Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ReWalk Robotics Ltd. | |
Entity Central Index Key | 0001607962 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 7,305,151 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36612 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | L3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 20,410 | $ 9,546 | |
Trade receivable, net | 572 | 758 | |
Prepaid expenses and other current assets | 1,175 | 693 | |
Inventories | 2,980 | 2,240 | |
Total current assets | 25,137 | 13,237 | |
LONG-TERM ASSETS | |||
Restricted cash and other long term assets | 1,045 | 1,099 | |
Operating lease right-of-use assets | 1,764 | ||
Property and equipment, net | 480 | 626 | |
Total long-term assets | 3,289 | 1,725 | |
Total assets | 28,426 | 14,962 | |
CURRENT LIABILITIES | |||
Current maturities of long term loan | 4,443 | 1,722 | |
Current maturities of operating leases | 612 | ||
Trade payables | 3,043 | 2,328 | |
Employees and payroll accruals | 594 | 650 | |
Deferred revenues | 339 | 237 | |
Other current liabilities | 428 | 445 | |
Total current liabilities | 9,459 | 5,382 | |
LONG-TERM LIABILITIES | |||
Long term loan, net of current maturities | 2,983 | 6,965 | |
Deferred revenues | 509 | 431 | |
Non-current operating leases | 1,293 | ||
Other long-term liabilities | 67 | 239 | |
Total long-term liabilities | 4,852 | 7,635 | |
Total liabilities | 14,311 | 13,017 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
Shareholders' equity: | |||
Ordinary share of NIS 0.25 par value-Authorized: 60,000,000 shares at September 30, 2019 and 10,000,000 shares at December 31, 2018; Issued and outstanding: 7,300,072 and 2,813,087 shares at September 30, 2019 and December 31, 2018, respectively (1) | [1] | 503 | 193 |
Additional paid-in capital | 178,506 | 154,670 | |
Accumulated deficit | (164,894) | (152,918) | |
Total shareholders' equity | 14,115 | 1,945 | |
Total liabilities and shareholders' equity | $ 28,426 | $ 14,962 | |
[1] | Reflects one-for-twenty-five reverse share split that became effective on April 1, 2019. See Note 7a to the condensed consolidated financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in NIS per share) | $ 0.25 | $ 0.25 |
Ordinary shares, authorized | 60,000,000 | 10,000,000 |
Ordinary shares, issued | 7,300,072 | 2,813,087 |
Ordinary shares, outstanding | 7,300,072 | 2,813,087 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,234 | $ 1,617 | $ 3,692 | $ 4,966 |
Cost of revenues | 585 | 855 | 1,682 | 2,755 |
Gross profit | 649 | 762 | 2,010 | 2,211 |
Operating expenses: | ||||
Research and development, net | 1,018 | 1,597 | 4,292 | 5,645 |
Sales and marketing | 1,453 | 1,926 | 4,571 | 6,187 |
General and administrative | 1,209 | 1,362 | 3,988 | 5,620 |
Total operating expenses | 3,680 | 4,885 | 12,851 | 17,452 |
Operating loss | (3,031) | (4,123) | (10,841) | (15,241) |
Financial expenses, net | 360 | 405 | 1,131 | 1,412 |
Loss before income taxes | (3,391) | (4,528) | (11,972) | (16,653) |
Income taxes (tax benefit) | (2) | 5 | 4 | 4 |
Net loss | $ (3,389) | $ (4,533) | $ (11,976) | $ (16,657) |
Net loss per ordinary share, basic and diluted | $ (0.46) | $ (3.19) | $ (2.27) | $ (12.7) |
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted | 7,290,791 | 1,419,355 | 5,284,451 | 1,311,584 |
Condensed Statements of Changes
Condensed Statements of Changes in Shareholders' Equity (Deficiency) (Unaudited) - USD ($) $ in Thousands | Ordinary Share | Additional paid-in capital | Accumulated deficit | Total | ||
Balance at Dec. 31, 2017 | $ 84 | $ 134,843 | $ (131,220) | $ 3,707 | ||
Balance, shares at Dec. 31, 2017 | 1,200,146 | |||||
Cumulative effect to accumulated deficit from adoption of a new accounting standard | (23) | (23) | ||||
Share-based compensation to employees and non-employees | 2,342 | 2,342 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | [1] | |||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 11,140 | |||||
Issuance of ordinary shares in investment agreement, net of issuance expenses in an amount of $830 | $ 12 | 4,283 | 4,295 | |||
Issuance of ordinary shares in investment agreement, net of issuance expenses in an amount of $830, shares | 164,715 | |||||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses | $ 4 | 1,111 | 1,115 | |||
Issuance of ordinary shares in at-the-market offering, net of issuance expense, shares | 49,882 | |||||
Net loss | (16,657) | (16,657) | ||||
Balance at Sep. 30, 2018 | $ 100 | 142,579 | (147,900) | (5,221) | ||
Balance, shares at Sep. 30, 2018 | 1,425,883 | |||||
Balance at Jun. 30, 2018 | $ 100 | 142,003 | (143,367) | (1,264) | ||
Balance, shares at Jun. 30, 2018 | 1,419,355 | |||||
Share-based compensation to employees and non-employees | 523 | 523 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | [1] | |||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 2,986 | |||||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses | [1] | 53 | 53 | |||
Issuance of ordinary shares in at-the-market offering, net of issuance expense, shares | 3,542 | |||||
Net loss | (4,533) | (4,533) | ||||
Balance at Sep. 30, 2018 | $ 100 | 142,579 | (147,900) | (5,221) | ||
Balance, shares at Sep. 30, 2018 | 1,425,883 | |||||
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 | 869 | 869 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | $ 1 | 1 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 27,985 | |||||
Issuance of ordinary shares in a "best efforts" offering, net of issuance expenses in the amount of $686 | [2] | $ 52 | 3,632 | 3,684 | ||
Issuance of ordinary shares in a "best efforts" offering, net of issuance expenses in the amount of $686, shares | [2] | 760,000 | ||||
Exercise of pre-funded warrants and warrants | [2],[3] | $ 40 | 1,461 | 1,501 | ||
Exercise of pre-funded warrants and warrants, shares | [2],[3] | 584,087 | ||||
Issuance of ordinary shares in a "Registered Direct" offerings, net of issuance expenses in the amount of $1,125 | [2] | $ 115 | 8,010 | 8,125 | ||
Issuance of ordinary shares in a "Registered Direct" offerings, net of issuance expenses in the amount of $1,125, shares | [2] | 1,650,248 | ||||
Issuance of ordinary shares in a "Warrant exercise" agreement, net of issuance expenses in the amount of $1,019 | [2] | $ 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 | [2] | 1,464,665 | ||||
Net loss | (11,976) | (11,976) | ||||
Balance at Sep. 30, 2019 | $ 503 | 178,506 | (164,894) | 14,115 | ||
Balance, shares at Sep. 30, 2019 | 7,300,072 | |||||
Balance at Jun. 30, 2019 | $ 503 | 178,270 | (161,505) | 17,268 | ||
Balance, shares at Jun. 30, 2019 | 7,289,110 | |||||
Share-based compensation to employees and non-employees | 236 | 236 | ||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees | [1] | |||||
Issuance of ordinary shares upon exercise of options to purchase ordinary shares and RSUs by employees and non-employees, shares | 10,962 | |||||
Net loss | (3,389) | (3,389) | ||||
Balance at Sep. 30, 2019 | $ 503 | $ 178,506 | $ (164,894) | $ 14,115 | ||
Balance, shares at Sep. 30, 2019 | 7,300,072 | |||||
[1] | Represents an amount lower than $1. | |||||
[2] | See Note 7f to the condensed consolidated financial statements. | |||||
[3] | See Note 7d to the condensed consolidated financial statements. |
Condensed Statements of Chang_2
Condensed Statements of Changes in Shareholders' Equity (Deficiency) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
At-the-Market Offering [Member] | |||
Issuance expenses, amount | $ 39 | $ 237 | |
Investment Agreement [Member] | |||
Issuance expenses, amount | $ 830 | ||
Best Efforts [Member] | |||
Issuance expenses, amount | $ 686 | ||
Registered Direct [Member] | |||
Issuance expenses, amount | 1,125 | ||
Warrant Exercise [Member] | |||
Issuance expenses, amount | $ 1,019 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | |||
Cash flows used in operating activities: | ||||
Net loss | $ (11,976) | $ (16,657) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation | 242 | 351 | ||
Share-based compensation to employees and non-employees | 869 | 2,342 | ||
Deferred taxes | (67) | (13) | ||
Financial expenses related to long term loan | 133 | |||
Changes in assets and liabilities: | ||||
Trade receivables, net | 186 | (83) | ||
Prepaid expenses, operating lease right-of-use assets and other assets | (397) | 189 | ||
Inventories | (828) | 1,171 | ||
Trade payables | 625 | 491 | ||
Employees and payroll accruals | (56) | (202) | ||
Deferred revenues and advances from customers | 180 | 192 | ||
Other liabilities | (3) | (88) | ||
Net cash used in operating activities | (11,225) | (12,174) | ||
Cash flows used in investing activities: | ||||
Purchase of property and equipment | (8) | (3) | ||
Net cash used in investing activities | (8) | (3) | ||
Cash flows from financing activities: | ||||
Repayment of long term loan | (1,261) | (3,063) | ||
Issuance of ordinary shares in at-the-market offering, net of issuance expenses paid in the amount of $123 | [1] | 1,229 | ||
Issuance of ordinary shares in investment agreement, net of issuance expenses in an amount of $343 | [1] | 4,657 | ||
Issuance of ordinary shares in a "best efforts" offering, net of issuance expenses in the amount of $ 686 | [1] | 3,684 | ||
Issuance of ordinary shares in a "registered direct" offerings, net of issuance expenses in the amount of $1,035 | [1] | 8,215 | ||
Issuance of ordinary shares in a "warrant exercise" agreement, net of issuance expenses in the amount of $ 1,019 | [1] | 9,966 | ||
Exercise of pre-funded warrants and warrants | [1],[2] | 1,429 | ||
Net cash provided by financing activities | 22,033 | 2,823 | ||
Increase (decrease) in cash, cash equivalents, and restricted cash | 10,800 | (9,354) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 10,347 | 15,423 | ||
Cash, cash equivalents, and restricted cash at end of period | 21,147 | 6,069 | ||
Supplemental disclosures of non-cash flow information | ||||
At-the-market offering expenses not yet paid | [1] | 114 | ||
Investment agreement issuance cost not yet paid | [1] | 362 | ||
"Registered direct" offerings issuance cost not yet paid | 90 | [1] | ||
Classification of other current assets to property and equipment, net | 236 | |||
Classification of inventory to property and equipment, net | 88 | |||
Cashless exercise of pre-funded warrants | [1],[2] | 72 | ||
Initial recognition of operating lease right-of-use assets | 2,099 | |||
Initial recognition of operating lease liabilities | (2,249) | |||
Supplemental cash flow information: | ||||
Cash and cash equivalents | 20,410 | 5,230 | ||
Restricted cash included in other long term assets | 737 | 839 | ||
Total Cash, cash equivalents, and restricted cash | $ 21,147 | $ 6,069 | ||
[1] | See Note 7f to the condensed consolidated financial statements. | |||
[2] | See Note 7d to the condensed consolidated financial statements. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
At-the-Market Offering [Member] | ||
Issuance expenses paid | $ 123 | |
Investment Agreement [Member] | ||
Issuance expenses paid | 343 | |
Best Efforts [Member] | ||
Issuance expenses paid | 686 | |
Registered Direct [Member] | ||
Issuance expenses paid | 1,035 | |
Warrant Exercise [Member] | ||
Issuance expenses paid | $ 1,019 |
General
