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INCOME TAXES | 12 Months Ended
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Dec. 31, 2012
INCOME TAXES [Abstract] |
INCOME TAXES |
NOTE 11:- | INCOME TAXES
| a. | Israel tax reform:
Taxable income of the Israeli parent is subject to the Israeli corporate tax at the rate as follows: 2010 - 25%, 2011 - 24%, 2012- 25%.
| b. | Israeli taxation:
The Company has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2007 tax year can be regarded as final. Tax loss carryforward: The Company's tax loss carryforward were $ 44,118 as of December 31, 2012. Such losses can be carried forward indefinitely to offset any future taxable income of the Company.
| c. | Foreign subsidiaries:
U.S subsidiary:
| 1. | The U.S subsidiary is taxed under United States federal and state tax rules.
| 2. | The U.S subsidiary's tax loss carryforward amounted to $ 10,115 as of December 31, 2012 for federal and state tax purposes. Such losses are available to offset any future U.S taxable income of the U.S subsidiary and will expire in the years 2013-2027 for federal tax purpose and in the years 2013-2017 for state tax purpose.
| 3. | The U.S subsidiary has not received final tax assessments since incorporation. In accordance with the tax laws, tax returns submitted up to and including the 2008 tax year can be regarded as final.
Brazilian subsidiary:
| 1. | The Brazilian subsidiary is taxed under Brazilian tax rules.
| 2. | The Brazilian subsidiary's tax loss carryforward amounted to $ 3,489 as of December 31, 2012 for tax purposes. Tax losses may be carried forward indefinitely, but can only offset up to 30% of the company taxable income for a tax period.
| d. | Deferred taxes:
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | December 31 |
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |
Carryforward tax losses |  | $ | 15,836 |  |  | $ | 14,635 |
Allowance for doubtful accounts |  |  | 104 |  |  |  | 99 |
Provisions for employees related obligations |  |  | 353 |  |  |  | 104 |
Research and development |  |  | 472 |  |  |  | 559 |
Other |  |  | 3 |  |  |  | 53 |
|  |  | 16,768 |  |  |  | 15,685 |
Less - valuation allowance |  |  | (16,768 | ) |  |  | (15,685 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
The net change in the total valuation allowance for the year ended December 31, 2012 was an increase of $ 1,083 and is mainly relates to increase in deferred taxes on NOL's for which a full valuation allowance was recorded. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences and tax loss carryforward are deductible. Management considers the projected taxable income and tax-planning strategies in making this assessment. In consideration of the Company's accumulated losses and the uncertainty of its ability to utilize its deferred tax assets in the future, management currently believes that it is more likely than not that the Company will not realize its deferred tax assets and accordingly recorded a valuation allowance to fully offset all the deferred tax assets.
| e. | The components of income (loss) before income taxes are as follows:
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Domestic |  | $ | (5,684 | ) |  | $ | (2,038 | ) |  | $ | 496 |
Foreign |  |  | (183 | ) |  |  | 134 |  |  |  | 74 |
Income (loss) before income taxes |  | $ | (5,867 | ) |  | $ | (1,904 | ) |  | $ | 570 |
| f. | Reconciliation of the theoretical tax benefit and the actual tax expense:
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Income (loss) before income taxes, as reported in the statements of operations |  | $ | (5,867 | ) |  | $ | (1,904 | ) |  | $ | 570 |
Statutory tax rate in Israel |  |  | 25 | % |  |  | 24 | % |  |  | 25 | %
Theoretical tax (benefit) expense |  | $ | (1,467 | ) |  | $ | (457 | ) |  | $ | 143 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax rate differential on foreign subsidiaries |  |  | (11 | ) |  |  | 18 |  |  |  | 5 |
Non-deductible expenses |  |  | 185 |  |  |  | 175 |  |  |  | 312 |
Losses and timing differences for which no deferred taxes were recorded |  |  | 1,083 |  |  |  | 234 |  |  |  | - |
Utilization of tax losses in respect of which deferred tax assets were not recorded in prior years |  |  | - |  |  |  | - |  |  |  | (622 | )
Other |  |  | 330 |  |  |  | 30 |  |  |  | 162 |
Income taxes |  | $ | 120 |  |  | $ | - |  |  | $ | - |
| g. | Accounting for uncertainty in income taxes:
For the years ended December 31, 2010, 2011 and 2012, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits had been accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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