Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Entity Registrant Name | SENSTAR TECHNOLOGIES LTD. |
Trading Symbol | SNT |
Entity Central Index Key | 0000896494 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Common Stock, Shares Outstanding | 23,309,987 |
Entity Well-known Seasoned Issuer | No |
Entity File Number | 0-21388 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Address, Address Line One | 10th F. Gibor Sport Tower 7 Menachem Begin Road |
Entity Address, City or Town | Ramat Gan |
Entity Address, Postal Zip Code | 5268102 |
Entity Address, Country | IL |
Entity Incorporation State Country Code | L3 |
Title of 12(b) Security | Ordinary Shares |
Security Exchange Name | NASDAQ |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Kost Forer Gabbay & Kasierer |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm ID | 1281 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Tomer Hay |
Entity Address, Address Line One | 10th F. Gibor Sport Tower 7 Menachem Begin Road |
Entity Address, City or Town | Ramat Gan |
Entity Address, Postal Zip Code | 5268102 |
Entity Address, Country | IL |
City Area Code | 972 |
Local Phone Number | 74-794-5200 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,937 | $ 26,397 |
Short-term bank deposits | 110 | 0 |
Restricted cash and deposits | 5 | 6 |
Trade receivables, net | 9,973 | 7,723 |
Unbilled accounts receivable | 350 | 26 |
Other accounts receivable and prepaid expenses | 1,441 | 2,010 |
Inventories | 8,443 | 5,751 |
Total current assets | 35,259 | 41,913 |
LONG-TERM ASSETS: | ||
Deferred tax assets | 1,981 | 502 |
Operating lease right-of-use assets | 987 | 1,228 |
Total long-term assets | 2,968 | 1,730 |
PROPERTY AND EQUIPMENT, NET | 1,651 | 2,109 |
INTANGIBLE ASSETS, NET | 1,142 | 2,186 |
GOODWILL | 10,866 | 11,449 |
Total assets | 51,886 | 59,387 |
CURRENT LIABILITIES: | ||
Trade payables | 2,408 | 2,710 |
Customer advances | 239 | 390 |
Deferred revenues | 2,866 | 2,704 |
Other accounts payable and accrued expenses | 4,749 | 13,203 |
Short-term operating lease liabilities | 248 | 276 |
Total current liabilities | 10,510 | 19,283 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 1,463 | 1,690 |
Deferred tax liabilities | 865 | 899 |
Accrued severance pay | 330 | 523 |
Long-term operating lease liabilities | 757 | 969 |
Other long-term liabilities | 274 | 266 |
Total long-term liabilities | 3,689 | 4,347 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 1 par value - Authorized: 39,748,000 shares at December 31, 2022 and 2021; Issued and outstanding: 23,309,987 and 23,301,653 shares at December 31, 2022 and 2021, respectively | 6,799 | 6,796 |
Additional paid-in capital | 30,503 | 30,394 |
Accumulated other comprehensive income | (758) | 1,222 |
Foreign currency translation adjustments (Company's standalone financial statements) | 9,654 | 9,687 |
Accumulated deficit | (8,511) | (12,342) |
Total shareholders' equity | 37,687 | 35,757 |
Total liabilities and shareholders' equity | $ 51,886 | $ 59,387 |
CONSOLIDATED BALANCE SHEETS (pa
CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value per share | $ 1 | $ 1 |
Ordinary shares, shares authorized | 39,748,000 | 39,748,000 |
Ordinary shares, shares issued | 23,309,987 | 23,301,653 |
Ordinary shares, shares outstanding | 23,309,987 | 23,301,653 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 35,558 | $ 34,916 | $ 33,351 |
Cost of revenues | 14,056 | 12,935 | 11,244 |
Gross profit | 21,502 | 21,981 | 22,107 |
Operating expenses: | |||
Research and development, net | 4,032 | 3,933 | 3,970 |
Selling and marketing | 9,008 | 9,998 | 8,609 |
General and administrative | 6,978 | 6,969 | 6,475 |
Total operating expenses | 20,018 | 20,900 | 19,054 |
Operating income | 1,484 | 1,081 | 3,053 |
Financial income (expenses), net | 141 | (1,011) | (1,017) |
Income before income taxes | 1,625 | 70 | 2,036 |
Taxes on income (tax benefit) | (2,404) | 2,261 | 1,770 |
Net income (loss) from continuing operations | 4,029 | (2,191) | 266 |
Net income (loss) from discontinued operations | (198) | 8,607 | 436 |
Net income | 3,831 | 6,416 | 702 |
Net income (loss) attributable to: | |||
Non-controlling interests from continuing operations | 0 | (1) | (23) |
Redeemable non-controlling interests from continuing operations | 0 | 0 | 365 |
Senstar shareholders | 3,831 | 6,417 | 360 |
Net income | $ 3,831 | $ 6,416 | $ 702 |
Basic net income (loss) per share: | |||
Continuing operations | $ 0.17 | $ (0.09) | $ 0.01 |
Discontinued operations | (0.01) | 0.37 | 0 |
Basic net income per share | 0.16 | 0.28 | 0.01 |
Diluted net income (loss) per share: | |||
Continuing operations | 0.17 | (0.09) | 0.01 |
Discontinued operations | (0.01) | 0.37 | 0 |
Diluted net income per share | $ 0.16 | $ 0.28 | $ 0.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,831 | $ 6,416 | $ 702 |
Realized foreign currency translation adjustments from subsidiaries | 0 | 1,442 | 0 |
Foreign currency translation adjustments | (1,980) | (254) | 661 |
Total other comprehensive income | (1,980) | 1,188 | 661 |
Total comprehensive income | 1,851 | 7,604 | 1,363 |
Total comprehensive income (loss) attributable to: | |||
Non-controlling interests | 0 | 0 | (23) |
Redeemable non-controlling interests | 0 | 0 | 619 |
Senstar shareholders | 1,851 | 7,604 | 767 |
Total comprehensive income | $ 1,851 | $ 7,604 | $ 1,363 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Foreign currency translation adjustment - the Company [Member] | Retained earnings (accumulated deficit) [Member] | Non-controlling interests [Member] | Total |
Balance at Dec. 31, 2019 | $ 6,750 | $ 94,696 | $ (627) | $ 5,924 | $ (18,961) | $ 24 | $ 87,806 |
Balance, shares at Dec. 31, 2019 | 23,153,985 | ||||||
Issuance of shares upon exercise of employee stock options | $ 3 | 38 | 0 | 0 | 0 | 0 | 41 |
Issuance of shares upon exercise of employee stock options, shares | 10,000 | ||||||
Stock-based compensation | $ 0 | 231 | 0 | 0 | 0 | 0 | 231 |
Cash distribution paid to Company’s shareholders | 0 | (25,000) | 0 | 0 | 0 | 0 | (25,000) |
Foreign currency translation adjustments- the Company | 0 | 0 | 0 | 3,180 | 0 | 0 | 3,180 |
Comprehensive income (loss): | |||||||
Net income (loss) | 0 | 0 | 0 | 0 | 360 | (23) | 337 |
Foreign currency translation adjustments | 0 | 0 | 661 | 0 | 0 | 0 | 661 |
Adjustment to the redemption value of redeemable non-controlling interests | 0 | 0 | 0 | 0 | (158) | 0 | (158) |
Balance at Dec. 31, 2020 | $ 6,753 | 69,965 | 34 | 9,104 | (18,759) | 1 | 67,098 |
Balance, shares at Dec. 31, 2020 | 23,163,985 | ||||||
Issuance of shares upon exercise of employee stock options | $ 43 | 391 | 0 | 0 | 0 | 0 | 434 |
Issuance of shares upon exercise of employee stock options, shares | 137,668 | ||||||
Stock-based compensation | $ 0 | 155 | 0 | 0 | 0 | 0 | 155 |
Cash distribution paid to Company’s shareholders | 0 | (40,117) | 0 | 0 | 0 | 0 | (40,117) |
Foreign currency translation adjustments- the Company | 0 | 0 | 0 | 583 | 0 | 0 | 583 |
Comprehensive income (loss): | |||||||
Net income (loss) | 0 | 0 | 0 | 0 | 6,417 | (1) | 6,416 |
Realized foreign currency translation adjustments | 0 | 0 | 1,442 | 0 | 0 | 0 | 1,442 |
Foreign currency translation adjustments | 0 | 0 | (254) | 0 | 0 | 0 | (254) |
Balance at Dec. 31, 2021 | $ 6,796 | 30,394 | 1,222 | 9,687 | (12,342) | $ 0 | $ 35,757 |
Balance, shares at Dec. 31, 2021 | 23,301,653 | 23,301,653 | |||||
Issuance of shares upon exercise of employee stock options | $ 3 | 16 | 0 | 0 | 0 | $ 19 | |
Issuance of shares upon exercise of employee stock options, shares | 8,334 | ||||||
Stock-based compensation | $ 0 | 93 | 0 | 0 | 0 | 93 | |
Foreign currency translation adjustments- the Company | 0 | 0 | 0 | (33) | 0 | (33) | |
Comprehensive income (loss): | |||||||
Net income (loss) | 0 | 0 | 0 | 0 | 3,831 | 3,831 | |
Foreign currency translation adjustments | 0 | 0 | (1,980) | 0 | 0 | (1,980) | |
Balance at Dec. 31, 2022 | $ 6,799 | $ 30,503 | $ (758) | $ 9,654 | $ (8,511) | $ 37,687 | |
Balance, shares at Dec. 31, 2022 | 23,309,987 | 23,309,987 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 3,831 | $ 6,416 | $ 702 |
Adjustments required to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,430 | 1,869 | 1,956 |
Loss on sale of property and equipment | 0 | 0 | 17 |
Increase (decrease) in accrued interest and exchange differences on short-term and other long-term liabilities | 0 | 0 | (155) |
Stock based compensation | 93 | 155 | 231 |
Decrease (increase) in trade receivables, net | (2,539) | 11,097 | (1,626) |
Decrease (increase) in unbilled accounts receivable | (339) | 2,593 | (2,135) |
Decrease (increase) in other accounts receivable and prepaid expenses | 455 | (10) | (555) |
Decrease (increase) in inventories | (3,152) | (683) | 845 |
Increase in long-term trade receivables | 0 | 7 | 13 |
Decrease (increase) in deferred income taxes | (1,420) | 1,350 | 879 |
Decrease in operating lease right-of-use assets | 261 | 917 | 1,542 |
Increase in operating lease liabilities | (257) | (977) | (1,486) |
Increase (decrease) in trade payables | (161) | (771) | 1,855 |
Increase (decrease) in other accounts payable and accrued expenses and deferred revenues | (7,435) | (229) | 1,803 |
Decrease in customer advances | (143) | (540) | (1,462) |
Accrued severance pay, net | (139) | (277) | (107) |
Gain on divestiture of the Integrated Solutions Division | 0 | (14,888) | 0 |
Net cash provided by (used in) operating activities | (9,515) | 6,029 | 2,317 |
Cash flows from investing activities: | |||
Investment in restricted deposits | 0 | 0 | 77 |
Release (investment) of short-term and long-term bank deposits | (108) | 65 | 16,978 |
Proceeds from sale of property and equipment | 29 | 0 | 40 |
Purchase of property and equipment | (158) | (792) | (816) |
Asset acquisition of technology, know-how and patents | 0 | (169) | (59) |
Proceeds from divestiture of the Integrated Solutions Division | 0 | 32,621 | 0 |
Net cash provided by (used in) investing activities | (237) | 31,725 | 16,220 |
Cash flows from financing activities: | |||
Cash distribution to Company’s shareholders | 0 | (40,117) | (25,000) |
Dividend to redeemable non-controlling interests | 0 | 0 | (1,935) |
Purchase of redeemable non-controlling interest | 0 | 0 | (1,891) |
Proceeds from issuance of shares upon exercise of options to employees | 19 | 434 | 41 |
Net cash provided by (used in) financing activities | 19 | (39,683) | (28,785) |
Effect of exchange rate changes on cash and cash equivalents | (1,727) | 981 | 2,828 |
Decrease in cash, cash equivalents and restricted cash | (11,460) | (948) | (7,420) |
Cash, cash equivalents and restricted cash at the beginning of the year, including cash attributable to discontinued operations | 26,397 | 27,345 | 34,765 |
Cash, cash equivalents and restricted cash at the end of the year, including cash attributable to discontinued operations | 14,937 | 26,397 | 27,345 |
Less - cash, cash equivalents and restricted cash attributable to discontinued operations | 0 | 0 | 2,814 |
Cash, cash equivalents and restricted cash from continuing operations | 14,937 | 26,397 | 24,531 |
Supplemental disclosures of cash flows activities: | |||
Cash and cash equivalents | 14,937 | 26,397 | 27,093 |
Restricted cash | 0 | 0 | 252 |
Total Cash, cash equivalents and restricted cash | 14,937 | 26,397 | 27,345 |
Cash paid during the year for: | |||
Interest | 110 | 0 | 167 |
Income taxes | 1,412 | 1,971 | 2,454 |
Significant non-cash transactions: | |||
Right-of-use asset recognized with corresponding lease liability | $ 151 | $ 444 | $ 1,167 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. General: Senstar Technologies Ltd. (formerly: Magal Security Systems Ltd.) ("the Parent Company" or "Senstar") and its subsidiaries (together - "the Company") is a leading international provider of comprehensive physical, video, and access control security products and solutions. The Company offers comprehensive solutions for critical sites, which leverage its broad portfolio of homegrown PIDS (Perimeter Intrusion Detection Systems), advanced VMS (Video Management Software) with native IVA (Intelligent Video Analytics) security solutions, as well as access control products and technologies. b. On February 7, 2021, the Company entered into an agreement (the “Purchase Agreement”) with Aeronautics Ltd., a subsidiary of RAFAEL Advanced Defense Systems Ltd., to sell the Company’s Integrated Solutions Division (the “Projects Division”), representing substantially all of the Company’s Integrated Solutions segment for total consideration of $35 million in cash at closing. On June 30, 2021, the Company completed the sale. The divestiture of the Company’s Integrated Solutions Division represented a strategic shift in the Company's operations. Discontinued operation: Under ASC 205-20, "Discontinued Operation" when a component of an entity, as defined in ASC 205-20, has been disposed of or is classified as held for sale, the results of its operations, including the gain or loss on its component are classified as discontinued operations and the assets and liabilities of such component are classified as assets and liabilities attributed to discontinued operations; that is, provided that the operations, assets and liabilities and cash flows of the component have been eliminated from the Company’s consolidated operations and the Company will have no significant continuing involvement in the operations of the component. Following the sale of the Project Division, the Project Division's results of operations and statement of financial position balances are disclosed as a discontinued operation, including the resulting income from the sale. All prior periods comparable results of operation have been retroactively included in discontinued operations. Starting in the third quarter of fiscal year 2021, the Company began to operate in one reportable segment as the Integrated Solutions Division comprised substantially all of the Company’s Integrated Solutions segment. Results of discontinued operations includes all revenues and expenses directly derived from the Integrated Solutions Division, with the exception of general corporate overhead and other costs that were previously allocated to the Integrated Solutions segment but have not been allocated to discontinued operations. The following table presents the gain associated with the sale, presented in the results of our discontinued operations below, for the year ended December 31, 2021: Gross purchase price $ 35,000 Provision (1) (4,049 ) Net assets sold (14,621 ) Realized foreign currency translation adjustments (1,442 ) Total net gain on divestiture of the Integrated Solutions Division $ 14,888 The carrying value of the net assets sold as follows: Cash and cash equivalents $ 2,008 Restricted cash and deposits 371 Trade receivables and Unbilled accounts receivable 11,323 Other accounts receivable and prepaid expenses 3,140 Inventories 7,120 Deferred tax assets 2,083 Operating lease right-of-use assets, net of operating lease liabilities 46 Other long-term assets 42 Property and equipment, net 3,926 Goodwill and intangible assets, net 302 Trade payables (4,156 ) Customer advances (3,420 ) Other accounts payable and accrued expenses and deferred revenues (8,123 ) Severance pay, net (41 ) Total net assets sold $ 14,621 (1) According to the Purchase Agreement of the Integrated Solutions division dated February 7, 2021, the Company was financially liable for the outcome of Magal Mexico's dispute with the Mexican tax authorities and has to indemnify Aeronautics Ltd. For further information and final resolution of the dispute refer to Note 10b. The following table presents the results of the discontinued operations for