General | 9 Months Ended |
Sep. 30, 2019 | |
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 of Israel on June 20, 2001 and commenced operations on the same date. b. RRL has two wholly-owned subsidiaries: (i) ReWalk Robotics Inc. ("RRI") incorporated under the laws of Delaware on February 15, 2012 and (ii) ReWalk Robotics GMBH. ("RRG") incorporated under the laws of Germany on January 14, 2013. c. The Company is designing, developing and commercializing robotic exoskeletons that allow individuals with mobility impairments or other medical conditions the ability to stand and walk once again. The Company has developed and is continuing to commercialize the ReWalk, an exoskeleton designed for individuals with paraplegia that uses our patented tilt-sensor technology and an on-board computer and motion sensors to drive motorized legs that power movement. The ReWalk system consists of a light wearable brace support suit which integrates motors at the joints, rechargeable batteries, an array of sensors and a computer-based control system to power knee and hip movement. There are currently two types of ReWalk products: ReWalk Personal and ReWalk Rehabilitation. ReWalk Personal is designed for everyday use by individuals at home and in their communities and is custom-fitted for each user. ReWalk Rehabilitation is designed for the clinical rehabilitation environment where it provides individuals access to valuable exercise and therapy. Additionally, the Company developed and, in June 2019, started to commercialize the ReStore following receipt of European Union CE mark and United States Food and Drug Administration ("FDA"). The ReStore is a powered, lightweight soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke. d. On March 27, 2019, the Board of Directors of the Company authorized a reverse share split of the Company's issued and outstanding common shares at a ratio of 1-for-25, which became effective on April 1, 2019. At the effective time, every twenty-five shares of the Company's common shares that were issued and outstanding were automatically combined into one issued and outstanding share, the par value per share of the ordinary shares changed to NIS 0.25. All authorized, issued and outstanding share and per share amounts contained in the accompanying Condensed Consolidated Financial Statements have been adjusted to reflect this reverse share split for all prior periods presented. All share and per share data included in these condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. e. The Company has an accumulated deficit in the total amount of approximately $165 million as of September 30, 2019 and negative cash flow from operations of $11 million, and further losses are anticipated in the development of its business. Those factors raise substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months with existing cash on hand, reducing operating spend, and future issuances of equity and debt securities, or through a combination of the foregoing. However, the Company will need to seek additional sources of financing if the Company requires more funds than anticipated during the next 12 months or in later periods. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The condensed consolidated financial statements for the three and nine months ended September 30, 2019 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company's ability to continue as a going concern. |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Unaudited Interim Condensed Consolidated Financial Statements [Abstract] | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | NOTE 2:- UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and standards of the Public Company Accounting Oversight Board for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's (i) consolidated financial position as of September 30, 2019, (ii) consolidated results of operations for the three and nine months ended September 30, 2019 and (iii) consolidated statements of changes in shareholders' equity (deficiency) (iv) consolidated cash flows for the nine months ended September 30, 2019. The results for the three and nine months periods ended September 30, 2019, as applicable, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES a. 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. Disaggregation of Revenues Three Months Ended Nine Months Ended 2019 2018 2019 2018 Units placed $ 1,104 $ 1,544 $ 3,350 $ 4,744 Spare parts and warranties 130 73 342 222 Total Revenues $ 1,234 $ 1,617 $ 3,692 $ 4,966 Units placed We currently offer three products: ReWalk Personal, ReWalk Rehabilitation units for Spinal Cord Injury ("SCI Products") and ReStore soft suit exoskeleton for rehabilitation of individuals suffering from stroke. SCI Products are currently designed for everyday use by paraplegic individuals at home and in their communities, and is custom fitted for each user, as well as for use by paraplegia patients in the clinical rehabilitation environment, where it provides individuals access to valuable exercise and therapy. The 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. Units placed includes revenue from sales of SCI Products and ReStore. We also offer a rent-to-purchase model in which we recognize revenue according to the agreed rental monthly fee. For units placed, we transfer control and recognize a sale when title has passed to our customer and rental revenue is recognized ratably according to the agreed rental monthly fee. Each unit placed is considered an independent, unbundled performance obligation. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. For spare part sales, we transfer control and recognize a sale when title has passed to our 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, we updated our service policy for SCI Products to include a five-year warranty compared to a period of two years that were included in the past for parts and services. The first two years are considered as assurance type warranty and the additional period is considered an extended service arrangement, which is a service type warranty. An assurance type warranty is not accounted for as separate performance obligations under the revenue model. A service type warranty is either sold with a unit or separately for units for which the warranty has expired. Revenue is then recognized ratably over the life of the warranty. The ReStore device is offered with two-year warranty which are considered as assurance type warranty. Contract balances September 30, December 31, 2019 2018 Trade receivable, net (1) $ 572 $ 758 Deferred revenues (1) (2) $ 848 $ 668 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $223 thousand of December 31, 2018 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2019. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company's unfilled performance obligations as of September 30, 2019 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $893 thousand, which is fulfilled over one to five years. b. New Accounting Pronouncements Recently Implemented Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update, or 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. Prior to our adoption of ASU 2016-02, when our lease agreements contained rent payment relief and rent escalation clauses, we recorded a deferred rent asset or liability equal to the difference between the rent expense and the future minimum lease payments due. Operating leases are recognized on the balance sheet as right-of-use assets, current maturities of operating leases and noncurrent operating lease liabilities. The Company used the modified retrospective transition method, under which we applied the standard as a cumulative effect adjustment to each lease that had commenced as of the beginning of January 1, 2019 and did not apply the standard to comparative historical periods. In addition, the Company elected to apply the package of practical expedients permitted under the transition guidance, which among other things, allowed the Company to carry forward the historical lease classification. The Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, and not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. 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 in the statement of operations over the lease term. As a result, the Company no longer recognizes deferred rent on the balance sheet. Upon adoption of this standard on January 1, 2019, the Company recorded right–of–use assets and corresponding lease liabilities of $2,099 and $2,249, respectively. As of September 30, 2019, the right–of–use assets and corresponding lease liabilities in the Company's condensed consolidated balance sheets were $1,764 and $1,905, respectively. The adoption of this standard did not have a material impact on the Company's condensed consolidated statements of operations or cash flows. See also note 5b - Lease commitment. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05, which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Upon the initial recognition of such assets, which will be based on, among other things, historical information, current conditions, and reasonable supportable forecasts. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The update is effective for the Company in the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. c. Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. September 30, December 31, 2019 2018 Customer A 19 % * ) Customer B 18 % * ) Customer C 18 % * ) Customer D 16 % * ) Customer E 14 % * ) Customer F * ) 28 % Customer G * ) 15 % Customer H * ) 14 % Customer I * ) 13 % Customer J * ) 12 % *) 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 September 30, 2019 and December 31, 2018 trade receivables are presented net of allowance for doubtful accounts in the amount of $31 thousand and $32 thousand, respectively, and net of sales return reserve of $86 thousand and $105 thousand as of September 30, 2019 and December 31, 2018, respectively. d. Warranty provision The Company provided a two-year standard warranty for its SCI Products. In the beginning of 2018, we updated our service policy for new SCI Products sold to include a five-year warranty. ReStore service policy includes two-year warranty. 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 Balance at December 31, 2018 $ 304 Provision 142 Usage (201 ) Balance at September 30, 2019 $ 245 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4:- INVENTORIES The components of inventories are as follows (in thousands): September 30, December 31, 2019 2018 Finished products $ 2,208 $ 2,240 Raw materials 772 — $ 2,980 $ 2,240 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 5:- COMMITMENTS AND CONTINGENT LIABILITIES a. Purchase commitments: 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 September 30, 2019, non-cancelable outstanding obligations to the Company's contract manufacturer and raw material vendors amounted to approximately $1.6 million. b. Operating lease commitment: (i) The Company operates from leased facilities in Israel, the United States and Germany. These leases expire between 2019 and 2023. A portion of our facilities leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. (ii) RRL and RRG lease cars for their employees under cancelable operating lease agreements expiring at various dates in between 2019 and 2022. A subset of our cars leases is considered variable. The variable lease payments for such cars leases are based on actual mileage incurred at the stated contractual rate. RRL and RRG have an option to be released from these agreements, which may result in penalties in a maximum amount of approximately $38 thousand as of September 30, 2019. 