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RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended
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Dec. 31, 2014
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 11:- RELATED PARTY BALANCES AND TRANSACTIONS a. The Company carries out transactions with related parties as detailed below. Certain principal shareholders of the Company which as of December 31, 2014 have joint ownership of approximately 38% in the Company's equity are also principal shareholders of affiliates known as the RAD-BYNET Group. The Company's transactions with related parties are carried out on an arm's-length basis. 1. Certain premises occupied by the Company and the US subsidiary are rented from related parties (see also Note 7b). The US subsidiary also sub-leases certain premises to a related party. The aggregate net amounts of lease payments were $ 417, $ 410 and $ 438 in 2014, 2013 and 2012, respectively. 2. Certain entities within the RAD-BYNET Group provide the Company with administrative services. Such amounts expensed by the Company are disclosed in "d" below as "Cost of sales, Sales and marketing, General and administrative expenses and research and development". 3. The Company purchases from certain entities within the RAD-BYNET Group software packages included in the Company's products and is thus incorporated into certain of its product lines. Such purchases by the Company are disclosed in "d" as "Cost of sales and Research and development". 4. The Company was a party to a distribution agreement with Bynet Electronics Ltd. ("BYNET"), a related party, giving BYNET the exclusive right to distribute the Company's products in Israel. The agreement was terminated during 2013. Revenues related to this distribution agreement are included in "d" below as "revenues". The remainder of the amount of "revenues" included in "d" below is comprised of sales of the Company's products to entities within RAD-BYNET Group. b. In December 2012, the Company entered into a consulting agreement ("Agreement") with a consultant which is also the domestic partner of one of its controlling shareholders and Chairman of the Company's Board of Directors. Based on the key terms of the Agreement, the consultant provided advisory services to the management with respect to business operations for a monthly amount which equaled the average monthly salary of employees in Israel, plus Israeli Value Added Tax. The Agreement was expired in January 2013 but was extended through to January 2015. Expenses incurred under this Agreement are immaterial. During the years ended December 31, 2014, 2013 and 2012 the Company recorded expenses incurred under this Agreement in amount of $ 39, $ 43 and $ 37, respectively. c. In November 2012, the Company secured a loan of $ 750 (equivalent to 2,900 NIS at that time) from one of its principal shareholder and Chairman of the Company's Board of Directors to finance its operations. The term of the loan was initially until March 31, 2013 which was extended until June 30, 2013. The loan was exposed to changes in the USD/NIS exchange rates. The loan was fully repaid by the Company during June 2013. The loan was interest-free, but the amount of principal required to be repaid was linked to the Israeli CPI. The average Israeli CPI increased during the years ended December 31, 2012 and 2013, by 1.6% and 1.8% respectively which caused finance expenses amounted to $ 23 and $ 27 for the aforementioned years, respectively. d. Following to Note 9a2, in April and June 2013, the Company completed 2013 PIPE in which $ 3,459 have been raised from certain existing and new investors, including $ 1,100 and $ 50 were invested by one of its principal shareholder and Chairman of the Company's Board of Directors and the Company's President and Chief Executive Officer, respectively. e. Balances with related parties:
|  |  | December 31, |
|  |  | 2014 |  |  |  | 2013 |
Assets: |  |  |  |  |  |  |  |  |  |
Trade receivables |  |  | $ | 2 |  |  |  | $ | 11 |
Other accounts receivable and prepaid expenses |  |  | $ | - |  |  |  | $ | - |
Liabilities: |  |  |  |  |  |  |  |  |  |
Trade Payables |  |  | $ | 155 |  |  |  | $ | 159 |
Other accounts payables and accrued expenses |  |  | $ | 11 |  |  |  | $ | 46 |
f. Transactions with related parties:
|  |  | Year ended December 31, |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2012 |
Revenues |  |  | $ | 19 |  |  |  | $ | 403 |  |  |  | $ | 451 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  | $ | 56 |  |  |  | $ | 54 |  |  |  | $ | 66 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  |  | $ | 249 |  |  |  | $ | 208 |  |  |  | $ | 198 |
Sales and marketing |  |  | $ | 125 |  |  |  | $ | 126 |  |  |  | $ | 181 |
General and administrative |  |  | $ | 60 |  |  |  | $ | 53 |  |  |  | $ | 57 |
Financial expenses (income) |  |  | $ | - |  |  |  | $ | 27 |  |  |  | $ | 23 |

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 5: 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.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 + Details
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