the years ended December 31, 2022, 2021 and 2020, are presented below: Year ended December 31, 2022 2021 2020 Revenues $ - $ 17,177 $ 48,113 Cost of revenues - 14,906 35,783 Gross profit - 2,271 12,330 Operating expenses: Research and development, net - 828 1,688 Selling and marketing - 2,223 5,274 General and administrative - 3,814 3,238 Total - 6,865 10,200 Operating income (loss) - (4,594 ) 2,130 Financial expenses, net - (76 ) (463 ) Income (loss) before income taxes - (4,670 ) 1,667 Taxes on income - 1,611 1,231 Income (loss) after income taxes - (6,281 ) 436 Capital gain from discontinued operation (198 ) 14,888 - Net income (loss) from discontinued operation $ (198 ) $ 8,607 $ 436 The following table presents cash flows for discontinued operations: Year ended December 31, 2022 2021 2020 Net cash provided by (used in) discontinued operating activities $ (4,180 ) $ 1,392 $ 963 Net cash provided by (used in) discontinued investing activities $ - $ 32,447 $ (461 ) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), followed on a consistent basis. a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to estimates used in determining values of goodwill and identifiable intangible assets, revenue recognition, allowances for credit losses, inventory write-offs, warranty provision, tax assets and tax positions, legal contingencies, amounts classified as discontinued operations and stock-based compensation costs. Actual results could differ from those estimates. b. Financial statements in U.S. dollars: The Company's revenues are generated in U.S. dollars, EURO, Canadian dollars and NIS. In addition, most of the Parent Company's costs are incurred in NIS. The Company's management believes that the NIS is the primary currency of the economic environment in which the Parent Company operates. The Company's reporting currency is the U.S. dollar. The functional currency of the Parent Company is the NIS. The functional currency of the Parent Company's foreign subsidiaries is the local currency in which each subsidiary operates. ASC 830, "Foreign Currency Matters" sets the standards for translating foreign currency financial statements of consolidated subsidiaries. The first step in the translation process is to identify the functional currency for each entity included in the financial statements. The accounts of each entity are then measured in its functional currency. All transaction gains and losses from the measurement of monetary balance sheet items are reflected in the statement of operations as financial income or expenses, as appropriate. After the measurement process is complete the financial statements are translated into the reporting currency, which is the U.S. dollar, using the current rate method. Equity accounts are translated using historical exchange rates. All other balance sheet accounts are translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the year. The resulting translation adjustments are reported as a component of shareholders' equity in accumulated other comprehensive income (loss). c. Principles of consolidation: The consolidated financial statements include the accounts of the Parent Company and its subsidiaries. Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. Changes in the Parent Company's ownership interest with no change of control are treated as equity transactions. Non-controlling interests in subsidiaries represent the equity in subsidiaries not attributable, directly or indirectly, to a parent. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. When the purchase price of a non-controlling interest exceeds the book value at the time of purchase, any excess or shortfall is recognized as an adjustment to additional paid-in capital. Redeemable non-controlling interests are classified as temporary equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the non-controlling interest book value, in accordance with the requirements of ASC 810 “Consolidation” and ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity”. On December 31, 2020, the Company’s Israeli subsidiary paid a dividend of $1,935 to the redeemable non-controlling interest. On December 31, 2020, the Company acquired the remaining 45% redeemable non-controlling interest in ESC BAZ. Ltd ("ESC BAZ") for total consideration of $1,891. ESC BAZ was sold as part of the Integrated Solutions Division sale (see Note 1b). d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less at the date acquired. e. Short-term and long-term restricted cash and deposits: Short-term restricted cash and deposits are primarily invested in certificates of deposit that are restricted to withdrawals or use up to one year. Such certificates of deposit are used primarily as collateral for performance and advance payment guarantees to customers. Long-term restricted cash and deposits are primarily invested in certificates of deposit that are restricted to withdrawals or use for a period for more than one year. Such certificates of deposit are used primarily as collateral for performance guarantees to customers. f. Short-term and long-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and less than one year and are presented at their cost. A bank deposit with a maturity of more than one year is included in long-term bank deposits and presented at cost. g. Inventories: Inventories are stated at the lower of cost or net realizable value. The Company periodically evaluates the inventory quantities on hand relative to historical and projected sales volumes, current and historical selling prices and contractual obligations to maintain certain levels of parts. Based on these evaluations, inventory write-offs are provided to cover risks arising from slow-moving items, discontinued products, excess inventories, market prices lower than cost and adjusted revenue forecasts. Cost is determined as follows: Raw materials, parts and supplies: using the "first-in, first-out" method. Work in progress and finished products: on the basis of direct manufacturing costs with the addition of allocable indirect cost, representing allocable operating overhead expenses and manufacturing costs. During the years ended December 31, 2022, 2021 and 2020, the Company recorded inventory write-offs in the amounts of $21, $95 and $29, respectively. Such write-offs were included in cost of revenues. h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: % Buildings 3 - 4 Machinery and equipment 10 - 33 (mainly 10%) Motor vehicles 15 - 20 Promotional displays 10 - 25 Office furniture and equipment 20 - 33 Leasehold improvements By the shorter of the term of the lease or the useful life of the assets i. Intangible assets: Intangible assets are comprised of patents, capitalized and acquired technology and customer relations. Intangible assets are amortized over their useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up, in accordance with ASC 350, "Intangibles - Goodwill and Other." Intangible assets were amortized based on the straight-line method or acceleration method, at the following weighted average annual rates: % Patents 10 Technology 12.5 - 26.7 Customer relationships 10.3 - 36.4 j. Impairment of long-lived assets: The Company's long-lived assets (assets group) to be held or used, including right of use assets and intangible assets that are subject to amortization, are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment" whenever events or changes in circumstances indicate that the carrying amount of a group of assets may not be recoverable. Recoverability of a group of assets to be held and used is measured by a comparison of the carrying amount of the group to the future undiscounted cash flows expected to be generated by the group. If such group of assets is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. During the years ended December 2022, 2021 and 2020, the Company did not record any impairment charges attributable to long-lived assets. k. Goodwill: Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible-Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. Alternatively, ASC No. 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative goodwill impairment test. If the carrying value of a reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess. The Company performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. Starting June 30, 2021, as a result of the sale of the Integrated Solutions segment (see Note 1b), the Company began operating as one operating segment with a single reporting unit. In 2020 the Company operated as two operating segments. For the purposes of impairment testing of goodwill, the Company identified two reporting units to which goodwill relates: (1) Products reporting unit which comprises the Products segment and; (2) ESC BAZ reporting unit within the Integrated Solutions segment. For the years ended December 31, 2022, 2021 and 2020, no impairment losses were recorded. l. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805, "Business Combinations". ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in consolidated statements of operations. Acquisition related costs are expensed in the statement of operations in the period incurred. Acquisition of non-controlling interests in ESC BAZ: On December 31, 2020, the Company acquired the remaining 45% interest in ESC BAZ, increasing its ownership interest to 100% in consideration of $1,891 to the non-controlling interest shareholders. ESC BAZ was sold as part of the Integrated Solutions Division sale (see Note 1b). m. Revenue recognition: Continuing operations The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Following the sale of the Integrated Solution Division, the Company generates its revenues mainly from: (1) sales of security products; (2) services and maintenance, which are performed either on a fixed-price basis or as time-and-materials based contracts; and (3) software license fees and related services (4) force protection systems project for which revenues are generated from long-term fixed price contracts The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The perpetual license is distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company usually does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Maintenance and support agreements provide customers with rights to unspecified software product updates, if and when available. These services grant the customers online and telephone access to technical support personnel during the term of the service. The Company recognizes maintenance and support services revenues ratably over the term of the agreement, usually one year. The Company generates revenues from the sales of its software products user licenses as well as from maintenance, support, consulting and training services. As required by ASC 606, following the determination of the performance obligations in the contract, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised license fees or services underlying each performance obligation. Standalone selling price is the price at which the Company would sell a promised license or service separately to a customer. Revenues for performance obligations that are not recognized over time are recognized at the point in time when control is transferred to the customer (which is generally upon delivery) and included mainly revenues from the sales of security products without significant installation work. The Company generally does not provide a right of return to its customers. For performance obligations that are satisfied at a point in time, the Company evaluated the point in time when the customer can direct the use of, and obtain the benefits from, the products. Shipping and handling costs are not considered performance obligations and are included in cost of sales as incurred. Services and maintenance are performed under either fixed-price or time-and-materials based contracts. Under fixed-price contracts, the Company agreed to perform certain work for a fixed price. Under time-and-materials contracts, the Company is reimbursed for labor hours at negotiated hourly billing rates and for materials. The Company's service contracts included contracts in which the customer simultaneously receives and consumes the benefits provided as the performance obligations are satisfied, accordingly, related revenues are recognized, as those services are performed or over the term of the related agreements. For the Company's force protection systems contract, where the Company's performance does not create an asset with an alternative use, the Company recognized revenue over performance time because of continuous transfer of control to the customer. For these performance obligations that are satisfied over time, the Company recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. Remaining performance obligations: Remaining performance obligations represent the future revenues expected to be recognized on firm orders received by the Company and are equivalent to the Company’s remaining performance obligations at the end of each period for a remaining period of more than a year. The Company's remaining performance obligations as of December 31, 2022 was $9.5 million, out of which the Company expects to recognize approximately 25% as revenue in 2023, with the remainder to be recognized thereafter. Deferred revenues and customer advances: Deferred revenues and customer advances decreased by $0.2 million compared to the beginning balance of $4.8 million as of January 1, 2022. The decrease was primarily as a result of $4 million of recognized revenues from deferred revenues and customer advances as well as $0.2 million of exchange rate impact. This was offset by $4 million of new unearned amounts under contracts. The above resulted in an ending balance of $4.6 million as of December 31, 2022. Unbilled accounts receivable: Unbilled accounts receivable increased by $0.4 million compared to the beginning balance as of January 1, 2022. The increase was primarily due to $0.4 million of recognized revenues in advance of contractual billing during the year. The above resulted in an ending balance of $0.4 million as of December 31, 2022. Discontinued operations: The Company generated its revenues from the Integrated Solutions Division ( Discontinued Operation At the inception of a contract, the Company also evaluated and determined if a contract should be separated into more than one performance obligation. The Company's installation of comprehensive security systems contracts usually includes one-performance obligations due to a significant customization for each customer's specific needs and integrated system or solution. For most of the Company's comprehensive security systems installation contracts, where the Company's performance does not create an asset with an alternative use, the Company recognized revenue over performance time because of continuous transfer of control to the customer. For these performance obligations that are satisfied over time, the Company generally recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. The Company believed that costs incurred as a portion of total estimated costs is an appropriate measure of progress towards satisfaction of the performance obligation since this measure reasonably depicts the progress of the work effort and the Company has the ability to make reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs. To the extent, the transaction price includes variable consideration (e.g., contract penalties, unpriced change orders or like measures), the Company estimated the most likely amount that should be included in the transaction price subject to constraints based on the specific facts and circumstances. For contracts that are deemed to be loss contracts, the Company established forward loss reserves for total estimated costs that are in excess of total estimated consideration under a contract in the period in which they become probable. Fees are payable upon completion of agreed upon milestones and subject to customer acceptance. Amounts of revenues recognized in advance of contractual billing are recorded as unbilled accounts receivable. In most instances, the period between the advanced recognition of revenues and the customers' billing generally ranges between one to six months. n. