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RELATED PARTY BALANCES AND TRANSACTIONS
 3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
RELATED PARTY BALANCES AND TRANSACTIONS
NOTE 8:- RELATED PARTY BALANCES AND TRANSACTIONS

 

a. The Company carries out transactions with related parties as detailed below. Certain principal shareholders of the Company 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.

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.

 

Revenues related to this distribution agreement are included in Note 8f below as "revenues". These revenues aggregated for a total amount of $0 and $62 for the three months ended March 31, 2016 and 2015, respectively.

 

     2. Certain premises occupied by the Company and its U.S. subsidiary are rented from related parties. The U.S. subsidiary also sub-leases certain premises to a related party. The aggregate net amounts for lease payments for the three months ended March 31, 2016 and 2015 were $6 and $6, respectively.

 

b. In January 2012, the Company entered into a consulting agreement ("Agreement") with a consultant who is also the life partner of one of the Company's controlling shareholders and the Company's former Chairman of the Board. Based on the key terms of the Agreement, the consultant provided advisory services to the Company’s 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 September 10, 2015 (see also Note 8c). During the three months ended March 31, 2015, the Company recorded expenses incurred under this Agreement in the amount of $11. No expenses have been recorded during the three months ended March 31, 2016 under this Agreement (see also Note 8c).

 

c. On December 30, 2015, the Company's shareholders approved the replacement of the Company's Chairman of the Board with one of the Company's Directors who is also the life partner of the former Chairman and controlling shareholders to assume the position of Active Chairwoman as of September 10, 2015 for a fixed monthly salary. During the three months ended March 31, 2016, the Company recorded salary expenses for acting as an Active Chairwoman in the amount of $ 25.

 

d. In 2015, the Company entered into a material contract for the sale of MaveriQ with subsidiaries of Amdocs Limited, a company with limited liability under the laws of the Island of Guernsey (“Amdocs”), pursuant to which the Company received an initial payment of $18,000 in March 2016. The Company’s controlling shareholder and director serves as a director of Amdocs. During the three months ended March 31, 2016, the Company recognized revenues in amount of $5,749 from such agreement. (see also Note 1a).

 

e. Balances with related parties:

 

    March 31,     December 31,  
    2016     2015  
    Unaudited        
Assets:            
             
Trade receivables   $ 95     $ 2  
                 
Liabilities:                
                 
Trade payables   $ 162     $ 184  
Other account payables and accrued expenses   $ 16     $ 16  
Advance from customer   $ 12,459     $ -  

 

f. Transactions with related parties:

 

   

Three months ended

March 31,

  
    2016   2015  
    Unaudited  
             
Revenues   $ 5,751     $ 62  
                 
Expenses:                
Cost of sales   $ 36     $ 10  
                 
Operating expenses:                
Research and development, net   $ 37     $ 64  
Sales and marketing, net   $ 30     $ 29  
General and administrative   $ 41     $ 16