at an offering price of $2.034 (equal to the purchase price per ordinary share minus the exercise price of the pre-funded warrant). | ||||||||||||||||||||||||
Purchase agreement with certain institutional investors [Member] | Additionally Warrants Issued [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Issuance of ordinary shares (in shares) | 610,504 | ||||||||||||||||||||||||
Exercise price per share | $ / shares | $ 2.5438 | $ 1.7922 | $ 2.2781 | ||||||||||||||||||||||
Number of warrants issued | 334,787 | 296,297 | 960,811 | 960,811 | 334,787 | 296,297 | |||||||||||||||||||
Purchase agreement with certain institutional and accredited investors [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Issuance of ordinary shares (in shares) | 10,921,502 | ||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 3.6625 | ||||||||||||||||||||||||
Par value of shares | ₪ / shares | ₪ 0.25 | ||||||||||||||||||||||||
Exercise price per share | $ / shares | $ 3.6 | ||||||||||||||||||||||||
Number of warrants issued | 5,460,751 | 5,460,751 | |||||||||||||||||||||||
Purchase agreement with certain institutional and accredited investors [Member] | Additionally Warrants Issued [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Exercise price per share | $ / shares | $ 4.578125 | ||||||||||||||||||||||||
Number of warrants issued | 655,290 | 655,290 | |||||||||||||||||||||||
Common units and pre-funded units one [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 5,571,600 | ||||||||||||||||||||||||
Common units and pre-funded units one [Member] | Additionally Warrants Issued [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 230,160 | ||||||||||||||||||||||||
Purchase agreement with certain institutional investors [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 3,598,072 | ||||||||||||||||||||||||
Purchase agreement with certain institutional investors [Member] | Additionally Warrants Issued [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 225,981 | ||||||||||||||||||||||||
Securities Purchase Agreements [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Exercise price per share | $ / shares | $ 6 | $ 5.14 | |||||||||||||||||||||||
Number of warrants issued | 416,667 | 408,457 | |||||||||||||||||||||||
Warrants exercisable, description | exercisable from June 12, 2019 until December 12, 2024 | exercisable from June 5, 2019 or June 6, 2019 until June 5, 2024 or June 6, 2024 | exercisable from June 5, 2019 or June 6, 2019 until June 5, 2024 or June 6, 2024 | exercisable from April 5, 2019 until October 7, 2024 | |||||||||||||||||||||
Issuance of ordinary shares, shares | 833,334 | 1,464,665 | 1,464,665 | 816,914 | |||||||||||||||||||||
Exercise price ordinary shares | $ / shares | $ 6 | $ 7.50 | $ 7.50 | $ 5.2025 | |||||||||||||||||||||
Securities Purchase Agreements [Member] | Israeli [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Exercise price ordinary shares | $ / shares | $ 0.25 | ||||||||||||||||||||||||
Securities Purchase Agreements [Member] | Warrants To Purchase Ordinary Shares[Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Warrants exercisable, description | exercisable from June 12, 2019, until June 10, 2024 | exercisable from June 5, 2019, until June 5, 2024 | exercisable from June 5, 2019, until June 5, 2024 | exercisable from April 5, 2019 until April 3, 2024 | |||||||||||||||||||||
Issuance of ordinary shares, shares | 50,000 | 87,880 | 87,880 | 49,015 | |||||||||||||||||||||
Exercise price ordinary shares | $ / shares | $ 7.50 | $ 9.375 | $ 9.375 | $ 6.503125 | |||||||||||||||||||||
Certain institutional purchasers [Member] | Offering of ordinary shares in February 2020 [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 3,740,100 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 4,675,125 | ||||||||||||||||||||||||
Certain institutional purchasers [Member] | Offering of ordinary shares in February 2020 Two [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 230,160 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 359,625 | ||||||||||||||||||||||||
Certain institutional purchasers [Member] | Offering of ordinary shares in July 2020 [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 2,020,441 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 3,555,976 | ||||||||||||||||||||||||
Certain institutional purchasers [Member] | Offering of ordinary shares in December 2020 [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 3,598,072 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 4,821,416 | ||||||||||||||||||||||||
Certain institutional purchasers [Member] | December 2020 private placement [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Number of warrants issued | 225,981 | ||||||||||||||||||||||||
Proceeds From Warrant Exercises | $ | $ 405,003 | ||||||||||||||||||||||||
Kreos Capital [Member] | |||||||||||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||||||||||
Drawdown amount under loan agreement | $ | $ 8,000 | ||||||||||||||||||||||||
[1] | See Note 8b. |
RESEARCH COLLABORATION AGREEM_2
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Research Collaboration Agreement and License Agreement (Textual) | |||
Research and development expenses | $ 2,939 | $ 3,459 | $ 5,348 |
License Agreement and Collaboration Agreement [Member] | |||
Research Collaboration Agreement and License Agreement (Textual) | |||
Research and development expenses | $ 293 | $ 762 | $ 1,600 |
PAYCHECK PROTECTION PROGRAM L_2
PAYCHECK PROTECTION PROGRAM LOAN (Details Textual) - Paycheck Protection Program Loan [Member] - Silicon Valley Bank [Member] $ in Thousands | 1 Months Ended |
Apr. 21, 2020USD ($) | |
Debt Instrument [Line Items] | |
Unsecured promissory note | $ 392 |
Interest rate | 1.00% |
Initial period of loan | 2 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (12,780) | $ (12,992) | $ (15,599) |
Foreign | 138 | 67 | 55 |
Loss before income taxes | $ (12,642) | $ (12,925) | $ (15,544) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 123 | $ 95 | $ 64 |
Deferred | (29) | (44) | (57) |