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation". ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company's consolidated income statement. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the vesting period. The Company accounts for forfeitures as they occur. During the years ended December 31, 2022, 2021 and 2020, the Company recognized stock-based compensation expenses related to employee stock options in the amounts of $93, $155 and $231, respectively. The Company estimates the fair value of stock options granted under ASC 718 using the Binomial model. The Binomial model for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated using historical option exercise information. The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. Expected volatility is based upon actual historical stock price movements and was calculated as of the grant dates for different periods, since the Binomial model can be used for different expected volatilities for different periods. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. The expected term of options granted is derived from the output of the option valuation model and represents the period that options granted are expected to be outstanding. During the year ended December 31, 2022 no options were granted. The following assumptions were used in the Binomial option pricing model for the years ended December 31, 2021 and 2020 (no options were granted in 2022): 2021 2020 Dividend yield 0% 0% Expected volatility 38.96%-42.17% 33.56%-36.45% Risk-free interest 0.67%-1.19% 0.32%-1.51% Contractual term 5-7 years 5-7 years Forfeiture rate 13% 10% Suboptimal exercise multiple 1.29 1.29 o. Research and development costs: Research and development costs incurred in the process of developing product improvements or new products, are charged to expenses as incurred. ASC 985, "Software", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release are capitalized. Capitalized technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally five years. Amortization expenses are recognized under cost of revenues. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the years ended December 31, 2021 and 2020, the Company capitalized amounts of $13 and $59, respectively. In 2022, the Company did not capitalize research and development costs. p. Warranty costs: The Company provides various warranty periods up to 24 months at no extra charge. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized in accordance with ASC 450, "Contingencies." Factors that affect the Company's warranty liability include the number of units, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table provides the detail of the change in the Company's warranty accrual, which is a component of other accrued liabilities in the consolidated balance sheets as of December 31, 2022 and 2021: December 31, 2022 2021 Warranty provision, beginning of year $ 157 $ 179 Charged to costs and expenses relating to new sales 235 112 Utilization or expiration of warranty (155 ) (135 ) Foreign currency translation adjustments (11 ) 1 Warranty provision, year end $ 226 $ 157 q. Net earnings per share: Basic net earnings per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share." Certain of the Company's outstanding stock options have been excluded from the calculation of the diluted earnings per share because such options are anti-dilutive. The total weighted average number of the Company's ordinary shares related to the outstanding options excluded from the calculations of diluted earnings per share was 554,916 shares, 610,083 shares and 789,440 shares for the years ended December 31, 2022, 2021 and 2020, respectively. r. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term bank deposits, trade receivables, unbilled accounts receivable and long-term trade receivables. As of December 31, 2022, $8,836 of the Company's cash and cash equivalents and restricted cash and short-term deposits were invested in major Israeli and U.S. banks, and approximately $6,216 were invested in other banks, mainly with the Royal Bank of Canada, Deutsche Bank and Natwest Bank. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. Generally, these deposits may be redeemed upon demand and therefore, bear low risk. Trade receivables of the Company, as well as the unbilled accounts receivable, are primarily derived from sales to large and solid organizations and governmental authorities located mainly in the U.S., Canada, Europe and APAC. The Company performs ongoing credit evaluations of its customers. An allowance for credit losses is recognized with respect to those amounts that the Company has determined to be doubtful of collection. In certain circumstances, the Company may require letters of credit, other collateral or additional guarantees. Changes in the Company's allowance for credit losses related to accounts receivables during the two years ended December 31, 2022 and 2021 are as follows: Year ended December 31, 2022 2021 Balance at the beginning of the year $ 125 $ 719 Credit losses expenses during the year 30 124 Customer write-offs or collections during the year (46 ) (716 ) Exchange rate (6 ) (2 ) $ 103 $ 125 As of December 31, 2022, the Company has no significant off-balance sheet concentrations of credit risk, such as foreign exchange contracts or foreign hedging arrangements. s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes." This ASC prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company establishes reserves for uncertain tax positions based on an evaluation of whether the tax position is “more likely than not” to be sustained upon examination. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense. In the year ended December 31, 2022, the Company recorded tax benefit in connection with uncertainties in income taxes of $993. In the years ended December 31, 2021 and 2020, the Company recorded tax expenses in connection with uncertainties in income taxes of $126 and $312, respectively. t. Severance pay: The Company has entered into an agreement with its employees implementing Section 14 of the Severance Pay Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance with the said Section 14, mandating that upon termination of such employees' employment, all the amounts accrued in their insurance policies will be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet as the severance pay risks have been irrevocably transferred to the severance funds. On December 31, 2007, the then Chairman of the Company's Board of Directors, retired from his position. His retirement agreement included certain perquisites from the Company for the rest of his life. As of December 31, 2022, the actuarial value of these perquisites is estimated at approximately $330. This provision was included as part of accrued severance pay. Discontinued operations The Company's liability in Discontinued Operations for its Israeli employees severance pay is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date (the "Shut Down Method"). Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for its employees in Israel is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits accumulated up to balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrender value of these policies and includes immaterial profits. u. Fair value measurements: ASC 820, "Fair Value Measurement and Disclosure" clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Significant other observable inputs based on market data obtained from sources independent of the reporting entity. Level 3 - Unobservable inputs which are supported by little or no market activity. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, trade receivables, unbilled accounts receivable and trade payables approximate their fair value due to the short-term maturity of such instruments. v. Advertising expenses: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2022, 2021 and 2020 were $152, $107 and $43, respectively. w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity (deficiency) during the period except those resulting from investments by, or distributions to, shareholders. The Company has determined that its items of comprehensive income (loss) relate to unrealized gain (loss) from foreign currency translation adjustments. Changes in the Company's accumulated other comprehensive income (loss |
OTHER ACCOUNTS RECEIVABLE AND P
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 3:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2022 2021 Prepaid expenses $ 696 $ 658 Government authorities 570 967 Others 175 385 $ 1,441 $ 2,010 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4:- INVENTORIES December 31, 2022 2021 Raw materials $ 2,105 $ 1,553 Work in progress 911 599 Finished products 5,427 3,599 $ 8,443 $ 5,751 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 5:- LEASES The Company entered into operating leases primarily for offices and cars. The leases have remaining lease terms of up to 5.1 years. The Company also elected the practical expedient (by class of underlying asset) to not separate lease and non-lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component for its leased cars. a. Supplemental balance sheet information related to operating leases is as follows: December 31, 2022 2021 Operating lease ROU assets $ 987 $ 1,228 Operating lease liabilities, current $ 248 $ 276 Operating lease liabilities, long-term $ 757 $ 969 Weighted average remaining lease term (in years) 3.32 2.71 Weighted average discount rate 3.46 % 3.25 % b. Future lease payments under operating leases as of December 31, 2022, are as follows: December 31, 2023 $ 316 2024 265 2025 233 2026 166 2027 and thereafter 144 Total future lease payments 1,124 Less - imputed interest (119 ) Total lease liability balance $ 1,005 c. Operating lease expenses amounted to $360, $421 and $438 for the years ended December 31, 2022, 2021 and 2020, respectively. Operating lease expenses with a term of twelve months or less were immaterial. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET a. Composition: December 31, 2022 2021 Cost: Land and buildings $ 2,767 $ 2,924 Machinery and equipment 2,636 2,861 Motor vehicles 289 580 Promotional displays 257 244 Office furniture and equipment 2,289 2,350 8,238 8,959 Accumulated depreciation: Buildings 1,846 1,841 Machinery and equipment 2,322 2,366 Motor vehicles 179 414 Promotional displays 219 192 Office furniture and equipment 2,021 2,037 6,587 6,850 Property and equipment, net $ 1,651 $ 2,109 b. Depreciation expenses amounted to $482, $519 and $434 for the years ended December 31, 2022, 2021 and 2020, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7:- INTANGIBLE ASSETS, NET a. Composition: December 31, 2022 2021 Cost: Know-how and patents $ 3,230 $ 3,397 Technology 6,337 6,487 Customer relationships 1,046 1,093 10,613 10,977 Accumulated amortization: Know-how and patents 3,211 3,372 Technology 5,307 4,490 Customer relationships 953 929 9,471 8,791 Intangible assets, net $ 1,142 $ 2,186 b. Amortization expenses related to intangible assets amounted to $948, $973 and $778 for the years ended December 31, 2022, 2021 and 2020, respectively. c. Estimated amortization of intangible assets for the years ended: December 31, 2023 $ 463 2024 326 2025 318 2026 32 2027 3 $ 1,142 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL [Abstract] | |
GOODWILL | NOTE 8:- GOODWILL With effect from June 30, 2021, as a result of the sale of the Integrated Solutions segment (see Note 1b), the Company operates in one operating segment, and this segment comprises from only one reporting unit. The goodwill balance associated with Integrated Solutions segment has been reclassified to Long-term assets of discontinued operations on the Consolidated Balance Sheet for the year ended December 31, 2020. During the fourth quarter of 2022, the Company performed the annual impairment test for goodwill for its reporting unit using a quantitative testing approach. The Company compared the carrying amount of the reporting unit to the estimated fair value using discounted cash flow calculations. Based on the evaluation performed, the Company determined that the fair value of the reporting unit exceeded its carrying amount, and therefore, the Company determined that goodwill was not impaired. The changes in the carrying amount of goodwill associated with continuing operations and appearing in the accompanying consolidated balance sheets as of December 31, 2021 and 2020 are as follows: Total As of January 1, 2021 $ 11,507 Foreign currency translation adjustments (58 ) As of December 31, 2021 11,449 Foreign currency translation adjustments (583 ) As of December 31, 2022 $ 10,866 |
OTHER ACCOUNTS PAYABLE AND ACCR
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 9:- OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2022 2021 Employees and payroll accruals $ 1,696 $ 2,807 Accrued expenses 1,365 6,173 Government authorities 529 2,090 Uncertain tax positions 1,053 2,003 Others 106 130 $ 4,749 $ 13,203 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 10:- COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of December 31, 2022 and 2021, the Company had credit lines of approximately $2,117 and $13,068, out of which $1,595 and $5,316 were utilized for bank performance guarantees, advance payment guarantees and bid bond guarantees from several banks, respectively, mainly in Israel and Canada. b. Legal proceedings: 1) The Company is subject to legal proceedings arising in the normal course of business. Based on the advice of legal counsel, management believes that these proceedings will not have a material adverse effect on the Company's financial position or results of operations. 