LONG-TERM LOANS FROM STOCKHOLDERS

12 Months Ended

Dec. 31, 2014

LONG-TERM LOANS FROM STOCKHOLDERS [Abstract]

NOTE 9

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LONG-TERM LOANS FROM STOCKHOLDERS

During the years 2003-2004, Integrity Israel received loans from stockholders (three separate lenders). The loans are indexed to the Israeli Consumer Price Index from their origination date and bear no interest.

The Group will be required to pay the loans, in quarterly installments, commencing on the first quarter following the first fiscal year in which the Group reports net profit in its annual report. At such time, the Group will be required to make quarterly payments equal to 10% of its total sales for each quarter until the loans have been repaid in full. Notwithstanding the repayment mechanism, the Group will not be required to repay the loans during any period in which such payment would cause a deficit in the Group's working capital. As of December 31, 2014, no repayments of the stockholders loans have been made.

As of December 31, 2014 the Group presented the Dimri loan to be repaid during 2015 pursuant an arbitration decision issued on March 11, 2015 (See Note 10D and Note 19) as short-term liability. As of December 31, 2014, the Group does not expect to make any additional material repayments, if any, and as such all other loans from stockholders have been presented as long-term liabilities.