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 condensed consolidated balance sheets as of September 30, 2019 are as follows (in thousands): 2019 $ 164 2020 627 2021 619 2022 568 2023 439 Total lease payments 2,417 Less: imputed interest (512 ) Present value of future lease payments 1,905 Less: current maturities of operating leases (612 ) Non-current operating leases $ 1,293 Weighted-average remaining lease term (in years) 3.29 Weighted-average discount rate 12.5 % Lease expense under the Company's operating leases were $185 thousand and $182 thousand for the three months ended September 30, 2019 and 2018, respectively. For the nine months ended September 30, 2019 and 2018 the lease expense were $560 thousand and $561 thousand, respectively. c. Royalties: The Company's research and development efforts are financed, in part, through funding from the Israel Innovation Authority (the "IIA") and Israel-U.S. Binational Industrial Research and Development Foundation (the "BIRD"). Since the Company's inception through September 30, 2019, the Company received funding from the IIA and BIRD in the total amount of $1.97 million and $500 thousand, respectively. Out of the $1.97 million in funding from the IIA, a total amount of $1.57 million were royalty bearing grants (as of September 30, 2019, the Company paid royalties to the IIA in the total amount of $50 thousand), while a total amount of $400 thousand was received in consideration of 209 convertible preferred A shares, which converted after our 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%-3.5% 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. The Company was obligated to pay royalties to BIRD amounting to 5% of the sales of the products and other related revenues generated from such projects, up to 150% of the grants received. Additionally, the License Agreement requires the Company to pay Harvard royalties on net sales, See note 6 below for more information about the Collaboration Agreement and the License Agreement. During the three and nine months ended September 30, 2019, $8 and $13 thousand, respectively, were recorded as royalties expenses in cost of revenues. No royalties expenses were recorded during the three and nine months ended September 30, 2018. As of September 30, 2019, 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 research and development 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 discussed in Note 6 to the Company's audited consolidated financial statements in its annual report on Form 10-K for the fiscal year ended December 31, 2018 (the "2018 Form 10-K"), the Company is party to a loan agreement, as amended (the "Loan Agreement"), with Kreos Capital V (Expert Fund) Limited ("Kreos"), pursuant to which Kreos extended a $20 million line of credit to the Company. In connection with the Loan Agreement, the Company granted Kreos a first priority security interest over all of its assets, including intellectual property and equity interests in its subsidiaries, subject to certain permitted security interests. The Company's other long-term assets in the amount of $737 thousand have been pledged to third parties as a security in respect to lease agreements . e. Legal Claims: Occasionally the Company is involved in various claims, lawsuits, regulatory examinations, investigations and other legal matters arising, for the most part, in the ordinary course of business. The outcome of litigation and other legal matters is inherently uncertain. In making a determination regarding accruals, using available information, the Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which the Company is a party and records a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Where the Company determines an unfavorable outcome is not probable or reasonably estimable, the Company does not accrue for any potential litigation loss. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of the Company's defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from the Company's current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to the Company's consolidated results of operations, liquidity or financial condition. Between September 2016 and January 2017, eight putative class actions were commenced on behalf of alleged shareholders that purchased or acquired the Company's ordinary shares pursuant and/or traceable to the registration statement on Form F-1 (File No. 333-197344) used in connection with the Company's initial public offering (the "IPO"). As of September 30, 2019, seven were dismissed and were not appealed within the deadline for appeal and one, which commenced in the United States District Court for the District of Massachusetts (the "District Court"), was partially dismissed and timely appealed. These actions involved or involve claims under various sections of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), against the Company, certain of the Company's current and former directors and officers, the underwriters of the IPO and certain other defendants. As cited above, the action commenced in the District Court, alleging violations of Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act, was partially dismissed on August 23, 2018. In particular, the District Court granted the motion to dismiss the claims under Sections 11 and 15 of the Securities Act, finding that the plaintiff failed to plead a false or misleading statement in the IPO registration statement. The District Court did not address the claims under Sections 10(b) and 20(a) of the Exchange Act because, as a result of the dismissal of the claims under the Securities Act, the lead plaintiff lacked standing to pursue those claims. On September 10, 2018, the lead plaintiff sought leave to amend his complaint to add a new plaintiff that purportedly has standing to pursue Exchange Act claims, and the Company opposed the motion to amend on September 24, 2018. On May 16, 2019, the court denied the plaintiff's motion to amend and the complaint was dismissed. The plaintiff timely appealed to the United States Court of Appeals for the First Circuit. The plaintiffs filed their appellate brief and the Company's opposition is due on December 20, 2019. Based on information currently available and the current stage of the litigation, we are unable to reasonably estimate a possible loss or range of possible losses, if any, with regard to the remaining lawsuit in the District Court; therefore, no litigation reserve has been recorded in our condensed consolidated balance sheets as of September 30, 2019. We will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times if and when it is probable that a loss will be incurred and the amount of the loss is reasonably estimable. |
Research Collaboration Agreemen
Research Collaboration Agreement and License Agreement | 9 Months Ended |
Sep. 30, 2019 | |
Research and Development [Abstract] | |
RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT | NOTE 6:- RESEARCH COLLABORATION AGREEMENT AND LICENSE AGREEMENT On May 16, 2016, the Company entered into a Research Collaboration Agreement and an Exclusive License Agreement with Harvard College. 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. 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, subject to a minimum funding commitment under applicable circumstances. The Collaboration Agreement will expire on May 16, 2022. 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 requires 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 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 September 30, 2019, 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's total payment obligation under the Collaboration Agreement and the License Agreement is $7.2 million, some of which is subject to a minimum funding commitment under applicable circumstances as indicated above. The Company has recorded expenses in the amount of $252 thousand and $1,364 thousand which are part of the total payment obligation indicated above, as research and development expenses related to the License Agreement and to the Collaboration Agreement for the three and nine months ended September 30, 2019, respectively. No withholding tax was deducted from the Company's payments to Harvard in respect of the Collaboration Agreement and the License Agreement since this is not taxable income in Israel in accordance with Section 170 of the Israel Income Tax Ordinance 1961-5721. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 7:- 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 Registrar of Companies of the State of Israel to effect 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 condensed consolidated financial statements, for periods before the three months ended September 30, 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. b. Share option plans: As of September 30, 2019, and December 31, 2018, the Company had reserved 9,362 and 52,298 ordinary shares, respectively, for issuance to the Company's and its affiliates' respective employees, directors, officers and consultants pursuant to equity awards granted under the Company's 2014 Incentive Compensation Plan (the "2014 Plan"). Options to purchase ordinary shares generally vest over four years, with certain options to non-employee directors vesting quarterly over one year. Any option that is forfeited or canceled before expiration becomes available for future grants under the 2014 Plan. The fair value for options granted during the nine months ended September 30, 2019 and 2018 was estimated at the date of the grant using a Black-Scholes-Merton option pricing model with the following assumptions: Nine Months Ended 2019 2018 Expected volatility 57.5 % 57.07 - 61.12% Risk-free rate 2.22 % 2.74% - 2.83% Dividend yield — % —% Expected term (in years) 6.11 6.11 Share price $ 5.37 $ 25.50 - 28.75 The fair value of restricted share units ("RSUs") granted is determined based on the price of the Company's ordinary shares on the date of grant. A summary of employee share options activity during the nine months ended September 30, 2019 is as follows: Number Average Average Aggregate Options outstanding at the beginning of the period 72,655 $ 47.70 6.37 $ 114 Granted 12,425 5.37 Exercised — — Forfeited (7,170 ) 41.80 Options outstanding at the end of the period 77,910 $ 41.46 6.38 $ 230 Options exercisable at the end of the period 45,530 $ 55.80 4.62 $ — A summary of employee RSUs activity during the nine months ended September 30, 2019 is as follows: Number of shares underlying outstanding RSUs Weighted Unvested RSUs at the beginning of the period 26,093 $ 48.78 Granted 87,436 4.69 Vested (27,618 ) 7.27 Forfeited (10,875 ) 18.42 Unvested RSUs at the end of the period 75,036 $ 42.60 The weighted average grant date fair value of options granted during the nine months ended September 30, 2019 and 2018 were $2.98 and $15.25, respectively. The weighted