2) In February 2019, Magal Mexico (the Company’s former subsidiary whose shares were sold as part of the Integrated Solutions Division sale (see Note 1b)) initiated a dispute procedure with the Mexican tax authorities requesting the recognition of deduction of certain expenses as claimed by the former Mexican subsidiary’s in its annual tax filings. In July 2019, the tax authorities denied the former Mexican subsidiary position. On September 11, 2019, Magal Mexico filed a nullity claim (administrative trial) against the resolution of the Mexican Internal Revenue Service (Servicio de Administración Tributaria) that had requested the former subsidiary to correct its tax situation by virtue that certain invoices did not produce any legal effect. The claim was admitted and resolved in favor of the former subsidiary on August 5, 2020. This resolution was then challenged by the tax authority, through a motion of review before the Collegiate Courts of Circuit; which resolved the appeal by the tax authority unfavorably to the former Mexican subsidiary, on June 4, 2021. The Collegiate Court had confirmed the legality of the tax resolution and had directed the lower court to issue a similar resolution which was issued on July 2, 2021, whereby the lower court had ruled in favor of the Tax Authority. On September 21, 2021, the former Mexican subsidiary appealed the resolution by the lower court before the Collegiate Courts of Circuit. In October 2021, the Collegiate Court admitted the appeal, however, on March 14, 2022, the Court notified the resolution whereby it ruled in favor of the Tax Authority, deciding to confirm the challenged resolution. On March 25, 2022, the former Mexican subsidiary appealed the Collegiate Court's decision before the Mexican Supreme Court of Justice. On May 17, 2022, the Mexican Court rejected the former Mexican subsidiary's annulment claim regarding the Mexican Tax authority’s decision not to allow the deduction of expenses and credit of VAT in respect of the engagement of Cuceju by the former Mexican subsidiary. According to the Purchase Agreement of the Integrated Solutions division dated February 7, 2021, the Company was financially liable for the outcome of this dispute and so has to indemnify Aeronautics Ltd. according to the final tax resolution in this matter. On July 19, 2022, Aeronautics Ltd. and Magal Security Systems Ltd. (formerly Onlishel Ltd.) (collectively for this section the "Buyer"), and the Company agreed that the Company will reimbursed the Buyer in the amount of $4,250 (approximately 86,855 thousands Mexican Peso, in accordance with the then USD-Mexican Peso exchange rate) (the "Tax Payment Amount"), as set forth in the closing protocol dated June 30, 2021 to the Purchase Agreement. The Buyer committed to pay the Tax Payment Amount to the relevant Mexican tax authorities. c. Royalty commitments to the Innovation Authority (formerly the Office of the Chief Scientist) of the Israeli Ministry of Economy, or Innovation Authority: Under the research and development agreements between the Company and the Innovation Authority, the Company is required to pay royalties at the rate of 3.5% of revenues derived from sales of products developed with funds provided by the Innovation Authority and ancillary services, up to an amount equal to 100% of the Innovation Authority research and development grants received, linked to the U.S. dollars plus interest on the unpaid amount received based on the 12-month LIBOR rate applicable to U.S. dollar deposits. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales no payment is required. On June 30, 2021, upon closing of the Company's Integrated Solutions Division sale to Aeronautics Ltd., the Company's rights and obligations concerning some of its Innovation Authority grants were assumed by Aeronautics Ltd. As of December 31, 2022, the Company had remaining contingent obligations to pay approximately $600 in royalties not assumed by Aeronautics Ltd. The Company's obligations are contingent upon the unlikely event of future revenues associated with the technologies developed under the said grants. As an alternative, the Company may be required to pay royalties over the portion of the consideration attributed to the operation derived from the funds provided by the Innovation Authority, up to the maximum amount of the related funds received. Company's management estimated it to be in an immaterial amount. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11:- SHAREHOLDERS' EQUITY a. Pertinent rights and privileges conferred by Ordinary shares: The Ordinary shares of the Company are listed on the NASDAQ Global Market. The Ordinary shares confer upon their holders the right to receive notice to participate and vote in the general meetings of the Company and the right to receive dividends, if declared. b. Issued and outstanding share capital: 23,309,987 Ordinary shares as of December 31, 2022 and 23, 301,653 Ordinary shares as of December 31, 2021. c. Stock Option Plan: On October 27, 2003, the Company's Board of Directors approved the Company's 2003 Israeli Share Option Plan ("the 2003 Plan"). Under the 2003 Plan, stock options may be periodically granted to employees, directors, officers and consultants of the Company or its subsidiaries in accordance with the decision of the Board of Directors of the Company (or a committee appointed by it). The Board of Directors also has the authority to determine the vesting schedule and exercise price of options granted under the 2003 Plan. In May 2008, the Board of Directors approved an amendment to the 2003 Plan, which was approved by the Company’s shareholders in August 2008, which increased the number of Ordinary shares available for issuance under the 2003 Plan by an additional 1,000,000 shares and the termination of the 2003 Plan was extended from October 2013 to October 2018. Any options that are cancelled or forfeited before expiration become available for future grant. On June 23, 2010, the Company's Annual General Meeting approved the Company's 2010 Israeli Share Option Plan, or the 2010 Plan, which authorizes the grant of options to employees, officers, directors and consultants of the Company and its subsidiaries. The Ordinary shares that remained available for future option grants under the 2003 Plan as of the date of the adoption of the 2010 Plan and any Ordinary shares that became available in the future under the 2003 Plan as a result of expiration, cancellation or relinquishment of any option outstanding under the 2003 Plan were rolled over to the 2010 Plan. No additional options will be granted under the 2003 Plan. In June 2013, the Company's shareholders approved an increase to the number of Ordinary shares available for issuance under the 2010 Plan by an additional 500,000 shares. The 2010 Plan has an original term of ten years, which was extended in August 2020 for an additional 5 years, on which date our Board of Directors had also increased and set the number of Ordinary shares available for issuance under the 2010 to 1,200,000. As of December 31, 2022, 491,666 Ordinary shares were available for future option grants. A summary of employee option activity under the Company's stock option plans as of December 31, 2022 and changes during the year ended December 31, 2022 are as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual life (in months) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2022 620,000 2.777 36.59 157.45 Granted - - Exercised (8,334 ) 2.273 Forfeited (59,334 ) 2.394 Outstanding as of December 31, 2022 552,332 2.826 26.38 116.81 Exercisable as of December 31, 2022 417,332 2.783 18.85 84.43 The weighted-average grant-date fair value of options granted during the years ended December 31, 2021 and 2020 were $1.56 and $1.09, respectively. No options were granted in 2022. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the fourth quarter of fiscal 2022 and the exercise price, multiplied by the number of in-the-money options). This amount changes, based on the fair market value of the Company's stock. As of December 31, 2022, there is no intrinsic value. The total intrinsic value of options exercised for the years ended December 31, 2021 and 2020 were approximately $232 and $8. As of December 31, 2022, there was approximately $75 of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's stock option plan. This cost is expected to be recognized over a period of up to 1.75 years. The options outstanding as of December 31, 2022 are follows: Number of options outstanding as of December 31, 2022 Exercise price Weighted average remaining contractual life Number of options exercisable as of December 31, 2022 (In months) 45,000 1.90 43.43 15,000 16,666 2.36 29.90 16,666 1,666 2.66 7.92 1,666 360,000 2.82 17.74 360,000 24,000 3.07 13.19 24,000 35,000 3.23 54.16 - 70,000 3.28 50.05 - 552,332 26.38 417,332 d. Dividends: Dividends, will be declared and paid in U.S. dollars. Dividends paid to shareholders in Israel will be converted into NIS on the basis of the exchange rate prevailing at the date of payment. On December 7, 2020, the Company announced a cash distribution of $1.079 per share. The cash distribution, in the aggregate amount of $25 million, was paid on December 28, 2020 on all of the Company's shares of record on December 17, 2020. On August 16, 2021, the Company announced a cash distribution of $1.725 per share. The cash distribution, in the aggregate amount of $40.1 million, was paid on September 22, 2021 on all of the Company's shares of record on August 31, 2021. |
BASIC AND DILUTED NET EARNINGS
BASIC AND DILUTED NET EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET EARNINGS PER SHARE | NOTE 12:- BASIC AND DILUTED NET EARNINGS PER SHARE Year ended December 31, 2022 2021 2020 Numerator - continuing operations: Income (loss) from continuing operations attributable to Senstar shareholders $ 4,029 $ (2,191 ) $ 266 Numerator - discontinued operations: Net income (loss) from discontinued operations, less income (loss) attributed to redeemable non-controlling interests and non-controlling interests, including accretion of redeemable non-controlling interests to redemption value $ (198 ) $ 8,607 $ (64 ) Denominator: Denominator for basic net earnings per share weighted-average number of shares outstanding 23,308,001 23,208,589 23,154,422 Effect of diluting securities: Employee stock options 1,975 - - Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises 23,309,976 23,208,589 23,154,422 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 13:- TAXES ON INCOME a. Tax laws and tax rates applicable to the Group companies: The Company and its Israeli subsidiary taxation: Until the sale of the Integrated Solution Division in June 30, 2021, the Company believed that it and its Israeli subsidiary qualified as a Preferred Enterprise, under Law for the Encouragement of Capital Investments, 1959 ("the Law") and accordingly were eligible for a reduced corporate tax rate of 16% on their preferred income, as defined in the Law. In addition, any dividends distributed to individuals or foreign residents from the preferred enterprise's earnings as above will be subject to tax at a rate of 20%. Following the sale of the Integrated Solution Division, the Company’s income is not eligible for Preferred Enterprise benefits and is taxed at the regular corporate tax rate for Israeli companies at 23%. Non-Israeli subsidiaries taxation: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of domicile. The tax rates of the Company's non-Israeli subsidiaries range between 19%-30%. Tax Reform in U.S.: On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Act"), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. b. Tax assessments: The Company received final tax assessments through the 2020 tax year. The remaining subsidiaries have not received final tax assessments since their incorporation however, the assessments of these subsidiaries are deemed final through the range between 2009-2013 tax years. c. Reconciliation between the theoretical tax expense, assuming all income is taxed at the Israeli statutory rate, and the actual tax expense, is as follows: Year ended December 31, 2022 2021 2020 Income (loss) before taxes as reported in the statements of operations $ 1,625 $ 70 $ 2,036 Tax rate 23 % 23 % 23 % Theoretical tax $ 374 $ 16 $ 468 Increase (decrease) in taxes: Non-deductible items 177 77 136 Losses and other items for which a valuation allowance was provided 230 599 714 Repatriation of undistributed earnings - 516 144 Realization of carryforward tax losses for which valuation allowance was provided (175 ) - - Changes in valuation allowance (1,362 ) (113 ) (42 ) Tax rate differences in subsidiaries and benefit from reduced tax rates 110 43 88 Provision for uncertain tax positions (993 ) 126 312 Taxes in respect of prior years (562 ) 1 18 Investment tax credit (204 ) (141 ) (132 ) Other 1 1,137 64 Taxes on income (tax benefit) in the statements of operations $ (2,404 ) $ 2,261 $ 1,770 d. Taxes on income (tax benefit) included in the statements of operations: Year ended December 31, 2022 2021 2020 Current $ (899 ) $ 1,846 $ 959 Deferred (1,505 ) 415 811 $ (2,404 ) $ 2,261 $ 1,770 Domestic $ (1,583 ) $ 1,707 $ 499 Foreign (821 ) 554 1,271 $ (2,404 ) $ 2,261 $ 1,770 e. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets are as follows: December 31, 2022 2021 Deferred tax assets: Operating losses carry forwards $ 3,548 $ 3,471 Reserves, tax allowances, capital losses carry forwards, operating lease and others 4,029 3,952 Total deferred taxes before valuation allowance 7,577 7,423 Valuation allowance (5,045 ) (5,478 ) Deferred tax assets, net: 2,532 1,945 Deferred tax liabilities: Property and equipment, intangible assets, operating lease and others (721 ) (1,647 ) Undistributed earnings of subsidiaries (695 ) (695 ) Deferred tax liabilities: (1,416 ) (2,342 ) Net deferred tax assets (liability) $ 1,116 $ (397 ) Domestic $ (695 ) $ (695 ) Foreign $ 1,811 $ 298 Prion to 2021, the Company previously considered the undistributed earnings of all its non-Israeli subsidiaries to be indefinitely reinvested since the Company's Board of Directors has determined that the Company will not distribute any amounts of its undistributed earnings as dividends. Accordingly, the Company recorded no deferred income taxes associated with such undistributed earnings. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Following the sale of the Integrated Solutions segment on June 30, 2021 (see Note 1b), the Company reevaluated its historic assertion and no longer consider the earnings of certain of its non-Israeli’s subsidiaries to be indefinitely reinvested since the cash generated from some of the foreign subsidiaries will be distributed. As a result of the change in assertion, the impact of a repatriation of the undistributed earnings resulted in recording a deferred tax liability consisting of potential withholding and distribution taxes of $0.7 million as of December 31, 2022. During the year ended December 31, 2022, the Company released valuation allowance against the deferred tax assets primarily related to carryforward tax losses and other temporary differences in USA. The Company provided valuation allowance for a portion of the deferred tax regarding the carryforwards losses and other temporary differences that management believes are not expected to be realized in the foreseeable future (see Note 13g). f. The domestic and foreign components of income (loss) before taxes are as follows: Year ended December 31, 2022 2021 2020 Domestic $ (2,182 ) $ (2,608 ) $ (3,799 ) Foreign 3,807 2,678 5,835 $ 1,625 $ 70 $ 2,036 g. Net operating carryforward tax losses: The Parent Company has estimated total available carryforward operating tax losses of $9,374 to offset against future taxable income. As of December 31, 2022, the Parent Company recorded a full valuation allowance on these carry forward tax losses due to the uncertainty of their future realization. There is no time limitation for the realization of such tax losses. The Company's subsidiaries have estimated total available carryforward operating tax losses of $5,638, which may be used to offset against future taxable income, for periods ranging between 1 to 20 years. As of December 31, 2022, the Company recorded a net deferred tax asset after valuation allowance in the amount of $1,693 for its subsidiaries' carryforward tax losses. Utilization of U.S. net operating losses (federal and state net operating losses) may be subject to a substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. h. Uncertain tax positions: As of December 31, 2022 and 2021, balances in respect to ASC 740, "Income Taxes" amounted to $1,053 and $2,003, respectively. A reconciliation of the beginning and ending amount of unrecognized tax positions is as follows: December 31, 2022 2021 Balance at the beginning of the year $ 2,003 $ 2,388 Additions based on tax positions taken related to the current year 94 225 Reduction related to expirations of statute of limitations or settlements of tax matters (1,087 ) (622 ) Foreign currency translation adjustments 43 12 Balance at the end of the year $ 1,053 $ 2,003 Substantially all the balance of unrecognized tax benefits, if recognized, would reduce the Company's annual effective tax rate. |
