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Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

NOTE 2:-

SIGNIFICANT ACCOUNTING POLICIES

The Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

Use of estimates in preparation of the Financial Statements:

The preparation of the 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. The Company evaluates its assumptions on an ongoing basis. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made.

These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the Financial Statements, and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates.

As applicable to the consolidated financial statements, the most significant estimates and assumptions relate to the going concern assumptions, determining the fair value of embedded and freestanding financial instruments related to convertible loans, and to stock-based compensation.

The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2018 are applied consistently in these Financial Statements, except as described in b below.

Disclosure of new accounting standards

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize their leases contracts as assets and liabilities in the financial statements. Furthermore, with respect to operating lease transactions, ASU 2016-02 requires the Company to continue recognizing expenses but recognize expenses on their income statements in a manner similar to current lease accounting. The amendments in this ASU became effective on January 1, 2019. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, to allow a company to elect an optional modified retrospective transition method that applies the new lease requirements through a cumulative-effect adjustment in the period of adoption. Effective January 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. The Company elected to apply the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification.

The Company recognized $60 of operating lease right of use assets and operating lease liabilities at January 1, 2019. As of September 30, 2019, total of right-of-use assets related to the Company's operating leases was $27 and operating lease liabilities and operating lease liabilities non-current were $23 and $4, respectively.

Basic and diluted loss per share:

The loss and the weighted average number of shares used in computing basic and diluted net loss per share for the nine months ended September 30, 2019 and 2018, are as follows:

	Nine months ended September 30,
	2019			2018

Numerator:
Net loss	$	(2,577	)	$	(1,488	)
Less: Net loss attributed to preferred stock (*)		124			-
Add: Deemed dividends with respect to right for future investment	$	(185	)	$	-

Net loss applicable to shareholders of Common Stock	$	(2,638	)	$	(1,488	)

Denominator:
Shares of common stock used in computing basic and diluted loss per share		10,101,073			4,928,903
Net loss per share of Common stock, basic and diluted	$	(0.26	)	$	(0.30	)

(*) During the year ended December 31, 2018 the Company issued preferred stock as part of the October 2018 transaction. These preferred shares are participating securities.

	Nine months ended September 30,
	2019		2018

Number of shares:
Common shares used in computing basic loss per share		10,101,073		4,928,903
Common shares used in computing diluted loss per share		10,101,073		4,928,903

Preferred Stock, options and warrants excluded from the calculations of diluted loss per share		7,295,167		1,019,767

The loss and the weighted average number of shares used in computing basic and diluted net loss per share for the three months ended September 30, 2019 and 2018, are as follows:

	Three months ended September 30,
	2019			2018

Numerator:
Net loss	$	(872	)	$	(515	)
Less: Net loss attributed to preferred stock (*)		14			-


Net loss applicable to shareholders of Common Stock	$	(858	)	$	(515	)

Denominator:
Shares of common stock used in computing basic and diluted loss per share		10,806,155			5,327,743
Net loss per share of Common stock, basic and diluted	$	(0.08	)	$	(0.10	)

(*) During the year ended December 31, 2018 the Company issued preferred stock as part of the October 2018 transaction. These preferred shares are participating securities.

	Three months ended September 30,
	2019		2018

Number of shares:
Common shares used in computing basic loss per share		10,806,155		5,327,743
Common shares used in computing diluted loss per share		10,806,155		5,327,743

Preferred Stock, options and warrants excluded from the calculations of diluted loss per share		6,986,873		1,019,767