average grant date fair value of RSUs granted during the nine months ended September 30, 2019 and 2018 were $4.69 and $27.25, 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 that hold options with positive intrinsic value exercised their options on the last date of the exercise period. No options were exercised during the nine months ended September 30, 2019 and 2018. As of September 30, 2019, there were $1.1 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's 2012 Equity Incentive Plan and its 2014 Plan. This cost is expected to be recognized over a period of approximately 1.77 years. The number of options and RSUs outstanding as of September 30, 2019 is set forth below, with options separated by range of exercise price. Range of exercise price Options and RSUs outstanding as of Weighted average remaining contractual life (years) (1) Options Weighted average remaining contractual life (years) (1) RSUs only 75,036 — — — $5.37 12,425 9.50 — — $20.42 - $33.75 37,691 6.46 20,981 4.78 $37.14 - $38.75 12,476 3.50 12,476 3.50 $50 - $52.5 11,395 5.94 8,158 5.25 $182.5 - $524.25 3,923 6.04 3,915 6.03 152,946 6.80 45,530 4.62 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. c. Share-based awards to non-employee consultants: As of September 30, 2019, there are no outstanding options or RSUs held by non-employee consultants. d. Warrants to purchase ordinary shares: The following table summarizes information about warrants outstanding and exercisable as of September 30, 2019: Issuance date Warrants Exercise price per warrant Warrants outstanding and exercisable Contractual (number) (number) December 31, 2015 (1) 4,771 $ 7.500 4,771 See footnote (1) November 1, 2016 (2) 97,496 $ 118.750 97,496 November 1, 2021 December 28, 2016 (3) 1,908 $ 7.500 1,908 See footnote (1) November 20, 2018 (4) 126,839 $ 7.500 126,839 November 20, 2023 November 20, 2018 (5) 106,680 $ 9.375 106,680 November 15, 2023 February 25, 2019 (6) 45,600 $ 7.187 45,600 February 21, 2024 April 5, 2019 (7) 408,457 $ 5.140 408,457 October 7, 2024 April 5, 2019 (8) 49,015 $ 6.503 49,015 April 3, 2024 June 5, 2019 and June 6, 2019 (9) 1,464,665 $ 7.500 1,464,665 June 5, 2024 June 5, 2019 (10) 87,880 $ 9.375 87,880 June 5, 2024 June 12, 2019 (11) 416,667 $ 6.000 416,667 December 12, 2024 June 10, 2019 (12) 50,000 $ 7.500 50,000 June 10, 2024 2,859,978 2,859,978 (1) Represents warrants for ordinary shares issuable upon an exercise price of $7.5 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited, or Kreos, in connection with a loan made by Kreos to us 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 us with or into, or the sale or license of all or substantially all the assets or shares of us 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. None of these warrants had been exercised as of September 30, 2019. (2) Represents warrants issued as part of our follow-on offering in November 2016. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. (3) 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. (4) Represents common warrants that were issued as part of our follow-on offering in November 2018. As of September 30, 2019, warrants to purchase an aggregate 1,651,537 ordinary shares had been exercised. (5) Represents common warrants that were issued to the underwriters as compensation for their role in our follow-on offering in November 2018. (6) Represents warrants that were issued to the exclusive placement agent as compensation for its role in our follow-on offering in February 2019. (7) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in April 2019. (8) Represents warrants that were issued to the placement agent as compensation for its role in our April 2019 registered direct offering. (9) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019 and June 6, 2019, respectively. (10) Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 warrant exercise agreement and concurrent private placement of warrants. (11) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. (12) Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 registered direct offering and concurrent private placement of warrants. e. Share-based compensation expense for employees and non-employees: The Company recognized non-cash share-based compensation expense for both employees and non-employees in the condensed consolidated statements of operations as follows (in thousands): Nine Months Ended 2019 2018 Cost of revenues $ 9 $ 11 Research and development, net 161 330 Sales and marketing 140 352 General and administrative 559 1,649 Total $ 869 $ 2,342 f. Equity raise: 1. At-the-market offering program: On May 10, 2016, the Company entered into an equity distribution agreement (the "Equity Distribution Agreement") with Piper Jaffray & Co. ("Piper Jaffray"), as amended on May 9, 2019, pursuant to which it may offer and sell, from time to time, ordinary shares having an aggregate offering price of up to $25 million, through Piper Jaffray acting as its agent. Subject to the terms and conditions of the Equity Distribution Agreement, Piper Jaffray will use its commercially reasonable efforts to sell on the Company's behalf all of the ordinary shares requested to be sold by the Company, consistent with its normal trading and sales practices. Piper Jaffray may also act as principal in the sale of ordinary shares under the Equity Distribution Agreement. Sales may be made under the Company's shelf registration statement on Form S-3, which was declared effective by the SEC on May 9, 2016, or the Company's shelf registration statement on Form S-3, which was declared effective by the SEC on May 23, 2019 (the "Form S-3"), in what may be deemed "at-the-market" equity offerings as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the "ATM Offering Program"). Sales may be made directly on or through the NASDAQ Capital Market, the existing trading market for the Company's ordinary shares, to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or any other method permitted by law, including in privately negotiated transactions. Piper Jaffray is entitled to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold through it as agent under the Equity Distribution Agreement. Where Piper Jaffray acts as principal in the sale of ordinary shares under the Equity Distribution Agreement, such rate of compensation will not apply, but in no event will the total compensation of Piper Jaffray, when combined with the reimbursement of Piper Jaffray for the out-of-pocket fees and disbursements of its legal counsel, exceed 8.0% of the gross proceeds received from the sale of the ordinary shares. The Company is not required to sell any of its ordinary shares at any time. From the inception of the ATM Offering Program in May 2016 until September 30, 2019, the Company had sold 302,092 ordinary shares under the ATM Offering Program for gross proceeds of $15.7 million and net proceeds to the Company of $14.5 million (after commissions, fees and expenses). Additionally, as of that date, the Company had paid Piper Jaffray compensation for the fixed commission rate of 3.0% in the aggregated amount of $471 thousand and had incurred total expenses (including such commissions) of approximately $1.2 million in connection with the ATM Offering Program. 2. Follow-on offerings In November 2018, the Company entered into an underwriting agreement with H.C. Wainwright & Co., LLC ("H.C. Wainwright"), in connection with the Company's follow-on public offering of 496,040 units, each consisting of one ordinary share and one common warrant to purchase one ordinary share with an exercise price of $7.5 per warrant. Each unit was sold to the public at a price of $7.50 per unit. On November 18, 2018, H.C. Wainwright exercised in full its option to purchase 231,964 ordinary shares for $7.25 per share and/or common warrants to purchase up to an additional 231,964 ordinary shares for $0.25 per warrant. Additionally, the Company issued and sold 1,050,372 pre-funded units at a price to the public of $7.25 per unit. Each unit containing one pre-funded warrant with an exercise price of $0.25 per share and one warrant to purchase one ordinary share with an exercise price of $7.50 per warrant. The total gross proceeds received from the November 2018 follow-on public offering, before deducting commissions, discounts and expenses, were $13.1 million (including proceeds from the exercise of 90,691 pre-funded warrants at the closing of the offering). As of December 31, 2018, additional pre-funded warrants to purchase an aggregate 562,466 ordinary shares had been exercised, for additional proceeds of $140,617. During the three months ended March 31, 2019 additional pre-funded warrants and warrants to purchase an aggregate 119,881 ordinary shares had been exercised, for additional proceeds of $107,303. As compensation for their role in the offering, the Company also issued to the Underwriters warrants to purchase up to 106,680 ordinary shares, which became immediately exercisable starting on November 20, 2018 until November 15, 2023 at $9.375 per share. 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 our 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 our 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 our 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 our June 2019 registered direct offering and concurrent private placement of warrants. 3. Investment agreement On March 6, 2018, the Company entered into an investment agreement with Timwell Corporation Limited, a Hong Kong corporation ("Timwell"), as amended on May 15, 2018 (the "Investment Agreement"), pursuant to which the Company agreed to issue to Timwell, in three different tranches, an aggregate of 640,000 ordinary shares in return for aggregate gross proceeds of $20 million. The closing of each tranche is subject to certain closing conditions. The closing of the first tranche (the "First Tranche Closing") took place on May 15, 2018, upon which Timwell received 160,000 ordinary shares for an aggregate purchase price of $5,000,000, and Timwell and the Company signed a registration rights agreement in the form attached to the Investment Agreement. The net aggregate proceeds of the First Tranche Closing after deducting fees and other related expenses in the amount of approximately $705 thousands were approximately $4.3 million. The remaining investment is to occur in two tranches, including $10 million for the issuance to Timwell of 320,000 ordinary shares (the "Second Tranche") and $5 million for the issuance to Timwell of 160,000 ordinary shares (the "Third Tranch"). The closing of the second and third tranches is subject to specified closing conditions, including, with respect to the second tranche, the signing of a license agreement and a supply agreement and the formation of the China JV (the "China JV") based on the JV Framework Agreement, and, with respect to the third tranche, the successful production of certain ReWalk products by the China JV. The second tranche closing was initially expected to occur by July 1, 2018 and the third tranche closing was initially expected to occur by December 31, 2018 and no later than April 1, 2019. In light of the positions taken by Timwell during the negotiations on definitive joint venture and license agreements, we