BALANCES AND TRANSACTIONS WITH
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | NOTE 14:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES The Company compensates its Executive Chairman of the Board for services provided to the Company commencing October 1, 2014. In addition to the directors' fees paid by the Company to all of its directors, the Company pays for his services: (i) a monthly payment of approximately $4 for time devoted to such position; and (ii) an annual cash bonus of $30 that is payable only if the Company's net profit pursuant to its annual audited and consolidated financial statement exceeds $5,000. The annual cash bonus is payable commencing as of the fiscal year 2015 and will be paid, if earned, as set forth in the Compensation Policy. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 15:- SEGMENT INFORMATION Historically, the Company had two operating segments, which also represented its reportable segments. The Integrated Solutions Division (“Projects” segment) and Senstar Product division (“Products” segment). On June 30, 2021, the Projects segment was sold (see note 1b). Therefore, the results of the Company’s Projects segment were classified as discontinued operations in the Company’s consolidated statements of operations and thus excluded from both continuing operations and segment results for all periods presented. Accordingly, the Company now have one reportable segment with the change reflected in all periods presented. Geographical information: The following is a summary of revenues within geographic areas based on end customers’ location and long-lived assets: 1. Revenues: Year ended December 31, 2022 2021 2020 North America $ 16,042 $ 15,902 $ 17,520 Europe 10,396 8,913 9,052 APAC 6,571 8,387 5,267 South and Latin America 1,334 1,296 1,322 Israel 1,195 317 - Others 20 101 190 $ 35,558 $ 34,916 $ 33,351 2. Long-lived assets: December 31, 2022 2021 Israel $ 170 $ 289 Europe 1,268 1,413 USA 1,764 1,816 Canada 11,375 13,374 Others 69 80 $ 14,646 $ 16,972 Long-lived assets include operating lease right-of-use assets, property and equipment, net, intangible assets, net and goodwill. |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | NOTE 16:- SELECTED STATEMENTS OF INCOME DATA Financial expenses: Year ended December 31, 2022 2021 2020 Financial expenses: Interest on short-term and long-term bank credit and bank charges and others $ (273 ) $ (52 ) $ (159 ) Foreign exchange loss, net - (985 ) (1,004 ) (273 ) (1,037 ) (1,163 ) Financial income: Interest on short-term and long-term bank deposits 48 26 146 Foreign exchange income, net 366 - - 414 26 146 Financial income (expenses), net $ 141 $ (1,011 ) $ (1,017 ) |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to estimates used in determining values of goodwill and identifiable intangible assets, revenue recognition, allowances for credit losses, inventory write-offs, warranty provision, tax assets and tax positions, legal contingencies, amounts classified as discontinued operations and stock-based compensation costs. Actual results could differ from those estimates. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: The Company's revenues are generated in U.S. dollars, EURO, Canadian dollars and NIS. In addition, most of the Parent Company's costs are incurred in NIS. The Company's management believes that the NIS is the primary currency of the economic environment in which the Parent Company operates. The Company's reporting currency is the U.S. dollar. The functional currency of the Parent Company is the NIS. The functional currency of the Parent Company's foreign subsidiaries is the local currency in which each subsidiary operates. ASC 830, "Foreign Currency Matters" sets the standards for translating foreign currency financial statements of consolidated subsidiaries. The first step in the translation process is to identify the functional currency for each entity included in the financial statements. The accounts of each entity are then measured in its functional currency. All transaction gains and losses from the measurement of monetary balance sheet items are reflected in the statement of operations as financial income or expenses, as appropriate. After the measurement process is complete the financial statements are translated into the reporting currency, which is the U.S. dollar, using the current rate method. Equity accounts are translated using historical exchange rates. All other balance sheet accounts are translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the year. The resulting translation adjustments are reported as a component of shareholders' equity in accumulated other comprehensive income (loss). |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Parent Company and its subsidiaries. Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation. Changes in the Parent Company's ownership interest with no change of control are treated as equity transactions. Non-controlling interests in subsidiaries represent the equity in subsidiaries not attributable, directly or indirectly, to a parent. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. When the purchase price of a non-controlling interest exceeds the book value at the time of purchase, any excess or shortfall is recognized as an adjustment to additional paid-in capital. Redeemable non-controlling interests are classified as temporary equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the non-controlling interest book value, in accordance with the requirements of ASC 810 “Consolidation” and ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity”. On December 31, 2020, the Company’s Israeli subsidiary paid a dividend of $1,935 to the redeemable non-controlling interest. On December 31, 2020, the Company acquired the remaining 45% redeemable non-controlling interest in ESC BAZ. Ltd ("ESC BAZ") for total consideration of $1,891. ESC BAZ was sold as part of the Integrated Solutions Division sale (see Note 1b). |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less at the date acquired. |
Short-term and long-term restricted cash and deposits | e. Short-term and long-term restricted cash and deposits: Short-term restricted cash and deposits are primarily invested in certificates of deposit that are restricted to withdrawals or use up to one year. Such certificates of deposit are used primarily as collateral for performance and advance payment guarantees to customers. Long-term restricted cash and deposits are primarily invested in certificates of deposit that are restricted to withdrawals or use for a period for more than one year. Such certificates of deposit are used primarily as collateral for performance guarantees to customers. |
Short-term and long-term bank deposits | f. Short-term and long-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and less than one year and are presented at their cost. A bank deposit with a maturity of more than one year is included in long-term bank deposits and presented at cost. |
Inventories | g. Inventories: Inventories are stated at the lower of cost or net realizable value. The Company periodically evaluates the inventory quantities on hand relative to historical and projected sales volumes, current and historical selling prices and contractual obligations to maintain certain levels of parts. Based on these evaluations, inventory write-offs are provided to cover risks arising from slow-moving items, discontinued products, excess inventories, market prices lower than cost and adjusted revenue forecasts. Cost is determined as follows: Raw materials, parts and supplies: using the "first-in, first-out" method. Work in progress and finished products: on the basis of direct manufacturing costs with the addition of allocable indirect cost, representing allocable operating overhead expenses and manufacturing costs. During the years ended December 31, 2022, 2021 and 2020, the Company recorded inventory write-offs in the amounts of $21, $95 and $29, respectively. Such write-offs were included in cost of revenues. |
Property and equipment | h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: % Buildings 3 - 4 Machinery and equipment 10 - 33 (mainly 10%) Motor vehicles 15 - 20 Promotional displays 10 - 25 Office furniture and equipment 20 - 33 Leasehold improvements By the shorter of the term of the lease or the useful life of the assets |
Intangible assets | i. Intangible assets: Intangible assets are comprised of patents, capitalized and acquired technology and customer relations. Intangible assets are amortized over their useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up, in accordance with ASC 350, "Intangibles - Goodwill and Other." Intangible assets were amortized based on the straight-line method or acceleration method, at the following weighted average annual rates: % Patents 10 Technology 12.5 - 26.7 Customer relationships 10.3 - 36.4 |
Impairment of long-lived assets | j. Impairment of long-lived assets: The Company's long-lived assets (assets group) to be held or used, including right of use assets and intangible assets that are subject to amortization, are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment" whenever events or changes in circumstances indicate that the carrying amount of a group of assets may not be recoverable. Recoverability of a group of assets to be held and used is measured by a comparison of the carrying amount of the group to the future undiscounted cash flows expected to be generated by the group. If such group of assets is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. During the years ended December 2022, 2021 and 2020, the Company did not record any impairment charges attributable to long-lived assets. |
Goodwill | k. Goodwill: Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible-Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. Alternatively, ASC No. 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative goodwill impairment test. If the carrying value of a reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess. The Company performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. Starting June 30, 2021, as a result of the sale of the Integrated Solutions segment (see Note 1b), the Company began operating as one operating segment with a single reporting unit. In 2020 the Company operated as two operating segments. For the purposes of impairment testing of goodwill, the Company identified two reporting units to which goodwill relates: (1) Products reporting unit which comprises the Products segment and; (2) ESC BAZ reporting unit within the Integrated Solutions segment. For the years ended December 31, 2022, 2021 and 2020, no impairment losses were recorded. |
Business combinations | l. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805, "Business Combinations". ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in consolidated statements of operations. Acquisition related costs are expensed in the statement of operations in the period incurred. Acquisition of non-controlling interests in ESC BAZ: On December 31, 2020, the Company acquired the remaining 45% interest in ESC BAZ, increasing its ownership interest to 100% in consideration of $1,891 to the non-controlling interest shareholders. ESC BAZ was sold as part of the Integrated Solutions Division sale (see Note 1b). |
Revenue recognition | m. Revenue recognition: Continuing operations The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Following the sale of the Integrated Solution Division, the Company generates its revenues mainly from: (1) sales of security products; (2) services and maintenance, which are performed either on a fixed-price basis or as time-and-materials based contracts; and (3) software license fees and related services (4) force protection systems project for which revenues are generated from long-term fixed price contracts The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The perpetual license is distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company usually does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Maintenance and support agreements provide customers with rights to unspecified software product updates, if and when available. These services grant the customers online and telephone access to technical support personnel during the term of the service. The Company recognizes maintenance and support services revenues ratably over the term of the agreement, usually one year. The Company generates revenues from the sales of its software products user licenses as well as from maintenance, support, consulting and training services. As required by ASC 606, following the determination of the performance obligations in the contract, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised license fees or services underlying each performance obligation. Standalone selling price is the price at which the Company would sell a promised license or service separately to a customer. Revenues for performance obligations that are not recognized over time are recognized at the point in time when control is transferred to the customer (which is generally upon delivery) and included mainly revenues from the sales of security products without significant installation work. The Company generally does not provide a right of return to its customers. For performance obligations that are satisfied at a point in time, the Company evaluated the point in time when the customer can direct the use of, and obtain the benefits from, the products. Shipping and handling costs are not considered performance obligations and are included in cost of sales as incurred. Services and maintenance are performed under either fixed-price or time-and-materials based contracts. Under fixed-price contracts, the Company agreed to perform certain work for a fixed price. Under time-and-materials contracts, the Company is reimbursed for labor hours at negotiated hourly billing rates and for materials. The Company's service contracts included contracts in which the customer simultaneously receives and consumes the benefits provided as the performance obligations are satisfied, accordingly, related revenues are recognized, as those services are performed or over the term of the related agreements. For the Company's force protection systems contract, where the Company's performance does not create an asset with an alternative use, the Company recognized revenue over performance time because of continuous transfer of control to the customer. For these performance obligations that are satisfied over time, the Company recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. Remaining performance obligations: Remaining performance obligations represent the future revenues expected to be recognized on firm orders received by the Company and are equivalent to the Company’s remaining performance obligations at the end of each period for a remaining period of more than a year. The Company's remaining performance obligations as of December 31, 2022 was $9.5 million, out of which the Company expects to recognize approximately 25% as revenue in 2023, with the remainder to be recognized thereafter. Deferred revenues and customer advances: Deferred revenues and customer advances decreased by $0.2 million compared to the beginning balance of $4.8 million as of January 1, 2022. The decrease was primarily as a result of $4 million of recognized revenues from deferred revenues and customer advances as well as $0.2 million of exchange rate impact. This was offset by $4 million of new unearned amounts under contracts. The above resulted