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Intangible Assets

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about intangible assets [abstract]

NOTE 6 - INTANGIBLE ASSETS:

Composition

	Cost								Accumulated amortization
	Balance at		Additions		Retirements		Balance		Balance at		Additions		Retirements		Balance		Amortized balance
	beginning		during		during the		at end		beginning		during		during the		at end		December 31,
2018:	of year		the year		year		of year		of year		the year		year		of year		2018
	U.S. dollar in thousands
Technology		1,955		308		-		2,263		1,199		270		-		1,469		794
Contractual customer relations		38		-		-		38		30		6		-		36		2
Goodwill		523		-		-		523		-		-		-		-		523
		2,516		308		-		2,824		1,229		276		-		1,505		1,319

	Cost								Accumulated amortization
	Balance at		Additions		Retirements		Balance		Balance at		Additions		Retirements		Balance		Amortized balance
	beginning		during		during the		at end		beginning		during		during the		at end		December 31,
2017:	of year		the year		year		of year		of year		the year		year		of year		2017
	U.S. dollar in thousands
Technology		1,955		-		-		1,955		954		245		-		1,199		756
Contractual customer relations		38		-		-		38		24		6		-		30		8
Goodwill		523		-		-		523		-		-		-		-		523
		2,516		-		-		2,516		978		251		-		1,229		1,287

	Cost								Accumulated amortization
	Balance at		Additions		Retirements		Balance		Balance at		Additions		Retirements		Balance		Amortized balance
	beginning		during		during the		at end		beginning		during		during the		at end		December 31,
2016:	of year		the year		year		of year		of year		the year		year		of year		2016
	U.S. dollar in thousands
Technology		1,955		-		-		1,955		709		245		-		954		1,001
Contractual customer relations		38		-		-		38		18		6		-		24		14
Goodwill		523		-		-		523		-		-		-		-		523
		2,516		-		-		2,516		727		251		-		978		1,538

Testing of goodwill impairment

As of December 31, 2018 and 2017, the recoverable amount of the Company, which constitutes a single CGU, is calculated on the basis of its fair value less cost to sell of Company's share. As of December 31, 2018 and 2017, the recoverable amount exceeded the Company's equity.

Intellectual property purchase

On July 2, 2018, Safe-T completed the purchase of the intellectual property of CyKick Labs Ltd. (hereinafter "CyKick") and the assumption of a royalty liability to the IIA, in consideration of $236 thousand, allocated on a relative basis to the purchased technology ($308 thousand) and IIA liability ($72 thousand). The purchased technology is aimed to recognize hostile attacks on online services through the identification of the users' anomalous behavior. The amortization is classified to cost of revenues and is calculated for 6 years using the straight-line method over the technology's useful life. For further details see Note 10(b).