no longer believe that agreement can be reached on the basis of the original understandings reflected in our Investment Agreement with Timwell. Although we generally remain in dialogue with RealCan, Timwell's affiliate, on alternative pathways that will allow us to commercialize our products in China through RealCan and its affiliates, and also provide for RealCan or an affiliate to invest in us. Due to the current lack of communication, various delays in the process and other barriers to closing, there is a significant risk that we will not reach agreement with RealCan on a modification of the original agreement. As we continue to view China as a market with key opportunities for products designed for stroke patients, we continue to evaluate potential relationships with other groups to penetrate the Chinese market. In May 2018, the Company entered into a fee and release agreement with Canaccord Genuity LLC ("Canaccord Genuity") requiring the Company to pay to Canaccord Genuity, in connection with a settlement, in addition to certain cash amounts, (i) $125 thousand in ordinary shares of the Company after the First Tranche Closing of the Timwell transaction and (ii) $225 thousand in ordinary shares of the Company after the closing of the Second Tranche of the Timwell transaction (or such lower amount if the Second Tranche Closing is less than $10.0 million). The price per share used for calculation of the number of ordinary shares issued by the Company to Canaccord Genuity is based on the volume weighted average price of the Company's ordinary shares as reported on the Nasdaq Capital Market for the five consecutive trading days prior to the date of issuance. The Company is also obligated to pay $100 thousand in cash following the closing of the Third Tranche of $5.0 million (or such lower amount if the Third Tranche Closing is less than $5.0 million). Following the First Tranche Closing in May 15, 2018, the Company issued 4,715 ordinary shares to Canaccord Genuity. |
Financial Expenses, Net
Financial Expenses, Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
FINANCIAL EXPENSES, NET | NOTE 8:- FINANCIAL EXPENSES, NET The components of financial expenses, net were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency transactions and other $ (10 ) $ (13 ) $ (50 ) $ 26 Financial expenses related to loan agreement with Kreos 365 414 1,155 1,364 Bank commissions 5 4 26 22 $ 360 $ 405 $ 1,131 $ 1,412 |
Geographic Information and Majo
Geographic Information and Major Customer and Product Data | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | NOTE 9:- 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 units and services (see Note 1 for a brief description of the Company's business). The following is a summary of revenues within geographic areas: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues based on customer's location: Israel $ — $ — $ 2 $ — United States 569 962 1,492 3,231 Europe 665 553 2,162 1,567 Asia-Pacific — 2 36 10 Latin America — — — 58 Africa — 100 — 100 Total revenues $ 1,234 $ 1,617 $ 3,692 $ 4,966 September 30, December 31, 2019 2018 Long-lived assets by geographic region (*): Israel $ 178 $ 206 United States 227 330 Germany 75 90 $ 480 $ 626 (*) Long-lived assets are comprised of property and equipment, net. Nine Months Ended 2019 2018 Major customer data as a percentage of total revenues: Customer A 13.13 % 47.7 % |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | a. 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. Disaggregation of Revenues Three Months Ended Nine Months Ended 2019 2018 2019 2018 Units placed $ 1,104 $ 1,544 $ 3,350 $ 4,744 Spare parts and warranties 130 73 342 222 Total Revenues $ 1,234 $ 1,617 $ 3,692 $ 4,966 Units placed We currently offer three products: ReWalk Personal, ReWalk Rehabilitation units for Spinal Cord Injury ("SCI Products") and ReStore soft suit exoskeleton for rehabilitation of individuals suffering from stroke. SCI Products are currently designed for everyday use by paraplegic individuals at home and in their communities, and is custom fitted for each user, as well as for use by paraplegia patients in the clinical rehabilitation environment, where it provides individuals access to valuable exercise and therapy. The 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. Units placed includes revenue from sales of SCI Products and ReStore. We also offer a rent-to-purchase model in which we recognize revenue according to the agreed rental monthly fee. For units placed, we transfer control and recognize a sale when title has passed to our customer and rental revenue is recognized ratably according to the agreed rental monthly fee. Each unit placed is considered an independent, unbundled performance obligation. Spare parts and warranties Spare parts are sold to private individuals, rehabilitation facilities and distributors. For spare part sales, we transfer control and recognize a sale when title has passed to our 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, we updated our service policy for SCI Products to include a five-year warranty compared to a period of two years that were included in the past for parts and services. The first two years are considered as assurance type warranty and the additional period is considered an extended service arrangement, which is a service type warranty. An assurance type warranty is not accounted for as separate performance obligations under the revenue model. A service type warranty is either sold with a unit or separately for units for which the warranty has expired. Revenue is then recognized ratably over the life of the warranty. The ReStore device is offered with two-year warranty which are considered as assurance type warranty. Contract balances September 30, December 31, 2019 2018 Trade receivable, net (1) $ 572 $ 758 Deferred revenues (1) (2) $ 848 $ 668 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $223 thousand of December 31, 2018 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2019. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company's unfilled performance obligations as of September 30, 2019 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $893 thousand, which is fulfilled over one to five years. |
New Accounting Pronouncements | b. New Accounting Pronouncements Recently Implemented Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update, or 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. Prior to our adoption of ASU 2016-02, when our lease agreements contained rent payment relief and rent escalation clauses, we recorded a deferred rent asset or liability equal to the difference between the rent expense and the future minimum lease payments due. Operating leases are recognized on the balance sheet as right-of-use assets, current maturities of operating leases and noncurrent operating lease liabilities. The Company used the modified retrospective transition method, under which we applied the standard as a cumulative effect adjustment to each lease that had commenced as of the beginning of January 1, 2019 and did not apply the standard to comparative historical periods. In addition, the Company elected to apply the package of practical expedients permitted under the transition guidance, which among other things, allowed the Company to carry forward the historical lease classification. The Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, and not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. 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 in the statement of operations over the lease term. As a result, the Company no longer recognizes deferred rent on the balance sheet. Upon adoption of this standard on January 1, 2019, the Company recorded right–of–use assets and corresponding lease liabilities of $2,099 and $2,249, respectively. As of September 30, 2019, the right–of–use assets and corresponding lease liabilities in the Company's condensed consolidated balance sheets were $1,764 and $1,905, respectively. The adoption of this standard did not have a material impact on the Company's condensed consolidated statements of operations or cash flows. See also note 5b - Lease commitment. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05, which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Upon the initial recognition of such assets, which will be based on, among other things, historical information, current conditions, and reasonable supportable forecasts. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The update is effective for the Company in the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Concentrations of Credit Risks: | c. Concentrations of Credit Risks: Concentration of credit risk with respect to trade receivable is primarily limited to a customer to which the Company makes substantial sales. September 30, December 31, 2019 2018 Customer A 19 % * ) Customer B 18 % * ) Customer C 18 % * ) Customer D 16 % * ) Customer E 14 % * ) Customer F * ) 28 % Customer G * ) 15 % Customer H * ) 14 % Customer I * ) 13 % Customer J * ) 12 % *) 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 September 30, 2019 and December 31, 2018 trade receivables are presented net of allowance for doubtful accounts in the amount of $31 thousand and $32 thousand, respectively, and net of sales return reserve of $86 thousand and $105 thousand as of September 30, 2019 and December 31, 2018, respectively. |
Warranty provision | d. Warranty provision The Company provided a two-year standard warranty for its SCI Products. In the beginning of 2018, we updated our service policy for new SCI Products sold to include a five-year warranty. ReStore service policy includes two-year warranty. 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 Balance at December 31, 2018 $ 304 Provision 142 Usage (201 ) Balance at September 30, 2019 $ 245 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of disaggregation of revenues | Three Months Ended Nine Months Ended 2019 2018 2019 2018 Units placed $ 1,104 $ 1,544 $ 3,350 $ 4,744 Spare parts and warranties 130 73 342 222 Total Revenues $ 1,234 $ 1,617 $ 3,692 $ 4,966 |
Schedule of Contract balances | September 30, December 31, 2019 2018 Trade receivable, net (1) $ 572 $ 758 Deferred revenues (1) (2) $ 848 $ 668 (1) Balance presented net of unrecognized revenues that were not yet collected. (2) $223 thousand of December 31, 2018 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2019. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company's unfilled performance obligations as of September 30, 2019 and the estimated revenue expected to be recognized in the future related to the service type warranty amounts to $893 thousand, which is fulfilled over one to five years. |
Schedule of concentration of credit risk | September 30, December 31, 2019 2018 Customer A 19 % * ) Customer B 18 % * ) Customer C 18 % * ) Customer D 16 % * ) Customer E 14 % * ) Customer F * ) 29 % Customer G * ) 15 % Customer H * ) 14 % Customer I * ) 13 % Customer J * ) 12 % *) Less than 10% |