in an ending balance of $4.6 million as of December 31, 2022. Unbilled accounts receivable: Unbilled accounts receivable increased by $0.4 million compared to the beginning balance as of January 1, 2022. The increase was primarily due to $0.4 million of recognized revenues in advance of contractual billing during the year. The above resulted in an ending balance of $0.4 million as of December 31, 2022. Discontinued operations: The Company generated its revenues from the Integrated Solutions Division ( Discontinued Operation At the inception of a contract, the Company also evaluated and determined if a contract should be separated into more than one performance obligation. The Company's installation of comprehensive security systems contracts usually includes one-performance obligations due to a significant customization for each customer's specific needs and integrated system or solution. For most of the Company's comprehensive security systems installation contracts, where the Company's performance does not create an asset with an alternative use, the Company recognized revenue over performance time because of continuous transfer of control to the customer. For these performance obligations that are satisfied over time, the Company generally recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. The Company believed that costs incurred as a portion of total estimated costs is an appropriate measure of progress towards satisfaction of the performance obligation since this measure reasonably depicts the progress of the work effort and the Company has the ability to make reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs. To the extent, the transaction price includes variable consideration (e.g., contract penalties, unpriced change orders or like measures), the Company estimated the most likely amount that should be included in the transaction price subject to constraints based on the specific facts and circumstances. For contracts that are deemed to be loss contracts, the Company established forward loss reserves for total estimated costs that are in excess of total estimated consideration under a contract in the period in which they become probable. Fees are payable upon completion of agreed upon milestones and subject to customer acceptance. Amounts of revenues recognized in advance of contractual billing are recorded as unbilled accounts receivable. In most instances, the period between the advanced recognition of revenues and the customers' billing generally ranges between one to six months. |
Accounting for stock-based compensation | n. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation". ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company's consolidated income statement. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the vesting period. The Company accounts for forfeitures as they occur. During the years ended December 31, 2022, 2021 and 2020, the Company recognized stock-based compensation expenses related to employee stock options in the amounts of $93, $155 and $231, respectively. The Company estimates the fair value of stock options granted under ASC 718 using the Binomial model. The Binomial model for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated using historical option exercise information. The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. Expected volatility is based upon actual historical stock price movements and was calculated as of the grant dates for different periods, since the Binomial model can be used for different expected volatilities for different periods. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. The expected term of options granted is derived from the output of the option valuation model and represents the period that options granted are expected to be outstanding. During the year ended December 31, 2022 no options were granted. The following assumptions were used in the Binomial option pricing model for the years ended December 31, 2021 and 2020 (no options were granted in 2022): 2021 2020 Dividend yield 0% 0% Expected volatility 38.96%-42.17% 33.56%-36.45% Risk-free interest 0.67%-1.19% 0.32%-1.51% Contractual term 5-7 years 5-7 years Forfeiture rate 13% 10% Suboptimal exercise multiple 1.29 1.29 |
Research and development costs | o. Research and development costs: Research and development costs incurred in the process of developing product improvements or new products, are charged to expenses as incurred. ASC 985, "Software", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release are capitalized. Capitalized technology is included in intangible assets on the balance sheet and is amortized on a straight-line basis over its estimated useful life, which is generally five years. Amortization expenses are recognized under cost of revenues. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the years ended December 31, 2021 and 2020, the Company capitalized amounts of $13 and $59, respectively. In 2022, the Company did not capitalize research and development costs. |
Warranty costs | p. Warranty costs: The Company provides various warranty periods up to 24 months at no extra charge. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized in accordance with ASC 450, "Contingencies." Factors that affect the Company's warranty liability include the number of units, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table provides the detail of the change in the Company's warranty accrual, which is a component of other accrued liabilities in the consolidated balance sheets as of December 31, 2022 and 2021: December 31, 2022 2021 Warranty provision, beginning of year $ 157 $ 179 Charged to costs and expenses relating to new sales 235 112 Utilization or expiration of warranty (155 ) (135 ) Foreign currency translation adjustments (11 ) 1 Warranty provision, year end $ 226 $ 157 |
Net earnings per share | q. Net earnings per share: Basic net earnings per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share." Certain of the Company's outstanding stock options have been excluded from the calculation of the diluted earnings per share because such options are anti-dilutive. The total weighted average number of the Company's ordinary shares related to the outstanding options excluded from the calculations of diluted earnings per share was 554,916 shares, 610,083 shares and 789,440 shares for the years ended December 31, 2022, 2021 and 2020, respectively. |
Concentrations of credit risk | r. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term bank deposits, trade receivables, unbilled accounts receivable and long-term trade receivables. As of December 31, 2022, $8,836 of the Company's cash and cash equivalents and restricted cash and short-term deposits were invested in major Israeli and U.S. banks, and approximately $6,216 were invested in other banks, mainly with the Royal Bank of Canada, Deutsche Bank and Natwest Bank. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. Generally, these deposits may be redeemed upon demand and therefore, bear low risk. Trade receivables of the Company, as well as the unbilled accounts receivable, are primarily derived from sales to large and solid organizations and governmental authorities located mainly in the U.S., Canada, Europe and APAC. The Company performs ongoing credit evaluations of its customers. An allowance for credit losses is recognized with respect to those amounts that the Company has determined to be doubtful of collection. In certain circumstances, the Company may require letters of credit, other collateral or additional guarantees. Changes in the Company's allowance for credit losses related to accounts receivables during the two years ended December 31, 2022 and 2021 are as follows: Year ended December 31, 2022 2021 Balance at the beginning of the year $ 125 $ 719 Credit losses expenses during the year 30 124 Customer write-offs or collections during the year (46 ) (716 ) Exchange rate (6 ) (2 ) $ 103 $ 125 As of December 31, 2022, the Company has no significant off-balance sheet concentrations of credit risk, such as foreign exchange contracts or foreign hedging arrangements. |
Income taxes | s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes." This ASC prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company establishes reserves for uncertain tax positions based on an evaluation of whether the tax position is “more likely than not” to be sustained upon examination. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense. In the year ended December 31, 2022, the Company recorded tax benefit in connection with uncertainties in income taxes of $993. In the years ended December 31, 2021 and 2020, the Company recorded tax expenses in connection with uncertainties in income taxes of $126 and $312, respectively. |
Severance pay | t. Severance pay: The Company has entered into an agreement with its employees implementing Section 14 of the Severance Pay Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance with the said Section 14, mandating that upon termination of such employees' employment, all the amounts accrued in their insurance policies will be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet as the severance pay risks have been irrevocably transferred to the severance funds. On December 31, 2007, the then Chairman of the Company's Board of Directors, retired from his position. His retirement agreement included certain perquisites from the Company for the rest of his life. As of December 31, 2022, the actuarial value of these perquisites is estimated at approximately $330. This provision was included as part of accrued severance pay. Discontinued operations The Company's liability in Discontinued Operations for its Israeli employees severance pay is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date (the "Shut Down Method"). Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for its employees in Israel is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits accumulated up to balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrender value of these policies and includes immaterial profits. |
Fair value measurements | u. Fair value measurements: ASC 820, "Fair Value Measurement and Disclosure" clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Significant other observable inputs based on market data obtained from sources independent of the reporting entity. Level 3 - Unobservable inputs which are supported by little or no market activity. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, trade receivables, unbilled accounts receivable and trade payables approximate their fair value due to the short-term maturity of such instruments. |
Advertising expenses | v. Advertising expenses: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2022, 2021 and 2020 were $152, $107 and $43, respectively. |
Comprehensive income (loss) | w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity (deficiency) during the period except those resulting from investments by, or distributions to, shareholders. The Company has determined that its items of comprehensive income (loss) relate to unrealized gain (loss) from foreign currency translation adjustments. Changes in the Company's accumulated other comprehensive income (loss), net for the years ended December 31, 2022, 2021 and 2020 are as follows: Year ended December 31, 2022 2021 2020 Balance at the beginning of the year $ 1,222 $ 34 $ (627 ) Foreign currency translation adjustments (1,980 ) (254 ) 661 Realized foreign currency translation adjustments - 1,442 - Total accumulated other comprehensive income (loss) $ (758 ) $ 1,222 $ 34 |
Non-controlling interest | x. Non-controlling interest: In 2018, the Company established a company in Kenya, which was 51% owned by the Company and 49% owned by a local partner. The non-controlling interest relating to the subsidiary was not material in 2021 and 2020. The subsidiary was sold as part of the Integrated Solutions Division sale (see Note 1b). |
Leases | y. Leases: In accordance with ASC 842, the Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use (“ROU”) asset for leases with a term of twelve months or less. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured based on the discounted present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. |
Impact of recently issued and adopted accounting standards | z. Impact of recently issued and adopted accounting standards: In November 2021, the FASB issued Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this ASU had an immaterial impact on the Company’s consolidated financial statements. |
New accounting pronouncements not yet effective | aa. New accounting pronouncements not yet effective: As of December 31, 2022, there are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the Company’s consolidated financial statements. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Gain Associated with Sale, Presented in Results of Discontinued Operations | Gross purchase price $ 35,000 Provision (1) (4,049 ) Net assets sold (14,621 ) Realized foreign currency translation adjustments (1,442 ) Total net gain on divestiture of the Integrated Solutions Division $ 14,888 |
Schedule of Carrying Value of Net Assets Sold | Cash and cash equivalents $ 2,008 Restricted cash and deposits 371 Trade receivables and Unbilled accounts receivable 11,323 Other accounts receivable and prepaid expenses 3,140 Inventories 7,120 Deferred tax assets 2,083 Operating lease right-of-use assets, net of operating lease liabilities 46 Other long-term assets 42 Property and equipment, net 3,926 Goodwill and intangible assets, net 302 Trade payables (4,156 ) Customer advances (3,420 ) Other accounts payable and accrued expenses and deferred revenues (8,123 ) Severance pay, net (41 ) Total net assets sold $ 14,621 |
Schedule of Results of Discontinued Operations | Year ended December 31, 2022 2021 2020 Revenues $ - $ 17,177 $ 48,113 Cost of revenues - 14,906 35,783 Gross profit - 2,271 12,330 Operating expenses: Research and development, net - 828 1,688 Selling and marketing - 2,223 5,274 General and administrative - 3,814 3,238 Total - 6,865 10,200 Operating income (loss) - (4,594 ) 2,130 Financial expenses, net - (76 ) (463 ) Income (loss) before income taxes - (4,670 ) 1,667 Taxes on income - 1,611 1,231 Income (loss) after income taxes - (6,281 ) 436 Capital gain from discontinued operation (198 ) 14,888 - Net income (loss) from discontinued operation $ (198 ) $ 8,607 $ 436 The following table presents cash flows for discontinued operations: Year ended December 31, 2022 2021 2020 Net cash provided by (used in) discontinued operating activities $ (4,180 ) $ 1,392 $ 963 Net cash provided by (used in) discontinued investing activities $ - $ 32,447 $ (461 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Annual Depreciation Rates | % Buildings 3 - 4 Machinery and equipment 10 - 33 (mainly 10%) Motor vehicles 15 - 20 Promotional displays 10 - 25 Office furniture and equipment 20 - 33 Leasehold improvements By the shorter of the term of the lease or the useful life of the assets |
Schedule of Intangible Assets Amortization Rates | % Patents 10 Technology 12.5 - 26.7 Customer relationships 10.3 - 36.4 |
Schedule of Fair Value Assumptions for Stock Options | 2021 2020 Dividend yield 0% 0% Expected volatility 38.96%-42.17% 33.56%-36.45% Risk-free interest 0.67%-1.19% 0.32%-1.51% Contractual term 5-7 years 5-7 years Forfeiture rate 13% 10% Suboptimal exercise multiple 1.29 1.29 |
Schedule of Product Warranty Accrual | December 31, 2022 2021 Warranty provision, beginning of year $ 157 $ 179 Charged to costs and expenses relating to new sales 235 112 Utilization or expiration of warranty (155 ) (135 ) Foreign currency translation adjustments (11 ) 1 Warranty provision, year end $ 226 $ 157 |