Taxes on income | 94 | 51 | 7 |
Domestic | |||
Foreign | 94 | 51 | 7 |
Taxes on income | $ 94 | $ 51 | $ 7 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Carry forward tax losses | $ 47,323 | $ 41,941 | ||
Research and development carry forward expenses-temporary differences | 718 | 946 | ||
Accrual and reserves | 373 | 341 | ||
Lease liabilities | 261 | 390 | ||
Total deferred tax asset | 48,675 | 43,618 | ||
Deferred tax liabilities: | ||||
Right-of-use asset | (261) | (390) | ||
Net deferred tax assets | 48,414 | 43,228 | ||
Valuation allowance | (48,098) | (42,941) | $ (36,392) | $ (29,655) |
Net deferred tax assets | $ 316 | $ 287 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ (42,941) | $ (36,392) | $ (29,655) |
Changes due to exchange rate differences | (1,488) | (2,929) | (2,055) |
Adjustment previous year loss | (735) | ||
Additions during the year | (3,669) | (3,620) | (3,947) |
Balance at end of year | $ (48,098) | $ (42,941) | $ (36,392) |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Loss before taxes, as reported in the consolidated statements of operations | $ (12,642) | $ (12,925) | $ (15,544) |
Statutory tax rate | 23.00% | 23.00% | 23.00% |
Theoretical tax benefits on the above amount at the Israeli statutory tax rate | $ (2,908) | $ (2,973) | $ (3,575) |
Income tax at rate other than the Israeli statutory tax rate | 7 | 3 | (1) |
Non-deductible expenses including equity-based compensation expenses and other | 102 | 185 | 255 |
Operating losses and other temporary differences for which valuation allowance was provided | 3,669 | 3,620 | 3,947 |
Permanent differences | (784) | (706) | (651) |
Other | 8 | (78) | 32 |
Actual tax expense | $ 94 | $ 51 | $ 7 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | Dec. 29, 2010 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes (Textual) | ||||
Statutory tax rate | 23.00% | 23.00% | 23.00% | |
Beneficiary enterprise from productive activity, tax exemption period | 10 years | |||
Beneficiary enterprise from productive activity, maximum time from period of election for tax exemption | 12 years | |||
Carry-forward losses | $ 74 | |||
Description of income tax law for encouragement of capital investments | the Knesset approved an additional amendment to the Law for the Encouragement of Capital Investments, 1959. According to the amendment, a reduced uniform corporate tax rate for exporting industrial enterprises (over 25%) was established. The reduced tax rate will not be program dependent and will apply to the industrial enterprise’s entire income. The tax rates for industrial enterprises have been reduced. In August 2013, the Israeli Knesset approved an amendment to the Investment Law, pursuant to which the rates for development area A will be 9% and for the rest of the country- 16% in 2014 and thereafter. The Amendment also prescribes that any dividends distributed to individuals or foreign residents from a preferred enterprise’s earnings as above will be subject to taxes at a rate of 20% (subject to tax treaty benefits) | the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the Amendment”) was published. According to the Amendment, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 (and thereafter the tax rate applicable to preferred enterprises located in other areas remains at 16%) | ||
Minimum [Member] | ||||
Income Taxes (Textual) | ||||
Beneficiary enterprise from productive activity, tax rate on dividend distributions from tax exempt income | 10.00% | |||
Maximum [Member] | ||||
Income Taxes (Textual) | ||||
Beneficiary enterprise from productive activity, tax rate on dividend distributions from tax exempt income | 25.00% | |||
Israel Tax Authority [Member] | ||||
Income Taxes (Textual) | ||||
Statutory tax rate | 23.00% | 23.00% | 23.00% | |
ReWalk Robotics Inc [Member] | ||||
Income Taxes (Textual) | ||||
Statutory tax rate | 21.00% | 21.00% | 21.00% | |
Carry-forward losses | $ 205,800 | |||
Net operating carry-forward losses, terms | 20 years | |||
ReWalk Robotics GMBH [Member] | ||||
Income Taxes (Textual) | ||||
Statutory tax rate | 30.00% | 30.00% | 30.00% |
FINANCIAL EXPENSES (INCOME), _3
FINANCIAL EXPENSES (INCOME), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transactions and other | $ (38) | $ (9) | $ (34) |
Financial expenses related to loan agreement with Kreos | 907 | 1,499 | |
Bank commissions | 25 | 23 | 31 |
Financial expenses, net | $ (13) | $ 921 | $ 1,496 |
GEOGRAPHIC INFORMATION AND MA_3
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Total revenues | $ 5,966 | $ 4,393 | $ 4,873 |
Israel [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | 2 | ||
United States [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | 2,519 | 1,746 | 2,003 |
Europe [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | 3,381 | 2,631 | 2,832 |
Asia Pacific [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | 60 | 8 | 36 |
Latin America [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | 6 | ||
Africa [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues | $ 6 | $ 2 |
GEOGRAPHIC INFORMATION AND MA_4
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Details 1) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,165 | $ 1,786 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 629 | 953 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 493 | 790 |
Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 43 | $ 43 |
GEOGRAPHIC INFORMATION AND MA_5
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Details 2) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Customer A [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk | 11.00% | 0.00% | [1] | 0.00% | [1] | |
Customer B [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk | 0.00% | [1] | 10.00% | 15.00% | ||
[1] | Less than 10% |
GEOGRAPHIC INFORMATION AND MA_6
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Details Textual) | 12 Months Ended |
Dec. 31, 2021segment | |
Geographic Information and Major Customer and Product Data (Textual) | |
Number of reportable segments | 1 |