Schedule of product warranty liability | US Dollars in Balance at December 31, 2018 $ 304 Provision 142 Usage (201 ) Balance at September 30, 2019 $ 245 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, 2019 2018 Finished products $ 2,208 $ 2,240 Raw materials 772 — $ 2,980 $ 2,240 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments | 2019 $ 164 2020 627 2021 619 2022 568 2023 439 Total lease payments 2,417 Less: imputed interest (512 ) Present value of future lease payments 1,905 Less: current maturities of operating leases (612 ) Non-current operating leases $ 1,293 Weighted-average remaining lease term (in years) 3.29 Weighted-average discount rate 12.5 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Black-Scholes-Merton option pricing model assumptions | Nine Months Ended 2019 2018 Expected volatility 57.5 % 57.07 - 61.12% Risk-free rate 2.22 % 2.74% - 2.83% Dividend yield — % —% Expected term (in years) 6.11 6.11 Share price $ 5.37 $ 25.50 - 28.75 |
Schedule of employee options activity | Number Average Average Aggregate Options outstanding at the beginning of the period 72,655 $ 47.70 6.37 $ 114 Granted 12,425 5.37 Exercised — — Forfeited (7,170 ) 41.80 Options outstanding at the end of the period 77,910 $ 41.46 6.38 $ 230 Options exercisable at the end of the period 45,530 $ 55.80 4.62 $ — |
Schedule of employee RSUs activity | Number of shares underlying outstanding RSUs Weighted Unvested RSUs at the beginning of the period 26,093 $ 48.78 Granted 87,436 4.69 Vested (27,618 ) 7.27 Forfeited (10,875 ) 18.42 Unvested RSUs at the end of the period 75,036 $ 42.60 |
Schedule of options and RSUs outstanding | Range of exercise price Options and RSUs outstanding as of Weighted average remaining contractual life (years) (1) Options Weighted average remaining contractual life (years) (1) RSUs only 75,036 — — — $5.37 12,425 9.50 — — $20.42 - $33.75 37,691 6.46 20,981 4.78 $37.14 - $38.75 12,476 3.50 12,476 3.50 $50 - $52.5 11,395 5.94 8,158 5.25 $182.5 - $524.25 3,923 6.04 3,915 6.03 152,946 6.80 45,530 4.62 (1) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
Schedule of warrants outstanding and exercisable | Issuance date Warrants Exercise price per warrant Warrants outstanding and exercisable Contractual (number) (number) December 31, 2015 (1) 4,771 $ 7.500 4,771 See footnote (1) November 1, 2016 (2) 97,496 $ 118.750 97,496 November 1, 2021 December 28, 2016 (3) 1,908 $ 7.500 1,908 See footnote (1) November 20, 2018 (4) 126,839 $ 7.500 126,839 November 20, 2023 November 20, 2018 (5) 106,680 $ 9.375 106,680 November 15, 2023 February 25, 2019 (6) 45,600 $ 7.187 45,600 February 21, 2024 April 5, 2019 (7) 408,457 $ 5.140 408,457 October 7, 2024 April 5, 2019 (8) 49,015 $ 6.503 49,015 April 3, 2024 June 5, 2019 and June 6, 2019 (9) 1,464,665 $ 7.500 1,464,665 June 5, 2024 June 5, 2019 (10) 87,880 $ 9.375 87,880 June 5, 2024 June 12, 2019 (11) 416,667 $ 6.000 416,667 December 12, 2024 June 10, 2019 (12) 50,000 $ 7.500 50,000 June 10, 2024 2,859,978 2,859,978 (1) Represents warrants for ordinary shares issuable upon an exercise price of $7.5 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited, or Kreos, in connection with a loan made by Kreos to us 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 us with or into, or the sale or license of all or substantially all the assets or shares of us 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. None of these warrants had been exercised as of September 30, 2019. (2) Represents warrants issued as part of our follow-on offering in November 2016. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. (3) 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. (4) Represents common warrants that were issued as part of our follow-on offering in November 2018. As of September 30, 2019, warrants to purchase an aggregate 1,651,537 ordinary shares had been exercised. (5) Represents common warrants that were issued to the underwriters as compensation for their role in our follow-on offering in November 2018. (6) Represents warrants that were issued to the exclusive placement agent as compensation for its role in our follow-on offering in February 2019. (7) Represents warrants that were issued to certain institutional purchasers in a private placement in our registered direct offering of ordinary shares in April 2019. (8) Represents warrants that were issued to the placement agent as compensation for its role in our April 2019 registered direct offering. (9) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019 and June 6, 2019, respectively. (10) Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 warrant exercise agreement and concurrent private placement of warrants. (11) Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. (12) Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 registered direct offering and concurrent private placement of warrants |
Schedule of non-cash share-based compensation expense | Nine Months Ended 2019 2018 Cost of revenues $ 9 $ 11 Research and development, net 161 330 Sales and marketing 140 352 General and administrative 559 1,649 Total $ 869 $ 2,342 |
Financial Expenses, Net (Tables
Financial Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of financial expenses, net | Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency transactions and other $ (10 ) $ (13 ) $ (50 ) $ 26 Financial expenses related to loan agreement with Kreos 365 414 1,155 1,364 Bank commissions 5 4 26 22 $ 360 $ 405 $ 1,131 $ 1,412 |
Geographic Information and Ma_2
Geographic Information and Major Customer and Product Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenues within geographic areas | Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues based on customer's location: Israel $ — $ — $ 2 $ — United States 569 962 1,492 3,231 Europe 665 553 2,162 1,567 Asia-Pacific — 2 36 10 Latin America — — — 58 Africa — 100 — 100 Total revenues $ 1,234 $ 1,617 $ 3,692 $ 4,966 |
Schedule of long-lived assets by geographic region | September 30, December 31, 2019 2018 Long-lived assets by geographic region (*): Israel $ 178 $ 206 United States 227 330 Germany 75 90 $ 480 $ 626 (*) Long-lived assets are comprised of property and equipment, net. |
Schedule of major customer data as a percentage of total revenues | Nine Months Ended 2019 2018 Major customer data as a percentage of total revenues: Customer A 13.13 % 47.7 % |
General (Details)
General (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 27, 2019₪ / shares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | |
General (Textual) | ||||
Reverse share split | ratio of 1-for-25 | |||
Ordinary shares, par value (in NIS per share) | $ / shares | $ 0.25 | $ 0.25 | ||
Accumulated deficit | $ (164,894) | $ (152,918) | ||
Negative cash flow from operations | $ (11,225) | $ (12,174) | ||
NIS [Member] | ||||
General (Textual) | ||||
Ordinary shares, par value (in NIS per share) | ₪ / shares | ₪ 0.25 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total Revenues | $ 1,234 | $ 1,617 | $ 3,692 | $ 4,966 |
Units Placed [Member] | ||||
Total Revenues | 1,104 | 1,544 | 3,350 | 4,744 |
Spare parts and warranties [Member] | ||||
Total Revenues | $ 130 | $ 73 | $ 342 | $ 222 |
Significant Accounting Polici_5
Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Trade receivable, net | [1] | $ 572 | $ 758 |
Deferred revenues | [2] | $ 848 | $ 668 |
[1] | Balance presented net of unrecognized revenues that were not yet collected. | ||
[2] | $223 thousand of December 31, 2018 deferred revenues balance were recognized as revenues during the nine months ended September 30, 2019. |
Significant Accounting Polici_6
Significant Accounting Policies (Details 2) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | ||||
Customer A [Member] | |||||
Concentration of credit risk | 19.00% | [1] | |||
Customer B [Member] | |||||
Concentration of credit risk | 18.00% | [1] | |||
Customer C [Member] | |||||
Concentration of credit risk | 18.00% | [1] | |||
Customer D [Member] | |||||
Concentration of credit risk | 16.00% | [1] | |||
Customer E [Member] | |||||
Concentration of credit risk | [1] | 14.00% | |||
Customer F [Member] | |||||
Concentration of credit risk | [1] | 28.00% | |||
Customer G [Member] | |||||
Concentration of credit risk | [1] | 15.00% | |||
Customer H [Member] | |||||
Concentration of credit risk | [1] | 14.00% | |||
Customer I [Member] | |||||
Concentration of credit risk | [1] | 13.00% | |||
Customer J [Member] | |||||
Concentration of credit risk | [1] | 12.00% | |||
[1] | Less than 10% |
Significant Accounting Polici_7
Significant Accounting Policies (Details 3) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Warranty provision: | |
Balance at December 31, 2018 | $ 304 |
Provision | 142 |
Usage | (201) |
Balance at September 30, 2019 | $ 245 |
Significant Accounting Polici_8
Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies (Textual) | ||
Allowance for doubtful accounts | $ 31 | $ 32 |
Net of sales return reserve | 86 | $ 105 |
Deferred revenues recognized | $ 184 | |
Lease, description | Upon adoption of this standard on January 1, 2019, the Company recorded right–of–use assets and corresponding lease liabilities of $2,099 and $2,249, respectively. As of June 30, 2019, the right–of–use assets and corresponding lease liabilities in the Company’s condensed consolidated balance sheets were $1,893 and $2,039, respectively | |
Performance obligation, description | The estimated revenue expected to be recognized in the future related to the service type warranty amounts to $874 thousand, which is fulfilled over one to five years. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 2,208 | $ 2,240 |
Raw materials | 772 | |
Inventories | $ 2,980 | $ 2,240 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
2019 | $ 164 | |
2020 | 627 | |
2021 | 619 | |
2022 | 568 | |
2023 | 439 | |
Total lease payments | 2,417 | |
Less: imputed interest | (512) | |
Present value of future lease payments | 1,905 | |
Less: current maturities of operating leases | 612 | |
Non-current operating leases | $ 1,293 | |
Weighted-average remaining lease term (in years) | 3 years 3 months 15 days | |
Weighted-average discount rate | 12.50% |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingent Liabilities (Textual) | ||||
Non-cancelable outstanding obligations | $ 1,350 | $ 1,350 | ||
Maximum penalties payable on early release of agreement | 44 | 44 | ||
Royalties expenses | 8 | $ 13 | ||
Lease expiration, term | These leases expire between 2019 and 2023. | |||
Other long-term assets | 737 | $ 737 | ||
Lease expense | 180 | $ 187 | $ 560 | $ 561 |
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 | 50 | |||
Contingent liability | $ 1,500 | $ 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 | 209 | ||
Israel Innovation Authority [Member] | Minimum [Member] | ||||
Commitments and Contingent Liabilities (Textual) | ||||
Percentage of obligation to pay royalties | 3.00% | |||
Israel Innovation Authority [Member] | Maximum [Member] | ||||
Commitments and Contingent Liabilities (Textual) | ||||
Percentage of obligation to pay royalties | 3.50% | |||
Israel US Binational Industrial Research And Development Foundation [Member] | ||||
Commitments and Contingent Liabilities (Textual) | ||||
Total fund received | $ 500 | |||
Percentage of obligation to pay royalties | 5.00% | |||
Israel US Binational Industrial Research And Development Foundation [Member] | Maximum [Member] | ||||
Commitments and Contingent Liabilities (Textual) | ||||