Schedule of Changes in Allowance for Credit Losses Related to Accounts | Year ended December 31, 2022 2021 Balance at the beginning of the year $ 125 $ 719 Credit losses expenses during the year 30 124 Customer write-offs or collections during the year (46 ) (716 ) Exchange rate (6 ) (2 ) $ 103 $ 125 |
Schedule of Accumulated Other Comprehensive Income | Year ended December 31, 2022 2021 2020 Balance at the beginning of the year $ 1,222 $ 34 $ (627 ) Foreign currency translation adjustments (1,980 ) (254 ) 661 Realized foreign currency translation adjustments - 1,442 - Total accumulated other comprehensive income (loss) $ (758 ) $ 1,222 $ 34 |
OTHER ACCOUNTS RECEIVABLE AND_2
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Accounts Receivable and Prepaid Expenses | December 31, 2022 2021 Prepaid expenses $ 696 $ 658 Government authorities 570 967 Others 175 385 $ 1,441 $ 2,010 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2022 2021 Raw materials $ 2,105 $ 1,553 Work in progress 911 599 Finished products 5,427 3,599 $ 8,443 $ 5,751 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related Operating Leases | December 31, 2022 2021 Operating lease ROU assets $ 987 $ 1,228 Operating lease liabilities, current $ 248 $ 276 Operating lease liabilities, long-term $ 757 $ 969 Weighted average remaining lease term (in years) 3.32 2.71 Weighted average discount rate 3.46 % 3.25 % |
Schedule of Maturities of Operating Lease Liabilities | December 31, 2023 $ 316 2024 265 2025 233 2026 166 2027 and thereafter 144 Total future lease payments 1,124 Less - imputed interest (119 ) Total lease liability balance $ 1,005 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2022 2021 Cost: Land and buildings $ 2,767 $ 2,924 Machinery and equipment 2,636 2,861 Motor vehicles 289 580 Promotional displays 257 244 Office furniture and equipment 2,289 2,350 8,238 8,959 Accumulated depreciation: Buildings 1,846 1,841 Machinery and equipment 2,322 2,366 Motor vehicles 179 414 Promotional displays 219 192 Office furniture and equipment 2,021 2,037 6,587 6,850 Property and equipment, net $ 1,651 $ 2,109 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | a. Composition: December 31, 2022 2021 Cost: Know-how and patents $ 3,230 $ 3,397 Technology 6,337 6,487 Customer relationships 1,046 1,093 10,613 10,977 Accumulated amortization: Know-how and patents 3,211 3,372 Technology 5,307 4,490 Customer relationships 953 929 9,471 8,791 Intangible assets, net $ 1,142 $ 2,186 |
Schedule of Amortization of Intangible Assets | c. Estimated amortization of intangible assets for the years ended: December 31, 2023 $ 463 2024 326 2025 318 2026 32 2027 3 $ 1,142 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL [Abstract] | |
Schedule of Goodwill | Total As of January 1, 2021 $ 11,507 Foreign currency translation adjustments (58 ) As of December 31, 2021 11,449 Foreign currency translation adjustments (583 ) As of December 31, 2022 $ 10,866 |
OTHER ACCOUNTS PAYABLE AND AC_2
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accounts Payable and Accrued Expenses | December 31, 2022 2021 Employees and payroll accruals $ 1,696 $ 2,807 Accrued expenses 1,365 6,173 Government authorities 529 2,090 Uncertain tax positions 1,053 2,003 Others 106 130 $ 4,749 $ 13,203 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Stock Option Activity | Number of options Weighted-average exercise price Weighted- average remaining contractual life (in months) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2022 620,000 2.777 36.59 157.45 Granted - - Exercised (8,334 ) 2.273 Forfeited (59,334 ) 2.394 Outstanding as of December 31, 2022 552,332 2.826 26.38 116.81 Exercisable as of December 31, 2022 417,332 2.783 18.85 84.43 |
Schedule of Stock Options Outstanding | Number of options outstanding as of December 31, 2022 Exercise price Weighted average remaining contractual life Number of options exercisable as of December 31, 2022 (In months) 45,000 1.90 43.43 15,000 16,666 2.36 29.90 16,666 1,666 2.66 7.92 1,666 360,000 2.82 17.74 360,000 24,000 3.07 13.19 24,000 35,000 3.23 54.16 - 70,000 3.28 50.05 - 552,332 26.38 417,332 |
BASIC AND DILUTED NET EARNING_2
BASIC AND DILUTED NET EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Earnings Per Share | Year ended December 31, 2022 2021 2020 Numerator - continuing operations: Income (loss) from continuing operations attributable to Senstar shareholders $ 4,029 $ (2,191 ) $ 266 Numerator - discontinued operations: Net income (loss) from discontinued operations, less income (loss) attributed to redeemable non-controlling interests and non-controlling interests, including accretion of redeemable non-controlling interests to redemption value $ (198 ) $ 8,607 $ (64 ) Denominator: Denominator for basic net earnings per share weighted-average number of shares outstanding 23,308,001 23,208,589 23,154,422 Effect of diluting securities: Employee stock options 1,975 - - Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises 23,309,976 23,208,589 23,154,422 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Tax Rate | Year ended December 31, 2022 2021 2020 Income (loss) before taxes as reported in the statements of operations $ 1,625 $ 70 $ 2,036 Tax rate 23 % 23 % 23 % Theoretical tax $ 374 $ 16 $ 468 Increase (decrease) in taxes: Non-deductible items 177 77 136 Losses and other items for which a valuation allowance was provided 230 599 714 Repatriation of undistributed earnings - 516 144 Realization of carryforward tax losses for which valuation allowance was provided (175 ) - - Changes in valuation allowance (1,362 ) (113 ) (42 ) Tax rate differences in subsidiaries and benefit from reduced tax rates 110 43 88 Provision for uncertain tax positions (993 ) 126 312 Taxes in respect of prior years (562 ) 1 18 Investment tax credit (204 ) (141 ) (132 ) Other 1 1,137 64 Taxes on income (tax benefit) in the statements of operations $ (2,404 ) $ 2,261 $ 1,770 |
Schedule of Income Taxes | Year ended December 31, 2022 2021 2020 Current $ (899 ) $ 1,846 $ 959 Deferred (1,505 ) 415 811 $ (2,404 ) $ 2,261 $ 1,770 Domestic $ (1,583 ) $ 1,707 $ 499 Foreign (821 ) 554 1,271 $ (2,404 ) $ 2,261 $ 1,770 |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2022 2021 Deferred tax assets: Operating losses carry forwards $ 3,548 $ 3,471 Reserves, tax allowances, capital losses carry forwards, operating lease and others 4,029 3,952 Total deferred taxes before valuation allowance 7,577 7,423 Valuation allowance (5,045 ) (5,478 ) Deferred tax assets, net: 2,532 1,945 Deferred tax liabilities: Property and equipment, intangible assets, operating lease and others (721 ) (1,647 ) Undistributed earnings of subsidiaries (695 ) (695 ) Deferred tax liabilities: (1,416 ) (2,342 ) Net deferred tax assets (liability) $ 1,116 $ (397 ) Domestic $ (695 ) $ (695 ) Foreign $ 1,811 $ 298 |
Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes | Year ended December 31, 2022 2021 2020 Domestic $ (2,182 ) $ (2,608 ) $ (3,799 ) Foreign 3,807 2,678 5,835 $ 1,625 $ 70 $ 2,036 |
Schedule of Reconciliation of Unrecognized Tax Benefits | December 31, 2022 2021 Balance at the beginning of the year $ 2,003 $ 2,388 Additions based on tax positions taken related to the current year 94 225 Reduction related to expirations of statute of limitations or settlements of tax matters (1,087 ) (622 ) Foreign currency translation adjustments 43 12 Balance at the end of the year $ 1,053 $ 2,003 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Long-Lived Assets With in Geographic Areas | The following is a summary of revenues within geographic areas based on end customers’ location and long-lived assets: 1. Revenues: Year ended December 31, 2022 2021 2020 North America $ 16,042 $ 15,902 $ 17,520 Europe 10,396 8,913 9,052 APAC 6,571 8,387 5,267 South and Latin America 1,334 1,296 1,322 Israel 1,195 317 - Others 20 101 190 $ 35,558 $ 34,916 $ 33,351 2. Long-lived assets: December 31, 2022 2021 Israel $ 170 $ 289 Europe 1,268 1,413 USA 1,764 1,816 Canada 11,375 13,374 Others 69 80 $ 14,646 $ 16,972 |
SELECTED STATEMENTS OF INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Selected Statements of Income Data | Year ended December 31, 2022 2021 2020 Financial expenses: Interest on short-term and long-term bank credit and bank charges and others $ (273 ) $ (52 ) $ (159 ) Foreign exchange loss, net - (985 ) (1,004 ) (273 ) (1,037 ) (1,163 ) Financial income: Interest on short-term and long-term bank deposits 48 26 146 Foreign exchange income, net 366 - - 414 26 146 Financial income (expenses), net $ 141 $ (1,011 ) $ (1,017 ) |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) $ in Millions | Feb. 07, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash consideration for division purchase | $ 35 |
GENERAL (Schedule of gain assoc
GENERAL (Schedule of gain associated with sale, presented in the results of discontinued operations) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Realized foreign currency translation adjustments | $ 14,888 |
Discontinued Operations [Member] | Integrated Solutions Division Member | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross purchase price | 35,000 |
Provision | (4,049) |
Net assets sold | (14,621) |
Realized foreign currency translation adjustments | $ (1,442) |
GENERAL (Schedule of carrying v
GENERAL (Schedule of carrying value of the net assets sold) (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total net assets sold | $ 14,621 | |
Discontinued Operations [Member] | Integrated Solutions Division Member | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 2,008 | |
Restricted cash and deposits | 371 | |
Trade receivables and Unbilled accounts receivable | 11,323 | |
Other accounts receivable and prepaid expenses | 3,140 | |
Inventories | 7,120 | |
Deferred tax assets | 2,083 | |
Operating lease right-of-use assets, net of operating lease liabilities | $ 46 | |
Other long-term assets | 42 | |
Property and equipment, net | 3,926 | |
Goodwill and intangible assets, net | 302 | |
Trade payables | (4,156) | |
Customer advances | (3,420) | |
Other accounts payable and accrued expenses and deferred revenues | (8,123) | |
Severance pay, net | $ (41) |
GENERAL (Schedule of results of
GENERAL (Schedule of results of the discontinued operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses: | |||
Net income (loss) from discontinued operations | $ (198) | $ 8,607 | $ (64) |
Net income from discontinued operation | (198) | 8,607 | 436 |
Discontinued Operations [Member] | Integrated Solutions Division Member | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 0 | 17,177 | 48,113 |
Cost of revenues | 0 | 14,906 | 35,783 |
Gross profit | 0 | 2,271 | 12,330 |
Operating expenses: | |||
Research and development, net | 0 | 828 | 1,688 |
Selling and marketing | 0 | 2,223 | 5,274 |
General and administrative | 0 | 3,814 | 3,238 |
Total operating expenses | 0 | 6,865 | 10,200 |
Operating income (loss) | 0 | (4,594) | 2,130 |
Financial expenses, net | 0 | (76) | (463) |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | 0 | (4,670) | 1,667 |
Taxes on income | 0 | 1,611 | 1,231 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | 0 | (6,281) | 436 |
Capital gain from discontinued operation | (198) | 14,888 | |
Net income from discontinued operation | $ (198) | $ 8,607 | $ 436 |
GENERAL (Schedule of cash flows
GENERAL (Schedule of cash flows for discontinued operations) (Details) - Discontinued Operations [Member] - Integrated Solutions Division Member - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided by (used in) discontinued operating activities | $ (4,180) | $ 1,392 | $ 963 |
Net cash provided by (used in) discontinued investing activities | $ 0 | $ 32,447 | $ (461) |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Dividend to redeemable non-controlling interests | $ 0 | $ 0 | $ 1,935 | |
Write-off of inventory | $ 21 | $ 95 | $ 29 | |
Number of shares excluded from calculation of diluted earnings (loss) per share | 554,916 | 610,083 | 789,440 | |
Stock-based compensation | $ 93 | $ 155 | $ 231 | |
Tax expenses related to uncertainties in income taxes | 993 | 126 | 312 | |
Accrued severance pay for former Chairman of Board | 330 | |||
Advertising expense | 152 | 107 | 43 | |
Purchase of redeemable non-controlling interest | 0 | 0 | 1,891 | |
Remaining performance obligations | $ 9,500 | |||
Recognizing Remaining performance obligations in 2022, percentage | 25% | |||
Increase decrease in unbilled accounts receivables | $ 400 | |||
Unbilled accounts receivable | 350 | 26 | ||
Increase decrease in unbilled accounts receivable billings | 400 | |||
Increase decrease in customer advances and deferred revenues | 200 | |||
Customer Advances And Deferred Revenues | 4,600 | 4,800 | ||
Increase decrease in unearned amounts | 4,000 | |||
Amount of recognized revenues from customer advances and deferred revenues | 4,000 | |||
Amount Of Exchange Rate In Customer Advances And Deferred Revenues | $ 200 | |||
Research and development costs capitalized | $ 13 | $ 59 | ||
Kenyan Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 51% | |||
ESC BAZ Ltd. [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 100% | |||
Acquired interest (as a percent) | 45% | 45% | ||
Purchase of redeemable non-controlling interest | $ 1,891 | $ 1,891 | ||
Major Israeli And U.S. Banks [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents, short-term and restricted deposits | 8,836 | |||
Other Banks [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents, short-term and restricted deposits | $ 6,216 | |||
Local partner [Member] | Kenyan Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 49% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Annual Depreciation Rates) (Details) | Dec. 31, 2022 |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate, minimum | 3% |
Annual depreciation rate, maximum | 4% |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate, minimum | 10% |
Annual depreciation rate, maximum | 33% |
Annual depreciation rate, mainly | 10% |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate, minimum | 15% |
Annual depreciation rate, maximum | 20% |
Promotional displays [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate, minimum | 10% |
Annual depreciation rate, maximum | 25% |
Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate, minimum | 20% |
Annual depreciation rate, maximum | 33% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets Amortization Rates) (Details) | Dec. 31, 2022 |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Annual amortization rate | 10% |
Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Annual amortization rate | 12.50% |
Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Annual amortization rate | 26.70% |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Annual amortization rate | 10.30% |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Annual amortization rate | 36.40% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value Assumptions for Stock Options) (Details) - Employee Stock Option [Member] - Multiple | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Forfeiture rate | 13% | 10% |
Suboptimal exercise multiple | 1.29 | 1.29 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 38.96% | 33.56% |
Risk-free interest | 0.67% | 0.32% |
Contractual term | 5 years | 5 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 42.17% | 36.45% |
Risk-free interest | 1.19% | 1.51% |
Contractual term | 7 years | 7 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Product Warranty Accrual) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Warranty provision, beginning of year | $ 157 | $ 179 |