Percentage of obligation to pay royalties | 150.00% | |||
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 2019 and 2022. | |||
Kreos Capital V [Member] | ||||
Commitments and Contingent Liabilities (Textual) | ||||
Line of credit | $ 20,000 | $ 20,000 |
Research Collaboration Agreem_2
Research Collaboration Agreement and License Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Research Collaboration Agreement and License Agreement (Textual) | ||||
Research and development expenses | $ 1,018 | $ 1,597 | $ 4,292 | $ 5,645 |
License Agreement and Collaboration Agreement [Member] | ||||
Research Collaboration Agreement and License Agreement (Textual) | ||||
Total payment obligation | 7,200 | |||
Research and development expenses | $ 252 | $ 1,364 | ||
Research collaboration agreement expire date | May 16, 2022 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Expected volatility | 57.50% | |
Risk-free rate | 2.22% | |
Dividend yield | ||
Expected term (in years) | 6 years 1 month 9 days | 6 years 1 month 9 days |
Share price | $ 5.37 | |
Minimum [Member] | ||
Expected volatility | 57.19% | |
Risk-free rate | 2.74% | |
Share price | $ 25.50 | |
Maximum [Member] | ||
Expected volatility | 61.12% | |
Risk-free rate | 2.83% | |
Share price | $ 28.75 |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number, Options outstanding at the beginning of the period | shares | 72,655 |
Number, Granted | shares | 12,425 |
Number, Exercised | shares | |
Number, Forfeited | shares | (7,170) |
Number, Options outstanding at the end of the period | shares | 77,910 |
Number, Options exercisable at the end of the period | shares | 45,530 |
Average exercise price, Options outstanding at the beginning of the period | $ / shares | $ 47.7 |
Average exercise price, Granted | $ / shares | 5.37 |
Average exercise price, Exercised | $ / shares | |
Average exercise price, Forfeited | $ / shares | 41.80 |
Average exercise price, Options outstanding at the end of the period | $ / shares | 41.46 |
Average exercise price, Options exercisable at the end of the period | $ / shares | $ 55.80 |
Average remaining contractual life (in years), Options outstanding at the beginning of the period | 6 years 4 months 17 days |
Average remaining contractual life (in years), Options exercisable at the end of the period | 4 years 7 months 13 days |
Aggregate intrinsic value (in thousands), Options outstanding | $ | $ 393 |
Aggregate intrinsic value (in thousands), Options exercisable at the end of the period | $ |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - Employee RSUs [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of shares underlying outstanding RSUs | |
Unvested RSUs at the Beginning of the period | shares | 26,093 |
Granted | shares | 87,436 |
Vested | shares | (27,618) |
Forfeited | shares | (10,875) |
Unvested RSUs at the end of the period | shares | 75,036 |
Weighted average grant date fair value | |
Unvested RSUs at the Beginning of the period | $ / shares | $ 48.78 |
Granted | $ / shares | 4.69 |
Vested | $ / shares | 7.27 |
Forfeited | $ / shares | 18.42 |
Unvested RSUs at the end of the period | $ / shares | $ 42.60 |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) - Options and RSUs [Member] | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | 152,946 | |
Options outstanding weighted average remaining contractual life (years) | 6 years 9 months 18 days | [1] |
Options outstanding and exercisable | 45,530 | |
Options exercisable weighted average remaining contractual life (years) | 4 years 7 months 13 days | [1] |
$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) | 9 years 9 months | [1] |
Options outstanding and exercisable | ||
Options exercisable weighted average remaining contractual life (years) | 0 years | [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 | 37,691 | |
Options outstanding weighted average remaining contractual life (years) | 6 years 5 months 16 days | [1] |
Options outstanding and exercisable | 20,981 | |
Options exercisable weighted average remaining contractual life (years) | 4 years 9 months 11 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 | 12,476 | |
Options outstanding weighted average remaining contractual life (years) | 3 years 6 months | [1] |
Options outstanding and exercisable | 12,476 | |
Options exercisable weighted average remaining contractual life (years) | 3 years 6 months | [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 | 11,395 | |
Options outstanding weighted average remaining contractual life (years) | 5 years 11 months 8 days | [1] |
Options outstanding and exercisable | 8,158 | |
Options exercisable weighted average remaining contractual life (years) | 5 years 2 months 30 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 | 3,923 | |
Options outstanding weighted average remaining contractual life (years) | 6 years 15 days | [1] |
Options outstanding and exercisable | 3,915 | |
Options exercisable weighted average remaining contractual life (years) | 6 years 11 days | [1] |
RSUs only [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
RSUs outstanding | 90,274 | |
Options outstanding weighted average remaining contractual life (years) | 0 years | [1] |
Options outstanding and exercisable | ||
Options exercisable weighted average remaining contractual life (years) | 0 years | [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 4
Shareholders' Equity (Details 4) | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 2,859,978 | |
Warrants outstanding and exercisable | 2,859,978 | |
November 1, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 97,496 | [1] |
Exercise price per warrant | $ / shares | $ 118.75 | [1] |
Warrants outstanding and exercisable | 97,496 | [1] |
Contractual term | Nov. 1, 2021 | [1] |
November 20, 2018 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 126,839 | [2] |
Exercise price per warrant | $ / shares | $ 7.5 | [2] |
Warrants outstanding and exercisable | 126,839 | [2] |
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] |
December 31, 2015 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 4,771 | [6] |
Exercise price per warrant | $ / shares | $ 7.5 | [6] |
Warrants outstanding and exercisable | 4,771 | [6] |
December 28, 2016 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,908 | [7] |
Exercise price per warrant | $ / shares | $ 7.5 | [7] |
Warrants outstanding and exercisable | 1,908 | [7] |
April 5, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 408,457 | |
Exercise price per warrant | $ / shares | $ 5.14 | |
Warrants outstanding and exercisable | 408,457 | |
Contractual term | Oct. 7, 2024 | |
April 5, 2019 One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 49,015 | [8] |
Exercise price per warrant | $ / shares | $ 6.503 | [8] |
Warrants outstanding and exercisable | 49,015 | [8] |
Contractual term | Apr. 3, 2024 | [8] |
June 5, 2019 and June 6, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,464,665 | [9] |
Exercise price per warrant | $ / shares | $ 7.5 | [9] |
Warrants outstanding and exercisable | 1,464,665 | [9] |
Contractual term | Jun. 5, 2024 | [9] |
June 5, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 87,880 | [10] |
Exercise price per warrant | $ / shares | $ 9.375 | [10] |
Warrants outstanding and exercisable | 87,880 | [10] |
Contractual term | Jun. 5, 2024 | [10] |
June 12, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 416,667 | [11] |
Exercise price per warrant | $ / shares | $ 6 | [11] |
Warrants outstanding and exercisable | 416,667 | [11] |
Contractual term | Dec. 12, 2024 | [11] |
June 10, 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 50,000 | [12] |
Exercise price per warrant | $ / shares | $ 7.5 | [12] |
Warrants outstanding and exercisable | 50,000 | [12] |
Contractual term | Jun. 10, 2024 | [12] |
[1] | Represents warrants issued as part of our follow-on offering in November 2016. At any time, the board of directors may reduce the exercise price of the warrants to any amount and for any period of time it deems appropriate. | |
[2] | Represents common warrants that were issued as part of our follow-on offering in November 2018. As of September 30, 2019, warrants to purchase an aggregate 1,651,537 ordinary shares had been exercised. | |
[3] | Represents common warrants that were issued as part of our follow-on offering in November 2018. As of June 30, 2019, warrants to purchase an aggregate 1,651,537 ordinary shares had been exercised. | |
[4] | Represents common warrants that were issued to the underwriters as compensation for their role in our follow-on offering in November 2018. | |
[5] | Represents warrants that were issued to the exclusive placement agent as compensation for its role in our follow-on offering in February 2019. | |
[6] | Represents warrants for ordinary shares issuable upon an exercise price of $7.5 per share, which were granted on December 31, 2015 to Kreos Capital V (Expert) Fund Limited, or Kreos, in connection with a loan made by Kreos to us 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 us with or into, or the sale or license of all or substantially all the assets or shares of us 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. None of these warrants had been exercised as of September 30, 2019. | |
[7] | Represents common warrants that were issued as part of the $8.0 million drawdown under the Loan Agreement which occurred on December 28, 2016. See footnote 1 for exercisability terms. | |
[8] | Represents warrants that were issued to the placement agent as compensation for its role in our April 2019 registered direct offering. | |
[9] | Represents warrants that were issued to certain institutional investors in a warrant exercise agreement on June 5, 2019 and June 6, 2019, respectively. | |
[10] | Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 warrant exercise agreement and concurrent private placement of warrants. | |
[11] | Represents warrants that were issued to certain institutional investors in a warrant exercise agreement in June 2019. | |
[12] | Represents warrants that were issued to the placement agent as compensation for its role in our June 2019 registered direct offering and concurrent private placement of warrants. |
Shareholders' Equity (Details 5
Shareholders' Equity (Details 5) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Non-cash share-based compensation expense | $ 869 | $ 2,342 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Non-cash share-based compensation expense | 9 | 11 |
Research and development, net [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Non-cash share-based compensation expense | 161 | 330 |