Charged to costs and expenses relating to new sales | 235 | 112 |
Utilization or expiration of warranty | (155) | (135) |
Foreign currency translation adjustments | (11) | 1 |
Warranty provision, end of year | $ 226 | $ 157 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Allowance for Credit Losses Related to Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Balance at the beginning of the year | $ 125 | $ 719 |
Credit losses expenses during the year | 30 | 124 |
Customer write-offs/collections during the year, net | (46) | (716) |
Exchange rate | (6) | (2) |
Balance at the end of the year | $ 103 | $ 125 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Balance at the beginning of the year | $ 1,222 | $ 34 | $ (627) |
Foreign currency translation adjustments | (1,980) | (254) | 661 |
Realized foreign currency translation adjustments | 0 | 1,442 | 0 |
Total accumulated other comprehensive income (loss) | $ (758) | $ 1,222 | $ 34 |
OTHER ACCOUNTS RECEIVABLE AND_3
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 696 | $ 658 |
Government authorities | 570 | 967 |
Others | 175 | 385 |
Total other accounts receivable and prepaid expenses | $ 1,441 | $ 2,010 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,105 | $ 1,553 |
Work in progress | 911 | 599 |
Finished products | 5,427 | 3,599 |
Total inventory | $ 8,443 | $ 5,751 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expenses | $ 360 | $ 421 | $ 438 |
Offices and Cars [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 5 years 1 month 6 days |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Balance Sheet Information Related Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 987 | $ 1,228 |
Operating lease liabilities, current | 248 | 276 |
Operating lease liabilities, long-term | $ 757 | $ 969 |
Weighted average remaining lease term (in years) | 3 years 3 months 25 days | 2 years 8 months 15 days |
Weighted average discount rate | 3.46% | 3.25% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
2022 | $ 316 |
2023 | 265 |
2024 | 233 |
2025 | 166 |
2026 and thereafter | 144 |
Total future lease payments | 1,124 |
Less - imputed interest | (119) |
Total lease liability balance | $ 1,005 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 482 | $ 519 | $ 434 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,238 | $ 8,959 |
Property and equipment, accumulated depreciation | 6,587 | 6,850 |
Property and equipment, net | 1,651 | 2,109 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,767 | 2,924 |
Property and equipment, accumulated depreciation | 1,846 | 1,841 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,636 | 2,861 |
Property and equipment, accumulated depreciation | 2,322 | 2,366 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 289 | 580 |
Property and equipment, accumulated depreciation | 179 | 414 |
Promotional Displays [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 257 | 244 |
Property and equipment, accumulated depreciation | 219 | 192 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,289 | 2,350 |
Property and equipment, accumulated depreciation | $ 2,021 | $ 2,037 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization of Intangible Assets | $ 948 | $ 973 | $ 778 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 10,613 | $ 10,977 |
Accumulated amortization | 9,471 | 8,791 |
Intangible assets, net | 1,142 | 2,186 |
Know-how and patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,230 | 3,397 |
Accumulated amortization | 3,211 | 3,372 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,337 | 6,487 |
Accumulated amortization | 5,307 | 4,490 |
Customer Relationships Member | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,046 | 1,093 |
Accumulated amortization | $ 953 | $ 929 |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2023 | $ 463 | |
2024 | 326 | |
2025 | 318 | |
2026 | 32 | |
2027 | 3 | |
Intangible assets, net | $ 1,142 | $ 2,186 |
GOODWILL (Schedule of Goodwill)
GOODWILL (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill, beginning balance | $ 11,449 | $ 11,507 |
Foreign currency translation adjustments | (583) | (58) |
Goodwill, ending balance | $ 10,866 | $ 11,449 |
OTHER ACCOUNTS PAYABLE AND AC_3
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 1,696 | $ 2,807 |
Accrued expenses | 1,365 | 6,173 |
Government authorities | 529 | 2,090 |
Uncertain tax positions | 1,053 | 2,003 |
Others | 106 | 130 |
Other accounts payable and accrued expenses | $ 4,749 | $ 13,203 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands, $ in Thousands | 1 Months Ended | |||
Jul. 19, 2022 MXN ($) | Jul. 19, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Royalty rate | 3.50% | |||
Royalties, maximum percentage of grants received | 100% | |||
Remaining contingent obligations | $ 600 | |||
Line of Credit | 2,117 | $ 13,068 | ||
Credit lines - Used | $ 1,595 | $ 5,316 | ||
Buyer [Member] | ||||
Repayment amount for adjustment to purchase price | $ 86,855 | $ 4,250 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 22, 2021 | Dec. 28, 2020 | Aug. 31, 2020 | Jun. 30, 2013 | May 31, 2008 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ordinary shares, shares issued | 23,309,987 | 23,301,653 | ||||||
Ordinary shares, shares outstanding | 23,309,987 | 23,301,653 | ||||||
Weighted-average grant date fair value | $ 1.56 | $ 1.09 | ||||||
Total intrinsic value of options exercised | $ 232 | $ 8 | ||||||
Non-vested share-based compensation arrangements, unrecognized compensation costs | $ 75 | |||||||
Unrecognized compensation cost, weighted-average recognition period | 1 year 9 months | |||||||
Cash distribtion per share | $ 1.725 | $ 1.079 | ||||||
Cash distribution aggregate amount | $ 40,100 | $ 25,000 | ||||||
2010 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total pool authorized | 500,000 | |||||||
Number of shares available for grant | 491,666 | |||||||
2010 Plan [Member] | Extended Term [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan term | 5 years | |||||||
Total pool authorized | 1,200,000 | |||||||
2003 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total pool authorized | 1,000,000 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Changes in Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of options | ||
Outstanding at January 1, 2021 | 620,000 | |
Granted | 0 | |
Exercised | (8,334) | |
Forfeited | (59,334) | |
Outstanding at December 31, 2021 | 552,332 | 620,000 |
Exercisable at December 31, 2021 | 417,332 | |
Weighted-average exercise price | ||
Outstanding at January 1, 2021 | $ 2.777 | |
Granted | 0 | |
Exercised | 2.273 | |
Forfeited | 2.394 | |
Outstanding at December 31, 2021 | 2.826 | $ 2.777 |
Exercisable at December 31, 2021 | $ 2.783 | |
Weighted-average remaining contractual life | ||
Outstanding | 26 months 11 days | 36 months 17 days |
Exercisable at December 31, 2021 | 18 months 25 days | |
Aggregate intrinsic value (in thousands) | ||
Outstanding at January 1, 2021 | $ 157,450 | |
Outstanding at December 31, 2021 | 116,810 | $ 157,450 |
Exercisable at December 31, 2021 | $ 84,430 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock Options Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 552,332 |
Weighted average remaining contractual life | 26 months 11 days |
Number of options exercisable as of December 31, 2021 | 417,332 |
$1.90 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 45,000 |
Exercise price | $ / shares | $ 1.9 |
Weighted average remaining contractual life | 43 months 13 days |
Number of options exercisable as of December 31, 2021 | 15,000 |
$2.36 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 16,666 |
Exercise price | $ / shares | $ 2.36 |
Weighted average remaining contractual life | 29 months 27 days |
Number of options exercisable as of December 31, 2021 | 16,666 |
$2.66 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 1,666 |
Exercise price | $ / shares | $ 2.66 |
Weighted average remaining contractual life | 7 months 28 days |
Number of options exercisable as of December 31, 2021 | 1,666 |
$2.828282 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 360,000 |
Exercise price | $ / shares | $ 2.82 |
Weighted average remaining contractual life | 17 months 22 days |
Number of options exercisable as of December 31, 2021 | 360,000 |
$3.070707 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 24,000 |
Exercise price | $ / shares | $ 3.07 |
Weighted average remaining contractual life | 13 months 5 days |
Number of options exercisable as of December 31, 2021 | 24,000 |
$3.232323 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 35,000 |
Exercise price | $ / shares | $ 3.23 |
Weighted average remaining contractual life | 54 months 4 days |
Number of options exercisable as of December 31, 2021 | 0 |
$3.282828 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding as of December 31, 2021 | 70,000 |
Exercise price | $ / shares | $ 3.28 |
Weighted average remaining contractual life | 50 months 1 day |
Number of options exercisable as of December 31, 2021 | 0 |
BASIC AND DILUTED NET EARNING_3
BASIC AND DILUTED NET EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Income (loss) from continuing operations attributable to Senstar shareholders | $ 4,029 | $ (2,191) | $ 266 |
Net income (loss) from discontinued operations, less income (loss) attributed to redeemable non-controlling interests and non-controlling interests, including accretion of redeemable non-controlling interests to redemption value | $ (198) | $ 8,607 | $ (64) |
Denominator: | |||
Denominator for basic net earnings per share weighted-average number of shares outstanding | 23,308,001 | 23,208,589 | 23,154,422 |
Effect of diluting securities - Employee stock options | 1,975 | 0 | 0 |
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises | 23,309,976 | 23,208,589 | 23,154,422 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 22, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Carry forward tax losses estimated by subsidiaries | $ 1,693 | ||||
Tax rate | 23% | 23% | 23% | ||
Unrecognized tax benefits | $ 1,053 | $ 2,003 | $ 2,388 | ||
Potential withholding and distribution taxes | $ 700 | ||||
Minimum [Member] | |||||
Carry forward tax losses for subsidiaries, term | 1 year | ||||
Tax rate | 21% | ||||
Maximum [Member] | |||||
Carry forward tax losses for subsidiaries, term | 20 years | ||||
Tax rate | 35% | ||||
Preferred enterprise in 2014 and thereafter [Member] | |||||
Tax rate | 16% | ||||
Preferred enterprise [Member] | |||||
Tax rate | 20% | ||||
Preferred Enterprise One [Member] | |||||
Tax rate | 23% | ||||
Non-Israeli subsidiaries [Member] | Minimum [Member] | |||||
Tax rate | 19% | ||||
Non-Israeli subsidiaries [Member] | Maximum [Member] | |||||
Tax rate | 30% | ||||
Subsidiary of Common Parent [Member] | |||||
Carry forward operating tax losses | $ 5,638 | ||||
Parent Company [Member] | |||||
Carry forward operating tax losses | $ 9,374 |
TAXES ON INCOME (Schedule of Re
TAXES ON INCOME (Schedule of Reconciliation of Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before taxes as reported in the statements of operations | $ 1,625 | $ 70 | $ 2,036 |
Tax rate | 23% | 23% | 23% |
Theoretical tax | $ 374 | $ 16 | $ 468 |
Increase (decrease) in taxes: | |||
Non-deductible items | 177 | 77 | 136 |
Losses and other items for which a valuation allowance was provided | 230 | 599 | 714 |
Repatriation of undistributed earnings | 0 | 516 | 144 |
Realization of carryforward tax losses for which valuation allowance was provided | (175) | 0 | 0 |
Changes in valuation allowance | (1,362) | (113) | (42) |
Tax rate differences in subsidiaries and benefit from reduced tax rates | 110 | 43 | 88 |
Provision for uncertain tax positions | (993) | 126 | 312 |
Taxes in respect of prior years | (562) | 1 | 18 |
Investment tax credit | (204) | (141) | (132) |
Other | 1 | 1,137 | 64 |
Taxes on income (tax benefit) in the statements of operations | $ (2,404) | $ 2,261 | $ 1,770 |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes on income (tax benefit): | |||
Current | $ (899) | $ 1,846 | $ 959 |
Deferred | (1,505) | 415 | 811 |
Taxes on income (tax benefit) | (2,404) | 2,261 | 1,770 |
Taxes on income (tax benefit): | |||
Domestic | (1,583) | 1,707 | 499 |
Foreign | (821) | 554 | 1,271 |
Taxes on income (tax benefit) | $ (2,404) | $ 2,261 | $ 1,770 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Operating losses carry forwards | $ 3,548 | $ 3,471 |
Reserves, tax allowances, capital losses carry forwards, operating lease and others | 4,029 | 3,952 |
Total deferred taxes before valuation allowance | 7,577 | 7,423 |
Valuation allowance | (5,045) | (5,478) |
Deferred tax assets, net: | 2,532 | 1,945 |
Deferred tax liabilities: | ||
Property and equipment, intangible assets, operating lease and others | (721) | (1,647) |
Undistributed earnings of subsidiaries | (695) | (695) |
Deferred tax liabilities | (1,416) | (2,342) |
Net deferred tax assets (liability) | 1,116 | (397) |
Domestic [Member] | ||
Deferred tax liabilities: | ||
Deferred tax assets, Domestic | (695) | (695) |
Foreign Tax Authority [Member] | ||
Deferred tax liabilities: | ||
Deferred tax assets, Foreign | $ 1,811 | $ 298 |
TAXES ON INCOME (Schedule of Do
TAXES ON INCOME (Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (2,182) | $ (2,608) | $ (3,799) |
Foreign | 3,807 | 2,678 | 5,835 |
Income before income taxes | $ 1,625 | $ 70 | $ 2,036 |
TAXES ON INCOME (Schedule of _2
TAXES ON INCOME (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 2,003 | $ 2,388 |
Additions based on tax positions taken related to the current year | 94 | 225 |
Reduction related to expirations of statute of limitations or settlements of tax matters | (1,087) | (622) |
Foreign currency translation adjustments | 43 | 12 |
Balance at the end of the year | $ 1,053 | $ 2,003 |
BALANCES AND TRANSACTIONS WIT_2
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Narrative) (Details) - Board of Directors Chairman [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Minimum profit for bonus payment | $ 5,000 |
Cash Bonus [Member] | |
Related Party Transaction [Line Items] | |
Compensation | 30 |
Monthly Payment [Member] | |
Related Party Transaction [Line Items] | |
Compensation | $ 4 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Revenues and Long-Lived Assets Within Geographic Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 35,558 | $ 34,916 | $ 33,351 |
Long-lived assets | 14,646 | 16,972 | |
North America [Member] | |||
Revenues | 16,042 | 15,902 | 17,520 |
Europe [Member] | |||
Revenues | 10,396 | 8,913 | 9,052 |
Long-lived assets | 1,268 | 1,413 | |
APAC [Member] | |||
Revenues | 6,571 | 8,387 | 5,267 |
South And Latin America [Member] | |||
Revenues | 1,334 | 1,296 | 1,322 |
Israel [Member] | |||
Revenues | 1,195 | 317 | 0 |
Long-lived assets | 170 | 289 | |
Others [Member] | |||
Revenues | 20 | 101 | $ 190 |
Long-lived assets | 69 | 80 | |
USA [Member] | |||
Long-lived assets | 1,764 | 1,816 | |
Canada [Member] | |||
Long-lived assets | $ 11,375 | $ 13,374 |
SELECTED STATEMENTS OF INCOME_3
SELECTED STATEMENTS OF INCOME DATA (Schedule of Selected Statements of Income Data) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial expenses: | |||
Interest on short-term and long-term bank credit and bank charges and long-term debt | $ (273) | $ (52) | $ (159) |
Foreign exchange loss, net | 0 | (985) | (1,004) |
Total financial expenses | (273) | (1,037) | (1,163) |
Financial income: | |||
Interest on short-term and long-term bank deposits | 48 | 26 | 146 |
Foreign exchange income, net | 366 | 0 | 0 |
Total financial income | 414 | 26 | 146 |
Financial income (expenses), net | $ 141 | $ (1,011) | $ (1,017) |