Sales and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Non-cash share-based compensation expense | 140 | 352 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Non-cash share-based compensation expense | $ 559 | $ 1,649 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) $ / shares in Units, $ in Thousands | May 10, 2016USD ($) | Jun. 12, 2019$ / sharesshares | Jun. 06, 2019$ / sharesshares | Jun. 05, 2019$ / sharesshares | Apr. 30, 2019$ / sharesshares | Mar. 27, 2019 | Feb. 28, 2019USD ($)$ / sharesshares | Nov. 30, 2018 | May 31, 2018 | Mar. 06, 2018USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / shares | Dec. 31, 2015$ / shares | Jun. 12, 2019₪ / sharesshares | Dec. 31, 2018shares | 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 Registrar of Companies of the State of Israel to effect 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 condensed consolidated financial statements, for periods before the three months ended September 30, 2019, give retroactive effect to the reverse stock split. | 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 Registrar of Companies of the State of Israel to effect 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 condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. | |||||||||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 53 | $ 1,115 | |||||||||||||||
Options granted (in shares) | shares | 12,425 | ||||||||||||||||
Expected term of shares | 6 years 1 month 9 days | 6 years 1 month 9 days | |||||||||||||||
Warrant exercised | $ 1,651,537 | ||||||||||||||||
Description of underwriting agreement | The Company entered into an underwriting agreement with H.C. Wainwright & Co., LLC ("H.C. Wainwright"), in connection with the Company's follow-on public offering of 496,040 units, each consisting of one ordinary share and one common warrant to purchase one ordinary share with an exercise price of $7.5 per warrant. Each unit was sold to the public at a price of $7.50 per unit. On November 18, 2018, H.C. Wainwright exercised in full its option to purchase 231,964 ordinary shares for $7.25 per share and/or common warrants to purchase up to an additional 231,964 ordinary shares for $0.25 per warrant. | ||||||||||||||||
Description of underwriters warrants to purchase | The company issued and sold 1,050,372 pre-funded units at a price to the public of $7.25 per unit. Each unit containing one pre-funded warrant with an exercise price of $0.25 per share and one warrant to purchase one ordinary share with an exercise price of $7.50 per warrant. The total gross proceeds received from the November 2018 follow-on public offering, before deducting commissions, discounts and expenses, were $13.1 million (including proceeds from the exercise of 90,691 pre-funded warrants at the closing of the offering). As of December 31, 2018, additional pre-funded warrants to purchase an aggregate 562,466 ordinary shares had been exercised, for additional proceeds of $140,617. During the three months ended March 31, 2019 additional pre-funded warrants and warrants to purchase an aggregate 119,881 ordinary shares had been exercised, for additional proceeds of $107,303. As compensation for their role in the offering, the Company also issued to the Underwriters warrants to purchase up to 106,680 ordinary shares, which became immediately exercisable starting on November 20, 2018 until November 15, 2023 at $9.375 per share. | ||||||||||||||||
Securities Purchase Agreements [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Exercise price per share | $ / shares | $ 6 | $ 5.14 | |||||||||||||||
Number of warrants issued | shares | 416,667 | 408,457 | 416,667 | ||||||||||||||
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 | 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] | NIS [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Exercise price ordinary shares | ₪ / shares | ₪ 0.25 | ||||||||||||||||
Securities Purchase Agreements [Member] | Additional Warrant to Purchase [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 | shares | 50,000 | 87,880 | 87,880 | 49,015 | |||||||||||||
Exercise price ordinary shares | $ / shares | $ 7.50 | $ 9.375 | $ 9.375 | $ 6.503125 | |||||||||||||
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 us with or into, or the sale or license of all or substantially all the assets or shares of us 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. | ||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Weighted average grant date fair value, restricted stock units (in USD per share) | $ / shares | $ 4.69 | $ 27.25 | |||||||||||||||
Weighted average grant date fair value, options (in USD per share) | $ / shares | $ 2.98 | $ 15.25 | |||||||||||||||
Employee Stock Option And Restricted Stock Units Rsu [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
RSUs granted (in shares) | shares | 87,436 | ||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Award vesting period, description | Options to purchase ordinary shares generally vest over four years, with certain options to non-employee directors vesting quarterly over one year. | ||||||||||||||||
Shares reserved for future issuance (in shares) | shares | 9,362 | 52,298 | |||||||||||||||
Unrecognized cost of shares | $ 1,750 | ||||||||||||||||
Expected term of shares | 1 year 10 months 17 days | ||||||||||||||||
Timwell Corporation Limited [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Aggregate number of ordinary shares | shares | 640,000 | ||||||||||||||||
Gross proceeds | $ 20,000 | ||||||||||||||||
Fees and other related expenses | 705 | ||||||||||||||||
Net aggregate proceeds of after deducting fees and other related expenses | $ 4,300 | ||||||||||||||||
Description of tranche consisting | The Company entered into a fee and release agreement with Canaccord Genuity LLC ("Canaccord Genuity") requiring the Company to pay to Canaccord Genuity, in connection with a settlement, in addition to certain cash amounts, (i) $125 thousand in ordinary shares of the Company after the First Tranche Closing of the Timwell transaction and (ii) $225 thousand in ordinary shares of the Company after the closing of the Second Tranche of the Timwell transaction (or such lower amount if the Second Tranche Closing is less than $10.0 million). The price per share used for calculation of the number of ordinary shares issued by the Company to Canaccord Genuity is based on the volume weighted average price of the Company's ordinary shares as reported on the Nasdaq Capital Market for the five consecutive trading days prior to the date of issuance. The Company is also obligated to pay $100 thousand in cash following the closing of the Third Tranche of $5.0 million (or such lower amount if the Third Tranche Closing is less than $5.0 million). Following the First Tranche Closing in May 15, 2018, the Company issued 4,715 ordinary shares to Canaccord Genuity. | The Company entered into an investment agreement with Timwell Corporation Limited, a Hong Kong corporation ("Timwell"), as amended on May 15, 2018 (the "Investment Agreement"), pursuant to which the Company agreed to issue to Timwell, in three different tranches, an aggregate of 640,000 ordinary shares in return for aggregate gross proceeds of $20 million. The closing of each tranche is subject to certain closing conditions. The closing of the first tranche (the "First Tranche Closing") took place on May 15, 2018, upon which Timwell received 160,000 ordinary shares for an aggregate purchase price of $5,000,000, and Timwell and the Company signed a registration rights agreement in the form attached to the Investment Agreement. The net aggregate proceeds of the First Tranche Closing after deducting fees and other related expenses in the amount of approximately $705 thousands were approximately $4.3 million. The remaining investment is to occur in two tranches, including $10 million for the issuance to Timwell of 320,000 ordinary shares (the "Second Tranche") and $5 million for the issuance to Timwell of 160,000 ordinary shares (the "Third Tranch"). The closing of the second and third tranches is subject to specified closing conditions, including, with respect to the second tranche, the signing of a license agreement and a supply agreement and the formation of the China JV (the "China JV") based on the JV Framework Agreement, and, with respect to the third tranche, the successful production of certain ReWalk products by the China JV. The second tranche closing was initially expected to occur by July 1, 2018 and the third tranche closing was initially expected to occur by December 31, 2018 and no later than April 1, 2019. | |||||||||||||||
Kreos Capital [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Exercise price per share | $ / shares | $ 7.5 | ||||||||||||||||
Drawdown amount under loan agreement | $ 8,000 | ||||||||||||||||
ATM Offering Program [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Aggregate offering price | $ 25,000 | ||||||||||||||||
Stock issuance costs under equity distribution agreement as a percent of gross proceeds | 3.00% | ||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 302,092 | ||||||||||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, gross of issuance expenses | $ 15,700 | ||||||||||||||||
Issuance of ordinary shares in an ATM offering of ordinary shares, net of issuance expenses | $ 14,500 | ||||||||||||||||
Fixed commission rate | 3.00% | ||||||||||||||||
Fixed commission amount | $ 471 | ||||||||||||||||
Issuance expenses | $ 123 | ||||||||||||||||
Proceeds percentage of sale of the ordinary shares | 8.00% | ||||||||||||||||
Fees and other related expenses | 1,200 | ||||||||||||||||
Placement agent agreement [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 760,000 | ||||||||||||||||
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. | ||||||||||||||||
Best efforts [Member] | |||||||||||||||||
Shareholders' Equity (Textual) | |||||||||||||||||
Issuance expenses | $ 686 |
Financial Expenses, Net (Detail
Financial Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transactions and other | $ (10) | $ (13) | $ (50) | $ 26 |
Financial expenses related to loan agreement with Kreos | 365 | 414 | 1,155 | 1,364 |
Bank commissions | 5 | 4 | 26 | 22 |
Financial expenses, net | $ 360 | $ 405 | $ 1,131 | $ 1,412 |
Geographic Information and Ma_3
Geographic Information and Major Customer and Product Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 1,234 | $ 1,617 | $ 3,692 | $ 4,966 |
Israel [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 2 | |||
United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 569 | 962 | 1,492 | 3,231 |
Europe [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 665 | 553 | 2,162 | 1,567 |
Asia-Pacific [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 2 | 36 | 10 | |
Latin America [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 58 | |||
Africa [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 100 | $ 100 |
Geographic Information and Ma_4
Geographic Information and Major Customer and Product Data (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 480 | $ 626 | |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | 178 | 206 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | 227 | 330 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 75 | $ 90 |
[1] | Long-lived assets are comprised of property and equipment, net. |
Geographic Information and Ma_5
Geographic Information and Major Customer and Product Data (Details 2) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Customer A [Member] | Sales Revenue, Net [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 13.13% | 47.70% |
Geographic Information and Ma_6
Geographic Information and Major Customer and Product Data (Details Textual) | 9 Months Ended |
Sep. 30, 2019segment | |
Geographic Information and Major Customer and Product Data (Textual) | |
Number of reportable segments | 1 |